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Accounting Policies of Palsoft Infosystems Ltd. Company

Mar 31, 2014

1.1 SYSTEM OF ACCOUNTING:

The financial statements are prepared under historical cost convention on the accrual basis of accounting and are in accordance with the generally accepted Accounting Principle (AS) as notified under Companies (Accounting Standards) rules, 2006.

1.2 REVENUE RECOGNITION & PROVISIONING :

(I) Lease rental are accounted for in the year they fall due. Lease management fee is accounted for on raising of first bill.

(II) Income from bill discounting is net of rediscounting charges paid.

(III) Dividend is accounted for on receipt basis.

(IV) Income in respect of over due lease rentals and bills is recognized on the basis of prudential norms prescribed by Reserve Bank of India.

(V) Software Income is recognized on satisfactory delivery of the software and acceptance by the customer.

1.3 FIXEDASSETS:

All fixed assets are stated at historical cost.

1.4 DEPRECIATION:

(I) Depreciation on fixed assets in own use has been charged using the written down value method of the rates specified in schedule XIV to the Companies Act,1956. Assets costing less than Rs. 5000/- are written off in the year of purchase.

(II) Lease assets are depreciated at rate specified in schedule XIV of the Companies Act 1956. The difference between the depreciation charges, as computed using IRR method to ensure capital recovery over the primary lease period and the charge as disclosed for the year is reflected in the lease equalization adjustment. The company has not entered into any lease agreement on or after 1.4.2001, hence Accounting Standard-19 ''Accounting for Lease'' is not applicable to the company.

1.5 INVESTMENTS:

(I) Stock on hand transferred to investments are valued at price of transfer.

(II) Investments purchased from markets are valued at cost.

(III) Provision is made against permanent fall in market value/book value.

1.6 Accounting For Taxes On Income : (AS-22)

Income Tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax law that have been

enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax are reviewed to reassure realization.

1.7 General:

Except wherever stated accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each Shareholder is entitled to one vote per share and dividend as and when declared by the company. In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

The Whole Time Director has forgone the salary. Payment is only of medical expenses reimbursement.


Mar 31, 2012

1.1 SYSTEM OF ACCOUNTING :

The company follows the accrual system of Accounting.

1.2 REVENUE RECOGNITION & PROVISIONING :

(I) Lease rental are accounted for in the year they fall due. Lease management fee is accounted for on raising of first bill.

(II) Income from bill discounting is net of rediscounting charges paid. (IU) Dividend is accounted for on receipt basis.

(IV) Income in respect of over due lease rentals and bills is recognized on the basis of prudential norms prescribed by Reserve Bank of India.

(V) Software Income is recognized on satisfactory delivery of the software and acceptance by the customer.

1.3 FIXED ASSETS:

All fixed assets are stated at historical cost.

1.4 DEPRECIATION:

(I) Depreciation on fixed assets in own use has been charged using the written down value method of the rates specified in schedule XIV to the Companies Act, 1956. Assets costing less than Rs. 5000/-are written off in the year of purchase.

(U) Lease assets are depreciated at rate specified in schedule XIV of the Companies Act 1956. The difference between the depreciation charges, as computed using IRR method to ensure capital recovery over the primary lease period and the charge as disclosed for the year is reflected in the lease equalization adjustment. The company has not entered into any lease agreement on or after 1.4.2001, hence Accounting Standard-19 'Accounting for Lease' is not applicable to the company.

1.5 INVESTMENTS:

(I) Stock on hand transferred to investments are valued at price of transfer.

(U) Investments purchased from markets are valued at cost.

(D3) Provision is made against permanent fall in market value/book value.

1.6 Accounting For Taxes On Income : (AS-22)

Income Tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax law that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax are reviewed to reassure realization.


Mar 31, 2011

1. SYSTEM OF ACCOUNTING

The Company follows the accrual system of Accounting

2. REVENUE RECOGNITION & PROVISIONING

(i) Lease rental are accounted for in the year they fall due. Lease Management fee is accounted for on raising of first bill.

(ii) Income from bill discounting is net of rediscounting charges paid.

(iii) Dividend is accounted for on receipt basis.

(iv) Income in respect of over due lease rentals and bills is recognised on the basis of prudential norms prescribed by Reserve Bank of India.

(v) Software Income is recognised on satisfactory delivery of the software and acceptance by the customer.

3. FIXED ASSETS

All fixed assets are stated at historical cost.

4. DEPRECIATION

(i) Depreciation on fixed assets in own use has been charged using the written down value method of the rates specified in schedule XIV to the Companies Act, 1956. Assets costing less than Rs. 5000/ - are written off in the year of purchase.

(ii) Lease assets are depreciated at rate specified in schedule XIV of the Companies Act 1956 as required by guidance notes on lease accounting issued by the Institute of Chartered Accountants of India. The difference between the depreciation charges, as computed using IRR method to ensure capital recovery over the primary lease period and the charge as disclosed for the year is reflected in the lease equalisation adjustment. The Company has not entered into any lease agreement on or after 1.4.2001, hence Accounting Standard - 19 issued by ICAI is not applicable to the Company.

5. INVESTMENTS

(i) Stock on hand transferred to investments are valued at price of transfer.

(ii) Investments purchased from markets are valued at cost.

(iii) Provision is made against permanent fall in market value / book value.




Mar 31, 2010

1. SYSTEM OF ACCOUNTING : The Company follows the accrual system of Accounting

2. REVENUE RECOGNITION & PROVISIONING :

(i) Lease rental are accounted for in the year they fall due. Lease Management fee is accounted for on raising of first bill.

(ii) Income from bill discounting is net of rediscounting charges paid.

(iii) Dividend is accounted for on receipt basis.

(iv) Income in respect of over due lease rentals and bills is recognised on the basis of prudential norms prescribed by Reserve Bank of India.

(v) Software Income is recognised on satisfactory delivery of the software and acceptance by the customer.

3. FIXED ASSETS:

All fixed assets are stated at historical cost.

4. DEPRECIATION:-

(i) Depreciation on fixed assets in own use has been charged using the written down value method of the rates specified in schedule XIV to the Companies Act, 1956. Assets costing less than Rs. 5000/ - are written off in the year of purchase.

(ii) Lease assets are depreciated at rate specified in schedule XIV of the Companies Act 1956 as required by guidance notes on lease accounting issued by the Institute of Chartered Accountants of India. The difference between the depreciation charges, as computed using IRR method to ensure capital recovery over the primary lease period and the charge as disclosed for the year is reflected in the lease equalisation adjustment. The Company has not entered into any lease agreement on or after 1.4.2001, hence Accounting Standard - 19 issued by ICAI is not applicable to the Company.

5. INVESTMENTS:

(i) Stock on hand transferred to investments are valued at price of transfer.

(ii) Investments purchased from markets are valued at cost.

(iii) Provision is made against permanent fall in market value / book value.

 
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