Mar 31, 2010
A. Basis of preparation The financial statements are prepared in
accordance with Indian Generally Accepted Accounting Standards (GAAP)
under the historical cost convention on the accrual basis. GAAP
comprises accounting standards notified by the Central Government of
India under Section 211(3C) of the Companies Act, 1956, other
pronouncements of the Institute of Chartered Accountants of India, the
provisions of the Companies Act, 1956 and guidelines issued by the
Securities and Exchange Board of India.
b. Use of Estimates The preparation of financial statements requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, the disclosure of contingent assets
and liabilities on the date of the financial statements and reported
amounts of revenues and expenses during the period reported. Actual
results could differ from those estimates.
c. Fixed Assets Fixed Assets are stated at the cost of acquisition
less accumulated depreciation. All costs incurred in bringing the
assets to its working condition for intended use have been capitalized.
d. Intangible Assets Intangible assets are recognized only if it is
probable that the future economic benefits that are attributable to the
asset will flow to the enterprise and the cost of the asset can be
measured reliably. The intangible assets are recorded at cost and are
carried at cost less accumulated amortization.
e. Depreciation and amortization i) Depreciation on fixed assets
excepting software has been provided on straight line method as per
the rates specified in schedule XIV to the Companies Act, 1956
ii) Pro-rata depreciation is provided from the date of purchase of
assets purchased during the period.
iii)Softwares are being amortized on straight line basis over a
period of 7 years, considering its useful life.
f. Employee Benefits
i. Provident Fund
Eligible employees receive benefits from provident fund, which is a
defined contribution plan. Both the employees and the Company make
monthly contributions to the provident fund plan equal to a specified
percentage of the covered employees salary. The contributions are made
to government administered provident fund.
ii. Employee State Insurance
Eligible employees receive benefits from the Employees State
Insurance, which is a defined contribution scheme. Both the employees
and the Company make monthly contributions to this scheme. The
employees contribute 1.75% of the covered employees salary and the
Company has to contribute 4.75% of the covered employees salary. The
contributions are made to government administered Employees State
Insurance Fund.
iii.Gratuity
The Company recognizes and pays gratuity liability to the employees as
and when it occurs.
g. Revenue Recognition
Revenues from software related services are accounted for on the basis
of services rendered on cost plus method, as per the terms of the
contract.
Revenues from engagement services are based on the number of
engagements performed. Revenues from time period services are
recognized based on the time incurred in providing services at
contracted rates.
h. Impairment of Assets
The Company periodically assesses whether there is any indication that
an asset or a group of assets comprising a cash generating unit may be
impaired. If any such indication exists, the Company estimates the
recoverable amount of asset. For an asset or group of assets that does
not generate largely independent cash inflows, the recoverable amount
is determined for the cash-generating unit to which the asset belongs.
If such recoverable amount of the asset or the recoverable amount of
the cash generating unit to which the asset belongs is less than the
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the Profit and Loss
account. If at the Balance Sheet date, there is an indication that if a
previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of depreciable historical cost. An
impairment loss is reversed only to the extent that the carrying amount
of asset does not exceed the net book value that would have been
determined; if no impairment loss has been recognized.
i. Leases
For operating leases, lease payments (including cost for services, such
as maintenance) are recognized as an expense in the statement of profit
and loss on a straight line basis over the lease term. The lease term
is the non-cancelable period for which the lessee has agreed to take on
lease the asset together with any further periods for which the lessee
has the option to continue the lease of the asset, with or without
further payment, which option at the inception of the lease it is
reasonably certain that the lessee will exercise.
j. Income-tax
Income-tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income-tax law) and deferred
tax charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the period). The
deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that the assets can be realized in future; however, where
there is unabsorbed depreciation or carry-forward losses, deferred tax
assets are recognized only if there is virtual certainty of realization
of such assets. Deferred tax assets are reviewed as at each balance sheet
date and written down value or written up to reflect the amount that is
reasonably or virtually certain (as the case may be) to be realized.
k. Fringe Benefit Tax
Consequent to the introduction of Fringe Benefit Tax ("FBT") effective
1 April 2005, the Company provides for and discloses FBT in accordance
with the provisions of Section 115WC of Income-tax Act, 1961 and the
guidance note on FBT issued by the Institute of Chartered Accountants
of India respectively.
l. Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Monetary assets and liabilities
denominated in foreign currency are translated at the rates of exchange
at the Balance Sheet date and resultant gain or loss is recognized in
the Profit & Loss Account.
m. Investments
Long term investments are stated at cost less provision for diminution
in the value of such investments. Diminution in value is provided for
where management is of the opinion that the diminution is of other than
temporary nature. Short term investments are valued at lower of cost
and net realizable value.
n. Earning Per Share
Basic earnings per share are calculated by dividing the net profit /
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.For the
purpose of calculating diluted earnings per share, the net profit /
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares, if
any.
o. Provisions and Contingent Liabilities
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably require an outflow of
resources and a reliable estimate can be made of the amounts of the
outflow.
A disclosure for a contingent liability is made when there is a
possible obligation that may, but probably will not, require an outflow
of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources
is remote, no provision or disclosure is made.
p. Miscellaneous Expenditure
The Company has a policy of amortizing public issue expenses over a
period of 5 years, i.e. one-fifth of the expenditure per year.
q. Cash Flow Statement
The cash flow statement has been prepared under the indirect method as
set out in the Accounting Standard (AS) Ã 3 ÃCash Flow StatementÃ
issued by the Institute of Chartered Accountants of India
Jun 30, 2001
A. System of Accounting : The financial statements are prepared under
the historical cost convention in accordance with applicable accounting
standards. The Company adopts the accrual basis in the preparation of
its financial statements.
b. Fixed Assets : Expenditure which are of capital nature are
capitalised at cost which comprises of net purchase price, import
duties, levies and directly attributable cost of bringing the asset to
its working condition for its intended use, Revenue Expenses incurred
for the period prior to commencement of commercial
production/installation are capitalised as part of cost,
c. Depreciation : Depreciation on fixed assets are provided as per the
rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956 under straight line method.
d. Investments are stated at cost (refer note 5 below),
e. Inventories are valued at lower of cost of net realisable value.
f. Foreign currency conversion : Foreign Currency Assets and
liabilities covered by forward contracts are stated at forward contract
rates. Foreign currency assets and liabilities not covered by forward
contracts are stated at rates prevailing at the year end.
Exchange differences relating to fixed assets are adjusted in the cost
of the asset. Any other exchange differences are dealt with in the
Profit & Loss Account.
g. Research & Development: Expenditure on research and development is
accounted according with the accounting standard for accounting
research and development issued by the institute of Chartered
Accountants of India.
h. Retirement Benefits: No provision for Gratuity has been made as none
of the employee have completed five years of continuous service as
contemplated in the payment of gratuity act.
i. All know liabilities are provided in the accounts except liabilities
of contingent in nature which have been adequately disclosed in the
accounts.
j. Sales & Services : Sales includes sale of goods and is net of
returns.
Mar 31, 2000
A. Sysem of Accounting : The financial statements ore prepared under
the historical cost convention in accordance with applicable accounting
standards. The company adopts the accrual basis in the preparation of
its finan- cial statements.
b. Fixed Assets : Expenditure which are of capital nature are
capitalised at cost which comprises of net purchase price, import
duties, levies and di- rectly attributable cost of bringing the asset
to its working condition for its intended use. Revenue Expenses
incurred for the perriod prior to com- mencement of commercial
production/instalation are capitalised as part of cost.
c. Depreciation : Depreciation on fixed assets are provded as pei ihe
rates and in the manner prescribed in Schedule XIV to the companies
Act. 1956 under straight line method.
d. Investments are stated at cost.
e. Inventories are valued at lower of cost or net realisable value.
f. Foreign currency conversion : Foreign Currency Assets and
liabilities cov- ered by forward contracts are stated at forward
contract rates.
Foreign currency assets and liabilites not covered by forward contracts
are stated at rates prevailing at the year end.
Exchange differences relating to fixed assets are adjusted in the cost
of the asset. Any other exchange differences are dealt with in the
Profit & Loss Account.
g. Kesearch & Development: Expenditure on research and development is
accounted according with the accounting standard for accounting for re-
search and development issued by the institute of chartered accountants
of India.
h. Retirement Benefits : No provision for Gratuity has been made as
none of the employee have completed five years of continuous service as
con- templated in the payment of gratuity act.
i. All know liabilities are provided for in the accounts except
liabilites of con- tingent in nature which have been adequately
disclosed in the accounts. j. Sales & Services : Sales includes sale
of goods and is net of returns.
k. Premilinary and Public issue expenses are amortised over a period of
10 years,