Mar 31, 2018
1. Significant Accounting Policies
a Statement of compliance
In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules, 2015 with effect from April 1, 2017. Previous period numbers in the financial statements have been restated to Ind AS. in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standard, the Company has presented a reconciliation from the presentation of financial statements under Accounting Standards notified under section Section 133 with the Companies Act and the Companies (Accounting Standards) Rules, 2006 (as amended in previous Gaap) to Ind AS of Shareholdersâ equity as at MarcRs. 31, 2017 and April 1, 2016 and of the comprehensive net income for the period ended MarcRs. 31st 2017.
b Basis of preparation
These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.
c Use of estimates
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of income and expense for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.
Key source of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of impairment of goodwill, impairment of investments, useful lives of property, plant and equipment, valuation of deferred tax assets and provisions and contingent liabilities. Key estimates are critical accounting estimates.
Useful lives of property, plant and equipment
The Company reviews the useful life of property, plant and equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.
Valuation of deferred tax assets
The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been explained under Note 2(n).
Provisions and contingent liabilities
A provision is recognized when the Company has a present obligation as a result of past event and it is probable than an outflow of resources will be required to settle the obligation, in respect of which the reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. Contingent liabilities are not recognized in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements
d Revenue Recognition
Revenue is realized on time-and-material basis or Fixed Bid or Milestone as specified in the work order. Revenue from software development on time and material basis is recognized based on Service rendered (software developed) and billed to clients as per the terms of specific contracts. Revenue from Fixed Bid contract is recognized on monthly basis as per contract terms. Revenue from Milestone base contract is being recognized based on effort given during the period but the Invoice is sent to customer when the milestone is achieved as per contract. Value Added tax in UK is not included in the income from Software development. Cheques issued in USA which are not encased for two years are there after written back.
Contracts are unbundled into separately identifiable components and the consideration is allocated to those identifiable components on the basis of their fair values. Revenue is recognized for respective components either at the point in time or over time, as applicable.
Revenue from software development contracts, which are generally time bound fixed price contracts, is recognized over the life of the contract using the percentage-of-completion method, with contract costs determining the degree of completion.
Revenue from the sale of internally developed and manufactured systems and third party products which do not require significant modification is recognized upon delivery, which is when the absolute right to use passes to the customer and the Company does not have any material remaining service obligation.
Unbilled Revenue included in Other Financial Assets, represents amounts recognized in respect of services performed in a accordance with Contract terms, not yet billed to Customers as at Reporting Period end.â
e Cost recognition
Costs and expenses are recognized when incurred and have been classified according to their primary nature.
The costs of the company are broadly categorized in employee benefit expenses, depreciation and amortization and other operating expenses. Employee benefit expenses include employee compensation, allowances paid and staff welfare expenses. Other operating expenses majorly include fees to external consultants, Rent, cost running its facilities, travel expenses, communication costs allowances for delinquent receivables and other expenses. Other expenses is an aggregation of costs which are individually not material such us commission and brokerage, bank charges, freight, Postage etc.
f Property ,Plant & Equipment
Property, plant and equipment are stated at cost, less accumulated depreciation (other than freehold land) and impairment loss, if any.
Property, plant and equipment individually costing RS.5,000 or less which are not capitalised except when they are part of a larger capital investment programmed.
Depreciation is provided for property, plant and equipment so as to expense the cost less residual values over their estimated useful lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation on fixed assets is provided using the straight-line method on the basis of use full life of assets under schedule II of the Indian Companies Act, 2013.
g Intangible assets
Intangible assets purchased are measured at cost or fair value as of the date of acquisition, as applicable, less accumulated amortisation and accumulated impairment, if any.
Intangible assets/Software Licenses are amortized on there respective individual estimated useful lives on a straight line basis , commencing from the date the assets is available to the company for its use.
The estimated useful lives are as mentioned below:
COMPUTER SOFTWARE & LICENCES 6 Years
Depreciation is not recorded on Intangible Asset under Development until construction and installation are complete and the asset is ready for its intended use.
h Investments
Investments, which are readily realizable and intended to be held for not more than one year from the date of investment made are classified as Current Investments. All investments other than long term investments are classified as non-current investments. Investment are valued accordance with the applicable Ind AS .
i Cash and Cash Equivalent
Cash and cash Equivalent includes Cash on hand, Demand Draft or Cheques on hand, Demand Deposit with Banks, other short term highly liquid investments.
j Foreign Currency Translation
Foreign Currency Transactions are recorded at exchange rate prevailing at the closing of the month for respective months. Exchange difference arising on settlement was included in Profit & Loss Account till the accounts ended 30th September â2008. Foreign unit is considered as non-integral and the foreign exchange difference is transferred to âInter Branch Foreign Fluctuation Reserve Accountâ. Revenue items of the Foreign Branch are converted in equivalent Indian Rupees at the buying rate prevailing at the end of the month. Assets and Liabilities of the Foreign Branch are converted in equivalent Indian rupees at the applicable rate prevailing at the end of the year. The effect of exchange rate fluctuation in respect of fixed assets is adjusted with the cost of the respective assets. Investment in subsidiary Company is being valued at carrying cost adjusted by any non-temporary decline in their value according to the requirements of statute.
k Spares and Consumables (Computers spares accessories and stationery re charged to revenue in the year they are purchased.
l Cash Flows are reported using the indirect methodwhereby profit for the period is adjustedfor the effectsof transactions of non cash nature,any deferrals, accrualsof past and futureoperating cash receipts and payments associated with investing and financing cash flows.Cash from operating,investing and financing activities are segregated.
m Employee Benefits
Contribution of Employers share to Employeesâ Provident Fund and ESI are worked on accrual basis and charged to Profit & Loss Account. The Company also provides for Gratuity and Leave Encashment based on actuarial valuation made by an independent actuary as per IAS 19 Compliance of The Institute of Chartered Accountants of India, Actuarial gains and losses are recognised in full in the other comprehensive income for the period in which they occur.
n Income Tax
Current Income tax expense comprise taxes on income from operation in India and in foreign jurisdiction. Income tax payable in India is determination in accordance with the provision of I. Tax Act 1961. Tax expense relating to foreign operation is determined in operator is determined in accordance with the laws applicable in accordance with tax laws applicable in countries where such operations are domiciled.
Advance tax and provisions for current income taxes are presented in the Balance Sheet after off setting advance taxes paid and income tax provision arising in the same tax jurisdiction and where the company intends to settle the assets and liabilities on a net basis.
Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.
o Financial instruments
Deferred income tax asset are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.
Initial recognition
i) The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.
ii) Financial assets at amortised cost
The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, that are not at fair value through profit or loss, are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.
iii) Financial assets at fair value through other comprehensive income
Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
iv) Financial assets at fair value through Profit & Loss
Financial assets are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition. The transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are immediately recognised in profit or loss.
v) Investment in subsidiaries
Investment in subsidiaries are measured at cost
vi) Derecognition of financial instruments
The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for Derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the companyâs balance sheet when the obligation specified in the contract is discharged or cancelled or expires.
p Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to accounts
Assets taken on Finance Lease have been capitalized during the year of agreement and charged off in accordance with the applicable rate of Depreciation.
q Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount is assessed by reference to the net present value of expected future post-tax cash flows of the relevant cash generating unit or fair value less cost to sell, whichever is higher. The discount rate is applied, based upon the weighted average cost of capital with appropriate adjustments for the risks associated with the relevant business. Any impairment in value is charged to the Income Statement in the year, which it occurs.
r Segment Reporting
The companyâs operating business are organized and managed as per Location of the client. Common costs are allocated to the cost based on the Revenue Mix. Unallocated costs are disclosed separately. The company prepare its segment information in conformity with the accounting policy adopted for preparing and presenting the financial statement of the Company as a whole.
s Earnings per share
Basic earning per share is calculated by dividing the net profit or Loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For Calculating Diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2017
1 CORPORATE INFORMATION
RS Software has focused exclusively on providing software solution to electronic payment industries since its inception. The company is engaged in development, testing and maintenance of software for its clients based in different geographies. The company operates in US, UK and India.
2 SIGNIFICANT ACCOUNTING POLICIES
a) Convention
The financial statements have been prepared under the historical cost convention in accordance with the applicable Accounting Standards in India and the provisions of the Indian Companies Act, 2013.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realized on time-and-material basis or Fixed Bid or Milestone as specified in the work order. Revenue from software development on time and material basis is recognized based on software developed and billed to clients as per the terms of specific contracts. Revenue from Fixed Bid contract is sent on monthly basis as per contract terms. Revenue from Milestone base contract is being recognized based on effort given during the period but the Invoice is sent to customer when the milestone is achieved as per contract. Value Added tax in UK is not included in the income from Software development. Cheques issued in USA which are not encased within 2 years of issuance are written back.
d) Fixed Assets Tangible Assets
Fixed Assets are capitalized at cost inclusive of installation charges, interest & other financial charges on borrowings and other expenses for acquisition of such fixed assets till they are made operational.
Intangible Assets
Computer Software and License are capitalized at cost inclusive of installation charges, interest & other financial charges on borrowings and other expenses for installation of such License.
e) Depreciation and Amortization
Depreciation on fixed assets is provided using the straight-line method on the basis of useful life of assets under schedule II of the Indian Companies Act, 2013. Depreciation on additions due to realignment of rupee value of foreign currency loan or fixed assets has been charged proportionately on the productive life of the assets. Intangible assets/Software Licensees are amortized on their respective individual estimated useful lives on a straight line basis, commencing from the date the assets is available to the company for its use.
f) Investments
Long term Investments are valued at cost. Provision for diminution is made to recognize the decline, other than temporary, in the value of investments, such reduction being determined and made for each investment individually. Changes in carrying amount of investments are charged or credited to the Profit and Loss Account.
Investments, which are readily realizable and intended to be held for not more than one year from the date of investment made are classified as Current Investments. All investments other than long term investments are classified as non-current investments. Current Investment are valued at lower of Cost or Fair Value and diminution if any is considered at Year end.
g) Foreign Currency Transaction
Foreign Currency Transactions are recorded at exchange rate prevailing at the closing of the month for respective months. Exchange difference arising on settlement was included in Profit & Loss Account till the accounts ended 30th September''2008. Foreign unit is considered as non-integral and the foreign exchange difference is transferred to "lnter Branch Foreign Fluctuation Reserve Account". Revenue items of the Foreign Branch are converted in equivalent Indian Rupees at the buying rate prevailing at the end of the month. Assets and Liabilities of the Foreign Branch are converted in equivalent Indian rupees at the applicable rate prevailing at the end of the year. The effect of exchange rate fluctuation in respect of fixed assets is adjusted with the cost of the respective assets. Investment in subsidiary Company is being valued at carrying cost adjusted by any non-temporary decline in their value according to the requirements of statute.
h) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in the year they are purchased.
i) Income Tax
Current Income tax expense comprise taxes on income from operation in India and in foreign jurisdiction. Income tax payable in India is determined in accordance with the provision of I. Tax Act 1961. Tax expense relating to foreign operation is determined in operator is determined in accordance with the laws applicable in accordance with tax laws applicable in countries where such operations are domiciled.
Advance tax and provisions for current income taxes are presented in the Balance Sheet after offsetting advance taxes paid and income tax provision arising in the same tax jurisdiction and where the company intends to settle the assets and liabilities on a net basis.
Deferred Tax is accounted for by computing the tax effect of timing differences, which arise during the year and reverse in subsequent periods.
j) Contingent liabilities
Contingent liabilities are not accounted for but have been disclosed by way of Notes to Accounts.
k) Employee Benefits
Contribution of Employers share to Employees'' Provident Fund and ESI are worked on accrual basis and charged to Profit & Loss Account. The Company also provides for Gratuity and Leave Encashment based on actuarial valuation made by an independent actuary as per AS 15 Compliance of The Institute of Chartered Accountants of India.
I) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to accounts.
Assets taken on Finance Lease have been capitalized during the year of agreement and charged off in accordance with the applicable rate of Depreciation.
m) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount is assessed by reference to the net present value of expected future post-tax cash flows of the relevant cash generating unit or fair value less cost to sell, whichever is higher. The discount rate is applied, based upon the weighted average cost of capital with appropriate adjustments for the risks associated with the relevant business. Any impairment in value is charged to the Income Statement in the year, which it occurs.
n) Segment Reporting
The company''s operating business are organized and managed as per Location of the client. Common costs are allocated to the cost based on the Revenue Mix. Unallocated costs are disclosed separately. The company prepare its segment information in conformity with the accounting policy adopted for preparing and presenting the financial statement of the Company as a whole.
o) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or Loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.
For Calculating Diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
The company has only one class of Shares referred to as equity share having a par value of Rs,5/- at the beginning of the year. Each holder of equity share is entitled to one vote per share. (''The Company has sub-divided the face value of equity shares from Rs,10 to Rs,5 per share during FY 14-15.)
In the event of liquidation of the Company the holder of the equity shares will be entitled to receive any of the remaining assets of the company after distribution of all preferential amounts. Flow ever, no such preferential amount exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
The company has allotted 2411623 equity shares in FY 10-11 ,10640 equity share in FY 11-12,16226 equity share in FY 12-13 and 8372 equity share in FY 13-14 as bonus share.
In response to order received for demand of Rs,3.99 Cr, the company has filled an apeal with CESTAT and the same is pending as on date.
In response of the demand order received for AY2013-14of Rs,4.3 Cr, the company has filed an appeal with CIT(A) and the same is pending as on date.
In respect of AY 12-13 demand order received for Rs,10.30 crs /the company has filed appeal with CIT which is still pending.
19. COMMITMENTS Other Commitment
Company has a lease agreement for the premises of Salt lake City, Sector V, Kolkata, The Lease has been renewed till 2019.
Mar 31, 2016
Notes on accounts for the year ended March 31, 2016
1 CORPORATE INFORMATION
R. S. Software has focused exclusively on providing software solution to electronic payment industries since its inception. The company is engaged in development, testing and maintenance of software for its clients based in different geographies. The company operates in US, UK and India.
2 SIGNIFICANT ACCOUNTING POLICIES
a) Convention
The financial statements have been prepared under the historical cost convention in accordance with the applicable Accounting Standards in India and the provisions of the Indian Companies Act, 2013.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realized on time-and-material basis or Fixed Bid or Milestone as specified in the work order. Revenue from software development on time and material basis is recognized based on software developed and billed to clients as per the terms of specific contracts. Revenue from Fixed Bid contract is sent on monthly basis as per contract terms. Revenue from Milestone base contract is being recognized based on effort given during the period but the Invoice is sent to customer when the milestone is achieved as per contract. Value Added Tax in UK is not included in the income from Software development. Cherubs issued in USA which are not encased for two years are there after written back.
d) Fixed Assets Tangible Assets
Fixed Assets are capitalized at cost inclusive of installation charges, interest & other financial charges on borrowings and other expenses for acquisition of such fixed assets till they are made operational.
Intangible Assets
Computer Software and License are capitalized at cost inclusive of installation charges, interest & other financial charges on borrowings and other expenses for installation of such License.
e) Depreciation and Amortization
Depreciation on fixed assets is provided using the straight-line method on the basis of use full life of assets under schedule II of the Indian Companies Act, 2013. Depreciation on additions due to realignment of rupee value of foreign currency loan or fixed assets has been charged proportionately on the productive life of the assets. Intangible assets/Software Licenses are amortized on their respective individual estimated useful lives on a straight line basis , commencing from the date the assets is available to the company for its use.
f) Investments
Long term Investments are valued at cost. Provision for diminution is made to recognize the decline, other than temporary, in the value of investments, such reduction being determined and made for each investment individually. Changes in carrying amount of investments are charged or credited to the Profit and Loss Account.
Investments, which are readily realizable and intended to be held for not more than one year from the date of investment made are classified as Current Investments. All investments other than long term investments are classified as non-current investments. Current Investment are valued at lower of Cost or Fair Value and diminution if any is considered at year end.
g) Foreign Currency Transaction
Foreign Currency Transactions are recorded at exchange rate prevailing at the closing of the month for respective months. Exchange difference arising on settlement was included in Profit & Loss Account till the accounts ended 30th September, 2008. Foreign unit is considered as non-integral and the foreign exchange difference is transferred to "Inter Branch Foreign Fluctuation Reserve Account". Revenue items of the Foreign Branch are converted in equivalent Indian Rupees at the buying rate prevailing at the end of the month. Assets and Liabilities of the Foreign Branch are converted in equivalent Indian rupees at the applicable rate prevailing at the end of the year. The effect of exchange rate fluctuation in respect of fixed assets is adjusted with the cost of the respective assets. Investment in subsidiary Company is being valued at carrying cost adjusted by any non-temporary decline in their value according to the requirements of statute.
h) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in the year they are purchased.
i) Income Tax
Current Income tax expense comprise taxes on income from operation in India and in foreign jurisdiction. Income tax payable in India is determination in accordance with the provision of I. Tax Act 1961. Tax expense relating to foreign operation is determined in operator is determined in accordance with the laws applicable in countries where such operations are domiciled.
Advance tax and provisions for current income taxes are presented in the Balance Sheet after offsetting advance taxes paid and income tax provision arising in the same tax jurisdiction and where the company intends to settle the assets and liabilities on a net basis.
Deferred Tax is accounted for by computing the tax effect of timing differences, which arise during the year and reverse in subsequent periods.
j) Contingent liabilities
Contingent liabilities are not accounted for but have been disclosed by way of Notes to Accounts.
k) Employee Benefits
Contribution of Employers share to Employees'' Provident Fund and ESI are worked on accrual basis and charged to Profit & Loss Account. The Company also provides for Gratuity and Leave Encashment based on actuarial valuation made by an independent actuary as per Revised AS 15 Compliance of The Institute of Chartered Accountant of India.
l) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to accounts
Assets taken on Finance Lease have been capitalized during the year of agreement and charged off in accordance with the applicable rate of Depreciation.
m) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount is assessed by reference to the net present value of expected future post-tax cash flows of the relevant cash generating unit or fair value less cost to sell, whichever is higher. The discount rate is applied, based upon the weighted average cost of capital with appropriate adjustments for the risks associated with the relevant business. Any impairment in value is charged to the Income Statement in the year, which it occurs.
n) Segment Reporting
The company''s operating business are organized and managed as per Location of the client. Common costs are allocated to the cost based on the Revenue Mix. Unallocated costs are disclosed separately. The company prepare its segment information in conformity with the accounting policy adopted for preparing and presenting the financial statement of the Company as a whole.
o) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.
Mar 31, 2015
A) Convention
The financial statements have been prepared under the historical cost
convention in accordance with the applicable Accounting Standards in
India and the provisions of the Indian Companies Act, 2013.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realised on time-and-material basis or Fixed Bid or
Milestone as specified in the work order. Revenue from software
development on time and material basis is recognised based on software
developed and billed to clients as per the terms of specific contracts.
Revenue from Fixed Bid contract is sent on monthly basis as per
contract terms. Revenue from Milestone base contract is being
recognised based on effort given during the period but the Invoice is
sent to customer when the milestone is achieved as per contract. Value
Added tax in UK is not included in the income from Software
development. Cheques issued in USA which are not encased for two years
are there after written back.
d) Fixed Assets Tangible Assets
Fixed Assets are capitalized at cost inclusive of installation charges,
interest & other financial charges on borrowings and other expenses for
acquisition of such fixed assets till they are made operational.
Intangible Assets
Computer Software and License are capitalized at cost inclusive of
installation charges, interest & other financial charges on borrowings
and other expenses for installation of such License.
e) Depreciation and Amortisation
Depreciation on fixed assets is provided using the straight-line method
on the basis of use full life of assets under schedule II of the Indian
Companies Act, 2013. Depreciation on additions due to realignment of
rupee value of foreign currency loan or fixed assets has been charged
proportionately on the productive life of the assets. Intangible
assets/Software Licences are amortised on there respective individual
estimated useful lives on a straight line basis , commencing from the
date the assets is available to the company for its use.
f) Investments
Long term Investments are valued at cost. Provision for diminution is
made to recognize the decline, other than temporary, in the value of
investments, such reduction being determined and made for each
investment individually. Changes in carrying amount of investments are
charged or credited to the Profit and Loss Account.
Investments, which are readily realizable and intended to be held for
not more than one year from the date of investment made are classified
as Current Investments. All investments other than long term
investments are classified as non-current investments. Current
Investment are valued at lower of Cost or Fair Value and diminution if
any is considered at Year end.
g) Foreign Currency Translation
Foreign Currency transactions are recorded at exchange rate prevailing
at the closing of the month for respective months. Exchange difference
arising on settlement was included in Profit & Loss Account till the
accounts ended 30th September ''2008. Foreign unit is considered as
non-integral and the foreign exchange difference is transferred to
"Inter Branch Foreign Fluctuation Reserve Account". Revenue items of
the Foreign Branch are converted in equivalent Indian Rupees at the
buying rate prevailing at the end of the month. Assets and Liabilities
of the Foreign Branch are converted in equivalent Indian rupees at the
applicable rate prevailing at the end of the year. The effect of
exchange rate fluctuation in respect of fixed assets is adjusted with
the cost of the respective assets. Investment in subsidiary Company is
being valued at carrying cost adjusted by any non-temporary decline in
their value according to the requirements of statute.
h) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in
the year they are purchased.
i) Income Tax
Current Income tax expense comprise taxes on income from operation in
India and in foreign jurisdiction. Income tax payable in India is
determination in accordance with the provision of I. Tax Act 1961. Tax
expense relating to foreign
operation is determined in operator is determined in accordance with
the laws applicable in accordance with tax laws applicable in countries
where such operations are domiciled.
Advance tax and provisions for current income taxes are presented in
the Balance Sheet after off setting advance taxes paid and income tax
provision arising in the same tax jurisdiction and where the company
intends to settle the assets and liabilities on a net basis.
Deferred Tax is accounted for by computing the tax effect of timing
differences, which arise during the year and reverse in subsequent
periods.
j) Contingent liabilities
Contingent liabilities are not accounted for but have been disclosed by
way of Notes to Accounts.
k) Employee Benefits
Contribution of Employers share to Employees'' Provident Fund and ESI
are worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for Gratuity and Leave Encashment based on
actuarial valuation made by an independent actuary as per Revised AS 15
Compliance of The Institute of Chartered Accountant of India.
l) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to
accounts
Assets taken on Finance Lease have been capitalized during the year of
agreement and charged off in accordance with the applicable rate of
Depreciation.
m) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable. When a review for impairment is conducted, the recoverable
amount is assessed by reference to the net present value of expected
future post-tax cash flows of the relevant cash generating unit or fair
value less cost to sell, whichever is higher. The discount rate is
applied, based upon the weighted average cost of capital with
appropriate adjustments for the risks associated with the relevant
business. Any impairment in value is charged to the Income Statement in
the year, which it occurs.
n) Segment Reporting
The company''s operating business are organised and managed as per
Location of the client. Common costs are allocated to the cost based on
the Revenue Mix. Unallocated costs are disclosed separately. The
company prepare its segment information in conformity with the
accounting policy adopted for preparing and presenting the financial
statement of the Company as a whole.
o) Earning Per Share
"Basic earning per share is calculated by dividing the net profit or
Loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period."
For Calculating Diluted earning per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average
number of share outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
Mar 31, 2013
A) Convention
The fi nancial statements have been prepared under the historical cost
convention in accordance with the applicable Accounting Standards in
India and the provisions of the Indian Companies Act, 1956.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realised on time-and-material basis or Fixed Bid or
Milestone as specifi ed in the work order. Revenue from software
development on time and material basis is recognised based on software
developed and billed to clients as per the terms of specifi c
contracts. Revenue from Fixed Bid contract is sent on monthly basis as
per contract terms. Revenue from Milestone base contract is being
recognised based on eff ort given during the period but the Invoice is
sent to customer when the milestone is achieved as per contract. Value
Added tax in UK is not included in the income from Software
development. Cheques issued in USA which are not encashed for two years
are there after written back.
d) Fixed Assets Tangible Assets
Fixed Assets are capitalized at cost inclusive of installation charges,
interest & other fi nancial charges on borrowings and other expenses
for acquisition of such fi xed assets till they are made operational.
Intangible Assets
Computer Software and License are capitalized at cost inclusive of
installation charges, interest & other fi nancial charges on borrowings
and other expenses for installation of such License.
e) Depreciation and Amortisation
Depreciation on fi xed assets is provided using the straight-line
method at the rates prescribed under the Schedule XIV of the Indian
Companies Act, 1956. However, Plant & Machinery is being depreciated @
33.33%. Assets costing less than Rs. 5,000/- are depreciated in full in
the year of purchase. Depreciation on additions due to realignment of
rupee value of foreign currency loan or fi xed assets has been charged
proportionately on the productive life of the assets. Intangible
assets/Software Licences are amortised on there respective individual
estimated useful lives on a straight line basis , commensing from the
date the assets is available to the company for its use.
f) Investments
Long term Investments are valued at cost. Provision for diminution is
made to recognize the decline, other than temporary, in the value of
investments, such reduction being determined and made for each
investment individually. Changes in carrying amount of investments are
charged or credited to the Profi t and Loss Account.
Investments, which are readily realizable and intended to be held for
not more than one year from the date of investment made are classifi ed
as Current Investments. All investments other than long term
investments are classifi ed as non-current investments. Current
Investment are valued at lower of Cost or Fair Value.
g) Foreign Currency Translation
Foreign Currency transactions are recorded at exchange rate prevailing
at the closing of the month for respective months. Exchange diff erence
arising on settlement was included in Profi t & Loss Account till the
accounts ended 30th September ''2008. Foreign unit is considered as
non-integral and the foreign exchange diff erence is transferred to
"Inter Branch Foreign Fluctuation Reserve Account". Revenue items of
the Foreign Branch are converted in equivalent Indian Rupees at the
buying rate prevailing at the end of the month. Assets and Liabilities
of the Foreign Branch are converted in equivalent Indian rupees at the
applicable rate prevailing at the end of the year. The eff ect of
exchange rate fl uctuation in respect of fi xed assets is adjusted with
the cost of the respective assets. Investment in subsidiary Company is
being valued at carrying cost adjusted by any non-temporary decline in
their value according to the requirements of statute.
h) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in
the year they are purchased.
i) Income Tax
Current Income tax expense comprise taxes on income from operation in
India and in foreign jurisdiction. Income tax payable in India is
determination in accordance with the provision of I. Tax Act 1961. Tax
expense relating to foreign operation is determined in operator is
determined in accordance with the laws applicable in accordance with
tax laws applicable in countries where such operations are domicited.
Advance tax and provisions for current income taxes are presented in
the Balance Sheet after off setting advance taxes paid and income tax
provision arising in the same tax jurisdiction and where the company
intends to settle the assets and liabilities on a net basis.
Deferred Tax is accounted for by computing the tax eff ect of timing
diff erences, which arise during the year and reverse in subsequent
periods.
j) Contingent liabilities
Contingent liabilities are not accounted for but have been disclosed by
way of Notes to Accounts.
k) Employee Benefi ts
Contribution of Employers share to Employees'' Provident Fund and ESI
are worked on accrual basis and charged to Profi t & Loss Account. The
Company also provides for gratuity and leave encashment based on
actuarial valuation made by an independent actuary as per Revised AS 15
Compliance of The Institute of Chartered Accountant of India.
l) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to
Accounts Assets taken on Finance Lease have been capitalized during the
year of Agreement and charged off in accordance with the applicable
rate of Depreciation.
m) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable. When a review for impairment is conducted, the recoverable
amount is assessed by reference to the net present value of expected
future post-tax cash fl ows of the relevant cash generating unit or
fair value less cost to sell, whichever is higher. The discount rate is
applied, based upon the weighted average cost of capital with
appropriate adjustments for the risks associated with the relevant
business. Any impairment in value is charged to the Income Statement in
the year, which it occurs.
n) Segment Reporting
The company''s operating business are organised and managed as per
Location of the client. Common cost are allocated to the cost based on
the Revenue Mix. Unallocated cost are disclosed separately. The company
prepare it''s segment information in confi rmity with the accounting
policy adapted for preparing and presenting the fi nancial statement of
the Company as a whole.
o) Earning Per Share
"Basic earning per share is calculated by dividing the net profi t or
Loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable Taxes) by the weighted
average number of equity shares outstanding during the period."
For Calculating Diluted earning per share, the net profi t or loss for
the period attributable to equity shareholders and the weighted average
number of shareoutstanding during the period are adjusted for the eff
ects of all dillutive potential equity shares.
Mar 31, 2012
A) Convention
The financial statements have been prepared under the historical cost
convention in accordance with the applicable Accounting Standards in
India and the provisions of the Indian Companies Act, 1956.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realized on time-and-material basis and billed to clients as
per the terms of specific contracts. Revenue from software development
on time and material basis is recognized based on software developed
and billed to clients as per the terms of specific contracts. Revenue
from sale of special import licenses is recognized when the licenses
are actually sold. The income from software development is inclusive of
value added tax.
d) Fixed Assets Tangible Assets
Fixed Assets are capitalized at cost inclusive of installation charges,
interest & other financial charges on borrowings and other expenses for
acquisition of such fixed assets till they are made operational.
Intangible Assets
Computer Software and License are capitalized at cost inclusive of
installation charges, interest & other financial charges on borrowings
and other expenses for installation of such license.
e) Depreciation and Amortization
Depreciation on fixed assets is provided using the straight-line method
at the rates prescribed under the Schedule XIV of the Indian Companies
Act, 1956. However, Plant & Machinery is being depreciated @ 33.33%.
Assets costing less than Rs5,000/- are depreciated in full in the year
of purchase. Depreciation on additions due to realignment of rupee
value of foreign currency loan or fixed assets has been charged
proportionately on the productive life of the assets. Intangible
assets/Software Licenses are amortized on their respective individual
estimated useful lives on a straight line basis , commencing from the
date the assets are available to the company for its use.
f) Investments
Long term Investments are valued at cost. Provision for diminution is
made to recognize the decline, other than temporary, in the value of
investments, such reduction being determined and made for each
investment individually. Changes in carrying amount of investments are
charged or credited to the Profit and Loss Account.
Investments, which are readily realizable and intended to be held for
not more than one year from the date of investment made are classified
as Current Investments. All investments other than long term
investments are classified as non-current investments. Current
Investment are valued at lower of Cost or Fair Value.
g) Foreign Currency Transactions
Foreign Currency transactions are recorded at exchange rate prevailing
at the closing of the month for respective months. Exchange difference
arising on settlement was included in Profit & Loss Account till the
accounts ended 30th September 2008. Foreign unit is considered as
non-integral and the foreign exchange difference is transferred to
"Inter Branch Foreign Fluctuation Reserve Account". Revenue items of
the Foreign Branch are converted in equivalent Indian Rupees at the
buying rate prevailing at the end of the month. Assets and Liabilities
of the Foreign Branch are converted in equivalent Indian rupees at the
applicable rate prevailing at the end of the year. The effect of
exchange rate fluctuation in respect of fixed assets is adjusted with
the cost of the respective assets. Investment in subsidiary Company is
being valued at carrying cost adjusted by any non-temporary decline in
their value according to the requirements of statute.
i) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in
the year they are purchased.
j) Income Tax
The Company computes Income Tax Liability under the "Tax Payable"
method prevailing at the time in the country. Company also has Minimum
Alternate Tax (MAT) credit to be adjusted against normal tax liability.
Deferred Tax is accounted for by computing the tax effect of timing
differences, which arise during the year and reverse in subsequent
periods.
k) Contingent liabilities
Contingent liabilities are not accounted for but have been disclosed by
way of Notes to Accounts.
I) Employee Benefits
Contribution of Employers share to Employees' Provident Fund and ESI
are worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
actuarial valuation made by an Independent Actuary as per Revised AS 1
5 Compliance of The Institute of Chartered Accountants of India.
m) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to
Accounts
Assets taken on Finance Lease have been capitalized during the year of
agreement and charged off in accordance with the applicable rate of
Depreciation.
n) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable. When a review for impairment is conducted, the recoverable
amount is assessed by reference to the net present value of expected
future post-tax cash flows of the relevant cash generating unit or fair
value less cost to sell, whichever is higher. The discount rate is
applied, based upon the weighted average cost of capital with
appropriate adjustments for the risks associated with the relevant
business. Any impairment in value is charged to the Income Statement in
the year, which it occurs.
o) Segment Reporting
The company's operating businesses are organized and managed as per
Location of the client. Common cost are allocated to the cost based on
the Revenue Mix. Unallocated cost are disclosed separately. The company
prepares it's segment information in conformity with the accounting
policy adapted for preparing and presenting the financial statement of
the Company as a whole.
p) Earning Per Share
Basic earning per share is calculated by dividing the net profit or
Loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable Taxes) by the weighted
average number of equity shares outstanding during the period.
For Calculating Diluted earning per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average
number of share outstanding during the period are adjusted for the
effects of all dilutive potential equity shares.
Mar 31, 2011
A) Convention
The financial statements have been prepared under the historical cost
convention in accordance with the applicable Accounting Standards in
India and the provisions of the Indian Companies Act, 1956.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realised on time-and-material basis and billed to clients as
per the terms of specific contracts. Revenue from software development
on time and material basis is recognised based on software developed
and billed to clients as per the terms of specific contracts. Revenue
from sale of special import licenses is recognized when the licenses
are actually sold. The income from software development is inclusive of
value added tax.
d) Fixed Assets
Fixed Assets are capitalized at cost inclusive of installation charges,
interest & other financial charges on borrowings and other expenses for
acquisition of such fixed assets till they are made operational.
e) Depreciation
Depreciation on fixed assets is provided using the straight-line method
at the rates prescribed Under the Schedule XIV of the Indian Companies
Act, 1956. However, Plant & Machinery is being depreciated @ 33.33%.
Assets costing less than Rs.5,000/- are depreciated in full in the year
of purchase. Depreciation on additions due to realignment of rupee
value of foreign currency loan or fixed assets has been charged
proportionately on the productive life of the assets. Significant
purchased application software that is an integral part of the computer
system expected to provide lasting benefits is capitalized and
amortized in three year. Expenses incurred on leased premises are
amortized over the remaining period of lease.
f) Investments
Current Investments are valued at lower of cost or market value.
Long term Investments are valued at cost. Provision for diminution is
made to recognize the decline, other than temporary, in the value of
investments, such reduction being determined and made for each
investment individually. Changes in carrying amount of investments are
charged or credited to the Profit and Loss Account.
g) Miscellaneous Expenditure
Share Issue Expenses has been written off during the year.
h) Foreign Currency Transactions
Foreign Currency transactions are recorded at exchange rate prevailing
at the closing of the month for respective months. Exchange difference
arising on settlement was included in Profit & Loss Account till the
accounts ended 30th September 2008. Foreign unit is considered as
non-integral and the foreign exchange difference is transferred to
"Inter Branch Foreign Fluctuation Reserve Account". Revenue items of
the Foreign Branch are converted in equivalent Indian Rupees at the
buying rate prevailing at the end of the month. Assets and Liabilities
of the Foreign Branch are converted in equivalent Indian rupees at the
applicable rate prevailing at the end of the year. The effect of
exchange rate fluctuation in respect of fixed assets is adjusted with
the cost of the respective assets. Investment in subsidiary Company is
being valued at carrying cost adjusted by any non-temporary decline in
their value according to the requirements of statute.
i) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in
the year they are purchased.
j) Income Tax
The Company computes Income Tax Liability under the "Tax Payable"
method after taking credit for allowances and exemptions under section
10B of the Income Tax Act, 1961 for the Export Oriented Unit with the
assumption that
realization from debtors in convertible foreign exchange shall be
received within a period of six months from the end of the previous
year or any extended period by competent authority. Minimum Alternate
Tax (MAT) to the extent applicable is considered.
Deferred Tax is accounted for by computing the tax effect of timing
differences, which arise during the year and reverse in subsequent
periods.
k) Contingent Liabilities
Contingent liabilities are not accounted for but have been disclosed by
way of Notes to Accounts.
l) Employee Benefits
Contribution of Employers share to Employees Provident Fund and ESI
are worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
actuarial valuation made by an independent actuary as per Revised AS 15
Compliance of The Institute of Chartered Accountant of India.
m) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to
Accounts
Assets taken on Finance Lease have been capitalized during the year of
agreement and charged off in accordance with the applicable rate of
Depreciation.
n) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable. When a review for impairment is conducted, the recoverable
amount is assessed by reference to the net present value of expected
future post-tax cash flows of the relevant cash generating unit or fair
value less cost to sell, whichever is higher. The discount rate is
applied, based upon the weighted average cost of capital with
appropriate adjustments for the risks associated with the relevant
business. Any impairment in value is charged to the Income Statement in
the year, which it occurs.
Mar 31, 2010
A) Convention
The financial statements have been prepared under the historical cost
convention in accordance with the applicable Accounting Standards in
India and the provisions of the Indian Companies Act, 1956.
b) Basis of Accounting
The Company follows accrual basis of accounting.
c) Revenue Recognition
Revenue is realised on time-and-material basis and billed to clients as
per the terms of specific contracts. Revenue from software development
on time and material basis is recognised based on software developed
and billed to clients as per the terms of specific contracts. Revenue
from sale of special import licenses is recognized when the licenses
are actually sold. The income from software development is inclusive of
value added tax.
d) Fixed Assets
Fixed Assets are capitalized at cost inclusive of installation charges,
interest & other financial charges on borrowings and other expenses for
acquisition of such fixed assets till they are made operational.
e) Depreciation
Depreciation on fixed assets is provided using the straight-line method
at the rates prescribed under the Schedule XIV of the Indian Companies
Act, 1956. However, Plant & Machinery is being depreciated @ 33.33%.
Assets costing less than Rs.5,000/- are depreciated in full in the year
of purchase. Depreciation on additions due to realignment of rupee
value of foreign currency loan or fixed assets has been charged
proportionately on the productive life of the assets. Significant
purchased application software that is an integral part of the computer
system expected to provide lasting benefits is capitalized and
amortized in three years. Expenses incurred on leased premises are
amortized over the remaining period of lease.
f) Investments
Current Investments are valued at lower of cost or market value.
Long term Investments are valued at cost. Provision for diminution is
made to recognize the decline, other than temporary, in the value of
investments, such reduction being determined and made for each
investment individually. Changes in carrying amount of investments are
charged or credited to the Profit and Loss Account.
g) Miscellaneous Expenditure
Share Issue Expenses are being written off in sixty monthly
installments commencing from the date of closing of the Right Issue.
h) Foreign Currency Translation
Foreign Currency transactions are recorded at exchange rate prevailing
at the closing of the month for respective months. Exchange difference
arising on settlement was included in Profit & Loss Account till the
accounts ended 30th September 2008. Foreign unit is considered as
non-integral and the foreign exchange difference is transferred to
ÃInter Branch Foreign Fluctuation Reserve AccountÃ. Revenue items of
the Foreign Branch are converted in equivalent Indian Rupees at the
buying rate prevailing at the end of the month. Assets and Liabilities
of the Foreign Branch are converted in equivalent Indian rupees at the
applicable rate prevailing at the end of the year. The effect of
exchange rate fluctuation in respect of fixed assets is adjusted with
the cost of the respective assets. Investment in subsidiary Company is
being valued at carrying cost adjusted by any non-temporary decline in
their value according to the requirements of statute.
i) Spares and Consumables
Computer spares, accessories and stationery are charged to revenue in
the year they are purchased.
j) Income Tax
The Company computes income tax liability under the ÃTax PayableÃ
method after taking credit for allowances and exemptions under section
10B of the Income Tax Act, 1961 for the Export Oriented Unit with the
assumption that realization from debtors in convertible foreign
exchange shall be received within a period of six months from the end
of the previous year or any extended period by competent authority.
Minimum Alternate Tax (MAT) to the extent applicable is considered.
Deferred Tax is accounted for by computing the tax effect of timing
differences, which arise during the year and reverse in subsequent
periods.
k) Contingent liabilities
Contingent liabilities are not accounted for but have been disclosed
byway of Notes to Accounts.
l) Employee Benefits
Contribution of Employers share to Employees Provident Fund and ESI
are worked on accrual basis and charged to Profit & Loss Account. The
Company also provides for gratuity and leave encashment based on
actuarial valuation made by an independent actuary as per Revised AS 15
Compliance of The Institute of Chartered Accountant of India.
m) Asset taken on Lease
Lease rentals on operating leases are charged on a monthly basis to
Accounts
Assets taken on Finance Lease have been capitalized during the year of
Agreement and charged off in accordance with the applicable rate of
Depreciation.
n) Impairment of Assets
Property, plant and equipment are reviewed for impairment if events or
changes in circumstances indicate that the carrying amount may not be
recoverable. When a review for impairment is conducted, the recoverable
amount is assessed by reference to the net present value of expected
future post-tax cash flows of the relevant cash generating unit or fair
value less cost to sell, whichever is higher. The discount rate is
applied, based upon the weighted average cost of capital with
appropriate adjustments for the risks associated with the relevant
business. Any impairment in value is charged to the Income Statement
in the year, which it occurs.
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