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Accounting Policies of Secure Earth Technologies Ltd. Company

Mar 31, 2015

A Method of Accounting

The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except where specified otherwise. GAAP comprises accounting standards notified by the Central Government of India u/s 211(3C) of Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. The accounts have been prepared on Going Concern basis and are consistent with the accounting policies followed in the previous year. Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to Companies Act, 1956 (the Schedule) issued by Ministry of Corporate Affairs. Previous year's figures have been recast /restated, wherever necessary, to conform to the current year's classification. Further, all figures have been rounded off to the nearest rupee.

b Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue is reliably measurable.

Revenue from sale is recognized when all the significant risks and rewards of ownership of the goods have been passed on to the customers, usually on delivery. The value added tax collected on such sales is excluded from the revenue.

Revenue from services, other annual maintenance contracts, is recognized on the basis of percentage completion or after completion of rendering of services, as specified in individual contracts. Revenue from annual maintenance contracts are recognized pro-rata over the period of contract as and when services are rendered. The service tax collected, if any, is excluded from the revenue.

Other operating revenues are recognized after successful completion of the specific project. The service tax collected, if any, is excluded from the revenue.

Dividend income is recognized when the Company's right to receive the dividend is established by the reporting date.

Interest income is recognized on accrual basis. c Inventories

The company has no Inventories hence the question of valuation does not arise.

d Fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment cost, if any. Cost includes all costs incidental to the acquisition, including freight, duties, taxes and all incidental expenses. Apart from Computer and accessories, depreciation has been provided on fixed assets

by adopting written down value method at rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions/deletions during the year is provided on pro-rata basis from/up to the date of such addition/deletion. Assets with addition value less than Rs.5000/- have been completely written off.

e Impairment of asset:

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired, internally or externally. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset, or recoverable amount of cash generating unit to which the asset belongs is less than its carrying amount, 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 a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount and the difference is recognized in the Profit and Loss Account. Based on management opinion there is no impairment in the value of assets in the year under report.

f Foreign currency transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions.

Foreign exchange assets and liabilities are converted at contracted/year end rates as applicable.

Gains/Loss arising due to exchange rate fluctuations on reporting as stated above and/or on actual realization or remittance is transferred to Profit and Loss Account.

g Investments

Investments, classified as Non Current, are stated at cost of acquisition, and include brokerage, fees, and incidental expenses. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

h Employee Benefits

i) Short term employee benefits -

All employee benefits payable within twelve months of rendering the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the employee renders the related services.

ii) Defined contribution plans -

The Company does makes contribution to the Government Provident Fund and Employees State Insurance Scheme and

iii) Defined benefits plans -

At present the Company does not have any defined benefit plan. The leave encashment and terminal benefits are accounted as and when paid. However, Gratuity is provided in the books on accrual basis.

i Income Taxes

Income taxes are accounted for in accordance with Accounting Standard -22 - Accounting for Taxes on Income. Tax expense comprises current tax and deferred tax.

Current tax provision is made based on the tax liability computed after considering tax allowances and exemptions, in accordance with the Income Tax Act, 1961.

The Company recognizes deferred tax (subject to consideration of prudence) based on the tax effect of timing differences, being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of profit and loss using the tax rates and tax laws that have been enacted or subsequently enacted after the balance sheet date.

Deferred tax assets are recognized only if there is reasonable certainty of realization of such assets in future. However, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets.

Deferred tax assets/liabilities are reviewed as on each Balance sheet date and written down/up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

j Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized but disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

k Use of estimates

The presentation of the financial statements in conformity with the generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management's evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.


Mar 31, 2013

A Method of accounting

The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except where specified otherwise. GAAP comprises accounting standards notified by the Central Government of India u/s 211(3C) of Companies Act, 1956 and the relevant provisions of the Companies Act, 1956. The accounts have been prepared on Going Concern basis and are consistent with the accounting policies followed in the previous year. Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to Companies Act, 1956 (the Schedule) issued by Ministry of Corporate Affairs. Previous year''s figures have been recast /restated, wherever necessary, to conform to the current year''s classification. Further, all figures have been rounded off to the nearest rupee.

b Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue is reliably measurable.

Revenue from sale of software and accessories is recognized when all the significant risks and rewards of ownership of the goods have been passed on to the customers, usually on delivery and successful installation of the software and accessories. The value added tax collected on such sales is excluded from the revenue.

Revenue from services, other annual maintenance contracts, is recognized on the basis of percentage completion or after completion of rendering of services, as specified in individual contracts. Revenue from annual maintenance contracts are recognized pro-rata over the period of contract as and when services are rendered. The service tax collected, if any, is excluded from the revenue.

Other operating revenues are recognized after successful completion of the specific project. The service tax collected, if any, is excluded from the revenue.

Dividend income is recognized when the Company''s right to receive the dividend is established by the reporting date.

Interest income is recognized on accrual basis, c Inventories

Inventories of software and accessories are valued at cost or net realizable value, whichever is lower.

d Fixed assets and depreciation

Fixed assets are stated at cost less accumulated depreciation and impairment cost, if any. Cost includes all costs incidental to the acquisition, including freight, duties, taxes and all incidental

expenses. Apart from Computer and accessories, depreciation has been provided on fixed assets by adopting written down value method at rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on Computer and accessories (other than those acquired from Globsyn) has been provided on an accelerated basis according to which the cost of the said assets would be written off over a period of 3 years. Computer and accessories acquired from Globsyn has been written off over a period of 10 years. Depreciation on additions/deletions during the year is provided on pro-rata basis from/up to the date of such addition/deletion.

e Impairment of asset.

The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired, internally or externally. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset, or recoverable amount of cash generating unit to which the asset belongs is less than its carrying amount, 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 a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount and the difference is recognized in the Profit and Loss Account. Based on management opinion there is no impairment in the value of assets in the year under report.

f Foreign currency transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions.

Foreign exchange assets and liabilities are converted at contracted/year end rates as applicable.

Gains/Loss arising due to exchange rate fluctuations on reporting as stated above and/or on actual realization or remittance is transferred to Profit and Loss Account.

g Investments

Investments, classified as Non Current, are stated at cost of acquisition, and include brokerage, fees, and incidental expenses. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. But, no provision has been made in the books for diminution in the value of investment of Sigma Soft Pte Ltd. as the required information for arriving at the amount in question is unavailable and unascertainable.

h Employee Benefits

i. Short term employee benefits-

All employee benefits payable within twelve months of rendering the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc. and the same are recognised in the period in which the employee renders the related services,

ii Defined contribution plans -

The Company makes contribution to the Government Provident Fund and Employees State Insurance Scheme and contributions paid/payable under the scheme is recognised during the period in which the employee renders the related service.

lii Defined benefits plans-

At present the Company does not have any defined benefit plan. The leave encashment and terminal benefits are accounted as and when paid. However, Gratuity is provided in the books on accrual basis, i Income Taxes

Income taxes are accounted for in accordance with Accounting Standard -22 - Accounting for Taxes on Income. Tax expense comprises current tax and deferred tax.

Current tax provision is made based on the tax liability computed after considering tax allowances and exemptions, in accordance with the Income Tax Act, 1961.

The Company recognizes deferred tax (subject to consideration of prudence) based on the tax effect of timing differences, being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of profit and loss using the tax rates and tax laws that have been enacted or subsequently enacted after the balance sheet date.

Deferred tax assets are recognized only if there is reasonable certainty of realization of such assets in future. However, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets.

Deferred tax assets/liabilities are reviewed as at each Balance sheet date and written down/up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

j Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized but disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements, k Use of estimates

The presentation of the financial statements in conformity with the generally accepted accounting principles require the management to make estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.


Mar 31, 2012

The Financial statements have been prepared in accordance with the requirement of Section 209(3)(b) of the Companies Act, 1956.

a Method of accounting

The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except where specified otherwise. GAAP comprises accounting standards notified by the Central Government of India u/s 211(3C) of Companies Act, 1956.

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI to Companies Act, 1956 (the Schedule) issued by Ministry of Corporate Affairs. Previous periods figures have been recast/restated to confirm to the classification required by Revised Schedule VI.

b Fixed assets.

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment cost, if any.

c Depreciation

i. Fixed assets, except Computer and accessories, has been depreciated on a written down value method at rates prescribed in Schedule XIV to the Companies Act, 1956.

ii. Depreciation on Computer and accessories (other than those acquired from Globsyn) has been provided on an accelerated basis according to which the cost of the said assets would be written off over a period of 3 years.

iii. Computer and accessories acquired from Globsyn has been written off over a period of 10 years. d Impairment of assets

The Carrying amounts of assets are reviewed at each Balance Sheet date for any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceed the recoverable amount. The impairment loss recognized in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount. Based on management opinion there is no impairment in the value of assets in the year under report.

e Investments

Investments, classified as Long Term, are stated at cost of acquisition, and include brokerage, fees, and incidental expenses. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. But no provision has been made in the books for diminution in the value of investment of Sigma Soft Pte Ltd. as the amount is unascertainable.

f Retirement Benefits

i. Short term employee benefits -

All employee benefits payable within twelve months of rendering the service are classified as short term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex- gratia, performance pay etc. and the same are recognised in the period in which the employee renders the related services.

ii Defined contribution plans -

The Company makes contribution to the Government Provident Fund and Employees State Insurance Scheme and contributions paid/payable under the scheme is recognised during the period in which the employee renders the related service.

iii Defined benefits plans -

At present the Company does not have any defined benefit plan. The gratuity, leave encashment and terminal benefits are accounted as and when paid. However, Gratuity is provided in the books on accrual basis.

g Foreign Currency Transactions

Income and Expenditure in foreign currency is accounted for at the prevailing exchange rates as on the day of the transaction. Monetary items like receivables/payables in foreign currency are reported at the exchange rate prevailing on the balance sheet date. Gains/Loss arising due to exchange rate fluctuations on reporting as stated above and/or on actual realization or remittance is transferred to Profit and Loss Account.

h Income Taxes:

Income taxes are accounted for in accordance with Accounting Standard (AS-22) "Accounting for Taxes on Income". Tax expense comprises current tax and deferred tax.

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

The Company recognizes deferred tax (subject to consideration of prudence) based on the tax effect of timing differences, being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of profit and loss using the tax rates and tax laws that have enacted or subsequently enacted by the balance sheet date.

i Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized but disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

j Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue is reliably measurable.

Revenue from sale of software and accessories is recognized when all the significant risks and rewards of ownership of the goods have been passed on to the customers, usually on delivery and successful installation of the software and accessories. The value added tax collected on such sales is excluded from the revenue.

Revenue from services, other annual maintenance contracts, is recognized on the basis of percentage completion or after completion of rendering of services, as specified in individual contracts. Revenue from annual maintenance contracts are recognized pro-rata over the period of contract as and when services are rendered. The service tax collected, if any, is excluded from the revenue.

Other operating revenues are recognized after successful completion of the specific project. The service tax collected, if any, is excluded from the revenue.

Dividend income is recognized when the Company's right to receive the dividend is established by the reporting date.

Interest income is recognized on accrual basis except in respect of term deposits with banks, where it is recognized on receipt basis.


Mar 31, 2011

The Financial statements have been prepared in accordance with the requirement of Section 209(3) (b) of the Companies Act, 1956.

1.1. Income/Expenditure

The Company recognises its revenue and expenses on accrual basis.

1.2. Fixed assets.

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

1.3. Depreciation

i. Fixed assets, except Computer Hardware, depreciation has been provided on a written down value method at rates prescribed in Schedule XIV to the Companies Act, 1956.

ii. Depreciation on Computer & accessories (other than those acquired from Globsyn) has been provided on an accelerated basis according to which the cost of Computer hardware would be written off over a period of 3 years.

iii. Computer Hardware acquired from Globsyn has been written off over a period of 10 years.

iv. As per Management Policy the cost of the ITMS Software Design would be amortized over 50 copies. Since there were no ITMS product sales during the financial year, depreciation has not been provided for in the books.

1.4. Investments

Investments classified as Long Term, are stated at cost of acquisition, and includes brokerage, fees, and incidental expenses. No provision has been made in the books for diminution in the value of investment of Sigma Soft Pte Ltd. as the amount is unascertainable.

1.5. Retirement Benefits

The Company contributes to provident fund maintained under the Employees' Provident Fund and ESIC Scheme run by the Central Government. The Company recognizes its obligation towards gratuity payable to employees on actuarial valuation.

1.6. Foreign Currency Transactions

Income and Expenditure in foreign currency is accounted for at the prevailing exchange rates as on the day of the transaction. Monetary items like receivables/payables in foreign currency are reported at the exchange rate prevailing on the Balance Sheet date. Gains/Loss arising due to exchange rate fluctuations on reporting as stated above and/or on actual realisation or remittance is transferred to Profit and Loss Account.

1.7. Income Taxes:

Income Taxes are accounted for in accordance with Accounting Standard (AS-22) "Accounting for Taxes on Income". Tax expense comprises current tax and deferred tax. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. The Company recognizes deferred tax (subject to consideration of prudence) based on the tax effect of timing differences, being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of profit and loss using the tax rates and tax laws that have enacted or subsequently enacted by the balance sheet date.

1.8. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized but disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

The Financial statements have been prepared in accordance with the requirement of Section 209(3) (b) of the Companies Act, 1956.

1.1. Income/Expenditure

The Company recognises its revenue and expenses on accrual basis.

1.2. Fixed assets.

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

1.3. Depreciation

i. Depreciation has been provided on a written down value method at rates prescribed in Schedule XIV to the Companies Act, 1956 on Fixed Assets except Software Design and Computer Hardware.

ii. Depreciation on Computer & accessories (other than those acquired from Globsyn) has been provided on an accelerated basis according to which the cost of Computer hardware would be written off over a period of 3 years.

iii. Computer Hardware acquired from Globsyn has been written off over a period of 10 years.

iv. As per Management Policy the cost of the ITMS Software Design would be amortized over 50 copies. Since there were no ITMS product sales during the financial year, depreciation has not been provided for in the books.

1.4. Investments

Investments classified as Long Term, are stated at cost of acquisition, and include brokerage, fees, and incidental expenses. No provision has been made in the books for diminution in the value of investment of Sigma Soft Pte Ltd. as the amount is unascertainable.

1.5. Retirement Benefits

The Company contributes to provident fund maintained under the Employees Provident Fund and ESIC Scheme run by the Central Government. The Company recognizes its obligation towards gratuity payable to employees on actuarial valuation.

1.6. Foreign Currency Transactions

Income and Expenditure in foreign currency is accounted for at the prevailing exchange rates as on the day of the transaction. Monetary items like receivables/payables in foreign currency are reported at the exchange rate prevailing on the balance sheet date. Gains/Loss arising due to exchange rate fluctuations on reporting as stated above and/or on actual realisation or remittance is transferred to Profit and Loss Account.

1.7. Income Taxes:

Income taxes are accounted for in accordance with Accounting Standard (AS-22) "Accounting for Taxes on Income". Tax expense comprises current tax and deferred tax.

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. The Company recognizes deferred tax (subject to consideration of prudence)based on the tax effect of timing differences, being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of profit and loss using the tax rates and tax laws that have enacted or subsequently enacted by the balance sheet date.

1.8. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities, if any, are not recognized but disclosed by way of notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

 
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