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Accounting Policies of Seshachal Technologies Ltd. Company

Mar 31, 2013

1) Basis of preparation of financial statements:

The accompanying financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on accrual basis. Generally Accepted Accounting Principals comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2) Revenue recognition:

i. Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis, including provisions/adjustments for committed obligations and amounts determined as payable or receivable during the year.

ii. Revenue in respect of the projects of long term duration in implementation is recognized on the basis of stage wise completion of the respective project.

3) Expenditure:

Expenses are accounted on the accrual basis and provision is made for all known losses and liabilities.

4) Fixed Assets:

Fixed assets are stated at Cost, less accumulated Depreciation. Direct Costs are capitalized under the respective fixed assets. Direct cost includes freight, duties, taxes, insurance and any attributable cost of bringing the asset to its working conditions for its intended use.

5) Depreciation:

i. Depreciation on fixed assets is provided on the basis of Straight Line Method, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

ii. Depreciation on assets added or disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable

iii. All individual cost assets acquired for less than Rs.5,000 are entirely depreciated in the year of acquisition.

6) Software product development:

The Company has three software products in the area of Health Care, Textile and School projects. No development costs were incurred during the year.

7) Taxation:

The provision for Taxation has not been accounted as there are no taxable profits. Deferred tax liability: The Company has brought forward losses from the previous years. The Company is of the opinion that it is unlikely that it will be able to realize the benefit of such forward losses. Consequently it has not provided for deferred tax asset/liability for the year.

8) Foreign currency transactions:

There were no foreign currency transactions during the year.

9) Related Party Transactions: Nil

10) Segment Reporting:

The Company is in the business of carrying software business, hence total business of the company is treated as one single segment.

11) Employee Retirement benefits:

Company has not provided for any employee retirement benefits as none of the employee is eligible for such benefits.


Mar 31, 2012

1) Basis of preparation of financial statements:

The accompanying financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on accrual basis. Generally Accepted Accounting Principals comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2) Revenue recognition:

i. Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis, including provisions/adjustments for committed obligations and amounts determined as payable or receivable during the year.

ii. Revenue in respect of the projects of long term duration in implementation is recognized on the basis of stage wise completion of the respective project.

3) Expenditure:

Expenses are accounted on the accrual basis and provision is made for all known losses and liabilities.

4) Fixed Assets:

Fixed assets are stated at Cost, less accumulated Depreciation. Direct Costs are capitalized under the respective fixed assets. Direct cost includes freight, duties, taxes, insurance and any attributable cost of bringing the asset to its working conditions for its intended use.

5) Depreciation:

i. Depreciation on fixed assets is provided on the basis of Straight Line Method, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

ii. Depreciation on assets added or disposed off during the year is provided on pro-rata basis from the date of addition or up to the date of disposal, as applicable

iii. All individual cost assets acquired for less than Rs.5,000 are entirely depreciated in the year of acquisition.

6) Software product development:

The Company has three software products in the area of Health Care, Textile and School projects. No development costs were incurred during the year.

7) Taxation:

The provision for Taxation has not been accounted as there are no taxable profits.

Deferred tax liability: The Company has brought forward losses from the previous years. The Company is of the opinion that it is unlikely that it will be able to realize the benefit of such forward losses. Consequently it has not provided for deferred tax asset/liability for the year.

SESHACHAL TECHNOLOGIES LIMITED

8) Foreign currency transactions:

There were no foreign currency transactions during the year.

9) Related Party Transactions : Nil

10) Segment Reporting:

The Company is in the business of carrying software business, hence total business of the company is treated as one single segment.

11) Employee Retirement benefits:

Company has not provided for any employee retirement benefits as none of the employee is eligible for such benefits.


Mar 31, 2010

1. Basis for Preparation of Financial Statements:

The Financial Statements have been prepared on the basis of going concern, under the historical cost convention on the accrual basis, to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956.

2. Revenue Recognition:

Revenue from software development is recognized based on software developed and billed to clients as per the terms of specific contracts.

3. Expenditure:

Expenses are accounted on the accrual basis and provision is made for all known losses and liabilities.

4. Fixed Assets:

Fixed Assets are stated at cost of acquisition. The Company has capitalized advances for Land & Land development for future activities of the Company. The same are carried forward for the year.

5. Depreciation:

Depreciation on Fixed Assets is provided under straight line method as per schedule XIV of the Companies Act, 1956 on pro-rata basis. No depreciation was provided on Software Development Products as the assets were capitalized on the last date.

6. Since the share warrant issue not completed, balances in share warrant amount transferred to capital reserve.

7. During the year the Company has invested in M/s Indo Fuji, Europe for Rs.5.00 Lakhs.

8. Software Product Development:

The Company has three Software Products in the areas of Health Care, Textile and School Projects. No Development Costs were incurred during the year.

9. Provision for Taxation:

Income Tax Liability: Provision for taxation is not made for the current year on account of accumulated losses.

Deferred Tax: The Company has brought forward losses from the previous years. The Company is of the opinion that it is unlikely that it will be able to realise the benefit of such forward losses. Consequently it has not provided for deferred tax asset/liability for the year.

10. Foreign Currency Transactions:

An Investment Advance of Rs. 500,000/- as shares in M/s. Indo Fuji Europe, Share allotment is awaited.

11. Related party transactions : NIL

12. Segment Reporting:

The Companys operations falls within a single primary business segment viz., Software Development and single geographical segment viz., India. Hence the disclosure requirements of Accounting Standard 11, Segment Reporting issued by Institute of Chartered Accountants of India are not applicable.

13. Employee Retirement Benefits:

Company has not provided for any employee retirement benefits as none of the employee eligible for such benefits.

 
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