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Accounting Policies of SMS Techsoft (India) Ltd. Company

Mar 31, 2014

Basis of Preparation of Financial Statements The Financial Statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared theses Financial Statement to comply in all material aspects with the notified Accounting Standards by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

b) The Company follows mercantile system of accounting, unless stated otherwise.

c) The Accounts are prepared on the historical basis and on the Accounting Principles of on Going Concern.

d) Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted Accounting Principles. In applying Accounting Policies, consideration has been given to Prudence, Substance over form and Materiality.

(e) Expenses and Income considered payable and receivable respectively are generally accounted for on Accrual Basis.

(2) Change in Accounting Policy

Presentation and Disclosure of the Financial Statements during the year ended on 31st March, 2014 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its Financial Statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements. However it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(3) Use of Estimates

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognizes in the period in which the results are known / materialized.

(4) Fixed Assets, Method of Depreciation, Amortization and Impairment

(a) The Gross Block of Assets is shown at the Cost, which includes taxes, duties and other identifiable, direct expenses which are attributable to acquisition of fixed assets and other direct expenses and overheads incurred up to date on which such assets were first put to use less accumulated depreciation and impairment loss.

(b) Expenditure incurred during Construction / Erection period;'' is included under

Capital Work-in-Progress and allocated to the respective Fixed Assets on Completion of Construction / Erection. -

(c) Depreciation has been provided in the books on WDV method basis at the rate and

the method as specified under schedule XIV to the Companies Act, 1956.

The company evaluates impairment of losses on the Fixed Assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such assets are considered to be impaired, the impairment loss is then recognized for the amount by Which the carrying amount of the assets exceeds * recoverable amount, which is the higher of an assets net selling price and value in use.

Employee Benefits .

Contribution to the Provident Fund, Pension Fund, Other Funds and Leave encashment paid during the year are being charged to Profit & Loss Account.

Investments

Long Term Investments are stated at Cost Provision for diminution in the value of Long Term Investments is made only if such a decline is other than temporary in the opinion of the Management.

Accounting for Taxes on Income

Income Tax expenses comprises of Current Tax, Deferred Tax charge or Credit. Provision for Current Tax is made with reference to Taxable Income Computed for the Accounting period, for which the Financial Statements are prepared and applying the tax rates as applicable.

Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources.

Revenue Recognition

Revenue recognized when it is earned and no significant uncertainty exists as to its realization or collection and is recorded on gross value including CENVAT and VAT.

Revenue from Job work income is recognized on delivery of the products, when all significant contractual obligations have been satisfied, Other income is accounted on accrual basis.

Earnings per Share

The company reports Basic and Diluted Earnings per Share (EPS) in accordance with Accounting Standards - 20 on Earnings per Share,

Basic Earnings per share are calculated, by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period, except where the results are anti-dilutive.


Mar 31, 2013

(1) Basis of preparation of Financial Statements

(a) The Financial Statements of the company have been prepared in accordance with Generally Accepted According principles in India (Indian GAAP)The company has prepared theses Financial statements to comply in all material aspects with the notified Accounting standards by comapnies (Accounting standards ) Rules 2006 (as amended) and the relevant provisions of the companies Act,1956.

(b) The company follows mercantile system of accounting unless stated otherwise.

(c) The Accounts are prepared on the historical basis and on the ACCORDING Principles of ongoing concern.

(d) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted Accounting principle in applying Accounting policies consideration has been given to prudence substance over form and Materiality.

(e) Expenses and income considered payable and receivable respectively are generally accounted for on Accrual Basis.

(2) Change in Accounting policy

Presentation and Disclosure of the Financial statements during the year ended on 31st March 2013 the revised schedule VI notified under the companies ACt,1956 has become applicable to the company for preparation and presentation of its Financial statemnets The adoption of revised schedule VI does not impact recognition and measurement principle followed for preparation of Financial statements However it has signification impact on presentation and disclosures made in the financial statements The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(3) Use of Estimates

The preparation of Financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liability as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period Difference between the actual result and estimates are recognizes in the period in which the results are known/materialized.

(4) Fixed Assets Method of Depreciation Amortization and Impairment

(a) The Gross Block of Assets is shown at the cost which includes taxes duties and other identifiable direct expenses which are attributable to acquisition of fixed assets and other direct expenses and overheads incurred up to date which such assets were first put to use less accumulated depreciation and impairment loss.

(b) Expenditure incurred during construction/Erection period is included under capital Work-in-progress and allocated to the respective Fixed Assets on completion of construction/Erection.

(c) Depreciation has been provided in the books on WDV method basis at the rate and the method as specified under schedule XIV to the companies Act,1956.

(d) The company evaluates impairment of losses on the Fixed Assets whenever emends or changes in circumstances indicate that their carrying amounts may not be recoverable if such assets are considered to be impaired the impairment loss is then recognized for the amount by which the carrying amount of the assets exceeds recoverable amount which is the higher of an assets net selling price and value in use.

(6) Employee Benefits

Contribution to the provident Fund pension Fund other funds and leave encashment paid during the year are being charged to profit & loss Account.

(7) Investments

Long Term Investments are abated at cost provision for diminution in the value of long Term investments is made only if such a decline is other than temporary in the opinion of the Management.

(8) Accounting for Taxes on Income

Income Tax expenses comprises of current Tax Deferred Tax Change or credit provision for curried Tax is made with reference to Taxable income computed for the Accounting period for which the Financial statements are prepared and applying the tax rates as applicable.

(9) Provision contingent liabilities and contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources.

(10) Revenue Recognition

(a) Revenue recognized when it is earned and no significant uncertainty exists as to its realization or collection and is recorded on gross value including CENVAT and VAT.

(b) Revenue from job work income is recognized on delivery of the products when all significant contractual obligations have been satisfied.

(c) Other income is accounted on accrual basis.

(11) The company reports basic and Diluted Earnings per share (EPS) in accordance with Accounting standards -20 on Earnings per share.

Basic Earnings per share are calculated by divided the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year, Diluted Earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period expect where the results are anti-dilutive.

The company is primarily engaged in a single segment business or providing information Technology related service..

(13) Leases

Land subject to operating leases is including under fixed Assets Rent (Lease) payment is recognized in the profit & loss account on payment basis over lease term.

(14) CENVAT Treatment

(a) Revenue from operations and cost of Materials consumed are inclusive of Excise Duty Levied The excise duty paid net of CENVAT Claimed is accounted separately.

(b) Unutilized balance of CENVAT claimable at the yearend has been accounted and disclosed separately under the head short Term loans and Advances and the CENVAT Component at the yearend inventories has been adjusted accordingly.


Mar 31, 2012

(1) Basis of Preparation of Financial Statements

(a) The Financial Statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP). The Company has prepared theses Financial Statement to comply in all material aspects with the notified Accounting Standards by Companies (Accounting Standards) Rules; 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

(b) The Company follows mercantile system of accounting, unless stated otherwise.

(c) The Accounts are prepared on the historical basis and on the Accounting Principles of on Going Concern.

(d) Accounting Policies not specifically referred to otherwise are consistent and in consonance with generally accepted Accounting Principles. In applying Accounting Policies, consideration has been given to Prudence, Substance over form and Materiality.

(e) Expenses and Income considered payable and receivable respectively are generally accounted for on Accrual Basis.

(2) Change in Accounting Policy

Presentation and Disclosure of the Financial Statements during the year ended on 31st March, 2012 the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company, for preparation and presentation of its Financial Statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements. However it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

(3) Use of Estimates

The preparation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognizes in the period in which the results are known / materialized.

(4) Fixed Assets, Method of Depreciation, Amortization and Impairment

(a) The Gross Block of Assets is shown at the Cost, which includes taxes, duties and other identifiable, direct expenses which are attributable to acquisition of fixed assets and other direct expenses and overheads incurred up to date on which such assets were first put to use less accumulated depreciation and impairment loss.

(b) Expenditure incurred during Construction / Erection period is included under Capital Work-in-Progress and allocated to the respective Fixed Assets on Completion of Construction / Erection.

(c) Depreciation has been provided in the books on WDV method basis at the rate and the method as specified under schedule XIV to the Companies Act, 1956.

(d) The company evaluates impairment of losses on the Fixed Assets whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such assets are considered to be impaired, the impairment loss is then recognized for the amount by which the carrying amount of the assets exceeds recoverable amount, which is the higher of an assets net selling price and value in use.

(6) Employee Benefits

Contribution to the Provident Fund, Pension Fund, Other Funds and Leave encashment paid during the year are being charged to Profit & Loss Account.

(7) Investments

Long Term Investments are stated at Cost. Provision for diminution in the value of Long Term Investments is made only if such a decline is other than temporary in the opinion of the Management.

(8) Accounting for Taxes on Income

Income Tax expenses comprises of Current Tax, Deferred Tax Charge or Credit. Provision for Current Tax is made with reference to Taxable Income Computed for the Accounting period, for which the Financial Statements are prepared and applying the tax rates as applicable.

(9) Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources.

(10) Revenue Recognition

(a) Revenue recognized when it is earned and no significant uncertainty exists as to its realization or collection and is recorded on gross value including CENVAT and VAT.

(b) Revenue from Job work income is recognized on delivery of the products, when all significant contractual obligations have been satisfied.

(c) Other income is accounted on accrual basis.

(11) Earnings per Share

The company reports Basic and Diluted Earnings per Share (EPS) in accordance with Accounting Standards - 20 on Earnings per Share.

Basic Earnings per share are calculated, by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted Earnings per share reflect the potential dilution that could occur if contracts to issue equity shares were exercised or converted during the period. Diluted earnings per equity share are computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period, except where the results are anti-dilutive.

(12) Segment Information

The company is' primarily engaged in a single segment business of providing Information Technology related services..

(13) Leases

Land subject to operating leases is included under Fixed Assets. Rent (Lease) payment is recognized in the profit & loss account on a payment basis over the lease term.

(14) CENVAT Treatment

(a) Revenue from operations and Cost of Materials Consumed are inclusive of Excise Duty Levied. The excise duty paid net of CENVAT claimed is accounted separately.

(b) Unutilized balance of CENVAT claimable at the yearend has been accounted and disclosed separately under the head "Short Term Loans and Advances" and the CENVAT 'component at the yearend inventories has been adjusted accordingly.


Mar 31, 2010

BASIS OF ACCOUNTING

The financial statements are prepared on the basis of historical cost convention and on accrual basis.

FIXED ASSTES AND DEPRECIATION

Fixed Assets are stated at cost and includes all the expenditure of Capital Nature.

Depreciation has been provided on SLM in accordance with the rate specified under Schedule XIV of the Companies Act. 1956. Depreciation on additions during the year is provided on pro-rata basis with reference to the date of installation.

RETIREMENT BENEFITS

Provident Fund & Gratuity is not applicable to the company.


Mar 31, 2009

BASIS OF ACCOUNTING

The financial statements are prepared under historical cost convention and on accrual basis.

FIXED ASSETS AND DEPREDCIATION

Fixed Assets are stated at cost and includes all expenditure of Capital nature.

Depreciation had been provided on straight Line Method in accordance with the rate specified under Schedule XIV of the Companies Act 1956. Depreciation on additions during the year is provided on pro-rate basis with reference to the date of installation. It respect of assets costing up to Rs.5. 000 each, the policy of the company is to charge 100% depreciation in the year in which such assets are installed or put to use.

However, no depreciation is provided for the year under consideration as there is no business during the year.

RETIREMENT BENEFITS

(iv) 1. Provident Fund is not applicable to the company. (iv) 2. At present gratuity is not applicable to the company.

 
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