Mar 31, 2010
1. Basis of Accounting:
The Financial Statements are prepared under historical cost convention
in accordance with generally accepted accounting principles in india
and provisions of Companies Act, 1956.
2. Fixed Assets:
Fixed Assets are stated cost less accumulated depreciation, cost
comprises purchases price, including import duties and other
non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for the intended use.
3. Depreciation:
Depreciation on Fixed Assets is provided under Straight line Method
(SLM) at the rates specified in Schedule XIV of the Companies Act,
1956.
4. Revenue Recognition:
The income from the some is recognised as and when invoices are made
and raised on the client.
5. Preliinary Expenditure:
Expenditure incurred for the process of merging is amortised over the
period of 5 years from the year in which merger has taken place.
6. Deferred Tax:
Deferred tax is accounted for by computing the tax effect of timing
differences, which arise during the period and reverse in subsequent
periods.
7. Cash Flow Statement:
Cash Flows are reported using Indirect Method in accordance with AS-3
namely "Cash Flow Statement" issued by ICAI.
Mar 31, 2009
1) Basis of preparation of financial Statements:
The Financial Statements have been prepared under Historical Cost
Convention in accordance with generally accepted accounting principles
in India and the provisions of Companies Act, 1956.
2) Fixed Assets:
Fixed Assets are stated cost less accumulated depreciation. Cost
comprises purchase price, including import duties and other
non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for its intended use.
3) Depreciation:
Depreciation on Fixed Assets is provided under Written Down Value (WDV)
at the rates specified in Schedule XIV of the Companies Act, 1956. The
company has changed its policy of providing the depreciation from WDV
method to SLM (Straight Line Method). The effects of change in
Accounting Policy for earlier years is depicted below;
4) Revenue recognition:
Revenue from sale of computer hardware is recognized on dispatch of the
products from the company for delivery to the customers. Revenue from
product sale are shown net of Sales Tax separately charged and
discounts as applicable.
Revenue from IT Services consists of earnings from services performed
on a Ãtime and materialà basis and fixed price contracts. The related
revenue is recognized as and when the services are performed and
delivered.
Revenue from Annual Maintenance Contracts (AMCsÃ) is recognized on
accrual basis as per the Contracts /Agreements entered with the
Clients.
Other income is recognized on accrual basis.
5) Foreign Currency transactions:
a. Foreign currency transactions are recognized in the books at the
exchange rates prevailing at the date of transaction.
b. In the case of Current assets /Liabilities the difference (gain or
loss) between the actual payment and the amount recognized in the books
is accounted as Exchange Gain or Loss. Foreign currency liability and
receivables are restated at the rates of exchange prevailing on the
date of Balance sheet and the difference on account of exchange
variation is adjusted to profit and loss account. Exchange differences
in respect of liabilities incurred to acquire fixed assets from outside
India are adjusted to the carrying amount of such fixed assets.
6) Retirement Benefits:
Contributions to Provident Fund charged as incurred on accrual basis.
The liability for retirement benefits of employees, if arise, will be
accounted for on cash basis.
7) Deferred revenue expenditure:
The deferred revenue expenditure is written off in compliance of
Accounting Standard.
8) Deferred tax:
Deferred tax is accounted for by computing the tax effect of timing
differences, which arise during the period and reverse in subsequent
periods.
Fringe Benefit Tax (FBT) payable underthe provisions of section 115WC
of the Income Tax Act, 1961 is in accordance with the Guidance Note on
Accounting for Fringe Benefit Tax issued by ICAI regarded as an
additional income tax and considered in determination of profits for
the year.
9) Cash flow Statement:
Cash flows are reported using Indirect Method in accordance with AS-3,
namely Cash Flow Statement issued by ICAI and as per the Clause 32 of
the Listing Agreement where by net profit before tax is adjusted for
the effects of the transactions of a non- cash nature and any deferrals
or accruals of past or future cash receipts or payments. The cash
flows from regular business operations, investment activities and
financing activities are classified under the cash flow.
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