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.
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.