Mar 31, 2018
SIGNIFICANT ACCOUNTING POLICIES:
a) Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the Generally Accepted Accounting Principles (âGAAPâ) in compliance with the provisions of the Companies Act, 2013 (the âActâ) including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. Further, the guidance notes/ announcements issued by the Institute of Chartered Accountants of India are also considered, wherever applicable.
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Act. The Cash Flow Statement has been prepared and presented as per the requirements of the Accounting Standard (AS) 3 Cash Flow Statements. The disclosure requirements with respect to items in the Balance Sheet and the Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.
b) Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Although these estimates are based upon managementâs best knowledge of current events and actions, actual results could differ from these estimates.
c) Fixed assets and depreciation / amortisation:
Property, Plant and Equipment
Property, Plant and Equipment are stated at cost less accumulated depreciation. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.
Depreciation on Property, Plant and Equipment is provided the basis of useful life of fixed assets specified by Schedule II to the Companies Act, 2013.
Leasehold improvements are amortised over the lease period.
Intangible assets
Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. The capitalised cost includes license fees and cost of implementation / system integration services.
Software being amortised on a straight line basis over its estimated useful life or maximum 5 years, whichever is shorter.
d) Investments:
i) Non-current investments are valued at cost. Provision is made for diminution in the values when the decline is other than temporary.
ii) Current investments are valued at lower of cost or fair value determined on an individual investment basis.
e) Revenue recognition:
Revenue from service charges, fees and commission is recognised when the contract has been completed.
Investment income is recognised on the date of sale of securities.
Interest income is recognised on accrual basis.
Dividend income from investments is recognised when the shareholdersâ rights to receive payment have been established.
Rent income is recognised on accrual basis.
f) Transaction in foreign currencies:
Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the balance sheet date are translated at the rates of exchange prevailing at the date of the balance sheet. Gains and losses arising on account of differences in foreign exchange rates on settlement/translation of monetary assets and liabilities are recognized in the statement of profit and loss. Non-monetary foreign currency items are carried at cost.
g) Retirement benefits:
i Defined contribution plans
The Company contributes to Employeeâs Provident Fund (a defined contribution plan) towards post employment benefits, which is administered by the respective Government authorities and the Company has no further obligation beyond making its contribution.
ii. Defined benefit plans
The Company has a defined benefit plan namely gratuity for all its employees. The liability for the defined benefit plan of gratuity is determined on the basis of an actuarial valuation by an independent actuary at the year end, which is calculated using projected unit credit method.
Actuarial gains and losses are recognized immediately in the statement of profit and loss.
iii. Employee leave entitlement
The employees of the Company are entitled to leave as per the leave policy of the Company. The liability in respect of unutilized leave balances is provided as at the year end and charged to the statement of profit and loss.
h) Accounting for taxes on income:
i) Provision for income tax is made on the basis of the estimated taxable income for the accounting year in accordance with the Income-tax Act, 1961.
ii) The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognised to the extent there is a virtual / reasonable certainty that these would be realised in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
I Lease:
i) As a Lessee:
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognised as an expense in the statement of profit and loss on straight-line basis over the lease term.
ii) As a Lessor:
Assets subject to operating lease are included in fixed assets. Lease income is recognised in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognised as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognised immediately in the statement of profit and loss.
j) Borrowing costs:
Borrowing costs attributable to the acquisition and construction of qualifying assets upto the date of such acquisition or construction are capitalised as part of the cost of respective assets. Other borrowing costs are charged to statement of profit and loss in the period in which they are incurred.
k) Impairment of assets:
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset 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 statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.
l) Provisions and contingent liabilities:
The Company creates a provision when there is a present obligation as result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
m) Earnings per share:
The basic earnings per share (âEPSâ) is computed by dividing the net profit/ (loss) after tax for the year available for the equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year available for equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2016
NOTE- 1 I
SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the Generally Accepted Accounting Principles (''GAAP'') in compliance with the provisions of the Companies Act, 2013 (the ''Act'') including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. Further, the guidance notes/ announcements issued by the Institute of Chartered Accountants of India are also considered, wherever applicable.
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Act. The Cash Flow Statement has been prepared and presented as per the requirements of the Accounting Standard (AS) 3 Cash Flow Statements. The disclosure requirements with respect to items in the Balance Sheet and the Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards.
b) Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.
c) Fixed assets
i) Tangible assets
Tangible assets are stated at cost less accumulated depreciation. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.
ii) Intangible assets
Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. The capitalized cost includes license fees and cost of implementation / system integration services.
d) Depreciation / amortization:
i) Tangible assets
Depreciation on tangible fixed assets is provided on straight-line method on pro-rata basis in the manner and at the rates specified in Schedule XIV to the Companies Act, 1956 up to 31 March, 2014. From 1 April, 2014, the Company has provided depreciation on the basis of useful life of fixed assets specified by Schedule II to the Companies Act, 2013.
Leasehold improvements are amortized over the lease period.
ii) Intangible assets
Software is amortized on a straight line basis over its estimated useful life of 3 years.
e) Investments:
i) Non-current investments are valued at cost. Provision is made for diminution in the values when the decline is other than temporary.
ii) Current investments are valued at lower of cost or fair value determined on an individual investment basis.
f) Revenue recognition:
Revenue from service charges, fees and commission is recognized when the contract has been completed.
Investment income is recognized on the date of sale of securities.
Interest income is recognized on accrual basis.
Dividend income from investments is recognized when the shareholders'' rights to receive payment have been established.
Rent income is recognized on accrual basis.
g) Transaction in foreign currencies:
Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the balance sheet date are translated at the rates of exchange prevailing at the date of the balance sheet. Gains and losses arising on account of differences in foreign exchange rates on settlement/translation of monetary assets and liabilities are recognized in the statement of profit and loss. Non-monetary foreign currency items are carried at cost.
h) Retirement benefits:
i. Defined contribution plans
The Company contributes to Employee''s Provident Fund (a defined contribution plan) towards post employment benefits, which is administered by the respective Government authorities and the Company has no further obligation beyond making its contribution.
ii. Defined benefit plans
The Company has a defined benefit plan namely gratuity for all its employees. The liability for the defined benefit plan of gratuity is determined on the basis of an actuarial valuation by an independent actuary at the year end, which is calculated using projected unit credit method.
Actuarial gains and losses are recognized immediately in the statement of profit and loss.
iii. Employee leave entitlement
The employees of the Company are entitled to leave as per the leave policy of the Company. The liability in respect of unutilized leave balances is provided as at the year end and charged to the statement of profit and loss. i) Accounting for taxes on income:
i) Provision for income tax is made on the basis of the estimated taxable income for the accounting year in accordance with the Income-tax Act, 1961.
ii) The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is a virtual / reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.
j) Lease:
i) As a Lessee:
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on straight-line basis over the lease term.
ii) As a Lessor:
Assets subject to operating lease are included in fixed assets. Lease income is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss. k) Borrowing costs:
Borrowing costs attributable to the acquisition and construction of qualifying assets up to the date of such acquisition or construction are capitalized as part of the cost of respective assets. Other borrowing costs are charged to statement of profit and loss in the period in which they are incurred.
l) Impairment of assets:
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset 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 statement of profit and loss. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. m) Provisions and contingent liabilities:
The Company creates a provision when there is a present obligation as result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, requires an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. n) Earnings per share:
The basic earnings per share (âEPSâ) is computed by dividing the net profit/ (loss) after tax for the year available for the equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year available for equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2013
A) Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with applicable
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules, 2006 notified by the Central Government of India, to the extent
applicable and in accordance with the relevant provisions of the
Companies Act, 1956.
b) Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Although these estimates are based upon
management''s best knowledge of current events and actions, actual
results could differfrom these estimates.
c) Fixed assets:
Tangible assets
Tangible assets are stated at cost less accumulated depreciation. Cost
includes original cost of acquisition, including incidental expenses
related to such acquisition and installation.
Intangible assets
Intangible assets are recognized only if it is probable that the future
economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. The
capitalised cost includes license fees and cost of implementation
/system integration services.
d) Depreciation/amortisation:
Tangible assets
Depreciation on tangible fixed assets has been provided on
straight-line method on pro-rata basis in the manner and at the rates
specified in Schedule XIV to the Companies Act, 1956.
Assets individually costing Rs 5,000 or less are fully depreciated in
the year purchase.
Leasehold improvements are amortised over the lease period.
Intangible assets
Software is amortised over a period of 3 years.
e) Investments:
i) Long-term investments are valued at cost. Provision is made for
diminution in the values when the decline is other than temporary.
ii) Current investments are valued at lower of cost or fair value
determined on an individual investment basis.
f) Revenue recognition:
Revenue from service charges, fees and commission is recognised when
the contract has been completed.
Investment income is recognised on the date of sale of securities.
Interest income is recognised on accrual basis.
Dividend income from investments is recognised when the shareholders''
rights to receive payment have been established.
ent income is recognised on accrual basis.
g) Transaction in foreign currencies:
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the balance sheet date are translated at the rates of
exchange prevailing at the date of the balance sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement/translation of monetary assets and liabilities are
recognized in the statement of profit and loss. Non-monetary foreign
currency items are carried at cost.
h) Retirement benefits:
i) Defined contribution plans
The Company contributes to Employee''s Provident Fund (a defined
contribution plan) towards post employment benefits, which is
administered by the respective Government authorities and the Company
has no further obligation beyond making its contribution.
ii) Defined benefit plans
The Company has a defined benefit plan namely gratuity for all its
employees. The liability for the defined benefit plan of gratuity is
determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the statement
of profit and loss.
iii) Employee leave entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilized leave
balances is provided as at the year end and charged to the statement of
profit and loss.
i) Accounting for taxes on income:
i) Provision for income tax is made on the basis of the estimated
taxable income for the accounting year in accordance with the
Income-tax Act, 1961.
ii) The deferred tax for timing differences between the book profits
and tax profits for the year is accounted for using the tax rates and
laws that have been enacted or substantively enacted as of the balance
sheet date. Deferred tax assets arising from timing differences are
recognised to the extent there is a virtual / reasonable certainty that
these would be realised in future and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
j) Lease:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the statement of profit and loss on straight-line basis overthe
lease term.
k) Borrowing costs:
Borrowing costs attributable to the acquisition and construction of
qualifying assets upto the date of such acquisition or construction are
capitalised as part of the cost of respective assets. Other borrowing
costs are charged to statement of profit and loss in the period in
which they are incurred.
I) Impairment of assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the management estimates the recoverable amount of the asset.
If such recoverable amount of the asset 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
statement of profit and loss. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated
historical cost.
m) Provisions and contingent liabilities:
The Company creates a provision when there is a present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources.
Where there is a possible obligation or a present obligation in respect
of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.
n) Earnings per share:
The basic earnings per share ("EPS") is computed by dividing the net
profit/(loss) after tax for the year available for the equity
shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating diluted
earnings per share, net profit/(loss) after tax for the year available
for equity shareholders and the weighted average number of shares
outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2012
A) Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with applicable
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules, 2006 notified by the Central Government of India, to the extent
applicable and in accordance with the relevant provisions of the
Companies Act, 1956.
b) Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates.
c) Fixed assets:
Tangible assets
Tangible assets are stated at cost less accumulated depreciation. Cost
includes original cost of acquisition, including incidental expenses
related to such acquisition and installation.
Intangible assets
Intangible assets are recognized only if it is probable that the future
economic benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured reliably. The
capitalised cost includes license fes and cost of implementation /
system integration services.
d) Depreciation / amortisation:
Tangible assets
Depreciation on tangible fixed assets has been provided on
straight-line method on pro-rata basis in the manner and at the rates
specified in Schedule XIV to the Companies Act, 1956.
Leasehold improvements are amortised over the lease period.
Intangible assets
Software is amortised over a period of 3 yeav
e) Investments:
i) Long-term investments are valued at cost. Provision is made for
diminution in the values when the decline is other than temporary.
ii) Current investments are valued at lower of cost or market value
determined on an individual investment basis.
f) Revenue recognition:
Revenue from service charges, fees and commission is recognised when
the contract has been completed.
Investment income is recognised on the date of sale of securities.
Interest income is recognised on accrual basis.
Dividend income from investments is recognised when the shareholders'
rights to receive payment have been established. Rent income is
recognised on accrual basis.
g) Transaction in foreign currencies:
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement / translation of monetary assets and liabilities are
recognized in the statement of profit and loss. Non-monetary foreign
currency items are carried at cost.
h) Retirement benefits:
i. Defined contribution plans
The Company contributes to Employees' Provident Fund (a defined
contribution plan) towards post employment benefits, which is
administered by the respective Government authorities and the Company
has no further obligation beyond making its contribution.
ii. Defined benefit plans
The Company has a defined benefit plan namely gratuity for all its
employees. The liability for the defined benefit plan of gratuity is
determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the statement
of profit and loss.
iii. Employee leave entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilized leave
balances is provided as at the year end and charged to the statement of
profit and loss.
i) Accounting for taxes on income:
i) Provision for income tax is made on the basis of the estimated
taxable income for the accounting year in accordance with the
Income-tax Act, 1961.
ii) The deferred tax for timing differences between the book profits
and tax profits for the year is accounted for using the tax rates and
laws that have been enacted or substantively enacted as of the balance
sheet date. Deferred tax assets arising from timing differences are
recognised to the extent there is a virtual / reasonable certainty that
these would be realised in future and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
j) Lease:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the statement of profit and loss on straight-line basis over the
lease term.
k) Borrowing costs:
Borrowing costs attributable to the acquisition and construction of
qualifying assets upto the date of such acquisition or construction are
capitalised as part of the cost of respective assets. Other borrowing
costs are charged to statement of profit and loss in the period in
which they are incurred.
l) Impairment of assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the management estimates the recoverable amount of the asset.
If such recoverable amount of the asset 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
statement of profit and loss. If at the balance sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated
historical cost.
m) Provisions and contingent liabilities:
The Company creates a provision when there is a present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
n) Earnings per share:
The basic earnings per share ("EPS") is computed by dividing the net
profit / (loss) after tax for the year available for the equity
shareholders by the weighted average number of equity shares
outstanding during the year. For the purpose of calculating diluted
earnings per share, net profit / (loss) after tax for the year
available for equity shareholders and the weighted average number of
shares outstanding during the year are adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2011
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with applicable
Accounting Standards prescribed in the Companies (Accounting Standards)
Rules, 2006 notified by the Central Government of India, to the extent
applicable and in accordance with the relevant provisions of the
Companies Act, 1956.
2. Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Although these estimates are based upon
management's best knowledge of current events and actions, actual
results could differ from these estimates.
3. Fixed assets:
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes original cost of acquisition, including incidental expenses
related to such acquisition and installation.
4. Depreciation / amortisation:
Depreciation on fixed assets has been provided on straight-line method
on pro-rata basis in the manner and at the rates specified in Schedule
XIV to the Companies Act, 1956.
Software is amortised over a period of 3 years.
Leasehold improvements are amortised over the lease period.
5. Investments:
a) Long-term investments are valued at cost. Provision is made for
diminution in the values when the decline is other than temporary.
b) Current investments are valued at lower of cost or market value
determined on an individual investment basis.
6. Revenue recognition:
Revenue from service charges, fees and commission is recognised when
the contract has been completed.
Investment Income is recognised on the date of sale of securities.
Interest income is recognised on accrual basis.
Dividend income from investments is recognised when the shareholders'
rights to receive payment have been established.
Rent income is recognised on accrual basis.
7. Transaction in foreign currencies:
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement/translation of monetary assets and liabilities are
recognized in the profit and loss account. Non-monetary foreign
currency items are carried at cost.
8. Retirement benefits:
a) Defined contribution plans
The Company contributes to Employee's Provident Fund (a defined
contribution plan) towards post employment benefits, which is
administered by the respective Government authorities and the Company
has no further obligation beyond making its contribution.
b) Defined benefit plans
The Company has a defined benefit plan namely gratuity for all its
employees. The liability for the defined benefit plan of gratuity is
determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the profit and
loss account.
c) Employee leave entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilized leave
balances is provided as at the year end and charged to the profit and
loss account.
9. Accounting for taxes on income:
a) Provision for income tax is made on the basis of the estimated
taxable income for the accounting year in accordance with the
Income-tax Act, 1961.
b) The deferred tax for timing differences between the book profits and
tax profits for the year is accounted for using the tax rates and laws
that have been enacted or substantively enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a virtual / reasonable certainty that
these would be realised in future and are reviewed for the
appropriateness of their respective carrying values at each balance
sheet date.
10. Lease:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the profit and loss account on straight-line basis over the lease
term.
11. Borrowing costs:
Borrowing costs attributable to the acquisition and construction of
qualifying assets upto the date of such acquisition or construction are
capitalised as part of the cost of respective assets. Other borrowing
costs are charged to profit and loss account in the period in which
they are incurred.
12. Impairment of assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the management estimates the recoverable amount of the asset.
If such recoverable amount of the asset 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 if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated
historical cost.
13. Provisions and contingent liabilities:
The Company creates a provision when there is a present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Mar 31, 2010
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on an accrual basis and in accordance with applicable
Accounting Standards notified by the Central Government of India, to
the extent applicable and the provisions of the Companies Act, 1956.
2. Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affects the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Although these estimates are based upon
managements best knowledge of current events and actions, actual
results could differ from these estimates.
3. Fixed assets:
Fixed Assets are stated at cost less accumulated depreciation. Cost
includes original cost of acquisition, including incidental expenses
related to such acquisition and installation.
4. Depreciation / amortisation:
Depreciation on fixed assets has been provided on straight-line method
on pro-rata basis in the manner and at the rates specified in Schedule
XIV to the Companies Act, 1956.
Software is amortised over a period of 3 years.
Leasehold improvements are amortised over the lease period.
5. Investments:
a) Long-term investments are valued at cost. Provision is made for
diminution in the values when the decline is other than temporary.
b) Current investments are valued at lower of cost or market value
determined on an individual investment basis.
6. Revenue recognition:
Revenue from service charges, fees and commission is recognised when
the contract has been completed.
Dividend income from investments is recognised when the shareholders
rights to receive payment have been established.
7. Transaction in foreign currencies:
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlementAranslation of monetary assets and liabilities are recognized
in the profit and loss account. Non-monetary foreign currency items are
carried at cost.
8. Retirement benefits:
a) Defined contribution plans
The Company contributes to Employees Provident Fund (a defined
contribution plan) towards post employment benefits, which is
administered by the respective Government authorities and the Company
has no further obligation beyond making its contribution.
b) Defined benefit plans
The Company has a defined benefit plan namely gratuity for all its
employees. The liability for the defined benefit plan of gratuity is
determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses are recognized immediately in the profit and
loss account.
c) Employee leave entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilized leave
balances is provided as at the year end and charged to the profit and
loss account.
9. Accounting for taxes on income:
a) Provision for income tax is made on the basis of the estimated
taxable income for the accounting year in accordance with the
Income-tax Act, 1961.
b) The deferred tax for timing differences between the book profits and
tax profits for the year is accounted for using the tax rates and laws
that have been enacted or substantively enacted as of the balance sheet
date. Deferred tax assets arising from timing differences are
recognised to the extent there is a virtual certainty that these would
be realised in future and are reviewed for the appropriateness of their
respective carrying values at each balance sheet date.
10. Lease:
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the profit and loss account on straight-line basis over the lease
term.
11. Borrowing costs:
Borrowing costs attributable to the acquisition and construction of
qualifying assets upto the date of such acquisition or construction are
capitalised as part of the cost of respective assets. Other borrowing
costs are charged to profit and loss account in the period in which
they are incurred.
12. Impairment of assets:
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the management estimates the recoverable amount of the asset.
If such recoverable amount of the asset 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 if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount subject to a maximum of depreciated
historical cost.
13. Provisions and contingent liabilities:
The Company creates a provision when there is a present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.