Mar 31, 2015
A. Basis of preparation of the Financial Statements
The accompanying Financial Statements are prepared and presented under
the Historical Cost Convention, on the accrual basis of accounting and
comply with the Generally Accepted Accounting Principles in India
including the Accounting Standards notified under the relevant
provisions of the Companies Act, 2013. The Financial Statements are
presented in Indian Rupees.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in Schedule III to the Companies Act, 2013.
b. Use of Estimates
The preparation of the Financial Statements in conformity with the
Generally Accepted Accounting Principles requires the management to
make estimates and assumptions that affect the reported amount of
Assets, Liabilities (including Contingent Liabilities) as of the date
of the Financial Statements and the reported Revenues and Expenses
during the reporting period. Actual results could differ from the
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Revenue Recognition
i. Revenue from Consulting business is primarily derived from
Resourcing services, Technical Support Service, Licensing of Software
and
Business Support Services. Revenues from fixed price and fixed time
frame contracts / arrangements are recognised when the services have
been rendered in accordance with the contracts / arrangements and there
is no uncertainty as to the measurement or collectability of the
consideration. Where there is uncertainty as to measurement or
collectability, Revenue Recognition is postponed until such uncertainty
is resolved.
ii. Interest on Fixed Deposits and Interest on Advances are accounted
on accrual basis. In case of Doubtful Loans, the Interest is
recognised on actual receipt.
iii. Dividend Income is recognised when the Company's right to receive
the dividend is recognised.
iv. Other receipts are accounted when it is received.
d. Expenditure
Expenses are accounted on accrual basis. As a matter of prudence,
provisions are made for all known losses and liabilities.
e. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
f. Intangible Assets
Intangible Assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
g. Depreciation and Amortization
Depreciation on fixed assets is provided on Straight-Line basis based
on the useful life of the assets prescribed in Schedule II of the
Companies Act, 2013.
Intangible asset is amortised over its useful life (5 years) on
straight-line basis, commencing from
the date when the asset is put to use by the Company.
h. Investments
Long term investments are carried at cost less diminution, other than
any temporary diminution in value, determined separately for each
investment. Current investments are carried at lower of cost or Net
Realisable value.
i. Foreign Currency Transactions
Foreign Currency Transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if
any, arising out of transactions settled during the year are recognised
in the statement of Profit and Loss. Monetary Assets and Liabilities
denominated in Foreign Currencies as at the Balance Sheet date are
translated at the closing Exchange Rates on that date. The exchange
differences, if any, are recognised in the statement of Profit and Loss
and related Assets and Liabilities are accordingly restated in the
Balance Sheet.
j. Employee Benefits
i. All Short Term Employee Benefits payable including Salaries and
other allowances are recognised on accrual basis, in the manner
provided in AS - 15.
ii. The Company contributes to a Recognised Provident Fund and
Employee State Insurance, which are defined contribution schemes. The
contributions are accounted for on an accrual basis and recognised in
the statement of Profit and Loss.
iii. No provision has been made for leave encashment benefit for the
period as the terms of employment does not provide for such obligation
on the Company.
iv. Gratuity liability is ascertained based on actuarial valuation,
carried out by an independent actuary as at the balance sheet date
using the projected unit credit method and provision is made in the
books.
As per the terms of the agreement with the clients, gratuity payable to
employees
deployed with the clients would be reimbursed by the clients as and
when the gratuity is payable to the employees. In accordance therewith,
provision for gratuity in respect of the employees deployed with
various clients, has been debited to the account of the respective
clients instead of being debited to the statement of Profit and Loss.
Gratuity cost in respect of other employees has been debited to the
statement of Profit and Loss. The Company has not made any insurance
contribution in respect of its gratuity liability.
k. Taxation
The accounting treatment for Income Tax in respect of Company's income
is based on the Accounting Standard 22 on 'Accounting for Taxes on
Income'.
Income Tax: Provision for current Income Tax is made on the Taxable
Income for the year as is determined in accordance with the provisions
of the Income-Tax Act, 1961.
Advance taxes and provisions for current income taxes are presented in
the balance sheet after off- setting advance tax paid and income tax
provision arising in the same tax jurisdiction and where the Company
intends to settle the asset and liability on a net basis.
Deferred Tax : Deferred Tax Assets and Liabilities are recognized at
substantively enacted Tax Rates, subject to the consideration of
prudence, on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
The company off-sets deferred tax assets and deferred tax liabilities
if it has a legally enforceable right and these relate to taxes on
income levied by the same governing taxation laws.
l. Earnings Per Share (EPS)
The Company reports Basic and Diluted Earnings Per Share in accordance
with Accounting Standard 20.
Basic Earnings per Share is computed by dividing the Net Profit After
Tax by the weighted average number of Equity Shares outstanding during
the year. The Company does not have any outstanding securities
convertible into Equity Shares of the Company and hence there is no
dilution in the Earnings per Share.
m. Provisions and Contingencies
The Company creates a provision when there is present or legal
constructive obligations as a result of past events, 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, require an outflow of resources.
When there is a possible obligation or a present obligati on in respect
of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.
Provisions are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognised in the Financial Statements since
this may result in the recognition of income that may never be
realised.
n. Cash Flows
Cash Flows are reported using the indirect method, whereby Profit
Before Tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating, financing and
investing activities of the Company are segregated.
Mar 31, 2014
A. Basis of preparation of the Financial Statements
The accompanying Financial Statements are prepared and presented under
the Historical Cost Convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standards) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable. The Financial Statements
are presented in Indian Rupees.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI to the Companies Act, 1956.
b. Use of Estimates
The preparation of the Financial Statements in conformity with the
Generally Accepted Accounting Principles requires the management to
make estimates and assumptions that affect the reported amount of
Assets, Liabilities (including Contingent Liabilities) as of the date
of the Financial Statements and the reported Revenues and Expenses
during the reporting period. Actual results could differ from the
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Revenue Recognition
i. Revenue from Consulting business is primarily
derived from Resourcing services, Technical Support Service, Licensing
of Software and Business Support Services. Revenues from fixed price
and fixed time frame contracts / arrangements are recognised when the
services have been rendered in accordance with the contracts /
arrangements and there is no uncertainty as to the measurement or
collectability of the consideration. Where there is uncertainty as to
measurement or collectability, Revenue Recognition is postponed until
such uncertainty is resolved.
ii. Interest on Fixed Deposits and Interest on Advances are accounted
on accrual basis. In case of Doubtful Loans, the Interest is recognised
on actual receipt.
iii. Dividend Income is recognised when the Company''s right to receive
the dividend is recognised.
iv. Other receipts are accounted when it is received.
d. Expenditure
Expenses are accounted on accrual basis. As a matter of prudence,
provisions are made for all known losses and liabilities.
e. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
f. Intangible Assets
Intangible Assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
g. Depreciation and Amortization
Depreciation on fixed assets is provided on Straight-Line basis from
the date the assets have been installed and put to use. In respect of
Assets sold, depreciation is provided upto the date of disposal.
Depreciation is charged at the rates prescribed in Schedule XIV to the
Companies Act, 1956.
All Fixed Assets individually costing less than Rs. 5,000 are fully
depreciated in the year of purchase.
Intangible asset is amortised over its useful life (5 years) on
straight-line basis, commencing from the date when the asset is put to
use by the Company.
h. Investments
Long term investments are carried at cost less diminution, other than
any temporary diminution in value, determined separately for each
investment. Current investments are carried at lower of cost or Net
Realisable value.
i. Foreign Currency Transactions
Foreign Currency Transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if
any, arising out of transactions settled during the year are recognised
in the statement of Profit and Loss. Monetary Assets and Liabilities
denominated in Foreign Currencies as at the Balance Sheet date are
translated at the closing Exchange Rates on that date. The exchange
differences, if any, are recognised in the statement of Profit and Loss
and related Assets and Liabilities are accordingly restated in the
Balance Sheet.
j. Employee Benefits
i. All Short Term Employee Benefits payable including Salaries and
other allowances are recognised on accrual basis, in the manner
provided in AS - 15.
ii. The Company contributes to a Recognised Provident Fund and
Employee State Insurance, which are defined contribution schemes. The
contributions are accounted for on an accrual basis and recognised in
the statement of Profit and Loss.
iii. No provision has been made for leave encashment benefit for the
period as the terms of employment does not provide for such obligation
on the Company.
iv. Gratuity liability is ascertained based on actuarial valuation,
carried out by an independent actuary as at the balance sheet date
using the projected unit credit method and provision is made in the
books.
As per the terms of the agreement with the clients, gratuity payable to
employees deployed with the clients would be reimbursed by the clients
as and when the gratuity is payable to the employees. In accordance
therewith, provision for gratuity in respect of the employees deployed
with various clients, has been debited to the account of the respective
clients instead of being debited to the statement of Profit and Loss.
Gratuity cost in respect of other employees has been debited to the
statement of Profit and Loss. The Company has not made any insurance
contribution in respect of its gratuity liability.
k. Taxation
The accounting treatment for Income Tax in respect of Company''s income
is based on the Accounting Standard 22 on ''Accounting for Taxes on
Income''.
Income Tax: Provision for current Income Tax is made on the Taxable
Income for the year as is determined in accordance with the provisions
of the Income-Tax Act, 1961.
Advance taxes and provisions for current income taxes are presented in
the balance sheet after offsetting advance tax paid and income tax
provision arising in the same tax jurisdiction and where the Company
intends to settle the asset and liability on a net basis.
Deferred Tax : Deferred Tax Assets and Liabilities are recognized at
substantively enacted Tax Rates, subject to the considerate on of
prudence, on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
The company off-sets deferred tax assets and deferred tax liabilities
if it has a legally enforceable right and these relate to taxes on
income levied by the same governing taxation laws.
l. Earnings Per Share (EPS)
The Company reports Basic and Diluted Earnings Per Share in accordance
with Accounting Standard 20 - Earnings Per Share prescribed by the
Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share
is computed by dividing the Net Profit After Tax by the weighted
average number of Equity Shares outstanding during the year. The
Company does not have any outstanding securities convertible into
Equity Shares of the Company and hence there is no dilution in the
Earnings per Share.
m. Provisions and Contingencies
The Company creates a provision when there is present or legal
constructive obligations as a result of past events, 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 obligati on or a present obligati on
that may, but probably will not, require an outflow of resources.
When there is a possible obligati on or a present obligati on in
respect of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
Provisions are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognised in the Financial Statements since
this may result in the recognition of income that may never be
realised.
n. Cash Flows
Cash Flows are reported using the indirect method, whereby Profit
Before Tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating, financing and
investing activities of the Company are segregated.
Mar 31, 2013
A. Basis of preparation of the Financial Statements
The accompanying Financial Statements are prepared and presented under
the Historical Cost Convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standards) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable. The Financial Statements
are presented in Indian Rupees.
All assets and liabilities have been classifi ed as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Schedule VI to the Companies Act, 1956.
b. Use of Estimates
The preparation of the Financial Statements in conformity with the
Generally Accepted Accounting Principles requires the management to
make estimates and assumptions that aff ect the reported amount of
Assets, Liabilities (including Contingent Liabilities) as of the date
of the Financial Statements and the reported Revenues and Expenses
during the reporting period. Actual results could diff er from the
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Revenue Recognition
i. Revenue from Consulting business is primarily derived from
Resourcing services, Technical Support Service, Licensing of Software
and Business Support Services. Revenues from fi xed price and fi xed
time frame contracts / arrangements are recognised when the services
have been rendered in accordance with the contracts / arrangements and
there is no uncertainty as to the measurement or collectability of the
consideration. Where there is uncertainty as to measurement or
collectability, Revenue Recognition is postponed until such uncertainty
is resolved.
ii. Interest on Fixed Deposits and Interest on Advances are accounted
on accrual basis. In case of Doubtful Loans, the Interest is
recognised on actual receipt.
iii. Dividend Income is recognised when the Company''s right to receive
the dividend is recognised.
iv. Other receipts are accounted when it is received.
d. Expenditure
Expenses are accounted on accrual basis. As a matter of prudence,
provisions are made for all known losses and liabilities.
e. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
f. Intangible Assets
Intangible Assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
g. Depreciation and Amortization
Depreciation on fi xed assets is provided on Straight-Line basis from
the date the assets have been installed and put to use. In respect of
Assets sold, depreciation is provided upto the date of disposal.
Depreciation is charged at the rates prescribed in Schedule XIV to the
Companies Act, 1956.
All Fixed Assets individually costing less than Rs. 5,000 are fully
depreciated in the year of purchase.
Intangible asset is amortised over its useful life (5 years) on
straight-line basis, commencing from the date when the asset is put to
use by the Company.
h. Investments
Long term investments are carried at cost less diminution, other than
any temporary diminution in value, determined separately for each
investment. Current investments are carried at lower of cost or Net
Realisable value.
i. Foreign Currency Transactions
Foreign Currency Transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if
any, arising out of transactions settled during the year are recognised
in the Statement of Profit and Loss. Monetary Assets and Liabilities
denominated in Foreign Currencies as at the Balance Sheet date are
translated at the closing Exchange Rates on that date. The exchange
differences, if any, are recognised in the Statement of Profit and Loss
and related Assets and Liabilities are accordingly restated in the
Balance Sheet.
j. Employee Benefi ts
i. All Short Term Employee Benefi ts payable including Salaries and
other allowances are recognised on accrual basis, in the manner
provided in AS - 15.
ii. The Company contributes to a Recognised Provident Fund and Employee
State Insurance, which are defi ned contribution schemes. The
contributions are accounted for on an accrual basis and recognised in
the Statement of Profi t and Loss.
iii. No provision has been made for leave encashment benefi t for the
period as the terms of employment does not provide for such obligation
on the Company.
iv. Gratuity liability is ascertained based on actuarial valuation,
carried out by an independent actuary as at the balance sheet date
using the projected unit credit method and provision is made in the
books.
As per the terms of the agreement with the clients, gratuity payable to
employees deployed with the clients would be reimbursed by the clients
as and when the gratuity is payable to the employees. In accordance
therewith, provision for gratuity in respect of the employees deployed
with various clients, has been debited to the account of the respective
clients instead of being debited to the Statement of Profi t and Loss.
Gratuity cost in respect of other employees has been debited to the
Statement of Profi t and Loss. The Company has not made any insurance
contribution in respect of its gratuity liability.
k. Taxation
The accounting treatment for Income Tax in respect of Company''s income
is based on the Accounting Standard 22 on ''Accounting for Taxes on
Income''.
Income Tax : Provision for current Income Tax is made on the Taxable
Income for the year as is determined in accordance with the provisions
of the Income-Tax Act, 1961.
Advance taxes and provisions for current income taxes are presented in
the balance sheet after off - setting advance tax paid and income tax
provision arising in the same tax jurisdiction and where the Company
intends to settle the asset and liability on a net basis.
Deferred Tax : Deferred Tax Assets and Liabilities are recognized at
substantively enacted Tax Rates, subject to the consideration of
prudence, on timing diff erence, being the diff erence between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
The company off -sets deferred tax assets and deferred tax liabilities
if it has a legally enforceable right and these relate to taxes on
income levied by the same governing taxation laws.
l. Earnings Per Share (EPS)
The Company reports Basic and Diluted Earnings Per Share in accordance
with Accounting Standard 20 - Earnings Per Share prescribed by the
Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share
is computed by dividing the Net Profi t After Tax by the weighted
average number of Equity Shares outstanding during the year. The
Company does not have any outstanding securities convertible into
Equity Shares of the Company and hence there is no dilution in the
Earnings per Share.
m. Provisions and Contingencies
The Company creates a provision when there is present or legal
constructive obligations as a result of past events, 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, require an outflow of resources.
When 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.
Provisions are reviewed at each Balance Sheet date and adjusted to refl
ect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognised in the Financial Statements since
this may result in the recognition of income that may never be
realised.
n. Cash Flows
Cash Flows are reported using the indirect method, whereby Profi t
Before Tax is adjusted for the eff ects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating, fi nancing
and investing activities of the Company are segregated.
Mar 31, 2012
A. Basis of preparation of the Financial Statements
The accompanying Financial Statements are prepared and presented under
the Historical Cost Convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standards) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable. The Financial Statements
are presented in Indian Rupees.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in Schedule VI to the Companies Act, 1956.
b. Use of Estimates
The preparation of the Financial Statements in conformity with the
Generally Accepted Accounting Principles requires the management to
make estimates and assumptions that affect the reported amount of
Assets, Liabilities (including Contingent Liabilities) as of the date
of the Financial Statements and the reported Revenues and Expenses
during the reporting period. Actual results could differ from the
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
c. Revenue Recognition
i. Revenue from Consulting business is primarily derived from
Resourcing services, Technical Support Service, Licensing of Software
and Business Support Services. Revenues from fixed price and fixed time
frame contracts / arrangements are recognized when the services have
been rendered in accordance with the contracts / arrangements and there
is no uncertainty as to the measurement or collectability of the
consideration. Where there is uncertainty as to measurement or
collectability, Revenue Recognition is postponed until such uncertainty
is resolved.
ii. Interest on Fixed Deposits and Interest on Advances are accounted
on accrual basis. In case of Doubtful Loans, the Interest is
recognized on actual receipt.
iii. Dividend Income is recognized when the Company's right to receive
the dividend is recognized.
iv. Other receipts are accounted when it is received.
d. Expenditure
Expenses are accounted on accrual basis. As a matter of prudence,
provisions are made for all known losses and liabilities.
e. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. The cost
of the Fixed Assets comprises purchase price and any attributable cost
of bringing the asset to its working condition for its intended use.
f. Intangible Assets
Intangible Assets are recorded at the Consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
g. Depreciation and Amortization
Depreciation on fixed assets is provided on Straight-Line basis from
the date the assets have been installed and put to use. In respect of
Assets sold, depreciation is provided upto the date of disposal.
Depreciation is charged at the rates prescribed in Schedule XIV to the
Companies Act, 1956.
All Fixed Assets individually costing less than Rs. 5,000 are fully
depreciated in the year of purchase.
Intangible asset is amortized over its useful life (5 years) on
straight-line basis, commencing from the date when the asset is put to
use by the Company.
h. Investments
Long term investments are carried at cost less diminution, other than
any temporary diminution in value, determined separately for each
investment. Current investments are carried at lower of cost or Net
Realizable value.
i. Foreign Currency Transactions
Foreign Currency Transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if
any, arising out of transactions settled during the year are recognized
in the Profit and Loss Account. Monetary Assets and Liabilities
denominated in Foreign Currencies as at the Balance Sheet date are
translated at the closing Exchange Rates on that date. The exchange
differences, if any, are recognized in the Profit and Loss Account and
related Assets and Liabilities are accordingly restated in the Balance
Sheet.
j. Employee Benefits
i. All Short Term Employee Benefits payable including Salaries and
other allowances are recognized on accrual basis, in the manner
provided in AS - 15.
ii. The Company contributes to a Recognized Provident Fund and
Employee State Insurance, which are defined contribution schemes. The
contributions are accounted for on an accrual basis and recognised in
the Profit and Loss Account.
iii. No provision has been made for leave encashment benefit for the
period as the terms of employment does not provide for such obligation
on the Company.
iv. Gratuity cost is accrued based on actuarial valuation, carried out
by an independent actuary as at the balance sheet date using the
projected unit credit method and provision is made in the books. The
Company has not made any insurance contribution in respect of its
gratuity liability.
k. Taxation
The accounting treatment for Income Tax in respect of Company's income
is based on the Accounting Standard 22 on 'Accounting for Taxes on
Income' issued by the Institute of Chartered Accountants of India.
Income Tax : Provision for current Income Tax is made on the Taxable
Income for the year as is determined in accordance with the provisions
of the Income Tax Act, 1961.
Advance taxes and provisions for current income taxes are presented in
the balance sheet after off-setting advance tax paid and income tax
provision arising in the same tax jurisdiction and where the Company
intends to settle the asset and liability on a net basis.
Deferred Tax : Deferred Tax Assets and Liabilities are recognized at
substantively enacted Tax Rates, subject to the consideration of
prudence, on timing difference, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
The company off-sets deferred tax assets and deferred tax liabilities
if it has a legally enforceable right and these relate to taxes on
income levied by the same governing taxation laws.
l. Earnings Per Share (EPS)
The Company reports Basic and Diluted Earnings Per Share in accordance
with Accounting Standard 20 - Earnings Per Share prescribed by the
Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share
is computed by dividing the Net Profit After Tax by the weighted
average number of Equity Shares outstanding during the year. The
Company does not have any outstanding securities convertible into
Equity Shares of the Company and hence there is no dilution in the
Earnings per Share.
m. Provisions and Contingencies
The Company creates a provision when there is present or legal
constructive obligations as a result of past events, 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, require an outflow of resources.
When 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.
Provisions are reviewed at each Balance Sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognized in the Financial Statements since
this may result in the recognition of income that may never be
realized.
n. Cash Flows
Cash Flows are reported using the indirect method, whereby Profit
Before Tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The Cash Flows from regular revenue generating, financing and
investing activities of the Company are segregated.
Mar 31, 2010
A) Basis of preparaton of the Financial Statements
The accompanying Financial Statements are prepared and presented under
the Historical Cost Conventon, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by the Companies
(Accounting Standards) Rules, 2006 and the relevant provisions of the
Companies Act, 1956 to the extent applicable. The Financial Statements
are presented in Indian Rupees.
B) Use of Estmates
The preparaton of the Financial Statements in conformity with the
Generally Accepted Accounting Principles requires the management to make
estmates and assumptons that afect the reported amount of Assets,
Liabilites (including Contngent Liabilites) as of the date of the
Financial Statements and the reported Revenues and Expenses during the
reporting period. Actual results could difer from the estmates. Any
revision to accounting estmates is recognised prospectvely in current
and future periods.
C) Revenue Recogniton
i) Revenue from IT Solutons and Consulting business is primarily derived
from Sofware Development, Support services and Licensing of Sofware.
All Customer contracts / arrangements are on fxed price basis.
Accordingly, the Revenue from the Sale of the Sofware and the licensing
fee is recognised when there is no uncertainty as to the measurement or
collectability of the consideraton. Where there is uncertainty as to
measurement or collectability, Revenue Recogniton is postponed untl
such uncertainty is resolved.
ii) Interest on Fixed Deposits and Interest on Advances are accounted
on accrual basis. In case of Doubtul Loans, the Interest is recognised
on actual receipt.
iii) Dividend Income is recognised when the CompanyÃs right to receive
the dividend is recognised.
iv) Other receipts are accounted when it is received.
D) Expenditure
Expenses are accounted on accrual basis. As a mater of prudence,
provisions are made for all known losses and liabilites. Bad debts are
writen-of when there is no expectaton of recovery.
E) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciaton. The cost
of the Fixed Assets comprises purchase price and any atributable cost
of bringing the asset to its working conditon for its intended use.
F) Intangible Assets
Intangible Assets are recorded at the Consideraton paid for acquisiton
of such assets and are carried at cost less accumulated amortzaton and
impairment.
H) Investments
Investments are classifed into long term investments and current
investments. Investments which are intended to be held for one year or
more are classifed as long term investments and investments which are
intended to be held for less than one year are classifed as current
investments. Long term investments are carried at cost less diminuton,
other than any temporary diminuton in value, determined separately for
each investment. Current investments are carried at lower of cost or
Net Realisable value.
I) Foreign Currency Transactons
Foreign Currency Transactons are recorded at the rates of exchange
prevailing on the date of the transacton. Exchange diferences, if any,
arising out of transactons setled during the year are recognised in the
Proft and Loss Account. Monetary Assets and Liabilites denominated in
Foreign Currencies as at the Balance Sheet date are translated at the
closing Exchange Rates on that date. The exchange diferences, if any,
are recognised in the Proft and Loss Account and related Assets and
Liabilites are accordingly restated in the Balance Sheet.
J) Employee Benefts
i) All Short Term Employee Benefts payable including Salaries and other
allowances are recognised on accrual basis, in the manner provided in
AS - 15.
ii) The Company contributes to a Recognised Provident Fund which is a
defned contributon scheme. The contributons are accounted for on an
accrual basis and recognised in the Proft and Loss Account.
iii) No provision has been made for leave encashment beneft for the
period as the terms of employment does not provide for such obligaton
on the Company.
iv) Gratuity cost is accrued based on actuarial valuaton, carried out
by an independent actuary as at the balance sheet date using the
projected unit credit method and provision is made in the books. The
Company has not made any insurance contributon in respect of its
gratuity liability.
K) Taxaton
The accounting treatment for Income-Tax in respect of CompanyÃs income
is based on the Accounting Standard 22 on ÃAccounting for Taxes on
Incomeà issued by the Insttute of Chartered Accountants of India.
Income Tax: Provision for current Income-Tax is made on the Taxable
Income for the year as is determined in accordance with the provisions
of the Income-Tax Act, 1961.
Deferred Tax : Deferred Tax Assets and Liabilites are recognized at
substantvely enacted Tax Rates, subject to the consideraton of
prudence, on tming diference, being the diference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
L) Earnings Per Share (EPS)
The Company reports Basic and Diluted Earnings Per Share in accordance
with Accounting Standard 20 - Earnings Per Share prescribed by the
Companies (Accounting Standards) Rules, 2006. Basic Earnings per Share
is computed by dividing the Net Proft Afer Tax by the weighted average
number of Equity Shares outstanding during the year. The Company does
not have any outstanding securites convertble into Equity Shares of the
Company and hence there is no diluton in the Earnings per Share.
M) Provisions and Contingencies
The Company creates a provision when there is present or legal
constructve obligatons as a result of a past events, that probably
requires an outlow of resources and a reliable estmate can be made of
the amount of the obligaton. A disclosure for a contngent liability is
made when there is a possible obligaton or a present obligaton that
may, but probably will not, require an outlow of resources.
When there is a possible obligaton or a present obligaton in respect of
which the likelihood of outlow of resources is remote, no provision or
disclosure is made.
Provisions are reviewed at each Balance Sheet date and adjusted to
refect the current best estmate. If it is no longer probable that the
outlow of resources would be required to setle the obligaton, the
provision is reversed.
Contngent assets are not recognised in the Financial Statements since
this may result in the recogniton of income that may never be realised.
N) Cash Flows
Cash Flows are reported using the indirect method, whereby Proft Before
Tax is adjusted for the efects of transactons of a non-cash nature and
any deferrals or accruals of past or future cash receipts or payments.
The Cash Flows from regular revenue generating, fnancing and investing
actvites of the Company are segregated.
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