Mar 31, 2014
1. Basis of accounting
The Financial Statements are prepared under historical cost convention
on the basis of going concern and as per Accounting Standards notified
under Section 211(3C) of the Companies Act, 1956.The Company follows
the Accrual system of Accounting and Prudential Norms prescribed by
Reserve Bank of India consistently from year to year.
2. Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting periods. Although these estimates are
based upon management''s knowledge of current events and actions, actual
results could differ from those estimates and revisions, if any, are
recognized in the current and future periods.
3. Intangible assets and amortization
Softwares which are not integral part of the hardware are classified as
intangibles and is stated at cost less accumulated amortization.
Softwares are being amortized over the estimated useful life of 5
years.
4. Fixed assets and depreciation / amortization
Fixed Assets (Gross Block) are stated at historical cost less
accumulated depreciation. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Building/specific identifiable portion of Building,
including related equipments are capitalized when the construction is
substantially complete or upon receipt of the occupancy certificate,
whichever is earlier. Depreciation on assets is provided on
straight-line method at the rates and in the manner prescribed in
schedule XIV to the Companies Act, 1956.
5. Investments
Current investments are stated at lower of cost and fair value.
Long-term investments are stated at cost and provision for diminution
in value, other than temporary, is considered wherever necessary.
Profit / loss on sale of investments is computed with reference to the
average cost of the investment.
6. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company the revenue can be reliably
measured on mercantile basis.
7. Borrowing costs
Borrowing costs that are attributable to the acquisition and / or
construction of qualifying assets are capitalized as part of the cost
of such assets, in accordance with Accounting Standard AS-16 -
"Borrowing Costs". A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use.
Capitalisation of Borrowing Costs is suspended in the period during
which the active development is delayed due to, other than temporary
interruption. All other borrowing costs are charged to the profit &
loss account as incurred.
8. Taxation
Provision for tax for the year comprises current income tax and
deferred tax. Current income tax is determined in respect of taxable
income with deferred tax being determined as the tax effect of timing
differences representing the difference between taxable income and
accounting income that originate in one period, and are capable of
reversal in one or more subsequent period(s). Such deferred tax is
quantified using rates and laws enacted or substantively enacted as at
the end of the financial year.
9. Foreign currency transactions
Transactions in foreign currency and nonmonetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
yearend exchange rate. As specified under Accounting Standard (AS-11) -
Effects of Changes in Foreign Exchange Rates, the exchange gain/loss on
transaction with regard to the Fixed Assets has been capitalized along
with Fixed Assets. The other exchange gains related to current assets
has been charged to the profit & loss account
10. Employees benefits
Expenses and liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Standard 15 - Employee Benefits
(Revised 2005) issued by the Institute of Chartered Accountants of
India (the "ICAI").
(i) Provident fund
The Company makes contribution to statutory provident fund in
compliance with the Employees Provident Fund and Miscellaneous
Provision Act, 1952. In terms of the Guidance on implementing the
revised AS - 15, issued by the Accounting Standard Board of the ICAI,
contribution made towards statutory provident fund is treated as a
defined benefit plan. Accordingly, the contribution paid or payable and
the interest shortfall, if any, is recognized as an expense in the
period in which services are rendered by the employee.
i) Gratuity
Gratuity is a post employment benefit and is in the nature of a defined
benefit plan. The liability recognized in the balance sheet in respect
of gratuity is the present value of the defined benefit / obligation at
the balance sheet date less the fair value of plan assets, together
with adjustments for unrecognized actuarial gains or losses and past
service costs. The defined benefit / obligation is provided at or near
the balance sheet date by an independent actuary using the projected
unit credit method. Actuarial gains and losses arising from past
experience and changes in actuarial assumptions are credited or charged
to the profit & loss account in the year in which such gains or losses
are determined.
(iii) Compensated absences
Liability in respect of compensated absences becoming due or expected
to be availed within one year from the balance sheet date is recognized
on the basis of undiscounted value of estimated amount required to be
paid or estimated value of benefit expected to be availed by the
employees.
(iv) Other short term benefits
Expense in respect of other short-term benefits is recognized on the
basis of the amount paid or payable for the period during which
services are rendered by the employee.
11. Leases
Assets subject to operating leases are included under fixed assets or
current assets as appropriate. Rent (Lease) income is recognized in the
profit & loss account on a straight-line basis over the lease term.
Costs, including depreciation, are recognized as an expense in the
profit & loss account.
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 Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the profit & loss account. If at the balance sheet date
there is an indication that 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 and is accordingly reversed in the profit & loss
account.
13. Provisions, Contingent Liabilities & Contingent Assets:
Depending upon the facts of each case and after due evaluation of legal
aspects, claims against the Company are accounted for as either
provisions or disclosed as contingent liabilities. In respect of
statutory dues disputed and contested by the Company, contingent
liabilities are provided for and disclosed as per original demand
without taking into account any interest or penalty that may accrue
thereafter. The Company makes a provision when there is a present
obligation as a result of a past event where the outflow of economic
resources is probable and a reliable estimate of the amount of
obligation can be made. Possible future or present obligations that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is disclosed as contingent liability in
the Financial Statements. Contingent Assets are neither recognized or
nor disclosed in the financial statements.
14. Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for events including a bonus issue, bonus element in a
rights issue to existing shareholders, share split and reverse share
split (consolidation of shares). For the purpose of calculating diluted
earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
Mar 31, 2010
1. Basis of accounting
The Financial Statements are prepared under historical cost convention,
on accrual basis, in accordance with the generally accepted accounting
principles of India and to comply with the Accounting standards
prescribed in the Companies (Accounting Standards) Rules, 2006 issued
by the Central Government in exercise of the power conferred under
sub-section (I) (a) of Section 642 and the relevant provisions of the
Companies Act, 1956 (the "Act").
2. Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting prin- ciples requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements and the results of operations during
the reporting periods. Although these estimates are based upon
managements knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognized
in the current and future periods.
3. Intangible assets and amortization
Software which are not integral part of the hardware are classified as
intangibles and is stated at cost less accumulated amortisation.
Softwares are being amortised over the estimated useful life of 5
years.
4. Fixed assets and depreciation / amortization
a) Fixed assets (gross block) are stated at historical cost less
accumulated depreciation. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Building / specific identifiable portion of Building,
includ- ing related equipments are capitalized when the construction is
substantially complete or upon receipt of the occupancy certificate,
whichever is earlier. Depreciation on assets is provided on
straight-line method at the rates and in the manner prescribed in
schedule XIV to the Companies Act, 1956.
5. Investments
Current investments are stated at lower of cost and fair value.
Long-term investments are stated at cost and provision for diminution
in their value, other than temporary, is made in the accounts. Profit
/ loss on sale of investments is computed with reference to the average
cost of the invest- ment.
6. Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company the the revenue can be
reliably measured on mercantile basis.
7. Borrowing costs
Borrowing costs that are attributable to the acquisition and / or
construction of qualifying assets are capitalized as part of the cost
of such assets, in accordance with Accounting Standard AS-16 -
"Borrowing Costs". A qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use.
Capitalisation of borrowing costs is suspended in the period during
which the active development is delayed due to, other than temporary
interruption. All other borrowing costs are charged to the profit &
loss account as incurred.
8. Taxation
Provision for tax for the year comprises current income tax, deferred
tax and fringe benefit tax. Current income tax is determined in
respect of taxable income with deferred tax being deter- mined as the
tax effect of timing differences representing the difference between
taxable income and accounting income that originate in one period, and
are capable of reversal in one or more subsequent period(s). Such
deferred tax is quantified using rates and laws enacted or substan-
tively enacted as at the end of the financial year.
9. Foreign currency transactions
Transactions in foreign currency and nonmonetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
yearend exchange rate. As specified under Accounting Standard - Changes
in Foreign Exchange Rates (AS)-ll, the exchange gain /loss on
transaction with regard to the Fixed Assets has been capitalized along
with Fixed Assets. The other exchange gains related to current assets
has been charged to the profit & loss account
10. Employees benefits
Expenses and liabilities in respect of employee benefits are recorded
in accordance with Revised Accounting Standard 15 - Employee Benefits
(Revised 2005) issued by the Institute of Chartered Accountants of
India (the "ICAI").
(i) Provident fund
The Company makes contribution to statutory provident fund in
compliance with the Employees Provident Fund and Miscellaneous
Provision Act, 1952. In terms of the Guidance on implement- ing the
revised AS - 15, issued by the Accounting Standard Board of the ICAI,
contribution made towards statutory provident fund is treated as a
denned benefit plan. Accordingly, the contribu- tion paid or payable
and the interest shortfall, if any is recognized as an expense in the
period in which services are rendered by the employee.
(ii) Gratuity
Gratuity is a post employment benefit and is in the nature of a defined
benefit plan. The liability recognized in the balance sheet in respect
of gratuity is the present value of the defined benefit / obligation at
the balance sheet date less the fair value of plan assets, together
with adjustments for unrecognized actuarial gains or losses and past
service costs. The defined benefit / obligation is provided at or near
the balance sheet date by an independent actuary using the projected
unit credit method. Actuarial gains and losses arising from past
experience and changes in actuarial assumptions are credited or charged
to the profit & loss account in the year in which such gains or losses
are determined.
(iii) Compensated absences
Liability in respect of compensated absences becoming due or expected
to be availed within one year from the balance sheet date is recognized
on the basis of undiscounted value of estimated amount required to be
paid or estimated value of benefit expected to be availed by the
employ- ees.
(iv) Other short term benefits
Expense in respect of other short-term benefits is recognized on the
basis of the amount paid or payable for the period during which
services are rendered by the employee.
11. Leases
Assets subject to operating leases are included under fixed assets or
current assets as appropri- ate. Rent (Lease) income is recognized in
the profit & loss account on a straight-line basis over the lease term.
Costs, including depreciation, are recognized as an expense in the
profit & loss account.
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 Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash gen- erating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the profit & loss account. If at the balance sheet date
there is an indication that 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 and is accordingly reversed in the profit & loss
account.
13. Contingent liabilities and provisions
Depending upon the facts of each case and after due evaluation of legal
aspects, claims against the Company are accounted for as either
provisions or disclosed as contingent liabilities. In respect of
statutory dues disputed and contested by the Company contingent
liabilities are provided for and disclosed as per original demand
without taking into account any interest or penalty that may accrue
thereafter. The Company makes a provision when there is a present
obligation as a result of a past event where the outflow of economic
resources is probable and a reliable estimate of the amount of
obligation can be made. Possible future or present obligations that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is dis- closed as contingent liability in
the Financial Statements.
14. Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are ad- justed for events including a bonus issue, bonus element in a
rights issue to existing shareholders, share split and reverse share
split (consolidation of shares). For the purpose of calculating diluted
earnings per share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.