Accounting Policies of Fourth Generation Information Systems Ltd. Company

Mar 31, 2012

1. Basis of Accounting:

a) The financial statements have been prepared on the basis of going concern under historical cost convention in accordance with generally accepted principles and provisions of the Companies Act, 1956 with revenue recognized and expenses accounted on accrual basis unless otherwise stated.

b) Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

c) All Income and Expenditure items, having material bearing on the financial statements are recognized on accrual basis.

2. Fixed Assets: Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized. Advances paid to capital creditors continuously shown under capital work in progress. The position of the advances given and their acknowledgements is yet to be confirmed.

3. Depreciation: Depreciation on fixed assets has been provided on straight-line method.

4. Foreign Currency Transactions: The company follow the foreign currency transactions as per applicable accounting standards.

6. Retirement Benefits: a) No provision has been made for retirement benefits, as they are not applicable to the company

7. Related Party Transactions:

a) Associate enterprises and amounts due from them: Nil

b) Key Management Personnel and relatives: Nil

c) Transactions with associate companies/firms/individuals: Nil

8. In accordance with the provisions of Accounting Standard 17, the company has only one reportable primary segment consisting of information technology services. Hence segment reporting not applicable.

9. Cash flow statement Cash flows are reported using the indirect method, whereby net 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, investing and financing activities of the company are segregated.

10. Earnings per share In determining earnings per share, the company considers the net profit after tax expense. The number of shares used in computing basic earnings per is the weighted average shares used in outstanding during the period.

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Mar 31, 2010

1. Basis of Accounting:

a) The financial statements have been prepared on the basis of going concern under historical cost convention in accordance with generally accepted principles and provisions of the Companies Act, 1956 with revenue recognized and expenses accounted on accrual basis unless otherwise stated.

b) Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

c) All Income and Expenditure items, having material bearing on the financial statements are recognized on accrual basis.

2. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized. Advances paid to capital creditors continuously shown under capital work in progress. The position of the advances given and their acknowledgements is yet to be confirmed.

3. Depreciation:

Depreciation on fixed assets has been provided on straight-line method.

4. Foreign Currency Transactions:

There are no transactions involving foreign exchange took place during the year under consideration.

5. Investments:

During the year 2003-04, Company has invested in the shares of M/s Net soft Technologies Inc., USA as a joint venture to the extent of 50% of the total share capital in equivalent to Rs. 9,99,49,237/- as a long-term investment. During the year under consideration, there is no dividend declared by this company. This investment is stated at cost and diminution in value if other than temporary is not recognized and provided due to lack of information. Confirmation of the status of investments has not been provided by the management.

6. Retirement Benefits:

a) Provident Fund: Contribution to Provident Fund is not made during the year under review.

b) Provision for gratuity and superannuation has not been made during the year under review.

7. Related Party Transactions:

a) Associate enterprises and amounts due from them: Nil

b) Key Management Personnel and relatives: Nil

c) Transactions with associate companies/firms/individuals: Nil

8. In respect of some of the Sundry Debtors, Loans and Advances, Other Receivables and Sundry Creditors confirmation of balances is still to be received and revalued.

9. Contingent Liabilities: Nil

10. In accordance with the provisions of Accounting Standard 17, the company has only one reportable primary segment consisting of information technology services. Hence segment reporting as defined is not submitted.

11. Unclaimed dividend pertaining to the year 2000-01 to the extent of Rs. 15,765 has not been transferred to Central Govt. account for unclaimed dividends.

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Mar 31, 2009

1. Basis of Accounting:

a) The financial statements have been prepared on the basis of going concern under historical cost convention in accordance with generally accepted principles and provisions of the Companies Act, 1956 with revenue recognized and expenses accounted on accrual basis unless otherwise stated.

b) Accounting policies not specifically referred to otherwise are in consonance with prudent accounting principles.

c) All Income and Expenditure items, having material bearing on the financial statements are recognized on accrual basis.

2. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. All costs, directly attributable to bringing the asset to the present condition for the intended use, are capitalized. Advances paid to capital creditors continuously shown under capital work in progress. The position of the advances given and their acknowledgements is yet to be confirmed.

3. Depreciation:

Depreciation on fixed assets has been provided on straight-line method.

4, Foreign Currency Transactions:

There are no transactions involving foreign exchange took place during the year under consideration.

5. Investments:

During the year 2003-04, Company has invested in the shares of M/s Net soft Technologies Inc., USA as a joint venture to the extent of 50% of the total share capital in equivalent to Rs, 9,99,49,237/- as a long term investment, During the year under consideration, there is no dividend declared by this company. This investment is stated at cost and diminution in value if other than temporary is not recognized and provided due to lack of information. Confirmation of the status of investments has not been provided by the management.

6. Retirement Benefits:

a) Provident Fund: Contribution to Provident Fund is not made during the year under review.

b) Provision for gratuity and superannuation has not been made during the year under review.

7. Related Party Transactions:

a) Associate enterprises and amounts due from them: Nil

b) Key Management Personnel and relatives: Nil

c) Transactions with associate companies/firms/individuals-. Nil

8. In respect of some of the Sundry Debtors, Loans and Advances, Other Receivables and Sundry Creditors confirmation of balances is still to be received and revalued.

9. Contingent Liabilities

During the year 2004-05, CIT (Appeals) of the concerned jurisdiction has served a demand notice for Rs.3,65,33,266/- towards assessment year 2001-02, the orders of which is appealed before Income Tax Appellate Tribunal and appeal proceedings are in progress. Therefore, provision is not made for the above said amount during the year.

10. In accordance with the provisions of Accounting Standard 17, the company has only one reportable primary segment consisting of information technology services. Hence segment reporting as defined is not submitted.

11. Unclaimed dividend pertaining to the year 2000-01 to the extent of Rs. 15,765 has not been transferred to Central Govt, account for unclaimed dividends.