Mar 31, 2015
A. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b. Tangible fixed assets
Fixed assets, except land and buildings are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. Subsequent
expenditure related to an item of fixed asset is added to its book
value only if it increases the future benefits from the existing asset
beyond its previously assessed standard of performance. Other expense
on existing fixed assets including day-to-day repair and maintenance
expenditure and cost of replacing parts are charged to the statement of
profit and loss for the period.
c. Depreciation on tangible fixed assets
Deprecation on fixed assets is calculated on a WDV method using the
rates specified under the Schedule XIV to the Companies Act, 1956
arrived on the basis of the useful lives estimated by the management.
Useful lives of assets are determined by management by an internal
technical assessment except where such assessment suggests a life
significantly different from those prescribed by schedule II-part C of
the companies act,2013 where the useful life is as assessed and
certified by a technical expert.
d. Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses if any. Internally generated intangible assets,
excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss in the
year in which the expenditure is incurred. Intangible assets
(goodwill) arising on consolidation or acquisition is not amortized but
is tested for impairment.
The amortization period and the amortization method are reviewed at
least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly. If there has been a
significant change in the expected pattern of economic benefits from
asset, the amortization method is changed to reflect the changed
pattern. Such changes are accounted for in accordance with AS 5 Net
Profit or Loss for the Period, Prior Period Items and Changes in
Accounting Policies.
Gains or losses arising from derecognizing of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
e. Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a Substantial period
of time to get ready for its Intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
f. Impairment of tangible and intangible assets
Management periodically assesses using, external and internal sources,
whether there is an indication that an asset may be impaired. An
impairment loss is recognized wherever the carrying value of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
asset's net selling price and value in use i.e. the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. An impairment loss for an asset is
reversed if there has been a change in the estimates used to determine
the recoverable amount since the last impairment loss was recognized.
g. Leases
Where the Company is the lessee
Leases which effectively transfer to the Company substantially all the
risks and benefits incidental to ownership of the leased item, are
classified as finance leases and are capitalized at the lower of the
fair value and present value of the minimum lease payments at the
inception of the lease term and disclosed as assets acquired on finance
lease. Lease payments are apportioned between the finance charges and
reduction of the lease liability based on the implicit rate of return.
Finance charges on account of finance leases are charged to statement
of profit and loss.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of profit and loss on a straight line basis over the
lease term.
h. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments - Non Current
Investments. Current investments are carried at lower of cost and fair
value determined on an individual investment basis. Long term
investments are carried at cost. However, provision for diminution in
value is made to recognize a decline other than temporary in the value
of the investments.
i. Revenue Recognition
(a) Revenue is being recognised as and when there is reasonable
certainty of ultimate Realization.
(b) Dividend income is accounted on cash basis.
(c) Interest income is recognised on a time proportionate basis.
j. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing differences between
taxable income and accounting Income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax
relating items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.
Deferred tax liabilities are recognized for taxable timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes down the carrying amount of deferred
tax asset to the extent that it is no Longer reasonably certain or
virtually certain as the case may be that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain as the case may be that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period. i.e the period for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
k. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
q. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
During the year advances, Receivables and investment made are
recoverable and performing, therefore management has not made any
provisions for bad or doubtful asset, however 0.25% of the Standard
Assets is being provided as per the notification issued by the Reserve
Bank of India (RBI).
In accordance with the notification No. DNBS.222/CGM(US)-2011 dated
17-01-2011issued by the Reserve Bank of India (RBI) vide its Directions
to all NBFCs to make a general provision of 0.25% of the standard
assets The company has made a provision of Rs. 12,22,697/- on the
standard assets as on March 31, 2015. The amount of provision on
Standard assets is shown separately as Contingent provision against
Standard Assets under Long Term Provisions in the Balance Sheet.
Pursuant to section 45 IC of the Reserve Bank of India, 1934, during
the year the company has transferred an amount of Rs. 14,04,557/- to
Statutory Reserve
r. Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence/
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize the contingent liability but discloses its existence in the
financial statements.
s. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and fixed
deposits with an original maturity of three months or less with banks.
t. Segment reporting policies
The Company has only one business segment, i.e. Finance software
development / IT enabled services. Accordingly the amounts appearing in
the financial statements relate to this primary business segment.
Further, the Company renders services in India only, and accordingly
the disclosures under secondary segment are not applicable.
Mar 31, 2014
A. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b. Tangible fixed assets
Fixed assets, except land and buildings are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Other expense on existing fixed assets including day- to- day repair
and maintenance expenditure and cost of replacing parts are charged to
the statement of profit and loss for the period.
c. Depreciation on tangible fixed assets
Deprecation on fixed assets is calculated on a WDV method using the
rates specified under the Schedule XIV to the Companies Act, 1956
arrived on the basis of the useful lives estimated by the management
d. Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses if any. Internally generated intangible assets,
excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss in the
year in which the expenditure is incurred.
Intangible assets (goodwill) arising on consolidation or acquisition is
not amortized but is tested for impairment.
The amortization period and the amortization method are reviewed at
least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly. If there has been a
significant change in the expected pattern of economic benefits from
the asset, the amortization method is changed to reflect the changed
pattern. Such changes are accounted for in accordance with AS 5 Net
Profit or Loss for the Period, Prior Period Items and Changes in
Accounting Policies.
Gains or losses arising from derecognizing of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
e. Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a Substantial period
of time to get ready for its Intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
f. Impairment of tangible and intangible assets
Management periodically assesses using, external and internal sources,
whether there is an indication that an asset may be impaired. An
impairment loss is recognized wherever the carrying value of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
asset''s net selling price and value in use i.e. the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. An impairment loss for an asset is
reversed if there has been a change in the estimates used to determine
the recoverable amount since the last impairment loss was recognized.
g. Leases
Where the Company is the lessee
Leases which effectively transfer to the Company substantially all the
risks and benefits incidental to ownership of the leased item, are
classified as finance leases and are capitalized at the lower of the
fair value and present value of the minimum lease payments at the
inception of the lease term and disclosed as assets acquired on finance
lease. Lease payments are apportioned between the finance charges and
reduction of the lease liability based on the implicit rate of return.
Finance charges on account of finance leases are charged to statement
of profit and loss.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of profit and loss on a straight line basis over the
lease term.
h. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All o t h e r
investments are classified as long term investments  Non Current
Investments. Current investments are carried at lower of cost and fair
value determined on an individual investment basis. Long term
investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary in the value of the investments.
i. Revenue Recognition
(a) Revenue is being recognised as and when there is reasonable
certainty of ultimate Realization.
(b) Dividend income is accounted on cash basis.
(c) Interest income is recognised on a time proportionate basis.
j. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income'' tax Act, 1961 enacted in India and tax
laws prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing differences between
taxable income and accounting Income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax rela
ting to items recognized directly in equity is recognized in equity and
not in the statement of profit and loss.
Deferred tax liabilities are recognized for taxable timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits. At
each reporting date, the company re- assesses unrecognized deferred tax
assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of
deferred tax asset to the extent that it is no Longer reasonably
certain or virtually certain as the case may be that sufficient future
taxable income will be available against which deferred tax asset can
be realized. Any such write- down is reversed to the extent that it
becomes reasonably certain or virtually certain as the case may be that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set- off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period. i.e. the period for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income- tax Act, 1961, the said asset is created by way of credit to
the statement of profit and loss and shown as "MAT Credit Entitlement."
The company reviews the "MAT credit entitlement" asset at each
reporting date and writes down the asset to the extent the company does
not have convincing evidence that it will pay normal tax during the
specified period.
k. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
l. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
During the year advances, Receivables and investment made are
recoverable and performing, therefore management has not made any
provisions for bad or doubtful asset, however 0.25% of the Standard
Assets is being provided as per the notification issued by the Reserve
Bank of India (RBI).
In accordance with the notification No. DNBS.222/CGM(US)-2011 dated
17-01-2011issued by the Reserve Bank of India (RBI) vide its Directions
to all NBFCs to make a general provision of 0.25% of the standard
assets The company has made a provision of Rs. 22,07,967/- on the
standard assets as on March 31, 2014. The amount of provision on
Standard assets is shown separately as Contingent provision against
Standard Assets under Long Term Provisions in the Balance Sheet.
Pursuant to section 45 IC of the Reserve Bank of India, 1934, during
the year the company has transferred an amount of Rs. 12, 04,159/- to
Statutory Reserve
m. Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence/
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize the contingent liability but discloses its existence in the
financial statements.
n. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and fixed
deposits with an original maturity of three months or less with banks.
o. Segment reporting policies
The Company has only one business segment, i.e. Finance software
development / IT enabled services. Accordingly the amounts appearing in
the financial statements relate to this primary business segment.
Further, the Company renders services in India only, and accordingly
the disclosures under secondary segment are not applicable.
Mar 31, 2013
A. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b. Tangible fixed assets
Fixed assets, except land and buildings are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Other expense on existing fixed assets including day-to-day repair and
maintenance expenditure and cost of replacing parts are charged to the
statement of profit and loss for the period.
c. Depreciation on tangible fixed assets
Deprecation on fixed assets is calculated on a WDV method using the
rates specified under the Schedule XIV to the Companies Act, 1956
arrived on the basis of the useful lives estimated by the management
d. Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses if any. Internally generated intangible assets,
excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss in the
year in which the expenditure is incurred.
Intangible assets (goodwill) arising on consolidation or acquisition is
not amortized but is tested for impairment.
The amortization period and the amortization method are reviewed at
least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly. If there has been a
significant change in the expected pattern of economic benefits from
the asset, the amortization method is changed to reflect the changed
pattern. Such changes are accounted for in accordance with AS 5 Net
Profit or Loss for the Period, Prior Period Items and Changes in
Accounting Policies.
Gains or losses arising from derecognizing of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
e. Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a Substantial period
of time to get ready for its Intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
f. Impairment of tangible and intangible assets
Management periodically assesses using, external and internal sources,
whether there is an indication that an asset may be impaired. An
impairment loss is recognized wherever the carrying value of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
asset''s net selling price and value in use i.e. the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. An impairment loss for an asset is
reversed if there has been a change in the estimates used to determine
the recoverable amount since the last impairment loss was recognized.
g. Leases Where the Company is the lessee
Leases which effectively transfer to the Company substantially all the
risks and benefits incidental to ownership of the leased item, are
classified as finance leases and are capitalized at the lower of the
fair value and present value of the minimum lease payments at the
inception of the lease term and disclosed as assets acquired on finance
lease. Lease payments are apportioned between the finance charges and
reduction of the lease liability based on the implicit rate of return.
Finance charges on account of finance leases are charged to statement
of profit and loss.
Leases where the lesser effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of profit and loss on a straight line basis over the
lease term.
h. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments - Non Current
Investments. Current investments are carried at lower of cost and fair
value determined on an individual investment basis. Long term
investments are carried at cost. However, provision for diminution in
value is made to recognize a decline other than temporary in the value
of the investments.
i. Revenue Recognition
(a) Revenue is being recognised as and when there is reasonable
certainty of ultimate
Realization.
(b) Dividend income is accounted on cash basis.
(c) Interest income is recognised on a time proportionate basis.
j. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing differences between
taxable income and accounting Income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax
relating to items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.
Deferred tax liabilities are recognized for taxable timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of deferred
tax asset to the extent that it is no Longer reasonably certain or
virtually certain as the case may be that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain as the case may be that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period. i.e the period for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
k. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
Provisions
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
l. Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence/
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize the contingent liability but discloses its existence in the
financial statements.
m. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and fixed
deposits with an original maturity of three months or less with banks.
n. Segment reporting policies
The Company has only one business segment, i.e. Finance software
development / IT enabled services. Accordingly the amounts appearing in
the financial statements relate to this primary business segment.
Further, the Company renders services in India only, and accordingly
the disclosures under secondary segment are not applicable.
Mar 31, 2012
A. Change in accounting policy.
Presentation and disclosure of financial statements
During the year ended 31 March 2012, the revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. However it
has significant impact on presentation and disclosures made in the
financial statements. The company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
b. Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
e. Tangible fixed assets
1 Fixed assets, except land and buildings are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Other expense on existing fixed assets including day-to-day repair and
maintenance expenditure and cost of replacing parts are charged to the
statement of profit and loss for the period.
d. Depreciation on tangible fixed assets
Deprecation on fixed assets is calculated on a WDV method using the
rates specified under the Schedule XIV to the Companies Act, 1956
arrived on the basis of the useful lives estimated by the management
e. Intangible assets
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses if any. Internally generated intangible assets,
excluding capitalized development costs, are not capitalized and
expenditure is reflected in the statement of profit and loss in the
year in which the expenditure is incurred.
Intangible assets are amortized on a straight line basis over the
estimated useful economic life. All other intangible assets are
assessed for impairment whenever there is an indication that the
intangible asset may be impaired.
The amortization period and the amortization method are reviewed at
least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly. If there has been a
significant change in the expected pattern of economic benefits from
the asset, the amortization method is changed to reflect the changed
pattern. Such changes are accounted for in accordance with AS 5 Net
Profit or Loss for the Period, Prior Period Items and Changes in
Accounting Policies.
Gains or losses arising from derecognizing of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.
f. Borrowing Cost
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a Substantial period
of time to get ready for its Intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur.
g. Impairment of tangible and intangible assets
Management periodically assesses using, external and internal sources,
whether there is an indication that an asset may be impaired. An
impairment loss is recognized wherever the carrying value of an asset
exceeds its recoverable amount. The recoverable amount is higher of the
asset's net selling price and value in use i.e. the present value of
future cash flows expected to arise from the continuing use of the
asset and its eventual disposal. An impairment loss for an asset is
reversed if there has been a change in the estimates used to determine
the recoverable amount since the last impairment loss was recognized.
h. Leases
Where the Company is the lessee
Leases which effectively transfer to the Company substantially all the
risks and benefits incidental to ownership of the leased item, are
classified as finance leases and are capitalized at the lower of the
fair value and present value of the minimum lease payments at the
inception of the lease term and disclosed as assets acquired on finance
lease. Lease payments are apportioned between the finance charges and
reduction of the lease liability based on the implicit rate of return.
Finance charges on account of finance leases are charged to statement
of profit and loss.
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of profit and loss on a straight line basis over the
lease term.
i. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long term investments - Non Current
Investments. Current investments are carried at lower of cost and fair
value determined on an individual investment basis. Long term
investments are carried at cost However, provision for diminution in
value is made to recognize a decline other than temporary in the value
of the investments.
j. Revenue Recognition
(a) Revenue is being recognised as and when there is reasonable
certainty of ultimate Realization.
(b) Dividend income is accounted on cash basis.
(c) Interest income is recognised on a time proportionate basis.
k. Taxes on Income
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India and tax laws
prevailing in the respective tax jurisdictions where the company
operates. The tax rates and tax laws used to compute the amount are
those that are enacted or substantively enacted, at the reporting date.
Deferred Income taxes reflect the impact of timing differences between
taxable income and accounting Income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax
relating to items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.
Deferred tax liabilities are recognized for taxable timing differences.
Deferred tax assets are recognized for deductible timing differences
only to the extent that there is reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized. In situations where the company has unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the extent
that it has become reasonably certain or virtually certain as the case
may be that sufficient future taxable income will be available against
which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of
deferred tax asset to the extent that it is no Longer reasonably
certain or virtually certain as the case may be that sufficient future
taxable income will be available against which deferred tax asset can
be realized. Any such write-down is reversed to the extent that it
becomes reasonably certain or virtually certain as the case may be that
sufficient future taxable income will be available.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set-off current tax assets against
current tax liabilities and the deferred tax assets and deferred taxes
relate to the same taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified period, i.e the period for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement." The
company reviews the "MAT credit entitlement" asset at each reporting
date and writes down the asset to the extent the company does not have
convincing evidence that it will pay normal tax during the specified
period.
I. Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
m. Provisions
A provision is recognized when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
n. Contingent Liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence/
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize the contingent liability but discloses its existence in the
financial statements.
o. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand and fixed
deposits with an original maturity of three months or less with banks.
p. Segment reporting policies
The Company has only one business segment, i.e. Finance software
development / IT enabled services. Accordingly the amounts appearing in
the financial statements relate to this primary business segment.
Further, the Company renders services in India only, and accordingly
the disclosures under secondary segment are not applicable.
Mar 31, 2010
I) Income Recognition:
a) Revenue is being recognised as and when there is reasonable
certainty of ultimate realization.
b) Dividend income is accounted on cash basis.
ii) Expense Recognition:
It is the Companys policy to provide for all the expenses on accrual
basis.
iii) Investments:
Long term Investments are stated at cost.
iv) a) Fixed Assets:
Fixed Assets are stated at cost.
b) Depreciation:
Depreciation on assets is provided on written down value method at the
rates and in the manner specified in Schedule XIV of the Companies Act,
1956.
v) Treatment of retirement benefits:
Retirement benefits are recorded only on crystallization of liability.
vi) Treatment of Contingent Liability:
Contingent liabilities are disclosed by the way of notes.
vii) Taxation:
a) Income tax expense comprises of the current tax and deferred tax
charge or credit.
b) The deferred tax asset and deferred tax liability is calculated by
applying the tax rate and tax loss that have been enacted or
substantially enacted as at the Balance Sheet date.
c) Deferred tax assets arising mainly on account of brought forward
losses and unabsorbed depreciation under tax laws, are recognised, only
if there is a virtual certainty of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognised only to the extent there is a reasonable
certainty of its realization.
d) At each balance sheet date, the carrying amount of deferred tax
asset is reviewed to reassure realization.
viii) Other Accounting Policies:
These are consistent with the generally accounting practices.
Mar 31, 2009
I) Income Recognition:
a) Revenue is being recognised as and when there is reasonable
certainty of ultimate realization.
b) Dividend income is accounted on cash basis.
ii) Expense Recognition:
It is the Companys policy to provide for all the expenses on accrual
basis.
iii) Investments:
Long term Investments are stated at cost.
iv) a) FixedAssets:
Fixed Assets are stated at cost.
b) Depreciation:
Depreciation on assets is provided on written down value method at the
rates and in the manner specified in Schedule XIV ofthe Companies Act,
1958.
v) Treatment of retirement benefits:
Retirement benefits are recorded only on crystallization of liability.
vi) Treatment of Contingent Liability:
Contingent liabilities are disclosed by the way of notes.
vii) Taxation:
a) Income tax expense comprises ofthe current tax and deferred tax
charge or credit.
b) The deferred tax asset and deferred tax liability is calculated by
applying the tax rate and tax loss that have been enacted or
substantially enacted asat the BalanceSheet date.
c) Deferred tax assets arising mainly on account of brought forward
losses and unabsorbed depreciation under tax laws, are recognised, only
if there is a virtual certainty of its realization, supported by
convincing evidence. Deferred tax assets on account of other timing
differences are recognised only to the extent there is a reasonable
certainty of its realization.
d) At each balance sheet date, the carrying amount of deferred tax
asset is reviewed to reassure realization.
viii) Other Accounting Policies:
These are consistent with the generally accounting practices.
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