Mar 31, 2013
(a) AS 1 Disclosure of accounting policies: The disclosure of
accounting policies is made in respect of the reporting entity. The
accounts are maintained on accrual basis as a going concern.
(b) AS 2 Valuation of Inventories: Inventories are valued in accordance
with the method of valuation prescribed by the Companies (Accounting
Standards) Rules, 2006 at weighted average cost or net realizable value
whichever is less.
(c) AS 3 Cash Flow Statements: The cash flow statement is prepared
under indirect method and the same is annexed.
(d) AS 4 Contingencies and events occurring after balance sheet date:
There have been no contingent events that have occurred after the
balance sheet date and hence these are not applicable to the
enterprise.
(e) AS 5 Net profit or loss for the period, Prior period items and
Changes in accounting policies
I. Prior period items: There are no prior period items during the year
and hence these are not applicable.
II. Changes in accounting policies: There have not been any changes in
accounting policies during the current year.
(f) AS 6 Depreciation Accounting: Depreciation has been provided under
the Written down value method at the rates prescribed under Schedule
XIV of the Companies Act, 1956.
In respect of assets added / assets sold during the year, pro-rata
depreciation has been provided at the rates prescribed under Schedule
XIV.
(g) AS 9 Revenue Recognition: The income of the Company is derived from
sale of Software. Sale of goods is recognized on dispatch of goods to
dealers and consumers. Amount recognized as sale is exclusive of Sales
tax/ VAT and is net of sales returns. No central excise duty is
applicable at present for the products dealt with by the Company.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
(h) AS 10 Accounting for Fixed Assets: All the fixed assets are valued
at cost including expenditure incurred in bringing them to usable
condition less depreciation.
(i) AS 11 Accounting for effect of changes in foreign exchange rates:
Not applicable as there was no foreign exchange transactions during the
year.
(j) AS 12 Accounting for government grants: Not applicable, the Company
has not received any grant.
(k) AS 13 Accounting for Investments: Not applicable, there was no
investment.
(1) AS 14 Accounting for Amalgamations: Not applicable, there was no
amalgamation during the year.
(m) AS 15 Accounting for Employee benefits
a) From the current year provident fund schemes and the Employees state
insurance schemes are applicable to the employees, company made proper
provision for the same and accounted in the books of accounts.
b) Gratuity and Encashment of leave benefits to employees are accounted
for on payment basis as none of the employees are eligible for the same
at present.
(n) AS 16 Borrowing Costs: The borrowing costs have been treated in
accordance with Accounting Standard on borrowing costs issued by the
Companies (Accounting Standard) Rules, 2006.
(o) AS 17 Segment Reporting: The Company operates in only one segment,
hence the Accounting Standard on segment reporting is not applicable.
(p) AS 18 Related party disclosures: Disclosure in accordance with
Accounting Standard-18 Related Party transaction during the year:
During the year no related party transactions are entered into.
(Previous Year: NIL)
(q) AS 20 Earnings Per Share
In the financial year company calculated Earnings per share and Diluted
Earnings per share in accordance with Accounting Standard on borrowing
costs issued by the Companies (Accounting Standard) Rules, 2006
(r) AS 22 Accounting for Taxes on Income
a. Provision for Income Tax is considered as per the provisions
contained in the Income Tax Act, 1961 and the Rules made there under
and at the rates applicable for the current financial year.
b. Provision for Deferred Tax is considered as per the provisions
contained in the Income Tax Act, 1961 and the Rules made there under
and at the rates applicable for the current financial year.
(s) AS 26 Intangible Assets
Cost incurred on preparation of the software is capitalized and
amortized on a straight-line basis over a period of ten years, being
the estimated useful life.
Goodwill arising from acquisition of business is amortized on a
straight-line basis over a period of ten years, being the estimated
useful life.
(t) AS 29 Provisions, Contingent Liabilities and Contingent Assets
There was no Contingent Liabilities during the year.