Mar 31, 2013
1. Basis of preparation of financial statements
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention, on the basis of a going concern basis,
while revenue, expenses, assets and Liabilities accounted/recognized on
accrual basis. GAAP comprises mandatory accounting standards issued by
the Institute of Chartered Accountants of India (ICAI), the provisions
of the Companies Act, 1956 and guidelines issued by the Securities and
Exchange Board of India (SEBI). Accounting policies are consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
Management evaluates all recently issued or revised accounting
standards on an ongoing basis.
2. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires Management to make estimates and assumptions that effect the
reported balances of assets and liabilities and disclosures relating to
contingent assets and liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Examples of such estimates include provisions for doubtful
debts, future obligations under retirement benefit plans, income taxes,
post-sales customer support and the useful lives of fixed assets and
intangible assets.
3. Revenue recognition
Revenue from fixed price construction/infrastructure contracts is
recognized by reference to the work certified as completed by the
contractee.
Variations by way of escalation in price and quantum of work are
recognized as revenue in the year in which claims are admitted as per
the terms of contract. Other claims are recognized as revenue from
contracts in the financial statements only upon final acceptance by the
customer.
4. Expenditure
Expenses are accounted on accrual basis and provisions are made for all
known losses and liabilities.
5. Fixed Assets, intangible assets:
Fixed Assets are stated at cost, less accumulated depreciation. All
direct costs are capitalized until fixed assets are ready for use
including taxes, duties, freight and other incidental expenses relating
to acquisition and installation.
6. Depreciation and amortization
Depreciation on fixed assets is applied on straight-line method,
pro-rata for the period of usage, in accordance with the rates
prescribed under schedule XIV of the Companies Act, 1956.
7. Income tax
Income taxes are computed using the tax effect accounting method, in
accordance with the Accounting Standard (AS 22) "Accounting for Taxes
on Income which includes current taxes and deferred taxes. Deferred
income taxes reflect the impact if current year timing differences
between taxable income and accounting income for the year and the
relevant of timing difference of earlier years. Deferred tax asset and
liabilities are measured at the tax rates that are expected to apply to
the period when the asset / liability is realized, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the
balance sheet date. Deferred Tax assets are recognized and carried
forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
8. 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.
9. Investments
Long term trade investments are stated at cost & all other investments
are carried at lower of cost or fair value.
10. 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.
Mar 31, 2010
1. Basis of preparation of financial statements
The accompanying financial statements are prepared in accordance with
Indian Generally Accepted Accounting Principles (GAAP) under the
historical cost convention, on the basis of a going concern basis,
while revenue, expenses, assets and Liabilities accounted/recognized on
accrual basis. GAAP comprises mandatory accounting standards issued by
the Institute of Chartered Accountants of India (ICAI), the provisions
of the Companies Act, 1956 and guidelines issued by the Securities and
Exchange Board of India (SEBI). Accounting policies are consistently
applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use. Management evaluates
all recently issued or revised accounting standards on an ongoing
basis.
2. Use of Estimates
The preparation of financial statements in conformity with GAAP
requires Management to make estimates and assumptions that effect the
reported balances of assets and liabilities and disclosures relating to
contingent assets and liabilities as at the date of the financial
statements and reported amounts of income and expenses during the
period. Examples of such estimates include provisions for doubtful
debts, future obligations under retirement benefit plans, income taxes,
post-sales customer support and the useful lives of fixed assets and
intangible assets.
3. Revenue recognition
Revenue from commission and interest has been recognized on accrual
basis.
4. Fixed Assets, intangible assets:
Fixed Assets are stated at cost, less accumulated depreciation. All
direct costs are capitalized until fixed assets are ready for use
including taxes, duties, freight and other incidental expenses relating
to acquisition and installation.
5. Depreciation and amortization
Depreciation on fixed assets is applied on straight-line method,
pro-rata for the period of usage, in accordance with the rates
prescribed under schedule XIV of the Companies Act, 1956.
6. Income tax
Income taxes are computed using the tax effect accounting method, in
accordance with the Accounting Standard (AS 22) "Accounting for Taxes
on Income" which includes current taxes and deferred taxes. Deferred
income taxes reflect the impact if current year timing differences
between taxable income and accounting income for the year and the
relevant of timing difference of earlier years. Deferred tax asset and
liabilities are measured at the tax rates that are expected to apply to
the period when the asset / liability is realized, based on tax rates
(and tax laws) that have been enacted or substantively enacted at the
balance sheet date. Deferred Tax assets are recognized and carried
forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
7. 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.
8. Investments Long term trade investments are stated at cost a all
other investments are carried at lower of cost or fair value.
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.
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