Mar 31, 2015
2.1 Basis of Preparation of Financial Statements
These financial statements have been prepared to comply with Generally
Accepted Accounting Principles in India (Indian GAAP) including the
Accounting Standards notified under the relevant provisions of the
Companies Act 2013.
These Financial Statements are prepared on accrual basis under
historical cost convention. These Financial Statements are presented in
Indian Rupees rounded off to the nearest Rupees.
2.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires judgements, estimates and assumptions to be made that affect
the reported amounts of assets and liabilities, disclosure of
contingent liabilities on the date of financial statements and reported
amount of revenue and expenses during the reporting period. Difference
between actual results and estimates are recognised in the period in
which the results are known.
2.3 Fixed Assets
a. Tangible Assets
Tangible Assets are stated at cost of acquisition along with related
taxes, duties and incidental expenses related to these assets, net of
accumulated depreciation and accumulated impairment, if any.
b. Intangible Assets
Intangible Assets are stated at their cost of acquisition, net of
accumulated amortisation and accumulated impairment, if any. Projects
whose technical & commercial feasibility is demonstrated, future
economic benefits are probable, the company has an intention and
ability to complete and use or sell the asset, and cost can be measured
reliably, are shown as Intangible Assets under Development.
c. Subsequent expenditures related to an item of fixed asset are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
d. Gain/losses arising from disposal of fixed assets are recognised in
the Statement of Profit and Loss.
2.4 Depreciation & Amortization
Tangible Assets - Depreciation on tangible assets is provided on the
straight-line method over the useful life of the assets as prescribed
in the Schedule II to the Companies Act 2013 except in respect of the
following assets:
Client Computer - 5 years*
Intangible assets are amortised over their respective individual
estimated useful lives on straight line basis, commencing from the date
asset is available for use to the company.
Computer Software - 6 Years*
Web Properties - 10 Years*
(*Note: for this based on internal assessment and independent technical
evaluation carried out by external valuer, the management believes that
the useful life as given above best represents the period over which
management expects to use the assets.)
2.5 Impairment
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to Profit
& Loss Statement in the year in which asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimated recoverable amount.
2.6 Foreign Currency Transactions
a. Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate as at the date of transaction.
b. Any income or expenses on account of exchange differences either on
settlement or translation/restatement is recognised in the Profit and
Loss statement .
2.7 Income Taxes
Tax expense comprises of current tax & deferred tax. Income taxes are
accrued in the same period that the related revenue and expenses arise.
A provision is made for income tax, based on the tax liability
computed, after considering tax allowances and exemptions. Minimum
Alternate Tax (MAT) paid in accordance with the tax laws, which gives
rise to future economic benefits in the form of tax credit against
future income tax liability, is recognized as an asset in the Balance
Sheet if there is convincing evidence that the Company will pay normal
tax after the tax holiday period and the resultant asset can be
measured reliably.
The differences that result between the profit considered for income
taxes and the profit as per the financial statements are identified,and
thereafter a deferred tax asset or liability is recorded for timing
differences, namely the differences that originate in one accounting
period and reverse in another, based on the tax effect of the aggregate
amount of timing difference. Deferred tax assets are recognized only if
there is virtual certainty supported by convincing evidence that
sufficient future taxable income will be available against which such
deferred tax asset can be realized. Deferred tax assets, other than in
situation of unabsorbed depreciation and carried forward business
losses, are recognized only if there is reasonable certainty that they
will be realized. Deferred tax assets are reviewed for the
appropriateness of their respective carrying values at each reporting
date. Deferred tax assets and liabilities have been offset wherever the
Company has a legally enforceable right to set off current tax assets
against current tax liabilities and where the deferred tax assets and
liabilities relate to income taxes levied by the same taxation
authority.
2.8 Investments
Current Investments, if any, are stated at cost or fair market value,
whichever is lower. Non current investments are stated at cost.
Provision for diminution in the value of N on current investments is
made, only if a decline is other than temporary.
2.9 Provisions & Contingent Liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that is reasonably estimable, and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability.
A disclosure for a contingent liability is also made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. Where there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
2.10 Revenue Recognition
The company's revenue is recognized to the extent that it is probable
that the economic benefits will flow to the company and the revenue and
costs, if applicable, can be measured reliably. Revenue is recognized
in the Statement of Profit & Loss as follows:
* Revenue from services rendered is recognized as the service is
performed.
* Revenue from the sale of Software products is recognized when the
sale is completed with the passing of title.
* Incomes from domain registration, web hosting, set-up and
configuration charges are recognized on activation of customer account.
* Revenue from software and web development contracts are recognized
on the completion of development work.
* Interest income is recognised on accrual basis.
2.11 Earning Per Share
Basic earnings per share is computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period.
Mar 31, 2014
The significant accounting policies adopted in the preparation of this
financial report are set out below and are consistent with those of the
previous year unless otherwise stated.
1.1 Basis of Presentation :
The financial statements are prepared under the historical cost
convention, in accordance with Indian Generally Accepted Accounting
Principles ("GAAP") on the accrual basis. GAAP comprises mandatory
accounting standards issued by the Institute or Chartered Accountants
of India ("lCAl") and the provisions of the Companies Act, 1956, These
accounting policies have been consistently applied for except primary
market brokerage which is accounted on cash basis All assets and
liabilities have been classified as current or non-current as per the
company''s operating cycle and other criteria set out in the Schedule VI
to the Companies Act, 1956.
1.2 Fixed Assets:
Fixed Assets are stated at cost of acquisition including any
attributable cost to bring the assets to their working condition, less
depredation which is provided using the straight-line method based on
useful lives as estimated by the management. Intangible assets are
stated, at their cost of acquisition. Profit/Loss on disposal of fixed
assets is recognised In the Statement of Profit and Loss.
1.3 Depreciation:
Depreciation on assets for own use is provided on straight-line method
on pro-rata basis at the rates prescribed in Schedule XIV to the Act.
No depreciation charged on Assets not put in to use during the year.
The assets which have been used by the company for tunning its revenue
operations have been charged to the revenue account and the
depreciation on rest of the assets used for development of portals is
being capitalized.
1.4 Valuation of stock-in-trade :
Stock-in-Trade is valued at cost or market value whichever is lower
1.5 Revenue Recognition :
The company''s revenue is recognized to the extent that it is probable
that the economic benefits will flow to the company and the revenue and
costs, if applicable, can be measured reliably. Revenue is recognized
in the Income Statement as follows:
(i) Revenue from services rendered is recognized as the service is
performed.
(ii) Revenue from the sale of Software products is recognized when the
sale is completed with the passing of title.
(iii) Incomes from domain registration, web hosting, set-up and
configuration charges are recognized on activation of customer account.
(iv) Revenue from software and web development contracts are period on
the completion of development work.
1.6 Investments ;
Long term investments are stated at cost. Provision for diminution in
long term investments is made, if it is permanent. Short term
investments if any are stated at cost or fair market value whichever is
lower. Sale and Purchase of investment is accounted on gross basis and
shown in profit and loss account.
1.7 Capital work in progress;
The company is in process developing certain web portals/vortals and
the expenditure on the same is being treated as Capital Work in
progress like expenditure in the nature of salaries, travel expenses,
internet expenses, server maintenance expenses etc. The expenditure on
completion of the project (web portals), will be treated as intangible
assets as the company expects to derive benefits of the same in the
coming future years.
1.8 Foreign Exchange :
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing at the time in a month. Any income or expense
on account of exchange rates prevailing at the time in a month. Any
income or expense on account of exchange differences either on
settlement or on translation of transaction other than those relating
to fixed assets is recignized in the Profit and Loss in the foreign
fluctuation account. Closing foreign balances are recognised at the
prevailing market rate at the end of the day 31st March and difference
if any is charged to foreign fluctuations.
1.9 Taxation:
Tax expense comprises of current tax and deferred tax, Current tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the taxation laws prevalling in the respective
jurisdictions. Current tax assets and crrent tax liabilities are offset
when them is a legally enforceable right to set off the recognized
amounts and there is an intention to settle the asset and the liability
on a net basis, Deferred tax reflects the effect of temporary timing
differences between the assets and liablilities recognized for
financial reporting purposes and the amounts that are recognized for
current tax purposes.
Deferred tax assets are recognized and carried forward only to the
extent there is a reasonable/virtual certainty that sufficient future
taxable income will be available against which such deferred tax asset
can be realized.
1.10 Provisions and Contingencies :
The Company creates a provision when there is a present obligation as a
result of past event that probably requires an outflow of resources and
a reliable estimate can be made of the amount of obligation. A
disclosure of contingent liability is made when there is a possible
obligation or a present obligation that will probably not require
outflow of resources or where a reliable estimate of the obligation
cannot be made.
1.11 Earnings per Share :
The earnings considered in ascertaining the Company''s earnings per
share comprise the net profit or loss for the year attributable to the
equity shareholders. Earnings per share is computed using the weighted
average number of shares outstanding during the year.
1.12 Use of Estimates :
The preparation of financial statements in conformity with accounting
principles generally accepted in India requires the Management to make
estimates and assumptions that affect the reported amount of assets and
liabilities as at the Balance Sheet date, reported amount of revenue
and expenses for the year and disclosures of contingent liabilities as
at the Balance Sheet date. The estimates and assumptions used in the
accompanying financial statements are based upon Management''s
evaluation of the relevant facts and circumstances as at the date of
the financial statements. Actual results could differ from these
estimates.
1.13 Terms/Rights attached to equly share
The company has only one class of equity shares having a par value of
Rs. 10/- per share. Each holder of equity shares is entitled to one
vote per share. The company declares and pay dividend in Indian rupees.
In the event of liquidation, the equity shareholders are eligible to
receive the remaining assets of the company in proportion to their
shareholding.
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