Mar 31, 2018
1. SIGNIFICANT ACCONTING POLICIES
Statement of Compliance with Ind AS
In accordance with the notification dated 16th February, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) with effect from 1st April, 2016 with restatement of previous year figures presented in this financial statements. Accordingly, the financial statements have been prepared in accordance with Ind AS prescribed under Section 133 of the Companies Act, 2013 ([Act[) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) (Amendment) Rules, 2016.
The Company has adopted all the applicable Ind AS and the adoption was carried out in accordance with Ind AS-101 First time adoption of Indian Accounting Standards.
The transition was carried out from Generally Accepted Accounting Principles in India which comprised of applicable Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India (ICAI), relevant applicable provisions of the Companies Act, 1956, and the Companies Act, 2013 to the extent applicable and the applicable guidelines issued by the Securities and Exchange Board of India (SEBI) (âPrevious GAAP).
These financial statements for the year ended 31st March, 2018 are the first financial statements of the Company prepared in accordance with Ind AS. The date of transition to Ind AS is 1st April, 2016.
All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are approved for issue by the Board of Directors has been considered in preparing these financial statements.
A. Basis of Accounting & Preparation of Financial Statements
These financial statements are prepared on the accrual basis of accounting, under the historical cost convention except for the following:
i) Certain financial assets and financial liabilities measured at fair value;
There is no change in the system of accounting as being consistently followed from earlier years unless otherwise stated.
All assets and liabilities have been classified as current or non-current as per companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of operations and time between procurement of raw material and realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities
B. Use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialised.
C. Property, plant and equipment (PPE) and Capital work-in-progress (CWIP) Transition to Ind AS
The Company has elected to continue with carrying value of all Property, plant and equipment and Capital work-in-progress (CWIP) under the previous GAAP as deemed cost as at the transition date i.e. 1st April, 2016.
Under the previous GAAP, Property, plant and equipment were stated at their original cost (net of accumulated depreciation and impairment) adjusted by revaluation of certain assets.
The Property, plant and equipment (PPE) and Capital work-in-progress (CWIP) are stated at cost net of cenvat credit and/or at revalued price less accumulated depreciation and Accumulated Impairment.
Useful life of assets are considered on the basis of schedule-II of Companies Act 2013.
Subsequent costs are included in the assets carrying amount only when it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably.
D. Leased Assets
Operating Leases: Rentals are expensed with reference to lease terms and other considerations.
E. Intangible Assets Transition to Ind AS:
The Company has elected to continue with carrying value of computer software under the previous GAAP, as deemed cost as at the transition date i.e. 1st April, 2016. Under the previous GAAP, computer software was stated at their original cost (net of accumulated amortization and accumulated impairment, if any).
Intangible assets expected to provide future enduring economic benefits are recorded at the consideration paid for acquisition of such assets and are carried at cost of acquisition less accumulated amortization and impairment, if any.
F. Depreciation and Amortisation
Depreciation on fixed assets is provided to the extent of depreciable amount on straight line method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life. Intangible Assets are amortised over a period of 10 years considering the useful life of the underlying assets on Straight Line Basis.
G. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
H. 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 at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognised as exchange difference
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.
I. Fair value measurement
The Company measures financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the asset or liability; or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
- Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
- Level 2 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.
- Level 3 â Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The management determines the policies and procedures for both recurring fair value measurement, such as derivative instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for distribution in discontinued operations.
External valuers are involved for valuation of significant assets, such as properties. Involvement of external valuers is decided by the management after discussion with and approval by the Company® management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The management decides, after discussions with the Companyâs external valuers, which valuation techniques and inputs to use for each case.
At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Company® accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.
The management, in conjunction with the Companyâs external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
Financial instruments
Financial assets and financial liabilities are recognised in the Balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value.
Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. The financial assets include equity and debt securities, trade and other receivables, loans and advances, cash and bank balances and derivative financial instruments.
Subsequent measurement
For the purpose of subsequent measurement, financial assets are classified in the following categories:
1) At amortised cost,
2) At fair value through other comprehensive income (FVTOCI), and
3) At fair value through profit or loss (FVTPL).
Debt instruments at amortised cost
A [debt instruments measured at the amortised cost if both the following conditions are met:
1) The asset is held within a business model whose objective is to hold the asset for collecting contractual cash flows, and
2) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.
Equity investments
All equity investments in the scope of Ind AS 109 are measured at fair value except in case of investment in subsidiary carried at deemed cost and associate carried at cost.
Deemed cost is the carrying amount under the previous GAAP as at the transition date i.e. 1st April, 2016. Equity instruments included within the FVTPL category, if any, are measured at fair value with all changes recognized in profit or loss. The Company may make an irrevocable election to present in OCI subsequent changes in the fair value.
The Company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable. When the fair value has been determined based on level 3 inputs, the difference between the fair value at initial recognition and the transaction price is deferred and after initial recognition deferred difference is recognised as gain or loss to the extent it arises from change in input to valuation technique. If the Company decides to classify an equity instrument at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI.
There is no recycling of the amounts from OCI to profit or loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.
De-recognition
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.
J. Inventories
Items of inventories are measured at lower of cost and net realisable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, charges in bringing them to their respective present location and condition.
K. Revenue Recognition
Revenue from Fixed Price Software Contracts is recognised principally on the basis of completed Milestones as specified in the contracts.
Software Development and Services are recognised on time basis as per terms of specified contracts
Sale of Software / Hardware products is recognised on the dispatch of goods from company® premises. No provision has been made for possible returns or expenses during the warranty period.
Income from Annual Maintenance Contracts, Web Hosting and Domain Registration are accounted for in the ratio of period expired to the total period of the contract and the amount received from the customers towards the unexpired portion of such contract is treated as advance received.
Interest Income is recognized on time proportion basis.
L. Employee Benefits
(a) Short-term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.
(b) Post employment benefits:
Defined contribution plans:
A defined contribution plan is a post-employment benefit plan under which an entity pays specified contributions to a separate entity and has no obligation to pay any further amounts. The company makes specified monthly contributions towards provident fund. The Companyâs contribution is recognized as an expense in the statement of profit and loss during the period in which employee renders the related service.
Defined benefit plan:
The Companyâs gratuity benefit scheme is a defined benefit plan. The Companyâs net obligation in respect of a defined benefit plan is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
When the calculation results in a benefit to the Company, the recognized asset is limited to the net total of any unrecognized actuarial losses and past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.
Actuarial gains and losses are recognized in the other comprehensive income
Long term employment benefits
The Companyâs net obligation in respect of long-term employment benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using the projected unit credit method and is discounted to its present value and the fair value of any related assets is deducted. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statement and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition of an asset or liability in a transaction (other than a business combination) affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets are recognised for the carry forward of unused tax losses and unused tax credit to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Deferred tax liabilities are generally recognised on all taxable temporary differences.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
P. Estimated fair value of unlisted securities
The fair values of financial instruments that are not traded in an active market and cannot be measured based on quoted prices in active markets is determined using valuation techniques including the net assets value (NAV) model. The Group uses its judgment to select a variety of method / methods and make assumptions that are mainly based on market conditions existing at the end of each financial year. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.
Q. The previous year figures have been regrouped / reclassified, wherever necessary to confirm to the current year presentation.
Mar 31, 2016
A. Basis of Accounting & Preparation of Financial Statements
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standard notified under the Companies (Accounting Standard) Rules, 2006 (As amended) and the relevant provisions of the Companies Act, 1956. The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.
B. Use of Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes amounts added on revaluation, less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
D. Leased Assets
Operating Leases: Rentals are expensed with reference to lease terms and other considerations.
E. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. The cost of intangible assets comprises its purchase price, including any imports duties and other taxes and any directly attributable expenditure on making the assets ready for its intended use and net of any trade discounts and rebates.
F. Depreciation and Amortization
Depreciation on fixed assets is provided to the extent of depreciable amount on straight line method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 over their useful life.
Intangible Assets are amortized over a period of 10 years considering the useful life of the underlying assets on Straight Line Basis.
G. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
H. 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 at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the yearend are restated at year end rates. In case of items which are covered by forward exchange contracts, the difference between the yearend rate and rate on the date of the contract is recognized as exchange difference
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.
I. Investments
Current investments are carried at lower of cost and quoted/fair value, computed category wise. Long Term
Investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.
J. Inventories
Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, charges in bringing them to their respective present location and condition.
K. Revenue Recognition
Revenue from Fixed Price Software Contracts is recognized principally on the basis of completed Milestones as specified in the contracts.
Software Development and Services are recognized on time basis as per terms of specified contracts
Sale of Software / Hardware products is recognized on the dispatch of goods from companyâs premises. No provision has been made for possible returns or expenses during the warranty period.
Income from Annual Maintenance Contracts, Web Hosting and Domain Registration are accounted for in the ratio of period expired to the total period of the contract and the amount received from the customers towards the unexpired portion of such contract is treated as advance received.
Interest Income is recognized on time proportion basis.
L. Employee Benefits
(a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.
(b) Post employment and other long term employee benefits are recognized as an expense in the Profit and Loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Profit and Loss account.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from âtiming differenceâ between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
Mar 31, 2014
A. Basis of Accounting & Preparation of Financial Statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standard notified under the
Companies (Accounting Standard) Rules, 2006 (As amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/ materialised.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
D. Leased Assets
Operating Leases: Rentals are expensed with reference to lease terms
and other considerations.
E. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation / depletion. The cost of intangible
assets comprises its purchase price, including any imports duties and
other taxes and any directly attributable expenditure on making the
assets ready for its intended use and net of any trade discounts and
rebates.
F. Depreciation and Amortisation
Depreciation on fixed assets is provided to the extent of depreciable
amount on straight line method (SLM) at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956 over their useful
life. Intangible Assets are amortised over a period of 10 years
considering the useful life of the underlying assets on Straight Line
Basis.
G. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
H. 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 at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
I. Investments
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost.
Provision for diminution in the value of long-term investments is made
only if such a decline is other than temporary.
J. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, charges in bringing them to their
respective present location and condition.
K. Revenue Recognition
Revenue from Fixed Price Software Contracts is recognised principally
on the basis of completed Milestones as specified in the contracts.
Software Development and Services are recognised on time basis as per
terms of specified contracts Sale of Software / Hardware products is
recognised on the dispatch of goods from companyÂs premises. No
provision has been made for possible returns or expenses during the
warranty period. Income from Annual Maintenance Contracts, Web Hosting
and Domain Registration are accounted for in the ratio of period
expired to the total period of the contract and the amount received
from the customers towards the un-expired portion of such contract is
treated as advance received. Interest Income is recognized on time
proportion basis.
L. Employee Benefits
(a) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss account of the year in which
the related service is rendered.
(b) Post employment and other long term employee benefits are
recognised as an expense in the Profit and Loss account for the year in
which the employee has rendered services. The expense is recognised at
the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to the Profit and
Loss account.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
P. The previous year figures have been regrouped / reclassified,
wherever necessary to confirm to the current year presentation.
Mar 31, 2013
A. Basis of Accounting & Preparation of Financial Statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standard notified under the
Companies (Accounting Standard) Rules, 2006 (As amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles in India
and the provisions of the Companies Act, 1956.
B. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/ materialised.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and includes
amounts added on revaluation, less accumulated depreciation and
impairment loss, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use.
D. Leased Assets
Operating Leases: Rentals are expensed with reference to lease terms
and other considerations.
E. Intangible Assets
Intangible Assets are stated at cost of acquisition net of recoverable
taxes less accumulated amortisation / depletion. The cost of intangible
assets comprises its purchase price, including any imports duties and
other taxes and any directly attributable expenditure on making the
assets ready for its intended use and net of any trade discounts and
rebates.
F. Depreciation and Amortisation
Depreciation on fixed assets is provided to the extent of depreciable
amount on straight line method (SLM) at the rates and in the manner
prescribed in Schedule XIV to the Companies Act, 1956 over their useful
life.
Intangible Assets are amortised over a period of 10 years considering
the useful life of the underlying assets on Straight Line Basis.
G. Impairment of Assets
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
The impairment loss recognised in prior accounting period is reversed
if there has been a change in the estimate of recoverable amount.
H. 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 at the date of the transaction.
(b) Monetary items denominated in foreign currencies at the year end
are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognised as exchange
difference
(c) Non monetary foreign currency items are carried at cost.
(d) Any income or expense on account of exchange difference either on
settlement or on translation is recognised in the Profit and Loss
account except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
I. Investments
Current investments are carried at lower of cost and quoted/fair value,
computed category wise. Long Term Investments are stated at cost.
Provision for diminution in the value of long-term investments is made
only if such a decline is other than temporary.
J. Inventories
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, charges in bringing them to their
respective present location and condition.
K. Revenue Recognition
Revenue from Fixed Price Software Contracts is recognised principally
on the basis of completed Milestones as specified in the contracts.
Software Development and Services are recognised on time basis as per
terms of specified contracts
Sale of Software / Hardware products is recognised on the dispatch of
goods from company''s premises. No provision has been made for possible
returns or expenses during the warranty period.
Income from Annual Maintenance Contracts, Web Hosting and Domain
Registration are accounted for in the ratio of period expired to the
total period of the contract and the amount received from the customers
towards the un-expired portion of such contract is treated as advance
received.
Interest Income is recognized on time proportion basis.
L. Employee Benefits
(a) Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss account of the year in which
the related service is rendered.
(b) Post employment and other long term employee benefits are
recognised as an expense in the Profit and Loss account for the year in
which the employee has rendered services. The expense is recognised at
the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to the Profit and
Loss account.
M. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss account.
N. Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
O. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
P. The previous year figures have been regrouped / reclassified,
wherever necessary to confirm to the current year presentation.
Mar 31, 2012
1. Nature of Operations
The Company is primarily engaged in Software and Hardware product,
System Integration, Enterprises Software, Telecommunication and IT
enabled services etc.
2. Basis of accounting and preparation of financial statement
The financial statements of the company have been prepared in
accordance with the Generally Accepted accounting principles in India
(Indian GAAP) to comply with the accounting standard notified under the
Companies (Accounting Standard) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
costs convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
3. Use of Estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (Including
Contingent liabilities) and the reported income and expenses during the
year. The management believes that the estimates used in the
preparation of the financial statements are prudent and reasonable.
Future results could differ due to these estimates and the difference
between the actual results and the estimates are recognised in the
periods in which the results are materialised.
4. Inventories
Inventories are valued at the lower of cost (On FIFO basis) and the net
realisable value after providing for obsolescence and other losses,
where considered necessary. Costs included all charges in bringing the
goods to the point of sale, including octroi and other levies, transit
insurance and receiving charges.
5. Cash and Cash equivalents (For purposes of Cash Flow Statements)
Cash comprises cash on hand and fixed deposits with banks. Cash
equivalents are short-term (with an original maturity of three months
or less from the date of acquisition), highly liquid investments that
are readily convertible into known amounts of cash and which are
subject to insignificant risks of changes in value.
6. Cash Flow Statement
Cash flows are reported using the indirect method, whereby Profit
before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accrual of past or
future cash receipts or payments. The cash flows from operating,
investing and financial activities of the company are segregated based
on the available information.
7. Depreciation
Tangible Assests: Depreciation has been provided on the SLM method at
the rates prescribed in schedule XIV to the Companies Act, 1956.
Intangible Assets: Softwares & Intellectual Property Rights, Copyrights
and Goodwill are being amortised on Straight Line basis over a period
of 10 years, considering the useful life of assets & their
obsolescence.
8. Revenue Recognition
Revenue from Fixed price Software Contracts are recognised principally
on the basis of completed milestones as specified in the contracts.
Software Development and services are recognised on Time basis as per
the terms of specified contracts. Sale of Software/Hardware products
is recognised on the dispatch of Goods from company's premises. No
provision has been made for possible returns or expenses during the
warranty period.
Income from annual maintenance contracts, web hosting and domain
registration are accounted for in the ratio of period expired to the
total period of the contract and the amount received from the customers
towards the un-expired portion of such contract is treated as advance
received.
Interest Income is recognized on time proportion basis.
9. Tangible Fixed Assets
Fixed assets are stated at cost, less accumulated
depreciation/amortisation and impairment losses, if any. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use. Borrowing costs
relating to acquisition of fixed assets which takes substantial period
of time to get ready for its intended use are also included to the
extent they relate to the period till such assets are ready to be put
to use.
10. Intangible Assets
Intangible assets are carried at cost less accumulated amortisation and
impairments losses, if any. The cost of intangible assets comprises its
purchase price, including any import duties and other taxes and any
directly attributable expenditure on making the assets ready for its
intended use and net of any trade discounts and rebates.
11. Operating Leases
Assets taken on lease (AS-19) under which all significant risks and
awards of ownership are effectively retained by the lessor are
classified as Operating Leases. Lease payments under Operating Leases
are recognized as expenses as incurred in accordance with the
respective Lease agreements.
12. Foreign currency transactions and translations Initial recognition
Transactions in foreign currencies entered into by the Company and its
integral foreign operations are accounted at the exchange rates
prevailing on the date of the transaction or at rates that closely
approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
Foreign currency monetary items (other than derivative contracts) of
the Company and its net investment in non-integral foreign operations
outstanding at the Balance sheet date are restated at the year-end
rates. In the case of integral operations, assets and liabilities
(Other Than Monetary items), are translated at the exchange rate
prevailing on the Balance Sheet date. Non-monetary items are carried at
historical cost. Revenue and expenses are translated at the average
exchange rates prevailing during the year. Exchange differences arising
out of these translations are charged to the statement of profit and
loss.
Treatment of Exchange differences
Exchange differences arising on settlement/restatement of short term
foreign currency monetary assets and liabilities of the Company and its
integral foreign operations are recognised as income or expenses in the
statement of profit and loss. The Exchange differences on
restatement/settlement of loans to non- integral foreign operations
that are considered as net investment in such operations are
accumulated in a Foreign Currency monetary item translation difference
account
13. Investments
Long-Term investments (Excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value.
Cost of investments include acquisition charges such as brokerage, fees
and duties
14. Retirement and other Employee benefits
The Company's contribution to provident fund and superannuation fund
are considered as defined contribution plans and are charged as an
expenses as they fall due based on the amount of contribution required
to be made.
Provident Funds and Employees State Insurance Fund (Defined
Contribution Schemes) are administrated by the Central Government of
India and Contribution to the said funds are charged to profit and loss
account on accrual basis.
For Defined benefit plans in the form of gratuity fund and
post-employment medical benefits, the cost providing benefits is
determined using the projected unit credit method with actuarial
valuation being carried out at the each Balance sheet date. Actuarial
gains and losses are recognised in the statement of profit and Loss in
the period in which they occur.
15. Segment reporting
The Company identifies primary segments based on the dominant sources,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit and loss amounts are evaluated regularly by the Executive
Management.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segment on the basis of their relationship to the operating
activities of the segments
Revenue, expenses, assets and liabilities which relate to the company
as a whole and are not allocable to segment on reasonable basis have
been included under " Unallocated revenue/
expenses/assets/liabilities.
16. Earning per share
Basic Earning per share is computed by dividing the profit after
tax(including the post tax effect of extraordinary items if any) by the
weighted average number of equity shares outstanding during the year.
Diluted earning per share is computed by dividing the profit after tax
(Including the post tax effect of extraordinary items, if any) as
adjusted for dividend, interest and other charges to expenses or income
relating to the dilutive potential equity shares, by the weighted
average number of equity shares considered for deriving basic earning
per share and the weighted average number of equity share which could
have been issued on the conversion of all dilutive potential equity
shares.
17. Taxes on Income
Income tax is accounted for in accordance with Accounting Standard 22
"Accounting for Taxes on Income" as issued by the Institute of
Chartered Accountants of India. Tax expenses comprise both Current and
Deferred tax. Current Tax is measured at the amount expected to be paid
to the Tax Authorities using the applicable tax rates. Deferred Tax
assets and liabilities are recognized for future tax consequences
attributable to timing differences between Taxable Income and
Accounting Income that are capable of reversing in one or more
subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date, the Company reassesses the
un-recognized Deferred tax Assets to the extent they have become
reasonably certain or virtually certain of realization, as the case may
be.
18. Provisions and Contingencies
A provision is recognised when the Company has a present obligation as
a result of past events 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. Provision (excluding retirement
benefits) are not discounted to their present value and are determined
based on the 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 estimation. Contingent
liabilities are not provided in the books of accounts and are disclosed
separately by way of Notes.
19. Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the understated service received is accounted and when there is
no uncertainty in availing / utilising the credits.
20. The balance of Sundry debtors, sundry creditors, loans and
advances, current liability (Including IT park Advances) is subject to
balance confirmation and reconciliation.
21. Previous Period Comparatives
i) Previous period's figures have been regrouped where necessary to
confirm to current period's Classification
ii) Schedule VI of the Companies act 1956 is revised with effect from
1st April'2011 and the adoption of such revised schedule VI has
significantly impacted the presentation and disclosers in the Current
financial statements.
iii) The figures for the current year represent the operations of the
Company including the operations of erstwhile transferor Company
whereas the figures of the previous year represent figures relating to
the operations of the Transferee Company only. To this extent the
figures for the current year are not comparable with the figures of the
previous year.
iv) Schedule VI of the Companies act 1956 is revised with effect from
1st April'2011 and the adoption of such revised schedule VI has
significantly impacted the presentation and disclosures in the current
financial statements.
v) Notes 1 to 29 form an integral part of the Balance Sheet as on 31st
March 2012 and the profit and Loss account for the year ended 31st
March 2012.
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements have been prepared under the Historical
cost convention on accrual basis, in accordance with applicable
accounting standards and the provisions of the Companies Act, 1956.
b) Accounting policies not specifically referred to otherwise are
consistent with generally accepted accounting principles (GAAP).
2. USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP
requires that the management makes estimates and assumptions that
effect the reported amount of assets and liabilities, disclosure of
contingent liabilities as at the date of the financial statements, and
the reported amount of revenues and expenses during the reported year.
Actual results could differ from those estimates.
3. REVENUE RECOGNITION
Revenue from
(i) Fixed Price Software Contracts are recognised principally on the
basis of completed Milestones as specified in the contracts.
(ii) Software Development and Services are recognized on Time Basis as
per terms of specified contracts.
(iii) Sale of Software/Hardware products is recognised on the dispatch
of Goods from companys premises. No provision has been made for
possible returns or expenses during the warranty period.
(iv) Income from annual maintenance contracts, web hosting and domain
registration are accounted for in the Ratio of period expired to the
total period of the contract and the amount received from the customers
towards the un-expired portion of such contract is treated as advance
received.
(v) Interest Income is recognised on time proportion basis
4. FIXED ASSETS
Fixed assets are stated at cost less accumulated depreciation. Cost of
acquisition is inclusive of freight, insurance, duties, installation
expenses and all incidental expenses incurred for bringing the assets
to the working condition required for their intended use.
5. INTANGIBLE ASSETS
Intangible assets are recognized only if it is probable that the future
economic benefits that are attributable to the asset will flow to the
enterprises and the cost of the asset can be measured reliably.
Internally generated intangible asset arising from development activity
are recognized only on demonstration of its technical feasibility, the
intention and ability of the company to complete, use or sell it. The
intangible assets are recorded at cost and are carried at cost less
accumulated amortisation.
6. DEPRECIATION
a) Tangible Assets: Depreciation on tangible fixed assets is provided
on the straight-line method at the rates prescribed in Schedule XIV of
the Companies Act, 1956.
b) Intangible Assets: Softwares & Intellectual Property Rights,
Copyrights and Goodwill are being amortised on straight line basis over
a period of 10 years, considering the useful life of assets & their
obsolescence.
7. IMPAIRMENT OF ASSETS
All assets other than Inventories, Investments and deferred tax assets,
are reviewed for impairment at each balance sheet date, wherever events
or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is charged to the profit & loss
account in the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting period is reversed if
there has been a change in the estimate of recoverable amount.
8. INVESTMENTS
Investments are Long term in nature and are stated at cost. Any decline
other than temporary, in the value of such investments is charged to
the profit & loss account.
9. INVENTORIES
Inventories of finished goods are valued at lower of cost (determined
on the basis of first in first out method) or net realizable value.
10. FOREIGN CURRENCY TRANSACTIONS
Transactions in foreign currencies are recorded at a rate, which
approximates the exchange rate prevailing on the date of the
transaction. Current Assets and liabilities denominated in foreign
currencies are translated at the rate of exchange as at the Balance
Sheet date. Any income or loss on account of exchange difference is
recognized in the Profit & Loss Account.
The operations of the foreign branch of the company are integral to the
operations of the company. Financial statements of the branch are
translated using the same principles & procedures as of Head Office.
11. TAXATION
Income tax is accounted for in accordance with Accounting Standard 22
"Accounting for taxes on Income" as issued by the Institute of the
Chartered Accountants of India. Tax expenses comprise both Current and
Deferred Tax. Current tax is measured at the amount expected to be paid
to / recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to timing differences between taxable Income
and Accounting Income that are capable of reversing in one or more
subsequent periods and are measured using the relevant enacted tax
rates. At each Balance Sheet date, the Company reassesses the
un-recognised Deferred tax Assets to the extent they have become
reasonably certain or virtually certain of realization, as the case may
be.
12. CONTINGENT LIABILITIES
Contingent liabilities are not provided for in the books of account and
are disclosed separately by way of notes to accounts.
13. RETIREMENT BENEFITS
a) Contribution to the Provident Fund and Employees State Insurance is
deposited in accordance with the provisions of the relevant acts and is
charged to Profit and Loss Account.
b) Provision for Gratuity has been made and is charged to Profit & Loss
Account.
c) Leave encashment and other retirement benefits are charged to
revenue on accrual basis.
14. MISCELLANEOUS EXPENDITURE
a) Merger expenses are being written off over a period of five years
b) Other miscellaneous expenses have been written off on the basis as
provided under section 35D of the Income Tax Act, 1961, as amended from
time to time.
15. EARNING PER SHARE
The earnings considered in accounting the companys Earning Per Share
(ÃEPSÃ) comprises the Net Profit after tax. The number of shares used
in computing Basic & Diluted EPS is the weighted average no. of equity
shares outstanding during the year.
16. CASH FLOW STATEMENT
The Cash Flow Statement has been prepared under the indirect method as
set out in the (AS-3), "Cash Flow Statement" issued by the Institute of
Chartered Accountants of India.
17. OPERATING LEASES
Assets taken on Lease under which all significant risks and rewards of
ownership are effectively retained by the lessor are classified as
Operating Leases. Lease payments under Operating Leases are recognized
as expenses as incurred in accordance with the respective Lease
Agreements.