Mar 31, 2016
COMPANY INFORMATION & ACCOUNTING POLICIES
Company Information
Unisys Softwares & Holding Industries Limited (referred to as âCompanyâ) has been incorporated on 1st October 1992 vide CIN L51909WB1992PLC056742 having registered office at 75-C, Park Street, Kolkata-700 016. It is a Public limited company by its shares.
The Company is one of the RBI registered NBFC. Besides carrying financing activities, the company also operates in Capital Market and Commodity Market. The activities of the company includes financing, trading, investing in shares & other securities and other related activities of capital market as well as Commodity Market. The Company is also doing trading activities in Mobile Software popularly known as MVAS.
ACCOUNTING POLICIES
Basis of 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) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. Further in view of the revised schedule VI of the Companies Act, 2013 and the guidelines issued by the Securities and Exchange Board of India (SEBI) to the extent applicable. The financial statements are presented in Indian rupees rounded off to the nearest rupee.
Use of Estimates
The preparation of financial statements in conformity with the generally accepted accounting principles require judgment estimates and assumptions to be made that affect the reported amount of assets and liabilities, revenues and expenses and disclosure of contingent liability on the date of the financial statements and results of operations during the reporting year end. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.
Cash Flow Statement
As required by Accounting Standard-3 âCash Flow Statementâ issued by âThe Institute of Chartered Accountants of Indiaâ the Cash Flow for the period is reported using indirect method. The Cash and Cash Equivalent of the Company comprises of Cash in hand and Current account with Scheduled Banks.
Fixed Assets & Depreciation on Tangible Assets
All assets held with the intention of being used for the purpose of providing services and not for sale in the normal course of business are recognized as Fixed Assets and are stated at cost less accumulated depreciation after considering lease adjustment account. All costs including finance cost attributable to fixed assets till assets are ready for intended use are capitalized.
Depreciation and Amortization of Tangible Assets
Depreciation on tangible assets is calculated on a pro-rata basis on the Written Down Value Method at the rates prescribed under Schedule II to the Companies Act, 2013 with the exception of the following
- Assets costing Rs. 5,000/- or less are fully depreciated in the year of purchase.
Intangible Assets & Amortization
Intangibles assets are stated at cost less accumulated amortization. Intangibles assets are stated at cost less accumulated amortization. Intangible assets are amortized on a straight line basis over the estimated useful economic life. The Company uses a rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use. All intangible assets are assessed for impairment whenever there is an indication that the intangible asset may be impaired.
Revenue Recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized
a) Revenue from sales is recognized when significant risk and rewards in respect of ownership of the products are transferred, recovery of the consideration in reasonably certain. Revenue from sale of goods includes excise duty, sales tax and is net of returns.
b) Revenue from sales is recognized on dispatch of products from the Companyâs Office / Shop / Godown and in case of consignment sale, on further sale made by the agents.
c) Profit / loss earned on sale of investment/inventories are recognized on trade date basis. Profit/Loss on sale of Investment/inventories is determined on basis of FIFO cost of the investment sold.
Other Income Recognition
Interest on investments and Loans and Advances is booked on a time proportion basis taking into account the amounts invested or loan given and the rate of interest.
Dividend income is recognized when the right to receive payment is established.
Foreign Currency Transactions
Foreign currency transactions are recorded in the books at exchange rates prevailing on the date of the transaction.
Exchange differences arising on foreign exchange transactions settled during the period are recognized as income or expense in the statement of profit and loss of the same period.
Foreign currency assets and liabilities are translated at the period end rates and the resultant exchange differences, are recognized in the statement of profit and loss.
Borrowing Cost :
Borrowing Costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as the cost of the respective assets until the time all subs activities necessary to prepare the qualifying assets intended use are complete. Other Borrowing Costs are charged to the Statement of Profit and Loss in the period in which they are incurred.
Retirement and other Employees benefits :
All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.
Post Employment Benefits
1. P. F. and E.S.I.C Scheme is not applicable to the company.
2. Gratuity is accounted when an employee works for more the 6 months.
Inventories
Inventories are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present location and condition. Costs of consumable and trading products are determined by using the First-In First-Out Method (FIFO).
Investments
Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as non-current investments.
Long-term Investments 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. Costs of investments include acquisition charges such as brokerage, fees and duties.
Cash & Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.
Impairment of Assets
The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the statement of profit and loss. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.
Taxes on Income
Provision for current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences between book and tax profits, which are capable of reversal in one or more subsequent years is recognized using tax rate and tax laws that have been enacted or subsequently enacted. Deferred tax asset in respect of unabsorbed depreciation and carry forward losses are not recognized unless there is sufficient assurance that there will be sufficient future taxable income available to realize such losses.
Earnings per Share
Basic Earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
Stock In Trade
Stock-in-trade of tradable goods and shares are valued at cost.
Contingent Liabilities & Provisions
A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its present value and is determined based on the best estimate required to settle the obligation at the yearend date.
These are reviewed at each year end date and adjusted to reflect the best current estimate.
Other Notes & Additional Information Forming Part of Financial Statements
a) In the opinion of the management, current assets, loans and advances and other receivables have realizable value of at least the amounts at which they are stated in the accounts.
b) Previous year figures have been restated to conform to the classification of the current year.
c) Balances of Sundry Debtors, Unsecured Loans, and Sundry Creditors are Loans & Advances are subject to reconciliation, since conformations have not been received from them. Necessary entries will be passed on receipt of the same if required.
d) The company has not provided for Gratuity and Leave Encashment to Employees on accrual basis, which is not in conformity with AS-15 issued by ICAI. However, in the opinion of management the amount involved is negligible and has no impact on Statement of Profit & Loss.
Provisions, Contingent Liabilities & Contingent Assets
1. Disclosures in terms of Accounting Standards (AS 29) Provisions, Contingent Liabilities and Contingent Assets issued by the Institute of Chartered Accountants of India :
2. 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 the obligation.
3. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.
4. Contingent Assets are neither recognized nor disclosed.
Segment Report
5. Based on the Similarity of activities, risks and reward structure, organization structure and internal reporting systems, the Company has structured its operations into the following Segment :-
a. Trading in Software & Hardware Products
b. Investments in Capital Market & Mutual Fund related activities
6. In the opinion of the Board, Current Assets, Loans and Advances are approximately of the value state, if realized in the ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount considered necessary for the same.
Contingent Liabilities
7. Contingent Liabilities not provided for â Rs. Nil
Related Party Transactions
8. Key Management Personnel â
a. Mr. Jagdish Prasad Purohit - Managing Director
b. Mr. Sushil Kr. Purohit - Director
c. Mr. Naresh Sharma - CFO
d. Ms. Vijay Laxmi Purohit - Company Secretary & Compliance Officer
9. Subsidiary Company â
Not Any
10. Group Companies or Companies under same management â
1. Blue Circle Services Limited
2. Prime Capital Market Limited
3. JMD Ventures Limited
4. JMD Sounds Limited
5. Scan Infrastructures Limited
6. Warner Multimedia Limited
Deferred Tax on Income
12. Deferred Tax Asset (Net) for the year ended 31st March 2016 amounts to Rs. 17.16 lac.
13. There are no Micro and Small Scale Business Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2016. This information as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.
14. Previous yearsâ figures have been regrouped, rearranged wherever necessary to make them comparable with those of current year.
Mar 31, 2015
Company Information
The company is incorporated on 1st October 1992 at Calcutta, West
Bengal, India. It is a Public limited company by its shares. The
company operates in Capital Market and Commodity Market. The activities
of the company includes trading, investing in shares & other securities
and other related activities of capital market as well as Commodity
Market. The Company is also doing trading activities in Mobile Software
popularly known as MVAS.
ACCOUNTING POLICIES
Basis of preparation of Financial Statements
These financial statements have been prepared to comply in all material
aspects with applicable accounting principles in India, the applicable
Accounting Standards prescribed under Section 133 of the Companies Act,
2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014,
the provisions of the Act (to the extent notified) and other counting
principles generally accepted in India, to the extent applicable.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. Based
on the nature of products and the time between acquisition of assets
for processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current/non-current classification of assets and
liabilities.
Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted principles requires the management to make estimates
and assumptions that effect the reported amount of assets, liabilities,
revenues and expenses and disclosure of contingent assets and
liabilities. The estimates and assumptions used in the accompanying
financial statements are based upon management's evaluation of the
relevant facts and circumstances as of the date of the financial
statements. Actual results may differ from that estimates and
assumptions used in preparing the accompanying financial statements.
Any differences of actual results to such estimates are recognized in
the period in which the results are known / materialized.
Cash Flow Statement
Cash flow statement has been prepared in accordance with the "indirect
method" as explained in the AS-3 issued by the Institute of Chartered
Accountants of India.
Fixed Assets
Tangible assets are stated at acquisition cost, net of accumulated
depreciation and accumulated impairment losses, if any. Subsequent
expenditures related to an item of tangible 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.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their book value and net
realisable value and are shown separately in the financial statements
under Other Current Assets. Losses arising from the retirement of, and
gains or losses arising from disposal of fixed assets which are carried
at cost are recognised in the profit and loss account.
Depreciation and Amortisation of Tangible Assets :
Depreciation on tangible assets is calculated on a pro-rata basis on
the Written Down Value Method at the rates
prescribed under Schedule II to the Companies Act, 2013 with the
exception of the following:- i. assets costing Rs. 5,000/- or less are
fully depreciated in the year of purchase.
Intangible Assets & Amortisation
Intangibles assets are stated at cost less accumulated amortisation.
Intangibles assets are stated at cost less accumulated amortisation.
Intangible assets are amortized on a straight line basis over the
estimated useful economic life. The Company uses a rebuttable
presumption that the useful life of an intangible asset will not exceed
ten years from the date when the asset is available for use. All
intangible assets are assessed for impairment whenever there is an
indication that the intangible asset may be impaired.
Revenue Recognition
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized
a) Revenue from sales is recognized when significant risk and rewards
in respect of ownership of the products are transferred, recovery of
the consideration in reasonably certain. Revenue from sale of goods
includes excise duty, sales tax and is net of returns.
b) Revenue from sales is recognized on dispatch of products from the
Company's Office / Shop / Godown and in case of consignment sale, on
further sale made by the agents.
c) Profit / loss earned on sale of investment/inventories are
recognised on trade date basis. Profit/Loss on sale of
Investment/inventories is determined on basis of FIFO cost of the
investment sold.
Other Income Recognition
Interest on investments and Loans and Advances is booked on a time
proportion basis taking into account the amounts invested or loan given
and the rate of interest.
Dividend income is recognized when the right to receive payment is
established.
Foreign Currency Transactions :
Foreign currency transactions are recorded in the books at exchange
rates prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the period are
recognized as income or expense in the profit and loss account of the
same period.
Foreign currency assets and liabilities are translated at the period
end rates and the resultant exchange differences, are recognized in the
profit and loss account.
Borrowing Cost :
Borrowing Costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized as the cost of the
respective assets until the time all subs activities necessary to
prepare the qualifying assets intended use are complete. Other
Borrowing Costs are charged to the Profit and Loss Account in the
period in which they are incurred.
Retirement and other Employees benefits :
All employee benefit obligations payable wholly within twelve months of
the rendering the services are classified as Short Term Employee
Benefits. Such Benefits are estimated and provided for in the period in
which the employee renders the related service.
Post Employment Benefits
1. P.F. and E.S.I.C Scheme is not applicable to the company.
2. Gratuity is accounted when an employee works for more the 6 months.
Inventories
Inventories are measured at lower of the cost and net realizable value.
Cost of inventories comprises all costs of purchase (net of input
credit) and other costs incurred in bringing the inventories to their
present location and condition. Costs of consumable and trading
products are determined by using the First-In First-Out Method (FIFO).
Investments
Current investments are stated at the lower of cost and fair value.
Long-term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of
long-term investments. Investments are classified into current and
long-term investments.
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments.
Cash & Cash Equivalents
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the assets belongs is less than the carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as impairment loss and is recognized in the profit
and loss account. If at the balance date there is an indication that if
a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the assets is reflected at the recoverable
amount.
Taxes on Income
Provision for current Income Tax is made on the taxable income using
the applicable tax rates and tax laws. Deferred tax assets or
liabilities arising on account of timing differences between book and
tax profits, which are capable of reversal in one or more subsequent
years is recognized using tax rate and tax laws that have been enacted
or subsequently enacted. Deferred tax asset in respect of unabsorbed
depreciation and carry forward losses are not recognized unless there
is sufficient assurance that there will be sufficient future taxable
income available to realize such losses.
Earnings per Share
Basic earnings per share is calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
Stock In Trade
Shares are valued at cost or market value, whichever is lower. The
comparison of Cost and Market value is done separately for each
category of Shares.
Contingent Liabilities & provisions
A provision is recognised when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. Provision is not discounted to its
present value and is determined based on the best estimate required to
settle the obligation at the yearend date.
These are reviewed at each year end date and adjusted to reflect the
best current estimate.
Mar 31, 2014
General
Basis of Preparation of Financial Statements
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
FixedAssets
2. All Fixed Assets are stated at Cost less accumulated Depreciation.
Costs include purchase price and all other attributable costs of
bringing the assets to working condition for intended use.
Depreciation
3. Depreciation on all assets is charged proportionately from the date
of acquisition/installation on written down value method at rates
prescribed in Schedule XIV of the Companies Act, 1956. Assets costing
less than Rs. 5000/- individually have been fully depreciated in the
year of purchase.
Investments
4. Stock/Securities acquired and intended to be held for a longer
period are classified as Investments.
5. Investments are valued at cost of acquisition with the provision
where necessary for diminution, other than temporary, in the value of
investments.
Revenue Recognition
7. Income is accounted on accrual basis except Dividend.
Retirement Benefit
8. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
9. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22 "Accounting for Taxes on Income"
issued by the Institute of Chartered Accountants of India.
10. Tax expenses comprise of current and deferred tax.
11. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
12. Deferred Tax is recognized subject to the consideration of
prudence on timing differences, being the difference between taxable
Income and Accounting Income that originate in one period and are
capable of reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
Disclosures in terms of Accounting Standards (AS 29) Provisions,
Contingent Liabilities and Contingent Assets issued by the Institute of
Chartered Accountants of India:-
13. 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 the
obligation.
14. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
15. Contingent Assets are neither recognized nor disclosed.
NBFC Companies
16. Information as required in terms of paragraph 13 of Non Banking
Financial (Non Deposit accepting or holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007 is given in separate annexure.
Others
17. None of the Raw Materials, Stores, Spares and Components consumed
or purchased during the year have been imported.
18. None of the Earnings / Expenditures is in Foreign Currency.
19. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
20. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
necessary.
21. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
Segment Report
22. Segment reporting as defined in Accounting Standard 17 as the
Company was primarily engaged in the business of Software and hardware
and Mobile phones trading. (Segment Report as under)-
Rs. in Lac
1. Segment Revenue
Sale of Software & Hardware/Mobile 38538.18
Investment Activities 45.18
Other Operational Activities 150.00
Total - 38733.36
2. Segment Profit
Sale of Software & Hardware/Mobile 55.00
Investment Activities (123.53)
Other Unallocated Activities 150.00
Total - 81.47
3. Capital Employed
Software & Hardware/Mobile 3793.90
Investment Activities 29385.73
Other Unallocated Activities 135.35
Total - 33314.98
Mar 31, 2013
General
Basis of Preparation of Financial Statements
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Fixed Assets
2. All Fixed Assets are stated at Cost less accumulated Depreciation.
Costs include purchase price and all other attributable costs of
bringing the assets to working condition for intended use.
Depreciation
3. epreciation on all assets is charged proportionately from the date
of acquisition/ installation on written down value method at rates
prescribed in Schedule XIV of the Companies Act, 1956. Assets costing
less than Rs. 5000/- individually have been fully depreciated in the
year of purchase.
Investments
4. Stock/Securities acquired and intended to be held for a longer
period are classified as Investments.
5. Investments are valued at cost of acquisition with the provision
where necessary for diminution, other than temporary, in the value of
investments.
Revenue Recognition
6. Income is accounted on accrual basis except Dividend.
Retirement Benefit
7. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
8. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22- "Accounting for Taxes on
Income" issued by the Institute of Chartered Accountants of India.
9. Tax expenses comprise of current and deferred tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Tax is recognized subject to the consideration of
prudence on timing differences, being the difference between taxable
Income and Accounting Income that originate in one period and are
capable of reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
Disclosures in terms of Accounting Standards (AS 29) Provisions,
Contingent Liabilities and
Contingent Assets issued by the Institute of Chartered Accountants of
India :-
12. 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 the
obligation.
13. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
14. Contingent Assets are neither recognized nor disclosed.
NBFC Companies
15. Information as required in terms of paragraph 13 of Non Banking
Financial (Non Deposit accepting or holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007 is given in separate annexure.
Others
16. None of the Raw Materials, Stores, Spares and Components consumed
or purchased during the year have been imported.
17. None of the Earnings / Expenditures is in Foreign Currency.
18. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
19. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
necessary.
20. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
Segment Report
21. Segment reporting as defined in Accounting Standard 17 as the
Company was primarily engaged in the business of Software and hardware
and Mobile phones trading. (Segment Report as under)-
Mar 31, 2012
Basis of Preparation of Financial Statements
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Fixed Assets
2. All Fixed Assets are stated at Cost less accumulated Depreciation.
Costs include purchase price and all other attributable costs of
bringing the assets to working condition for intended use.
Depreciation
3. Depreciation on all assets is charged proportionately from the date
of acquisition/installation on written down value method at rates
prescribed in Schedule XIV of the Companies Act, 1956. Assets costing
less than Rs. 5000/- individually have been fully depreciated in the year
of purchase.
Investments
4. Stock/Securities acquired and intended to be held for a longer
period are classified as Investments.
5. Investments are valued at cost of acquisition with the provision
where necessary for diminution, other than temporary, in the value of
investments.
Revenue Recognition
6. Income is accounted on accrual basis except Dividend. Retirement
Benefit
7. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
8. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22- "Accounting for Taxes on
Income" issued by the Institute of Chartered Accountants of India.
9. Tax expenses comprise of current and deferred tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Tax is recognized subject to the consideration of prudence
on timing differences, being the difference between taxable Income and
Accounting Income that originate in one period and are capable of
reversal in one or more subsequent periods.
Mar 31, 2011
GENERAL
Basis of Preparation of Financial Statements
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Fixed Assets
2. All Fixed Assets are stated at Cost less accumulated Depreciation.
Costs include purchase price and all other attributable costs of
bringing the assets to working condition for intended use.
Depreciation
3. Depreciation on all assets is charged proportionately from the date
of acquisition/ installation on written down value method at rates
prescribed in Schedule XIV of the Companies Act, 1956. Assets costing
less than Rs. 5000/- individually have been fully depreciated in the
year of purchase.
Investments
4. Stock/Securities acquired and intended to be held for a longer
period are classified as Investments.
5. Investments are valued at cost of acquisition with the provision
where necessary for diminution, other than temporary, in the value of
investments.
Revenue Recognition
6. Income is accounted on accrual basis except Dividend.
Retirement Benefit
7. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
8. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22- "Accounting for Taxes on
Income" issued by the Institute of Chartered Accountants of India.
9. Tax expenses comprise of current and deferred tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Tax is recognized subject to the consideration of prudence
on timing differences, being the difference between taxable Income and
Accounting Income that originate in one period and are capable of
reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
Disclosures in terms of Accounting Standards (AS 29) Provisions,
Contingent Liabilities and Contingent Assets issued by the Institute of
Chartered Accountants of India :- 12. 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 the obligation.
13. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
14. Contingent Assets are neither recognized nor disclosed.
NBFC Companies
15. Information as required in terms of paragraph 13 of Non Banking
Financial (Non Deposit accepting or holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007 is given in separate annexure.
Others
16. None of the Raw Materials, Stores, Spares and Components consumed
or purchased during the year have been imported.
17. None of the Earnings / Expenditures is in Foreign Currency.
18. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
19. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
necessary.
20. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
Segment Report
21. Segment reporting as defined in Accounting Standard 17 as the
Company was primarily engaged in the business of Software and hardware
and Mobile phones trading. (Segment Report as under).
Mar 31, 2010
Basis of Preparation of Financial Statements
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Fixed Assets
2. Fixed Assets are stated at cost less Depreciation, cost comprises
of the purchases price and other attributable costs. Depreciation on
assets is provided on written down value method as per rates prescribed
in Schedule XIV to the Companies Act 1956.
Depreciation
3. No Depreciation has been provided during the year due to lack of
any Fixed Assets with the Company.
Inventories
4. Inventories of Work-in-Progress, Raw Materials, Stores and Spares
and Finished Goods are valued at cost and the same is done on FIFO
basis. Stock of Shares is valued at cost.
Investments
5. Stock / Securities acquired and intended to be held for a longer
period are classified as Investments.
6. Investments are valued at cost of acquisition with the provision
where necessary for diminution, other than temporary, in the value of
investments.
Revenue Recognition
7. Income is accounted on accrual basis except Dividend.
Retirement Benefit
8. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
9. Tax expenses comprise of current, deferred and fringe benefit tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Tax is recognized subject to the consideration of
prudence on timing differences, being the difference between taxable
Income and Accounting Income that originate in one period and are
capable of reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
12. 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 the
obligation.
13. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
14. Contingent Assets are neither recognized nor disclosed.