Accounting Policies of Zenith Infotech Ltd. Company

Sep 30, 2012

Not Available

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Mar 31, 2010

A) Basis of Preparation of Financial Statements

a) The Financial Statements have been prepared under the historical convention, in accordance with the generally accepted accounting policies and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed by the Company.

B) Fixed Assets and Depreciation

a) Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. All costs including financing costs till commencement of commercial production are capitalised.

b) Depreciation on Fixed Assets, except Computers (Hardware & Software), is provided on the basis of Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. During the year depreciation on Computers (Hardware & Software) is provided on the basis of Written Down Value method, at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 vis-a-vis Straight Line method adopted in the previous years

c) The exceptional items represent depletion and arrears of depreciation in respect of Computers (Hardware & Software) resulting from change in the method of charging depreciation from Straight Line method to Written Down Value method.

C) Foreign Exchange Transactions

a) Transactions denominated in Foreign Currencies are normally recorded at the exchange rate prevailing at the time of the transactions.

b) Gains and losses on Foreign Exchange Transactions other than those relating to fixed assets are charged to the Profit and Loss Account.

c) The balances outstanding in the foreign currency denominated Current Assets and Current Liabilities are restated as per AS11 as at the Balance Sheet date at the then prevailing foreign exchange rate and are recognized in the accounts.

D) Investments

Investments are stated at cost.

E) Inventories * Inventories are valued at cost

F) Sales

Sales are accounted net of trade discounts and returns.

G) Employee Retirement Benefits

a) Companys contributions to Provident fund, during the year, are charged to Profit and Loss Account.

b) Gratuity is charged to Profit and Loss account on the basis of actuarial valuation as required by AS15 issued by ICAI.

H) Research and Development Expenses

Expenditure related to Capital items is debited to fixed assets and depreciated at applicable rates. Revenue expenditure is charged to Profit and Loss Account to the relevant heads of account.

I) Taxation

1. No provision for Deferred Taxation under AS 22 issued by ICAI has been made in the annual accounts, due to the deduction available to the Company under Section 10A of the Income tax Act, 1961.

2. Appropriate provision for taxation for the current year has been made in the accounts.