1.4 Significant Accounting Policies:
The Company has applied following accounting policies to all periods presented in the lnd AS
Financial Statement.
1.5Revenue Recognition:
Revenue is primarily derived from Software development, Consulting and allied services.
Arrangements for software development and related services are either on fixed-price and fixed-
timeframe or on a time and material basis.
Revenue from fixed-price and fixed-time frame contracts, where there is no uncertainty as to
measurement or collectability of consideration is recognised based on percentage-completion
method. Where there is uncertainty as to measurement or collectability revenue recognition is
postponed until such uncertainty is resolved. Revenue from fixed-price maintenance contracts are
recognised rateably over the period in which services are rendered.
1.6 Property, Plant and Equipment:
Property, Plant and Equipment are stated at cost less depreciation. The company capitalizes all
costs incidental to acquisition and installation of Fixed Assets. The residual values, useful lives
and methods of depreciation of property, plant and equipment are reviewed at each financial
year end and adjusted prospectively, if appropriate.
1.7 Preliminary Expenses and Pre-Operative Expenses:
Preliminary Expenses and Pre-Operative Expenses are to be amortized over a period of ten years
from the date of commencement of commercial activities and nothing exists as at the date of
balance sheet.
1.8 Cash and Cash Equivalents:
Cash and cash equivalent in the balance sheet may comprise cash at banks and on hand and
short-term deposits with an original maturity of three months or less, which are subject to an
insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and
cash equivalents may consist of cash and short-term deposits, as defined above.
1.9 Tax on Income:
Current Income tax is determined as the amount of tax payable in respect of taxable income for
the period. 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. Deferred tax assets
are not recognized on unabsorbed depreciation and carry forward of losses unless there is virtual
certainty that sufficient future taxable income will be available against which such deferred tax
assets can be realized.
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