| a. Basis of preparation of financial statements
These financial statements have been prepared to comply in all
material respects with the accounting principles generally accepted in
India (Indian GAAP) including the Accounting Standards notified under
the relevant provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accountings policies have been consistently
applied by the company and are consistent with those used in the
previous period.
b. Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make judgments,
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date
of the financial statements and the results of operations during the
reporting year end. Although these estimates are based upon
management's best knowledge of current events and actions, belief that
these estimates are reasonable and prudent, actual results may differ
from estimates.
c. Revenue Recognition
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection. Revenue from
operation includes sale of services.
d. Cash flow
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
e. Segmental reporting
Operations of the company consist of one segment i.e. Software
Development. Thus AS -17 is not applicable to the company from the
current year.
f. Earnings Per Share
Earnings per Share has been computed in accordance with Accounting
Standard 20 - "Earning Per Share" by dividing the net profit or loss
for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. The
earnings considered for ascertaining the company's Earnings per Share
is the net profit after tax.
g. Income Tax
Tax expense comprises of current tax and deferred tax. Provision for
current tax is made for the tax liability payable on taxable income
after considering the allowances, deductions and exemptions and
disallowances if any determined in accordance with the prevailing tax
laws.
Deferred income tax reflect the current period timing difference
between taxable income and accounting income for the period and
reversal of timing difference of earlier years/period. Deferred tax
assets are recognised only to the extent that there is a reasonable
certainty that sufficient future income will be available except that
deferred tax assets, in case there are unabsorbed depreciation or
losses, are recognised if there is a virtual certainty that sufficient
future taxable income will to available to realise the same.
Deferred tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted or substantively enacted by the
balance sheet date.
h. Provisions, Contingent Liabilities and Contingent Assets
The Company creates a provision when there is a present obligation as
a result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
outflow. Provisions are not discounted to their present value and are
determined based on the best estimate required to settle the
obligation at the reporting date. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimate.
Contingent liabilities are disclosed unless the possibility of outflow
of resources is remote.
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