| 1. Basis of Accounting
The financial Statements have been prepared and presented on
historical cost convention under the accrual basis of accounting in
accordance with accounting principles generally accepted in India
(GAAP). Pursuant to circular 15/2013 dated 13 September 2013 read with
circular 08/2014 dated 04 April 2014 issued b the Ministry of
Corporate Affairs, the existing accounting standards notified under
the Companies Act, 1956 shall apply till the standards of accounting
or any addendum thereto are prescribed by the Central govt. in
consultation and recommendation of the National Financial Reporting
Authority. Consequently, these financial statements have been prepared
to comply in all material aspects with accounting standards notified
by the Central Government of India under Section 211 (3C) of the
Companies Act, 1956, other pronouncements of the Institute of
Chartered Accountants of India, the relevant provisions of the
Companies Act, 1956.
Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
All income and expenditure items having material bearing on the
financial statements are recognized on accrual basis.
2. Revenue Recognition
Revenue from Software Services is recognized based on milestones
reached as per the terms of the contract.
Revenue from Training services is recognized based on registration of
members and commencement of batches.
3. Fixed Assets
Fixed assets are stated at actual cost of Acquisition. Cost of
acquisition is inclusive of freight, duties, taxes installation
expenses and other incidental expenses.
4. Depreciation
Depreciation on fixed assets has been provided on pro-rata basis on W.
D V method as per the rates provided in the schedule XIV to the
Companies Act, 1956. Individual assets acquired for less than
Rs.5000/- are entirely depreciated in the year of acquisition.
5. Impairment of assets
Impairment is ascertained at each balance sheet date in respect of the
company's fixed assets. An impairment loss shall be recognized
whenever the carrying amount of an asset exceeds its recoverable
amount.
6. Taxes on Income
Deferred tax arising out of timing difference of income tax relating
to unabsorbed depreciation and unabsorbed losses has not been
recognized keeping in view the reasonable certainty about the
operations of the company in the near future.
7. Earnings per Share (EPS)
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 year. The number of
shares used in computing diluted earnings per share is the aggregate
of the weighted average number of equity shares outstanding and the
weighted average number of equity shares, which would be issued on the
conversion of all the dilutive equity shares into equity shares.
Dilutive potential equity shares are deemed to been converted as of
the beginning of the year, unless they have been issued at a later
date during the year.
8. Foreign Currency Transactions
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transaction. Assets and Liabilities,
receivable / payable in foreign currency are shown at the exchange
rate prevailing on the date of the Balance Sheet complying Accounting
Standard 11 issued by ICAI.
9. Employee benefits
i. Short term benefits are charged to revenue.
ii. There is no liability provided for Gratuity, as none of the
employees are eligible for Gratuity as per payment of Gratuity Act.
iii. There is no liability provided in respect of leave encashment, as
none of the employees have credit of earned leave.
10. Segment Reporting
The companies operations fall with in a single primary business
segment, hence the disclosure requirements of AS 17 segment reporting
issued by ICAI are not applicable.
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