1. Basis of accounting:
• The company prepares financial statements in accordance with the Accounting Standards
notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act,
2013.
• The financial statements have been prepared under the historical cost convention on an
accrual basis. The accounting policies are applied consistently to all the periods presented
in the standalone financial statements.
2. Use of Estimates:
The preparation of financial statements in conformity with Accounting Standards requires the
management to make judgments, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the management’s best knowledge of
current events and actions, uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future
periods.
3. Revenue Recognition:
Expenses and Income considered payable and receivable respectively are accounted for on accrual
basis. Revenue is recognized to the extent that it is probable that the economic benefits will flow
to the Company and the revenue can be reliably measured.
Revenue from fixed-price and fixed-time frame contracts, where there is no uncertainty as to
measurement or collectability of consideration, is recognized based upon the percentage of
completion or proportionate efforts method depending upon the circumstances. When there is
uncertainty as to measurement or ultimate collectability revenue recognition is postponed until
such uncertainty is resolved.
Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the interest rate applicable.
4. Property, Plant & Equipment:
Property, Plant & Equipment including intangible assets are stated at their original cost of
acquisition including taxes, freight and other incidental expenses related to acquisition and
installation of the concerned assets less depreciation till date.
Company has adopted cost model for all class of items of Property Plant and Equipment.
Assets costing INR 5,000 or less are fully depreciated in the year of purchase.
5. Depreciation:
Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written
down Value (WDV) Method. Depreciation is provided based on useful life of the assets as
prescribed in Schedule II to the Companies Act, 2013.
The carrying amount of assets is reviewed at each balance sheet date if there is any indication of
impairment based on internal/external factors. An impairment loss is recognized wherever the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the
greater of the assets, net selling price and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and risks specific to the asset.
After impairment, depreciation is provided on the revised carrying amount of the asset over its
remaining useful life.
6. Foreign currency Transactions:
Transactions arising in foreign currencies during the year are converted at the rates closely
approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign
currency are restated at the year-end exchange rates. All exchange rate differences arising from
conversion in terms of the above are included in the statement of profit and loss.
7. Investments:
Investments, which are readily realizable and 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.
On disposal of an investment, the difference between its carrying amount and net disposal
proceeds is charged or credited to the statement of profit and loss.
8. Inventories:
The Company is a service company, primarily involved in software and support services.
Accordingly, it does not hold any physical inventory.
9. Retirement Benefits:
The retirement benefits including Gratuity are accounted for as and when liability becomes due
for payment.
10. Taxes on Income:-
Provision for current tax is made on the basis of estimated taxable income for the current
accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing
differences between the book and tax profits for the year is accounted for, using the tax rates and
laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising
from timing differences are recognized to the extent there is virtual certainty with convincing
evidence that these would be realized in future. At each Balance Sheet date, the carrying amount
of deferred tax is reviewed to reassure realization.
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