| i. Basis of Preparation of Financial Statements
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles under the historical cost
convention on accruals basis. Generally Accepted Accounting Principles
comprises mandatory accounting standards issued by the Institute of
Chartered Accountants of India and the provisions of the Companies Act,
1956. These accounting principles have been consistently applied except
where a newly issued accounting standard is initially adopted by the
company.
ii. Revenue Recognition
I. Company generally follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis, including
provisions/adjustments for committed obligations and amounts determined
as payable or receivable during the year.
II. Revenue in respect of the projects of long-term duration in
implementation is recognized on the basis of stage wise completion of
the respective project.
iii. Fixed Assets and Capital work-in-progress
Fixed assets are stated at cost, less accumulated depreciation. Direct
costs and indirect costs are capitalized under respective fixed assets.
Direct costs include freight, duties, taxes, insurance and any
attributable cost of bringing the asset to its working condition for
its intended use. Indirect costs includes pre operative expenses, pre
construction interest (net of revenue) etc.
iv. Depreciation
Depreciation on fixed assets is provided under the Written Down Value
Method, at the rates and in the manner as prescribed under Schedule XIV
of the Companies Act, 1956, except as stated hereunder:
a) All individual cost of assets acquired for less than Rs.5,000 are
entirely depreciated in the year of acquisition.
b) Depreciation on assets added or disposed off during the year is
provided on pro- rata basis from the date of addition or up to the date
of disposal, as applicable
v. Deferred Tax
The differences that result between the profit offered for income taxes
and the profit as per the financial statements are identified, and
thereafter a deferred tax asset or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being considered.
The deferred tax is not recognized in the books of accounts since there
is no virtual certainty.
vi. Earnings Per Share
Earnings per share is calculated by dividing the net loss after tax for
the year attributable to equity shareholders by the number of equity
shares outstanding on the balance sheet date.
vii. Segment Reporting
The Company is in the business of software development, hence total
business of the company is treated as one single segment.
Commitments and Contingent Liabilities:
The Company has not provided any type of guarantee on behalf of any
party to Bank or Financial Institution.
- The following amounts were considered as bad and irrecoverable by
the Company and hence are written off during the period under review.
Particulars Amount in Rs.
Advances written off 1,95,31,199
Trade Receivables written off 2,37,57,799
- The Cash Flow Statement is also given separate Annexure
- Sundry Creditors, Sundry Debtors, Advances and Deposits are subject
to confirmation from parties concerned and reconciliation thereof.
- There are no out standings due to Small Scale Industries.
- Figures have been rounded off to the nearest rupee.
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