| 1. Going Concern
The accounts are being prepared on the going concern basis, i.e. the
assets and liabilities are recorded on the basis that the Company will
be able to use or realise its assets at least at the recorded amounts
and discharge its liabilities in the usual course of business.
2. Basis of preparation of financial statements.
These financial statements are prepared in accordance with the Indian
Generally Accepted accounting principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises of mandatory
accounting standards as prescribed under section 133 of the Companies
Act 2013 read with Rule 7 of the Companies ( Accounts) Rules 2014.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
3. Use of estimates
The preparation of the financial statements in conformity with GAAP
requires the management to make estimates and assumptions that affect
the reported balances of assets and liabilities and disclosures
relating to contingent liabilities as at the date of the financial
statements and reported amounts of incomes and expenses during that
period. Difference between the actual results and estimates are
recognized in the period in which the results are known/ materialized.
4. Revenue Recognition
Revenue is recognized only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliable measured
and it is reasonable to expect ultimate collection. Revenue is
primarily derived from trading of software and hardware. Arrangements
with customers are on a time and item basis.
5. Provisions and contingent Liabilities
A provision is recognized if as a result of a past event, the company
has a present obligation that is reasonably estimable and it is
probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of the economic benefits required to settle the
obligation at the reporting date. Where no reliable estimate can be
made, a disclosure is made as a contingent liability. A disclosure for
a contingent liability is also made when there is a possible obligation
or a present obligation that may but probably will not require an
outflow of resources. When there is a possible obligation or a present
obligation in respect of which the likelihood of outflow is remote, no
provision or disclosure is made.
6. Onerous Contracts
There is no Onerous Contracts entered by the Company.
7. Tangible Assets and Capital work in progress
Tangible assets are stated at cost, less accumulated depreciation and
impairment, if any. Direct costs are capitalized until such assets are
ready for use. There is no Capital work in progress at the reporting
date.
8. Intangible Assets
There are no Intangible assets with the Company at the reporting date.
9. Depreciation and Amortization
Depreciation on tangible assets is provided on straight line basis over
the useful life of the assets estimated by the management.
Depreciation for assets purchased/ sold during a period is
proportionately charged.
10. Impairment
The management periodically assesses, whether there is an indication
that an asset may be impaired. An impairment loss is recognized
wherever the carrying value of an asset exceeds its recoverable amount.
An impairment loss for an asset is reversed, if and only if, the
reversal can be related to an objectively to an event occurring after
the impairment loss was recognized.
11. Retirement Benefits to employees Gratuity
The company is not covered under Gratuity Plan.
Superannuation
The company is not covered under Superannuation Plan.
Provident fund
The company is not covered under Provident Fund.
12. Share based payments
The Company have not issued any stock-options so far and hence no share
based payment during the reporting year.
13. Foreign Currency Transactions
There are no Foreign currency transactions during the year.
14. Forward and option contracts in foreign currencies
Since there are no Foreign exchange transactions forward and option
contracts is not applicable
15. Income Taxes
Income taxes are accrued in the same year in which the related revenues
and expenses arise. A provision is made for income tax based on the tax
liability computed, after considering tax allowances and exemptions.
The company does not recognizes Provisions for Deferred Tax
assets/Liabilities.
16. Earnings per share
Basic earnings per share in computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding during
the period.
17. Investments
Current investments are carried at the lower of the cost and
quoted/fair value of each investment individually. Non-Current
investments are carried at cost less provisions recorded to recognize
any decline, other than temporary, in the carrying value of each
investment.
18. Cash and cash equivalents
Cash and cash equivalents comprise cash and cash deposit with banks and
corporations.
19. Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of the transactions of a non
cash nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the company are segregated.
20. Leases
No Lease agreement entered by or with the Company except lease for
office premises.
21. Inventories
Items of Inventories are measured at lower of cost and net realizable
value providing for obsolescence, if any.
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