| a. Basis of preparation of financial statements :
These Financial Statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India (Indian GAAP) under
the historical cost convention on the accounting principles of going
concern and the Company follows mercantile system of accounting and
recognizes income and expenditure on accrual basis. Pursuant to section
133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts)
Rules, 2014, till the Standards of Accounting or any addendum thereto
are prescribed by the Central Government in consultation and
recommendation of the National Financial Reporting Authority, the
existing Accounting Standard notified under the Companies Act, 1956
shall continue to apply. Consequently these financial statements have
been prepared to comply in all material aspects with the accounting
standards notified under section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and other relevant provisions of
the Companies Act, 2013 (the 'Act').
All assets/liability is classified as current if it is expected to be
realized / settled within 12 months after the reporting date as the
case may be. All other assets/liabilities are classified as non
current.
Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires management to make judgments, estimates and assumptions that
affect the reported amounts of assets and liabilities and the
disclosures of contingent liabilities on the date of financial
statements and reported amounts of revenue and expenses for that year.
Difference between the actual results and estimates are recognized in
the period in which the results are known/ materialized.
a) Fixed Assets & Depreciation
i. Tangible Assets
Fixed Assets are stated at the original cost of acquisition including
incidental expenses related to acquisition and installation of the
concerned assets. Fixed Assets are shown net of accumulated
depreciation.
ii. Intangible Assets
Intangible assets are stated at their cost of acquisition, less
accumulated amortization and impairment losses. An intangible asset is
recognized, where it is probable that future economic benefits
attributable to the asset will flow to the enterprise and where its
cost can be reliably measured. The depreciable amount of Intangible
Assets is allocated over the best estimate of its use-full life on
straight line basis.
iii. Depreciation
Depreciation on fixed assets is provided pro rata base on straight line
method at the rates and in the manner prescribed in Schedule II to the
Companies Act, 2013.
Intangible assets are amortised over their estimated useful life of 5
years.
d) Impairment of Assets
The management, assesses for any impairment of assets or cash
generating units, in indicators, external or internal, suggests
possibilities for reduction in net realizable value of assets or value
in use of cash generating units below its carrying costs. Impairments,
if any, will be recognized in the Profit and Loss Accounts.
e) Investments
Long-term investments are stated at cost.
f) Revenue Recognition
The revenue in respect of Professional Fees including Professional Fees
for Human Resources Solution Provider, Providing of personnel's,
Outsourcing are recognized on delivery of service to the customers.
Revenue is recognized inclusive of applicable taxes.
Interest Income is recognized on accrual basis except interest on
Income Tax Refund which is recognized on receipt basis
g) Deferred Revenue Expenses
Miscellaneous Expenses incurred for issue of Bonus Shares are amortized
over a period of 5 years.
h) Provisions, Contingent Liabilities and Contingent Assets
A provision is made based on a reliable estimate when it is probable
that an outflow of resources embodying economic benefit will be
required to settle an obligation.
Contingent Liabilities in respect of showcause notice received are
considered only when they are converted into demands. Contingent
Liabilities under various fiscal laws include those in respect of which
the Company / Department is in appeal. Contingent Liabilities are
disclosed by way of notes to accounts.
Contingent assets are not recognized or disclosed in the financial
statement.
i) Taxation:
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income-tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economics benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the company will pay normal income tax. Accordingly, MAT
is recognized as an asset in the Balance Sheet when it is probable that
the future economic benefits associated with it will flow to the
company.
Deferred Income Tax reflect the current year timing differences between
taxable income and accounting income for the year and reversal of
timing differences of earlier years/ period.
j) Earnings Per Share:
The company reports Earning Per Shares (EPS) in accordance with
Accounting Standard 20 on Earning Per Share. Basic EPS is computed by
dividing the net profit for the year by the weighted average number of
Equity Shares outstanding during the year. Diluted EPS is computed by
divining the net profit or loss for the year by the weighted average
number of equity shares outstanding during the year as adjusted for the
effects of all dilutive potential equity shares, except where the
results are anti-dilutive.
basic and diluted earnings per share (EPS) in accordance with
Accounting Standard 20. EPS is computed by dividing net profit after
tax by the weighted average number of equity shares outstanding during
the year. Diluted earnings per equity share is computed by dividing
adjusted net profit after tax by the aggregate of weighted average
number of equity shares and dilutive potential equity shares
outstanding during the year.
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