X. SIGNIFICANT ACCOUNTING POLICIES 1 . BASIS OF ACCOUNTING : The Financial Statements have been brpared under the historical cost convention, except where impairment is made and on accrual basis in accordance with the accounting practices generally accepted in India and the provisions of the Companies Act, 2013. Accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year. 2. USE OF ESTIMATES : The brparation of financial statements, in conformity with generally accepted accounting principles, requires estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized. 3. REVENUE RECOGNITION : Interest on deployment of fund is recognized on accrual basis. 4. FIXED ASSETS AND DEbrCIATION : Fixed Assets are stated at cost less accumulated debrciation. Debrciation and impairment losses (if any) on all assets is provided on written down method at the rates brscribed in Schedule II of the Companies Act, 2013. 5. INVENTORIES : Inventories are valued at cost or net realizable value, whichever is lower. 6. BORROWING COST : Interest accrued on loan for acquiring asset is capitalized till the date the assets are put to use. 7. IMPAIRMENT OF ASSETS : At the end of each reporting period, the company determines whether a provision should be made for the impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard 28 on "Impairment of Assets" issued by the ICAI. An impairment loss is charged to Profit and Loss account in the period in which, an asset is classified as impaired, when the carrying value of assets exceeds its recoverable value. The impairment loss recognized in the earlier accounting period is reversed if there has been a change in the estimate of recoverable amount. 8. PROVISION FOR CURRENT AND DEFERRED TAX : Provision for current tax is made after taking in to consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in the future. 9. EARNING PER SHARE : In determining earning per share, the company considers the net profit after tax and includes the post tax effect of any extra ordinary items. The number of shares used in computing basic earning per share is weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per share comprises the weighted average shares considered for deriving basic earning per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. 10. CONTINGENCIES & PROVISIONS : A provision is recognised when an enterprise has a brsent obligation as a result of past event; it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. A contingent liability is disclosed, unless the possibility of an outflow of resources embodying the economic benefits is remote. 11. CASH AND CASH EQUIVALENTS : Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash at bank, in hand (including cheques in hand) and short term investment with an original maturity of three months or less. SIGNATURE TO NOTE I TO X AS PER OUR REPORT OF EVEN DATE For M/s. KANU DOSHI ASSOCIATES For DATASOFT APPLICATION SOFTWARE (INDIA) LTD. CHARTERED ACCOUNTANTS Firm Reg. No. : 104746W ARATI PARMAR PARTNER M. No. : 102888 C. M. BUCH DIRECTOR DIN : 00326637 CHANDAN PARMAR MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER DIN : 00592613 PLACE : MUMBAI DATE : 29-05-2015 |