Notes annexed and forming part of the Financial Statements Corporate Information The Company was incorporated in the state of Maharashtra, India on 14/9/1989 and is listed on Bombay Stock Exchange (BSE). The Company's line of business involves Software and Hardware Electronic Security Solutions. Note 1 - Significant Accounting Policies a. Basis & Method of Accounting These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('the Act'), read with Rule 7 of the Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI). 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. b. Use of Estimates The brparation of financial statements is conformity with generally accepted Accounting principles requires the management to make estimates and assumptions that affects the reported balances of assets and liabilities as of the date of financial statement and reported amount of income and expenses during the year. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements. c. Fixed Assets Tangible assets are stated at cost, less accumulated debrciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. Capital work-in-progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date. d. Impairment of Assets The carrying amount of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An asset is impaired when the carrying amount of the asset exceed the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which the asset is identified as being impaired. e. Debrciation The debrciation on Fixed Assets is provided on straight line method, in accordance with the Schedule II to the companies Act, 2013. The debrciation on Assets added during the year has been provided on pro-rata basis with reference to the date on which the assets were put to use. No debrciation has been provided on the fixed assets, which have not been put to use during the year end. f. Revenue recognition Sales rebrsent invoice value of goods supplied and service rendered, including Sales Tax applicable and are net of rate difference and goods returned. g. Inventories Inventories are valued at cost or net realizable value whichever is lower. The cost is worked out on weighted average basis. h. Research and Development Expenses Expenditure relating to capital items is debited to fixed assets and debrciated at applicable rates. Revenue expenses are charged to the Statement of Profit & Loss of the year. i. Retirement Benefits Retirement benefits are given as per term & condition of contract with employee. Short term employee's benefits are recognized at the undiscounted amount in the profit and loss account. j. Taxation Income-tax expenses comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising mainly on account of brought forward losses and unabsorbed debrciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization. k. Earning per Share The earnings considered in ascertaining the Company's EPS are computed as per Accounting Standard 20 on "Earning Per Share", issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as Basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive. l. Segment Reporting The Company is engaged in the Software and Hardware Electronic Security Solutions thereof being a single segment hence disclosure as requirements of Accounting Standard AS-17 issued by the Institute of Chartered Accountants of India is not applicable. m. Other Accounting policies These are consistent with generally accepted accounting practices. 1.OTHER NOTES a. There is no impairment of assets as per AS 28 issued by ICAI. b. There are no dues to Small/Micro undertaking. c. Contingent Liabilities - NIL d. In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount which they are stated and adequate provision of all known liabilities of the Company has been made. Further balances are subject to confirmation. e. Previous year figures have been regrouped, reclassified and recast wherever considered necessary. f. Figures have been rounded off to nearest rupee. As per our attached report of even date For R Soni & Co. For and on behalf of the Board Chartered Accountants FRN 130349W Rajesh Soni Partner M No 133240 J. T. D'souza Chairman & Managing Director DIN: 00958844 Punit Neb Director DIN: 01026300 Place : Mumbai date :May 29, 2015 |