Note 1 Significant Accounting Policies & Notes 1. Significant Accounting Policies a) Basis of brparation The Financial Statements have been brpared in accordance with the generally accepted accounting principles on accrual basis and comply with the accounting standards referred to in section 211 (3C) of the Companies Act, 1956 as adopted consistently by the company. The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The estimates and assumption used in these financial statements are based upon the management's evaluations of the relevant facts and circumstances as of the date of the financial statements. b) Revenue recognition Revenue is recognised on transfer of significant risk and reward that can be reliably measured and there exists no significant uncertainty in its ultimate realisation. Revenue from software development is recognized based on software developed or man-hours spent as per specific terms of contracts. Income from interest on loans forming part of other income is recognized on accrual basis. c) Fixed Assets Fixed assets are stated at historical cost less accumulated debrciation. Cost includes all cost incurred to bring the asset to itsr working condition for its intended use. d) Debrciation Debrciation on fixed assets is provided on Straight Line Basis at the rates brscribed in schedule XIV to the Companies Act, 1956. e) Taxes on Income The Company makes necessary provision for Income Tax, taking into account the allowances and exemptions admissible under the Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between book and tax profits is accounted for at the current rate of tax. Deferred Tax asset is recognised to the extent they are expected to crystallize in future. f) Investments Long-term investments are stated at cost and any decline, other than temporary, in the value of such investments, is charged to the Profit and Loss Account. Current investments are stated at lower of cost and market value. g) Impairment An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Account in the year in which an asset is identified as impaired. In case of a change in recoverable value, impairment loss is reversed immediately. Based on available information there is no impairment of asset estimated during the year. h) Miscellaneous Expenditure Rebrsents brliminary expenses amortized over a period of time. Public issue expenses are written off over a period of ten years. ROC fees for filing authorized capital which is not considered as revenue expenditure and is amortized over the period of five years. i) Segment Report Currently the company is engaged in development of software, which as per Accounting Standard -17 is considered as the only reportable business. j)) Employee Benefits Short term benefits are charged off to the Profit & loss account in the year of rendering of services. The number of employees was less than10 during the year under review and hence it is reported that payment of Contribution/ Benefit Plan are not applicable to this Company. k) Other Disclosures Related Parties As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of transaction with the related parties are given below: l) The company is engaged in the development of computer software. The production and sale of such software cannot be exbrssed in any generic unit. Hence it is not possible to give the quantitative details of sale and information as required under paragraphs 3, 4C and 4D of Part II of Schedule VI to the Companies Act, 1956. m) Diminution in value of investments: The Company holds investments in Private Companies and their share value couldn't be ascertained, hence no Diminution in value of investments is provided for in the Books. n) Confirmation of balances is respect of certain Debtors, Creditors, HSBC Current A/c & Loans & Advances are not made available. If there be any changes this will have an impact on the Balance Sheet figures. o) No Provision for taxation has been made as the company had incurred losses. p) Previous Year's figures have been regrouped or restated wherever necessary to confirm to the current year's brsentation. As per my report attached of even date SIDDHARTH MEHTA Chartered Accountant Membership No.207043 Firm Reg. No. 008108S. For & on behalf of the Board Jaybalan Jaykumar Director Rajendra Jain Director Place: Chennai Date: 29.05.2014 |