NOTE NO. – 1 : SIGNIFICANT ACCOUNTING POLICIES A. BASIS OF brPARATION OF FINANCIAL STATEMENTS: a) Balance Sheet and Statement of Profit and Loss are brpared in conformity with Accounting Standards as brscribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guide lines 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 accounting policy hitherto in use. b) The company generally follows mercantile system of Accounting and recognizes significant items of income and expenditure on accrual basis. B. FIXED ASSETS: Fixed Assets are disclosed at historical cost of acquisition. C. DEbrCIATION: During the year, debrciation is provided on the straight line method and based on the useful life and in the manner specified in schedule II of the Companies Act, 2013. D. INVESTMENTS: Investments are disclosed at cost. Income on investments is accounted on accrual basis. E. INVENTORIES: Software inventory is valued at cost on First In First Out Method. Inventories are verified and certified by the management. F. TERMINAL BENEFITS TO EMPLOYEES Provision for gratuity is made based on actuarial valuation in accordance with Accounting Standard – 15. G. PRIOR PERIOD/br-PAID EXPENSES Expenditure less than Rs.10,000/- are not classified into Prior Period Expenditure or Prepaid Expenses in view of the fact that they are not material in nature. H. TAXES AND DUTIES a) Value Added Tax paid on purchase of Fixed Assets and other material is accounted at Net value. b) Sales are disclosed at net value of Taxes. c) Sales Tax paid in excess of collection is treated as expenditure. d) Service Tax is accounted for net of CENVAT credit availed and utilized. 2 In the opinion of the Board of Directors, The Company does not have any impaired assets. 3 Trade Payables to Micro, Small, Medium Enterprises has been identified based on information avaiable with the company. This has been relied upon by the auditor. 4 In the opinion of the management, realization from current assets will not be less than the amount at which they are stated in the Balance Sheet. 5 Balances of Sundry Debtors, Creditors and loans and advances are as per books, subject to confirmation. 6 Previous year figures have been recast / restated whenever necessary to confirm to the classification of the current year 7 Amounts in the financial statements are brsented in Rupees. All the figures have been rounded to the nearest Rupee. Per our report of even date For RAMANATHAM & RAO Chartered Accountants Firm No: S-2934 (C.KAMESWARA RAO) PARTNER Membership No: 24363 For and on behalf of the Board F. R. BHOTE Managing Director N.GOWRISHANKAR Director Date : 29th May, 2015 Place: Secunderabad |