1. BASIS OF ACCOUNTING :
The Financial Statements have been prepared 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, 1956. Accounting policies have
been consistently applied by the Company and are consistent with those
used in the previous year.
2. USE OF ESTIMATES :
The preparation 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 DEPRECIATION :
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation and impairment losses (if any) on all assets is provided
on written down method at the rates prescribed in Schedule XIV of the
Companies Act, 1956.
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 present 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 present 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.
Dear Shareholder
Sub : Green Initiative in Corporate Governance Service of documents by
electronic mode
The Ministry Corporate Affairs (MCA) has taken a "Green Initiative in
Corporate Governance" allowing paperless compliance by Companies. In
accordance with the recent Circular no. 17/2011 dated 21-042011 and
Circular no. 18/2011 dated 29-04-2011 issued by the MCA. Companies can
now send various notices and documents, including the Annual Report, to
the Shareholders through electronic mode to the registered e-mail
addresses of shareholders.
Your Company appreciates this initiative and would like to enable
conservation of paper thereby contributing to a Greener Environment.
This initiative presents the shareholders of Datasoft Application
Software (India) Limited with a unique opportunity to contribute
towards Corporate Social Responsibility of the Company.
If you hold shares in demat form, we invite you to contribute to the
cause by updating your email id details with your depository
participant. In case you hold shares in physical form please complete
the form given below and send it back to us.
Please note that as a member of the Company you are entitled to receive
all such communication in physical form, upon request.
|