NOTE NO. 1 : SIGNIFICANT ACCOUNTING POLICIES A Corporate Information
Brisk Technovision Limited is a Company domiciled in India and incorporated on 30th March, 2007. The Company is engaged in IT Infrastructure Management & Information Security.
B Method of Accounting
The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material respect with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statement are consistent with those of previous year.
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III of the Act. Based on the nature of business and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities. The financial statements are presented in Indian Rupees rounded off to the nearest Rupee.
C Use of Estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in current and future periods.
D Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The Company recognize Sales at fair value of the consideration received net of discounts, rebates, and sales taxes or duty.Other Income is accounted on accrual basis except where receipt of income is uncertain.Interest is recognised on time proportion basis.
E Accounting for Taxes on Income
a) Current Tax is measured at the amount to be paid to/recovered from the authorities, using the applicable tax rate.
b) Deferred Tax is recognised, subject to consideration of prudence in respect of deferred tax assets, on timing differences being the difference between taxable income and accounting income that originates in one period and is capable of reversal in one or more subsequent periods and measured using prevailing enacted or substantively enacted tax rates.
F Property, Plant and Equipment
Property Plant and Equipment (‘PPE’) and intangible assets are stated at cost, less accumulated depreciation and amortisation. Cost comprises the purchase price and any directly attributable cost of
(i) bringing the asset to its working condition for its intended use. Subsequent expenditures related to an item of PPE assets are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performance.
(ii) Depreciation on tangible fixed assets is provided on written down value method based on the useful ^ ' lives specified in Schedule II of the Companies Act, 2013
G Investments
Investments are classified as Non-Current and Current Investments. Non-Current Investments are stated at its cost. Investments, which are readily realizable and intended to be held for more than 1 year from the date on which investments are made, are classified as Non-Current Investments. However, provision is made for any diminution in the value of the Non-Current Investments, if such decline is other than temporary.
H Inventories
Inventories are taken at Cost or Net Realisable Value whichever is lower as certified by the Director
Net realizable value is the estimated selling price in ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.
I Foreign Exchange Transactions
There are no Foreign Exchange Transactions
J Provision for Tax
Provision for current taxes is made considering the prevailing rates and applicable ^' deductions/exemptions/exclusions.
Deferred tax is made for reversible timing differences between book profits and taxable income. ^ ' Deferred tax asset is recognised only if virtual certainty of its reversal is there.
K Borrowing Costs
Borrowing cost consists of interest and other costs incurred in connection with the borrowing of funds. There is no Borrowing cost attributable to the acquisition of qualifying fixed assets is incurred during the year. All other borrowing cost are charged to profit and loss account.
L Employee Benefits
Defined Contribution plans and Short-term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.
The Company accounts for the liability of future gratuity benefits based on actuarial valuation. The company has created a trust for future payment of gratuities which is funded through gratuity-cum-life insurance scheme of LIC of India. Actuarial gains and losses are charged to the statement of profit and loss.
M Earning Per Share (EPS)
The basic earnings per equity share are computed by dividing the net profit or loss attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year.
Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average of equity and dilutive equity equivalent shares outstanding during the reporting year, except when results would be anti dilutive.
N Dividend Distribution
Final equity dividends on shares are recorded as a liability on the date of declaration of approval by the shareholders and Interim equity dividends are recorded as a liability on the date of declaration by the Company's Board of Directors.
O Cash and Cash Equivalents
Cash and Cash Equivalents for the purpose of cash flow statement comprise cash on hand and fixed deposits at bank including short-term highly liquid investments with an original maturity of three months or less.
A provision is recognised when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources embodying economic benefits. Where no reliable estimate can be made, a disclosure is made as Contingent Liability.A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not; require an out flow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.When there is a possible or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
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