The following are the significant accounting policies adopted by the company.
A. Preparation and presentation of Financial Statements:
a) . BASIS OF PREPARATION:
The financial statements are prepared under the historical cost convention, in accordance with Indian Generally Accepted Accounting Principles (GAAP), the mandatory accounting standards issued by the Institute Of Chartered Accountant Of India and the provisions of the Companies Act, 2013, as adopted consistently by the company.
b) . USE OF ESTIMATES:
The preparation and presentation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of revenues and expenses during the reporting period. The difference between the actual and estimates are recognized in the period in which the results are known/ materialized.
B. Fixed Assets:
a) . Fixed assets are stated at the original cost of acquisition less depreciation. Original cost includes purchase price, levies,
and directly attributable cost of bringing the assets to its working condition for its intended use. As also the capitalized portion of preoperative expenses.
b) . Depreciation on the Fixed Assets of the company is provided on Written Down Value Method based on the useful life of
the assets as prescribed in Schedule II of the Companies Act, 2013.The Range of Estimated useful lives of items of Fixed assets are as follows
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Asset
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Useful Life
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Office Equipment
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5
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Software
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01-03
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c). Depreciation on additions during the year is being provided for on a pro rata basis.
C. Revenue Recognition:
a) . Revenue from software development on the time-and-material basis is recognized based on Software developed and
billed to clients as per the terms of specific contracts.
b) . Interest Income on deposits is recognized using the time-proportion method, based on interest rates implicit in the
transaction.
c) . Income from investment in mutual funds is recognised on the basis of the NAV declared by the mutual fund at the end
of the year.
d) . Sub-lease rental income on immovable properties is recognized on accrual basis as per the respective agreements with
the parties.
e) . Dividend income is recognized on when the group's right to receive dividend is established.
D. Expenditure:
Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.
E. Retirement Benefits to Employees:
a) . Provident Fund: In respect of Provident Fund contribution, the employee and the employer make monthly contribution
to the provident fund equal to 12% of the covered employee's salary; the company has no further obligations under the provident fund plan beyond its monthly contribution.
b) . Gratuity: Provision has been made for payment of premium to Life Insurance Corporation of India under its Group
Gratuity Scheme on the basis of actuarial valuation done by them.
c) . Leave Encashment: The Company is providing leave salary to the employees on un expired leaves balances as on
the 31st March 2024.
F. Foreign Currency Transactions:
Sales made to clients outside India are accounted for on the basis of the exchange rate as on the date of transaction. Current assets and Current Liabilities denominated in foreign currency are translated at the exchange rate prevalent at the date of the Balance Sheet. The resulting difference is accounted for in the profit and loss account.
G. Taxes on Income:
Current tax is determined on the amount of tax payable in respect of taxable income for the year.
The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities.
H. Provisions and Contingencies :
A provision is recognized when there is a present obligation as a result of past event, for which it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation 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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