| a) Basis of preparation
The Financial Statements have been prepared 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
depreciation. Cost includes all cost incurred to bring the asset to
itsr working condition for its intended use.
d) Depreciation
Depreciation on fixed assets is provided on Straight Line Basis at the
rates prescribed 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
Represents preliminary 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) Deferred Tax
In accordance with Accounting Standard 22 (Accounting of Taxes on
Income) issued by the Institute of Chartered Accountants of India ,
Deferred Tax liability/ (Asset) attributed to timing difference
relating to depreciation has been recognized at Rs.12,421/- as on
31.03.2014 (Rs. 9,442 /- as on 31.03.2013) Deferred Tax Asset.
k) 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.
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