NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES IBASIS OF ACCOUNTING These financial statements have been brpared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. 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 the accounting policy there to in use. IIUSE OF ESTIMATES The brparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. IIIFIXED ASSETS Fixed assets are recorded at cost of acquisition or at revalued figures. Cost includes purchase cost together with all incidental charges and other related costs. IVDEbrCIATION ON TANGIBLE FIXED ASSETS Debrciation on fixed assets is calculated on a straight-line basis over the useful life of the assets as brscribed under Part C of Schedule II of the Companies Act 2013. The useful lives for the fixed assets are as follows: V INCOME TAX "Tax expense comprises both current and deferred tax at the applicable enacted/ substantively enacted rates. Current tax rebrsents the amount of income tax payable/ recoverable in respect of the taxable income/ loss for the reporting period. Provision for current tax is made on the basis of estimated taxable income for the current accounting period in accordance with the provisions of The Income Tax Act, 1961. Deferred tax rebrsents the effect of "timing differences" between taxable income and accounting income for the reporting period that originate in one period and capable of reversal in one or more subsequent periods. Deferred Tax Assets on unabsorbed Debrciation and brought forward losses are recognised only on Virtual Certainty. NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015 NOTE 1 SIGNIFICANT ACCOUNTING POLICIES VIEARNINGS PER SHARE "Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. VIICASH AND CASH EQUIVALENT Cash and Cash equivalents in the cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. VIIIREVENUE RECOGNITION Revenue (income) 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 following specific recognition criteria must also be met before revenue is recognized: Interest Revenue is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Notes: 1. Figures in bracket relates to the brvious year NOTE 2 - Disclosure as required by Accounting Standard - AS 17 "Segment Reporting", issued by the ICAI The business activity of the company consists of one reportable segment only i.e. software activities which includes Development of Software. NOTE 3 - Provision for deferred tax No deferrd tax asset is accounted in books on the brought forward losses as there is no virtual certainity supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. NOTE 4 - Details of dues to micro and small enterprises as defined under the MSMED Act, 2006 The Company has not received any intimation from "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made. NOTE 5 - Pursuant to Companies Act, 2013('the Act') being effective from 1st April 2014, the company has revised debrciation rates on tangible fixed assets as per the useful life specified in Part 'C' of schedue II of the Act. As a result of this change, for assets whose useful life is already exhausted as on 1st April, 2014, carrying amount of Rs. 39,198/- has been adjusted in Reserves and Surplus in accordance with the requirements of schedule II of the Act. NOTE 6 Previous year figures have been regrouped / rearranged wherever necessary to conform to the current years' brsentation. As per our report of even date attached For and on behalf of the board For Sampat Mehta & Associates Chartered Accountants F.R. No. 109038W sd/-CA SANJIV JHAVERI Partner M No.38945 sd/-Krishan Kumar Rathi DIN :0156061 sd/-Subrata Paul DIN :07139577 sd/-Rajesh Nawathe DIN : 01201350 Place : Mumbai Date : 30th May, 2015 |