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Moneycontrol.com India | Accounting Policy > Computers - Software Medium/Small > Accounting Policy followed by AJEL - BSE: 530713, NSE: N.A
BSE: 530713|ISIN: INE229B01015|SECTOR: Computers - Software Medium/Small
, 16:01
AJEL is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
1.1 Accounting Policies not specifically referred to otherwise are
 consistent and in consonance with generally accepted accounting
 principles and mandatory accounting standards issued by the Institute
 of Chartered Accountants of India.
 1.2 Basis of Accounting
 The financial statements are prepared in accordance with the relevant
 presentation requirements of the Revised Schedule VI of the Companies
 Act, 1956 under the Historical cost convention on the basis of going
 concern and accrual unless otherwise stated.
 1.3 Revenue recognition
 Revenue is primarily derived from Software development, Consulting and
 allied services. Arrangements for software development and related
 services are either on fixed-price and fixed-timeframe or on a time and
 material basis. Revenue from fixed-price and fixed-time frame contracts
 , where there is no uncertainly as to measurement or collectability of
 consideration is recognised based on percentage- completion method.
 Where there is uncertainity as to measurement or collectability revenue
 recognition is postponed until such uncertainity is resolved. Revenue
 from fixed-price maintenance contracts are recognised ratably overthe
 period in which services are rendered.
 1.4 Fixed Assets
 Fixed Assets are stated at cost less depreciation. The company
 capitalizes all costs incidental to acquisition and installation of
 Fixed Assets. Depreciation on fixed assets is provided on WDV method at
 the rates prescribed in Schedule XIV of the Companies Act, 1956.
 1.5 Preliminary Expenses and Pre Operative Expenses
 Preliminary Expenses and Pre Operative Expenses are to be amortized
 over a period often years from the date of commencement of commercial
 1.6 Tax on Income
 Current tax is determined as the amount of tax payable in respect of
 taxable income for the period.  Deferred tax is recognized, subject to
 the consideration of prudence, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period and are capable of reversal in one or more subsequent
 periods. Deferred tax assets are not recognized on unabsorbed
 depreciation and carry forward of losses unless there is virtual
 certainty that sufficient future taxable income will be available
 against which such deferred tax assets can be realized.
 1.7 Provisions and contingent liabilites
 A provision is recognised if as a result of a past event, the group has
 a present legal obligation that can be estimated reliably, and it is
 probable that an outflow of economic benefits will be required to
 settle the obligation, a. Contingent Liabilities are determined on the
 basis of available information and are disclosed by way of a note to
 the accounts.
 1.8 Foreign Exchange Transactions:
 For the purpose of Consolidation, Ajel Technologies, Inc was treated as
 Integral foreign operation in accordance with the Accounting Strandard
 ll-Effects of Changes in Foreign Exchange Rates and transactions in
 foreign currency for the items of income and expenses are recorded at
 the Average rate of exchange for the period . All the Assets and
 Liabilities were recorded at the Closing rate of exchange.  Exchange
 differences arising there from is transferred to Foreign Currency Loss
 and transferred to Profit and Loss Account.
 1.9 Earning perShare
 Basic earnings per share is computed by dividing the net profit
 aftertax by the weighted average number of equity shares outstanding
 during the period. Diluted Earnings per share is computed by dividing
 the net profit after tax by the weighted average number of equity
 shares considered for deriving the basic earnings per share and also
 the weighted average number of the equity shares that could have been
 issued upon conversion of all dilutive potential equity shares.
Source : Dion Global Solutions Limited
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