1.1. The accounts of the company have been prepared using the accrual
method based on the historical cost convention.
1.2. Income: Sales include sale of software and Software services.
Revenue from sale of software is recognized wherever the sale has been
completed with the passing of the title and billed to the clients as
per the specific contracts. Revenue from sale of software services is
recognized on the basis of percentage of completion method.
Miscellaneous income mainly consisting of reimbursement of expenses is
accounted on accrual basis.
1.3. Expenditure: Expenses are accounted on accrual basis and provision
for known liabilities or loss made in the same year.
1.4. Fixed Assets: Fixed Assets are stated at cost of acquisition less
accumulated depreciation. Capital-work-in progress comprises
outstanding advances paid to acquire fixed assets and cost of fixed
assets that are not yet ready for their intended use at the reporting
date. Goodwill arising on consolidation or acquisition is not amortized
but is tested for impairment.
1.5. Depreciation: Depreciation is provided on straight-line method at
the rates specified in schedule XIV of the Companies Act, 1956.
Depreciation for the assets purchased/sold during the year is
proportionately charged. Individual assets acquired for less than Rs.
5,000/- are entirely depreciated in the year of acquisition.
1.6. Foreign currency transactions: In case of sales made to clients
outside India, income is accounted on the basis of the exchange rate
prevailing at the end of the previous month of sale. Adjustments are
made for any change in sales proceeds on conversion into Indian
currency upon actual receipt. Expenditure in foreign currency is
accounted at the conversion rate prevailing at the end of the previous
month of expenditure is incurred. Debtors and Creditors are stated at
exchange rate prevailing on the date of Balance Sheet.