1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost
convention, on the accrual basis of accounting and comply with the
mandatory accounting standards and statements issued by the Institute
of Chartered Accountants of India (ICAI) and the provisions of the
Companies Act. 1956. to the extent applicable.
2. REVENUE RECOGNITION
Revenue from software development on time-and-material basis is
recognized based on performance of related services. For fixed price
contracts, revenue is recognized on the percentage of completion basis.
Revenue from the sale of software products developed is recognized when
the sale has been completed with the passing of title. However from last
two- three years company is not doing any business.
The investments are stated at cost.
4. FIXED ASSETS AND DEPRECIATION
The company had suspended all its services earlier and major portion of
the fixed assets have been sold , hence no depreciation has been
charged. Fixed assets have been sold off at the net realizable value.
5. RETIREMENT AND OTHER BENEFITS
All eligible employees receive benefits from a provident fund, which is
a defined contribution plan. Both the employee and the Company make
monthly contributions to the fund, which is equal to a specified
percentage of the covered employee''s basic salary. The Company has no
further obligations under this plan as because services of employees
have been terminated earlier.
In accordance with the Payment of Gratuity Act, 1972, the Company
provides for gratuity, a defined benefit retirement plan covering
eligible employees. The gratuity plan provides a lump sum payment to
the vested employees at retirement, death, incapacitation or
termination of employment, of an amount based on the respective
employee''s basic salary and the year of employment with the Company.
Provision for gratuity is determined by actuarial valuation as per AS
15 on Employees Benefits (Revised 2005) issued by ICAI. During the year
no further provision made due to termination of services of employees.
During the year no further provision made due to termination of
services of employees.