I. AS-1 Disclosures of Accounting Policies
Basis of accounting
The financial statements have been prepared under the historical cost
convention in accordance with the accounting standards issued by the
Institute of Chartered Accountants of India and the provisions of the
Companies Act, 1956.
The preparation of the accounts, in conformity with generally accepted
principles, requires that the management of the company makes
estimates, and assumption that affect the reported amounts of income &
expenses of the period, reported balance of assets & liabilities &
disclosure relating to contingent assets & liabilities as of that date
of the accounts.
All Significant items of income and expenditure are accounted on
accrual basis except for claims/refunds which are not ascertainable
with reasonable accuracy, are accounted on cash basis.
II. AS-3 Cash flow Statement
Cash flows are reported using the indirect method, whereby net profit
before tax is adjusted for the effects of transactions of a non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, investing and
financing activities of the company are segregated.
III. AS-5 Net Profit / (Loss) for the period, prior period items and
changes in accounting policies
All items of income & expenses, which are recognized in a period, are
included in the determination of net profit or loss for the period.
This includes items and the effect of changes in accounting estimates.
The net profit or loss for the period comprises the following
components, each of which is disclosed on the face of the statement of
profit and loss:
(a) Profit or loss from ordinary activities; and
(b) Extra-ordinary items.
IV. AS-6 Depreciation Accounting
Depreciation on fixed assets is provided on the written down value of
the assets at the rates prescribed under Schedule XIV of The Companies
Depreciation on addition to fixed assets is provided pro-rata from the
date of capitalization. Depreciation on sale/deduction from fixed
assets is provided for up to the date of sale, deduction or discernment
as the case may be.
Assets costing Rs. 5,000/- or below are depreciated in full in year of
V. AS-9 Revenue recognition
a. Sales of goods are recognized on dispatch to customers and are
recorded net of trade discount.
b. Annual maintenance charges are accounted on pro-rata basis over the
period of contract.
c. Service income is recognized on the completion of service.
d. Dividend is recorded when right to receive the same is established.
e. Reimbursement expected in respect of expenditure required to
ascertain a provision is recognized only when it is virtually certain
that the reimbursement will be received.
VI. AS-10 Fixed Assets
Fixed Assets are stated at historical cost, less accumulated
Historical cost includes original cost of acquisition or revaluation
cost and incidental expenses related to such acquisition and
VII. AS-11 Effects of changes in Foreign Exchange Rates
The Company has recorded the transactions denominated in foreign
currency at the exchange rate prevailing at the date of the
Monetary items denominated in foreign currencies at the year-end are
translated at the exchange rates prevailing on the date of the balance
Any income or expense on account of exchange differences either on
settlement or on translation of transactions other than those in
relation to fixed assets is recognized in the profit and loss account.
VIII. AS-13 Investments
Trade investments are the investments made to enhance the company''s
business interest. Investments are either classified as current or long
term based on the managements intention at the time of purchase.
Current investments are carried at the lower of cost and fair value.
Long term investments are carried at cost and provisions recorded to
recognize any decline, other than temporary, in the carrying value of
Cost includes original cost of acquisition, brokerage and stamp duty.
IX. AS-15 Employee''s Benefits
From 31st March, 2008 all the employees of the company have resigned,
hence no provisions, except those actually payable, are made in the
books of accounts towards retirement benefits of employees.
X. AS-17 Segment Reporting
The Company has only one business segment namely trading in electronic
equipment, as a result segment wise income and expenditure and
particulars of Assets and Liabilities is not applicable.
XI. AS-18 Related Party Disclosure
Disclosure in respect of related party transaction pursuant to
Accounting Standard 18 issued by The Institute of Chartered Accountants
of India for the year ended.
List of Related Parties Subsidiary DEL-Automation Pvt. Ltd (Till March
11,2012) Group entities Soften Systems Pvt. Ltd. UniDEL Advisors Pvt.
Ltd. Shasa Systems Pvt. Ltd. Spring Consultants Kimasu Investments
Sumaki Investments Ruby Enterprise Diamond Enterprise Emerald
Enterprise Saphire Enterprise Key Management Personnel (KMP) Mr.
Kishore R. Dalai, Chairman Mr. Sunil K. Dalai, Managing Director
XII. AS-20 Earning Per Share:
In determining earning per share, the company considers the net profit
after tax and includes the post tax effect of any extra
ordinary/exceptional item. The number of shares used in computing basic
earning per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing diluted
earnings per share comprises the weighted average shares consider for
deriving basic earning per share, and also the weighted average number
of equity shares that could have been issued on the conversion of all
diluted potential equity shares. The diluted potential equity shares
are adjusted for the proceeds receivable, had the shares been actually
issued at fair value (i.e. the average market value of outstanding
shares). Diluted potential equity shares are deemed converted as of the
beginning of the period, unless issued at the latter date. The number
of shares and potentially diluted equity shares are adjusted for any
stock splits and bonus shares issues affected prior to the approval of
the financial statements by the board of directors.
XIII. AS- 22 Deferred Tax Assets / (Liability):
Income Taxes are computed using the tax effect accounting network were
taxes are accrued in the same period the related revenue and expenses
arise. A provision is made for income tax annually based on the tax
liability completed, after considering tax allowance and exemptions.
Provisions are recorded when it is estimated that a liability due to
disallowances or other matter is probable.
The differences that result between the profit considered for income
taxes and the profit as per financial statement are identified, and
there after a deferred tax Assets or deferred tax liability is recorded
for timing differences, namely the differences that originate in one
accounting period and reverse in another, based on the tax effect of
the aggregate amount being consider. The tax effect is calculated on
the accumulated timing differences at the end of an accounting period
based on prevailing enacted or substantially enacted regulations.
Deferred tax assets are recognized only if there is reasonable
certainty that they will be realized and reviewed for the
appropriateness of their respective carrying values at each balance
sheet date. Tax benefit of deductions earned on exercise of employee
stock option in excess of compensation charge to the profit and loss
account is credited to the share premium account.
XIV. AS - 28 Impairment of Assets:
The management periodically accesses, using internal sources, whether
there is an indication that an asset may be impaired. An impairment
occurs where the carrying value exceed the present value of future cash
flows expected to arise from the continuing use of assets and its
eventual disposal. The impairment loss to be expensed is determined as
the excess of carrying amount over the higher of the assets net sales
price or present value as determined above.
XV. AS - 29 Provision, Contingent Liability and Contingent Assets:
Provision are recognized for liabilities that can be measured only by
using a substantial degree of estimation if,
a. The company has a present obligation as a result of past events
b. The probable outflow of resources is expected to settle the
c. The amount of obligation can be reliably estimated.
Contingent liability is disclosed in case of
a. Present obligation arising out of past event, when it is not
probable that an outflow of resources will be required to settle
b. A possible obligation, when the probability of outflow of resources
is remote Contingent liability not provided for:
(i) Bank guarantee given Rs 360,000/- (previous year Rs 360,000/-)
(ii) Disputed arrears towards society maintenance Rs.10.52 Lacs
(previous year Rs 9.42 lacs)
(iii) Contracts remaining to be executed on capital and current account
and not provided for Nil (Previous Year Nil). (iv) Liabilities to Encad
Inc. for suit filed against company for compensation. Amount is unascertainable.
Contingent assets are neither recognized nor disclosed. Provisions,
contingent liabilities and contingent assets are reviewed on each
balance sheet date.