1. Basis of Accounting :
(a) These accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
(b) Accounting policies which not specifically referred to are
consistent and in consonance with generally accepted accounting
2. Revenue Recognition :
Expenses and Income considered payable and receivable respectively are
accounted on accrual basis.
3. Fixed Assets :
Fixed Assets are stated at cost of acquisition inclusive of taxes and
Depreciation of fixed assets is provided on straight-line basis over
their estimated useful lives at the rates which are higher than the
rate prescribed in Schedule XIV of the Companies Act'' 1956.Individual
assets for less than Rs.5000 are entirely depreciated in the year of
acquisition. The estimated useful lives are as follows:
Computer and Peripherals - 3 years Office Equipment - 5 years
In the case of purchase of assets'' depreciation has been provided on
pro-rata basis from the date of purchase of those assets.
5. Valuation of Closing Stock :
Inventories are valued at lower of cost (determined on
first-in-first-out basis) and Market value.
6. Foreign Currency Transactions :
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the transaction. At the year-end'' all the
monetary assets and liabilities denominated in foreign currency are
restated at the closing exchange rates. Exchange differences resulting
from the settlement of such transactions and from the translation of
such monetary assets and liabilities are recognized in the Profit and