I. The Company has purchased Motor Car on Hire Purchase basis from
Kotak Mahindra in the year 2008. The same has been secured against the
hypothecat and personal guarantee of the directors
II. The Company has received Rs. 12,92,636/- (equivalent to Euros
20,000) during the financial year 2009-10 towards advance for the sale
of 80% shareholding in its wholly owned subsidiary B2B Technologies
Kassel Gmbh. The shares have not been transferred pending approval from
RBI. The company has made a provision of Rs. 39,37,554 towards loss on
sale of investment and a provision for Rs. 13,07,549 for dimunition in
the value of investment.
III. The Wholly Owned Subsidiaries of the company at Malaysia, B2B
Infotech SDN BHD and at Singapore, B2B Infotech Pte Ltd are under
liquidation/The Company has made a provision for dimunition in the
value of investment to the extent of 100% of the carrying amount.
IV. The Company is primarly engaged in Information Technology and
related services. There are no other reportable segments in terms of
Accounting Standard 17 on Segment Reporting issued by the The Institute
of Chartered Accountants of India
V. Consolidated financial Statements - Accounting Standard 21
Consolidated financial statements of the company and its wholly owned
subsidiary viz., B2B Softech inc, USA are enclosed
VI. Interim Financial Reporting - Accounting Standard 25
Quarterly financial result are published in accordance with the
requirement of the listing agreement with Stock Exchange. The
reorganisation and measurement principle as laid down in the standard
have been followed in the preparation of these results.
VII. Intangible Assets - Accounting Standard 26
The company owns Intellectual Property Right relating to its service
business and the carrying amount thereof is disclosed in the schedule
of Fixed Assets. This would be amortised on a written down value method
@ 20 % per annum.
VIII. Basis Of Presentation
The financial statements of the Company are prepared under the
historical cost convention in accordance with the Generally Accepted
Accounting Principles (GAAP) applicable in India and the relevant
provisions of the Companies Act, 1956. The preparation of the financial
statements in conformity with the GAAP requires that the management
makes estimates and assumptions that affect the reported amounts of
assets and liabilities, disclosure of contingent liabilities as at the
date of the financial statements, and the reported amounts of revenue
and expenses during the reporting period.
IX. Revenue Recognition
Revenue from professional services consists of revenue earned from
services performed on a time and material basis and time bound fixed -
price engagements. In respect of Time and Material Contracts, revenue
is recognised as and when the services are performed. In respect of
time bound fixed- price engagements, revenue is recognised using the
percentage of completion method of accounting, unless work completed
cannot be reasonably estimated. The cumulative impact of any revision
in estimates of the percentage of work completed is reflected in the
period in which the change becomes known. In respect of trading
activities, revenue is recognised on transfer of ownership to the
X. Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
capitalised includes material cost, freight, installation cost, duties
and taxes, finance charges and other incidental expenses incurred
during the constructions/installation stage. Depreciation on fixed
assets is computed on the written down value method at the rates
prescribed under Schedule XIV of the Companies Act, 1956. Individual
assets costing less than Rs. 5,000 are depreciated in full in the year
of purchase. Costs of application software for internal use are
generally charged to revenue as incurred due to its estimated useful
lives being relatively short. Capital work in progress includes all
direct expenditure incurred in connection with the acquisition of fixed
assets and also the advances paid therefore.
Investments are classified into current investments and long-term
investments. Current investments are carried at the lower of cost or
fair value. Any reduction in carrying amount and any reversals of such
reductions are charged or credited to the Profit and Loss account.
Long-term investments are carried at cost less provision made to
recognise any decline, other than temporary, in the value of such
XII. Foreign Currency Transactions
In foreign currency are translated at the rates of exchange at the
balance sheet date and resultant gain or loss is recognized in the
profit and loss account.
XIII. Retirement Benefits
Contributions to defined schemes such as provident Fund, Employees
State Insurance scheme are charged as incurred on accrual basis.
Provision for gratuity is made on the basis actuarial valuation.
Work in progress is valued at cost or rate assured under a contract
whichever is lower.
XV. During the year under March 31st 2012, the revised schedule VI
notified under the Companies Act, 1956, has become applicable to the
company, for preparation and presentation of its financial statements.
The adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosure made in the financial statements. The company has also
reclassified/regrouped the previous years figures in accordance with
the requirements applicable in the current year.