ANNUAL REPORT 2005-2006
NOTES ON ACCOUNTS
Significant accounting policies and notes forming part of accounts:
1. Significant Accounting Polices:
Basis of accounting:
The financial statements for the year has been complied/prepared in
accordance with the historical cost convention and as an on going concern.
The basis adopted materially complies with the requirements as provided in
the accounting standards.
NOTES TO ACCOUNTS:
A) consequent upon collapse of the operating office located at 'B' Wing,
III Floor Poonam Chambers, Dr Annie Basant Road, worli, Mumbai-400018 on
16th September, 1997, the company lost all fixed assets, current assets and
all records. The company had to rely on available document from outside
agencies for compiling the accounts for the year 1997-98 and the same had
to be relied upon for continuity and inclusion in subsequent account annual
B) Having lost all the fixed and current assets located at the operating
office due to collapse of the building the company, has shown the balance
outstanding un the books prior to the collapse as 'Claim receivable' based
on legal opinion this claim receivable has been classified separately in
the current assets schedule. The realisibility of the claim will depend
upon the out come of the legal proceeding.
C) No provision has been made in the accounts for the interest due/payable
to the institutions/bank for the year under review since 16th September,
D) The company lost all inventories as on 16th September, 1997 due to
collapse of the operating office and based on legal opinion, the balance
outstanding in the books have been included under claim receivable and has
been classified under current assets subsequent to 16th September, 1997 any
inventory acquired/generated has been valued at cost or market
price/realizable value whichever is lower.
E) The net worth of the company would have been lower than 50%of its peak
net worth but for the claim receivable/lodged as shown under current
assets. Under the circumstances and based on the legal opinion, the company
did not make any reference to BIER as was required for a sick company
within the meaning of section 3(1)(0) of the sick industrial companies
(special provision) act, 1985.
F) Some of the debit/credit balance, balance due to/from banks, advance,
debtors, creditor are pending confirmation/reconciliation.
G) Contingent liabilities:
Current year-Nil Previous year - Nil
H) Quantitative details: Current Year Previous Year
(Rs.in Lakhs) (Rs.in Lakhs)
i) Licenced Capacity N.A N.A
ii) Installed Capacity N.A N.A
iii) Sales & Services
business software & others 34.55 38.58
iv) Computer software N.A N.A
The nature of products dealt with and the nature of services provided by
the company are not capable of being expressed in generic units. Hence, its
is not possible to give the quantitative vi of the companies act, 1956.
k) Expenditure in foreign currency Current Year Previous Year
(Rs.in Lakhs) (Rs.in Lakhs)
Foreign Travel Nil Nil
l) Earning in foreign currency
software development services
and products( exports) Nil Nil
m) Remuneration to Auditors Rs.7,500 Rs.7,500
Statutory Audit Rs.2,500 Rs.2.500
Tax Audit Nil Nil
i) Previous years figures have shown regrouped/rearranged, wherever
ii) All figures are rounded off to nearest rupee.
Depreciation has been accounted for till the availability of the fixed
assets on straight-line method at the rates and in the manner prescribed in
Schedule XIV of the Companies Act, 1956.
III. REVENUE RECOGNITION:
Revenue recognition from Sales is recognized after dispatch of goods to
For V. S. PARAB & ASSOCIATES ON BEHALF OF THE BOARD
V. S. PARAB S PAWASKAR PHILIP AMOLIK
PROPRIETOR DIRECTOR DIRECTOR
Place : Mumbai
Dated : 26/10/2006