a) System of Accounting:
I) The Company follows Mercantile System of Accounting and recognises
Income and Expenditure on accrual basis except those with significant
ii) Financial Statements are prepared on Historical Costs basis.
iii) Taxes on Income:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognised subject to
consideration of prudance in respect of deferred tax assets, on timing
difference, being the difference between taxable income and accounting
income that originate in one year and are capable of reversal in one or
more subsequent year.
iv) Segment Accounting:
Segment Revenue, Segement Results, Segment Assets and Segment
Liabilities include the respective amounts identifiable to each of the
1) Revenue recognition is in, accordance with Accounting Standard 9.
sale are accounted net of return claims etc.
2) Revenue from Software development on time and material contract is
recognised based on software development and billed to clients as per
the terms of specific contracts.
3) Income from Services is recognised upon rendering of services and
Income from maintenance contract relating to the year is recognised
when the contract is entered into on a time proportionate basis.
Investment is valued at cost which are Long Term in nature .
vii) Valuation of Inventories:
a) Closing Stock is valued at cost or Market Value whichever is lower.
b) Work In Progress;Computer Software product development is in
progress and all cost incurred related to the same till the Balance
Sheet date is transferred to work in Progress Account.
viii) Sundry Debtorsand Loans & Advances:
Sundry Debtors and Loans & Advances are stated at the value realised in
the ordinary course of business. Irrecoverable amounts, if any, are
accounted and /or provided for as per managements judgement or only
upon final seulc-vent of accounts with the parties.
ix) Fixed Assets & Depreciation:
Since company dont have any Fixed Assets at beginning or year end
itsValuation and Depreciation thereon is not applicable.
x) Contingent Liabilities if any are not provided and are disclosed in
Notes on Accounts .