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SENSEX NIFTY India | Accounting Policy > Computers - Software Medium & Small > Accounting Policy followed by B2B Software Technologies - BSE: 531268, NSE: N.A

B2B Software Technologies

BSE: 531268|ISIN: INE151B01011|SECTOR: Computers - Software Medium & Small
Nov 28, 16:00
B2B Software Technologies is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
 2.1 Accounting convention
 The Financial Statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting in
 accordance with Generally Accepted Accounting Principles in India
 (GAAP) and comply with the mandatory Accounting Standards as specified
 in the Companies (Accounting Standards) Rules 2006 (''Rules''), other
 pronouncements of the Institute of Chartered Accountants of India
 (ICAI) to the extent applicable, the provisions of Companies Act, 1956,
 the provisions of the Companies Act 2013 (to the extent notified) and
 guidelines issued by Securities and Exchange Board of India.
 2.2 Use of estimates
 The Preparation of financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported amounts of assets and liabilities and the disclosure relating
 to contingent assets and contingent liabilities as on date of financial
 statements and the reported amounts of income and expenses during the
 period. Actual results could differ from the estimates. Examples of
 such estimates include provision for doubtful debt, future obligation
 under employee retirement benefit plan, income taxes, useful life of
 fixed assets, etc. Any revision to accounting estimates is recognised
 prospectively in current and future periods.
 2.3 Cash flows
 Cash flows are reported using the indirect method, where by the net
 profit before tax is adjusted for the effects of transactions of a non
 cash nature, any deferrals or accruals of past or future operating cash
 receipts or payments and item of income or expenses associated with
 investing or financing cash flows. The cash flows from operating,
 investing and financing activities of the Company are segregated and
 presented separately.
 2.4 Revenue recognition
 Revenue from Consultation 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 Sale of
 software products, revenue is recognised on transfer of ownership to
 the customers.
 2.5 Fixed assets
 Fixed assets are stated at cost of acquisition. Cost of acquisition is
 inclusive of freight, duties, levies and all incidentals directly or
 indirectly attributable to bringing the asset to its working condition
 for its intended use. The cost of fixed assets includes cost of initial
 warranty/ insurance spares purchased along with the capital asset,
 which are grouped as single item under respective assets.
 Depreciation is computed based on the useful life of the assets as
 prescribed in schedule II of the Companies Act 2013. Depreciation is
 calculated using written down value Method. Depreciation is calculated
 on a pro-rata basis from the date of installation / capitalization till
 the date the assets are sold or disposed.
 The company owns Intellectual Propert 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
 over a period of 10 years
 2.6 Foreign currency transactions
 Foreign currency transactions are initially recorded at the rates of
 exchange ruling at the date of transaction.
 At the Balance Sheet date, foreign currency monetary items are reported
 using the closing/contracted rate. Non monetary items denominated in
 foreign currency are reported at the exchange rate ruling at the date
 of transaction.
 All exchange differences are recognised as income or expense in the
 period in which they arise.
 2.7 Inventory
 Work in Progress is valued at cost or rate assured under a contract
 whichever is lower.
 2.8 Investments
 Long-term investments are stated at cost. A provision for diminution is
 made to recognise a decline, other than temporary, in the value of
 long-term investments. Current investments are carried at the lower of
 cost and fair value. The comparison of cost and fair value is done
 separately in respect of each category of investment.
 2.9 Earnings per share
 Basic earnings per share are computed by dividing the net profit or
 loss after tax attributable to equity shareholders for the year by the
 weighted average number of equity shares outstanding during the year.
 For the purpose of calculating diluted earnings per share, net profit
 or loss after tax attributable to equity shareholders and the weighted
 average number of shares outstanding during the year are adjusted for
 the effects of all dilutive potential equity shares. Dilutive potential
 equity shares are deemed converted as of the beginning of the period,
 unless they have been issued at a later date. In computing the dilutive
 earnings per share, only potential equity shares that are dilutive and
 that either reduces the earnings per share or increases loss per share
 are included.
 2.10 Provisions and contigencies
 The Company recognises a provision when there is a present obligation
 as a result of past obligating event that probably requires an outflow
 of resources and a reliable estimate can be made of the amount of the
 obligation. A disclosure for a contingent liability is made when there
 is a possible obligation or a present obligation that may, but probably
 will not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 Provisions for onerous contracts i.e. contracts where the expected
 unavoidable costs of meeting the obligations under the contract exceed
 the economic benefits expected to be received under it, are recognized
 when it is probable that an outflow of resources embodying economic
 benefits will be required to settle a present obligation as a result of
 an obligating event, based on a reliable estimate of such obligation.
Source : Dion Global Solutions Limited
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