Capricorn Systems Global Solutions Ltd. कंपली की लेखा नीति

Mar 31, 2025

Note 1 : SIGNIFICANT ACCOUNTING POLICIES

1. Corporate Information

Overview and Significant Accounting policies: CAPRICORN SYSTEMS GLOBAL SOLUTIONS LIMITED is a limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956 on 16/03/1985 and registered with register of Companies, Hyderabad with CIN No. L52510TG1985PC043347. The company engages in the business of Information Technology enabled services other related activities.The Equity Shares of the Company are listed on the Bombay Stock Exchange.

Significant Accounting policies:

Statement of compliance

Standalone Financial Statements have been prepared in accordance with the Generally Accepted Accounting Principles in India including Indian Accounting Standards (Ind AS) prescribed under the Section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and relevant provisions of the Companies Act, 2013Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31 March, 2025, the Statement of Profit and Loss for the year ended 31 March 2025, the Statement of Cash Flows for the year ended 31 March 2025 and the Statement of Changes in Equity for the year ended as on that date, and accounting policies and other explanatory information (together hereinafter referred to as ''Standalone Financial Statements'' or ''financial statements'').These financial statements are approved for issue by the Board of Directors on 29th May 2025.

Basis of preparation of Financial Statements

The separate financial statements of the company are prepared in accordance with Indian Accounting Standards (Ind AS), under the historical cost convention on the accrual basis as per the provisions of the Companies Act, 2013.Exceptions if any are given with suitable disclosure in the Financial statements wherever we come across.

The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies(Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued accountingstandard is initially adopted or a revision to an existing accounting standard requires a changein theaccounting policy hitherto in use.

Use of estimate

The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

This note provides an overview of the areas where there is a higher degree of judgment or complexity. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation.

A summary of the significant accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all the periods presented in the financial statements.

(a) Revenue Recognition

Revenue from Software Development is recognized based on Software Developed and billed asper the terms of specific contracts. Revenue from providing services is recognised in the accounting period in which the services are rendered. Revenue is recognised based on actual service provided vis-a-vis proportion of

the total services to be provided at the end of the year. Income from dividend if any, isaccounted on cash basis.

(b) Interest income

Interest income is recognized on a time proportion basis considering the amount outstandingand the applicable interest rate. Interest income is included under the head "other income" in thestatement of profit and loss.

(c) Income taxes:

The income tax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current tax

The tax currently payable is based on taxable profit for the year. The Company''s current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit.

Minimum Alternate Tax (MAT)

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability.

Current and deferred tax expense is recognised in the Statement of Profit and Loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

(d) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

(e) Employee benefits:

Employee benefits include salaries, wages, contribution to provident fund, gratuity, leave encashment towards un-availed leave and other terminal benefits.

Short-term employee benefits

Wages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Post-employment benefits:

Defined contribution plan Employee Benefit under defined contribution plans comprises of Contributory provident fund, Post Retirement benefit scheme, Employee pension scheme, composite social security scheme etc. is recognized based on the undiscounted amount of obligations of the Company to contribute

to the plan.The same is paid to a fund administered by Central Government.Contributions are charged to the Profit and Loss Account in the year in which they accrue.

Other long-term employee benefits

Other long-term employee benefit comprises of leave encashment towards un-availed leave and compensated absences, these are recognized based on the present value of defined obligation, which is computed using the projected unit credit method, carried out at the end of each annual reporting period. These are accounted either as current employee cost or included in cost of assets as permitted in the period in which they occur.

(f) Property, plant and equipment:

The cost of property, plant and equipment comprises its purchase price net of any tradediscounts and rebates, any import duties and other taxes (other than those subsequentlyrecoverable from the tax authorities), any directly attributable expenditure on making theasset ready for its intended use, including relevant borrowing costs for qualifying assets andany expected costs of decommissioning. Expenditure incurred after the property, plant andequipment have been put into operation, such as repairs and maintenance, are charged tothe Statement of Profit and Loss in the year in which the costs are incurred.

Property, plant and equipment except freehold land held for use in the production, supply oradministrative purposes, are stated in the balance sheet at cost less accumulated depreciationand accumulated impairment losses, if any.

Depreciation and useful life

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, lessits residual values over their useful lives, using straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013. Depreciation is recognised to write off the cost of assets (otherthan freehold land and properties under construction).

Derecognition

An item of PPE is de-recognised upon disposal or when no future economic benefits are expectedto arise from the continued use of the asset. Any gain or loss arising on the disposal or retirementof an item of property, plant and equipment is determined as the difference between the salesproceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss.

(g) Intangible assets:

Useful life and amortisation Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line basis over the useful lives of the asset from the date of capitalisation. Intangible assets withindefinite useful lives that are acquired separately are carried at cost less accumulatedimpairment losses.

Intangible assets acquired in a business combination viz. Goodwill, Patents, Copyrights and Brands that do not have definite useful life are not amortised. If events or changes in circumstances indicate that they might be impaired, they are tested for impairment.

Derecognition

Intangible assets are derecognised on disposal, or when no future economic benefits are expectedfrom use or disposal. Gains or losses arising from derecognition of an intangible asset aredetermined as the difference between the net disposal proceeds and the carrying amount The Company has elected to continue with carrying value of all its intangible assets recognised ason transition date, measured as per the previous GAAP and use that carrying value as its deemedcost as of transition date.

(h) Impairment

At the end of each reporting year, the Company reviews the carrying amounts of its tangibleand intangible assets to determine whether there is any indication that those assets havesuffered an impairment loss. If

any such indication exists, the recoverable amount of theasset is estimated in order to determine the extent of the impairment loss (if any). An impairment loss is recognised immediately in the Statementof Profit and Loss.

(i) Work in progress

Particulars As at 31st,March, 2025 As at 31st March, 2024

Capital Work-in-Progress (Rupees in hundreds) 83,500.00 83,500.00

The capital work-in-progress ageing schedule for the years ended March 31,2025 and March 31,2024 is as follows :

Particulars Amount in capital-work-in progress for a period of

Less than 1 year 1-2 years 2-3 years More than 3 Years

Projects in progress (Rupees in Lakhs) - - - 83,500.00

Capital Work-in-Progress includes advances for capital items, capital items under erection and pre- operative expenses pending allocation on the assets to be commissioned.

Completion schedule : Whose completion is over due or has exceeded its cost compared to original plan. No such CWIP for the current reporting period - NIL (previous reporting period).

(j) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

(k) Foreign exchange translation

The functional currency of the Company is Indian Rupees which represents the currency ofthe primary economic environment in which it operates. Foreign currency transactions are translated into the functional currency using the exchangerates at the dates of the transactions. Foreign exchange gains and losses resulting fromthe settlement of such transactions are generally recognised in profit or loss. Monetarybalances arising from the transactions denominated in foreign currency are translated tofunctional currency using the exchange rate as on the reporting date. Any gains or loss onsuch translation, are generally recognised in profit or loss. Exchange differences on monetary items are recognised in Statement of Profit and Loss in the year in which they arise.

(l) Cash and cash equivalents

Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to insignificant risk of changes in value.

(m) Earnings Per Share:

Basic earnings per shareis calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

Diluted earnings per share is computed by dividing the profit or loss after tax after considering the effect of interest and other financing costs or income (net of attributable taxes) associated with dilutive potential equity shares by the weighted average number of equity shares.

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Mar 31, 2024

Significant Accounting policies:

Statement of compliance

Standalone Financial Statements have been prepared in accordance with the Generally Accepted Accounting
Principles in India including Indian Accounting Standards (Ind AS) prescribed under the Section 133 of the
Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as
amended and relevant provisions of the Companies Act, 2013Accordingly, the Company has prepared
these Standalone Financial Statements which comprise the Balance Sheet as at 31 March, 2024, the
Statement of Profit and Loss for the year ended 31 March 2024, the Statement of Cash Flows for the year
ended 31 March 2024 and the Statement of Changes in Equity for the year ended as on that date, and
accounting policies and other explanatory information (together hereinafter referred to as ''Standalone Financial
Statements'' or ''financial statements'').These financial statements are approved for issue by the Board of
Directors on 29th May 2024.

Basis of preparation of Financial Statements

The separate financial statements of the company are prepared in accordance with Indian Accounting
Standards (Ind AS), under the historical cost convention on the accrual basis as per the provisions of the
Companies Act, 2013.Exceptions if any are given with suitable disclosure in the Financial statements
wherever we come across.

The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies(Indian Accounting
Standards) Rules, 2015 and relevant amendment rules issued thereafter.

Accounting policies have been consistently applied except where a newly issued accountingstandard is
initially adopted or a revision to an existing accounting standard requires a changein theaccounting policy
hitherto in use.

Use of estimate

The preparation of the financial statements in conformity with Ind AS requires the Management to make
estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application
of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent
assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the period. Actual results could differ from those estimates.

This note provides an overview of the areas where there is a higher degree of judgment or complexity.
Detailed information about each of these estimates and judgments is included in relevant notes together
with information about the basis of calculation.

A summary of the significant accounting policies applied in the preparation of the financial statements are
as given below. These accounting policies have been applied consistently to all the periods presented in the
financial statements.

(a) Revenue Recognition

Revenue from Software Development is recognized based on Software Developed and billed asper the
terms of specific contracts. Revenue from providing services is recognised in the accounting period in which
the services are rendered. Revenue is recognised based on actual service provided vis-a-vis proportion of
the total services to be provided at the end of the year. Income from dividend if any, isaccounted on cash
basis.

(b) Interest income

Interest income is recognized on a time proportion basis considering the amount outstandingand the applicable
interest rate. Interest income is included under the head "other income" in thestatement of profit and loss.

(c) Income taxes:

The income tax expense or credit for the period is the tax payable on the current period''s taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and to unused tax losses.

Current tax

The tax currently payable is based on taxable profit for the year. The Company''s current tax is calculated
using tax rates and laws that have been enacted or substantively enacted by the end of the reporting
period.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the Financial Statements and the corresponding tax bases used in the computation of
taxable profit.

Minimum Alternate Tax (MAT)

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in
India, which is likely to give future economic benefits in the form of availability of set off against future
income tax liability.

Current and deferred tax expense is recognised in the Statement of Profit and Loss, except when they
relate to items that are recognised in other comprehensive income or directly in equity, in which case,
the current and deferred tax are also recognised in other comprehensive income or directly in equity
respectively.

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Mar 31, 2015

A. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared theses financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year. , except for the change in accounting policy explained below.

b. Use of estimate

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c. Revenue Recognition

Revenue from Software Development is recognized based on Software Developed and billed as per the terms of specific contracts. Revenue from the training activity is accounted basing on the proportion of the completion of the course as at the end of the year. Income from dividend is accounted on cash basis.

d. Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

e. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

f. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

i. Tangible Fixed Assets

Fixed assets are accounted at cost and inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

Capital Work-in-Progress includes advances for capital items, capital items under erection and pre- operative expenses pending allocation on the assets to be commissioned.

j. Depreciation

Depreciation on Fixed Assets based on the rates specified in Schedule XIV to the Companies Act, 1956, under Straight Line method.

k. Tax Expenses

i) Current Tax Expense

The Current charge for income tax is calculated in accordance with the tax regulations.

ii) Deferred Tax Expense

Deferred Income tax reflects the impact of timing difference between accounting income and tax income for the year/period. Deferred tax is measured based on the tax rates and the tax laws enacted at the Balance Sheet date. Deferred tax asset is recognized only to the extent of certainty of realization of such asset.

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Mar 31, 2014

A. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared theses financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year. , except for the change in accounting policy explained below.

b. Use of estimate

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c. Revenue Recognition

Revenue from Software Development is recognized based on Software Developed and billed as per the terms of specific contracts. Revenue from the training activity is accounted basing on the proportion of the completion of the course as at the end of the year. Income from dividend is accounted on cash basis.

d. Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

e. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

. f. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

i. Tangible Fixed Assets

Fixed assets are accounted at cost and inclusive of inward freight, duties and taxes and incidental expenses related to acquisition.

Capital Work-in-Progress includes advances for capital items, capital items under erection and pre- operative expenses pending allocation on the assets to be commissioned.

j. Depreciation

Depreciation on Fixed Assets based on the rates specified in Schedule XIV to the Companies Act, 1956, under Straight Line method.

k. Tax Expenses

i) Current Tax Expense

The Current charge for income tax is calculated in accordance with the tax regulations.

ii) Deferred Tax Expense

Deferred Income tax reflects the impact of timing difference between accounting income and tax income for the year/period. Deferred tax is measured based on the tax rates and the tax laws enacted at the Balance Sheet date. Deferred tax asset is recognized only to the extent of certainty of realization of such asset.

3. There is no information from any of the suppliers regarding their status as small scale industrial undertakings.Hence information regarding dues to such undertakings could not be furnished.

4. The Previous year figures have been regrouped or reclassified wherever necessary to be in conformity with the current year figures. All amounts in the financial statements are presented in Rupees except where ever specifically mentioned.

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Mar 31, 2012

A. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared theses financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules' 2006' (as amended) and the relevant provisions of the Companies Act' 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year. ' except for the change in accounting policy explained below.

b. Change in Presentation and disclosure of financial statements

During the year ended March 31' 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 disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

c. Use of estimate

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments' estimates and assumptions that affect the reported amounts of revenues' expenses' assets and liabilities and the disclosure of contingent liabilities' at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions' uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

d. Revenue Recognition

Revenue from Software Development is recognized based on Software Developed and billed as per the terms of specific contracts. Revenue from the training activity is accounted basing on the proportion of the completion of the course as at the end of the year. Income from dividend is accounted on cash basis.

e. Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

f. Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share' the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

g. Inventories

Medical supplies' stores and spares are valued at cost. Cost of pharmacy items is computed on the basis of Specific identification Method.

h. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

The company does not recognize a contingent.

i. Tangible Fixed Assets

Fixed assets are accounted at cost and inclusive of inward freight' duties and taxes and incidental expenses related to acquisition.

Capital Work-in-Progress includes advances for capital items' capital items under erection and pre- operative expenses pending allocation on the assets to be commissioned.

j. Depreciation

Depreciation on Fixed Assets based on the rates specified in Schedule XIV to the Companies Act' 1956' under Straight Line method.

k. Tax Expenses

i) Current Tax Expense

The Current charge for income tax is calculated in accordance with the tax regulations.

ii) Deferred Tax Expense

Deferred Income tax reflects the impact of timing difference between accounting income and tax income for the year/period. Deferred tax is measured based on the tax rates and the tax laws enacted at the Balance Sheet date. Deferred tax asset is recognized only to the extent of certainty of realization of such asset.

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Mar 31, 2010

A. Basis for preparation of accounts:

The accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Indian Companies Act, 1956.

B. Fixed Assets:

i) Fixed Assets are stated at Historical Cost, less accumulated depreciation. Cost of acquisition of Fixed Assets is inclusive of freight, duties, taxes and incidental expenses thereto and interest on direct borrowings up to commissioning, wherever applicable.

ii) Depreciation is provided in accordance with the rates and rules specified in Schedule XIV to the Companies Act, 1956, under Straight Line Method.

iii) Capital Work-in-Progress includes advances for capital items, capital items under erection and pre- operative expenses pending allocation on the assets to be commissioned.

C. Foreign Exchange Transactions:

Transactions in Foreign Exchange, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the date of transactions. Assets and Liabilities remaining unsettled at the end of the year other than those covered by forward contracts are translated at the closing rate. Realized gains and losses on foreign exchange transactions other than those relating to Fixed Assets are recognized in the Profit and Loss Account. Gain or Loss on translation and realized Gain or Loss in respect of Liabilities incurred to acquire Fixed Assets are adjusted to the carrying cost of Fixed Assets.

D. Miscellaneous Expenditure:

To write off Preliminary Expenses over a period of Ten Years.

E. Accounting Convention:

The Financial Statements are prepared under Historical Cost Convention on an accrual basis.

F. Revenue Recognition:

Revenue from Software Development is recognized based on Software Developed and billed as per the terms of specific contracts. Revenue from the training activity is accounted basing on the proportion of the completion of the course as at the end of the year. Income from dividend is accounted on cash basis.