Computech International Ltd. कंपली की लेखा नीति

Mar 31, 2011

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Mar 31, 2010

A. Accounting Policies:

1. Fixed Assets:

1.1 Fixed Assets are stated at Historical Cost less depreciation/ amortization.

1.2The Companys expenditure towards construction / development of assets on land owned by others and leasehold land is capitalized under appropriate asset accounts.

1.3 At each Balance Sheet date recoverable value (higher of net selling price and value in use) of assets/ cash generating units are assessed and compared with their carrying value. Consequent impairment loss, if any, is charged to Profit & Loss account or revaluation reserve if already exists in respect of related assets /cash generating units.

On subsequent Balance Sheet date whenever recoverable value becomes higher than carrying value, impairment loss is reversed and credited to Profit & Loss account or revaluation reserve to the extent already charged in the respective accounts.

1.4 Software acquired for internal use is capitalized only if future benefits are expected there from and related costs can be measured reliably.

2. Depreciation/Amortisation:

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV to the Companies Act, 1956. Leasehold land is being amortised over the period of lease.

Software are amortised over a period of five years on Straight Line Method.

3. Inventories:

Inventories are valued at Cost or Net Realisable value whichever is lower. Cost is determined following FIFO & Specific identification method in respect of Inventories of Hardware & Software

respectively.

4. Investments:

Long-term investments are stated at cost, unless there is a permanent decline in value thereof in which case adequate provision / write off is made in the accounts.

5. Borrowing Costs:

Borrowing cost relating to the acquisition / construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete and commercially stabilized. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

6. Retirement Benefits:

Short term Employment Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered.

Contributions towards Provident Funds and Employees State insurance Scheme for eligible employees are recognised as expenses.

Liability towards gratuity and leave encashment benefits covering eligible employees, evaluated on the basts of year end actuarial valuation, is recognised as charge

Actuarial gains/loses arising in Defined Benefit Plans are recognized immediately in the Profit and Loss Account as income/expense for the year in which they occur.

7. Recognition of Income and Expenditure:

7.1 The financial statements have been prepared under Historical Cost Convention in accordance with the generally accepted accounting principles and the provisions of Companies Act, 1956, as adopted consistently by the Company.

7.2 Income from services rendered for Software Development is recognized on Completed Service Contract Method.

7.3 The Company follows Mercantile System of accounting and recognizes items of income and expenditure on accrual basis.

7.4 Overdue interest on outstanding dues wherever disputed is accounted for as and when received on the grounds of prudence.

7.5 Sales are net of returns, claims and discounts etc.

8. Foreign Exchange Transactions:

8.1 Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of transaction.

8.2 Any gain or loss on account of exchange difference either on settlement or on transaction is recognized in the Profit and Loss Account except in cases where they relate to the acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

8.3 Assets and liabilities relating to foreign currency transactions outstanding at the year-end are translated at the year end rates and the corresponding effect is given in the respective accounts.

9. Taxation:

Provision for Income Tax comprise of current tax and deferred tax charge or release. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income and expenditure that originates in one period and are capable of reversal in one or more subsequent period(s). Deferred tax assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets will be realized.

10. Miscellaneous Expenditure:

a) Deferred Revenue Expenditure:

Deferred Revenue Expenditure incurred is amortized over a period of time for which future benefit is expected.

b) Share Issue Expenses:

Share issue expenses as already incurred are being written off over a period of ten years. Other Share Issue expenses are charged to revenue as and when incurred.

11. Provisions, Contingent liabilities and Contingent Assets:

Provision is recognised in respect of present obligation arising out of past events, where there are reliable estimates of the probable outflows of resources.

Contingent Liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non - occurrence of future event(s). These are not provided for and are disclosed by way of notes on accounts.

Contingent Assets are not provided for or disclosed.