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moneycontrol.com भारत | लेखांकन नीति > Computers - Software Medium & Small > लेखांकन नीति फॉलोड से क्विंटिगरा सॉल्युशंस - बीएसई: 532866, NSE: QUINTEGRA

क्विंटिगरा सॉल्युशंस

बीएसई: 532866  |  NSE: QUINTEGRA  |  ISIN: INE033B01011  |  Computers - Software Medium & Small

खोजें क्विंटिगरा सॉल्युशंस कनेक्शन मार्च 14
लेखांकन नीति साल : मार्च '15
A.  Change in accounting policy
 
 Presentation and disclosure of financial statements
 
 Effective 1st April 2014, the Company has revised the usefull life of
 fixed assets based on Schedule II to the Companies Act, 2013 for the
 purpose of providing depreciation on fixed assets. Accordingly the
 carrying amount of fixed assets as on 1st April 2014 has been
 depreciated over the remaining usefull life of fixed assets.  The
 Company has also reclassified the previous year figures in accordance
 with the requirements applicable in the current year.
 
 B.  Use of estimates
 
 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 outcome
 requiring a material adjustment to the carrying amounts of assets or
 liabilities in future periods.
 
 C.  Tangible fixed assets
 
 Fixed assets are stated at cost, net of accumulated depreciation and
 accumulated impairment losses, if any.  The cost comprises purchase
 price, borrowing costs if capitalization criteria are met and directly
 attributable cost of bringing the asset to its working condition for
 the intended use. Any trade discounts and rebates are deducted in
 arriving at the purchase price.  In case of revaluation of fixed
 assets, any revaluation surplus is credited to the revaluation reserve,
 except to the extent that it reverses a revaluation decrease of the
 same asset previously recognized in the statement of profit and loss,
 in which case the increase is recognized in the statement of profit and
 loss. A revaluation deficit is recognized in the statement of profit
 and loss, except to the extent that it offsets an existing surplus on
 the same asset recognized in the asset revaluation reserve.  Subsequent
 expenditure related to an item of fixed asset is added to its book
 value only if it increases the future benefits from the existing asset
 beyond its previously assessed standard of performance. All other
 expenses on existing fixed assets, including day-to-day repair and
 maintenance expenditure and cost of replacing parts, are charged to the
 statement of profit and loss for the period during which such expenses
 are incurred.  The Company did not elect to exercise an irrevocable
 option to amortize exchange rate fluctuation on long term foreign
 currency monetary asset / liability over the life of the asset /
 liability or by March 31, 2012, whichever is earlier, subsequent to the
 amendment to AS-11 by the Ministry of Corporate affairs.
 
 Gains or losses arising from derecognition of fixed assets are measured
 as the difference between the net disposal proceeds and the carrying
 amount of the asset and are recognized in the statement of profit and
 loss when the asset is derecognized.
 
 D.  Depreciation on tangible fixed assets
 
 Depreciation on fixed assets is calculated on a straight line value -
 single shift basis using the rates those prescribed under the Schedule
 II to the Companies Act, 2013. The company has used the following
 useful life to provide depreciation on its fixed assets.  Building
 (Factory) - 30 years
 
 Building (Other than Factory) - 60 years Plant and Machinery - 15 years
 or based on usage of the assets Office Equipments - 5 years
 
 Furniture and Fittings - 10 years
 
 Computers -3 Years
 
 (Servers & Networks) Computers (Others) - 6 Years
 
 Vehicles - 10 Years (Two Wheelers) &
 
 6 Years (Four Wheelers) The management may carry out the internal
 assessment and independent technical evaluation by the external valuers
 to estimate the useful lives of the above assets which may represent
 the period over which management expects to use these assets.
 
 E.  Intangible assets
 
 Intangible assets acquired separately are measured on initial
 recognition at cost. The cost of intangible assets acquired in an
 amalgamation in the nature of purchase is their fair value as at the
 date of amalgamation. Following initial recognition, intangible assets
 are carried at cost less accumulated amortization and accumulated
 impairment losses, if any. Internally generated intangible assets,
 excluding capitalized development costs, are not capitalized and
 expenditure is reflected in the statement of profit and loss in the
 year in which the expenditure is incurred.
 
 Intangible assets are amortized on a Written Down Value basis over the
 estimated useful economic life. The company uses a rebuttable
 presumption that the useful life of an intangible asset will not exceed
 ten years from the date when the asset is available for use. If the
 persuasive evidence exists to affect that useful life of an intangible
 asset exceeds ten years, the Company amortizes the intangible asset
 over the best estimate of its useful life. Such intangible assets and
 intangible assets not yet available for use are tested for impairment
 annually, either individually or at the cash-generating unit level. All
 other intangible assets are assessed for impairment whenever there is
 an indication that the intangible asset may be impaired.
 
 The amortization period and the amortization method are reviewed at
 least at each financial year end. If the expected useful life of the
 asset is significantly different from previous estimates, the
 amortization period is changed accordingly.  If there has been a
 significant change in the expected pattern of economic benefits from
 the asset, the amortization method is changed to reflect the changed
 pattern. Such changes are accounted for in accordance with AS-5 Net
 Profit or Loss for the Period, Prior Period Items and Changes in
 Accounting Policies.
 
 Gains or losses arising from derecognition of an intangible asset are
 measured as the difference between the net disposal proceeds and the
 carrying amount of the asset and are recognized in the statement of
 profit and loss when the asset is derecognized.
 
 Research and Development costs Research costs are expensed as incurred.
 Development expenditure incurred on an individual project is recognized
 as an intangible asset when the company can demonstrate all the
 following:
 
 1) The technical feasibility of completing the intangible asset so that
 it will be available for use or sale
 
 2) Its intention to complete the asset
 
 3) Its ability to use or sell the asset
 
 4) How the asset will generate future economic benefits
 
 5) The availability of adequate resources to complete the development
 and to use or sell the asset
 
 6) The ability to measure reliably the expenditure attributable to the
 intangible asset during development.
 
 Following the initial recognition of the development expenditure as an
 asset, the cost model is applied requiring the asset to be carried at
 cost less any accumulated amortization and accumulated impairment
 losses.  Amortization of the asset begins when development is complete
 and the asset is available for use. It is amortized on a Written Down
 Value basis over the period of expected future benefit from the related
 project, i.e., the estimated useful life of ten years. Amortization is
 recognized in the statement of profit and loss. During the period of
 development, the asset is tested for impairment annually.
 
 A summary of amortization policies applied to the company''s intangible
 assets is as below:
 
 Goodwill -60%
 
 Brands / Trademarks - 20%
 
 Patents and Intellectual Property - 20% Rights (IPR)
 
 Technical know now - 20%
 
 Computer Software - 40% or based on
 
 use of the asset
 
 The residuel Value if any after amortising at the above rate ie.,based
 on the estimated usefull life of the asset is amortised in the final
 year of the estimated life of the asset.
 
 F.  Leases
 
 Where the company is lessee
 
 Finance leases, which effectively transfer to the company substantially
 all the risks and benefits incidental to ownership of the leased item,
 are capitalized at the inception of the lease term at the lower of the
 fair value of the leased property and present value of minimum lease
 payments. Lease payments are apportioned between the finance charges
 and reduction of the lease liability so as to achieve a constant rate
 of interest on the remaining balance of the liability.  Finance charges
 are recognized as finance costs in the statement of profit and loss.
 Lease management fees, legal charges and other initial direct costs of
 lease are capitalized.
 
 A leased asset is depreciated on a Written Down Value basis over the
 useful life of the asset or the useful life envisaged in Schedule II to
 the Companies Act, 2013, whichever is lower. However, if there is no
 reasonable certainty that the Company will obtain the ownership by the
 end of the lease term, the capitalized asset is depreciated on a
 Written Down Value basis over the shorter of the estimated useful life
 of the asset, the lease term or the useful life envisaged in Schedule
 II to the Companies Act, 2013.
 
 Leases, where the lessor effectively retains substantially all the
 risks and benefits of ownership of the leased item, are classified as
 operating leases. Operating lease payments are recognized as an expense
 in the statement of profit and loss on a straight-line basis over the
 lease term.
 
 Where the company is the lessor Leases in which the company transfers
 substantially all the risks and benefits of ownership of the asset are
 classified as finance leases. Assets given under finance lease are
 recognized as a receivable at an amount equal to the net investment in
 the lease. After initial recognition, the company apportions lease
 rentals between the principal repayment and interest income so as to
 achieve a constant periodic rate of return on the net investment
 outstanding in respect of the finance lease. The interest income is
 recognized in the statement of profit and loss. Initial direct costs
 such as legal costs, brokerage costs, etc. are recognized immediately
 in the statement of profit and loss.
 
 Leases in which the company does not transfer substantially all the
 risks and benefits of ownership of the asset are classified as
 operating leases. Assets subject to operating leases are included in
 fixed assets. Lease income on an operating lease is recognized in the
 statement of profit and loss on a straight-line basis over the lease
 term. Costs, including depreciation, are recognized as an expense in
 the statement of profit and loss. Initial direct costs such as legal
 costs, brokerage costs, etc. are recognized immediately in the
 statement of profit and loss.
 
 Presently the company has taken on lease its operating premises which
 is renewed on a 6 months basis.
 
 G. Borrowing costs
 
 Borrowing cost includes interest, amortization of ancillary costs
 incurred in connection with the arrangement of borrowings and exchange
 differences arising from foreign currency borrowings to the extent they
 are regarded as an adjustment to the interest cost.
 
 Borrowing costs directly attributable to the acquisition, construction
 or production of an asset that necessarily takes a substantial period
 of time to get ready for its intended use or sale are capitalized as
 part of the cost of the respective asset. All other borrowing costs are
 expensed in the period they occur.
 
 H. Impairment of tangible and intangible assets
 
 The company assesses at each reporting date whether there is an
 indication that an asset may be impaired. If any indication exists, or
 when annual impairment testing for an asset is required, the company
 estimates the asset recoverable amount. An asset recoverable amount is
 the higher of an asset or Cash Generating Units (CGU) net selling price
 and its value in use. The recoverable amount is determined for an
 individual asset, unless the asset does not generate cash inflows that
 are largely independent of those from other assets or groups of assets.
 Where the carrying amount of an asset or CGU exceeds its recoverable
 amount, the asset is considered impaired and is written down to its
 recoverable amount. In assessing value in use, the estimated future
 cash flows are discounted to their present value using a pre-tax
 discount rate that reflects current market assessments of the time
 value of money and the risks specific to the asset. In determining net
 selling price, recent market transactions are taken into account, if
 available. If no such transactions can be identified, an appropriate
 valuation model is used.
 
 The company bases its impairment calculation on detailed budgets and
 forecast calculations which are prepared separately for each of the
 company''s CGU to which the individual assets are allocated. These
 budgets and forecast calculations are generally covering a period of
 five years.  For longer periods, a long term growth rate is calculated
 and applied to project future cash flows after the fifth year.
 
 Impairment losses of continuing operations, including impairment on
 inventories, are recognized in the statement of profit and loss, except
 for previously revalued tangible fixed assets, where the revaluation
 was taken to revaluation reserve. In this case, the impairment is also
 recognized in the revaluation reserve up to the amount of any previous
 revaluation.
 
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 
 An assessment is made at each reporting date as to whether there is any
 indication that previously recognized impairment losses may no longer
 exist or may have decreased. If such indication exists, the company
 estimates the assets or CGUs recoverable amount. A previously
 recognized impairment loss is reversed only if there has been a change
 in the assumptions used to determine the asset''s recoverable amount
 since the last impairment loss was recognized. The reversal is limited
 so that the carrying amount of the asset does not exceed its
 recoverable amount, nor exceed the carrying amount that would have been
 determined, net of depreciation, had no impairment loss been recognized
 for the asset in prior years. Such reversal is recognized in the
 statement of profit and loss unless the asset is carried at a revalued
 amount, in which case the reversal is treated as a revaluation
 increase.
 
 I.  Grants and subsidies
 
 Grants and subsidies from the government are recognized when there is
 reasonable assurance that (i) the company will comply with the
 conditions attached to them, and (ii) the grant / subsidy will be
 received.
 
 When the grant or subsidy relates to revenue, it is recognized as
 income on a systematic basis in the statement of profit and loss over
 the periods necessary to match them with the related costs, which they
 are intended to compensate. Where the grant relates to an asset, it is
 recognized as deferred income and released to income in equal amounts
 over the expected useful life of the related asset.
 
 Where the company receives non-monetary grants, the asset is accounted
 for on the basis of its acquisition cost.  In case a non-monetary asset
 is given free of cost, it is recognized at a nominal value.
 
 Government grants of the nature of promoters'' contribution are credited
 to capital reserve and treated as a part of the shareholders'' funds.
 
 Grants received on agreed terms to perform research activites are
 recognized when there is reasonable assurance that (i) the company will
 comply with the conditions attached to them, and (ii) the grant will be
 received. Research costs are expensed as incurred.
 
 J.  Investments
 
 Investments, which are readily realizable and intended to be held for
 not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments.
 
 On initial recognition, all investments are measured at cost.  The cost
 comprises purchase price and directly attributable acquisition charges
 such as brokerage, fees and duties.  If an investment is acquired, or
 partly acquired, by the issue of shares or other securities, the
 acquisition cost is the fair value of the securities issued. If an
 investment is acquired in exchange for another asset, the acquisition
 is determined by reference to the fair value of the asset given up or
 by reference to the fair value of the investment acquired, whichever is
 more clearly evident.
 
 Current investments are carried in the financial statements at lower of
 cost and fair value determined on an individual investment basis.
 Long-term investments are carried at cost. However, provision for
 diminution in value is made to recognize a decline other than temporary
 in the value of the investments.
 
 On disposal of an investment, the difference between its carrying
 amount and net disposal proceeds is charged or credited to the
 statement of profit and loss.
 
 Investment property
 
 An investment in land or buildings, which is not intended to be
 occupied substantially for use by, or in the operations of, the
 company, is classified as investment property.  Investment properties
 are stated at cost, net of accumulated depreciation and accumulated
 impairment losses, if any.
 
 The cost comprises purchase price, borrowing costs if capitalization
 criteria are met and directly attributable cost of bringing the
 investment property to its working condition for the intended use. Any
 trade discounts and rebates are deducted in arriving at the purchase
 price.
 
 Depreciation on building component of investment property is calculated
 on a written down value basis using the rate prescribed under the
 Schedule II to the Companies Act, 2013 as mentioned in point (d) above.
 
 On disposal of an investment, the difference between its carrying
 amount and net disposal proceeds is charged or credited to the
 statement of profit and loss.
 
 K. Inventories & Quantitative Details
 
 The Company is a service company primarily rendering information
 technology services. Accordingly it doesnot hold any physical
 inventories.
 
 The Company is primarily engaged in development and maintenance of
 computer software. The production and sale of such software cannot be
 expressed in generic unit.
 
 L.  Revenue recognition
 
 Operational Revenue
 
 Revenue from software development services comprises revenue from time
 and material and fixed-price contracts.
 
 Revenue from time and material contracts are recognized as related
 services are performed.
 
 Revenue from fixed-price contracts are recognized in accordance with
 the percentage of completion method / as per the terms of the contract.
 
 Maintenance revenue is considered on acceptance of the contract and is
 accrued over the period of the contract.  Other income is recognized on
 accrual basis.
 
 Revenue from customer training, support and other services is
 recognized as the related services are performed.
 
 Cost and related earnings in excess of billings are classified as
 ''Unbilled revenues'' under loans and advances while the billing in
 excess of cost and related earnings is classified as ''Unearned revenue''
 under current liabilities.  Provision for estimated losses, if any, on
 incomplete contracts are recorded in the period in which such losses
 become probable based on the current contract estimates.
 
 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.
 
 Dividends
 
 Dividend income is recognized when the company''s right to receive
 dividend is established by the reporting date.
 
 M. Foreign currency translation
 
 Foreign currency transactions and balances
 
 Initial recognition
 
 Foreign currency transactions are recorded in the reporting currency,
 by applying to the foreign currency amount the exchange rate between
 the reporting currency and the foreign currency at the date of the
 transaction.
 
 Conversion
 
 Foreign currency monetary items are retranslated using the exchange
 rate prevailing at the reporting date.  Non-monetary items, which are
 measured in terms of historical cost denominated in a foreign currency
 are reported using the exchange rate at the date of the transaction.
 Non-monetary items, which are measured at fair value or other similar
 valuation denominated in a foreign currency, are translated using the
 exchange rate at the date when such value was determined.
 
 Exchange differences
 
 From accounting periods commencing on or after 7 December 2006, the
 company accounts for exchange differences arising on translation /
 settlement of foreign currency monetary items as below:
 
 1) Exchange differences arising on a monetary item that, in substance,
 forms part of the company''s net investment in a non-integral foreign
 operation is accumulated in the foreign currency translation reserve
 until the disposal of the net investment. On the disposal of such net
 investment, the cumulative amount of the exchange differences which
 have been deferred and which relate to that investment is recognized as
 income or as expenses in the same period in which the gain or loss on
 disposal is recognized.
 
 2) The Company did not elect to exercise an irrevocable option to
 amortize exchange rate fluctuation on long term foreign currency
 monetary asset / liability over the life of the asset / liability or by
 March 31, 2012, whichever is earlier, subsequent to the amendment to
 AS-11 by the Ministry of Corporate affairs.
 
 3) Exchange differences arising on other long-term foreign currency
 monetary items are accumulated in the Foreign Currency Monetary Item
 Translation Difference Account and amortized over the remaining life
 of the concerned monetary item.
 
 4) All other exchange differences are recognized as income or as
 expenses in the period in which they arise.
 
 Forward exchange contracts are entered into to hedge foreign currency
 risk of an existing asset / liability.
 
 The premium or discount arising at the inception of forward exchange
 contract is amortized and recognized as an expense / income over the
 life of the contract. Exchange differences on such contracts, except
 the contracts which are long-term foreign currency monetary items, are
 recognized in the statement of profit and loss in the period in which
 the exchange rates change. Any profit or loss arising on cancellation
 or renewal of such forward exchange contract is also recognized as
 income or as expense for the period. Any gain / loss arising on forward
 contracts which are long-term foreign currency monetary items is
 recognized in accordance with paragraph 2 and 3.  During the year
 company have not entered into any forward exchange contracts.
 
 Translation of integral and non-integral foreign operation
 
 The company classifies all its foreign operations as either integral
 foreign operations or non-integral foreign operations.
 
 The financial statements of an integral foreign operation are
 translated as if the transactions of the foreign operation have been
 those of the company itself.
 
 The assets and liabilities of a non-integral foreign operation are
 translated into the reporting currency at the exchange rate prevailing
 at the reporting date and their statement of profit and loss are
 translated at exchange rates prevailing at the dates of transactions or
 weighted average weekly rates, where such rates approximate the
 exchange rate at the date of transaction. The exchange differences
 arising on translation are accumulated in the foreign currency
 translation reserve. On disposal of a non-integral foreign operation,
 the accumulated foreign currency translation reserve relating to that
 foreign operation is recognized in the statement of profit and loss.
 
 When there is a change in the classification of a foreign operation,
 the translation procedures applicable to the revised classification are
 applied from the date of the change in the classification.
 
 N. Retirement and other employee benefits
 
 (i) Short term employee benefit obligations are estimated and provided
 for.
 
 (ii) Post employment benefits and other long-term employee benefits.
 
 a) Defined Contribution plans
 
 Retirement benefit in the form of provident fund is a defined
 contribution scheme. The contributions to the provident fund are
 charged to the statement of profit and loss for the year when the
 contributions are due.  The company has no obligation, other than the
 contribution payable to the provident fund.
 
 b) Defined benefit plans and compensated absences The company operates
 defined benefit plans for its employees, viz., gratuity. The costs of
 providing benefits under these plans are determined on the basis of
 actuarial valuation at each year-end. Separate actuarial valuation is
 carried out for each plan using the projected unit credit method.
 Actuarial gains and losses for defined benefit plans are recognized in
 full in the period in which they occur in the statement of profit and
 loss.
 
 Accumulated leave, which is expected to be utilized within the next 12
 months, is treated as short-term employee benefit. The Company measures
 the expected cost of such absences as the additional amount that it
 expects to pay as a result of the unused entitlement that has
 accumulated at the reporting date.  The Company treats accumulated
 leave expected to be carried forward beyond twelve months, as long-term
 employee benefit for measurement purposes. Such long-term compensated
 absences are provided for based on the actuarial valuation using the
 projected unit credit method at the year-end. Actuarial gains / losses
 are immediately taken to the statement of profit and loss and are not
 deferred. The company presents the entire leave as a current liability
 in the balance sheet, since it does not have an unconditional right to
 defer its settlement for 12 months after the reporting date.
 
 Expenses incurred towards voluntary retirement scheme are charged to
 the statement of profit and loss immediately.
 
 Presently Company''s liability towards gratuity, other retirement
 benefits and compensated absences are not actuarially determined. In
 accordance with the Payment of Gratuity Act, 1972 the Company provides
 for a lump sum payment to eligible employees, at retirement or
 termination of employment based on the last drawn salary and year of
 employment with the company. The gratuity fund is managed by SBI
 Gratuity Fund. The gratuity obligation is provided for based on
 estimates from SBI Gratuity Fund.
 
 O. Accounting for Taxes
 
 Tax expense comprises current and deferred tax. Current income-tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India and tax laws
 prevailing in the respective tax jurisdictions where the company
 operates.  The tax rates and tax laws used to compute the amount are
 those that are enacted or substantively enacted, at the reporting date.
 Current income tax relating to items recognized directly in equity is
 recognized in equity and not in the statement of profit and loss.
 
 Deferred income taxes reflect the impact of timing differences between
 taxable income and accounting income originating during the current
 year and reversal of timing differences for the earlier years. Deferred
 tax is measured using the tax rates and the tax laws enacted or
 substantively enacted at the reporting date. Deferred income tax
 relating to items recognized directly in equity is recognized in equity
 and not in the statement of profit and loss.
 
 Deferred tax liabilities are recognized for all taxable timing
 differences. Deferred tax assets are recognized for deductible timing
 differences only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized. In situations where the company
 has unabsorbed depreciation or carry forward tax losses, all deferred
 tax assets are recognized only if there is virtual certainty supported
 by convincing evidence that they can be realized against future taxable
 profits.
 
 In the situations where the company is entitled to a tax holiday under
 the Income-tax Act, 1961 enacted in India or tax laws prevailing in the
 respective tax jurisdictions where it operates, no deferred tax (asset
 or liability) is recognized in respect of timing differences which
 reverse during the tax holiday period, to the extent the company''s
 gross total income is subject to the deduction during the tax holiday
 period. Deferred tax in respect of timing differences which reverse
 after the tax holiday period is recognized in the year in which the
 timing differences originate. However, the Company restricts
 recognition of deferred tax assets to the extent that it has become
 reasonably certain or virtually certain, as the case may be, that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized.  For recognition of deferred
 taxes, the timing differences which originate first are considered to
 reverse first.  At each reporting date, the company re-assesses
 unrecognized deferred tax assets. It recognizes unrecognized deferred
 tax asset to the extent that it has become reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which such deferred tax assets can be
 realized.
 
 The carrying amount of deferred tax assets are reviewed at each
 reporting date. The company writes-down the carrying amount of deferred
 tax asset to the extent that it is no longer reasonably certain or
 virtually certain, as the case may be, that sufficient future taxable
 income will be available against which deferred tax asset can be
 realized.  Any such write-down is reversed to the extent that it
 becomes reasonably certain or virtually certain, as the case may be,
 that sufficient future taxable income will be available.
 
 Deferred tax assets and deferred tax liabilities are offset, if a
 legally enforceable right exists to set-off current tax assets against
 current tax liabilities and the deferred tax assets and deferred taxes
 relate to the same taxable entity and the same taxation authority.
 
 Exchange differences arising out of deferred tax assets pertain to
 branch profit tax have been recognised in foreign exchange
 translational reserve.
 
 Minimum Alternate Ta x (MAT) paid in a year is charged to the statement
 of profit and loss as current tax. The company recognizes MAT credit
 available as an asset only to the extent that there is convincing
 evidence that the company will pay normal income tax during the
 specified period, i.e., the period for which MAT credit is allowed to
 be carried forward. In the year in which the company recognizes MAT
 credit as an asset in accordance with the Guidance Note on Accounting
 for Credit Available in respect of Minimum Alternative Tax under the
 Income-tax Act, 1961, the said asset is created by way of credit to the
 statement of profit and loss and shown as MAT Credit Entitlement. The
 Company reviews the MAT credit entitlement asset at each reporting
 date and writes down the asset to the extent the company does not have
 convincing evidence that it will pay normal tax during the specified
 period.
 
 P.  Employee stock compensation cost
 
 In accordance with the SEBI (Employee Stock Option Scheme and Employee
 Stock Purchase Scheme) Guidelines,1999 and the Guidance Note on
 Accounting for Employee Share-based Payments, the cost of equity-
 settled transactions is measured using the intrinsic value method and
 recognized, together with a corresponding increase in the Stock
 options outstanding account in reserves. The cumulative expense
 recognized for equity- settled transactions at each repor ting date
 until the vesting date reflects the extent to which the vesting period
 has expired and the company''s best estimate of the number of equity
 instruments that will ultimately vest.
 
 The expense or credit recognized in the statement of profit and loss
 for a period represents the movement in cumulative expense recognized
 as at the beginning and end of that period and is recognized in
 employee benefits expense.
 
 Where the terms of an equity-settled transaction award are modified,
 the minimum expense recognized is the expense as if the terms had not
 been modified, if the original terms of the award are met. An
 additional expense is recognized for any modification that increases
 the total intrinsic value of the share-based payment transaction, or is
 otherwise beneficial to the employee as measured at the date of
 modification.
 
 Q. Segment reporting
 
 As per AS-17, ''Segment Reporting'' issued pursuant to the companies
 (Accounting standard) Rules, 2006, the company operates in single
 business segment and from one geographical area (exports are not
 considered as seperate geographical area) hence seperate disclosure of
 segmental information is not warranted.
 
 R Earnings Per Share (EPS)
 
 Basic EPS
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they are entitled to participate in dividends relative to a
 fully paid equity share during the reporting period. The weighted
 average number of equity shares outstanding during the period is
 adjusted for events such as bonus issue, bonus element in a rights
 issue, share split, and reverse share split (consolidation of shares)
 that have changed the number of equity shares outstanding, without a
 corresponding change in resources.
 
 Diluted EPS
 
 The number of equity shares used in computing diluted earnings per
 share comprises the weighted average equity shares considered for
 deriving basic earnings per share, and also the weighted average number
 of equity shares that could have been issued on the conversion of all
 dilutive potential equity shares. Dilutive potential equity shares are
 deemed converted as of the beginning of the period, unless issued at a
 later date. The number of equity shares and potentially dilutive equity
 shares are adjusted for any stock splits and bonus shares issued if
 any.
 
 S.  Provisions
 
 A provision is recognized when the company has a present obligation as
 a result of past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and a reliable estimate can be made of the amount of the obligation.
 Provisions are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 reporting date. These estimates are reviewed at each reporting date and
 adjusted to reflect the current best estimates.
 
 Where the company expects some or all of a provision to be reimbursed
 the reimbursement is recognized as a separate asset but only when the
 reimbursement is virtually certain. The expense relating to any
 provision is presented in the statement of profit and loss net of any
 reimbursement.
 
 T.  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 liability but discloses its existence in the
 financial statements.
 
 U. Cash and cash equivalents
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and short- term investments with an
 original maturity of three months or less.
 
 Cash flows are reported using the indirect method, whereby net profits
 before tax is adjusted for the effects of transactions of a non-cash
 nature and any deferrals or accruals of past or future cash receipts or
 payments.  The cash flows from regular revenue generating, investing
 and financing activities of the Company are segregated.
 
 V.  Financial instruments
 
 In accordance with the ICAI announcement, derivative contracts, other
 than foreign currency forward contracts covered under AS-11, are marked
 to market on a portfolio basis, and the net loss, if any, after
 considering the offsetting effect of gain on the underlying hedged
 item, is charged to the statement of profit and loss. Net gain, if any,
 after considering the offsetting effect of loss on the underlying
 hedged item, is ignored.
 
 The company does not have any risk management policy with respect to
 risk of foreign exchange fluctuations and is not a party to the
 contractual provisions of the instrument.
 
 Presently the company do not hold any derivative instruments.
 
 W. Amalgamation accounting
 
 The company treats an amalgamation in the nature of merger if it
 satisfies all the following criteria:
 
 i.  All the assets and liabilities of the transferor company become,
 after amalgamation, the assets and liabilities of the transferee
 company.
 
 ii.  Shareholders holding not less than 90% of the face value of the
 equity shares of the transferor company (other than the equity shares
 already held therein, immediately before the amalgamation, by the
 transferee company or its subsidiaries or their nominees) become equity
 shareholders of the transferee company.
 
 iii. The consideration for amalgamation receivable by those equity
 shareholders of the transferor company who agree to become shareholders
 of the transferee company is discharged by the transferee company
 wholly by the issue of equity shares, except that cash may be paid in
 respect of any fractional shares.
 
 iv.  The business of the transferor company is intended to be carried
 on, after the amalgamation, by the transferee company.
 
 v.  The transferee company does not intend to make any adjustment to
 the book values of the assets and liabilities of the transferor
 company, except to ensure uniformity of accounting policies.
 
 All other amalgamations are in the nature of purchase.
 
 The company accounts for all amalgamations in the nature of merger
 using the pooling of interest method. The application of this method
 requires the company to recognize any non-cash element of the
 consideration at fair value. The company recognizes assets, liabilities
 and reserves, whether capital or revenue, of the transferor company at
 their existing carrying amounts and in the same form as at the date of
 the amalgamation. The balance in the statement of profit and loss of
 the transferor company is transferred to the general reserve. The
 difference between the amount recorded as share capital issued, plus
 any additional consideration in the form of cash or other assets, and
 the amount of share capital of the transferor company is adjusted in
 reserves.
 
 An amalgamation in the nature of purchase is accounted for using the
 purchase method. The cost of an acquisition / amalgamation is measured
 as the aggregate of the consideration transferred, measured at fair
 value. Other aspects of accounting are as below:
 
 The assets and liabilities of the transferor company are recognized at
 their fair values at the date of amalgamation.  The reserves, whether
 capital or revenue, of the transferor company, except statutory
 reserves, are not recognized.  Any excess consideration over the value
 of the net assets of the transferor company acquired is recognized as
 goodwill. If the amount of the consideration is lower than the value of
 the net assets acquired, the difference is treated as capital reserve.
 The goodwill arising on amalgamation is amortized to the statement of
 profit and loss on a systematic basis over its useful life not
 exceeding five years.
 
 Presently no amalgamation have been entered into by the Company.
 
 X.  Measurement of EBITDA
 
 As permitted by the Guidance Note on the Revised Schedule III to the
 Companies Act, 2013, the company has elected to present earnings before
 interest, tax, depreciation and amortization (EBITDA) as a separate
 line item on the face of the statement of profit and loss. The company
 measures EBITDA on the basis of profit / (loss) from continuing
 operations. In its measurement, the company does not include
 depreciation and amortization expense, finance costs and tax expense.
स्रोत: रेलीगरे टेचनोवा

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