Accounting Policies of CCS Infotech Ltd. Company

Mar 31, 2014

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Ac* I

B. Use of Estimates

The preparation of financial statements requires the management of the Company to make I estimates and assumptions that affect the reported balances of assets, liabilities and I disclosures relating to the contingent liabilities as at the date of the financial statements and 1 reported amounts of income and expenses during the period.

C. Revenue Recognition

Sales are accounted according to goods dispatched as per the applicable terms ad conditions agreed upon by the customers.

Service Charges are accounted lor as per Contract on completion of contract or job to the I customer as per the applicable terms and conditions agreed upon by the customers, Income and expenditure is accounted on accrual basis,

D. Fixed Assets

Fixed assets are stated at cost less depreciation, All costs relating to the acquisition and I installation of fixed assets are capitalized including directly attributable financing costs I relating to borrowed funds and costs of bringing the asset to working conditions

E. Depreciation i Amortization

Depreciation is provided on Written down Value method at the rates and in the manner I specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed I assets during the year is provided on a pro-rata basis.

F. Borrowing cost

Borrowing Costs are recognized as an expenses in the year in which they are incurred I except which are directly attributable to acquisition/construction of fixed asset, till the time I such assets are ready for use. in which case the borrowing costs are capitalized.

G. Investments

Trade investments are the investments made to enhance (he Company's business interests I as per the sanction terms of the Bank. Cost for overseas investments comprises the Indian I Rupee value of the consideration paid for the investment. Long term Investments are stated I at cost. Provision for diminution in value of long-term investments is made only if such a I decline is other than temporary in the opinion of the management, Current Investments are stated at cost or market values whichever is tower.

Foreign Currency Transaction

Transactions in foreign currency are recorded at the exchange rate prevailing at the dates of the transaction. Monetary items are translated at year-end foreign exchange rates. Resultant exchange difference, arising on payment or conversion is accounted for in the Profit & Loss Account,

Retirement Benefits

Liability in respect of gratuity is not provided lor. It will be accounted on cash basis as and when liability arises, The exact liability on this has not been ascertained and provided lor. However, this is not in accordance with the Accounting standard 15,

J. Preliminary Expenses

The Company writes off the Preliminary expenses over the period of ten years.

K. Taxes on Income

Current income tax expenses comprise taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act,

1961.

Deferred tax expense or benefit is recognized on timing differences being the difference between depreciation as per Income-tax Act and depreciation as per books that originate in one period and are capable of reversal in one or more subsequent periods.

L. Earnings per share

The basic earnings per share is computed by dividing the net profit after tax for the period by the weighted average number of equity shares outstanding during the period.

M. Impairment

Except otherwise than for Financial Assets, Inventories and Deferred Tax Asset, the Carrying Amounts of all the Assets are reviewed at each balance sheet date to determine any indications of impairment. An asset is treated as impaired when the carrying amounts are more than the recoverable amount, Such impairment loss will be provided for when the carrying amounts are more than recoverable amount.

N. Provision, Contingent Liabilities and Contingent Assets

Contingent Liabilities, if any, are disclosed by way of Notes on accounts. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of pasl events and it is probable that there will be an outflow of resources. Provision is made in the Accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the approval of accounls by the , Board of Directors and which have material effect on the position stated in Balance sheet.

O. Inventories

Closing Stock of Inventories is valued and certified by the management at Weighted Average Cost or Market Value whichever is lower.

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Mar 31, 2012

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act

B. Use of Estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period.

C. Revenue Recognition

Sales are accounted according to goods dispatched as per the applicable terms and conditions agreed upon by the customers.

Service Charges are accounted for as per Contract on completion of contract or job to the customer as per the applicable terms and conditions agreed upon by the customers. Income and expenditure is accounted on accrual basis.

D. Fixed Assets

Fixed assets are stated at cost less depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized including directly attributable financing costs relating to borrowed funds and costs of bringing the asset to working conditions

E. Depreciation / Amortization

Depreciation is provided on Written down Value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets during the year is provided on a pro-rata basis.

F. Borrowing cost

Borrowing Costs are recognized as an expenses in the year in which they are incurred except which are directly attributable to acquisition/construction of fixed asset, till the time such assets are ready for use, in which case the borrowing costs are capitalized.

G. Investments

Trade investments are the investments made to enhance the Company''s business interests as per the sanction terms of the Bank. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment. Long term Investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

Current Investments are stated at cost or market value whichever is lower.

H. Foreign Currency Transaction

Transactions in foreign currency are recorded at the exchange rate prevailing at the dates of the transaction. Monetary items are translated at year-end foreign exchange rates. Resultant exchange difference, arising on payment or conversion is accounted for in the Profit & Loss Account.

I. Retirement Benefits

Liability in respect of gratuity is not provided for. It will be accounted on cash basis as and when liability arises. The exact liability on this has not been ascertained and provided for. However, this is not in accordance with the Accounting standard 15.

J. Preliminary Expenses

The Company writes off the Preliminary expenses over the period of ten years.

K. Taxes on Income

Current income tax expenses comprise taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognised on timing differences being the difference between depreciation as per Income-tax Act and depreciation as per books that originate in one period and are capable of reversal in one or more subsequent periods.

L. Earnings per share

The basic earnings per share is computed by dividing the net profit after tax for the period by the weighted average number of equity shares outstanding during the period.

M. Impairment

Except otherwise than for Financial Assets, Inventories and Deferred Tax Asset, the Carrying Amounts of all the Assets are reviewed at each balance sheet date to determine any indications of impairment. An asset is treated as impaired when the carrying amounts are more than the recoverable amount. Such impairment loss will be provided for when the carrying amounts are more than recoverable amount.

N. Provision, Contingent Liabilities and Contingent Assets

Contingent Liabilities, if any, are disclosed by way of Notes on accounts. Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provision is made in the Accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the approval of accounts by the Board of Directors and which have material effect on the position stated in Balance sheet.

O. Inventories

Closing Stock of Inventories is valued and certified by the management at Weighted Average Cost or Market Value whichever is lower.

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Mar 31, 2010

A. Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act

B. Use of Estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets, liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period.

C. Revenue Recognition

Sales are accounted according to goods dispatched as per the applicable terms and conditions agreed upon by the customers.

Service Charges are accounted for as per Contract on completion of contract or job to the customer as per the applicable terms and conditions agreed upon by the customers. Income and expenditure is accounted on accrual basis.

D. Fixed Assets

Fixed assets are stated at cost less depreciation. All costs relating to the acquisition and installation of fixed assets are capitalised including directly attributable financing costs relating to borrowed funds and costs of bringing the asset to working conditions

E. Depreciation / Amortisation

Depreciation is provided on Written down Value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions to fixed assets during the year is provided on a pro-rata basis.

F. Borrowing cost

Borrowing Costs are recogonised as an expenses in the year in which they are incurred except which are directly attributable to acquisition/construction of fixed asset, till the time such assets are ready for use, in which case the borrowing costs are capitalized.

G. Investments

Trade investments are the investments made to enhance the Companys business interests as per the sanction terms of the Bank. Cost for overseas investments comprises the Indian Rupee value of the consideration paid for the investment. Long term Investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

Current Investments are stated at cost or market value whichever is lower.

H. Foreign Currency Transaction

Transactions in foreign currency are recorded at the exchange rate prevailing at the dates of the transaction. Monetary items are translated at year-end foreign exchange rates. Resultant exchange difference, arising on payment or conversion is accounted for in the Profit & Loss Account.

I. Retirement Benefits

Liability in respect of gratuity and leave encashment is not provided for. It will be accounted on cash basis as and when liability arises. The exact liability on this has not been ascertained and provided for. However, this is not in accordance with the Accounting standard 15.

J. Preliminary Expenses

The Company writes off the Preliminary expenses over the period often years.

K. Taxes on Income

Current income tax expenses comprise taxes on income from operations in India. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax expense or benefit is recognised on timing differences being the difference between depreciation as per Income-tax Act and depreciation as per books that originate in one period and are capable of reversal in one or more subsequent periods.

Fringe Benefit Tax is provided in accordance with provisions of Section 115WA of the Income Tax Act, 1961 on expenses as defined for Fringe Benefits.

L. Earnings per share

The basic earnings per share is computed by dividing the net profit after tax for the period by the weighted average number of equity shares outstanding during the period.

M. Impairment

Except otherwise than for Financial Assets, Inventories and Deferred Tax Asset, the Carrying Amounts of all the Assets are reviewed at each balance sheet date to determine any indications of impairment. An asset is treated as impaired when the carrying amounts are more than the recoverable amount. Such impairment loss will be provided for when the carrying amounts are more than recoverable amount.

N. Provision, Contingent Liabilities and Contingent Assets

Contingent Liabilities, if any, are disclosed by way of Notes on accounts. Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provision is made in the Accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the approval of accounts by the Board of Directors and which have material effect on the position stated in Balance sheet.

O. Inventories

Closing Stock of Inventories is valued and certified by the management at Weighted Average Cost or Market Value whichever is lower.