Avinash Information Technologies Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2010

A. Basis of Accounting :

The financial statements are prepared under the historical cost conversion on accrual basis.

b. Income & Expenditure :

All Income & Expenditure items having material bearing on the financial statements are recognized on accrual basis.

c. Fixed Assets:

Fixed Assets including capital expenditure are stated at cost of acquisition including taxes, duties, borrowing cost and other expenses.

d. Depreciation:

Deprecation on fixed assets is provided on the basis of straight line method at the rates prescribed in Schedule- XlVof the Companies Act, 1956 on pro rata basis.

e. Investments:

Investments are stated at cost.

f. Retirement Benefits :

Since none of the employees have completed the minimum specified periods for eligibility under the Payment of Gratuity Act, 1972, no provision for gratuity has been made.

g. Foreign Currency Transactions : .

Foreign currency current assets and liabilities outstanding on the date of Balance Sheet not covered by forward exchange contracts are translated at the year exchange rates and the profit/loss so determined is recognized in the Profit & Loss Account of the concern.

h. Borrowing Cost:

Borrowing Cost directly attributable to the acquisition or construction fixed assets are capitalized as part of the cost of the assets upto the date the assets is put to use. Other Borrowing costs are charged to the Profit & Loss Account in the year in which they are incurred.

i. Deferred Revenue Expenses :

Preliminary Expenses & Public issue Expenses are amortised over the period often years.

Deferred revenue expenses incurred on training of medical transcriptions is not amortised during the year as the benefit thereof has yet not accrued during the year.

j. As certified by the management of the Company, there are municipal Corporation dues, association maintenance dues, Ahmedabad Electricity company due, pending and to be paid on the property. But the quantum of amount of dues still under dispute with the concerned authorities.

k. The loan account of the Company, with Charotar Nagrik Sahkari Bank Limited, has been declared as NPA Loan account by the Bank. The Matter with regard to settlement is lying with the higher authorities at State Government. We have recorded the interest entries as per current One Time Settlement scheme of the State Government. The interest may undergo change which shall be known only after the settlement achieved which may still take a few months.

l. Accounting policies not specifically referred to are consistent with generally accepted accounting policies.