Accounting Policies of Mini Soft Ltd. Company

Mar 31, 2011

A) Basis of Preparation of Financial Statements.

The Financial Statements have been prepared to comply in all material respects with the notified Accounting Standards by Companies Accounting Standard Rules, 2006 and the relevant provisions of the Companies Act, 1956. The Financial Statement has been prepared under the historical cost Convention. The Accounting Policies have been consistently applied by the company.

b) Use of Estimates.

The Preparation of financial Statements is in conformity with the generally accepted accounting Principles.

These principles requires estimates and assumptions to be made that affect the reportable Amount of assets and liabilities on the date of Financial Statements and the reportable amount of Revenue and expenses during the reporting period. Difference between the actual results and estimates Are recognized in the year in which the results are known/materialized

c) Fixed Assets and Depreciation.

Fixed assets are stated at cost of acquisition net of moved less accumulated depreciation. Cost of acquisition Or construction is inclusive of freight, duties, taxes and other incidental expenses Depreciation on fixed assets has been provided

d) Revenue Recognition.

Sales including Export sales are recognised at the point of dispatch of goods to customers. Sales are booked net of returns and trade discount and includes excise duty and exchange fluctuations but excludes sales tax. Rent and Other Income are recognized when the associated amount of revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the company, the stage of completion of the transaction at the balance sheet date can be measured reliably

e) Investment

Current Investment are carried at the lower of cost. Long Term Investment are at cost.

f) Inventories.

Finished goods are valued at lower of cost or net realisable value; cost includes material cost (weighted average) and manufacturing. Raw material and consumable are valued at lower of cost or net realisable value (weighted average)

g)Retirements Benefits.

The company does not make contributions towards Employees Provident Fund and these are chargeable to the revenue if any. There is no accrued liability in respect of gratuity payable to employees and is calculated by the management on the assumption that such benefits are payable to all employees at the end of the accounting year if any.

h) Foreign Currency Transactions.

Current assets are transacted at the exchange rate prevailing at the end of the year. The net profit/loss, If any, arising on such transactions, is charged to revenue if any.

i) Modvat Claim

Modavt Claim on raw material purchase is credited to cost of material. In case of capital goods it is reduced from the cost of assets if any.

j) Warranty. No provision in respect of product warranty is made. Warranty is accounted for on receipt basis. The expenditure incurred on warranty, repair/ replacement of parts is charged to respective head of accounts.

k)Research & Development

Revenue expenditure on research and development is charged to the profit and loss account in the year it is incurred. Capital expenditure on research and development is treated as addition to fixed assets.

l) Taxes on Income

Deferred tax is recognized subject to the consideration of prudence. On timing difference, being the difference between taxable income and accounting income that originates in one period and capable of reversal in one or more subsequent periods.

m)Impairment of Assets

Cash generating units as defined in AS-28 on 'Impairment of Assets' are identified at the balance sheet date with respect to carrying amount vis-a-vis, recoverable amount thereof and Impairment loss, if any. is recognized in the profit & loss account.

n) Provisions and Contingent Liabilities A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect which a reliable estimate can be made based on. Technical valuation and past experience. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the Balance Sheet date. No provision is recognized for liabilities whose future outcome cannot be ascertained with reasonable certainties. Such contingent liabilities are not recognized but are disclosed in the schedule of contingent liability on basis of judgment of the management / Independent expert. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate. Current Assets are neither recognized nor disclosed in the Financial Statements

o) Earning Per Share

The company reports basic and diluted earnings per equity share in accordance with "Accounting Standard 20- .

Earning per Share ". Basic earnings per equity share in computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The company does not have any Diluted equity share and in the absence of the dilutive shares, Basic and Dilutive Earning per share are same

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Mar 31, 2010

A) Basis of Preparation of financial statements

The financial Statements have been prepared to comply in all material respects with the accounting standards Companies Accounting Standard Rules 2006 and the relevant provisions of the Companies Act 1956. The Statement has been prepared under the historical cost convention. The Accounting Policy have been consistent apply by the company.

b) Use of Estimates.

The Preparation of financial Statements is in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reportable Amount of assets and date of financial Statements and the reportable amount of Revenue and expenses during the reporting period between the actual results and estimates Are recognized in the year in which the results are known materialized.

e) Fixed Assets and Depreciation.

fixed assets are stated at cost of acquisition net of modal less accumulated depreciation. Cost of acquisition construction is inclusive of freight, duties, taxes and other incidental expenses Depreciation on fixed assets has been provided for under the Written Down Value Method at the rates specified in the Companies Act. 1956.

d) Revenue Recognition.

Sales including export sales are recognised at the point of dispatch of goods to customer Sales are booked and trade discount and includes excise duty and exchange fluctuations but excludes sales tax. Rent and Other income , recognized when the associated amount of revenue can be measured reliable. it is probable that economic hence associated with the transaction will flow to the company. the state of completion of the transaction at the balance date can be measured reliably.

e) Investment

Current Investment are carried at the lower of cost and quoted value Long Term investment are at cost.

f) Inventories.

Finished goods are valued at lower of cost or net realisable value, cost includes material cost weighted average manufacturing Raw material and consumable are valued at lower of cost or net realisable value (weighted average)

g) Retirements Benefits.

The company makes regular contribution towards Employees Provident Fund and these are charged to the revenue. Accrued liability in respect of gratuity payable to employees is calculated by the management on the assumption that Such benefits are payable to all employees at the end of the accounting year.

h) Foreign Currency Transactions.

Current assets are transacted at the exchange rate prevailing at the end of the year. The net profit /loss, If any, arising Such transactions, is charged to revenue.

i) Modavt Claim

Modavt Claim on raw material purchase is credited to cost of material. In case of capital goods it is reduced from of assets.

j) Warranty

No provision in respect of product warranty is made. Warranty is accounted for on receipt basis. The expenditure Incurred on warranty, repair/ replacement of parts is charged to respective head of accounts.

k) Research & Development

Revenue expenditure on research and development is charged to the profit and loss account in the year it is incurred. Capital expenditure on research and development is treated as addition to fixed assets.

l) Taxes on Income

Deferred tax is recognised subject to the duration of prudence On Timing difference being the difference being the taxable income and accounting income that in one period duel capable reversal in one or more subsequent periods.

m) Impairment of Assets

Cash generating units is as defined in Assets are identified of the balance sheet date with respect of carrying amount vis- a -vis recoverable amount thereof and Impairment recognised in the account.

n) Provisions and Contingent liabilities

A provision is recognised when the company has a present obligation as a result of event and it is probable Outflow of resources will be required self the obligation in respect which a reliable-estimate can be made based on technical valuation and past experience, Provisions are not discounted to us present value and are determined haven on management estimate required to settle the obligation at the Balance Sheet date. No provision is recognised for liable whose future outcome cannot be ascertained with reasonable certainties. Such contingent liabilities are not record are disclosed in the schedule of contingent liability on basis of judgment of the management / Independent expert. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate Current Assets are neither recognised nor disclosed of the financial Statements.

o) Earnings Per Share .

The company reports basic and defaulted earnings per equity share in accordance with Accounting Standard 20 Earnings per Share Basic earnings per equity share in computed by dividing net profit after tax by the weighted average number of equity shares outstanding during the year. The company does not have any Diluted equity share and in the absent if the dilutive shares, Basic and raining per share are same.