A Oneindia Venture
Click it and Unblock the Notifications
Fourth Generation Information Systems Ltd. కంపెనీ అకౌంటింగ్ విధానాలు
Mar 31, 2025
1. Corporate Information
Fourth Generation Information Systems Limited is a public limited company incorporated under the provisions of the Companies Act on August 21,1998.
The registered office of the company is located at FLAT NO 301, SAAI PRIYA APARTMENT H.No 6-3-663/7/6/301, JAFFER ALI BAGH, S, OMAJIGUDA, Hyderabad, HYDERABAD, Telangana, India, 500082.
The financial statement were authorised for issue on May 28, 2025. The company is engaged in process of providing IT and IT enabled services provider.
2 Significant Accounting Policies2.1 Basis of preparation of financial statements
These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issued thereafter. The financial statements have also been prepared in accordance with the provisions of the Act, guidelines issued by the Securities and Exchange Board of India (SEBI), and other applicable regulatory requirements.These financial statements have been prepared under the historical cost convention on an accrual basis, except for the following Defined benefit liabilities/(assets), which are recognized at the present value of the defined benefit obligations less the fair value of plan assets;The financial statements are presented in Indian Rupees (INR), which is the functional currency of the Company. All values are rounded off to the nearest lakh, unless otherwise indicated.Accounting policies have been applied consistently to all periods presented in the financial statements, except where a new accounting standard has been adopted or a revision to an existing standard requires a change in accounting policy.As the year-to-date figures are compiled from the source financial data and rounded to the nearest lakh, the figures reported for the previous interim periods may not always sum precisely to the year-to-date totals presented in these statements.
2.2 Significant accounting judgements, estimates and assumptions
The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Though the net worth of the Company has been eroded, the management is confident of meeting its obligations by generating sufficient and timely cash flows through the development of new software, which is currently shown under ''Capital Work-in-Progress''. Notwithstanding the dependence on these materially uncertain events and the realization of assets/claims, the Company believes that the projected cash flows will be adequate to service its debts and discharge its liabilities in the normal course of business. Furthermore, the management is committed to raising additional funds, if required, through investments and other available means to support the Company''s operations and obligations. Accordingly, the financial statements have been prepared on a going concern basis.
Critical accounting estimatesi. Taxes
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the same can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.
ii. Provisions and Contingent Liability
The timing of recognition and quantification of the liability (including litigations) requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
2.3 Current versus non-current classification
The Company presents assets and liabilities in the standalone balance sheet based on current/ non-current classifications asset is treated as current when it is:i.Expected to be realised or intended to be sold or consumed in normal operating cycle,ii.Held primarily for the purpose of trading,iii.Expected to be realised within twelve months after the reporting period, or iv.Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.
A liability is current when:i. It is expected to be settled in the company''s normal operating cycle;ii. It is held primarily for the purpose of being traded;iii.It is due to be settled within twelve months after the reporting date; or iv. The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification. All other liabilities are classified as non-current.Deferred tax assets and liabilities are classified as non current assets and liabilities.
Operating cycle for current and non-current classification
Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The company has taken Operating cycle to be twelve months.
2.4 Fair value measurement of financial instruments
The Company measures financial instruments, such as, Investments at fair value at each balance sheet date using valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
2.5 Property, Plant and Equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met, directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of decommissioning, restoring and similar liabilities. Any trade discounts and rebates are deducted in arriving at the purchase price. Such cost includes the cost of replacing part of the plant and equipment. When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.
In case an item of property, plant and equipment is acquired on deferred payment basis, interest expenses included in deferred payment is recognized as interest expense and not included in cost of asset Gains or losses arising from derecognition of Property, plant and equipment 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.
Depreciation is provided from the current financial year on buildings
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period with the affect of any change in the estimate being accounted for on a prospective basis. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.
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.
2.7 Depreciation and Amortization
Depreciation on Property, plant and equipment is provided on the straight-line basis over the useful lives of assets specified in Schedule II to the Companies Act, 2013.
Software being intangible asset is amortised on straight-line basis over a period of life of the asset
The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. The amortization period and the amortization method are reviewed at least at each financial year end.
2.8 Impairment of Financial and NonFinancial Assets
The impairment provisions for Financial Assets are based on assumptions about risk of default and expected cash loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s pasthistory, existing market conditions as well as forward looking estimates at the end of each reporting period.
In case of non-financial assets, assessment of impairment indicators involves consideration of future risks. Further, the company estimates asset''s recoverable amount, which is higher of an asset''s or Cash Generating Units (CGU''s) fair value less costs of disposal and its value in use.
The Company derives revenues primarily from IT services comprising software development and its related services.
Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.
Contract balances
The amounts billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is required before payment falls due, are disclosed in the balance sheet as trade receivables.
A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration or is due from the customer. If a customer pays consideration before the Company transfers
goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).
Contract liabilities are recognised as revenue when the Company performs under the contract.
Interest income from a financial assets is recognised using effective interest rate method wherever applicable.
Dividend from investments is recognised when the right to receive the payment is established and when no significant uncertainty as to measurability or collectability exists.
2.10 Taxes on incomeCurrent income tax
Tax expense for the year comprises current and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the standalone statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company''s liability for current tax is calculated using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except:
i. When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
ii. In respect of taxable temporary differences associated with investments in subsidiary and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:
i. When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
ii. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.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 taxes relate to the same
taxable entity and the same taxation authority.All other acquired tax benefits realised are recognised in profit or loss.
Basic earnings per equity share is computed by dividing the net profit attributable to the equity share holders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as fresh issue, bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.
Diluted earnings per equity share is computed by dividing the net profit attributable to the equity shares holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
2.12 LeasesWhere the Company is lessee
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.The right-of-use assets are also subject to impairment.
At the commencement date of the lease, the company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset
iii) Short-term leases and leases of low-value assets
The Company applies the short-term lease recognition exemption to its shortterm leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.
No Lease Expense has been incurred for the company during the current financial year
2.13 Foreign currencies transactions and translation
The Company''s financial statements are presented in Indian Rupee, which is also the Company''s functional currency.
In preparing the financial statements, transactions in the currencies other than the Company''s functional currency are recorded at the rates of
exchange prevailing on the date of transaction. At the end of each reporting period, monetary items denominated in the foreign currencies are retranslated at the rates prevailing at the end of the reporting period. Nonmonetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items are measured in terms of historical cost in a foreign currency are not retranslated.
Exchange differences arising on the retranslation or settlement of other monetary items are included in the statement of profit and loss for the period.
2.14 Cash and Cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.
2.15 Employee benefits Defined benefit plans
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit Method made at the end of the financial year. Actuarial gains and losses for both defined benefit plans are recognized in full in the period in which they occur in the statement of OCI.
Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the standalone balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. Past service costs are recognised in profit or loss on the earlier of:
⢠The date of the plan amendment or curtailment, and
⢠The date that the Company recognises related restructuring costs
The Company recognizes termination benefit as a liability and an expense 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. If the termination benefits fall due more than 12 months after the balance sheet date, they are measured at present value of future cash flows using the discount rate determined by reference to market yields at the balance sheet date on government bonds.
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 advances are provided for based on the actuarial valuation using the projected unit credit method at the year-end. Remeasurement gains/losses on defined benefit plans are immediately taken to the Statement of Profit & Loss and are not deferred.
2.16 Provisions and Contingencies
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a 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. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any impairment loss on the assets associated with that contract.
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 standalone financial statements.
Provisions and contingent liability are reviewed at each balance sheet.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds including interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
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 capitalised as part of the cost of the asset until such time as the assets are substantially ready for the intended use or sale. All other borrowing costs are expensed in the year in which they occur.
2.18 Related party transactions
The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the period-end are unsecured and settlement occurs in cash or credit as per the terms of the arrangement. Impairment assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Initial recognition and measurement
All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.
Following are the categories of financial instrument:a) Financial assets at amortised cost
Financial assets are subsequently measured at amortised cost using the effective interest rate method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
b) Financial assets at fair value through other comprehensive income (FVTOCI)(i) Debt financial assets measured at FVOCI:
Debt instruments are subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
(ii) Equity Instruments designated at FVOCI:
On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the âReserve for equity instruments through other comprehensive income''. The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.
c) Financial assets at fair value through profit or loss (FVTPL)
Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading. Other financial assets such as unquoted Mutual funds are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition.
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Company''s balance sheet) when:
a) the rights to receive cash flows from the asset have expired, or
b) the Company has transferred its rights to receive cash flows from the asset, and
i. the Company has transferred substantially all the risks and rewards of the asset, or
ii. the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Impairment of financial assets
In accordance with Ind AS 109, the Company applies expected credit loss (âECL'') model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, deposits, trade receivables and bank balance
b) Financial assets that are debt instruments and are measured at FVTOCI.
c) Financial guarantee contracts which are not measured as at FVTPL.
The Company follows âsimplified approach'' for recognition of impairment loss allowance on trade receivables. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL. Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the reporting date.
ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider:
i) All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument ii) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the Statement of Profit and Loss . This amount is reflected under the head âother expenses'' in the Statement of Profit and Loss. In the balance sheet, ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.
Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Financial liabilitiesInitial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings.
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.
Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.
Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.
Reclassification of financial assets
The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.
The Company has equity-settled share-based remuneration plans for its employees. None of the Company''s plans are cash-settled. Where employees are rewarded using share-based payments, the fair value of employees'' services is determined indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and excludes the impact of non-market vesting conditions (for example profitability and sales growth targets and performance conditions). All share-based remuneration is ultimately recognized as an expense in profit or loss with a corresponding credit to equity. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Upon exercise of share options, the proceeds received, net of any directly attributable transaction costs, are allocated to share capital up to the nominal (or par) value of the shares issued with any excess being recorded as share premium.
Cash flows are reported using the indirect method, whereby profit / (loss) before exceptional items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value
Inventories are stated at the lower of cost and net realizable value. The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Costs of inventories are computed using weighted average cost formula. Net realizable value is the estimated selling price in the ordinary course of business less any applicable selling expenses. Provision for obsolescence and slow moving inventory is made based on management''s best estimates of net realizable value of such inventories.
Exceptional items refer to items of income or expense within the income statement that are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance for the year.Such items are material by nature or amount to the year''s result and / or require separate disclosure inaccordance with Ind AS. The determination as to which items should be disclosed separately requires a degree of judgement.Restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring are reported under exceptional items,The details of exceptional items are set out in note 27.
Purchase consideration paid in excess of the fair value of net assets acquired is recognised as goodwill. Where the fair value of identifiable assets and liabilities exceed the cost of acquisition, after reassessing the fair values of the net assets and contingent liabilities, the excess is recognised as capital reserve.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group''s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
2.25 Investment in subsidiaries, joint ventures and associates
In accordance with Ind AS 27 - Separate Financial Statements, investments in equity instruments of subsidiaries, joint ventures and associates can be measured at cost or at fair value in accordance with Ind AS 109. The Company has opted to measure such investments at cost at initial recognition.Subsequently, such investments in subsidiaries,joint ventures and associates are carried at cost less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of these investments, the difference between net disposal proceeds and the carrying amounts are recognized in the statement of profit and loss
Mar 31, 2024
1.1 General Information
FOURTH GENERATION INFORMATION SYSTEMS LIMITED (âthe
Holding companyâ) and its subsidiaries (together âthe groupâ) are
engaged in the IT and IT enabling services (ITES) provider. The
company has business operations mainly in India. The company is a
public limited company incorporated and domicile in India and has its
registered office at Flat No.301, Saipriya Apartments, Hno.6-3-
663/7/6/301, Jafferalibagh, Somajiguda, Hyderabad- 500082. The
company has its primary listings on the Bombay Stock Exchange and
National Stock Exchange in India. The principle accounting policies
applied in the preparation of financial statements are set out below.
These policies have been consistently applied to all the years
presented, unless otherwise stated.
1.2 Basis of preparation and presentation of Financial Statements
The financial statements of FOURTH GENERATION INFORMATION
SYSTEMS LIMITED (âFGISLâ or âthe companyâ) have been prepared
and presented in accordance with the Indian Accounting Standards
(âInd ASâ) notified underthe Companies (Indian Accounting Standards)
Rules 2015, as amended and as per other relevant provisions of the
Act. The presentation of financial statements is based upon Ind AS
Schedule III of Companies Act, 2013.
1.3 Basis of Measurement
These financial statements have been prepared on the historical cost
convention and on an accrual basis, except for the following material
items in the balance sheet:
a. Derivative financial instruments are measured at fair value.
b. Certain financial assets are measured either at fair value or at
amortized cost depending on the classification;
c. Employee defined benefit assets/(liability) are recognized as the net
total of the fair value of plan assets, plus actuarial losses, less actuarial
gains and the present value of the defined benefit obligation, and
d. Long-term borrowings are measured at amortized cost using the
effective interest rate method.
All assets and liabilities are classified into current and non-current
based on the operating cycle of less than twelve months or based on
the criteria of realization/settlement within twelve months period from
the balance sheet date.
1.4 Use of estimates and judgment
The preparation of financial statements in conformity with Ind AS
requires management to make judgments, estimates and assumptions
that affect the application of accounting policies and the reported
amounts of assets, liabilities, income and expenses. These estimates
and associated assumptions are based on historical experiences and
various other factors that are believed to be reasonable under the
circumstances. Actual results may differfrom these estimates.
Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognized in the period
in which the estimates are revised and in any future periods affected. In
particular, the areas involving critical estimates or Judgment are:
a. Depreciation and amortization
Depreciation and amortization is based on management estimates of
the future useful lives of certain class of property, plant and equipment
and intangible assets.
b. Employee Benefits
The present value of the employee benefit obligations depends on a
number of factors that are determined on an actuarial basis using a
number of assumptions. The assumptions used in determining the net
cost (income) includes the discount rate, wage escalation and
employee attrition. The discount rate is based on the prevailing market
yields of Indian Government securities as at the balance sheet date for
the estimated term of the obligations.
c. Provision and contingencies
Provisions and contingencies are based on the Managementâs best
estimate of the liabilities based on the facts known at the balance sheet
date.
d. Fairvaluation
Fair value is the market based measurement of observable market
transaction or available market information. All financial instruments
are measured at fair value as at the balance sheet date, as provided in
Ind AS 109 and 113. Being a critical estimate, judgment is exercised to
determine the carrying values. The fair value of financial instruments
that are unlisted and not traded in an active market is determined at fair
values assessed based on recent transactions entered into with third
parties, based on valuation done by external appraisers etc.
e. Functional and presentation currency
These financial statements are presented in Indian rupees, which is
also the functional currency of the Company. All financial information
presented in Indian rupees has been rounded to the nearest lakhs.
1.5 Current and noncurrent classification
The Company presents assets and liabilities in the balance sheet
based on current/ non-current classification.
All the assets and liabilities have been classified as current or
noncurrent as per the Company''s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013 and Ind
AS 1, presentation of financial statements.
Assets: An asset is classified as current when it satisfies any of the
following criteria:
a. It is expected to be realized in, oris intended for sale or consumption in,
the Companyâs normal operating cycle;
b. It is held primarily forthe purpose of being traded;
c. It is expected to be realized within twelve months after the reporting
date; or
d. It is cash or cash equivalent unless it is restricted from being exchanged
or used to settle a liability for at least twelve months after the reporting
date.
Liabilities: A liability is classified as current when it satisfies any of the
following criteria:
a. It is expected to be settled in the Companyâs normal operating cycle;
b. It is held primarily forthe purpose of being traded;
c. It is due to be settled within twelve months afterthe reporting date; or
d. The Company does not have an unconditional right to defer settlement
of the liability for at least twelve months after the reporting date. Terms
of a liability that could, at the option of the counter party, result in its
settlement by the issue of equity instruments do not affect its
classification
Current assets/ liabilities include the current portion of noncurrent
assets/ liabilities respectively. All other assets/ liabilities are classified
as noncurrent. Deferred tax assets and liabilities are always disclosed
as non-current.
1.6 Foreign Currency Transaction
Transactions in foreign currencies are translated to the respective
functional currencies of entities within the Company at exchange rates
at the dates of the transactions. Monetary assets and liabilities
denominated in foreign currencies at the reporting date are translated
into the functional currency at the exchange rate at that date.
Exchange differences arising on the settlement of monetary items or on
translating monetary items at rates different from those at which they
were translated on initial recognition during the period or in previous
financial statements are recognized in the statement of profit and loss
in the period in which they arise.
1.7 Property Plant & Equipment
Recognition and measurement
Property, Plant and Equipment are stated at cost of acquisition or
construction less accumulated depreciation and impairment loss, if
any. Cost includes expenditures that are directly attributable to the
acquisition of the asset i.e., freight, duties and taxes applicable and
other expenses related to acquisition and installation. The cost of
self-constructed assets includes the cost of materials and other costs
directly attributable to bringing the asset to a working condition for its
intended use. Borrowing costs that are directly attributable to the
construction or production of a qualifying asset are capitalized as part
of the cost of that asset.
Directly attributable costs include:
a. Cost of Employee Benefits.
b. Cost of Software Preparation.
c. Initial Delivery & Handling costs.
d. Professional Fees and
e. Costs of testing whether the asset is functioning properly, after
deducting the net proceeds from selling any item produced while
bringing the asset to that location and condition (such as samples
produced when testing equipment).
When parts of an item of property, plant and equipment have different useful
lives, they are accounted for as separate items (major components) of
property, plant and equipment.
Gains and losses upon disposal of an item of property, plant and equipment
are determined by comparing the proceeds from disposal with the carrying
amount of property, plant and equipment and are recognized net within the
statement of profit and loss.
The cost of replacing part of an item of property, plant and equipment is
recognized in the carrying amount of the item if it is probable that the future
economic benefits embodied within the part will flow to the Company and its
cost can be measured reliably. The carrying amount of the replaced part will
be derecognized. The costs of repairs and maintenance are recognized in the
statement of profit and loss as incurred.
Items of property, plant and equipment acquired through exchange of non¬
monetary assets are measured at fair value, unless the exchange transaction
lacks commercial substance or the fair value of either the asset received or
asset given up is not reliably measurable, in which case the asset exchanged
is recorded at the carrying amount of the asset given up.
Depreciation
Depreciation is recognized in the statement of profit and loss on a straight line
basis over the estimated useful lives of property, plant and equipment based
on the Companies Act, 2013 (âSchedule IIâ), which prescribes the useful lives
for various classes of tangible assets. For assets acquired or disposed off
during the year, depreciation is provided on pro rata basis. Land is not
depreciated.
Depreciation methods, useful lives and residual values are reviewed at each
reporting date and adjusted prospectively, if appropriate.
Advances paid towards the acquisition of property, plant and equipment
outstanding at each reporting date is disclosed as capital advances under
other noncurrent assets. The cost of property, plant and equipment not ready
to use before such date are disclosed under capital work-in-progress. Assets
not ready for use are not depreciated.
The Company assesses at each balance sheet date, whether there is
objective evidence that an asset or a group of assets is impaired. An assetâs
carrying amount is written down immediately to its recoverable amount if the
assetâs carrying amount is greater than its estimated recoverable amount.
Recoverable amount is higher of the value in use orfair value less cost to sell.
1.8 Intangible assets
Acquired computer software is capitalized on the basis of the costs
incurred to acquire and bring to use the specific software. The
Intangible assets that are acquired by the Company and that have finite
useful lives are measured at cost less accumulated amortization and
accumulated impairment losses.
Amortization
Amortization is recognized in the statement of profit and loss on a
straight-line basis over the estimated useful lives of intangible assets or
on any other basis that reflects the pattern in which the assetâs future
economic benefit are expected to be consumed by the entity. Intangible
assets that are not available for use are amortized from the date they
are available for use. The estimated useful lives are as follows:
The amortization period and the amortization method for intangible assets
with a finite useful life are reviewed at each reporting date.
1.9 Financial Instruments
Afina ncial instrument is any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of another entity.
a. Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction
costs that are attributable to the acquisition of the financial asset. Purchases
or sales of financial assets that require delivery of assets within a time frame
established by regulation or convention in the market place (regular way
trades) are recognized on the trade date, i.e., the date that the Company
commits to purchase or sell the asset.
Subsequent measurement
Debt instrument at FGISL
Debt instruments included within the FGISL category are measured at fair
value with all changes recognized in the statement of profit and loss. The
Company has not designated any debt instrument as at FGISL.
Investment in Preference Shares and Unquoted trade Investments
Investment in Preference Shares and Unquoted trade Investments are
measured at amortized cost using Effective Rate of Return (El R).
Investment in equity instruments
All equity investments in scope of Ind AS 109 are measured at fair value.
Equity instruments which are held for trading and contingent consideration
recognized by an acquirer in a business combination to which Ind AS103
applies are classified as at FGISL. For all other equity instruments, the
Company may make an irrevocable election to present in other
comprehensive income subsequent changes in the fair value. The Company
makes such election on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable.
If the Company decides to classify an equity instrument as at FGISL, then all
fair value changes on the instrument, excluding dividends, are recognized in
the OCI. There is no recycling of the amounts from OCI to the statement of
profit and loss, even on sale of investment. However, the Company may
transfer the cumulative gain or loss within equity.
Investments in subsidiaries
Investments in subsidiaries are carried at cost less accumulated impairment
losses, if any. Where an indication of impairment exists, the carrying amount
of the investment is assessed and written down immediately to its
recoverable amount. On disposal of investments in subsidiaries and joint
venture, the difference between net disposal proceeds and the carrying
amounts are recognized in the statement of profit and loss.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a
group of similar financial assets) is primarily derecognized (i.e., removed
from the Companyâs balance sheet) when:
a. The rights to receive cash flows from the asset have expired, or
b. The Company has transferred its rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a âpass-throughâ arrangement;
and either (a) the Company has transferred substantially all the risks and
rewards of the asset, or(b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control
of the asset.
When the Company has transferred its rights to receive cash flows from an
asset or has entered into a pass- through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of ownership. When it has
neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the Company continues to
recognize the transferred asset to the extent of the Companyâs continuing
involvement. In that case, the Company also recognizes an associated
liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the Company has retained.
Impairment of trade receivables
In accordance with Ind AS 109, the Company applies expected credit loss
(ECL) model for measurement and recognition of impairment loss on the
trade receivables or any contractual right to receive cash or another financial
asset that result from transactions that are within the scope of Ind AS 18.As
company trade receivables are realized within normal credit period adopted
by the company, hence the company trade receivables are not impaired
except for certain customers for which adequate provision has been made on
the same.
b. Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at
fair value i.e., loans and borrowings, payables, or as derivatives designated
as hedging instruments in an effective hedge, as appropriate. All financial
liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable transaction costs.
The Company''s financial liabilities include trade and other payables, loans
and borrowings including bank overdrafts, financial guarantee contracts.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as
described below:
Loans and borrowings
After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortized cost using the El R method. Gains and
losses are recognized in the statement of profit and loss when the liabilities
are derecognized as well as through the El R amortization process.
Amortized cost is calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the statement of profit and loss.
1.9 Impairment of non-financial assets
The carrying amounts of the Companyâs non-financial assets, other than
inventories and deferred tax assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such
indication exists, then the asset''s recoverable amount is estimated. For
goodwill and intangible assets that have indefinite lives or that are not yet
available for use, an impairment test is performed each yearat March 31.
The recoverable amount of an asset or cash-generating unit (as defined
below) is the greater of its value in use and its fair value less costs to sell. 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 or
the cash-generating unit. For the purpose of impairment testing, assets are
grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflow of
other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognized in the statement of profit and loss if the
estimated recoverable amount of an asset or its cash-generating unit is lower
than its carrying amount. Impairment losses recognized in respect of cash¬
generating units are allocated first to reduce the carrying amount of any
goodwill allocated to the units and then to reduce the carrying amount of the
other assets in the unit on a pro-rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other
assets, impairment losses recognized in prior periods are assessed at each
reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is
reversed only to the extent that the assetâs carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or
amortization, if no impairment loss had been recognized.
1.10 Cash & Cash Equivalents
Cash and bank balances comprise of cash balance in hand, in current
accounts with banks, demand deposit, short-term deposits, Margin Money
deposits and unclaimed dividend accounts. For this purpose, âshort-termâ
means investments having maturity of three months or less from the date of
investment. Bank overdrafts that are repayable on demand and form an
integral part of our cash management are included as a component of cash
and cash equivalents for the purpose of the statement of cash flows. The
Margin money deposits, balance in dividend accounts which are not due and
unclaimed dividend balances shall be disclosed as restricted cash balances.
1.11 Employee Benefits
a. Short term employee benefits
Short-term employee benefits are expensed as the related service is
provided. A liability is recognized for the amount expected to be paid if the
Company has a present legal or constructive obligation to pay this amount as
a result of past service provided by the employee and the obligation can be
estimated reliably.
b. Defined Contribution Plan
The Company''s contributions to defined contribution plans are charged to the
statement of profit and loss as and when the services are received from the
employees.
c. Defined Benefit Plans
The liability in respect of defined benefit plans and other post-employment
benefits is calculated using the projected unit credit method consistent with
the advice of qualified actuaries. The present value of the defined benefit
obligation is determined by discounting the estimated future cash outflows
using interest rates based on prevailing market yields of Indian Government
Bonds and that have terms to maturity approximating to the terms of the
related defined benefit obligation. The current service cost of the defined
benefit plan, recognized in the statement of profit and loss in employee
benefit expense, reflects the increase in the defined benefit obligation
resulting from employee service in the current year, benefit changes,
curtailments and settlements. Past service costs are recognized immediately
in income. The net interest cost is calculated by applying the discount rate to
the net balance of the defined benefit obligation and the fair value of plan
assets. This cost is included in employee benefit expense in the statement of
profit and loss. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged orcredited to
equity in other comprehensive income in the period in which they arise.
d. Termination benefits
Termination benefits are recognized as an expense when the Company is
demonstrably committed, without realistic possibility of withdrawal, to a
formal detailed plan to either terminate employment before the normal
retirement date, or to provide termination benefits as a result of an offer made
to encourage voluntary redundancy. Termination benefits for voluntary
redundancies are recognized as an expense if the Company has made an
offer encouraging voluntary redundancy, it is probable that the offer will be
accepted, and the number of acceptances can be estimated reliably.
e. Other long-term employee benefits
The Company''s net obligation in respect of other long term employee benefits
is the amount of future benefit that employees have earned in return for their
service in the current and previous periods. That benefit is discounted to
determine its present value. Re-measurements are recognized in the
statement of profit and loss in the period in which they arise.
Mar 31, 2012
1. Basis of Accounting:
a) The financial statements have been prepared on the basis of going
concern under historical cost convention in accordance with generally
accepted principles and provisions of the Companies Act, 1956 with
revenue recognized and expenses accounted on accrual basis unless
otherwise stated.
b) Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
c) All Income and Expenditure items, having material bearing on the
financial statements are recognized on accrual basis.
2. Fixed Assets: Fixed assets are stated at cost less accumulated
depreciation. All costs, directly attributable to bringing the asset to
the present condition for the intended use, are capitalized. Advances
paid to capital creditors continuously shown under capital work in
progress. The position of the advances given and their acknowledgements
is yet to be confirmed.
3. Depreciation: Depreciation on fixed assets has been provided on
straight-line method.
4. Foreign Currency Transactions: The company follow the foreign
currency transactions as per applicable accounting standards.
6. Retirement Benefits: a) No provision has been made for retirement
benefits, as they are not applicable to the company
7. Related Party Transactions:
a) Associate enterprises and amounts due from them: Nil
b) Key Management Personnel and relatives: Nil
c) Transactions with associate companies/firms/individuals: Nil
8. In accordance with the provisions of Accounting Standard 17, the
company has only one reportable primary segment consisting of
information technology services. Hence segment reporting not
applicable.
9. Cash flow statement Cash flows are reported using the indirect
method, whereby net profit 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.
10. Earnings per share In determining earnings per share, the company
considers the net profit after tax expense. The number of shares used
in computing basic earnings per is the weighted average shares used in
outstanding during the period.
Mar 31, 2010
1. Basis of Accounting:
a) The financial statements have been prepared on the basis of going
concern under historical cost convention in accordance with generally
accepted principles and provisions of the Companies Act, 1956 with
revenue recognized and expenses accounted on accrual basis unless
otherwise stated.
b) Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
c) All Income and Expenditure items, having material bearing on the
financial statements are recognized on accrual basis.
2. Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation. All
costs, directly attributable to bringing the asset to the present
condition for the intended use, are capitalized. Advances paid to
capital creditors continuously shown under capital work in progress.
The position of the advances given and their acknowledgements is yet to
be confirmed.
3. Depreciation:
Depreciation on fixed assets has been provided on straight-line method.
4. Foreign Currency Transactions:
There are no transactions involving foreign exchange took place during
the year under consideration.
5. Investments:
During the year 2003-04, Company has invested in the shares of M/s Net
soft Technologies Inc., USA as a joint venture to the extent of 50% of
the total share capital in equivalent to Rs. 9,99,49,237/- as a
long-term investment. During the year under consideration, there is no
dividend declared by this company. This investment is stated at cost
and diminution in value if other than temporary is not recognized and
provided due to lack of information. Confirmation of the status of
investments has not been provided by the management.
6. Retirement Benefits:
a) Provident Fund: Contribution to Provident Fund is not made during
the year under review.
b) Provision for gratuity and superannuation has not been made during
the year under review.
7. Related Party Transactions:
a) Associate enterprises and amounts due from them: Nil
b) Key Management Personnel and relatives: Nil
c) Transactions with associate companies/firms/individuals: Nil
8. In respect of some of the Sundry Debtors, Loans and Advances, Other
Receivables and Sundry Creditors confirmation of balances is still to
be received and revalued.
9. Contingent Liabilities: Nil
10. In accordance with the provisions of Accounting Standard 17, the
company has only one reportable primary segment consisting of
information technology services. Hence segment reporting as defined is
not submitted.
11. Unclaimed dividend pertaining to the year 2000-01 to the extent of
Rs. 15,765 has not been transferred to Central Govt. account for
unclaimed dividends.
Mar 31, 2009
1. Basis of Accounting:
a) The financial statements have been prepared on the basis of going
concern under historical cost convention in accordance with generally
accepted principles and provisions of the Companies Act, 1956 with
revenue recognized and expenses accounted on accrual basis unless
otherwise stated.
b) Accounting policies not specifically referred to otherwise are in
consonance with prudent accounting principles.
c) All Income and Expenditure items, having material bearing on the
financial statements are recognized on accrual basis.
2. Fixed Assets:
Fixed assets are stated at cost less accumulated depreciation. All
costs, directly attributable to bringing the asset to the present
condition for the intended use, are capitalized. Advances paid to
capital creditors continuously shown under capital work in progress.
The position of the advances given and their acknowledgements is yet to
be confirmed.
3. Depreciation:
Depreciation on fixed assets has been provided on straight-line method.
4, Foreign Currency Transactions:
There are no transactions involving foreign exchange took place during
the year under consideration.
5. Investments:
During the year 2003-04, Company has invested in the shares of M/s Net
soft Technologies Inc., USA as a joint venture to the extent of 50% of
the total share capital in equivalent to Rs, 9,99,49,237/- as a long
term investment, During the year under consideration, there is no
dividend declared by this company. This investment is stated at cost
and diminution in value if other than temporary is not recognized and
provided due to lack of information. Confirmation of the status of
investments has not been provided by the management.
6. Retirement Benefits:
a) Provident Fund: Contribution to Provident Fund is not made during
the year under review.
b) Provision for gratuity and superannuation has not been made during
the year under review.
7. Related Party Transactions:
a) Associate enterprises and amounts due from them: Nil
b) Key Management Personnel and relatives: Nil
c) Transactions with associate companies/firms/individuals-. Nil
8. In respect of some of the Sundry Debtors, Loans and Advances, Other
Receivables and Sundry Creditors confirmation of balances is still to
be received and revalued.
9. Contingent Liabilities
During the year 2004-05, CIT (Appeals) of the concerned jurisdiction
has served a demand notice for Rs.3,65,33,266/- towards assessment year
2001-02, the orders of which is appealed before Income Tax Appellate
Tribunal and appeal proceedings are in progress. Therefore, provision
is not made for the above said amount during the year.
10. In accordance with the provisions of Accounting Standard 17, the
company has only one reportable primary segment consisting of
information technology services. Hence segment reporting as defined is
not submitted.
11. Unclaimed dividend pertaining to the year 2000-01 to the extent of
Rs. 15,765 has not been transferred to Central Govt, account for
unclaimed dividends.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
మరింత సమాచారం Fourth Generation Information Systems Ltd.
-
Fourth Generation Information Systems Ltd. టూల్స్
- బల్క్ డీల్స్
-
Fourth Generation Information Systems Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
-
కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
-
Fourth Generation Information Systems Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
-
Fourth Generation Information Systems Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
-
Fourth Generation Information Systems Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
-
Fourth Generation Information Systems Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
- ఆడిటర్స్ నివేదిక
- డైరక్టర్స్ నివేదిక
- ఖాతాకు గమనికలు
-
Fourth Generation Information Systems Ltd. కార్పొరేట్ ప్రకటనలు
- బుక్ క్లోజర్
- డివిడెండ్
- బోర్డు సమావేశాలు
-
బ్లూ-చిప్ స్టాక్లలో కొనుగోళ్ల జోరు.. 609 పాయింట్లు ఎగబాకిన సెన్సెక్స్.. 24177 పాయింట్ల వద్ద ముగిసిన నిఫ్టీ.. -
నష్టాల్లో ముగిసిన సూచీలు.. 24 వేల మార్క్ దిగువకు నిఫ్టీ.. 417 పాయింట్లు కోల్పోయిన సెన్సెక్స్.. -
HCL share: స్టాక్ పడిపోతుంటే ఇన్వెస్టర్లు ఎందుకు కొంటున్నారు? HCL టెక్ వెనుక ఉన్న అసలు సీక్రెట్ ఇదే! -
నిఫ్టీ టార్గెట్ తగ్గింపు.. భారత మార్కెట్కు జేపీ మోర్గాన్ షాక్! -
స్టాక్ మార్కెట్ భారీ క్రాష్.. రూ. 6 లక్షల కోట్లు ఆవిరి.. మూడు రోజుల్లో సెన్సెక్స్ 2,600 పాయింట్లు ఢమాల్.. -
మూడో రోజు కూడా కుప్పకూలిన స్టాక్ మార్కెట్.. భారీ నష్టాలతో ఇన్వెస్టర్లు విలవిల -
కుప్పకూలిన స్టాక్ మార్కెట్.. భారీ నష్టాల్లో ఐటీ రంగం షేర్లు.. ఇన్వెస్టర్లు లబోదిబో.. -
Stock market: పెరుగుతున్న స్టాక్ మార్కెట్! చమురు ధరలు తగ్గడమే కారణమా? ఇన్వెస్టర్లు ఇప్పుడేం చేయాలంటే.. -
ఇన్వెస్టర్లు డబ్బుతో రెడీగా ఉండండి.. రేపు బలంగా ర్యాలీ చేయనున్న నిఫ్టీ.. కారణాలు ఇవే.. -
IPO: స్టాక్ మార్కెట్ చరిత్రలోనే కీలక అడుగు.. ఏప్రిల్ 20న ఏం జరగబోతోంది? -
బలంగా ప్రారంభమై యూ-టర్న్ తీసుకున్న మార్కెట్..సెన్సెక్స్ 300 పాయింట్లు ఢమాల్.. కారణం ఏంటంటే.. -
Stock market: వర్షం పడితేనే స్టాక్ మార్కెట్లో లాభాల పంట! మాన్సూన్ ఎఫెక్ట్ వెనుక ఉన్న అసలు రహస్యం ఇదే! -
Stock Market: సెన్సెక్స్ టాప్ లూజర్స్ ఇవే.. ఇన్వెస్టర్లు అప్రమత్తంగా ఉండాలా, లేక ఇన్వెస్ట్ చేయాలా? -
Stock market: ఐటీ స్టాక్స్ క్రాష్! నిఫ్టీ ఐటీ ఇండెక్స్ డౌన్.. భారీ నష్టాల్లో టాప్ కంపెనీలు! -
Stock market: సెన్సెక్స్ పతనం.. కానీ రికవరీ మొదలైందా? నేటి మార్కెట్ టాప్ విన్నర్స్ వీరే!
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+