8K Miles Software Services Limited ("the Company"), Listed Company, incorporated in the year 1985 in the name of Rosebud Commercials Limited and the Company''''s name was changed to P M Strips Limited in September 1998 and subsequently to 8K Miles Software Services Limited in October 2010. The Company is a distributed development platform that blends a global talent market place with collaboration tools and cloud infrastructure, helping Small and Medium Enterprises Startups (SMBs) and large Enterprise customers to integrate Cloud computing and Identity Security into their Information and Technology ("IT") and business strategies.
1 SIGNIFICANT ACCOUNTING POLICIES
1.1 basis of preparation of financial statements
a) Basis of Accounting
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India and presented under historical cost convention on the accrual basis of accounting. GAAP comprises mandatory Accounting Standards as prescribed under Section 133 of Companies Act, 2013 ("Act") read with Rule 7 of Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and guidelines issued by Securities and Exchange Board of India (SEBI).
b) Use of Estimates
The preparation of Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the standalone financial statements and reported amount of income and expenses during the period. Accounting estimates could change from period to period. Actual results could vary from those estimates and any such differences are dealt within the period in which the results are known/materialize.
1.2 TANGIBLE And INTANGIBLE ASSETS
a) Tangible Fixed Assets
Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use.
b) Intangible Assets
In the case of acquired assets, consideration paid for such assets is carried at cost less accumulated amortization and impairment. In the case of self generated/internally developed intangible assets, direct cost and other incidental/attributable expenses are capitalized at the time such assets are ready and put to use.
All other intangible assets, that are not yet ready for their intended use are carried at costs, comprising direct cost and other incidental/attributable expenses and reflected under Intangible assets under development.
c) Depreciation And Amortization
Depreciation is provided on tangible fixed assets on the written down value (WDV) method over useful life of the assets as estimated by the management.
Intangible assets are amortized on straight line method over their respective individual estimated useful lives as determined by the management.
1.3 revenue recognition
Revenue is primarily derived from Information Technology Software Consulting and related services. Revenues are recognized on the services rendered on accrual basis, based on arrangements with clients either on fixed Price, fixed time-frame or on Time and Material basis.
Trade Investments are the investments made to enhance the Company''''s business interests. Investments are classified into current and long term investments. Investments that are readily realizable and intended to be held for not more than an year from the date of acquisition are classified as current investments. All other investments are classified as long term investments.
Current investments are stated at lower of cost or fair value. The comparison of cost and fair value is done separately in respect of each category of investments.
Long term investments are stated at cost. A provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of management.
investments other than in subsidiary and associates have been accounted as per Accounting Standard (AS) 13 on "Accounting for investments".
1.5 transaction in foreign currency
a) initial Recognition
Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss.
b) Measurement of foreign currency items at the Balance Sheet date
Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are recognized in the Statement of Profit and Loss.
1.6 trade receivables
Trade receivables are stated after writing off debts considered as bad, if any. Adequate provision shall be made for debts if considered doubtful.
1.7 employee benefits
Employee benefit expenses include salary, wages, performance incentives, compensated absences, medical benefits and other perquisites. It also includes post-employment benefits such as provident fund.
Short term employee benefit obligations are estimated and provided for.
The Company is registered with PF Authorities and both the Employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''''s salary. The Company has not made Provision of gratuity and other retirement benefits as per the Actuarial Valuation referred in the Accounting Standard 15 "Accounting for Retirement Benefits in the financial Statement of Employers". The effect on the current period profit was not ascertainable.
1.8 research and development
Revenue Expenditure pertaining to research is charged to Profit and Loss Statement as and when incurred. Product Development costs consisting direct cost and other incidental/attributable expenses are grouped under "intangible assets under development" and capitalized when they are ready and put to use and amortized over their estimated useful lives.
1.9 provision for taxation
Income Tax expense comprises of current tax and deferred taxes. Current tax is determined on income for the year chargeable to tax in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.
Deferred tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more periods. Deferred Tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets are recognized for timing differences other than unabsorbed depreciation and carry forward loss only to the extent there is reasonable certainty that there will be sufficient future taxable income to realize the assets. Deferred tax assets pertaining to unabsorbed depreciation and carry forward losses are recognized only to the extent there is a virtual certainty of its realization.
1.10 provisions and contingencies
The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.
1.11 earnings per share
The Basic and Diluted Earnings Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.
1.12 borrowing cost
All borrowing costs are charged to revenue except to the extent they are attributable to qualifying assets which are capitalized. A Qualifying Asset is one that necessarily takes substantial period of time to get ready for its intend use. During the year under review there was no borrowing attributable to qualifying assets and hence no borrowing cost was capitalized.
1.13 cash and cash equivalents
Cash and cash equivalents include cash & cheques in hand, bank balances, demand deposits with banks and other short-term highly liquid investments where the original maturity is three months or less.
1.14 government grants and subsidies
The Company has not received any Government grants during the reporting period.
1.15 related party disclosures
Category - I - Major shareholders in the Company
- Mr. Venkatachari Suresh - 54.49%
- Mr. R.S. Ramani - 7.43%
Category - II - Subsidiaries of the Company.
- 8K Miles Software Services Inc. USA
- 8K Miles Software Services FZE. UAE
- 8K Miles Health Cloud Inc. USA
- Mentor Minds Solutions and Services Inc. USA
- Mentor Minds Solutions & Services Pvt Ltd. India Category - III - Other parties where common control exists.
- 8K Miles Media Private Limited, Chennai, India.
Category - IV - Key Managerial Personnel
- Mr. Venkatachari Suresh, Director
- Mr. R.S. Ramani, Director
Category - V - Relatives of Key Managerial Personnel
- There is no relationship existing among Key Management Personnel.
2. Transactions with Related Parties:-
Category - I - Major shareholders in the Company Amount due to Directors
1.16 CASH FLOW STATEMENT
The Cash Flow Statement are reported using the indirect method, whereby net profit after 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, if necessary.
1.17 other information
1.18 previous year figures
Figures for the prior year have been regrouped, recast or rearranged to conform to the current year''''s classification/presentation.