FCS Software Solutions Ltd has informed that in the limited review report of the Company for the quarter ended December 31, 2007, the Auditors of the Company have made the following observations:
1. Work in Process:
The value of work in process as on the date of Balance Sheet has been considered as valued and certified by the Management.
2. Foreign Currency Transactions:
In case of sale made to clients outside India, income is accounted on the basis of the exchange rate as on the date of transaction. Adjustments are made for any variations in the sale proceeds on conversion into Indian currency upon actual receipt. Expenditure in foreign currency is accounted at the conversion rate prevalent when such expenditure is incurred. Where realizations, are deposited into, and disbursements made out of, a foreign currency Bank account, all transactions during the month are reported at a rate which approximates the actual monthly rate.
In the case of current assets and current liabilities expressed in foreign currency, the exchange rate prevalent at the end of the year is taken for the purposes of transaction, Fixed assets purchased at overseas offices are accounted on the basis of actual cost incurred at the exchange rate prevalent at the time of purchase. Depreciation is charged as per Company policy. Exchange differences are arising on foreign currency transactions are recognized as income or expenses in the year in which they arise. In the case of forward contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or expenses over the life of the contracts.
3. Income Tax:
Provision is made for income tax on a quarterly basis, under the tax-payable method, based on the tax liability as computed after taking credit for allowances and exemptions as the case may be.
4. Foreign Branch :
The Company has its branch at USA. All revenue and expenses transactions are during the period reported at average rate. The assets and liabilities both monetary and non-monetary are translated at the rate prevailing on the balance sheet date. All resulting exchange differences are accumulated in a foreign currency transaction reserve. However the Balance sheet of USA branch as on December 31, 2007 has been considered and accounted as certified by the management.
1. Work in Process:
The value of work in process as on the date of Balance Sheet has been considered as valued and certified by the Management.
2. Foreign Currency Transactions:
In case of sale made to clients outside India, income is accounted on the basis of the exchange rate as on the date of transaction. Adjustments are made for any variations in the sale proceeds on conversion into Indian currency upon actual receipt. Expenditure in foreign currency is accounted at the conversion rate prevalent when such expenditure is incurred. Where realizations, are deposited into, and disbursements made out of, a foreign currency Bank account, all transactions during the month are reported at a rate which approximates the actual monthly rate.
In the case of current assets and current liabilities expressed in foreign currency, the exchange rate prevalent at the end of the year is taken for the purposes of transaction, Fixed assets purchased at overseas offices are accounted on the basis of actual cost incurred at the exchange rate prevalent at the time of purchase. Depreciation is charged as per Company policy. Exchange differences are arising on foreign currency transactions are recognized as income or expenses in the year in which they arise. In the case of forward contracts, the difference between the forward rate and the exchange rate on the date of the transaction is recognized as Income or expenses over the life of the contracts.
3. Income Tax:
Provision is made for income tax on a quarterly basis, under the tax-payable method, based on the tax liability as computed after taking credit for allowances and exemptions as the case may be.
4. Foreign Branch :
The Company has its branch at USA. All revenue and expenses transactions are during the period reported at average rate. The assets and liabilities both monetary and non-monetary are translated at the rate prevailing on the balance sheet date. All resulting exchange differences are accumulated in a foreign currency transaction reserve. However the Balance sheet of USA branch as on December 31, 2007 has been considered and accounted as certified by the management.
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