SIGNIFICANT

ACCOUNTING
POLICIES
1. USE OF ESTIMATES

Accounting estimates could change from period to period.

appropriate changes in estimates are made as the mgmt becomes
aware of changes in circumstances surrounding the estimates.

2. REVENUE RECOGNITION

Revenue is primarily derived from software development &

related services from the licensing of software products.
3. PROVISIONS & CONTINGENT
LIABILITIES
A provision is recognized if ,as a result of a past event the
company has a present legal obligation that can be estimated
reliably & it is probable that an outflow of economic benefits
will be required to settle the obligation.
Where no reliable estimate can be made a
disclosure is made as a contingent liability.

4. FIXED ASSETS
Fixed assets are stated at cost, less accumulated
depreciation & impairments if any. Direct costs are
capitalized until the fixed assets are ready to use.
5. INTANGIBLE ASSETS & CAPITAL
WORK-IN-PROGRESS.
Intangible assets are recorded at the consideration paid to
acquire such assets & are carried at cost less accumulated
amortization & impairment
Capital work-in-progress comprises outstanding advances
paid to acquire fixed assets & the cost of fixed assets that are
not yet ready for their intended use at the reporting date.

6. PROVIDENT FUND.
It’s a defined benefit plan in which both the company &
employee make monthly contributions to the provident fund
plan equal to a specified % of the covered employee’s salary.
The company contributes a part of the contribution to the
Infosys technologies limited employees’ provident fund trust.
7. DEPRICIATION & AMORTIZATION
Depreciation on fixed assets is provided on the straight line
method.
Intangible assets are amortized over their respective
individual estimated useful lives on a straight line basis.
The mgmt estimates the useful lives for the other fixed
assets

BUILDINGS 15 YEARS
PLANT & MACHINERY 5 YEARS
COMPUTER EQUIPMENT 2- 5 YEARS
FURNITURE & FIXTURES 5 YEARS
VEHICLES 5 YEARS