Virtualsoft Systems’ board of directors has decided to transfer the assets of Roam 1 division under development to a subsidiary of the company, which is to be formed in the current year. The board of the company at its meeting held on March 15, 2011, after consultation with the statutory auditors to capitalize expenses pertaining to CRM product development for Roam 1 division of the Company has decided to transfer the assets of Roam 1 division.
The company in lights of its needs and its ability to raise resources for establishing its Telecom project in a subsidiary coupled with the investor’s insistence on formation of a subsidiary for their investment in the further development of the Telecom project has taken this decision.
Since, the board has agreed to capitalize all the expenses during the year pertaining to the development of CRM for Telecom project. Consequently, the expenses being capitalized aggregating to Rs 4.06 lac which were earlier charged to the Profit and Loss account in the previous quarters have resulted in a loss of Rs 10.52 lac.
