Quantum Digital Vision (India) Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Note 1 - Material Accounting Policiesla. Corporate Information

Quantum Digital Vision India Limited is a Public Limited Company listed on Bombay Stock Exchange (BSE) in India and incorporated on 21/04/1980 under the provisions of the Companies Act, 1956. The company is engaged in the business of manufacturing of Spring Leaves and assembles polymer bags, TV Serial and trading in Medicine items.

lb. Statement of compliance and Basis of preparation and presentationi) Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under section 133 of the Companies Act, 2013 (the Act), read together with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, relevant provisions of the Act and other accounting policies generally accepted in India.

The financial statements have been prepared on a historical cost convention and on an accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements.

ii) 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. Actu al results may differ from these estimates.

1c Significant accounting policies i) Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated useful life on WDV Method using the rates arrived at based on the useful lives estimated by the management. The company has used the following useful life to provide depreciation on its fixed assets:

Fixed Assets, individually costing less than Rupees Five Thousand- Fully depreciated in the year of purchase. Depreciation methods, useful lives and residual values are reviewed at each reporting date.

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. Subsequent expenditure relating to property, plant and equipment is capitalize d only when it is probable that future economic benefits associated with these will flow to the Company and the cost of the item can be measured reliably. Repairs and maintenance costs are recognized in the statement of profit and loss when incurred. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or disposition of the asset and the resultant gains or losses are recognized in the statement of profit and loss. Amounts paid towards the acquisition of property, plant and equipment outstanding as of each reporting date and the cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- in-progress( if any).

ii) Intangible assets

Intangible assets (if any) are stated at cost less accumulated amortization and impairment. Intangible assets are amortized over their respective estimated useful lives on a straight-line basis, from the date that they are available for use. The estimated useful life of an identifiable intangible asset is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.

iii) Leases

The Company as a Lessor:

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other le ases are classified as operating leases.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

The Company as a Lessee:

The Company, as a lessee, recognises a right of-use asset and a lease liability for its leasing arrangements, if the contract conveys the right to control the use of an identified asset. The

contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset. The cost of the right-of use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the lease term.

iv) Impairment

Financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss. The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade receivable.

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.

v) Employee Benefits

The company is in process to formulate the retirement benefit policy for the employees.

vi) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. Provisions for onerous contracts are measured at the present value of lower of the expected net cost of fulfilling the contract and the expected cost of terminating the contract.

vii) Contingencies

Provision in respect of contingencies relating to claims, litigation, assessment, fines, penalties etc. are recognised when it is probable that a liability has been incurred and the amount can be estimated reliably.

viii) Revenue

Revenue is recognised upon transfer of control of promised services to customers in an amount that reflects the consideration which the Company expects to receive in exchange for those services. Revenue is measured based on the consideration specified in a contract with the customer and excludes amounts collected on behalf of customers. The Company presents revenue net of discounts and collection charges. Revenue also excludes taxes collected from customers.

ix) Income tax

Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

Current income tax

Current income tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company off sets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously

Deferred income tax

Deferred income tax is recognized using the balance sheet approach. Deferred income tax assets and liabilities are recognized for deductible and taxable temporary difference arising between the tax base of assets and liabilities and their carrying amount in financial statements, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction. Deferred income tax asset is recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary difference, and the carry forward of unused tax credits and unused tax losses can be utilized. Deferred income tax liabilities are recognized for all taxable temporary difference. The carrying amount of deferred income 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 income tax asset to be utilized. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

x) Earnings per share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

xi) Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/non current classification.

The Company has identified twelve months as its operating cycle. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

An asset is treated as current when it is:

Expected to be realised or intended to be sold or consumed in the normal operating cycle; Held primarily for the purpose of trading;

Expected to be realised within twelve months after the reporting period; or

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:

It is expected to be settled in the normal operating cycle;

It is held primarily for the purpose of trading;

It is due to be settled within twelve months after the reporting period; or

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

xii) Cash and cash equivalent

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.

xiii) Financial Instruments

All financial instruments are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place are recognised on trade date. While, loans and borrowings and payables are recognised net of directly attributable transaction costs. For the purpose of subsequent measurement, financial instruments of the Company are classified in the following categories: non-derivative financial assets comprising amortised cost, debt instruments at fair value through other comprehensive income (FVTOCI), equity instruments at FVTOCI or fair value through profit and loss account (FVTPL), non derivative financial liabilities at amortised cost or FVTPL and derivative financial instruments (under the category of financial assets or financial liabilities) at FVTPL. The classification of financial instruments depends on the objective of the business model for which it is held. Management dete rmines the classification of its financial instruments at initial recognition.

Debt instruments at FVTOCI

A debt instrument shall be measured at fair value through other comprehensive income if both of the following conditions are met:

- the objective of the business model is achieved by both collecting contractual cash flows and selling financial assets and

- the asset''s contractual cash flow represent Solely Payments of Principal and Interest(SPPI)

Debt instruments included within FVTOCI category are measured initially as well as at each reporting period at fair value plus transaction costs. Fair value movements are recognised in other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain/loss in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to profit and loss. Interest earned is recognised under the effective interest rate (EIR) model.

Equity instruments at FVTOCI

All equity instruments are measured at fair value. Equity instruments held for trading is classified as FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in OCI. The Company makes such election on an instrument-by-instrument basis. If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividend are recognised in OCI which is not subsequently recycled to statement of profit and loss.

Financial assets at FVTPL

FVTPL is a residual category for financial assets. Any financial asset which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classified as FVTPL.

In addition the Company may elect to designate the financial asset, which otherwise meets amortised cost or FVTOCI criteria, as FVTPL if doing so eliminates or significantly reduces a measurement or recognition inconsistency. The Company has not designated any financial asset as FVTPL.

Financial assets included within the FVTPL category are measured at fair values with all changes in the statement of profit and loss.

Non-derivative financial liabilities

Derivative financial instruments: Derivatives are recognized and measured at fair value. Attributable transaction costs are recognized in statement of profit and loss.

Financial liabilities at amortised cost:

Financial liabilities at amortised cost represented by borrowings, trade and other payables are initially recognized at fair value, and subsequently carried at amortized cost using the effective interest rate method.

Financial liabilities at FVTPL:

Financial liabilities at FVTPL represented by contingent consideration are measured at fair value with all changes recognised in the statement of profit and loss.

xiv) Fair value measurement

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:

In the principal market for the asset or liability or 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 minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, as described below, 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 recognized in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (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.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

la. Corporate Information

Quantum Digital Vision India Limited is a Public Limited Company listed on Bombay Stock
Exchange (BSE) in India and incorporated on 21/04/1980 under the provisions of the
Companies Act, 1956. The company is engaged in the business of manufacturing of Spring
Leaves and assembles polymer bags, TV Serial, trading in Medicine items. The company
has included the following in it''s object clause : “To carry on the business as hoteliers,
Resorts, To purchase & acquire land for establishment of hotels, holidays, resorts, villas,
lodgings, To enter into a business like EPC Contract in Infrastructure space, solar energy,
contracting in engineering, construction, energy, oil and gas, manufacturing,
transportation and large scale infrastructure work in private sector, To carry on the
business of manufacturing, creating, assembling, fabricating, purchasing, selling, trading,
distributing, exporting, importing, exchanging, and dealing with all kinds of electric
vehicles, including electric cars, electric rickshaws, carts, vans, cycles, scooters, buses,
and other battery-management system and bess and battery assembly plant, to provide
manpower services and human resource management.

lb. Statement of compliance and Basis of preparation and presentation

i) Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting
Standards (“Ind AS”) notified under section 133 of the Companies Act, 2013 (the Act), read
together with the Companies (Indian Accounting Standards) Rules, 2015 as amended from
time to time, relevant provisions of the Act and other accounting policies generally
accepted in India.

The financial statements have been prepared on a historical cost convention and on an
accrual and going concern basis. The accounting policies are applied consistently to all
the periods presented in the financial statements.

ii) 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. Actual
results may differ from these estimates.

1c Significant accounting policies

i) Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses, if any. Cost includes expenditures
directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated
useful life on WDV Method using the rates arrived at based on the useful lives estimated
by the management. The company has used the following useful life to provide
depreciation on its fixed assets:

Fixed Assets, individually costing less than Rupees Five Thousand- Fully depreciated in
the year of purchase. Depreciation methods, useful lives and residual values are reviewed
at each reporting date.

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.
Subsequent expenditure relating to property, plant and equipment is capitalize d only
when it is probable that future economic benefits associated with these will flow to the
Company and the cost of the item can be measured reliably. Repairs and maintenance
costs are recognized in the statement of profit and loss when incurred. The cost and
related accumulated depreciation are eliminated from the financial statements upon sale
or disposition of the asset and the resultant gains or losses are recognized in the statement
of profit and loss. Amounts paid towards the acquisition of property, plant and equipment
outstanding as of each reporting date and the cost of property, plant and equipment not
ready for intended use before such date are disclosed under capital work- in-progress( if
any).

ii) Intangible assets

Intangible assets (if any) are stated at cost less accumulated amortization and impairment.
Intangible assets are amortized over their respective estimated useful lives on a straight-line
basis, from the date that they are available for use. The estimated useful life of an identifiable
intangible asset is based on a number of factors including the effects of obsolescence,
demand, competition and other economic factors (such as the stability of the industry and
known technological advances) and the level of maintenance expenditures required to obtain
the expected future cash flows from the asset.

iii) Leases

i) The Company as a Lessor:

Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease. All other le ases are classified as
operating leases.

For operating leases, rental income is recognized on a straight line basis over the term of
the relevant lease.

The Company as a Lessee:

The Company, as a lessee, recognises a right of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset. The
contract conveys the right to control the use of an identified asset, if it involves the use of an
identified asset and the Company has substantially all of the economic benefits from use of
the asset and has right to direct the use of the identified asset. The cost of the right-of use
asset shall comprise of the amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before the commencement date plus any initial direct costs
incurred.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful life of right-of-use asset. The
Company measures the lease liability at the present value of the lease payments that are not
paid at the commencement date of the lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an
operating expense on a straight-line basis over the lease term.

iv) Impairment

Financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss. The Company follows ‘simplified approach’
for recognition of impairment loss allowance on trade receivable.

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.

v) Employee Benefits

The company is in process to formulate the retirement benefit policy for the employees.

Note 1 - Material Accounting Policies

la. Corporate Information

Quantum Digital Vision India Limited is a Public Limited Company listed on Bombay Stock
Exchange (BSE) in India and incorporated on 21/04/1980 under the provisions of the
Companies Act, 1956. The company is engaged in the business of manufacturing of Spring
Leaves and assembles polymer bags, TV Serial and trading in Medicine items.

lb. Statement of compliance and Basis of preparation and presentation

i) Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting
Standards (“Ind AS”) notified under section 133 of the Companies Act, 2013 (the Act), read
together with the Companies (Indian Accounting Standards) Rules, 2015 as amended from
time to time, relevant provisions of the Act and other accounting policies generally
accepted in India.

The financial statements have been prepared on a historical cost convention and on an
accrual and going concern basis. The accounting policies are applied consistently to all
the periods presented in the financial statements.

ii) 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. Actual
results may differ from these estimates.

1c Significant accounting policies
i) Property, plant and equipment

Recognition and measurement: Property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses, if any. Cost includes expenditures
directly attributable to the acquisition of the asset.

Depreciation: The Company depreciates property, plant and equipment over the estimated
useful life on WDV Method using the rates arrived at based on the useful lives estimated
by the management. The company has used the following useful life to provide
depreciation on its fixed assets:

Fixed Assets, individually costing less than Rupees Five Thousand- Fully depreciated in
the year of purchase. Depreciation methods, useful lives and residual values are reviewed
at each reporting date.

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.
Subsequent expenditure relating to property, plant and equipment is capitalized only
when it is probable that future economic benefits associated with these will flow to the
Company and the cost of the item can be measured reliably. Repairs and maintenance
costs are recognized in the statement of profit and loss when incurred. The cost and
related accumulated depreciation are eliminated from the financial statements upon sale
or disposition of the asset and the resultant gains or losses are recognized in the statement
of profit and loss. Amounts paid towards the acquisition of property, plant and equipment
outstanding as of each reporting date and the cost of property, plant and equipment not
ready for intended use before such date are disclosed under capital work- in-progress( if
any).

ii) Intangible assets

Intangible assets (if any) are stated at cost less accumulated amortization and impairment.
Intangible assets are amortized over their respective estimated useful lives on a straight-line
basis, from the date that they are available for use. The estimated useful life of an identifiable
intangible asset is based on a number of factors including the effects of obsolescence,
demand, competition and other economic factors (such as the stability of the industry and
known technological advances) and the level of maintenance expenditures required to obtain
the expected future cash flows from the asset.

iii) Leases

i) The Company as a Lessor:

Leases for which the Company is a lessor is classified as a finance or operating lease.
Whenever the terms of the lease transfer substantially all the risks and rewards of ownership
to the lessee, the contract is classified as a finance lease. All other leases are classified as
operating leases.

For operating leases, rental income is recognized on a straight line basis over the term of
the relevant lease.

The Company as a Lessee:

The Company, as a lessee, recognises a right of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset. The
contract conveys the right to control the use of an identified asset, if it involves the use of an
identified asset and the Company has substantially all of the economic benefits from use of
the asset and has right to direct the use of the identified asset. The cost of the right-of use
asset shall comprise of the amount of the initial measurement of the lease liability adjusted
for any lease payments made at or before the commencement date plus any initial direct costs
incurred.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful life of right-of-use asset. The
Company measures the lease liability at the present value of the lease payments that are not
paid at the commencement date of the lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an
operating expense on a straight-line basis over the lease term.

iv) Impairment

Financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for
measurement and recognition of impairment loss. The Company follows ‘simplified approach’
for recognition of impairment loss allowance on trade receivable.

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.

v) Employee Benefits

The company is in process to formulate the retirement benefit policy for the employees.

A. Basis of Accounting

All income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except those with significant uncertainties like gratuity payment, leave salary & bonus which are accounted on cash

B. Fixed Assets, intangible assets and capital work in progress

Fixed assets are stated at cost, less accumulated depreciation and impairement, if any. Direct costs are capitalised until fixed assets are ready for use. Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are records at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairement.

C. Depreciation

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act,1956.

D. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long- term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly Attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by Issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the investment Acquired, whichever is more clearly evident.

Current investments are carried in the financial statement at lower of cost and fair market value determined on an Individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

Investment property

An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the operations of the company, is classified as investment property. Investment properties are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of Bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are Deducted in arriving at the purchase price.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

E. Inventories

Finished goods & Work in progress are valued at cost or net realizable value whichever is lower and includes excise duty.

Cost for this purpose includes direct material, direct labour, excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition.

Raw Material, Stores & Spares, Packing Materials are valued at cost (computed on FIFO basis) or net realizable value whichever is lower. Cost includes purchase price, freight inward and incidental expenses.

F. Deferred Tax Assets or Liability

Deferred Tax Assets or Liabilities are recognized for the future tax consequences attributable to timing differences hat result between the profits offered for income taxes and the profits as per the financial statements of the company.

Deferred tax assets or liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on Deferred tax assets or liabilities of a change in tax rates is recognized in the period that includes the enactment date.

G. Taxation :

Current Income Tax and Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income Tax Act''1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet dat

H. Retirement Benefit :

The company is in process to formulate the retirement benefit policy for the employees.

J. Segment Reporting:

The Company operates under multi segment viz."manufacturing of plastic products and software relating to multimedia And entertainment industries, since the company didn''t recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 ''Segment Reporting'' issued by the Institute of Chartered Accountants of India is not Applicable.

K. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

L. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognized whenever the carrying amount of the asset exceeds its recoverable amount. Any such impairment loss is recognized by charging it to the profit & loss account. A previously recognised impairment loss is reversed when it no longer exists and the asset is restated to that effect.

M. Provisions & Contingent Liabilities:

A provision is recognised if, as a result f a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingment liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possbile obligation or a present obligation in respect of which the likelihood of outlow of resources is remote, no provision or disclosure is made.

J. Foreign Currency Transaction

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foregin currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foregin currecny and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of transaction. Transaction gains or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

K. Revenue Recognition

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the customer which generally coincide with dispatch of goods. The sales are inclusive of excise duty but net of sales tax and returns.

A. Basis of Accounting

Ail income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except those with significant uncertainities like gratuity payment, leave salary & bonus which are accounted on cash

B. Fixed Assets, intangible assets and capital work in progress

Fixed assets are stated at cost, less accumulated depreciation and impairement, if any. Direct costs are capitalised until fixed assets are ready for use. Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are records at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairement.

C. Depreciation

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act,1956.

D. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which h investments are made, are classified as current investments. All other investments are classified as long- term

On initial recognition, all investments are measured at cost The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the investment acquired,

Current investmnts are carried in the financial statement at lower of cost and fair market value determined on an individual investment basis. Long term investments are carried at cost However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

Investment property

An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the operations of, the company, is classified as investment property. Investment properties are stated at cost, net of accumulated depreciaition and accumulated impairment losses, if any.

The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

E. Inventories

Finished goods & Work in progress are valued at cost or net realisable value whichever is lower and includes excise duty. Cost for this purpose includes direct material, direct labour, excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition. Material, Stores & Spares, Packing Materials are valued at cost (computed on FIFO basis) or net realisable value whichever is lower. Cost includes purchase price, freight inward and incidental expenses.

F. Deferred Tax Assets or Liability

Deferred Tax Assets or Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements of the company. Deferred tax assets or liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on Deferred tax assets or liabilities of a change in tax rates is

G. Taxation:

Current Income Tax arid Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income TaxAct''1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted

h. Retirement Benefit:

The company is in process to formulate the retirement benefit policy for the employees.

J. Segment Reporting:

The Company operates under multi segment viz. " manufacturing of plastic products and software relating to multimedia and entertainment industries, since the company didn''t recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 ''Segment Reporting'' issued by the Institute of Chartered

K. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during thft^

L. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. Any such impairment loss is recognised by charging it to the profit & loss account. A previously recognised impairment loss is reversed when it no longer exists and the asset is restated to that effect.

M. Provisions & Contingent Liabilities:

A provision is recognised if, as a result f a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingment liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possbile obligation or a present obligation in respect of which the likelihood of outlow of resources is remote, no provision or disclosure is made.

J. Foreign Currency Transaction

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance it date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non- monetary assets and non-monetary liabilities denominated in a foregin currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foregin currecny and measured at historical cost are translated at the

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of transaction. Transaction gains or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

K. Revenue Recognition

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the customer which generally coincide with dispatch of goods. The sales are inclusive of excise duty but net of sales tax and returns.

A. Change in accounting policy

Presentation and disclosure of financial statement During the year ended 31 March 2012' the Revised Schedule VI notified under the Companies Act' 1956' has become applicable to the company' for preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However' it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

B. Basis of Accounting

All income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except those with significant uncertainities like gratuity payment' leave salary & bonus which are accounted on cash basis.

C. Fixed Assets' intangible assets and capital work in progress

Fixed assets are stated at cost' less accumulated depreciation and impairement' if any. Direct costs are capitalised until fixed assets are ready for use. Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are records at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairement.

D. Depreciation

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act' 1956.

E. Investments

Investments' which are readily realizable and intended to be held for not more than one year from the date on which such inv-estments are made' are classified as current investments. All other investments are classified as long- term investments. On initial recognition' all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage' fees and duties.

If an investment is acquired' or partly acquired' by the issue of shares or other securities' the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset' the acquisition is determined by reference to the fair value of the investment acquired' whichever is more clearly evident.

Current investmets are carried in the financial statement at lower of cost and fair market value determined on an individual investment basis. Long term investments are carried at cost. However' provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment' the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

Investment property

An investment in Ian d or buildings' which is not intended to be occupied substantially for use by' or in the operations of' the company' is classified as investment property. Investment properties are stated at cost' net of accumulated depreciaition and accumulated impairment losses' if any.

The cost comprises purchase price' borrowing costs if capitalLation criteria are met and directly attributable cost of bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

On disposal of an investment' the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

F. Inventories

Finished goods & Work in progress are valued at cost or net realisable value whichever is lower and includes excise duty. Cost for this purpose includes direct material' direct labour' excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition.

Raw Material' Stores & Spares' Packing Materials are valued at cost (computed on FIFO basis) or net realisable value whichever is lower. Cost includes purchase price' freight inward and incidental expenses.

G. Deferred Tax Assets or Liability

Deferred Tax Assets or Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements of the company.

Deferred tax assets or liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on Deferred tax assets or liabilities of a change in tax rates is recognized in the period that includes the enactment date.

H Taxation:

Current Income Tax and Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income Tax Aot'1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax as sets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted ty the balance sheet dat

I. Retirement Benefit:

The company is in-process to formulate the retirement benefit policy for the employees.

J. Segment Reporting:

The Company operates under multi segment viz." manufacturing of plastic products and software relating to multimedia and entertainment industries' since the company didn't recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 'Segment Reporting' issued by the Institute of Chartered Accountants of India is not Applicable.

K. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

L. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on intemaVextemal factors.. An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. Any such impairment loss is recognised by charging it to the profit & loss account. A previously recognised impairment loss is reversed when it no longer exists and the asset is restated to that effect.

M. Provisions & Contingent Liabilities:

A. provision is recognised if' as a result f a past event' the Company has a present legal obligation that can be estimated reliably' and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can he made' disclosure is made as contingent liability. A disclosure for a contingment liability is also made when there is a possible obligation or a present obligation that may' but probably will not' require an outflow of resources. Where .there is a. possbile obligation or a present obligation in respect of which the likelihood of outlow of resources is remote' no provision or disclosure is made.

J. Foreign Currency Transaction

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foregin currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a fc regin currecny and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

Revenue' expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect en the date of transaction. Transaction gains or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

K Revenue Recognition

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the customer which generally coincide with dispatch of goods. The sales are inclusive of excise duty but net of sales tax and returns.

1. Basis of Preparation : The financial statements are prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act,1956.

2. Fixed Assets :

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. Cost includes all incidental expenses incurred to bring the assets to its present location and condition, other pre operative expenses. Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such asset. A qualifying asset is one which takes substantial period of time to get ready for intended use. All other borrowing cost are charged to revenue

3. Depreciation :

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act,1956.

4. Investments :

Long term investment are carried at cost less provision for permanent diminution in value of such investments. Current investments carried at lower of cost and fair value.

5. Foreign Exchange Transactions :

Foreign currency transactions are initially recognized at the spot rate on the date of transaction. Monetary assets and liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at year-end rates. The difference in translation and realized gains and losses on foreign exchange transaction are recognized in the Profit and Loss Account except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to carrying cost of such assets.

6. Revenue Recognition ;

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the custorner generally coincide with dispatched foods.. The sales are inclusive exese of sales tax and returns.

7. Inventories (As valued & Certified by the management):

Finished goods & Work in progress are valued at cost or net realisable value whichever is lower and includes excise duty. Cost for this purpose includes direct material, direct labour, excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition.

Raw Material, Stores & Spares, Packing Materials are valued at cost (computed on FIFO basis) or net realisable value whichever is lower. Cost includes purchase price, freight inward and incidental expenses.

8. Taxation :

Current Income Tax and Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income Tax Act1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

9. Retirement Benefit :

The company is in process to formulate the retirement benefit policy for the employees.

10. Segment Reporting:

The Company operates under multi segment viz. manufacturing of plastic products and software relating to multimedia and entertainment industries, since the company didnt recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 Segment Reporting issued by the Institute of Chartered Accountants of India is not Applicable.

11. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

12. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. Any such employment loss is recognised by Charging to the profit & loss account. A Previously reconesed impairment loss is reversed when it no longer exists and the asset is restafed & to that effect.

13. Provisions & Contingent Liabilities:

A provision arising out of present obligation is recognised when it is probable that an outflow of resources wilf be required to settle the obligation and the amount can be reasonably estimated. Whenever there is a possible obligation that may, but probably will not require an outflow of resources, the same is disclosed by way of contingent liability under "Notes to Accounts"