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Accounting Policies of Cyberscape Multimedia Ltd. Company

Mar 31, 2014

(a) Basis of Preparation of Financial Statements:

The financial statements are prepared and presented under the historical cost conventions, on accrual basis of accounting to comply in all material respects, with the mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended (''the Rules'') and the relevant provisions of the Companies Act, 1956 (''the Act''). The accounting policies have been consistently applied by the Company and the Accounting Policies not referred to otherwise are in conformity with Indian Generally Accepted Accounting Principles (''India GAAP'').

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of financial statements. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the year in which the results are known / materialized. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

(b) Revenue Recognition:

i) Sales of Goods:

Revenue is recognized only when the significant risks and rewards in respect of ownership of products are transferred by the company. Sales are recorded net of returns, Value Added Tax and applicable trade discount and allowances, but included Central Sales Tax.

ii) Sale of Service:

The Company recognizes revenue when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured.

iii) Interest:

Interest income is recognized on time proportionate basis taking into account the amount outstanding and rate applicable.

(c) Fixed Assets:

i) The fixed assets are stated at cost of acquisition including incidental expenses related to acquisition of the concerned assets, less accumulated depreciation.

ii) Fixed assets are eliminated from financial statements either on disposal or when retired from active use.

(d) Depreciation:

i) Depreciation on fixed assets has been provided under Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

(e) Investments:

i) Investments are classified as long term or current based on the intention of the management at the time of purchase.

ii) Current Investment is valued at cost or fair value, whichever is lower.

iii) Long Term Investments are carried at carrying cost less diminution in value which is other than temporary, determined separately for each individual investment.

iv) Unquoted Investments are valued at cost.

(f) Employee Benefits:

i) Provident Fund:

Employees receive benefits from a provident fund. The employee and employer each make monthly contributions to the plan. A portion of the contribution is made to the provident fund trust managed by the Company, while the remainder of the contribution is made to the Government''s provident fund.

(f) Employee Benefits:

i) Provident Fund:

Employees receive benefits from a provident fund. The employee and employer each make monthly contributions to the plan. A portion of the contribution is made to the provident fund trust managed by the Company, while the remainder of the contribution is made to the Government''s provident fund.

ii) Gratuity:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company.

(g) Inventories:

i) Raw Materials are valued at Cost or Net Realizable value whichever is lower as per FIFO method followed.

ii) Manufactured finished goods are valued at lower of estimated cost or net realizable value as per FIFO method followed.

iii) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

(h) Purchases:

i) Purchases are recognized net of Value Added Tax.

(i) Taxes on Income:

i) Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessment / appeals.

ii) Deferred Tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

iii) Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961 (specified period). In the year, in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by the Institute of Chartered Accountants of India (ICAI), the said asset is created by way of credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the company will pay income tax higher than MAT during the specified period.

(j) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements except where virtual certainty is there.

(k) Events occurring after the date of Balance Sheet:

Material events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

(I) Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard 3 on "Cash Flow Statement" and presents the cash flows by Operating, Investing and Financing activities of the Company.


Mar 31, 2012

(a) Basis of Preparation of Financial Statements:

The financial statements are prepared and presented under the historical cost conventions, on accrual basis of accounting to comply in all material respects, with the mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 as amended ('the Rules') and the relevant provisions of the Companies Act, 1956 ('the Act'). The accounting policies have been consistently applied by the Company and the Accounting Policies not referred to otherwise are in conformity with Indian Generally Accepted Accounting Principles ('India GAAP').

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of financial statements. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the year in which the results are known / materialized. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

(b) Revenue Recognition:

i) Sales of Goods:

Revenue is recognized only when the significant risks and rewards in respect of ownership of products are transferred by the company. Sales are recorded net of returns, Central Sales Tax / Value Added Tax and applicable trade discount and allowances.

ii) Sale of Service:

The Company recognizes revenue when the significant terms of the arrangement are enforceable, services have been delivered and the collectability is reasonably assured.

iii) Interest:

Interest income is recognized on time proportionate basis taking into account the amount outstanding and rate applicable.

iv) Dividend:

Dividend income is recognized when the Company's right to receive dividend is established. v) Others:

Other revenue is accounted for in the year in which the right to receive the payment is established.

(c) Fixed Assets:

i) The fixed assets are stated at cost of acquisition including incidental expenses related to acquisition of the concerned assets, less accumulated depreciation.

ii) Fixed assets are eliminated from financial statements either on disposal or when retired from active use.

(d) Depreciation:

i) Depreciation on fixed assets has been provided under Written Down Value Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

ii) Depreciation on additions to fixed assets has been charged from the dates when they were first put to use.

(e) Investments:

i) Investments are classified as long term or current based on the intention of the management at the time of purchase.

ii) Current Investment is valued at cost or fair value, whichever is lower.

iii) Long Term Investments are carried at carrying cost less diminution in value which is other then temporary, determined separately for each individual investment.

iv) Unquoted Investments are valued at cost.

(f) Employee Benefits:

i) Provident Fund:

Employees receive benefits from a provident fund. The employee and employer each make monthly contributions to the plan. A portion of the contribution is made to the provident fund trust managed by the Company, while the remainder of the contribution is made to the Government's provident fund.

ii) Gratuity:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company.

(g) Inventories:

i) Raw Materials are valued at Cost or Net Realizable value which ever is lower as per FIFO method followed.

ii) Manufactured finished goods are valued at lower of estimated cost or net realizable value as per FIFO method followed.

iii) Traded goods are valued at lower of cost or net realizable value as per FIFO method followed.

(h) Purchases:

i) Purchases are recognized net of Value Added Tax.

(i) Taxes on Income:

i) Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessment/ appeals.

ii) Deferred Tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

iii) Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that company will pay income tax higher than that computed under MAT, during the period that MAT is permitted to be set off under the Income Tax Act, 1961 (specified period). In the year, in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the guidance note issued by the Institute of Chartered Accountants of India (ICAI), the said asset is created by way of credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that the company will pay income tax higher than MAT during the specified period.

(j) Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements except where virtual certainty is there.

(k) Event occurring garter the date of Balance Sheet:

Material events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

(l) Cash Flow Statement:

The Cash Flow Statement is prepared by the "Indirect Method" set out in Accounting Standard 3 on "Cash Flow Statement" and presents the cash flows by Operating, Investing and Financing activities of the Company.


Mar 31, 2010

(a) System of Accounting:

The Company follows the Mercantile System of Accounting. The Financial statements are prepared as per historical cost convention and on accrual basis unless otherwise specified hereinafter.

(b) Fixed Assets & Depreciation :

(i) The fixed assets are stated at cost of acquisition including incidental expenses related to acquisition of the concerned assets, less accumulated depreciation.

(ii) The Depreciation on fixed assets put to use is calculated at written down value method as per Companies Act, 1956.

(c) Inventories :

Traded goods are valued at lower of cost and market value. Self-developed software are valued at cost of development or at net realizable value, whichever is lower.

(d) Foreign Exchange Conversion:

1) Value of Import calculated on CIF Basis Nil

2) Earning in Foreign Exchange Nil

3) Expenditure in Foreign Currency Nil

4) Provided remittance in Foreign Currency Nil

(e) Sales :

Sales are inclusive of sales-tax and net of rebates and returns but exclusive of VAT.

(f) Retirement benefits :

1) Provident Fund :

Employees and the employer make contribution to the provident fund plan equal to specified percentage of the covered employees salary. The provident fund plan is administered by the Government of India. The company has no further obligation under the provident fund plan beyond its monthly contribution.

2) During the year of account, no provision has been made for leave encashment which will be accounted on actual payment basis.

 
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