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Accounting Policies of Future Market Networks Ltd. Company

Mar 31, 2015

1.1 Basis of preparation:

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting standards notified under relevant provisions of the Companies Act, 2013, the financial statements are prepared on accrual basis under the historical cost convention.

1.2 Use of estimates:

Preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of incomes and expenses during the year. Although these estimates are based upon management's best knowledge of current events and actions uncertainty about these assumptions and estimates could result in differences between the actual results and estimates, which are recognized in future periods.

1.3 Fixed Assets and Depreciation:

i. Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for their intended use.

ii. Depreciation on fixed assets is provided on Straight Line Method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 except for the leasehold improvements which are depreciated over the remaining expected lease term.

1.4 Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

1.5 Investments:

Current investments are stated at lower of cost and fair value computed on individual investment basis. Long term investments are stated at cost, less provision for other than temporary diminution in value.

1.6 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and can be reliably measured.

Sales are recognized when significant risk and rewards of ownership of goods have passed to the buyer which coincides with the delivery and they are recorded net of trade discounts, VAT and sales tax.

Revenue from services rendered is recognized as the service is performed based on agreements/ arrangement with concerned parties and revenue from end of the last billing to the balance sheet date is recognised as unbilled revenue.

Lease rentals income is recognized in the Statement of Profit and Loss as per the terms of agreement which is representative of the time pattern of the user's benefit.

Interest income is recognized on time proportion basis taking into account the amount outstanding and rates applicable. Dividends are recorded when the right to receive payment is established.

1.7 Retirement and Other Employee Benefits:

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered service. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

1.8 Taxation:

Tax expense includes provision for Current tax and Deferred tax.

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as at the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainity that the asset will be realized in future.

1.9 Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent liabilities are not recognized, but disclosed in the notes.

Contingent assets are neither recognized nor disclosed in the financial statements.

1.10 Leases:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Rentals are expensed with reference to lease terms and other considerations.

1.11 Foreign Currency Transactions:

Foreign currency transactions are recorded on initial recognition in the reporting currency using the exchange rate at the date of the transaction. At each Balance sheet date, foreign currency monetary items are reported using the closing rate. Exchange differences are recognized as income or expense in the period in which they arise.

1.12 Inventories:

Inventories are valued at lower of cost and net realizable value. Finished Goods and Work-in-Progress include cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average basis.


Mar 31, 2014

1.1 Basis of preparation:

Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with all material aspects of the Accounting Standards (AS) notified under the Companies Act, 1956 ("the Act") read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 1956 (to the extent applicable) and Companies Act, 2013 (to the extent notified).

1.2 Use of estimates:

Preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of incomes and expenses during the year. Although these estimates are based upon management''s best knowledge of current events and actions uncertainty about these assumptions and estimates could result in differences between the actual results and estimates, which are recognized in future periods.

1.3 Fixed Assets and Depreciation:

i. Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for their intended use.

ii. Depreciation on tangible assets is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956, except lease hold improvements which are amortized over the period of lease. Fixed Assets, individually costing less than Rs. 5000/- (Rupees Five thousand only) are fully depreciated in the year of purchase. Depreciation on the Fixed Assets added/disposed off/ discarded during the year is provided on pro-rata basis with reference to the month of addition/disposal/ discarding.

1.4 Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

1.5 Investments:

Current investments are stated at lower of cost and fair value computed on individual investment basis. Long term investments are stated at cost, less provision for other than temporary diminution in value.

1.6 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and can be reliably measured.

Revenue from services rendered is recognized as the service is performed based on agreements/ arrangement with concerned parties and revenue from end of the last billing to the balance sheet date is recognised as unbilled revenue.

Lease rentals income is recognized in the Statement of Profit and Loss as per the terms of agreement which is representative of the time pattern of the user''s benefit.

Interest income is recognized on time proportion basis taking into account the amount outstanding and rates applicable. Dividends are recorded when the right to receive payment is established.

1.7 Retirement and Other Employee Benefits

Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss for the year in which the related service is rendered.

Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered service. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.

1.8 Taxation

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as at the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainity that the asset will realized in future.

1.9 Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingent liabilities are not recognized, but disclosed in the notes.

Contingent assets are neither recognized nor disclosed in the financial statements.

1.10 Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Rentals are expensed with reference to lease terms and other considerations.


Mar 31, 2013

1.1 Basis of preparation:

These fnancial statements have been prepared in accordance with the generally accepted accounting principles in India (IGAAP) under the historical cost convention on accrual basis and comply in all material aspects with the Accounting Standards notifed under Section 211(3C) [ Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 1956.

1.2 Use of estimates:

Preparation of fnancial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the fnancial statements and reported amounts of incomes and expenses during the year. Although these estimates are based upon management''s best knowledge of current events and actions'' uncertainity about these assumptions and estimates could result in differences between the actual results and estimates, which are recognized in future periods.

1.3 Fixed assets and Depreciation:

i. Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such assets upto the date when such assets are ready for their intended use.

ii. Depreciation on tangible assets is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956, except lease hold improvements which are amortized over the period of lease. Fixed Assets, individually costing less than Rs. 5000 (Rupees Five thousand Only) are fully depreciated in the year of purchase. Depreciation on the Fixed Assets added/disposed off/ discarded during the year is provided on pro-rata basis with reference to the month of addition/disposal/ discarding.

1.4 Impairment of assets:

The carrying amount of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is charged to the Statement of Proft and Loss in the year in which an asset is identifed as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

1.5 Investments:

Current investments are stated at lower of cost and fair value computed on individual investment basis. Long term investments are stated at cost, less provision for other than temporary diminution in value.

1.6 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefts will fow to the Company and can be reliably measured.

Revenue from services rendered is recognized as the service is performed based on agreements/ arrangement with concerned parties and revenue from end of the last billing to the balance sheet date is recognised as unbilled revenue.

Lease rentals income is recognized in the Statement of Proft and Loss as per the terms of agreement which is representative of the time pattern of the user''s beneft.

Interest income is recognized on time proportion basis taking into account the amount outstanding and rates applicable. Dividends are recorded when the right to receive payment is established.

1.7 Retirement and Other Employee Benefts

Short term employee benefts are recognized as an expense at the undiscounted amount in the Statement of Proft and Loss for the year in which the related service is rendered.

Post employment and other long term employee benefts are recognized as an expense in the Statement of Proft and Loss for the year in which the employee has rendered service. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefts are charged to Statement of Proft and Loss.

1.8 Taxation

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as at the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainity that the asset will realized in future.

Minimum alternative tax (MAT) paid in accordance to the tax laws, which gives rise to future economic benefts in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax in future periods. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that the future economic beneft associated with it will fow to the Company and the asset can be measured reliably.

1.9 Provision, contingent liabilities and contingent assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outfow of resources.

Contingent liabilities are not recognized, but disclosed in the notes.

Contingent assets are neither recognized nor disclosed in the fnancial statements.

1.10 Leases

Leases where the lessor effectively retains substantially all the risks and benefts of ownership of the leased term, are classifed as operating leases. Rentals are expensed with reference to lease terms and other considerations.


Mar 31, 2012

1.1 Basis of preparation:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles in India (Indian GAAP) in compliance with the provisions of Companies Act, 1956 and the Accounting Standards as specified in the Companies (Accounting Standard) Rules 2006 (as amended) and the provisions of the Companies Act, 1956.

1.2 use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires that the management to make judgments, 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 at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities in the future periods.

1.3 Fixed Assets And Depreciation:

i. Fixed assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Borrowing costs are capitalized only if capitalization criteria are met.

ii. Depreciation on tangible assets is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956.

1.4 Impairment of Assets:

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.5 Investments:

Long term investments are stated cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary.

1.6 revenue recognition:

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

i. Revenue from services rendered is recognised as the service is performed based on agreements/ arrangement with concerned parties and revenue from end of the last billing to the balance sheet date is recognised as unbilled revenue.

ii. Interest income is recognized on time proportion basis taking into account the amount outstanding and applicable interest rates.

iii. Other items of income are accounted as and when the right to receive arises.

1.7 Employee Benefits

i. All employee benefits falling due within twelve months of rendering the services are classified as short term employee benefits. Benefits like salaries, wages, short term compensated absences etc and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service

ii. Retirement benefits in the form of Provident Fund and Employees State Insurance Scheme are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the period when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

iii. Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial period.

iv. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

v. Actuarial gains/losses are recognized immediately in the Profit and Loss Account.

1.8 provision for Current and Deferred tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act 1961. Deferred tax resulting from "Timing Difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on balance sheet date. Deferred tax assets is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

1.9 provision, Contingent Liabilities and Contingent assets:

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised, but disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

1.1 BASIS OF ACCOUNTING

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with generally accepted accounting principles (GAAP) in compliance with the provisions of Companies Act, 1956 and the Accounting Standards as specified in the Companies (Accounting Standard) Rules 2006 notified by the Central Government of India.

1.2 USE OF ESTIMATES

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 the financial statements. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

1.3 REVENUE RECOGNITION

Revenue is recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

- Revenue from services rendered is recognised as the service is performed based on agreements/ arrangement with concerned parties and revenue from end of the last billing to the balance sheet date is recognised as unbilled revenue.

- Interest income is recognized on time proportion basis taking into account the amount outstanding and applicable interest rates.

- Other items of income are accounted as and when the right to receive arises.

1.4 EMPLOYEE BENEFITS

1.4.1 All employee benefits falling due within twelve months of rendering the services are classified as short term employee benefits. Benefits like salaries, wages, short term compensated absences etc and the expected cost of bonus, ex-gratia are recognized in the period in which the employee renders the related service

1.4.2 Retirement benefits in the form of Provident Fund and Employees State Insurance Scheme are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the period when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.

1.4.3 Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial period.

1.4.4 Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method.

1.4.5 Actuarial gains/losses are recognized immediately in the Profit and Loss Account.

1.5 FIXED ASSETS

Fixed assets are stated at their cost net of tax/duty credits availed, if any, less accumulated depreciation and accumulated amortizations. Costs comprise the purchase price and any attributable costs of bringing the assets to its working condition, for its intended use.

1.6 DEPRECIATION AND AMORTISATION

Depreciation on tangible assets is provided on Straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956. Intangible Assets are amortised over their useful life not exceeding ten years.

1.7 LEASES

Assets acquired on lease where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as Operating leases. Lease rentals are charged to the Profit and Loss Account on accrual basis.

1.8 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to Profit & Loss Account in the year in which the asset is impaired and the impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount. For the purpose of assessing impairment, assets are grouped at the lowest level of cash generating units.

1.9 INVESTMENTS

Current investments are carried at lower of cost or fair value. Determination of carrying amount of such investments is done on the basis of specific identification.

1.10 BORROWING COSTS

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of the cost of such asset till such time as the asset is ready for its intended use or sale.

All other borrowing costs are recognized as an expense in the period in which they are incurred

1.11 FOREIGN CURRENCY TRANSACTIONS

Foreign currency transactions are recorded on initial recognition in the reporting currency using the exchange rate at the date of the transaction. At each Balance sheet date, foreign currency monetary items are reported using the closing rate. Exchange differences are recognized as income or expense in the period in which they arise.

1.12 TAXES ON INCOME

Current Taxes

Provision for current income tax is recognized in accordance with the provisions of Indian Income Tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions.

Deferred Taxes

Deferred tax assets resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent there is a virtual certainty that the asset will be realized in future.

1.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company recognizes a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is 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 possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

 
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