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Accounting Policies of Gemmia Oiltech (India) Ltd. Company

Mar 31, 2014

1.1 Basis of Accounting

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use

1.2 Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affects the reported amount of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results differ from Estimates. Adjustment as a result of difference between actual and estimates are made prospectively in the period in which results are known /dematerialized.

1.3 Fixed Assets

Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

Brand Equity is stated at the cost of acquisition

1.4 Depreciation

Depreciation is recognised only in respect of Fixed Assets put to use.

Individual assets acquired for less than Rs. 5000/- are entirely depreciated in the year of acquisition.

Depreciation on other Fixed Assets have been provided on written down value on a pro rata monthly basis at the rates specified in Schedule XIV of the companies Act, 1956.

1.3 Inventory

The Company does not carry any inventory as on the balance sheet date.

1.4 Revenue Recognition

Revenue is primarily derived from Consultancy on oil field.

1.5 Foreign Currency transactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of transaction.

Monetary items denominated in foreign currencies at the yearend are restated at year end rates.

Non monetary foreign currency items are carried at cost

Profit or loss arising on account of exchange differences is recognised in the profit and loss account

1.6 Retirement Benefits

Retirement benefits in the form of provident fund is a defined contribution scheme, is charged to profit and loss account of the year, when the contribution to the respective fund accrues.

Gratuity and Leave Encashment benefits are charged in the profit and loss account on the basis of actuarial valuation.

1.7 Borrowing Cost

Borrowing costs that are directly 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. All other borrowing costs are recognized as an expense in the period in which they are incurred.

1.8 Lease

Operating lease payments are recognized as expenses in the profit and loss account as per the terms of the agreements which are representative of the time pattern of the users'' benefit.

1.9 Deferred tax

Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.

1.10 Interim Financial Reporting

The company has adopted same accounting policies in preparation of interim financial statements as they followed in preparation of annual financial statements.

1.11 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.


Mar 31, 2011

1. Basis of Accounting

i) The Financial Statements have been prepared under the historical cost convention on a going concern basis and in accordance with the requirements of the Companies Act. 1956 and applicable accounting standards.

ii) The Company follows a mercantile system of accounting and recognizes income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affects the reported amount of assets and liabilities. the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results differ from Estimates. Adjustment as a result of difference between actual and estimates are made prospectively in the period in which results are known /dematerialized.

3. Fixed Assets

i) Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

ii) Brand Equity is stated at the cost of acquisition

4. Depreciation

i) Depreciation is recognised only in respect of Fixed Assets put to use.

ii) Individual assets acquired for less than Rs.5000/- are entirely depreciated in the year of acquisition.

iii) Depreciation on other Fixed Assets have been provided on written down value on a pro rata monthly basis at the rates specified in Schedule XIV of the companies Act. 1956.

5. Inventory

The Company does not carry any inventory as on the balance sheet date.

6. Revenue Recognition

i) Revenue is derived from the sale of film rights recognised upon transfer of such film rights.

7. Retirement Benefits

Retirement benefits in the form of provident fund is a defined contribution scheme, is charged to profit and loss account of the year, when the contribution to the respective fund accrues.

Gratuity and Leave Encashment benefits are charged in the profit and loss account on the basis of actuarial valuation.

8. Borrowing Cost

Borrowing costs that are directly 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. All other borrowing costs are recognized as an expense in the period in which they are incurred.

9. Lease

Operating lease payments are recognized as expenses in the profit and loss account as per the terms of the agreements which are representative of the time pattern of the users' benefit.

10. Consolidated Financial Statements

The company is holding 100% shares in Pix Aalaya Studios Pvt. Ltd. and Tamil Box Office (India) Pvt. Ltd. The management has prepared consolidated financial statements of the company and its subsidiary upto March 31, 2011.

11. Deferred tax

i) Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

ii) Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.

12. Interim Financial Reporting

The company has adopted same accounting policies in preparation of interim financial statements as they followed in preparation of annual financial statements.

13. 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.


Mar 31, 2010

1. Basis of Accounting

i) The Financial Statements have been prepared under the historical cost convention on a going concern basis and in accordance with the requirements of the Companies Act, 1956 and applicable accounting standards.

ii) The Company follows a mercantile system of accounting and recognizes income and expenditure on accrual basis.

2. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affects the reported amount of assets and liabilities, the disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reported period. Actual results differ from Estimates. Adjustment as a result of difference between actual and estimates are made prospectively in the period in which results are known /dematerialized.

3. Fixed Assets

i) Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

ii) Brand Equity is stated at the cost of acquisition

4. Depreciation

i) Depreciation is recognised only in respect of Fixed Assets put to use.

ii) Individual assets acquired for less than Rs 5000/- are entirely depreciated in the year of acquisition.

iii) Depreciation on other Fixed Assets have been provided on written down value on a pro rata monthly basis at the rates specified in Schedule XIV of the companies Act, 1956.

5. Inventory

The Company does not carry any inventory as on the balance sheet date.

6. Revenue Recognition

i) Revenue from sale of stock & shares are recognised at the time of transfer of stock & shares

ii) Revenue from consultancy services is recognised on accrual basis upon completion of services.

iii) Revenue from software development is recognised on accrual basis at the time of delivery of services.

iv) Finance charges on Hire Purchase Contracts have not been recognized during the year in the absence of their virtual certainity.

Expenditure has been accounted normally on accrual basis. However, the Company has not provided for interest on cash credit accounts with banks in view of settlement of secured loans, on a "One Time Settlement" basis.

7. Foreign Currency transactions

a) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of transaction.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

c) Non monetary foreign currency items are carried at cost

d) Profit or loss arising on account of exchange differences is recognised in the profit and loss account

8. Retirement Benefits

Retirement benefits in the form of provident fund is a defined contribution scheme, is charged to profit and loss account of the year, when the contribution to the respective fund accrues.

Gratuity and Leave Encashment benefits are charged in the profit and loss account on the basis of actuarial valuation.

9. Lease

Operating lease payments are recognized as expenses in the profit and loss account as per the terms of the agreements which are representative of the time pattern of the users benefit.

10. Consolidated Financial Statements

The company has acquired 100% shares in Pix Aalaya Studios Pvt Ltd and Tamil Box Office Pvt Ltd with effect from December 30, 2009. The management has prepared consolidated financial statements of the company and its subsidiary upta March 31, 2010.

11. Deferred tax

i) Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

ii) Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainity of realization of assets.

12. Interim Financial Reporting

The company has adopted same accounting policies in preparation of interim financial statements as they followed in preparation of annual financial statements.

13. 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.


Mar 31, 2009

1. Basis of Accounting

i) The Financial Statements have been prepared under the historical cost convention on a going concern basis and in accordance with the requirements of the Companies Act, 1956 and applicable accounting standards.

ii) The Company follows a mercantile system of accounting and recognises income and expenditure on accrual basis.

2. Fixed Assets

Fixed assets are stated at their original cost of acquisition including taxes, freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

3. Depreciation

i) Depreciation is recognised only in respect of Fixed Assets put to use.

ii) Depreciation on other Fixed Assets have been provided on written down value on a pro rata monthly basis at the rates specified in Schedule XIV of the Companies Act, 1956.

4. Revenue Recognition

i) Revenue from sale of stock & shares are recognised at the time of transfer of stock & shares.

ii) Revenue from consultancy services is recognised on accrual basis upon completion of services.

iii) Revenue from software development is recognised on accrual basis at the time of delivery of services.

iv) Finance charges on Hire Purchase Contracts have not been recognized during the year in the absence of their virtual certainty.

6. Deferred Tax

i) Deferred tax represents the effect of timing difference between taxable income and accounting income for the reporting period that originate in one period and are capable of reversal in one or more subsequent periods.

ii) Deferred tax assets is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of assets.

 
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