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Accounting Policies of Maars Software International Ltd. Company

Mar 31, 2011

1. METHOD OF ACCOUNTING:

The accounts are prepared in accordance with the applicable mandatory accounting standards (AS) issued by the Institute of Chartered Accountants of India. Generally accrual basis is adopted in the preparation of accounts. Except AS-11 issued by ICAI.

REVENUE RECOGNITION

Revenue from Consultancy and Software Development in recognized as per the terms of specific contracts and based on software development and invoiced to the clients.

FIXED ASSETS

Fixed Assets have been valued at cost less depreciation. Cost includes other attributable expenses relatable to the cost of acquisition.

DEPRECIATION

Depreciation of Fixed Assets, has been provided on Straight Line Method at the rate prescribed in the Companies Act, 1956. As per management opinion company has not provided any deprecation of Building and License Fee included under Intangible Assets. And company not provided deprecations on IPR for films rights and company provide deprecation in the year of release of the films.

INVESTMENTS

Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments.

Company has not making any provision for dilatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same.

BORROWING COSTS

Borrowing costs, which are not directly attributable to acquisition of the assets, are recognized as expenses under interest and finance charges.

RETIREMENT BENEFITS TO THE EMPLOYEES

The Company's Liability in the form of Provident Fund is fully charged to Revenue Expenditure. Liability towards Gratuity has been provided as per managements calculation base on the service contracts. Provision has been made for Leave Encashment on actual basis.

FOREIGN CURRENCY TRANSLATION

Foreign currency transactions are recorded at exchange rates prevailing on the date of respective transactions.

Current assets and current liabilities in foreign currencies existing at balance sheet date are translated at year-end rates.

Foreign currency translation differences related to acquisition of imported fixed assets, if any are adjusted in the carrying amount of the related fixed assets. All other foreign currency gains and losses are recognized in the profit and loss account. Conversion of Maars software FZLLC are as under.

Fixed Assets and capital and partner account are converted at historical rate that is 1AED = Rs 12.54. x All Currents assets like loans and advances, creditors, debtors, inventory are converted at closing rate as on 31.3.2011 that is 1AED = Rs 12.33 Items of profit and loss account and all the expenses and revenue are converted at Average rate as on 31.3.2011 that is 1AED = Rs 12.327.


Jun 30, 2010

1. METHOD OF ACCOUNTING:

The accounts are prepared in accordance with the applicable mandatory accounting standards (A.S.) issued by the Institute of Chartered Accountants of India. Generally accrual basis is adopted in the preparation of accounts. Except AS-11 issued by ICAI.

2. SIGNIFICANT ACCOUNTING POLICIES

REVENUE RECOGNITION:

Revenue from Consultancy and Software Development in recognized as per the terms of specific contracts and based on software development and invoiced to the clients.

FIXED ASSETS:

Fixed Assets have been valued at cost less depreciation. Cost includes other attributable expenses relatable to the cost of acquisition.

DEPRECIATION:

Depreciation of Fixed Assets, except on Computers, has been provided on Straight Line Method at the rate prescribed in the Companies Act, 1956. Computers are depreciated under Straight Line Method in 4 years time to reflect their true life. License Fee included under Intangible Asset is written off over its life period. And company not provided deprecations on IPR – for films rights and company provide deprecation in the year of release of the films.

INVESTMENTS:

Company valued its investments at Cost at the end of the year but company not diffracted his investments into long term investments to current investments.

Company has not making any provision for dimluatation in the value of shares and securities. And as per management opinion there is no requirements to make any provisions for the same.

BORROWING COSTS:

Borrowing costs, which are not directly attributable to acquisition of the assets, are recognized as expenses under interest and finance charges.

RETIREMENT BENEFITS TO THE EMPLOYEES:

The Companys Liability in the form of Provident Fund is fully charged to Revenue Expenditure. Liability towards Gratuity have been provided as per managements calculation base on the service contracts. Provision has been made for Leave Encashment on actual basis.

FOREIGN CURRENCY TRANSLATION:

Foreign currency transactions are recorded at exchange rates prevailing on the date of respective transactions.

Current assets and current liabilities in foreign currencies existing at balance sheet date are translated at year-end rates.

Foreign currency translation differences related to acquisition of imported fixed assets, if any are adjusted in the carrying amount of the related fixed assets. All other foreign currency gains and losses are recognized in the profit and loss account.

 
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