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Accounting Policies of Maximaa Systems Ltd. Company

Mar 31, 2015

1 General :

These financial statements have been prepared in accordance with the generally accepted accounting principles in india under the historical cost convention on accrual basis. Pursuant to circular 15/2013dated 13-9-2013 read with circular 08/2014 dated 4-4-2014, till the stan- dards of Accounting or any addendum there to are prescribed by Central Government in con- sultation and recommendation of the National Financial Reporting Authority, the existing Ac- counting Standards notified under the Companies Act, 1956 shall continue to apply.Consequently, these financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under section 211(3C) ( Companies Account- ing Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act,1956.

All the asstes and liabilities have been classified as current and non current as per the Company's normal aperating cycle and other criteria set out in Schedule VI of the Companies Act,1956. Based on the nature of products and the time between the acqusition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle to be 12 months for purpose of current - non current clasification of assets and liabilities.

2 Recognisation of Income and Expenditure :

i Revenues / Incomes and Costs / Expenditure are generally accounted on accrual, as they are earned or incurred.

ii Sale of Goods is recognised on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

3 Use of Estimates:

The preparation of financial statements in confirmity with generally accepted accounting prin- ciples requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

4 Fixed Assets :

i Land Free Hold - At Cost

ii Other Fixed Assets - At Cost less Depreciation

'Cost' for the aforesaid purpose comprises of its purchase price and attributable cost for bringing the asset to its working condition for its intended use.

5 Depreciation :

i Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the provisions of Company Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956, as revised by GSR No.756(E) Dated 10.12.93 by the Central Government, except in case of following Assets, which are amortised over the period as estimated by the management, as under. :-

Nature of Assets Period of Amortisation

Goodwill ( Generated in Amalgamation) 5 years

Patents 15 years

Trademark, Formulation etc 15 years

ii Depreciation on Fixed Assets acquired during the year is provided from the month in which assets is put to use.

iii Plant & Machinery acquired during the year but not put to use are shown as Capital Work- In-Progress and no depreciation is claimed thereon.

iv Depreciation on Fixed Assets dispossed off during the period under consideration is pro- vided up to the month of dispossal.

6 Investments :

Non- current investments are stated at cost.

7 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 are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

8 Impairment of Assets

Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recovereble amount. Recoverable amount is the higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

9 Inventories

Items of inventory are valued at Cost or Net Reaslizable Value, whichever is lower. Cost is determined on the following basis. :-

Raw Materials, Stores and Spares FIFO

Work In Process and Finished Goods At material cost plus appropriate value of overheads

Trading Goods FIFO

10 Retirement Benefitis to Employees

i The Company contributes towards Provident Fund and Family Pension Fund, which are defined contribution schemes. Liability in respect thereof is determind on the basis of contribution as required under the statutes / rules.

ii Gratituty laibility as on 31-03-2015 has been recognised in Balance Sheet. No provision is required to be made for leave encashment.

11 Foreign Currency Transactions

T ransactions in foregion currency are recorded at the original rates of exchange in force at the time transactions are effected. At the year-end, monetary items denominated in foreign cur- rency and exchange contracts are reported using closing rates of exchange. Exchange differ- ences arrising thereon and on realization of foreign exchange are accounted in the relevant year, as income or expense.

12 Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted / substan- tively enacted rates. Current tax represents the amount of income-tax payable in respect of the taxable income for the reporting period. Deffered tax represents the effect of cuttrnt year timing differences 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 are recognised only to the extent that there is a reasonable certainty that sufficient future Taxable Income will be available against which such Deferred tax Assets can be realised. In absence of reasonable certainty, Deferred Tax Asset worked out as under has not been recognised. :-

Deferred Tax Liabilities 31-03-2014 31-03-2013

Related to Fixed Assets 3,066,693 4,165,668

Deferred Tax Assets

Related to Disallowance under income tax Act, 1961 1,537,192 265,479

Related to Carried forward Losses & Unabsorbed Depreciation 23,563,155 22,626,622

Net Deferred Tax Assets 22,033,654 18,726,433

13 The accounts of customers / suppliers are under reconciliation / confirmation and the same have been taken as per balances appearing in the books. Any difference arising on account of such reconciliation, which are not likely to be material , will be accounted for as and when these reconciliation are completed.

14 Previous year's figures have been regrouped / reclassified wherever considered necessary.




Mar 31, 2014

1 General :

These financial statements have been prepared in accordance with the generally accepted accounting principles in india under the historical cost convention on accrual basis. Pursuant to circular 15/2013dated 13-9-2013 read with circular 08/2014 dated 4-4-2014, till the standards of Accounting or any addendum there to are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.Consequently, these financial statements have been prepared to comply in all material aspects with the Accounting Standards notified under section 211(3C) ( Companies Accounting Standards) Rules, 2006, as amended) and other relevant provisions of the Companies Act,1956.

All the asstes and liabilities have been classified as current and non current as per the Company''s normal aperating cycle and other criteria set out in Schedule VI of the Companies Act,1956. Based on the nature of products and the time between the acqusition of assets for processing and their realisation in cash and cash equivalent, the Company has ascertained its operating cycle to be 12 months for purpose of current - non current clasification of assets and liabilities.

2 Recognisation of Income and Expenditure:

i Revenues / Incomes and Costs / Expenditure are generally accounted on accrual, as they are earned or incurred.

ii Sale of Goods is recognised on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

3 Use of Estimates:

The preparation of financial statements in confirmity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

4 Fixed Assets :

i Land Free Hold - At Cost

ii Other Fixed Assets - At Cost less Depreciation

''Cost'' for the aforesaid purpose comprises of its purchase price and attributable cost for bringing the asset to its working condition for its intended use.

5 Depreciation :

i Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the provisions of Company Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956, as revised by GSR No.756(E) Dated 10.12.93 by the Central Government, except in case of following Assets, which are amortised over the period as estimated by the management, as under. :-

Nature of Assets Period of

Goodwill ( Generated in Amalgamation) 5 years

Patents 15 years

Trademark, Formulation etc 15 years

ii Depreciation on Fixed Assets acquired during the year is provided from the month in which assets is put to use.

iii Plant & Machinery acquired during the year but not put to use are shown as Capital Work-In-Progress and no depreciation is claimed thereon.

iv Depreciation on Fixed Assets dispossed off during the period under consideration is provided up to the month of dispossal.

6 Investments:

Non- current investments are stated at cost.

7 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 are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

8 Impairment of Assets

Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recovereble amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

9 Inventories

Items of inventory are valued at Cost or Net Reaslizable Value, whichever is lower. Cost is determined on the following basis. :-

Raw Materials, Stores and Spares F IF O

Work In Process and At material cost plus appropriate value of overheads

Trading Goods FIFO

10 Retirement Benefitis to Employees

i The Company contributes towards Provident Fund and Family Pension Fund, which are defined contribution schemes. Liability in respect thereof is determind on the basis of contribution as required under the statutes / rules.

ii Gratituty laibility as on 31-03-2014 has been recognised in Balance Sheet. No provision is required to be made for leave encashment.

11 Foreign Currency Transactions

Transactions in foregion currency are recorded at the original rates of exchange in force at the time transactions are effected. At the year-end, monetary items denominated in foreign currency and exchange contracts are reported using closing rates of exchange. Exchange differences arrising thereon and on realization of foreign exchange are accounted in the relevant year, as income or expense.

12 Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted / substantively enacted rates. Current tax represents the amount of income-tax payable in respect of the taxable income for the reporting period. Deffered tax represents the effect of cuttrnt year timing differences 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 are recognised only to the extent that there is a reasonable certainty that sufficient future Taxable Income will be available against which such Deferred tax Assets can be realised. In absence of reasonable certainty, Deferred Tax Asset worked out as under has not been recognised. :-

13 The accounts of customers / suppliers are under reconciliation / confirmation and the same have been taken as per balances appearing in the books. Any difference arising on account of such reconciliation, which are not likely to be material , will be accounted for as and when these reconciliation are completed.

14 Previous year''s figures have been regrouped / reclassified wherever considered necessary.


Mar 31, 2013

1 General :

i The accounts are prepared on historic cost basis.

ii The company follows accrual system of accounting as requires under section 209(3)(b) of the Companies Act 1956 generally.

2 Recognisation of Income and Expenditure:

i Revenues / Incomes and Costs / Expenditure are generally accounted on accrual, as they are earned or incurred.

ii Sale of Goods is recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

3 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

4 Basis of Valuation of Fixed Assets :

i Land Free Hold - At Cost

ii Other Fixed Assets - At Cost less Depreciation ''Cost'' for the aforesaid purpose comprises of its purchase price and attributable cost for bringing the asset to its working condition for its intended use.

5 Depreciation :

i Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the provisions of Company Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956, as revised by GSR No.756(E) Dated 10.12.93 by the Central Government, except in case of following Assets, which are amortized over the period as estimated by the management, as under. :-

Nature of Assets Period of Amortization

Goodwill ( Generated in Amalgamation) 5 years

Patents 15 years

Trademark, Formulation etc 15 years

ii Depreciation on Fixed Assets acquired during the year is provided from the month in which assets is put to use.

iii Plant & Machinery acquired during the year but not put to use are shown as Capital Work-In-Progress and no depreciation is claimed thereon.

iv Depreciation on Fixed Assets disposed off during the period under consideration is provided up to the month of disposal.

6 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 are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

7 Impairment of Assets

Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recoverable amount.

Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

12 The accounts of customers / suppliers are under reconciliation / confirmation and the same have been taken as per balances appearing in the books. Any difference arising on account of such reconciliation, which are not likely to be material , will be accounted for as and when these reconciliation are completed.

13 Previous year''s figures have been regrouped / reclassified wherever considered necessary.

9 Retirement Benefits to Employees

i The Company contributes towards Provident Fund and Family Pension Fund, which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution as required under the statutes / rules.

ii Gratitude liability as on 31-03-2013 has been recognized in Balance Sheet. No provision is required to be made for leave encashment.

10 Foreign Currency Transactions

Transactions in foregoing currency are recorded at the original rates of exchange in force at the time transactions are affected. At the year-end, monetary items denominated in foreign currency and exchange contracts are reported using closing rates of exchange. Exchange differences arising thereon and on realization of foreign exchange are accounted in the relevant year, as income or expense.

11 Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted / substantively enacted rates. Current tax represents the amount of income-tax payable in respect of the taxable income for the reporting period. Differed tax represents the effect of cutting year timing differences 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 are recognized only to the extent that there is a reasonable certainty that sufficient future Taxable Income will be available against which such Deferred tax Assets can be realized. In absence of reasonable certainty, Deferred Tax Asset worked out as under has not been recognized.


Mar 31, 2012

1. General :

i. The accounts are prepared on historic cost basis.

ii. The company follows accrual system of accounting as requires under section 209(3)[b) of the Companies Act 1956 generally.

2. Recolonisation of Income and Expenditure:

i. Revenues/Incomes and Costs/Expenditure are generally accounted on accrual, as they are earned or incurred.

ii. Sale of Goods is recognised on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods.

3. Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates end assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/materialised.

4. Basis of Valuation of Fixed Assets :

i. Land Free Hold - At Cost

ii. Other Fixed Assets - At Cast less Depreciation

Cost for the aforesaid purpose comprises of its purchase price and attributable cost for bringing the asset to its working condition for its intended use.

5. Depreciation :

i. Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the provisions of Company Act, 1956 at the rates specified in Schedule XIV of the Companies Act 1956. as revised by GSR No. 756(E) Dated 10,12.93 by the Central Government except in case of following Assets, which are amortised over the period as estimated by the management, as under:-

Nature of Assets Period of Amortisation

Goodwill (Generated In Amalgamation) 5 years

Patents 15 years

Trade Mark, Formulation etc 15 years

ii. Depreciation on Fixed Assets acquired during the year is provided from the month in which assets is put to use.

iii. Plants Machinery acquired during the year but not put to use are shown as Capital Work In Progress and no depreciation is claimed thereon.

iv Depreciation on Fixed Assets disposed off during the period under consideration is provided up to the month of disposal.

6. 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 hut are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements,

7. Impairment of Assets

Impairment loss is provided to the extent the carrying amount(s) of assets exceed their recoverable amount Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash-flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

8. Inventories

Items of inventory are valued at Cost or Net Realisable Value, whichever is lower. Cost is determined on the following basis:-

Raw Materials, Stores and Spares FIFO

Work in Process and Finished Goods At material cost plus appropriate value of overheads

Trading Goods FIFO

9. Retirement Benefit's to Employees

i. The Company contributes to wards Provident Fund and Family Pension Fund, which are defined contribution schemes. Liability in respect thereof is determined on the basis of contribution as required under the statutes/rules.

ii. Gratuity liability as on 31-03-2012 has been recognised in Balance Sheet. No provision is required to be made for leave encashment

10. Foreign Currency Transactions

Transactions in foreign currency are recorded at the original rates of exchange in force at the time transactions are affected. At the year-end, monetary items denominated In foreign currency and exchange contracts are reported using closing rates of exchange. Exchange differences arising thereon and on realization of foreign exchange are accounted in the relevant year, as income or expense.

11. Taxes on Income

Tax expense comprises of both current and deferred tax at the applicable enacted/substantively enacted rates. Current tax represents the amount of income-tax payable in respect of the taxable income for the reporting period. Defferred tax represents the effect of current year timing differences 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 are recognised only to the extent that there is a reasonable certainty that sufficient future Taxable Income will be available against which such Deferred tax Assets can be realised. In absence of reasonable certainty, Deferred Tax Asset worked out as under has not been recognised.


Mar 31, 2010

A) GENERAL:

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B) BASIS OF VALUATION OF FIXED ASSETS:

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c) DEPRECIATION:

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D) Provision, Contingent Liabilitlea and Contingent Assets:

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E) Impaiment of Assets

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F) AMORTISATION OF PRELIMINARY SHARE ISSUE AND DEFERNED REVENUE EXPENSES:

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G) INVESTMENTS: (Charecter not visible)

H) INVENTORIES:

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