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Accounting Policies of Unistar Multimedia Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared under Historical Cost conventions and on accrual basis in accor- dance with the Generally Accepted Accounting Principles (''GAAP'') applicable in India, Companies (Accounting Standard) Rules, 2006 notified by Ministry of Company Affairs and Accounting Standards issued by the Institute of Chartered Accountants of India as applicable and relevant provisions of the Companies Act, 1956, as adopted consistently by the Company.

2. Use of Estimates

The preparation of Financial Statements in conformity with Indian GAAP requires estimates and assumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

Fixed Assets are capitalized at cost less accumulated depreciation inclusive of purchase price, duties and other non refundable taxes, direct attributable cost of bringing asset to its working condition and financing cost till commer- cial production, if any.

Projects, if any, under which assets are not ready for their intended use are shown as Capital Work-in-Progress. However no project was undertaken during the year under review.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Straight Line Method (SLM) at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Inventories

The inventories are stated at lower of cost and net realizable value, after providing for obsolescence, if any. Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing inventory to the present location and condition and valuation is inclusive of taxes and duties incurred on same.

6. Revenue Recognition

Revenue from interest is recognized on accrual basis.

7. Investment

Investments are classified as Current & Non Current Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current investments are valued at cost. However no Investment was made by the Company during the year.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c..

9. Taxation

Tax expenses for the year comprise of current tax and deferred tax. Current tax is measured as amount of tax payable in respect of taxable income for current year as per Income Tax Act 1961 after considering tax allowances and exemptions, if any. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year.

Company has incurred Loss during the year so no provision is made for Income Tax. Deffered Tax liability is created on account of timing difference on Depreciation as per Companies Act and Income Tax Act.

10. Leases Operating Lease

Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss account.

11. Impairment of Assets

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss in the year in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss".

12. Foreign Exchange Transactions

i) Company has not made any transaction in foreign currency.

13. Earnings per Share

In determining the Earnings Per share, the company considers the net profit after tax which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

14. Retirement Benefits

According to management, since the number of employees are less than mandatory limit, Company has not yet applied for registration under Provident Fund Act or ESIC Act.

15. Contingent Liabilities & Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.

Contingent Liability is disclosed for by way of note for -

a) Possible obligation which will be confirmed only by future events not wholly within the control of the Com- pany or

b) Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.


Mar 31, 2012

(1) The company follows the mercantile system of accounting and recognizes income and expenditure on the accrual basis except those with significant uncertainties. The company has complied with all the mandatory Accounting Standards (AS) issued by the ICAI, to the extent applicable. The accounts have been prepared on the historical cost convention and on the basis of going concern.

(2) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles. -

(3) Fixed Assets are stated at cost of acquisition inclusive of freight, duties, taxes and incidental expenses less accumulated depreciation.

(4) Depreciation on fixed Assets has been provided on straight line method at the rates and in the manner pre- scribed in the Income Tax Rules, 1962.

(5) Investment is stated at Cost. Market value of investment is not ascertainable.


Mar 31, 2009

(1) The company follows the mercantile system of accounting and recognizes income and expenditure on the accrual basis except those with significant uncertainties. The company has complied with all the mandatory Accounting Standards (AS) issued by the ICAI, to the extent applicable. The accounts have been prepared on the historical cost convention and on the basis of going concern.

(2) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

(3) Fixed Assets are stated at cost of acquisition inclusive of freight, duties, taxes, and incidental expenses less accumulated depreciation.

(4) a. Depreciation on fixed Assets of Mumbai Branch has been provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

b. Depreciation on fixed Assets of the Head Office has been provided ob straight line method at the rates and in the manner prescribed in the Income Tax Rules, 1962.

(5) Investment is stated at cost. Market value of investment is not ascertainable.

(6) The inventories of work in process are valued at "valued Addition Basis " and in case of the serials/ album, which are not acceptable for telecast/release, are written off wholly.

(7) Balance of Share Issue expenses are amortized during the year,

(8) Deferred tax is recognized on timing differences between taxable income and Accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
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