Accounting Policies of Maestros Mediline Systems Ltd. Company

Mar 31, 2014

I) Basis of Accounting

The financial statements of the Company are prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act 1956. The financial statements are prepared on an accrual basis and under the historical cost convention.

ii) Presentation and disclosure of financial statements

During the year ended 31 March 2014, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI did not have any impact on recognition and measurement principles followed for preparation of financial statements. However, it has significantly impacted the presentation and disclosures made in the financial statements.

iii) Revenue Recognition

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. The principles of revenue recognition are given below:

(a) Revenue from goods sold is recognised at the point of dispatch of goods to the customers.

(b) Sales are reflected at net of trade discounts.

(c) Revenue from the sale of software products is recognised when the sale is completed with the passing of title.

(d) Income from annual maintenance contracts and annual subscriptions is accounted for in the ratio of the period expired to the total period of contract and amount received from customers towards unexpired portion of annual maintenance contracts and annual subscriptions is shown as advances received from customers which is accounted as income in the following financial year(s).

(e) Dividend income is recognised when the right to receive dividend is established.

(f) Incomes from services rendered are booked based on agreements/arrangements with the concerned parties.

(g) Incomes from subletting of immovable properties are booked based on agreements/arrangements with the concerned parties.

iv) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles require 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.

Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

v) Fixed Assets and Depreciation

a) Fixed Assets

All fixed assets are stated at cost of acquisition/construction less depreciation. Cost includes acquisition and all identifiable expenditure incurred to bring the assets to its present condition and location.

Fixed Assets are eliminated from financial statements, either on disposal or when retired from active use. Such assets are removed from fixed asset records on disposal.

b) Depreciation

Depreciation is provided (except in case of Leasehold Land & Licensing Fees which are being amortised over the period of lease & License respectively) on straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions to assets during the period is provided on a pro-rata basis from / up to date of addition or deletion, as the case may be.

c) Capital Work -In -Progress

Capital Work-in-progress includes all the expenses and payments incurred / made for fixed assets under construction, till such assets are ready for intended use.

vi) Investments

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

vii) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of assets are capitalised as part of the cost of respective assets up to the date when such assets are ready for its intended use. Other borrowing costs are charged to the revenue in the period in which they are incurred.

viii) Inventories

Inventories are valued on the following basis:

(a) Raw material at lower of cost and net realizable value.

(b) Work-In-Progress at lower of cost and net realizable value.

(c) Finished goods at lower of cost and net realiszable value.

Cost includes direct labour and direct overheads.

ix) Retirement Benefits

(a) Contributions are made by the Company to provident fund on a monthly basis and charged to Profit & Loss Account.

(b) During the year company has not make acturial valuation for gratuity liability and leave Encashment.

x) Foreign Currency Transactions

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

(c) Any gain or losses on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account

xi) Research and Development

Revenue Expenditure on research and development is charged to Profit and Loss account in the year of incurrence except in case of development of new products undertaken where the same are deferred and expensed out over a reasonable period for which the benefit is received after commercial development of the products.

xii) Income Tax

Income Tax is accounted for in accordance with Accounting Standard 22 (AS 22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversing in one or more subsequent periods and are measured using the relevant enacted tax rates. At each Balance Sheet date, the Company reassesses unrealised deferred tax assets to the extent they have become reasonably certain or virtually certain of realisation, as the case may be.

xiii) Contingencies & Events Occurring after the Balance Sheet Date

(a) Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. These are disclosed by way of notes to the Balance Sheet.

(b) Provision is made in the accounts in respect of those contingencies which are likely to materialise into liabilities after the year-end, till the date of approval of the accounts by the Board of Directors and have material effect on the position stated in the Balance Sheet.

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Mar 31, 2013

I) Basis of Accounting

The financial statements of the Company are prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act 1956. The financial statements are prepared on an accrual basis and under the historical cost convention.

ii) Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI did not have any impact on recognition and measurement principles followed for preparation of financial statements. However, it has significantly impacted the presentation and disclosures made in the financial statements.

iii) Revenue Recognition

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. The principles of revenue recognition are given below:

(a) Revenue from goods sold is recognised at the point of dispatch of goods to the customers.

(b) Sales are reflected at net of trade discounts.

(c) Revenue from the sale of software products is recognised when the sale is completed with the passing of title.

(d) Income from annual maintenance contracts and annual subscriptions is accounted for in the ratio of the period expired to the total period of contract and amount received from customers towards unexpired portion of annual maintenance contracts and annual subscriptions is shown as advances received from customers which is accounted as income in the following financial year(s).

(e) Dividend income is recognised when the right to receive dividend is established.

(f) Incomes from services rendered are booked based on agreements/arrangements with the concerned parties.

(g) Incomes from subletting of immovable properties are booked based on agreements/arrangements with the concerned parties.

iv) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles require 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.

Differences between the actual results and estimates are recognised in the period in which the results are known / materialised.

v) Fixed Assets and Depreciation

a) Fixed Assets

All fixed assets are stated at cost of acquisition/construction less depreciation. Cost includes acquisition and all identifiable expenditure incurred to bring the assets to its present condition and location.

Fixed Assets are eliminated from financial statements, either on disposal or when retired from active use. Such assets are removed from fixed asset records on disposal.

b) Depreciation

Depreciation is provided (except in case of Leasehold Land & Licensing Fees which are being amortised over the period of lease & License respectively ) on straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions to assets during the period is provided on a pro-rata basis from / up to date of addition or deletion, as the case may be.

c) Capital Work –In –Progress

Capital Work-in–progress includes all the expenses and payments incurred / made for fixed assets under construction, till such assets are ready for intended use.

vi) Investments

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

vii) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of assets are capitalised as part of the cost of respective assets up to the date when such assets are ready for its intended use. Other borrowing costs are charged to the revenue in the period in which they are incurred.

viii) Inventories

Inventories are valued on the following basis:

(a) Raw material at lower of cost and net realizable value.

(b) Work-In-Progress at lower of cost and net realizable value.

(c) Finished goods at lower of cost and net realiszable value. Cost includes direct labour and direct overheads.

ix) Retirement Benefits

(a) Contributions are made by the Company to provident fund on a monthly basis and charged to Profit & Loss Account.

(b) Provision has been made in respect of gratuity & leave encashment on accrual basis

x) Foreign Currency Transactions

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

(b) Any gain or losses on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account

xi) Research and Development

Revenue Expenditure on research and development is charged to Profit and Loss account in the year of incurrence except in case of development of new products undertaken where the same are deferred and expensed out over a reasonable period for which the benefit is received after commercial development of the products.

xii) Income Tax

Income Tax is accounted for in accordance with Accounting Standard 22 (AS 22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversing in one or more subsequent periods and are measured using the relevant enacted tax rates. At each Balance Sheet date, the Company reassesses unrealised deferred tax assets to the extent they have become reasonably certain or virtually certain of realisation, as the case may be.

xiii) Contingencies & Events Occurring after the Balance Sheet Date

(a) Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. These are disclosed by way of notes to the Balance Sheet.

(b) Provision is made in the accounts in respect of those contingencies which are likely to materialise into liabilities after the year-end, till the date of approval of the accounts by the Board of Directors and have material effect on the position stated in the Balance Sheet.

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Mar 31, 2010

I) Basis of Accounting

The financial statements have been prepared in accordance with generally accepted accounting principles, the provisions of the Companies Act, 1956 and the applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The accounts have been prepared using historical cost convention and on the basis of a going concern.

ii) Revenue Recognition

The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. The principles of revenue recognition are given below:

(a) Revenue from goods sold is recognised at the point of dispatch of goods to the customers.

(b) Sales are reflected at net of trade discounts.

(c) Revenue from the sale of software products is recognised when the sale is completed with the passing of title.

(d) Income from annual maintenance contracts and annual subscriptions is accounted for in the ratio of the period expired to the total period of contract and amount received from customers towards unexpired portion of annual maintenance contracts and annual subscriptions is shown as advances received from customers which is accounted as income in the following financial year(s).

(e) Dividend income is recognised when the right to receive dividend is established.

(f) Incomes from services rendered are booked based on agreements/arrangements with the concerned parties. iii) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles require 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.

Differences between the actual results and estimates are recognised in the period in which the results are known / materialised. iv) Fixed Assets and Depreciation

a) Fixed Assets

All fixed assets are stated at cost of acquisition/construction less depreciation. Cost includes acquisition and all identifiable expenditure incurred to bring the assets to its present condition and location.

Fixed Assets are eliminated from financial statements, either on disposal or when retired from active use. Such assets are removed from fixed asset records on disposal.

b) Depreciation

Depreciation is provided (except in case of Leasehold Land which is being amortised over the period of lease) on straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions to assets during the period is provided on a pro-rata basis from / up to date of addition or deletion, as the case may be.

c) Capital Work -In.-Trogress

Capital Work-in-progress includes all the expenses and payments incurred / made for fixed assets under construction, till such assets are ready for intended use.

v) Investments

Long Term investments are stated at cost.

vi) Borrowing Costs

Borrowing costs attributable to the acquisition and construction of assets are capitalised as part of the cost of respective assets up to the date when such assets are ready for its intended use. Other borrowing costs are charged to the revenue in the period in which they are incurred.

vii) Inventories

Inventories are valued on the following basis:

(a) Raw material at cost.

(b) Work-in-Progress at cost.

(c) Finished goods at lower of cost and market price. Cost includes direct labour and direct overheads.

viii) Retirement Benefits

(a) Contributions are made by the Company to provident fund on a monthly basis and charged to Profit & Loss Account.

(b) Provision has been made in respect of gratuity.

(c) Provisions are made for leave encashment on accrual basis.

ix) Foreign Currency Transactions

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

(b) Any gain or losses on account of exchange difference either on settlement or on translation is recognised in the Profit & Loss Account.

x) Research and Development

Revenue Expenditure on research and development is charged to Profit and Loss account in the year of incurrence except in case of development of new products undertaken where the same are deferred and expensed out over a reasonable* period for which the benefit is received after commercial development of the products.

xi) Income Tax

Income Tax is accounted for in accordance with Accounting Standard 22 (AS 22) on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India. Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities using the applicable tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversing in one or more subsequent periods and are measured using the relevant enacted tax rates. At each Balance Sheet date, the Company reassesses unrealised deferred tax assets to the extent they have become reasonably certain or virtually certain of realisation, as the case may be.

xii) Deferred Revenue Expenditure

Deferred Revenue Expenditure includes expenditure made on research and development of medical embedded systems. xiii) Contingencies & Events Occurring after the Balance Sheet Date

(a) Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. These are disclosed by way of notes to the Balance Sheet.

(b) Provision is made in the accounts in respect of those contingencies which are likely to materialise into liabilities after the year-end, till the date of approval of the accounts by the Board of Directors and have material effect on the position stated in the Balance Sheet.