Accounting Policies of Quantum Digital Vision (India) Ltd. Company

Mar 31, 2014

A. Basis of Accounting

All income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except those with significant uncertainties like gratuity payment, leave salary & bonus which are accounted on cash

B. Fixed Assets, intangible assets and capital work in progress

Fixed assets are stated at cost, less accumulated depreciation and impairement, if any. Direct costs are capitalised until fixed assets are ready for use. Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are records at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairement.

C. Depreciation

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act,1956.

D. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long- term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly Attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by Issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the investment Acquired, whichever is more clearly evident.

Current investments are carried in the financial statement at lower of cost and fair market value determined on an Individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

Investment property

An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the operations of the company, is classified as investment property. Investment properties are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of Bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are Deducted in arriving at the purchase price.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

E. Inventories

Finished goods & Work in progress are valued at cost or net realizable value whichever is lower and includes excise duty.

Cost for this purpose includes direct material, direct labour, excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition.

Raw Material, Stores & Spares, Packing Materials are valued at cost (computed on FIFO basis) or net realizable value whichever is lower. Cost includes purchase price, freight inward and incidental expenses.

F. Deferred Tax Assets or Liability

Deferred Tax Assets or Liabilities are recognized for the future tax consequences attributable to timing differences hat result between the profits offered for income taxes and the profits as per the financial statements of the company.

Deferred tax assets or liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on Deferred tax assets or liabilities of a change in tax rates is recognized in the period that includes the enactment date.

G. Taxation :

Current Income Tax and Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income Tax Act''1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet dat

H. Retirement Benefit :

The company is in process to formulate the retirement benefit policy for the employees.

J. Segment Reporting:

The Company operates under multi segment viz."manufacturing of plastic products and software relating to multimedia And entertainment industries, since the company didn''t recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 ''Segment Reporting'' issued by the Institute of Chartered Accountants of India is not Applicable.

K. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

L. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognized whenever the carrying amount of the asset exceeds its recoverable amount. Any such impairment loss is recognized by charging it to the profit & loss account. A previously recognised impairment loss is reversed when it no longer exists and the asset is restated to that effect.

M. Provisions & Contingent Liabilities:

A provision is recognised if, as a result f a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingment liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possbile obligation or a present obligation in respect of which the likelihood of outlow of resources is remote, no provision or disclosure is made.

J. Foreign Currency Transaction

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foregin currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foregin currecny and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of transaction. Transaction gains or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

K. Revenue Recognition

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the customer which generally coincide with dispatch of goods. The sales are inclusive of excise duty but net of sales tax and returns.

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Mar 31, 2013

A. Basis of Accounting

Ail income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except those with significant uncertainities like gratuity payment, leave salary & bonus which are accounted on cash

B. Fixed Assets, intangible assets and capital work in progress

Fixed assets are stated at cost, less accumulated depreciation and impairement, if any. Direct costs are capitalised until fixed assets are ready for use. Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are records at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairement.

C. Depreciation

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act,1956.

D. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which h investments are made, are classified as current investments. All other investments are classified as long- term

On initial recognition, all investments are measured at cost The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the investment acquired,

Current investmnts are carried in the financial statement at lower of cost and fair market value determined on an individual investment basis. Long term investments are carried at cost However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

Investment property

An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the operations of, the company, is classified as investment property. Investment properties are stated at cost, net of accumulated depreciaition and accumulated impairment losses, if any.

The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

E. Inventories

Finished goods & Work in progress are valued at cost or net realisable value whichever is lower and includes excise duty. Cost for this purpose includes direct material, direct labour, excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition. Material, Stores & Spares, Packing Materials are valued at cost (computed on FIFO basis) or net realisable value whichever is lower. Cost includes purchase price, freight inward and incidental expenses.

F. Deferred Tax Assets or Liability

Deferred Tax Assets or Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements of the company. Deferred tax assets or liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on Deferred tax assets or liabilities of a change in tax rates is

G. Taxation:

Current Income Tax arid Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income TaxAct''1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted

h. Retirement Benefit:

The company is in process to formulate the retirement benefit policy for the employees.

J. Segment Reporting:

The Company operates under multi segment viz. " manufacturing of plastic products and software relating to multimedia and entertainment industries, since the company didn''t recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 ''Segment Reporting'' issued by the Institute of Chartered

K. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during thft^

L. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. Any such impairment loss is recognised by charging it to the profit & loss account. A previously recognised impairment loss is reversed when it no longer exists and the asset is restated to that effect.

M. Provisions & Contingent Liabilities:

A provision is recognised if, as a result f a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingment liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possbile obligation or a present obligation in respect of which the likelihood of outlow of resources is remote, no provision or disclosure is made.

J. Foreign Currency Transaction

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance it date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non- monetary assets and non-monetary liabilities denominated in a foregin currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a foregin currecny and measured at historical cost are translated at the

Revenue, expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect on the date of transaction. Transaction gains or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

K. Revenue Recognition

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the customer which generally coincide with dispatch of goods. The sales are inclusive of excise duty but net of sales tax and returns.

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Mar 31, 2012

A. Change in accounting policy

Presentation and disclosure of financial statement 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 does not impact recognition and measurement principles followed for preparation of financial statements. However' it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

B. Basis of Accounting

All income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except those with significant uncertainities like gratuity payment' leave salary & bonus which are accounted on cash basis.

C. Fixed Assets' intangible assets and capital work in progress

Fixed assets are stated at cost' less accumulated depreciation and impairement' if any. Direct costs are capitalised until fixed assets are ready for use. Capital work in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are records at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortisation and impairement.

D. Depreciation

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act' 1956.

E. Investments

Investments' which are readily realizable and intended to be held for not more than one year from the date on which such inv-estments are made' are classified as current investments. All other investments are classified as long- term investments. On initial recognition' all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage' fees and duties.

If an investment is acquired' or partly acquired' by the issue of shares or other securities' the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset' the acquisition is determined by reference to the fair value of the investment acquired' whichever is more clearly evident.

Current investmets are carried in the financial statement at lower of cost and fair market value determined on an individual investment basis. Long term investments are carried at cost. However' provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment' the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

Investment property

An investment in Ian d or buildings' which is not intended to be occupied substantially for use by' or in the operations of' the company' is classified as investment property. Investment properties are stated at cost' net of accumulated depreciaition and accumulated impairment losses' if any.

The cost comprises purchase price' borrowing costs if capitalLation criteria are met and directly attributable cost of bringing the investment property to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

On disposal of an investment' the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

F. Inventories

Finished goods & Work in progress are valued at cost or net realisable value whichever is lower and includes excise duty. Cost for this purpose includes direct material' direct labour' excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition.

Raw Material' Stores & Spares' Packing Materials are valued at cost (computed on FIFO basis) or net realisable value whichever is lower. Cost includes purchase price' freight inward and incidental expenses.

G. Deferred Tax Assets or Liability

Deferred Tax Assets or Liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements of the company.

Deferred tax assets or liabilities are measured using the tax rates and the tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on Deferred tax assets or liabilities of a change in tax rates is recognized in the period that includes the enactment date.

H Taxation:

Current Income Tax and Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income Tax Aot'1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax as sets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted ty the balance sheet dat

I. Retirement Benefit:

The company is in-process to formulate the retirement benefit policy for the employees.

J. Segment Reporting:

The Company operates under multi segment viz." manufacturing of plastic products and software relating to multimedia and entertainment industries' since the company didn't recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 'Segment Reporting' issued by the Institute of Chartered Accountants of India is not Applicable.

K. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

L. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on intemaVextemal factors.. An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. Any such impairment loss is recognised by charging it to the profit & loss account. A previously recognised impairment loss is reversed when it no longer exists and the asset is restated to that effect.

M. Provisions & Contingent Liabilities:

A. provision is recognised if' as a result f a past event' the Company has a present legal obligation that can be estimated reliably' and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can he made' disclosure is made as contingent liability. A disclosure for a contingment liability is also made when there is a possible obligation or a present obligation that may' but probably will not' require an outflow of resources. Where .there is a. possbile obligation or a present obligation in respect of which the likelihood of outlow of resources is remote' no provision or disclosure is made.

J. Foreign Currency Transaction

Foreign-currency denominated monetary assets and liabilities are translated at exchange rates in effect at the Balance Sheet date. The gains or losses resulting from such translations are included in the Statement of profit and loss. Non-monetary assets and non-monetary liabilities denominated in a foregin currency and measured at fair value are translated at the exchange rate prevalent at the date when the fair value was determined. Non-monetary assets and non-monetary liabilities denominated in a fc regin currecny and measured at historical cost are translated at the exchange rate prevalent at the date of transaction.

Revenue' expense and cash-flow items denominated in foreign currencies are translated using the exchange rate in effect en the date of transaction. Transaction gains or losses realised upon settlement of foreign currency transactions are included in determining net profit for the period in which the transaction is settled.

K Revenue Recognition

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the customer which generally coincide with dispatch of goods. The sales are inclusive of excise duty but net of sales tax and returns.

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Mar 31, 2010

1. Basis of Preparation : The financial statements are prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles in India, the Accounting Standards issued by The Institute of Chartered Accountants of India and the provisions of the Companies Act,1956.

2. Fixed Assets :

Fixed assets are stated at cost of acquisition or construction, less accumulated depreciation. Cost includes all incidental expenses incurred to bring the assets to its present location and condition, other pre operative expenses. Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such asset. A qualifying asset is one which takes substantial period of time to get ready for intended use. All other borrowing cost are charged to revenue

3. Depreciation :

Depreciation is provided on a straight line method at the rates prescribed in Schedule XIV to the Companies Act,1956.

4. Investments :

Long term investment are carried at cost less provision for permanent diminution in value of such investments. Current investments carried at lower of cost and fair value.

5. Foreign Exchange Transactions :

Foreign currency transactions are initially recognized at the spot rate on the date of transaction. Monetary assets and liabilities relating to foreign currency transaction remaining unsettled at the end of the year are translated at year-end rates. The difference in translation and realized gains and losses on foreign exchange transaction are recognized in the Profit and Loss Account except in cases where they relate to acquisition of fixed assets, in which case they are adjusted to carrying cost of such assets.

6. Revenue Recognition ;

Revenue from sales are recognised when significant risk and rewards of ownership are transferred to the custorner generally coincide with dispatched foods.. The sales are inclusive exese of sales tax and returns.

7. Inventories (As valued & Certified by the management):

Finished goods & Work in progress are valued at cost or net realisable value whichever is lower and includes excise duty. Cost for this purpose includes direct material, direct labour, excise duty and appropriate portion of overheads for bringing the inventory to its present location and condition.

Raw Material, Stores & Spares, Packing Materials are valued at cost (computed on FIFO basis) or net realisable value whichever is lower. Cost includes purchase price, freight inward and incidental expenses.

8. Taxation :

Current Income Tax and Fringe Benefit Tax expenses are determined in accordance with the provisions of the Income Tax Act1961.

Deferred tax expenses or benefit is recognized on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

9. Retirement Benefit :

The company is in process to formulate the retirement benefit policy for the employees.

10. Segment Reporting:

The Company operates under multi segment viz. manufacturing of plastic products and software relating to multimedia and entertainment industries, since the company didnt recognize any revenue from any segment during the year hence the disclosure requirement of AS-17 Segment Reporting issued by the Institute of Chartered Accountants of India is not Applicable.

11. Earning Per Share:

The company reports basic and diluted earning per share in accordance with AS-20 "Earning Per Share". Basic earning per share have been computed by dividing net profit after tax by weighted average number of shares outstanding for the year. Diluted earning per share have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

12. Impairment of Assets:

The carrying amount of assets are reviewed at each balance sheet date for indication of any impairment based on internal/external factors. An impairment loss is recognised whenever the carrying amount of the asset exceeds its recoverable amount. Any such employment loss is recognised by Charging to the profit & loss account. A Previously reconesed impairment loss is reversed when it no longer exists and the asset is restafed & to that effect.

13. Provisions & Contingent Liabilities:

A provision arising out of present obligation is recognised when it is probable that an outflow of resources wilf be required to settle the obligation and the amount can be reasonably estimated. Whenever there is a possible obligation that may, but probably will not require an outflow of resources, the same is disclosed by way of contingent liability under "Notes to Accounts"