Lector de caracteres magnéticos

I.

(a) Basis of Preparation of Financial Statements:. The consolidated financial statements are prepared under the historical cost convention on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) in India, and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountant of India (ICAI) and the provisions of the Companies Act, 1956.

(b) Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of financial statement and the reported amounts of revenues and expenses during the period reported. Actual results could differ from these estimates. Any revision to accounting estimates is recognized in accordance with the requirements of the respective accounting standard.

II. Significant Accounting Policies (a) Basis of consolidation:

The Consolidated Financials Statements relates to Asian Business Exhibition & Conferences Limited (hereinafter referred to as “the parent company” and its 100% subsidiary, Oil Asia Publication Private Limited (hereinafter referred to as “the subsidiary company” and hereinafter collectively both the parent and subsidiary company referred to as “the companies”).

The Consolidated financials statements have been prepared on the following basis:

(i) The financial statements of the parent company and its subsidiary company have been consolidated on a line by line basis by adding together the book values of the items like assets, liabilities, income and expenses.

(ii) The excess/deficit (as on the date of acquisition) of the Company‘s investment cost over the subsidiary’s net worth is recognized as capital reserve.

(iii) The consolidated financials statements are prepared after fully eliminating intra parent – 100% subsidiary balances and transactions.

(iv) The consolidated financial statements are prepared using uniform accounting policies for like transactions and other events in similar circumstances and are presented, to the extent possible, in the same manner as the Company‘s separate financial statements.

(v) There are no differences in reporting dates within the parent and subsidiary.

(b) Revenue recognition:

Income from Exhibition & Events: The companies recognize its revenues from sale of stall space in exhibitions and events. Sale of stall space is also achieved through media insertions in publications. Both these revenues are recognized on accrual basis on completion of event. Sponsorship income: Additional revenue generated during exhibitions by prominently displaying / associating, names of certain exhibitors in signages, hoardings, banners, flags, etc. during the exhibition for promoting their brands. This income is accounted on accrual basis on completion of the event.

Income from Delegate fees: The said income is earned from delegates attending conferences / events.

Income from entry charges: For certain events entry fees has been charged from certain visitors for visiting exhibitions. It is accounted upon actual receipt of amounts at the exhibition

(c) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises purchase price, duties, levies and any other costs relating to the acquisition and installation of the assets. The gross block of fixed assets is stated at cost of acquisition, including any cost attributable to bringing the assets to their working condition for their intended use. Interest and financing charges on borrowed funds, if any, used to finance the acquisition of fixed assets, till the date the assets are ready for use, are capitalized and included in the cost of the asset.

(d) Depreciation:

Fixed Assets are depreciated under the ‘Written Down Value Method’ at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Proportionate depreciation is charged for additions / deletions during the year on the assets.

(e) Intangible Assets:

In accordance with Accounting Standard 26 on Intangible Assets, expenditure on ‘Acquisition of Trade Marks’ have been amortized over a period of ten years on pro rata basis, based on the Managements estimates of the estimated useful life of the said intangibles on a straight-line basis. (f) Investments:

In accordance with Accounting Standard 13, Long Term Investments are recorded as long term investments unless they are expected to be sold within one year.

(g) Foreign Currency Transactions:

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction. Exchange differences arising on actual realization has been adjusted to the Profit and Loss Account accordingly.

(h) Impairment of Assets :

As on the Balance sheet date, the carrying values of the tangible and intangible assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss (if any). Where there is an indication that there is a likely impairment loss for a group of assets, they shall estimate the recoverable amount of the group of assets as a whole, to determine the value of impairment.

(i) Provisions and contingencies :

Provisions are recognized when there is present legal or constructive obligation as a result of a past event and it is more likely than not that an outflow of resources will be required to settle the obligation. Provisions are measured at the management‘s best estimate of the outflow required to settle the obligations at the Balance Sheet date.

(j) Taxes on income :

Income tax expense comprises of current income tax, deferred tax and fringe benefits tax. Current taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income Tax Act, 1961, and is made at the end of each reporting period based on the tax liability after taking credit for tax allowances and exemptions.

Deferred taxes

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

Deferred tax assets are recognized only to the extent that there is reasonable certainty that the assets can be realized in the future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty, supported by convincing evidence of recognition of such assets. Deferred tax assets are reassessed for the appropriateness of their respective carrying values at each balance sheet date.

Fringe Benefits tax

Provision for fringe benefits tax has been recognized on the basis of interpretations of the relevant provisions of the Income Tax Act, 1961.

(k) Earnings per share(EPS) : Basic EPS is calculated as under:

Net Profit/(Loss) for the period attributable to equity shareholder Basic Earnings

Per Share: Weighted average number of equity shares outstanding during the period The earnings considered in ascertaining the earnings per share comprise the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of equity shares outstanding during the period, as adjusted for the issuance of any bonus shares.

(l) Cash and cash equivalents: Cash and cash equivalents for the purpose of the Statement of Cash Flow comprise cash at bank and in hand and short term fixed deposits.

(m) Miscellaneous expenditure: As per management policy followed, preliminary expenses are written off to the extent of 1/10th every year.

III. Notes To Accounts:

1. Asian Business Exhibition & Conferences Limited is a public limited company, incorporated on April 10, 2007, registered with the Registrar of Companies, Mumbai. It acquired 100% stake in Oil Asia Publication Private Limited a private limited company on April 01, 2009 and continues to hold so as on September 30, 2009.

2. Balances of certain debtors, advance from customers, advance to parties and creditors are subject to confirmation / reconciliation and subsequent adjustment, if any.

3. Current assets, loans & advances are approximately of the value stated and realizable in the ordinary course of business, and provisions for all known liabilities have been made

4. The Companies business activities fall within a single segment, viz. Income from exhibition and events and operate only in domestic market. Hence segment reporting as defined in Accounting Standard (AS-17) is not given.

5. Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

6. Previous year figures have been regrouped or re-arranged wherever considered necessary to make them comparable with those of the current year.

7. Appropriate adjustments by way of reclassification of corresponding items of assets, liabilities, income and expenses have been made wherever required, in the consolidated restated summary statements, to bring them in line with the groupings as per the restated summary statements as at and for the period ended September 30, 2009.

8. Since the companies are not into trading & manufacturing business, quantitative data is not applicable to the Group

9. Issue of Bonus Equity Shares :

For Period ended: September 30, 2009

During the period under review, the parent company issued bonus equity shares on September 26, 2009 in the ratio of 7.5 shares for every one share held by existing share holders of the face value of Rs.10 each aggregating to Rs.750 lacs by debiting the Profit & loss account.

10. Contingent Liabilities :

(Rs. in lacs)

Particulars As at six month ended

September 30 , 2009

Entertainment Tax, (Subjudice Matter) 6.28

Claims against the company not considered as debts, (Subjudice Matter) 16.91 11. The Companies are in the process of acquiring immovable property and towards this purpose, it has

paid the following amounts as mentioned below:

(Rs. in lacs) Particulars

As at six month ended September 30 , 2009

Balance payable for Immovable Property 149.08

12. Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the transaction :

(Rs. in lacs)

Particulars As on six month ended

September 30 , 2009

13. Payment to Directors :

a) Remuneration to Managing Director and Whole Time Directors is approved by the members' and is within the limits prescribed in Schedule XIII to the Companies Act, 1956.

(Rs. in lacs)

Particulars As on six month ended

September 30 , 2009

Salary and Allowances 26.00

Commission -

Perquisites -

Total 26.00

b) The Computation of net profit in accordance with Section 198 of the Companies Act, 1956 and commission payable to the Managing Director is as under:

(Rs. in lacs)

Particulars As on six month ended

September 30 , 2009

Profit before Tax as per Profit and Loss account 635.60

Add: Managerial Remuneration 26.00

Depreciation as per profit and loss account 8.48

Total 670.08

Less: Depreciation u/s 350 8.48

Net Profit for Section 198 661.6

Maximum permissible managerial remuneration to Managing Director and Whole Time Directors under Section 198 of the Companies Act, 1956 @ 10% of the profits computed above

66.16

14. Payment to Auditors :

(Rs. in lacs)

Particulars As on six month ended

September 30 , 2009

For Statutory Audit Fees * 1.30

Tax Audit Fees* Nil

Total Nil

* Excluding Service Tax

15. Deferred tax balances

The components of deferred tax liability and assets arising on account of timing differences between taxable incomes and accounting income are as follows:

(Rs. in lacs)

Particulars As at six month ended

September 30 , 2009

Opening Deferred Tax Liability / (Assets) 0.88

Liability / (Assets) due to difference in tax depreciation and book depreciation

(0.64) Liability / (Assets) due to disallowance u/s 35D Income Tax Act, 1961 0.05

ANNEXURE - V CONSOLIDATED SUMMARY STATEMENTS OF FIXED ASSETS, AS