Accounting Policies of Sterling Webnet Ltd. Company

Mar 31, 2013

1. Basis of Preparation of Financial Statement: The Financial Statements have been prepared to comply with all material aspects related to applicability of accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on the basis of a going concern. The Company follows mercantile system of accounting and recognized income and expenditure on accrual basis.

2. Revenue Recognition: The Company''s income consists of income from computer hardware & software business and trading in shares business. The Income from sale of computer hardware is recognized on the basis of transfer of significant risks and rewards to the customer who takes place on the dispatch of the material from the premises of the Company. The income from trading in shares is recognized on the basis of contract note of share broker.

3. Fixed Assets and Depreciation:

1) Fixed Assets are stated at cost of acquisition and other related expenses less accumulated depreciation.

2) Depreciation on assets is provided on Written down Value Method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. The depreciation on addition and disposal has been charged on prorate basis, if applicable.

4. Investments: Investment is stated at cost.

5. Valuation of Inventory: Closing Stock of shares and computer hardware are valued at cost, determined on weighted average basis, or net realizable value, whichever is less.

6. Retirement Benefit: The provisions of the Provident Fund and Family Pension Fund are not applicable to the Company during the year. The provision for the Gratuity has also not been made as no employee has completed the specified period of service.

7. Earning per Share: The basic earning per share is computed by dividing the net profit / (loss) attributable to the equity share holders for the year by the weighted average number of equity shares during the reporting year.

8. Taxes on Income: Current Tax on Income is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized subject to the consideration of prudence, 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 period.

9. Impairment of Assets: The Company identifies impairable assets at every Balance Sheet for the purpose of arriving at impairable loss there on, being the difference between the book value and the recoverable value of the relevant assets. Impairment loss when crystallized is charged against the revenue of the year.

10. Contingent Liabilities: There is no contingent Liabilities.

---

Mar 31, 2012

1. Basis of Preparation of Financial Statement: The Financial Statements have been prepared to comply with all material aspects related to applicability of accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on the basis of a going concern. The Company follows mercantile system of accounting and recognized income and expenditure on accrual basis.

2. Revenue Recognition: The Company''s income consists of income from computer hardware & software business and trading in shares business. The Income from sale of computer hardware is recognized on the basis of transfer of significant risks and rewards to the customer who takes place on the dispatch of the material from the premises of the Company. The income from trading in shares is recognized on the basis of contract note of share broker.

3. Fixed Assets and Depreciation:

1) Fixed Assets are stated at cost of acquisition and other related expenses less accumulated depreciation.

2) Depreciation on assets is provided on Written Down Value Method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. The depreciation on addition and disposal has been charged on prorate basis, if applicable.

4. Investments: Investment is stated at cost.

5. Valuation of Inventory: Closing Stock of shares and computer hardware are valued at cost, determined on weighted average basis, or net realizable value, whichever is less.

6. Retirement Benefit: The provisions of the Provident Fund and Family Pension Fund are not applicable to the Company during the year. The provision for the Gratuity has also not been made as no employee has completed the specified period of service.

7. Earning per Share: The basic earning per share is computed by dividing the net profit / (loss) attributable to the equity share holders for the year by the weighted average number of equity shares during the reporting year.

8. Taxes on Income: Current Tax on Income is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized subject to the consideration of prudence, 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 period.

9. Impairment of Assets: The Company identifies impairable assets at every Balance Sheet for the purpose of arriving at impairable loss there on, being the difference between the book value and the recoverable value of the relevant assets. Impairment loss when crystallized is charged against the revenue of the year.

10. Contingent Liabilities: There is no contingent Liabilities.

---

Mar 31, 2011

1. Basis of Preparation of Financial Statement:

The Financial Statements have been prepared to comply with all material aspects related to applicability of accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on the basis of a going concern. The Company follows mercantile system of accounting and recognized income and expenditure on accrual basis.

2. Revenue Recognition

The Company's income consists of income from computer hardware & software business and trading in shares business. The Income from sale of computer hardware is recognized on the basis of transfer of significant risks and rewards to the customer which takes place on the dispatch of the material from the premises of the Company. The income form trading in shares is recognized on the basis of contract note of share broker.

3. Fixed Assets and Depreciation

1). Fixed Assets are stated at cost of acquisition and other related expenses less accumulated depreciation.

2). Depreciation on assets is provided on Written Down Value Method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. The depreciation on addition and disposal has been charged on prorate basis, if applicable.

4. Investments

Investment is stated at cost.

5. Valuation of Inventory

Closing Stock of shares and computer hardware are valued at cost, determined on weighted average basis, or net realizable value, which ever is less.

6. Retirement Benefit

The provisions of the Provident Fund and Family Pension Fund are not applicable to the Company during the year. The provision for the Gratuity has also not been made as no employee has completed the specified period of service.

7. Earning Per Share

The basic earning per share is computed by dividing the net profit / (loss) attributable to the equity share holders for the year by the weighted average number of equity shares during the reporting year.

8. Taxes on Income

Current Tax on Income is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

9. Impairment of Assets

The Company identifies impairable assets at every Balance Sheet for the purpose of arriving at impairable loss there on, being the difference between the book value and the recoverable value of the relevant assets. Impairment loss when crystallized is charged against the revenue of the year.

10. Contingent Liabilities

Contingent Liabilities are not provided for and are being disclosed in Para No B5 of the Notes to Accounts.

B. NOTES TO ACCOUNTS:

1. There is an Investment of Rs 10,000/- in National Saving Certificate. The investment income has not been accounted for till date and status of Investment in National Saving Certificate is not available.

2. The balances of Central Bank of India, Mumbai, HDFC Bank (Centurion Bank), New Delhi, Sundry Debtors, Sundry Creditors, Loan and Advances granted and Loans received are subject to confirmation and reconciliation. In the opinion of the Board, current assets and loans and advances have a value of at least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of the business.

9. There are no Micro, Small and Medium Enterprises, as defined in Micro, Small and Medium Enterprises Development Act, 2006, to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

10. As informed to us the details of the related parties as per Accounting Standard 18 are as follows: A) (1) Enterprises where control exists - Nil

---

Mar 31, 2010

1. Basis of Preparation of Financial Statement:

The accounts have been prepared to comply with afl material aspects related to applicability of accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on the basis of a going concern. The Company follows mercantile system of accounting and recognized income and expenditure on accrual basis.

2. Revenue Recognition

The Companys income consists of income from computer hardware & software business and trading in shares business. The Income from sale of computer hardware is recognized on the basis of dispatch of the material from the premises of the Company. The income form trading in shares is recognized on the basis of contract note of share broker.

3. Fixed Assets and Depreciation

1). Fixed Assets are stated at cost of acquisition and other related expenses less accumulated depreciation.

2). Depreciation on assets is provided on Written Down Value Method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. The depreciation on addition and disposal has been charged on prorate basis.

4. Investments Investment is stated at cost.

5. Valuation of Inventory

Closing Stock of shares are valued at cost, determined on weighted average basis, or net realizable value, which ever is less.

6. Retirement Benefit

The provisions of the Provident Fund and Family Pension Fund are not applicable to the Company during the year. The provision for the Gratuity has also not been made as no employee has completed the specified period of service.

7. Earning Per Share

The basic earning per share is computed by dividing the net profit / (loss) attributable to the equity share holders for the year by the weighted average number of equity shares during-the^reporting year.

8. Taxes on Income

Current Tax on Income including Fringe Benefit Tax is determined as- the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

9. Impairment of Assets

The Company identifies impairable assets at every Balance Sheet for the purpose of arriving at impairable loss there on, being the difference between the book value and the recoverable value of the relevant assets. Impairment loss when crystallized is charged against the revenue of the year.

10. Financial Derivatives (Share and Commodity) Transaction

In respect of the derivative contracts of shares and commodity provision for losses on restatement and gain/losses on settlement, considering the materiality in the value, are recognized in the profit and loss accounts.

11. Contingent Liabilities

Contingent Liabilities are not provided for and are being disclosed in Para No B7 of the Notes to Accounts.

---

Mar 31, 2009

1. Basis of Preparation of Financial Statement:

The accounts have been prepared to comply with all material aspects related to applicability of accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on the basis of a going concern. The Company follows mercantile system of accounting and recognized income and expenditure on accrual basis.

2. Revenue Recognition

The Companys income consists of income from software business, textiles business, trading in shares business and commission business. The income from sale of software is recognized on the basis of significant transfer of risk and reward of ownership in software products. The Income from sale of textile is recognized on the basis of dispatch of the material from the premises of the Company. The income from trading in shares is recognized on the basis of contract note of share broker and income from commission is recognized on the basis of completion of transaction.

3 Fixed Assets 3nd Depreciation

1). Fixed Assets are stated at cost of acquisition and other related expenses less accumulated depreciation.

2). Depreciation on assets is provided on Written Down Value Method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956. The depreciation on addition and disposal has oeen criaiyed on prorate basis.

4. Investments

Investment is stated at cost.

5. Valuation of Inventory

Closing Stock of shares are valued at cost, determined on weighted average basis, or net realizable value, which ever is less.

6. Retirement Benefit

The provisions of the Provident Fund and Family Pension Fund are not applicaoie to the Company during the year. The provision for the Gratuity has also not been made as no employee has completed the specified period of service.

7. Earning Per Share

The basic earning per share is computed by dividing the net profit / (loss) attributable to the equity share holders for the year by the weighted average number of equity shares during the reporting year.

8. Taxes on Income

Current Tax on Income including Fringe Benefit Tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income tnat originate in one period and are capable of reversal in one or more subsequent period.

9. impairment of Assets

The Company identifies impairable assets at every Balance Sheet for the purpose of arriving at impairanle loss there on, being the difference between the book value and the recoverable value of the relevant assets. Impairment loss when crystallized is charged against the revenue of the year.

10. Financial Derivatives (Share and Commodity) Transaction

In respect of the derivative contracts of shares and commodity provision for losses on restatement and gain/lcsses en settlement, considering the materiality in the value are recognized in the profit and loss accounts

11. Contingent Liabilities

Contingent Liabilities are not provided for and are being disclosed in Para No B7 of the Notes to Accounts.