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Accounting Policies of Aayush Food & Herbs Ltd. Company

Mar 31, 2015

I. Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

ii. Revenue Recognition :

Revenue is being recognized in accordance with the Guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered Accountants of India. Accordingly, wherever there are uncertainties in the realization of income same is not accounted for till such time the uncertainty is resolved.

iii. Treatment of Expenses :

All expenses are accounted for on accrual basis.

iv. Fixed Assets:

Fixed Assets are stated at historical cost, less depreciation. Costs of fixed assets include taxes, duties, freight and other expense incidental and related there to the construction, acquisition, and installation of respective assets.

v. Inventories :

Stock-in-trade is valued at cost or market price whichever is lower.

vi. Depreciation / Amortization :

Depreciation on fixed assets has been provided on WDV method on prorate basis over the useful life prescribed in schedule II to the Companies Act, 2013 after considering salvage value of five percent of original cost. The Company has considered useful life of assets same as prescribed under the Companies Act, 2013.

Depreciation up to 31.03.2014 was provided on WDV method on prorate basis at the rates prescribed in schedule XIV to the Companies Act, 1956.

Due to transition from schedule XIV to schedule II, depreciation on assets existing as on 31.03.2014, has been provided in such a way so that assets should be depreciated after considering salvage value of five percent of original cost of the assets over a useful life of assets as prescribed under schedule II of the companies Act, 2013.

Assets of which useful life has already been expired but depreciation charged till previous financial year was less than 95% of original cost of the assets, difference of 95% of Original Cost and depreciation charged till last year, has been charged to profit and loss account as depreciation.

Assets on which depreciation has already been charged above of 95% of Original Cost of the assets till previous financial year and written down value of the assets is less than 5% of Original Cost, salvage value has been considered remaining WDV as on first day of current financial year.

vii. Taxes on Income :

a. Provision for current tax has been made as per the provisions of Income Tax Act, 1961.

b. Deferred tax has been 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.

viii. Earning Per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

ix. Investments :

Long term investments are carried at cost. However, provision is made for diminution in value (if any), other than temporary, on an individual basis.

x. Accounting for Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized in terms of Accounting Standard 29 - Provisions, Contingent Liabilities and Contingent Assets (AS-29), notified by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.


Mar 31, 2014

A. Accounting Policies

1. General :-

Accounting Policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles.

2. Revenue Recognition:-

Expenses and Income considered payable and receivable respectively are accounting for on accrual basis except discounts claims relates and retirement benefits in respect of leave encashment which cannot be determined with certainty during the year and interest.

3. Fixed Assets:-

Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

4. Depreciation :-

Depreciation on Fixed Assets has been provided on written down value method, on the cost of Fixed Assets as per the rates, provided in Schedule XIV of the Companies Act, 1956 except non charging of 100% depreciation on assets costing below Rs. 5000/-. Further, in case of addition, depreciation has been provided on pro-rata basis commencing from the date on which the asset is commissioned.

5. Investments:- Investments arc stated at cost.

6. Miscellaneous Expenditure:-

Miscellaneous Expenditure comprises of Preliminary expenses are amortized over a period of five years.

7. Taxes on Income:-

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future.


Mar 31, 2013

A. Accounting Policies

1. General-

Accounting Policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles

2. Revenue Recognition :-

Expenses and Income considered payable and receivable respectively are accounting for on accrual basis except discounts claims relates and retirement benefits in respect of leave encashment which cannot be determined with certainty during the year and interest.

3. Fixed Assets and Depreciation :-

Fixed Assets are carried at Costs less accumulated depreciation.

4. Investments :- Investments are stated at cost.

5. Taxes on Income:-

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.


Mar 31, 2012

1. The financial accounts, unless otherwise stated, are prepared at historical cost under the accrual method of accounting.

2 REVENUE RECOGNITION

The Company follows the mercantile system of accounting for Income & Expenditure and unless otherwise stated, is being recognized on accrual basis.

3. STOCK-IN-TRADE

Stock-in-trade is valued at lower cost and quoted value.

4. FIXED ASSETS AND DEPRECIATION

Fixed Assets are carried at cost (including capitalized interest) less accumulated depreciation.

5. TAXATION

Tax Expenses comprises of current & deferred income tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with I he Income Tax Act- Deferred Tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable incomes and accounting income/expenditure that originate in one period and arc capable of reversal in one or more subsequent year(s). Deferred taxes are reviewed for their carrying values at each balance sheet date.


Mar 31, 2011

1. The financial accounts, unless otherwise stated are prepared at historical cost under the accrual method of accounting.

2 REVENUE RECOGNITION

The company follows the mercantile system of accounting for income & expenditure and unless otherwise stated, is being recognised on accrual basis.

3. STOCK IN-TRADE

Stock-in-trade is valued at lower of cost and quoted value.

4 FIXED ASSETS AND DEPRECIATION

Fixed assets are carried at cost (including capitalized interest) less accumulated depreciation.

5. TAXATION

Tax Expenses comprises of current & deferred income tax. Current income tax is measure at the amount expected to be paid to the tax authorities in accordance with the income tax Act. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable income and accounting income/ expenditure that originate in one period and are capable of reversal in one or more subsequent year(s). Deferred taxes are reviewed for their carrying values at each balance sheet date.

 
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