Accounting Policies of Allied Computers International (Asia) Ltd. Company

Mar 31, 2015

A) Basis of Accounting

The accounts of the Company are prepared under the historical cost convention and are in accordance with the applicable accounting standards and accordingly accrual basis of accounting is followed for recognition of income and expenses except where otherwise stated and where the exact quantum is not ascertainable. Expenditure on issue of share capital, if any, is accounted when actually incurred.

b) Revenue Recognition

(i) Sales and Job Work are recognized at the time of invoicing thereof upon the passage of title to the customers / clients.

(ii) Exports sales are recognised according to the date of Bill of Lading or the Airway Bill,as the case may be, as adjusted by the actual realization if within one year.

(iii) Local sales are recorded at the price inclusive of excise duty and freight wherever separately not collected.

c) Fixed Assets

Fixed assets are stated at total capitalized costs relating and attributable directly or indirectly to acquisition and installation thereof as reduced by the accumulated depreciation thereon.

d) Depreciation/Amortization

Depreciation / Amortization on Fixed Assets, other than Freehold land is provided on pro-rata basis on Straight Line Method at the rate prescribed under sechdule II to the Companies Act, 2013. However no depreciation charge during the year.

e) Inventories

Inventories are valued as follows:

(i) Raw Materials, Stores and Spares: at cost

(ii) Work in Progress: at lower of estimated cost or net realizable value

(iii) Waste Materials, Damaged goods, Scrap: if any at net estimated realizable value

(iv) Finished Goods: at lower of cost or market value.

f) Investments

Investments that are intended to be held for more than a year , from the date of acquisition are classified as long term investment are carried at cost less any provision for permanent diminution in value. Investments other than long term investments are being current investments are valued at cost or fair market value whichever is lower.

g) Assets & Liabilities

The Assets and Liabilities are taken at the book value certified by the Directors.

h) Foreign Currency Transactions

Foreign Currency Transactions are normally recorded at the exchan ge rate, prevailing on the date of transaction or conversion, as the case may be.

i) Taxes on Income

(i) Current Tax: Provision for Income Tax is determined in accordance with the provisions of Income Tax Act, 1961.

(ii) Deferred Tax Provision: Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can realized.

j) Miscellaneous Expenditure

Preliminary expenses / shares and deferred revenue expenses etc. if any are amortized over a period of 5 years.

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Mar 31, 2014

A) Basis of Accounting

The accounts of the Company are prepared under the historical cost convention and are in accordance with the applicable accounting standards and accordingly accrual basis of accounting is followed for recognition of income and expenses except where otherwise stated and where the exact quantum is not ascertainable. Expenditure on issue of share capital, if any, is accounted when actually incurred.

b) Revenue Recognition

(i)Sales and Job Work are recognized at the time of invoicing thereof upon the passage of title to the cus- tomers/clients.

(ii)Exports sales are recognised according to the date of Bill of Lading or the Airway Bill, as the case may be, as adjusted by the actual realization if within one year.

(iii) Local sales are recorded at the price inclusive of excise duty and freight wherever separately not collected.

c) Fixed Assets

Fixed assets are stated at total capitalized costs relating and attributable directly or indirectly to acquisition and installation thereof as reduced by the accumulated depreciation thereon.

d) Depreciation/Amortization

Depreciation/Amortization on Fixed Assets, other than Freehold Land is provided on Written down Value Method, at the rates specified in Schedule XIV to the Companies Act, 1956 (as amended). However no depreciation charge during the year

e) Inventories

Inventories are valued as follows:

(i) Raw Materials, Stores and Spares: at cost

(ii) Work in Progress: at lower of estimated cost or net realizable value

(iii) Waste Materials, Damaged goods, Scrap: if any at net estimated realizable value

(iv) Finished Goods: at lower of cost or market value.

f) Investments

Investments that are intended to be held for more than a year , from the date of acquisition are classified as long term investment are carried at cost less any provision for permanent diminution in value. Investments other than long term investments are being current investments are valued at cost or fair market value whichever is lower.

g) Assets & Liabilities

The Assets and Liabilities are taken at the book value certified by the Directors.

h) Foreign Currency Transactions

Foreign Currency Transactions are normally recorded at the exchange rate, prevailing on the date of transaction or conversion, as the case may be.

i) Taxes on Income

(i) Current Tax: Provision for Income Tax is determined in accordance with the provisions of Income T ax Act, 1961.

(ii) Deferred Tax Provision: Deferred Tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted on the Balance Sheet date.

Deferred Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can realized.

j) Miscellaneous Expenditure

Preliminary expenses/shares and deferred revenue expenses etc. if any are amortized over a period of 5 years.

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Mar 31, 2013

I) Basis of Accounting miwenrinn and are in accordance with the applicable

The accounts of the Company arc prepared under the historical cot standards and according accrual basis of accounting .s followed for ecogmUon of mcc, otherwise staled and where the exact quantum is not ascertainable. Expenditure on issue of share capital. an. actually incurred.

ii) Revenue Recognition

Worfcarc recognized at thereof invoicing thereof Exports sales are recognised according to the date of Bill of Lading or the Airway Bdl, as the case may be realization if within one year.

iii, Local sales are recorded at the price inclusive of excise duty and freight wherever separately not collected. Fixed re stated at total capitalized costs relating and attributable Erectly or indrrectly to acquisition and installs, tltcrcof as reduced by the accumulated depreciation thereon. ISSSSS; on Fixe dodnee Frcehofd Land provided on Wricfen do™ Vaioe Mcii.cd. specified in Schedule XIV to the Companies Act, 1956 (as amended).

iv) Inventories

Inventories are valued as follows: (i) Raw Materials, Stores and Spares at cost (it) Work in Progress at lower of estimated cost or net realizable value (iii) Waste Materials. Damaged goods. Scrap: if any at net estimated realizable value (iv) Finished Goods: at lower of cost or market value. intended to be held for more than a year, from the date of acquisition are classified as [*£££»« M carried at cost less any provision for permanent diminution in value Investments other than long icrm moments are bunt current investments are valued at cost or fair markcl value whichever is lower.

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Mar 31, 2012

A) Basis of Accounting

The accounting of the company are prepared under the historical cost convention and are in accordance with the applicable accounting slandered and accounting actual basis of accounting is followed for recognition of income and expenses except where otherwise stated and where the exact quantum is not ascertainable. Expenditure on issue of share capital if any is accounted when actually incurred.

b) Revenue Recognition

(i) Sales and job work are recognized at the time of invoicing thereof up on the passage of title to the customers, clients, Experts sales are recognised according to the date of bill of loading or the Airways Bill as the case may be as adjusted by the

(ii) Actual realization if within one year.

(iii) Local sales are recorded at the price inclusive of excise duty and freight wherever separately not collected.

c) Fixed Assets

Fixed Assets are stated all capitalized costs relating and attributable directly or indirectly to acquisition and installation thereof as reduced by the depreciation thereon.

d) Depreciation / Amortization

Depreciation/ Amortization on Fixed assets, other than Freehold land is provided on written down value method at the rates specified in Schedule XIV to the companies Act, 1956 (as amended)

e) Inventories

Inventories are valued as follows :

(i) Raw materials, stores and Spares at cost.

(ii) Work in progress at tower of estimated cost or net realizable value.

(iii) Waste Materials, Damaged goods Script if any at net estimated realizable value.

(iv) Finished goods at lower of cost or market value.

f) Investments

Investments that are interested to be held for more than a year from the date of acquisition are classified as long term investments are carried at cost less any provision for permanents value. Investments other than long term investments are being current investments are being investments are valued at the cost or fair market value whenever is lower.

g) Assets & Liabilities

The Assets and Liabilities are taken at the book value certified by the Directors.

h) Foreign Currency Transactions

Foreign Currency Transactions are normally recorded at the exchange rate prevailing on the Date of transaction or envision, as the case may be.

i) Taxes on Income

(i) Current Tax

Provision for Income Tax determined in accordance with the provisions for Income Tax Act, 1961.

(ii) Differed Tax Provision

Differed Tax as recognized on timing differences between the accounting income and the taxable income for the year, and qualified using the tax rates and laws effected or substantially effected on the Balance Sheet date. Differed Tax Assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such Differed Tax Assets can realize.

j) Miscellaneous Expenditure

Preliminary expenses / shares and deferred revenue expenses etc., if any are amortized over a period of 5 years.

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Mar 31, 2011

1. METHOD OF ACCOUNTING

The company generally follows the accrual concept in the preperaton of the Account.

2. REVENUE RECOGNITION

Revenue is recognised on accrual basis.

3. FIXED ASSETS

(i) Capitalized at cost of acquisition.

(ii) In the event of the same having been revalued, they are stated at the revalued figure.

(iii) Expenditure relating to fixed assets is added to costs only when the same involves modification work and whereby increases life of the asset.

4. DEPRECIATION

Depreciation has been provided on written down value of the assets at the end of the year at the rates specified in the schedule- XIV of the Companies Act. 1956.

5. INVENTORY

Inventories are valued at lower of cost or net reasonable value. Cost of inventories companies all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to then present location and condition.

6. INVESTMENTS

Investments are stated at cost.

7. Income Tax

Income Tax comprising of current tax provision and the net change in the deferred tax asset or liability in the year. During the year under review the company has not recognised any Deferred Tax unless there is ''Virtual certainty'' that sufficient nature taxable income will be available against which any deferred tax will be realized.

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Mar 31, 2010

A) Basis of Accounting :

The accounts have been prepared under the historical cost on an accrual basis as a going concern. Revenue recognition and expenses incurred are accounted on accrual basis and applicable mandatory standards and in accordance with the requirement of the Companies Act, 1956.

b) Revenue Recognition :

Sales: Income from Product Sales/Services Charges is recognized upon completion of sales and rendering of the services respectively. Sales are inclusive of duty but accounted net of sales tax, whenever applicable. Income includes inter-divisional transfer at market price. The value of such inter divisional transfer is included in the value of materials purchase & sales.

c) Dividend and Interest :

Dividend income from investments is recognized when right to receive to payment is established. Interest income is accounted on its accrual on a time proportion.

d) Employees'' Remuneration: The Company''s contribution to the Provident Fund are charged to Profit & Loss for the period.

e) Depreciation: Depreciation is charged on Fixed Assets (except in case of Land) on Straight Line Method and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

f) Fixed Assets: Fixed Assets are stated at cost of acquisition or construction, less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized and include financing costs relating to the borrowed funds attributable to construction or acquisition of fixed assets upto the date the assets are put to use.

g) Impairment of Assets :

An asset is treated and impaired when the carrying cost of Assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which as asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

h) Investments: Investments are classified as long term investment.

i) As per the revised policy management has decided to value all investments at lower of cost or market value and accordingly diminution in value of investments as at year end is suitably adjusted in the accounts as per Accounting Standards issued by the Institute of Chartered Accountants of India.

i) Inventories: Since the product/item in which the company is dealing is subject to technological changes fluctuation the valuation of closing stock is taken as per the management certificate.

ii) Service Components are valued at cost.

j) Foreign Currency Transaction: Any income or expenses on account of exchange difference is either in settlement or on transaction is recognized as per revenue gain/loss.

k) Income Tax : In view of the carried forward losses, no provision for Income Tax has been made, however provision has been made for the Fringe Benefit Tax.

Provision for current income tax is based on the assessable profits computed in accordance with the provisions of the Income Tax Act, 1961. 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 periods.

l) Deferred Tax Assets / Liabilities: Deferred Tax assets or liability for timing difference between the profits per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted as at the Balance sheet date. Deferred Tax assets are recognized only if there is reasonable certainly that sufficient future taxable income will be available, against which it can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet Date and reduced if sufficient taxable profits are not like to be available to realize all or part of the deferred tax assets.

m) Prior Period Expense/Income: All identifiable items of income and expenditure pertaining to prior period are accounts as per "Prior Period Adjustment".

n) Retirement Benefits:

Since no employees who has put in stipulated number of years of service no provision has been made towards retirement benefits.

a) Gratuity :

No Provision is made in the accounts in respect of Gratuity payable to staff. These are charged in the accounts as and when paid.

b) Provident Fund :

Annual contribution to Provident Fund is charges to the Profit and Loss Account.

c) Leave Encashment :

No Provision is made in the accounts in respect of future liability of Leave Encashment payable to the staff. These are charged in the accounts as and when paid.

o) Borrowing cost:

Borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.