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Accounting Policies of Allied Herbals Ltd. Company

Mar 31, 2015

A. BASIS FOR PREPARATION OF ACCOUNTS:

a) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

b) Financial statements are based on historical cost. These costs are not adjusted to reflect the changing value in purchasing power of money.

c) Financial statements have been prepared on the basis of going concern concept and in consonance with generally accepted accounting principles.

The financial statements for the current year are prepared in accordance with the Generally Accepted Accounting Principles ('GAAP') in India; Accounting Standards as prescribed by the Companies (Accounting Standard) Rules, 2006 read with the provisions of Companies Act, 2013.

B. LOANS AND ADVANCES:

Loans and Advances are stated after writing off amounts considered as bad. Adequate provision (wherever necessary) is made for doubtful loans and advances.

C. RECOGNITION OF INCOME AND EXPENDITURE:

a) Income and expenditure are generally recognized and accounted on accrual basis. However, the expenses for which bills have not been received at the date of balance sheet have been accounted for on estimated basis.

b) Claims against the company that are not accepted but due to which receivables of the company is withheld, are accounted for in the year of raising the claims by parties.

D. EARNING PER SHARE:

Earnings per share is calculated by dividing the earnings for the year attributable to equity share holders with the weighted average number of equity shares outstanding during the year. The earning considered in accounting the company's Earning per share (EPS) comprises the Net profit after tax and includes the Post Tax effects of any extraordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

E. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of the non cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

F. TAXES ON INCOME AND DEFERRED TAX:

Provision for current tax has been made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax charge or credit is recognized on timing differences 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. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

G. CONTINGENT LIABILITIES:

The Company recognizes a provision when there is a present obligation as a result of a past event and it is more likely than not that there will be an outflow of resources to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are determined on the basis of management's best estimate of the amount of obligation required at the year end. These are to be reviewed at each balance sheet date and to be adjusted to best estimates.

Contingent Liabilities are usually not provided for unless the future outcome may probably be materially detrimental to the Company.


Mar 31, 2014

A. BASIS FOR PREPARATION OF ACCOUNTS:

a) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

b) Financial statements are based on historical cost. These costs are not adjusted to reflect the changing value in purchasing power of money.

c) Financial statements have been prepared on the basis of going concern concept and in consonance with generally accepted accounting principles.

The financial statements for the current year are prepared in accordance with the Generally Accepted Accounting Principles (GAAP) in India; Accounting Standards as prescribed by the Companies (Accounting Standard) Rules, 2006, the provisions of Companies Act, 2013(to the extent notified), the companies Act, 1956 ( to the extent applicable).

B. LOANS AND ADVANCES:

Loans and Advances are stated after writing off amounts considered as bad. Adequate provision (wherever necessary) is made for doubtful loans and advances.

C. RECOGNITION OF INCOME AND EXPENDITURE:

a) Income and expenditure are generally recognised and accounted on accrual basis. However, the expenses for which bills have not been received at the date of balance sheet have been accounted for on estimated basis.

b) Claims against the company that are not accepted but due to which receivables of the company is withheld, are accounted for in the year of raising the claims by parties.

D. EARNING PER SHARE:

Earning per share is calculated by dividing the earnings for the year attributable to equity share holders with the weighted average number of equity shares outstanding during the year. The earning considered in accounting the company''s Earning per share (EPS) comprises the Net profit after tax and includes the Post Tax effects iof any extraordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity anddilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

E. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of the non cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

F. TAXESONINCOMEANDDEFERREDTAX:

Provision for current tax has been made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax charge or credit is recognized on timing differences 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. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.

G. CONTINGENT LIABILITIES:

The Company recognises a provision when there is a present obligation as a result of a past event and it is more likely than-not that there will be an outflow of resources to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are determined on the basis of management''s best estimate of the amount of obligation required at the year end. These are to be reviewed at each balance sheet date and to be adjusted to best estimates.

Contingent Liabilities are usually not provided for unless the future outcome may probably be materially detrimental to the Company.


Mar 31, 2013

A. BASIS FOR PREPARATION OF ACCOUNTS:

a) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

b) Financial statements are based on historical cost. These costs are not adjusted to reflect the changing value in purchasing power of money.

c) Financial statements have been prepared on the basis of going concern concept and in consonance with generally accepted accounting principles.

The financial statements for the current year are prepared in accordance with the Generally Accepted Accounting Principles (''GAAP'') in India; Accounting Standard issued by Institute of Chartered Accountants of India and comply with the mandatory presentational requirements of the Companies Act, 1956.

B. LOANS AND ADVANCES:

Loans and Advances are stated after writing off amounts considered as bad. Adequate provision (wherever necessary) is made for doubtful loans and advances.

C. RECOGNITION OF INCOME AND EXPENDITURE:

a) Income and expenditure are generally recognised and accounted on accrual basis. However, the expenses for which bills have not been received at the date of balance sheet have been accounted for on estimated basis.

b) Claims against the company that are not accepted but due to which receivables of the company is withheld, are accounted for in the year of raising the claims by parties.

D. EARNING PER SHARE:

Earning per share is calculated by dividing the earnings for the year attributable to equity share holders with the weighted average number of equity shares outstanding during the year. The earning considered in accounting the company''s Earning per share (EPS) comprises the Net profit after tax and includes the Post Tax effects of any extraordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

E. CASH FLOW STATEMENT:

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of the non cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

F. TAXES ON INCOME AND DEFERRED TAX:

Provision for current tax has been made in accordance with the provisions of Income Tax Act, 1961.

Deferred tax charge or credit is recognized on timing differences 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. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.

G. CONTINGENT LIABILITIES:

The Company recognises a provision when there is a present obligation as a result of a past event and it is more likely than not that there will be an outflow of resources to settle such obligation and the amount of such obligation can be reliably estimated. Provisions are determined on the basis of management''s best estimate of the amount of obligation required at the year end. These are to be reviewed at each balance sheet date and to be adjusted to best estimates.

Contingent Liabilities are usually not provided for unless the future outcome may probably be materially detrimental to the Company.


Mar 31, 2012

A BASIS FOR PREPARATION OF ACCOUNTS:

a) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

h) Financial statements are based on historical cost. These costs are not adjusted to reflect the changing value in purchasing power of money.

c) Financial statements have been prepared on the basis of going concern concept and in consonance with generally accepted accounting principles.

The financial statements for the current year are prepared in accordance with the Generally Accepted Accounting Principles ('GAAP1) in India, Accounting Standard issued by Institute of Chartered Accountants of India and comply with the mandatory presentational requirements of the Companies Act, 1956.

li. LOANS AND ADVANCES:

Loans and Advances are stated after writing off amounts considered as bad. Adequate provision (wherever necessary) is made for doubtful join and advances.

C. RECOGNITION OF INCOME AND EXPENDITURE:

a) Income and expenditure are generally recognised and accounted on accrual basis. However, the expenses for which bills have not been received at the date of balance sheet have been'accounted for on estimated basis.

b) Claims against the company that are not accepted but due to which receivables of the company is withheld, are accounted for in the year of raising the claims by parties.

D. EARNING PERSIIARE:

Faming per share is calculated by dividing the earnings for the year attributable to equity share holders with the weighted average number of equity shares outstanding during the year. The earning considered in accounting the company's Earning per-share (EPS) comprises the Net profit after tax and includes the Post Tax effects of any extraordinary items. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. Diluted earnings per share are computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

E CASH FLOW STATEMENT:

Cash Flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects'of transactions of the non cash nature and deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the company are segregated.

F. TAXES ON INCOME AND DEFERREDTAX:

Provision for current tax has been made in accordance with the provisions of Income Tax Act, 1 % 1.

Deferred tax charge or credit is recognized on timing differences 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. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or subsequently enacted by balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written-up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realised.

 
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