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Accounting Policies of Aris International Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statements

These financial statements have been prepared to comply in all material respects with the accounting principles generally accepted in India (Indian GAAP) including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accountings policies have been consistently applied by the company and are consistent with those used in the previous period.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management's best knowledge of current events and actions, belief that these estimates are reasonable and prudent, actual results may differ from estimates.

c. Revenue Recognition

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of services.

d. Cash flow

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

e. Segmental reporting

Operations of the company consist of one segment i.e. Software Development. Thus AS -17 is not applicable to the company from the current year.

f. Earnings Per Share

Earnings per Share has been computed in accordance with Accounting Standard 20 - "Earning Per Share" 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. The earnings considered for ascertaining the company's Earnings per Share is the net profit after tax.

g. Income Tax

Tax expense comprises of current tax and deferred tax. Provision for current tax is made for the tax liability payable on taxable income after considering the allowances, deductions and exemptions and disallowances if any determined in accordance with the prevailing tax laws.

Deferred income tax reflect the current period timing difference between taxable income and accounting income for the period and reversal of timing difference of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is a virtual certainty that sufficient future taxable income will to available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

h. Provisions, Contingent Liabilities and Contingent Assets

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the outflow. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimate.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.


Mar 31, 2014

Basis of preparation of financial statements

These financial statements have been prepared to comply in all material respects with the accounting standards notified by Companies (accounting standards) Rules, 2006 (as amended), accounting principles generally accepted in India and the relevant provisions of the Companies act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis. The accountings policies have been consistently applied by the company and are consistent with those used in the previous period.

Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, belief that these estimates are reasonable and prudent, actual results may differ from estimates.

Revenue Recognition

Incomes/Expenses/Revenues are accounted for on accrual basis. Revenue is recognised to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured.

Cash flow

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

Segmental reporting

Operations of the company have been bifurcated into two primary segments i.e. Software Development and Realty. Segment Revenue, Results and Assets and Liabilities figures include the respective amounts identifiable to each of the Primary Segments. Other unallocable expenditure, assets and liabilities relates to corporate as a whole.

Earnings Per Share

Earnings per Share has been computed in accordance with Accounting Standard 20 - "Earning Per Share" 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. The earnings considered for ascertaining the company''s Earnings per Share is the net profit after tax.

Income Tax

Tax expense comprises of current tax and deferred tax. Provision for current tax is made for the tax liability payable on taxable income after considering the allowances, deductions and exemptions and disallowances if any determined in accordance with the prevailing tax laws.

Deferred income tax reflect the current period timing difference between taxable income and accounting income for the period and reversal of timing difference of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is a virtual certainty that sufficient future taxable income will to available to realise the same.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Provisions, Contingent Liabilities and Contingent Assets

present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimate. Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

1. Basis of preparation of Financial Statements & its significant Accounting Policies & Audit Notes thereon :

The financial statements of the Company are prepared under the Historical Cost Convention on accrual basis of accounting, in accordance with the standards issued by the Institute of Chartered Accountants of India, and referred to in section 211 (3C) of the Companies Act, 1956.

2. Fixed Assets

The company does not have any fixed asset during the year. The fixed assets were being stated at cost less accumulated depreciation.

3. Depreciation

Depreciation on all fixed assets was provided using Straight Line Method pro-rata to the period of use of assets, in the manner specified in Schedule XIV of the Companies Act, 1956, at the rates prescribed therein.

4. Investment

Investment in NSC is considered as long term and shown at cost.

5. Inventories

Inventories are valued as under

Finished Goods - At Cost or Market Value whichever is lower.

Work in Progress - At Cost or Market Value whichever is lower - (The cost of WIP includes manufacturing overhead).

Stores & Spares - At Cost or Market Value whichever is lower.

(The Management certifies the above)

There is no Inventory as at the end of the year.

6. Sales

The Company recognizes sale of goods on the dispatch to customers. Sale comprises the amounts invoiced for goods sold inclusive of excise duty, but net of Sales Tax returns and trade discounts.

7. Interest

No interest has been provided during the year.

8. Retirement Benefit

The Company does not provide any retirement benefits during the year.

9. MODVAT Credit

a) The value of eligible Modvat Credit against Central Excise Duty paid has been adjusted against the relevant materials purchased.

b) Modvat Credit so availed has been adjusted against Central Excise Duty incurred on finished goods and scrap dispatched and unavailed duty is carried over as advance.

10. Deferred Revenue Expenditure

The company does not have any deferred revenue expenditure during the year. Preliminary Expenses and Public Issue Expenses are written off over a period of 10 years.

11. Director's Remuneration

Rs. 94,500/- has been paid to the Managing Director and other Director which is yearly remuneration/sitting fees paid as per Schedule XIII of the Companies Act, 1956 which are within limits of Companies Act, 1956.


Mar 31, 2010

1. Basis of preparation of Financial Statements & its significant Accounting Policies & Audit Notes thereon :

The financial statements of the Company are prepared under the Historical Cost Convention on accrual basis of accounting, in accordance with the standards issued by the Institute of Chartered Accountants of India and referred to in section 211 (3C) of the Companies Act, 1956.

2. Fixed Assets :-

Fixed Assets are stated at cost less accumulated depreciation.

3. Depreciation :-

Depreciation on all fixed assets is provided using Straight Line Method pro-rata to the period of use of assets, in the manner specified in Schedule XIV of the Companies Act, 1956, at the rates prescribed therein.

4. Investment :-

Investment in NSC is considered as long term and shown at cost.

5. Inventories :-

Inventories are valued as under

Finished Goods - At Cost or Market Value whichever is lower.

Work in Progress - At Cost or Market Value whichever is lower - (The cost of WIP includes manufacturing overhead).

Stores & Spares - At Cost or Market Value whichever is lower.

(The Management certifies the above)

6. Sales :-

The Company recognises sale of goods on the despatch to customers. Sale comprises the amounts invoiced for goods sold Inclusive of excise duty, but net of Sales Tax, returns and trade discounts,

7. Interest :-

The Company has not provided interest on Secured Loan during the year.

8. Retirement Benefit :-

The Company has not incurred any retirement benefits to the employees and also no provision has been made so far.

9. Capital Work-in-progress :-

Capita! Work-in progress included advances against Capital Expenditure towards Plant & Machinery and others; the ownership thereof has not been vested with the Company. It has been written off during the year since the amount as informed is irrecoverable.

10. MODVAT Credit :-

a) The value of eligible Modvat credit against Central Excise Duty paid has been adjusted against the relevant materials purchased.

b) Modvat Credit so availed has been adjusted against Central Excise Duty incurred on finished goods and scrap despatched and unveiled duty is carried over as advance.

11. Deferred Revenue Expenditure :-

Preliminary Expenses and Public Issue Expenses are written off over a period of 10 years.

12. Subsidy (Reserve & Surplus) :-

State-Subsidy so received in earlier years has been transferred to Profit and Loss A/c recognizing it as an Income pertaining to earlier year.

13. Director's Remuneration :-

Rs. 1,15,500/- has been paid to the Managing Director and other Director which is yearly remuneration/sitting fees paid as per Schedule XIII of the Companies Act, 1956 which are within limits of Companies Act.

14. The Company has not provided for Deferred Taxes during the year.

15. Additional information pursuant to the provision of the paragraph 3, 4C and 4D of Part II of Schedule VI of the Companies Act, 1956.

16. Calls in Arrears of earlier year amounting to Rs. 1,40,76,750/- has not been received. Forfeiture procedure is awaited by the Company. Interest receivable on Allotment Money & Call Money on unpaid amount, are not accounted in this year. Such will be accounted for on receipts only.

17. The following Statutory Expenses are outstanding for more than six months while they become payable. These are carried forward from earlier years.

18. Professional Tax :

No Professional Tax has been deducted from employees during the year as told to us.

19. A sum of Rs. 16,83,128.00 has been written off during the year as bad debts since, as H informed they have become irrecoverable. A sum of Rs. 4,47,478.00 representing liabilities no longer required have been adjusted and considered as Income during the year.

20. Previous year's figures have been re-grouped & re-arranged wherever felt necessary.

 
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