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Accounting Policies of Arman Holdings Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standard) Rules 2006 (as amended) and the relevant provisions of the Companies Act 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in previous year.

1.2 Use of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities (included contingent liabilities) and reported amounts of income and expenses during the period. The management believes that the estimated used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates. Example of such estimates includes future obligation, provision for taxes and the useful lives of fixed assets.

1.3 Fixed Assets

(a) Tangible Assets

Tangible assets are stated at cost, less accumulated depreciation. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

(b) Intangible Assets

Intangible assets acquired separately shall be measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization

1.4 Depreciation / Amortization

Depreciation on fixed assets is provided to the extent of depreciable amount on the written down value (WDV) method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

Individual low cost assets (acquired for less than Rs. 5,000) are fully depreciated during the year of acquisition.

1.5 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Bank Interest

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Interest on Loans

Revenue is recognised on a time proportion basis taking into account the amount outstanding and the @ 8% p.a.

1.6 Retirement and Other Employee Benefits

Defined contribution plans

The Company is not liable to deposit any dues on account of Provident find and other similar funds as the number of employees is less than 10. The Company's contribution to Provident Fund and other similar funds will be charged to the Statement of Profit & Loss as and when any of the laws becomes applicable.

Defined Benefit Plans

As the number of employees is less than 10, the Company is not liable to make provision for any defined benefit retirement plans.

1.7 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in values is made to recognize a decline other than temporary in the value of the investments.

1.8 Provisions and Contingent Liabilities

A provision is recognized when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.9 Impairment of Assets

Whenever events indicate that assets may be impaired, the assets are subject to a test of recoverability based on estimates of future cash flows arising from continuing use of such assets and from its ultimate disposal. A provision for impairment loss is recognized where it is probable that the carrying value of an asset exceeds the amount to be recovered through use or sale of the asset.

1.10 Income-taxes

Income taxes consist of current taxes and changes in deferred tax liabilities and assets.

Income taxes are accounted for on the basis of estimated taxes payable and adjusted for timing differences between the taxable income and accounting income as reported in the financial statements. Timing differences between the taxable income and the accounting income as at 31 March 2015 that reverse in one or more subsequent years are recognized if they result in taxable amounts. Deferred tax assets or liabilities are established at the enacted tax rates. Changes in the enacted rates are recognized in the period of enactment.

Deferred tax assets are recognized only if there is a reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

1.11 Earnings 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.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all diluting potential equity shares.

1.12 Provisions, Contingent Liabilities & Contingent Assets Provisions

A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at 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 estimates.

1.13 Cash flow statement

Cash flows are reported using indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any 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.

1.14 Material Events

Material events occurring after the Balance Sheet date are taken into cognizance.




Mar 31, 2014

A Basis of Preparation of Financial Statements:

The Financial Statements of the Company are prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") in India, mandatory accounting standards, as specified in the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956 and Companies Act, 2013, to the extent applicable, and as adopted consistently by the Company.

The Company is a Small and Medium Sized Company ("SMC") as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956 and Companies Act, 2013, to the extent applicable. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature business the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b- Revenue Recognition:

Income is recognized on an accrual basis on time proportionate basis.

c. Fixed Assets:

Tangible assets are stated at cost, less accumulated depreciation. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

d. Investments:

Current Investments are held at lower of cost and NAV /Market Value.


Mar 31, 2013

A. Basis of Preparation of Financial Statements

The financial Statement of the Company are Prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") in India, mandatory accounting standards, as specified in the Companies (Accounting Standards) Rules, 2006 and the provision of the Companies Act, 1956, to the extent applicable and as adopted consistently by the Company.

The Company is a small and Medium Sized Company ("SMC") as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a small and Medium Sized Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Schedule VI to the Companies act, 1956. Based on the nature business the Company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

b. Revenue Recognition

Income is recognized on an accrual basis on time proportionate basis.

c. Fixed Assets

Company has no fixed Assets.


Mar 31, 2012

A. Basis of Preparation of Financial Statements

The Financial Statements of the Company are prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles ("GAAP") in India, mandatory accounting standards, as specified in the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956 to the extent applicable, and as adopted consistently bye Company.

The Company is a Small and Medium Sized Company ("SMC") as defined in the General Instructions in respect of Accounting Standards notified under the Companies Act, 1956. Accordingly, the Company has complied with the Accounting Standards as applicable to a Small and Medium Sized Company.

All assets and liabilities have been classified as current or non-current as per the criteria set out in the Schedule VI to the Companies Act, 1956. Based on the nature business the Company has ascertained its operating cycle as 12 months for the purpose of current – non current classification of assets and liabilities.

b. Revenure Recognition

Income is recognized on an accrual basis on time proportionate basis.

c. Fixed Assets

Company have no fixed Assets.


Mar 31, 2011

A. Basis of preparation of financial statements. The Company generally follows Mercantile System of accounting and recognizes significant itmes of Income & Expenditure on accrual basis.

B. Valuation of Investment & Stock in Trade i) Investment valued At Cost. ii) Stock in Trade in shares – Less of cost or market value.

 
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