Accounting Policies of Brahmanand Himghar Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India & notified under the Companies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 2013. The financial statements are presented in Indian rupees.

b. Use of estimates

The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Fixed assets - AS 10

Fixed assets are stated at historical cost of acquistion/construction inclusive of duties (net of cenvat), taxes, incidental expenses and erection/commissioning expenses up to the date the asset is ready for intended use.

d. Depreciation/ Amortisation - AS 6

On fixed assets, depreciation is provided on written down value method. Effective 1st April 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule-II of the Companies Act, 2013 as against the earlier practice of depreciating at the rates prescribed in the Schedule-XIV of the Companies Act, 1956.

The company has adopted estimated useful life of Fixed Assets as stipulated under Schedule-II of the Act except in case of Plant & Machinery and Electrical Installation , the useful life of which is estimated as 25 year based on independent technical evaluation.

e. Impairment of assets - AS 28

At each Balance Sheet date, management assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the present value as determined above. Actual results could differ from those estimates.

f. Inventories - AS 2

Since the company does not have any inventory, the provisions of AS -2 are not applicable to the company.

g. Revenue recognition- AS 9

i) Sales

Revenue is recognised to the extent that it is probable the economic benefits will flow to the company and revenue can be reliably measured. Revenue from sale of goods is when all the significant risks & rewards of ownership of the goods have been passed to the recognised buyers, usually on delivery of the goods. The provisions of AS -9 are complied to the extent applicable to the company.

ii) Income & Expenditure

Income and Expenditure are accounted for on accrual basis, wherever ascertainable.

h. Investments - AS 13

As per the provisions of AS 13 investments which are readily realisable and intended to be held for not more than one year from the date on which such investments are made,are classifed as current investments. All other investments are classified as Long Term Investments/Non Current Investments.

Long term investments are carried at cost unless there is dimunition (other than temporary ) in the value of investments.

i. Employee benefits- AS 15

Short-term employees benefits are recognised as an expenses in the Profit & Loss Account of the year in which the related service is rendered.

Regarding post employment benefits the company maintains gratuity fund with Life Insurance Corporation of India. Acturial valuation is made by the LIC on the basis of data given by the company.

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the profit and loss account when incurred.

j. Foreign exchange transactions- AS 11

Since the company did not have any foreign exchange transactions, the provisions of AS -11 are not applicable to the company.

k. Contingencies - AS 29

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognised because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

l. Taxation- AS 22

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred tax resulting from "timing differences " between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be reliased in future.

m. Government Grants- AS 12

i) Government Grants related to fixed assets are adjusted with the value of fixed assets/ credited to capital reserve.

ii) Govt Grants related to revenue items are adjusted with the related expenditure / taken on income.

n. Borrowing Cost- AS 16

Borrowing Cost that are directly attributable to the acquistion/ construction of the qualifying asset are capitalised until the time all the substantial activities necessary to prepare such assets for the intended use are complete. All other borrowing costs are recognised as expenditure during the period in which they are incurred.

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Mar 31, 2014

A. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India & notified under the Companies (Accounting Standards) Rules 2006 as amended and the relevant provisions of the Companies Act, 1956. The financial statements are presented in Indian rupees.

b. Use of estimates

The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Fixed assets - AS 10

Fixed assets are stated at historical cost of acquistion/construction inclusive of duties (net of cenvat), taxes, incidental expenses and erection/ commissioning expenses up to the date the asset is ready for intended use.

d. Depreciation/ Amortisation - AS 6

On fixed assets, depreciation is provided on written down value method. The rates of depreciation prescribed in Schedule XIV of the Companies Act, 1956, are considered as minimum rates.

e. Impairment of assets - AS 28

At each Balance Sheet date, management assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the present value as determined above. Actual results could differ from those estimates.

f. Inventories - AS 2

Since the company does not have any inventory, the provisions of AS -2 are not applicable to the company.

g. Revenue recognition - AS 9

i) Sales

Revenue is recognised to the extent that it is probable the the economic benefits will flow to the company and revenue can be reliably measured. Revenue from sale of goods is when all the significant risks & rewards of ownership of the goods have been passed to the recognised buyers, usually on delivery of the goods. The provisions of AS -9 are complied to the extent applicable to the company.

ii) Income & Expenditure

Income and Expenditure are accounted for on accrual basis, wherever ascertainable.

h. Investments - AS 13

As per the provisions of AS 13 investments which are readily relisable and intended to be held for not more than one year from the date on which such investments are made,are classifed as current investments. All other investments are classified as Long Term Investments/Non Current Investments.

Long term investments are carried at cost unless there is dimunition (other than temporary) in the value of investments.

i. Employee benefits - AS 15

Short-term employees benefits are recognised as an expenses in the Profit & Loss Account of the year in which the related service is rendered.

Regarding post employment benefits the company maintains gratuity fund with Life Insurance Corporation of India. Acturial valuation is made by the LIC on the basis of data given by the company.

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the profit and loss account when incurred.

j. Foreign exchange transactions - AS 11

Since the company did not have any foreign exchange transacions, the provisions of AS -11 are not applicable to the company.

k. Contingencies - AS 29

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognised because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

l. Taxation-AS 22

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred tax resulting from "timing differences " between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be reliased in future.

m. Government Grants-AS 12

i) Government Grants related to fixed assets are adjusted with the value of fixed assets/credited to capital reserve.

ii) Govt Grants related to revenue items are adjusted with the related expenditure/taken on income.

n. Borrowing Cost-AS 16

Borrowing Cost that are directly attributable to the acquistion/ construction of the qualifying asset are capitalised until the time all the substantial activities neceessary to prepare such assets for the intended use are complete. All other borrowing costs are recognised as expenditure during the period in which they are incurred.

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Mar 31, 2013

A. Change in Accounting Policy

Presentation & Disclosure in financial statements

During the year ended 31.03.2013 the revised Schedule VI notified under the Companies ACT 1956,has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements by the company. However, it has significant impact on presentation & disclosures made in the financial statements. The company has also reclassified the previous year''s figures in accordance with the requirements applicable in the current year.

b. Use of estimates

The preparation of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

c. Fixed assets - AS 10

Fixed assets are stated at historical cost of acquistion/construction inclusive of duties (net of cenvat), taxes, incidental expenses and erection/commissioning expenses up to the date the asset is ready for intended use.

d. Depreciation/ Amortisation - AS 6

On fixed assets, depreciation is provided on written down value method. The rates of depreciation prescribed in Schedule XIV of the Companies Act, 1956, are considered as minimum rates.

e. Impairment of assets - AS 28

At each Balance Sheet date, management assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the present value as determined above. Actual results could differ from those estimates.

f. Inventories - AS 2

Since the company does not have any inventory, the provisions of AS -2 are not applicable to the company.

g. Revenue recognition- AS 9

i) Sales

Revenue is recognized to the extent that it is probable the economic benefits will flow to the company and revenue can be reliably measured. Revenue from sale of goods is when all the significant risks & rewards of ownership of the goods have been passed to the recognized buyers, usually on delivery of the goods. The provisions of AS -9 are complied to the extent applicable to the company.

ii) Income & Expenditure

Income and Expenditure are accounted for on accrual basis, wherever ascertainable.

h. Investments - AS 13

As per the provisions of AS 13 investments which are readily reliable 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/Non Current Investments.

Long term investments are carried at cost unless there is diminution (other than temporary ) in the value of investments.

i. Employee benefits- AS 15

Short-term employees benefits are recognized as an expenses in the Profit & Loss Account of the year in which the related service is rendered.

Regarding post employment benefits the company maintains gratuity fund with Life Insurance Corporation of India Contributions payable to the recognized provident fund, which is a defined contribution scheme, are charged to the profit and loss account when incurred. Actuarial valuation is made by the LIC on the basis of data given by the company.

j. Foreign exchange transactions- AS 11

Since the company did not have any foreign exchange transactions, the provisions of AS -11 are not applicable to the company.

k. Contingencies - AS 29

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognized because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

l. Taxation- AS 22

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred tax resulting from "timing differences " between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be released in future.

m. Government Grants- AS 12

i) Government Grants related to fixed assets are adjusted with the value of fixed assets/credited to capital reserve.

ii) Govt Grants related to revenue items are adjusted with the related expenditure/taken on income.

n. Borrowing Cost- AS 16

Borrowing Cost that are directly attributable to the acquisition/ construction of the qualifying asset are capitalized until the time all the substantial activities necessary to prepare such assets for the intended use are complete. All other borrowing costs are recognized as expenditure during the period in which they are incurred.

Basic earnings per share has been calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The Company does not have any dilutive potential equity shares as at 31st March 2013.

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Mar 31, 2011

Back Ground

Brahmanand Himghar Ltd was incorporated as a private limited company under the name and style as Brahmanand Development Pvt Ltd on 21st June 1990 to engage in the business of investment related activities. The Company in the year 1998 diversified into cold storage business by setting up 14,000 M.T. Cold storage in Midnapore district for preservation of potatoes and changed its name to Brahmanand Himghar Limited with effect from 29th April 1998. The Company went for public issue in the year 2004. The Company has set up another 4,100 M.T. cold storage unit in Tamolia in the state of Jharkhand.

1. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian rupees.

2. Use of estimates

The prepration of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contigent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

3. Fixed assets

Fixed assets are stated at historical cost of acquisition/construction inclusive of duties (net of cenvat), taxes, incidental expenses and erection/commissioning expenses up to the date the asset is ready for intended use.

4. Depreciation/Amortisation

On fixed assets, depreciation is provided on written down value method. The rates of depreciation prescribed in Schedule XIV of the Companies Act, 1956, are considered as minimum rates.

5. Impairment of assets

At each Balance Sheet date, management assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the present value as determined above. Actual results could differ from those estimates.

6. Inventories

Finished goods are valued at the lower of cost and net realisable value.

7. Revenue recognition

a. Sales

Revenue is recognised on the sale of goods to customer which generally coincides at the time of delivery of the goods.

b. Income & Expenditure

Income and expenditure are accounted for on accrual basis, wherever ascertainable.

8. Investments

Investments are classified as long term investments

Long term investments are carried at cost unless there is dimunition (other than temporary) in the

value of investments.

9. Employee benefits

Short-term employees benefits are recognised as an expenses in the Profit & Loss Account of the year in which the related service is rendered.

Regarding post employment benefits the company maintains gratuity fund with Life Insurance Corporation of India

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the profit and loss account when incurred. Acturial valuation is made by the LIC on the basis of data given by the company.

10. Foreign exchange transactions

The Company during the year did not have foreign exchange transaction.

11. Contingencies

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognised because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

12. Taxation

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred tax resulting from "timing differences " between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be reliased in future.

13. Government Grants

a) Government Grants related to fixed assets are adjusted with the value of fixed assets/credited to capital reserve.

b) Government Grants related to revenue items are adjusted with the related expenditure/ taken on income.

14. Borrowing Cost

Borrowing Cost that are directly attributable to the acquistion/ construction of the qualifying asset are capitalised until the time all the substantial activities neceessary to prepare such assets for the intended use are complete. All other borrowing costs are recognised as expenditure during the period in which they are incurred.

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Mar 31, 2010

1. Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting following generally accepted accounting principles in India (GAAP) and

comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956, to the extent applicable. The financial statements are presented in Indian rupees.

2. Use of estimates

The prepration of the financial statements in the conformity with the GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contigent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

3. Fixed assets

Fixed assets are stated at historical cost of acquistion/construction inclusive of duties (net of cenvat), taxes, incidental expenses and erection/commissioning expenses up to the date the asset is ready for intended use.

4. Depreciation/ Amortisation

On fixed assets, depreciation is provided on written down value method. The rates of depreciation prescribed in Schedule XIV of the Companies Act, 1956, are considered as minimum rates.

5. Impairment of assets

At each Balance Sheet date, management assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the present value as determined above. Actual results could differ from those estimates.

6. Inventories

Finished goods are valued at the lower of cost and net realisable value.

7. Revenue recognition

a. Sales

Revenue is recognised on the sale of goods to customer which generally coincides at the time of delivery of the goods.

b. Income & Expenditure

Income and expenditure are accounted for on accrual basis, wherever ascertainable.

8. Investments

Investments are classified as long term investments Long term investments are carried at cost unless there is dimunition (other than temporary ) in the value of investments.

9. Employee benefits

Short-term employees benefits are recognised as an expenses in the Profit & Loss Account of the year in which the related service is rendered.

Regarding post employment benefits the company maintains grautuity fund with Life Insurance Corporation of India

Contributions payable to the recognised provident fund, which is a defined contribution scheme, are charged to the profit and loss account when incurred. Acturial valuation is made by the LIC on the basis of data given by the company.

10. Foreign exchange transactions

The Company during the year did not have foreign exchange transaction.

11. Contingencies

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise, or is a present obligation that arises from past events but is not recognised because either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate of the amount of the obligation cannot be made.

12. Taxation

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961. Deferred tax resulting from "timing differences " between taxable and accounting income is accounted for using the tax rate and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be reliased in future.

13. Government Grants

a) Government Grants related to fixed assets are adjusted with the value of fixed assets/credited to capital reserve.

b) Government Grants related to revenue items are adjusted with the related expenditure/taken on income.

14. Borrowing Cost

Borrowing Cost that are directly attributable to the acquistion/ construction of the qualifying asset are capitalised until the time all the substantial activities neceessary to prepare such assets for the intended use are complete. All other borrowing costs are recognised as expenditure during the period in which they are incurred.