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Accounting Policies of Aarya Global Shares & Securities Ltd. Company

Mar 31, 2014

1. Basis of Preparation of Financial Statements.

The Financial statements are prepared under the historical cost convention, on an accrual basis, in accordance with the normally accepted Accounting PrinciplesAnd Provisions of the Companies Act, 1956.

Accounting Policies not specifically referred to are consistent with generally acceptedAccounting Policies.

2. Use of estimates

The Preparation and presentation of financial statement in conformity with Generally Accepted Accounting Principles requires making of estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting year. Differences between the actual result and estimates are recognized in the year in which the results are known/materialized.

3. Revenue Recognition

Sales are recognized when risk and rewards of ownership are passed on to the customers. Interest income is recognized on time proportion basis. Other revues are recognized when they had accrued.

4. Segment Reporting

The Company is dealing in shares and investments, have its income from interest dividend and brokerage, hence segment reporting is not applicable to the Company.

5. FixedAssetsand Depreciation/Amortization

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment, if any. Cost is inclusive of freight, duties, taxes and other directly attributable costs incurred to bring the assets to their working condition for intended use. Depreciation is charged using straight line method based on the useful lives of the fixed assets as estimated by the management as specified below, or the rates specified in accordance with the provision of schedule XIV of the Companies Act, 1956, whichever is higher.

Depreciation is charged on a pro-rata basis for assets purchased/sold during the year.

6. Investments

Short term Investments (Quoted) are valued at cost or market whichever is less Long Term Investments(Quoted) are valued at cost Other unquoted investments are valued at cost basis.

7. Impairment ofAssets

No impairment ofAssets has been identified during the current period.

8. Employee benefits

The provision of Gratuity and P. F do not apply to this company.

9. Taxes on Income

Income-tax expenses comprises current tax (i.e. amount of tax for the year determined in accordance with the income tax laws) and deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the year).

10. Borrowing cost

Borrowing cost directly attributable to acquisition or construction of qualifying assets (i.e. those fixed assets which necessarily take a substantial period of time to get ready for their intended use) are capitalized.

Other borrowing costs are recognized as an expenses in the period in which they are incurred.

11. Provision, Contingent Liabilities and Contingent Assets

Provision are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation. Contingent Assets are not recognized in financial statements as they may never be realized.

12. Miscellaneous Expenditure

Preliminary expenses had been fully written off in earlier years.

13. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting taxes) by the weighted average number of equity shares outstanding during the year.


Mar 31, 2013

1. Basis of Preparation of Financial Statements.

The Financial statements are prepared under the historical cost convention, on an accrual basis, in accordance with the normally accepted Accounting Principles And Provisions of the Companies Act, 1956.

Accounting Policies not specifically referred to are consistent with generally accepted Accounting Policies.

2. Use of estimates

The Preparation and presentation of financial statement in conformity with Generally Accepted Accounting Principles requires making of estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting year. Differences between the actual result and estimates are recognized in the year in which the results are known/materialized.

3. Revenue Recognition

Sales are recognized when risk and rewards of ownership are passed on to the customers. Interest income is recognized on time proportion basis. Other revues are recognized when they had accrued.

4. Segment Reporting

The Company is dealing in shares and investments, have its income from interest dividend and brokerage, hence segment reporting is not applicable to the Company.

5. Fixed Assets and Depreciation/Amortization

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment, if any. Cost is inclusive of freight, duties, taxes and other directly attributable costs incurred to bring the assets to their working condition for intended use. Depreciation is charged using straight line method based on the useful lives of the fixed assets as estimated by the management as specified below, or the rates specified in accordance with the provision of schedule XIV of the Companies Act, 1956, whichever is higher.

Depreciation is charged on a pro-rata basis for assets purchased/sold during the year.

6. Investments

Short term Investments (Quoted) are valued at cost or market whichever is less

Long Term Investments(Quoted) are valued at cost Other unquoted investments are valued at cost basis.

7. Impairment of Assets

No impairment of Assets has been identified during the current period.

8. Employee benefits

The provision of Gratuity and P. F do not apply to this company.

9. Taxes on Income

Income-tax expenses comprises current tax (i.e. amount of tax for the year determined in accordance with the income tax laws) and deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the year).

10. Borrowing cost

Borrowing cost directly attributable to acquisition or construction of qualifying assets (i.e. those fixed assets which necessarily take a substantial period of time to get ready for their intended use) are capitalized.

Other borrowing costs are recognized as an expenses in the period in which they are incurred.

11. Provision, Contingent Liabilities and Contingent Assets

Provision are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation. Contingent Assets are not recognized in financial statements as they may never be realized.

12. Miscellaneous Expenditure

Preliminary expenses had been fully written off in earlier years.

13. Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting taxes) by the weighted average number of equity shares outstanding during the year.


Mar 31, 2011

(i) Method of Accounting

a. The financial statements are prepared under the historical cost convention in accordance with generally accepted accounting principles and the requirements of the Companies Act, 1956.

b. The Company generally follows accrual system of accounting and recognizes significant items of income & Expenditure on accrual basis.

(ii) Amortization of Miscellaneous Expenditure

a. Registration Charges are amortized over a period of ten years.

b. Deffered Revenue Expenditure: Expenses incurred for providing amenities at the office premises are amortised over the period of the lease.

(iii) Employees Retirement Benefits

Gratuity, Provident Fund and Other Retirement Scheme are not applicable and hence the Company accounts Gratuity on payment basis.


Mar 31, 2010

I Basis of Accounting

The accounts are prepared according to the historical cost convention as a going concern on accrual basis (except wherever stated otherwise ) and materially comply with the mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act , 1956.

ii. Sales

a) Sales of goods are recognized at the point of dispatch of goods to customers.

b) Sales are exclusive of Excise Duty and shown Net of Returns.

c) Sales returns are accounted for on cash basis.

iii. Investments

Investments are stated at acquisition cost.

iv. Inventories

a) Inventories are valued as under

- Finished goods are valued at lower of cost and realizable value , whichever is less.

v. Provision for current and deferred tax

Provision for current Income-Tax is ascertained on the basis of assessable profit computed in accordance with the provisions of the Income-Tax Act, 1961

Deferred tax resulting for timing difference between book and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.

vi. Miscellaneous Expenditure

Preliminary expenditure is being written off over a period of ten years. Public issue expenses are being written off over a period of ten years.

vii. Retirement Benefits

The Company is not liable to pay gratuity and provident fund, hence no provision is made in the accounts for the same.

viii. Contingent liabilities

Provision is made for all known liabilities which are disclosed at their estimate value, whichever is applicable.

ix. Borrowing Costs

Borrowing costs that are directly attributable to the acquisition, construction or commission of a capital asset are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred

x. Foreign Currency

There are no Foreign Currency Transactions during the year hence no valuations on closing exchange rates of current Assets & Liabilities and calculation of foreign exchange gain/ loss was not made.

xi. Impairment of Assets

At each Balance Sheet date an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists , an impairment loss i.e the amount by which the carrying amount of an asset exceed its recoverable amount is provided in the books of accounts.

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