Accounting Policies of Archana Software Ltd. Company

Mar 31, 2015

1. Basis of Preparation of financial statements

a) The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles and the provisions of the Companies Act, 1956.

b) Accounting policies not specifically referred to otherwise are consistent throughout the year under audit and in consonance with generally accepted Accounting Principles followed by the company.

2. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and any directly attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is provided as per Companies Act 2013

3. Revenue Recognition:

All Income and Expenditure items having a material bearing on the statements are recognized on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold and transactions in textile products.

5. Related Party Disclosures:

Particulars of transactions with related parties during the year

Purchase of Goods

From Shakthi Knitting Limited Rs.2,98,19,111

Sale of Goods

To Shakthi Knitting Limited Rs.2,47,92,917

6. Segment information for the year ended 31st March, 2015

As the company’s business is only Software segment and no other segment is there which requires reporting.

---

Mar 31, 2014

1. Basis of Preparation of financial statements

a) The financial statements have been prepared under the historical cost convention in accordance wit generally accepted Accounting Principles and the provisions of the Companies Act, 1956.

b) Accounting policies not specifically referred to otherwise are consistent throughout the year under audit an in consonance with generally accepted Accounting Principles followed by the company.

2. Fixed Assets:

) Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and an directly attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use on written down value method at the rates and in the manner specified under Schedule XIV to the Companies Act, 1956.

3. Revenue Recognition:

All Income and Expenditure items having a material bearing on the statements are recognized on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold and transactions in textile products.

5. Related Party Disclosures:

Particulars of transactions with related parties during the year Purchase of Goods

From Shakthi Knitting Limited Rs.75,06,550

Sale of Goods

To Shakthi Knitting Limited Rs.2,87,33,275

6. Segment information for the year ended 31st March, 2014

As the company''s business is only Software segment and no other segment is there which requires reporting.

7. Earning Per Share

2013 - 14 2012 - 13

a. Weighted averages number of Equity Shares of Rs.10/- each

i. number of shares at the beginning of the year 60,43,950 60,43,950

ii. number of share at the end of the year 60,43,950 60,43,950

Weighted average number of equity Share outstanding during the year 61,43,425 61,43,425

a. Net Profit/(Loss) available for equity shareholders 1,87,865 (78,641)

b. Basic and diluted earning per share (in Rupees)

EPS (diluted) NIL NIL

---

Mar 31, 2013

1. Basis of Preparation of financial statements

- The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles and the provisions of the Companies Act, 1956.

- Accounting policies not specifically referred to otherwise are consistent throughout the year under audit and in consonance with generally accepted Accounting Principles followed by the company.

2. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and any directly attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use on a written down value method at the rates and in the manner specified under Schedule XIV to the Companies Act,19S6.

3. Revenue Recognition:

All Income and Expenditure items having a material bearing on the statements are recognized on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold and transactions in textile products.

5. Related Party Disclosures:

There are no related party transactions as envisaged in Accounting Standard 18 pertaining to Related Party disclosures.

6. Segment information for the year ended 31* March, 2013

As the company''s business is only Software segment and no other segment is there which requires reporting.

---

Mar 31, 2012

1. Basis of Preparation of financial statements

-The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles and the provisions of the Companies Act, 1956.

-Accounting policies not specifically referred to otherwise are consistent throughout the year under audit and in consonance with generally accepted Accounting Principles followed by the company,

2. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and any directly attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use on a written down value method at the rates and in the manner specified under Schedule XIV to the Companies Act,1956.

3. Revenue Recognition:

All Income and Expenditure items having a material bearing on the statements are recognized on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold and transactions in textile products.

5. Related Party Disclosures:

There are no related party transactions as envisaged in Accounting Standard 18 pertaining to Related Party disclosures.

6. Segment information for the year ended 31st March, 2012

As the company''s business is only Software segment and no other segment is there which requires reporting.

---

Mar 31, 2010

1. Basic of Preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles and like provisions of the Companies Act, 1956.

Accounting policies rut specifically referred to otherwise are consistent throughout the year under audit and in consonance with generally accepted Accounting Principles followed by the company.

2. Fixed Assets :

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and any directly attributable cost of bringing the assets to its working condition tor its intended use.

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use on a written down value method at the rates and in the manner specified under Schedule XIV to the Companies Act, 1956.

3. Revenue Recognition:

All Income and Expenditure items having a material bearing on the statements are recognised on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold.

5. Related Party Disclosure:

There are no related party transactiona as envisaged in Accounting Standard 18 pertaining to Related Party disclosures.

6. Segment Information for the year ended 31st March, 2010

As the companys business is only Software segment and no other segment is there which requires reporting.

---

Mar 31, 2009

1. Basis of Preparation of financial statements

- The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles and the provisions of the Companies Act, 1956.

- Accounting policies are not specifically referred to otherwise are consistent throughout the year under audit and in consonance with generally accepted Accounting Principles followed by the company.

2. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and any directly attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use on a written down value method at the rates and in the manner specified under Schedule XIV to the Companies Act, 1956.

3. Revenue Recognition:

All Income and Expenditure items having a material bearing on the statements are recognized on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold.

5. Related Party Disclosures:

There are no related party transactions as envisaged in Accounting Standard 18 pertaining to Related Party disclosures.

6. Segment information for the year ended 31 st March, 2009

As. the companys business is only Software segment and no other segment is there which requires reporting.

---

Mar 31, 2008

1. Basis of Preparation of financial statements

The financial statements have been prepared under the historical cost convention in accordance with generally accepted Accounting Principles and the provisions of the Companies Act, 1956.

Accounting policies not specifically referred 1o otherwise are consistent throughout the year under audit and in consonance with generally accepted Accounting Principles followed by the company.

2. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of purchase price, import duties, levies and any directly attributable cost of bringing the assets to its working condition for its intended use.

Depreciation is provided on a pro-rata basis, from the date the assets have been installed and put to use on a written down value method at the rates and in the manner specified under Schedule XIV to the Companies Act, 1956,

3. Revenue Recognition;

All Income and Expenditure items having a material bearing on the statements are recognized on accrual basis.

4. Income From operation:

Income From operation consists of the ERP Software product sold,

5. Related Party Disclosures:

There are no related party transactionms as envisaged in Accounting Standerd 18 pertaining to Related Party disclosures.

6. Segment information for the year ended 31st March, 2008

As the companys business is only Software segment and no other segment is there which requires reporting.