Accounting Policies of Aroma Enterprises (India) Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statements

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. Use of Estimates

The preparation of Financial Statements in conformity with Indian GAAP requires estimates and assumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Fixed Assets

Fixed Assets are capitalized at cost less accumulated depreciation inclusive of purchase price, duties and other non refundable taxes, direct attributable cost of bringing asset to its working condition and financing cost till commercial production. Projects, if any, under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

4. Depreciation / Amortization

Depreciation on fixed assets is provided on Written Down Value Method (WDV) at the rates and in the manner prescribed under Part C of Schedule II of the Companies Act 2013 on prorata basis.

5. Inventories

The inventories are stated at lower of cost and net realizable value, after providing for obsolescence, if any. Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing inventory to the present location and condition and valuation is inclusive of taxes and duties incurred on same.

6. Revenue Recognition

Revenue from sales transactions is recognized on transfer of significant risk and rewards of ownership, which generally is on the dispatch of goods. Revenue from services is recognized upon rendering of services. Interest Income is recognized on accrual basis, if any.

7. Investment

Investments are classified as Current &Non Current Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current investments are valued at cost.

Company has not held or made any investments during the year under review.

8. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c.

9. Taxation

Tax expenses for the Period comprise of current tax and deferred tax. Current tax is measured as amount of tax payable in respect of taxable income for current Period as per Income Tax Act 1961 after considering tax allowances and exemptions, if any. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that originate in one Period and are capable of reversal in one or more subsequent Period.

10. Leases Operating Lease

Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss account on a Straight Line Basis over the Lease term.

11. Impairment of Assets

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss in the Period in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss".

12. Earnings per Share

In determining the Earnings Per share, the company considers the net profit after tax/(loss) which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.

13. Related Party Transactions

As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Standards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;

1. Key Managerial Personnel (KMP's) -

a) Mr. Keshava Kalidas Kannan - C.E.O.

b) Mr. Ritesh Baldevbhai Patel - C.F.O.

c) Mr. Ankit Shukla - C.S.

2. Relatives of Key Management Personnel -

Name of the Party Nature of Relation

1) Jalpa Patel (Director) Wife of Ritesh Patel

3. Parties where control exists -

Name of the Party Nature of Control

Not Applicable Not Applicable

15. Contingent Liabilities & Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made.

Contingent Liability is disclosed for, by way of note for -

a) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or

b) Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

c) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

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Mar 31, 2014

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the accounting standards prescribed under Section 211(3C] of the Companies Act, 1956.

2. Use of Estimates

Theses financial statements have been prepared on the basis of estimates, wherever necessary, which have an effect on the reported amounts of assets and liabilities as on the date of the statements and the reported amounts of income and expenditure for the reporting period. The difference between actuals and estimates is recognized in the subsequent period when the actuals are known.

3. Revenue Recognition

[a] Interest income is accounted for on an accrual basis.

4. Fixed Assets and Depreciation

During the year under review, there were no fixed assets and no depreciation has been calculated

5. Investments

Current investment include all securities which are intended to be held to maturity or for a period not less than one year Long Term Investments are carried at cost less provision for permanent diminution in the value of such investments, if any. Current Investments are carried at the lower of cost and market value.

Company has not held or made any investments during the year under review.

6. Retirement Benefits

There were no employees during the year under review. Hence no provision requirement for retirement''s benefits was applicable and provided in the books of accounts of the Company.

7. Deferred Tax

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets including asset arising from unabsorbed depreciation and losses carried forward, are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax can be realized.

8. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes.

9. Earning Per Share

Earning per shares has been arrived by taking into consideration the profit after tax divided by the weighted average number of shares for the relevant financial year. The same is arrived as per Accounting Standards - 20 to determine the comparison of performance among different enterprises for the same period and among different periods for the same enterprises. Separate disclosure has been made for the earnings per share in notes to accounts.

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Mar 31, 2013

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the accounting standards prescribed under Section 211(3C) of the Companies Act, 1956 and the practices prevailing within the broking industry in India.

2. Use of Estimates

Theses financial statements have been prepared on the basis of estimates, wherever necessary, which have an effect on the reported amounts of assets and liabilities as on the date of the statements and the reported amounts of income and expenditure for the reporting period. The difference between actuals and estimates is recognized in the subsequent period when the actuals are known.

3. Revenue Recognition

(a) Income is accounted in the books of accounts on accrual basis.

(b) Interest income is accounted for on an accrual basis.

4. Fixed Assets and Depreciation

During the year under review, there were no fixed assets and no depreciation has been calculated

5. Investments

Investments include all securities which are intended to be held to maturity or for a period not less than one year.

Long Term Investments are carried at cost less provision for permanent diminution in the value of such investments, if any. Current Investments are carried at the lower of cost and market value.

6. Retirement Benefits

There were no employees during the year under review. Hence no provision requirement for retirements benefits was applicable and provided in the books of accounts of the Company.

7. Deferred Tax

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets including asset arising from unabsorbed depreciation and losses carried forward, are not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax can be realised.

8. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

9. Earning Per Share

Earning per shares has been arrived by taking into consideration the profit after tax divided by the weighted average number of shares for the relevant financial year. The same is arrived as per Accounting Standards – 20 to determine the comparison of performance among different enterprises for the same period and among different periods for the same enterprises. Separate disclosure have been made for the earnings per share excluding extraordinary items.

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Mar 31, 2012

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting Ln accordance with the accounting standards prescribed under Section 21t(3C) of the Companies Act, 1956 and the practices prevailing within the broking industry in India

2. Use of Estimates

Theses financial statements have been prepared on the basis of estimates, where ever necessary, which have an effect on the reported amounts of assets and liabilities as on the date of tile statements and the reported amounts of income arid expenditure tor the comporting period. The difference between actual and estimates is recognized in the subsequent period when the actual are known.

3. Revenue Recognition

(a) Income is accounted in the focus of accounts on accrual basis.

(b) Interest income is accounted for on an accrual basis.

1. Fixed Assets and Depreciation

During the year under review, there were no fixed assets and no depreciation has been calculated

5. Investments

Investments include all securities which are intended to be held to maturity or for a penned net less 1han one year.

Long Term Investments are carried s1t cost less provision for permanent diminution in the value of such investments, if any. Current Investments are earned at the Lower of cost and market value

6. Retirement Benefits

There were no employees during the year under review. Hence no provision requirement for requirement benefits was applicable and provided in the books of accounts of the company.

7. Deferred Tax

Deferred tax is recognized, subject to the consideration of prudence in respect o: deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets including asset arising from unabsorbed depreciation and losses carried forward, are recognized unless ''here is Virtual certa.nty that sufficient future taxable income will be available against which such deferred tax can be realized.

9. Provisions, Contingent Liabilities and Contingent Assets

Provisions Involving substantial degree of estimation In measurement are recognized ''when there is a present Obligation as a result of past events and it is probable that there will bow an outflow of resources. Contingent Liabilities are not recognized but Die disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

10. Earning Portlier

Earning per shares leas been arrived by taking into consideration He profit after lax divided been the weighted average number of shares for the relevant financial year. The same is arrived as per Accounting Standards - 20 tax determine the comparison of performance among different enterprises to the same period and among different periods for the same enterprises. Separate disclosure have been made for the earnings per share excluding extraordinary items.

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Mar 31, 2011

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the accounting standards prescribed under Section 211(3C) of the Companies Act, 1956 and the practices prevailing within the broking industry in India.

2. Use of Estimates

Theses financial statements have been prepared on the basis of estimates, wherever necessary, which have an effect on the reported amounts of assets and liabilities as on the date of the statements and the reported amounts of income and expenditure for the reporting period. The difference between actuals and estimates is recognized in the subsequent period when the actuals are known.

3. Revenue Recognition

(a) Income is accounted in the books of accounts on accrual basis.

(b) Interest income is accounted for on an accrual basis.

4. Fixed Assets and Depreciation

During the year under review, there were no fixed assets and no depreciation has been calculated

5. Investments

Investments include all securities which are intended to be held to maturity or for a period not less than one year.

Long Term Investments are carried at cost less provision for permanent diminution in the value of such investments, if any. Current Investments are carried at the lower of cost and market value.

6. Retirement Benefits

There were no employees during the year under review. Hence no provision requirement for retirements benefits was applicable and provided in the books of accounts of the Company.

7. Deferred Tax

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets including asset arising from unabsorbed depreciation and losses carried forward, are not recognised unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax can be realised.

9. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the Notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

10. Earning Per Share

Earning per shares has been arrived by taking into consideration the profit after tax divided by the weighted average number of shares for the relevant financial year. The same is arrived as per Accounting Standards - 20 to determine the comparison of performance among different enterprises for the same period and among different periods for the same enterprises. Separate disclosure have been made for the earnings per share excluding extraordinary items.