Home  »  Company  »  Khyati Multimedi  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Khyati Multimedia Entertainment Ltd. Company

Mar 31, 2014

A. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to the judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b. Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any, The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repaired maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit & loss when the asset is de recognized.

d. Depreciation on Tangible Fixed Asset

Depreciation on fixed asset is calculated on Straight Line method using the rates prescribed under the Schedule XIV to The Companies Act, 1956.

e. Investments

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

f. Long term investments are carried at cost. However, provision for diminution in value is to he made to recognize a decline other than temporary in the value of investments.

h. Income Tax

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act. 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted, at the reporting dale.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

i. Earnings per share.

Basic earnings per share arc computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

j. Provisions and Contingent liabilities

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

Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

K .Cash & Cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

L. Retirement Benefits

The provision of payment of Gratuity is not applicable and hence no policy is made in respect of the same.


Mar 31, 2013

A. Use of Estimates ,

The preparation of financial statements in conformity with Indian GAAP requires the management to ¦jnake judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets. . and liabilities and the disclosure of contingent liabilities, at &s end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

b. Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the assets to its voi-king condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its bock value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day to day repaired maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit & loss when the asset is de recognized.

c. Depreciation on Tangible Fixed Asset

Depreciation on fixed asset is calculated on Straight Line method using the rates prescribed under the Schedule XIV to The Companies Act, 1956.

d. 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. .

Long term investments are carried at cost. However, provision for diminution in value is to be made to ¦recognize a decline other than temporary in the value of investments.

e. Income Tax

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdiction where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted, at the reporting date.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

f.Earnings per share.

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

g.Provisions and Contingent liabilities

A provision is recognized when the Company has a present obligation as a result of past event. It is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to s< ttle the obligation at the. reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimate.

Where no reliable estimate can be made, a disclosure is made as a contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

h.Cash & Cash equivalents

Cash and cash equivalents comprise cash and cash on deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

i Retirement Benefits

The provision of payment of Gratuity is not applicable and hence no policy is made in respect of the same.


Mar 31, 2011

(A) ACCOUNTING CONVENTION

The financial statements are prepared on accrual basis of accounting in the preparation of the books of account.

(B) FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided as per S.L.M. method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

(C) INVESTMENTS

Investments are stated at cost.

(D) RETIREMENT BENEFITS

The Provision of payment of Gratuity are not applicable and hence no policy is evolved in respect of the same.

(E) CONTINGENT LIABILITY

Contingent Liabilities are determined on the basis of available information.

(F) INCOME TAXES

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.


Mar 31, 2010

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

(A) ACCOUNTING CONVENTION

The financial stah ments are prepared on accrual basis of accounting in the preparation of the looks of account.

(B) FIXED ASSETS AND DEPRECIATION

Fixed assets are steted at cost less accumulated depreciation.

Depreciation is provided as per S.L.M. method as per the rates prescribed in Schedule XIV ofthj; Companies Act, 1956.

(C) INVESTMENTS Investments are stated at cost.

(D) RETIREMENT BENEFITS

The Provision of payment of Gratuity are not applicable and hence no policy is evolved in respect of the same.

(E) CONTINGENT LIABILITY

Contingent Liabilities are determined on the basis of available information.

(F) INCOME TAXES

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.


Mar 31, 2009

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

(A) ACCOUNTING CONVENTION

The financial statements are prepared on accrual basis of accounting in the preparation of the books of account.

(B) FIXED ASSETS AND DEPRECIATION

Fixed assets are stated at cost less accumulated depreciation.

Depreciation is provided as per S.L.M. method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

(C) INVESTMENTS

Investments are stated at cost.

(D) RETIREMENT BENEFITS

The Provision of payment of Gratuity are not applicable and hence no policy is evolved in respect of the same.

(E) CONTINGENT LIABILITY

Contingent Liabilities are determined on the basis of available information.

(F) INCOME TAXES

(i) Current tax is measured at the amount expected to be paid to the taxation authorities, using the applicable tax rates and lax laws.

(ii) Deferred tax assets and liabilities are measured using Ihe tax rates and tax laws that have been announced up In the Balance Sheet date. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to tinting differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

 
Subscribe now to get personal finance updates in your inbox!