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Accounting Policies of Kilburn Office Automation Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements

These financial statements have been prepared to comply with the Generally Accepted Accounting Principals in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions ofthe Companies Act, 2013.

B) Systemof Accounting

The financial statements have been prepared under the historical cost convention using accrual method ofaccounting.

C) Use of Estimates

The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets & liabilities disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenue and expenses for the year. Actual results could differ from these estimates.

D) Revenue Recognition

Sales represent invoiced value of goods supplied including excise duty but exclude sales tax. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

E) Fixed Assets and Depreciation

Fixed Assets are carried at cost less Depreciation. Cost includes inward freight, duties and taxes and expenses incidental to acquisition and installation and also a share of pre-operative expenses in case of assets acquired/constructed before commencement of commercial production. Assets acquired under Hire Purchase agreement have been capitalized as peraccepted accounting practices although the ownership on such assets will vest on a future date.

All fixed assets are depreciated on straight-line method. Depreciation is provided based on useful life ofthe assets as prescribed in Schedule II to the Companies Act, 2013.

Profit or Loss on disposal of fixed asset is recognized in Statement of Profit & Loss. An impairment loss is recognized where applicable when the carrying value offixed assets exceeds their resale value orvalue in use whichever is higher.

F) Inventories

Finished Goods and Components are valued at lower of cost (weighted average) or net realizable value.

G) Foreign Currency Transactions

Transactions in foreign currency are recorded in rupees by applying the rate of exchange ruling on the date of transaction. Gain or loss on settled transactions is recognized in Profit & Loss Account except for fixed assets acquired from a company outside India, which are adjusted to carrying amount offixed assets. Unsettled transactions as at the year-end are translated at the closing rate and the gain or loss is recognized in Profit & Loss Account except for liabilities incurred for purchase of fixed assets, which are adjusted to the carrying amount offixed assets.

H) Government Grants

Subsidies received on capital account are credited to Capital Reserve.

I) Retirement Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. The Company contributes to Provident Fund and Superannuation Fund which is administered by duly constituted and approved independent Trust / Government and such contributions are charged against revenue every year.

The Company's liability in respect of gratuity payable in future to employees is actuarially ascertained every year and is funded with Life Insurance Corporation of India under Group Gratuity Scheme. The Company's liability in respect of leave encashment payable in future to employees is actuarially ascertained every yearand is funded in Fixed Deposits with Banks.

J) Provision for Current and Deferred Tax

Current Tax represents the amount that would be payable based on computation of tax as per the prevailing taxation laws underthe Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income thatoriginate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are only recognized if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

K) 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 nordisclosed in the financial statements.

Defined Benefit Plan

The employees' gratuity fund scheme is lying with Life Insurance Corporation of India and it is a defined benefit plan. The presentvalue ofobligation is determined based on actuarial valuation using the Projected Unit Credit Method. Underthe PUC method a 'projected accrued benefit' is calculated at the beginning of the year and again at the end of the year for each benefit that will accrue for all active members ofthe plan. The 'projected accrued benefit' is based on the Plan's accrual formula and upon service as of the beginning or end of the year, but using a members final compensation, projected to the age at which the employee is assumed to leave active service. The Plan Liability is the actuarial present value of the 'projected accrued benefits, as of the beginning of the yearfor active members.

The employees leave encashment is funded and is lying with HDFC Standard Life Insurance Company Limited and it is defined benefitscheme (In FY 2013-14). The Defined benefitscheme is recognised in the same manner as gratuity.


Mar 31, 2014

A) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention and in accordance with the generally accepted Accounting Standards in India. The financial statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

B) System of Accounting

The financial statements have been prepared under the historical cost convention using accrual method of accounting.

C) Use of Estimates

The preparation of the financial statements in conformity with the accounting standards generally accepted in India requires the management to make estimates that affect the reported amount of assets & liabilities disclosure of contingent liabilities as at the date of the financial statement and reported amounts of revenue and expenses for the year. Actual results could differ from these estimates.

D) Sales / Revenue Recognition

Sales represent invoiced value of goods supplied including excise duty but exclude sales tax.

E) Fixed Assets and Depreciation

Fixed Assets are carried at cost less Depreciation. Cost includes inward freight, duties and taxes and expenses incidental to acquisition and installation and also a share of pre-operative expenses in case of assets acquired/constructed before commencement of commercial production. Assets acquired under Hire Purchase agreement have been capitalized as per accepted accounting practices although the ownership on such assets will vest on a future date.

All fixed assets are depreciated on straight-line method in accordance with Schedule XIV (as amended) of the Companies Act, 1956, except for office equipments which are given on rentals are provided at higher rate.

Profit or Loss on disposal of fixed asset is recognized in Statement of Profit & Loss.

An impairment loss is recognized where applicable when the carrying value of fixed assets exceeds their resale value or value in use whichever is higher.

F) Inventories

Raw materials and Work in Process is valued at Cost or Net Realizable Value whichever is lower. Finished Goods and Components are valued at lower of cost (weighted average) or net realizable value.

G) Foreign Currency Transactions

Transactions in foreign currency are recorded in rupees by applying the rate of exchange ruling on the date of transaction. Gain or loss on settled transactions is recognized in Profit & Loss Account except for fixed assets acquired from a company outside India, which are adjusted to carrying amount of fixed assets. Unsettled transactions as at the year-end are translated at the closing rate and the gain or loss is recognized in Profit & Loss Account except for liabilities incurred for purchase of fixed assets, which are adjusted to the carrying amount of fixed assets.

H) Government Grants

Subsidies received on capital account are credited to Capital Reserve.

I) Retirement Benefits

Short-term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. The Company contributes to Provident Fund and Superannuation Fund which is administered by duly constituted and approved independent Trust / Government and such contributions are charged against revenue every year.

The Company''s liability in respect of gratuity payable in future to employees is actuarially ascertained every year and is funded with Life Insurance Corporation of India under Group Gratuity Scheme.

The Company''s liability in respect of leave encashment payable in future to employees is actuarially ascertained every year and is funded with HDFC Standard Life under Kilburn Office Automation Leave Encashment Fund.

J) Provision for Current and Deferred Tax

Current Tax represents the amount that would be payable based on computation of tax as per the prevailing taxation laws under the Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are only recognized if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

K) 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.


Mar 31, 2012

A) Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention and in accordance with the generally accepted Accounting Standards in India. The financial statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

B) Fixed Assets and Depreciation

Fixed Assets are carried at cost less Depreciation, Cost includes inward freight, duties and taxes and expenses incidental to acquisition and installation and also a share of pre-operative expenses in case of assets acquirecyconstructed before commencement of commercial production. Assets acquired under Hire Purchase agreement have been capitalized as per accepted accounting practices although the ownership on such assets will vest on a future date.

All fixed assets are depredated on straight-line method in accordance with Schedule XIV (as amended) of the Companies Act, 1956, except for office equipments which are given on rentals are provided at higher rate.

Profit or Loss on disposal of fixed asset is recognized in Profit & Loss Account

An impairment loss is recognized where applicable when the carrying value of fixed assets exceeds their resale value or value in use whichever is higher.

C) Inventories

Raw materials and Work in Process is valued at Cost or tealable v a in which ever is lower Finished Goods and Components are valued at lower of cost (weighted average) or net realizable value.

D) Foreign Currency Transactions

Transactions in foreign currency are recorded h rupees by applying the rate of exchange ruling on the date of transaction. Gain or loss on settled transactions is recognized in Profit & Loss Account except for fixed assets acquired from a company outside India, which are adjusted to carrying amount of fixed assets. Unsettled transactions as at the year-end are translated at the closing rate and the gain or loss is recognized in Profit & Loss Account except for liabilities incurred for purchase of fixed assets, which are adjusted to the carrying amount of fixed assets.

E) Government Grants

Subsidies received on capital account are credited to Capital Reserve.

F) Sales / Revenue Recognition

Sales represent invoiced value of goods supplied including excise duty but exclude sales tax.

G) Retirement Benefits

Short-term empfoyee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered. The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Govern me nt and such contributions are charged against revenue every year.

The Company's liability in respect of gratuity payable in future to employees is actuarialy ascertained every year and is funded with Life Insurance Corporation of India under Group Gratuity Scheme.

The Company's lability in respect of leave encashment payable in future to employees is acturiaBy ascertained every year and is funded with HDFC Standard Life under Kilburn Office Automation Leave Encashment Fund.

H) Provision for Current and Deferred Tax

Current Tax represents the amount that would be payable based on computation of tax as per the prevailing taxation laws under the Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are only recognized if there is reasonable certainty that sufficient future taxable income will be available against which such ta£f3rrted ta^ assets ban be realiable.

I) 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.


Mar 31, 2010

A) Principal Accounting Policies

The financial statements have been prepared in accordance with applicable Accounting Standards in India. The financial statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.

b) Basis of Accounting

The financial statements have been prepared in accordance with the historical cost convention.

c) Fixed Assets and Depreciation

Fixed Assets are carried at cost less depreciation. Cost includes inward freight, duties and taxes and expenses incidental to acquisition and installation and also a share of pre-operative expenses in case of assets acquired/constructed before commencement of commercial production. Assets acquired under Hire Purchase agreement have been capitalized as per accepted accounting practices although the ownership on such assets will vest on a future date.

All fixed assets are depreciated on straight-line method in accordance with Schedule XIV (as amended) of the Companies Act, 1956, except for office equipments which are given on rentals are provided at higher rate.

Profit or Loss on disposal of fixed asset is recognized in Profit & Loss Account.

An impairment loss is recognized where applicable when the carrying value of fixed assets exceeds their resale value or value in use whichever is higher.

d) Inventories

Raw materials are valued at weighted average cost (Cost of acquisition).

Finished Goods and Components are valued at lower of cost (weighted average) or net realizable value.

Loose Tools being a nominal amount has not been written off.

e) Foreign Currency Transactions

Transactions in foreign currency are recorded in rupees by applying the rate of exchange ruling on the date of transaction. Gain or loss on settled transactions is recognized in Profit & Loss Account except for fixed assets acquired from a company outside India, which are adjusted to carrying amount of fixed assets. Unsettled transactions as at the year-end are translated at the closing rate and the gain or loss is recognized in Profit & Loss Account except for liabilities incurred for purchase of fixed assets, which are adjusted to the carrying amount of fixed assets.

f) Retirement Benefits

The Company contributes to Provident Fund and Superannuation Fund which are administered by duly constituted and approved independent Trust/Government and such contributions are charged against revenue every year.

The Companys liability in respect of gratuity payable in future to employees is actuarially ascertained every year and is funded with Life Insurance Corporation of India under Group Gratuity Scheme.

The Companys liability in respect of leave encashment payable in future to employees is acturially ascertained every year and is funded with HDFC Bank under Kilburn Office Automation Leave Encashment Fund.

g) Government Grants

Subsidies received on capital account are credited to Capital Reserve. Subsidies received against depreciable assets are credited to the Profit & Loss Account over the useful life of the asset.

h) Sales

Sales represent invoiced value of goods supplied including excise duty but exclude sales tax. Excise Duty has been accounted on exclusive method.

i) Refund of Additional Customs Duty

There is no refund of Customs Duty this year.

j) Taxes on Income

Current Tax represents the amount that would be payable based on computation of tax as per the prevailing taxation laws under the Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets are only recognized if there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

k) Borrowing Cost

Borrowing costs if relatable to qualifying assets (i.e., assets that necessarily take a substantial period of time for its intended use or sale) are capitalized otherwise are charged to Profit & Loss Account.

 
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