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Kings Infra Ventures Ltd. Accounting Policies | Accounting Policy of Kings Infra Ventures Ltd.
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Accounting Policies of Kings Infra Ventures Ltd. Company

Mar 31, 2015

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3) Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads.

1.4) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.5) Depreciation and amortisation

Till the year ended March 31, 2014, Schedule XIV to the Companies Act, 1956, prescribed requirements concerning depreciation of fixed assets. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act, 2013.

1.6) Revenue Recognition

The company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

1.7) Fixed Assets

Tangible Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost comprise the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready to be put to use Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets, comprising of software are amortized on a straight line basis over a period of 4 years, which is estimated to be the useful life of the asset.

1.8) Investments

All the investments are classified as either current or long term based on managements intention at the time of purchase. Current investments are carried at the lower of cost or fair value. Long Term Investments are carried at cost less provisions made to recognise any decline other than temporary, in the carrying value of each investment.

1.9) Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit/ (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.10) Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Deferred tax is recognised on timing differences,is being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.11) Provisions and Contingencies A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure of a contingent liability is made when there is a possible obligation or a present obligation, when an outflow of resource is not probable or a reliable estimate cannot be made. When 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.






Mar 31, 2014

1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India. Indian GAAP comprises mandatory Accounting Standards as prescribed by the Companies (Accounting Standards) Rules, 2006 (as amended), the provisions of the Companies Act, 1956(to the extent applicable), the provisions of the Companies Act, 2013 (to the extent notified) and the guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

3. Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads.

4. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5. Depreciation and amortisation

Depreciation has been provided on Written Down Value method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.

6. Revenue Recognition

The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

7. Fixed Assets

Fixed Asses are stated at cost less accumulated depreciation and impairment if any. Cost includes all identifiable expenditure incurred to bringing the assets to its present condition.

8. Investments

All the investments are classified as either current or long term based on management''s intention at the time of purchase. Current investments are carried at the lower of cost or fair value. Long Term Investments are carried at cost less provisions made to recognise any decline other than temporary, in the carrying value of each investment.

9. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

10. Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for credit available in respect of MAT under the Income tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT credit entitlement". The Company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

11. Cash Equivalents

Cash and cash equivalents in the cash flow statement comprise cash at bank, cash in hand and short term investments with an original maturity of three months or less. Cash equivalents are stated inclusive of interest accrued as on the reporting date.


Mar 31, 2009

1. Basis for preparation of Financial Statements

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles under the historical cost convention, on the accrual basis except in the case of certain financial transactions which are measured on the basis of fair values. Accounting policies have been consistently applied except where a new accounting standard is newly adopted or a revision is made to the existing standard.

2. Revenue Recognition

The Company follows the mercantile system of accounting and recognises income & expenditure on accrual basis.

3. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon managements knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

4. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation and impairments if any. Cost includes all identifiable expenditure incurred to bringing the Assets to its present condition.

5. Depreciation

Depreciation is provided using the Written down Value Method, at the rates and in the manner specified in Schedule - XIV to the Companies Act, 1956.

6. Provisions and contingencies

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made.

7. Investments

All the investments are classified as either current or long-term based on managements intention at the time of purchase. Current investments are carried at the lower of cost and fair value. Long term investments are carried at cost less provisions made to recognize any decline other than temporary, in the carrying value of each investment.

8. Impairment of assets

Impairment of assets is recognised when there is an indication of impairment. On such indication the recoverable amount of the assets is estimated and if such estimation is less than its carrying amount, the carrying cost is reduced to recoverable cost.

9. Employee Benefits

The provisions regarding Provident Fund, Employees State Insurance, and Gratuity etc mentioned in Accounting Standards 15(Employee benefits) are not applicable to the company at present.

10. Income tax

A provision is made for Income tax annually based on tax liability computed after considering tax allowances and exemptions.

11 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.




Mar 31, 2008

1. Basis for preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards Issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act 1956. Ail income and expenditure having a material bearing on the financial statements are recognised on accrual basis

2. Revenue Recognition:

The Company follows the mercantile system of accounting and recognises income & expenditure on accrual basis.

3. Fixed Assets

Fixed Assets are recorded at the cost of acquisition less accumulated depreciation. Cost includes all identifiable expenditure incurred to bringing the Assets to its present condition.

4. Depreciation

Depreciation is provided using the Written down Value Method, at the rates and in the manner specified in Schedule - XIV to the Companies Act, 1956.

5. Provisions and contingencies

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made.

6. Investments

The investments are valued at original cost.

7. Employee Benefits

The provisions regarding Provident Fund, Employees State Insurance, and Gratuity etc mentioned in Accounting Standards 15(Employee benefits) issued by the Institute of Chartered Accountants of India are recoded on a cash basis as and when they incur.


Mar 31, 2007

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