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Accounting Policies of KLK Electrical Ltd. Company

Mar 31, 2014

A. Accounting Concepts

The Company follows mercantile system of accounting and recogniszs income and expenses on accrual basis. Accounting policies not specifically referred to are consistent with Generally Accepted Accounting principles as applicable followed in India.

b. Revenue Recognition

All expenses and income are accounted for on mercantile basis except accounting of relief, incentives and concessions, which are accounted for as and when the amounts finally receivable against these are ascertained.

c. Fixed Assets

Fixed Assets are stated at cost including taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same.

d. Depreciation

the company does not have any tangible fixed assets,

e. Investments

Long term Investments are stated at cost. Decline in value of long term investments, other than temporary is provided for.

f. Inventories

the company does not have any inventories hence the question of valuation does not arise

g. Retirement Benefits

As there were no employees in the Company at the year end, no provision for gratuity/ PF has been made in the books of account.

h. Foreign Exchanges Transactions

There are no foreign exchange transactions.

I. Leases

There are no lease transactions entered into by the company so far.

j. Taxation

Provision for current tax, if any, is made in accordance with the provisions of Income Tax Act 1961. Current Tax is determined as the amount of tax payable in respect of taxable income for the period.

Deffered tax is recognised, subject to prudence, if 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 periods.

Deffered tax is recognised, subject to prudence, if timing differences, being the

5. The company has not obtained confirmations of balances from the debtors ,the management of the company informed that all receivable will be reliased in dure course, otherwise legal actions will be taken and written of the doubtful debts in the following year

6. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006 Under the Micro, Small & Medium Enterprises Development Act, 2006 (MS & MED) which came into force from October 02,2006, certain disclosures are required to be made relating to Micro, Small & Medium Enterprises (MS&MED). On the basis of the information and records available with the Company, there are no amounts due to Micro and Small Enterprises as on 31.03.2014

7. Other Accounting Standards

Related Party Transactions: There are no related party transactions during the year.

LIST OF RELATED PARTIES

Related parties with whom transactions have taken place during the year Key Management Personnel / Individual Relatives

No transactions were carried out with any related parties during the year.

8. Segment Reporting: As there was no activity in the Company other than providing computer software sales, there were no items to be reported under segment reporting.

9. Deferred tax: In the opinion of the company there is only deferred tax asset, consists of depreciation allowance and the company is not sure of getting the benefit of the same in future and hence the same not recognized.

k. Intangible Assets

Intangible assets in the form of technical know how and drawings are acquired from foreign collaborator and held for manufacture of new products. The cost of the same would be-written off uniformly over a period of six years commencing from the year in which the new products using the techincal know how are manufactured.

l. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard 20.

m. Contingencies

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the Notes on accounts.


Mar 31, 2013

A. Accounting Concepts

The Company follows mercantile system of accounting and recognises income and expenses on accrual basis.

Accounting policies not specifically referred to are consistent with Generally Accepted Accounting Principles as applicable followed in India.

b. Revenue Recognition

All expenses and income are accounted for on mercantile basis except accounting of relief, incentives and concessions, which are accounted for as and when the amounts finally receivable against these are ascertained.

c. Fixed Assets

Fixed Assets are stated at cost including taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same.

d. Depreciation

Depreciation on all fixed assets have been provided on written down value method on pro-rata basis with respect to the month of additions of respective assets at the rates specified in Schedules XIII to the Companies Act 1956.

e. Investments

Long term Investments are stated at cost. Decline in value of long term investments, other than temporary is provided for.

f. Inventories

Raw materials, bought out components, consumable stores and spares are valued at cost.

g. Retirement Benefits

As there were no employees in the Company at the year end, no provision for gratuity/ PF has been made in the books of account.

h. Foreign Exchanges Transactions

There are no foreign exchange transactions.

i. Leases

There are no lease transactions entered into by the company so far.

j. Taxation

Provision for current tax, if any, is made in accordance with the provisions of Income Tax Act 1961. Current Tax is determined as the amount of tax payable in respect of taxable income for the period.

Deffered tax is recognised, subject to prudence, if 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 periods.

k. Intangible Assets

Intangible assets in the form of technical knowhow and drawings are acquired from foreign collaborator and held for manufacture of new products. The cost of the same would be written off uniformly over a period of six years commencing from the year in which the new products using the technical know how are manufactured.

I. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard 20.

m. Contingencies

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the Notes on accounts.


Mar 31, 2012

A. ACCOUNTING CONCEPTS

The Company follows mercantile system of accounting and recognizes income and expenses on accrual basis. Accounting policies not specifically referred to are consistent with Generally Accepted Accounting Principles as applicable followed in India.

b. REVENUE RECOGNITION

All expenses and income are accounted for on mercantile basis except accounting of relief, incentives and concessions, which are accounted for as and when the amounts finally receivable against these are ascertained.

c. FIXED ASSETS

Fixed Assets are stated at cost including taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same.

d. DEPRECIATION

Depreciation on all fixed assets have been provided on Written down value Method on pro-rata basis with respect to the month of additions of respective assets at the rates specified in Schedules XIII to the companies Act, 1956.

e. INVESTMENTS

Long Term Investments are stated at cost. Decline in value of long term investments, other than temporary is provided for.

f. INVENTOREIS

Raw Materials, Bought out components, consumable stores and Spares are valued at cost.

g. RETIREMENT BENEFITS

As there were no employees in the Company at the year-end, no provision for gratuity /provident fund has been made in the books of accounts.

h. FOREGIN EXCHANGE TRANSACTIONS

There are no foreign exchange transactions.

i. LEASES

There is no lease transactions entered into by the company so far.

j. TAXATION

Provision for current tax, if any, is made in accordance with the provisions of Income tax Act, 1961. Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of 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 periods.

k. INTANGIBLE ASSETS

Intangible assets in the form of technical know-how and drawings are acquired from foreign collaborator and held for manufacture of new products. The cost of the same would be written off uniformly over a period of six years commencing from the year in which the new products using the technical know-how are manufactured.

l. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standard - 20 - 'Earnings Per Share'.

m. CONTINGENCIES

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the Notes on accounts.


Mar 31, 2010

The Company follows mercantile system of accounting and recognizes income and expenses on accrual basis. Accounting policies not specifically referred to are consistent with Generally Accepted Accounting Principles as applicable followed in India.

a.REVENUE RECOGNITION

All expenses and income are accounted for on mercantile basis except accounting of relief, incentives and concessions, which are accounted for as and when the amounts finally receivable against these are ascertained.

b.FIXED ASSETS

Fixed Assets are stated at cost including taxes, freight and other incidental expenses incurred in relation to acquisition and installation of the same.

c.DEPRECIATION

Depreciation on all fixed assets have been provided on Written down value Method on pro-rata basis with respect to the month of additions of respective assets at the rates specified in Schedules XIII to the companies Act, 1956.

d. INVESTMENTS

There are no investments held by the company.

e.INVENTOREIS

Raw Materials, Bought out components, consumable stores and Spares are valued at cost.

f. RETIREMENT BENEFITS

As there are no employees in the Company during the year, no provision for gratuity /provident fund has been made in the books of accounts.

g. FOREGIN EXCHANGE TRANSACTIONS

There are no foreign exchange transactions.

h. LEASES

There are no lease transactions entered into by the company so far.

i. TAXATION

Provision for current tax, if any, is made in accordance with the provisions of Income tax Act, 1961. Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of 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 periods.

j. CONTINGENCIES

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which have been disclosed at their estimated value in the Notes on accounts.

k. INTANGIBLE ASSETS

Intangible assets in the form of technical know-how and drawings are acquired from foreign collaborator and held for manufacture of new products. The cost of the same would be written off uniformly over a period of six years commencing from the year in which the new products are manufactured.

LEARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standard - 20 - Earnings Per Share.

 
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