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Accounting Policies of Koa Tools India Ltd. Company

Mar 31, 2014

Basis of Accounting

The Financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under section 211 (3C) of the Companies Act, 1956 ("the Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of general circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs ) and relevant provisions of the Act/2013 Act as applicable.

Use of Estimates

The Preparation of the financial statements is in conformity with the generally accepted accounting principles require management to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and reported amounts of revenue and expenses during the year. Difference between the actual result and estimates are recognized in the year in which the results are known /materialized.

a) CONVENTION

The Accounts are prepared under historical cost convention and on the basis of going concern concept.

b) REVENUE RECOGNITION

Sales of Goods and Services are accounted for on accrual basis. Sales include Excise duty and education cess. Other Incomes are accounted for on accrual basis except where the receipt of income is uncertain.

c) FIXED ASSETS

All the fixed assets have been stated at historical cost less accumulated depreciation.

d) . DEPRECIATION

Depreciation on fixed assets has been provided on the basis of straight-line method as per schedule XIV of the Companies Act, 1956''and on during additions/ Sales the year, on pro-rata basis.

e) IMPAIRMENT

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds it s recoverable amount, i.e. higher of value in use and ''net selling price. Imp airment loss recognized in one year can get reversed fully or partly in a subsequent years.

f) INVESTMENTS

1 Investments are classified into long- term investments and current investments. Long- term investments are stated at cost. ''Provision for diminution in the value of a non current investment is made on individual investment basis if such diminution is other ''than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

g) INVENTORIES

Raw materials, stores and spare parts, work in progress and finished goods are valued at the lower of the historical cost and the net realizable value. Scrap and slow moving / unserviceable stocks are valued at the net realizable value. Cost of inventories has been valued oh FIFO basis.

h) EMPLOYEE BENEFITS:

Gratuity and other retirement benefits are charged to profit and loss account through a provision for accruing liability based ''on assumption that such benefits are payable to the eligible employees at the end of accounting year.

i) INCOME TAX

Income Tax are computed using the tax effect accounting method where taxes are accrued in the same period, as the related ''revenue and expenses to which they relate. The differences that result between profit offered for income tax and the profit as per financial statements are identified and thereafter a deferred tax assets or deferred tax liability is recorded for timing difference,namely differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate ''amount being considered. Deferred t ax assets and liabilities are measured using tax rates and tax laws enacted or substantially ''enacted by the balance sheet date. Deferred tax assets are recognized only if ''there is reasonable/ virtual certainly that they will be realized and are reviewed for the appropriateness of their respective carrying valued at each Bajance Sheet date. Until 2001, provision has been made for income tax on an yearly basis, under the tax payable method, based on the tax liability as computed after taking credit for allowances and exemptions. In case of matters under appeal, if any , * due to disallowances or otherwise, full provision is made when the said liabilities are accepted by the comp any.


Mar 31, 2013

The financial statements have been prepared in accordance with applicable Accounting Standards notified by the Companies(Accounting Standards) Rules,2006 (as amended) and the relevant requirements of the Companies Act, 1956. Significant accounting policies applied in preparing and presenting these financial statements are set out below:

a) CONVENTION

TheAccounts are prepared under historical cost convention and on the basis of going concern concept.

b) REVENUE RECOGNITION

Sales of Goods and Services are accounted for on accrual basis. Sales include Excise duty and education cess.Other Incomes are accounted for on accrual basis except where the receipt of income is uncertain.

c) FIXED ASSETS

All the fixed assets have been stated at historical cost less accumulated depreciation.

d) DEPRECIATION *-

Depreciation on fixed assets has been provided on the basis of straight-line method as per schedule XIV of the Companies Act, 1956''and on during additions/ Sales the year, on pro-rata basis.

e) IMPAIRMENT

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds its recoverable amount, i.e. higher of value in use and ''net selling price. Impairment loss recognized in one year can get reversed fully or partly in a subsequent years.

f) INVESTMENTS

Investments are classified into long- term investments and current investments. Long- term investments are stated at cost, ''Provision for diminution in the value of a non current investment is made on individual investment basis if such diminution is other ''than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

g) INVENTORIES

Raw materials, stores and spare parts, work in progress and finished goods are valued at the lower of the historical cost and the net realizable value. Scrap and slow moving / unserviceable stocks are valued at the net realizable value. Cost of inventories has been valued on FIFO basis.

h) EMPLOYEE BENEFITS

Gratuity and other retirement benefits are charged to profit and loss account through a provision for accruing liability based ''on assumption that such benefits are payable to the eligible employees at the end of accounting year.

i) INCOME TAX

Income Tax are computed using the tax effect accounting method where taxes are accrued in the same period, as the related ''revenue and expenses to which they relate. The differences that result between profit offered for income tax and the profit as per financial statements are identified and thereafter a deferred tax assets or deferred tax liability is recorded for timing difference.namely differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate ''amount being considered. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantially ''enacted by the balance sheet date. Deferred tax assets are recognized only if ''there is reasonable/ virtual certainly that they will be realized and are reviewed for the appropriateness of their respective carrying valued at each Balance Sheet date. Until 2001, provision has been made tor income tax on an yearly basis, under the tax payable method, based on the tax liability as computed after taking credit for allowances and exemptions. In case of matters under appeal, if any, due to disallowances or otherwise, full provision is made when the said liabilities are accepted by the company.


Mar 31, 2012

The financial statements have been prepared in accordance with applicable Accounting Standards notified by the Companies(Accounting Standards) Rules'2006 (as amended) and the relevant requirements of the Companies Act' 1956. Significant accounting policies applied in preparing and presenting these financial statements are set out below:

a) CONVENTION

The Accounts are prepared under historical cost convention and on the basis of going concern cpncept.

b) REVENUE RECOGNITION

Sales of Goods and Services are accounted for on accrual basis. Sales include Excise duty and education cess.Other Incomes are accounted for on accrual basis except where the receipt of income is uncertain.

c) FIXED ASSETS

All the fixed assets have been stated at historical cost less accumulated depreciation.

d) DEPRECIATION

Depreciation on fixed assets has been provided on the basis of straight-line method as per schedule XIV of the Companies Act' 1956'and on during additions/ Sales the year' on pro-rata basis.

e) IMPAIRMENT

Fixed Assets are tested for impairment if there is any indication of their possible impairment. An impairment loss is recognized where the carrying amount of a fixed asset (or cash generating unit) exceeds its recoverable amount' i.e. higher of value in use and 'net selling price. Impairment loss recognized in one year can get reversed fully or partly in a subsequent years.

f) INVESTMENTS

Investments are classified into long- term investments and current investments. Long- term investments are stated at cost. 'Provision for diminution in the value of a non current investment is made on individual investment basis if such diminution is other 'than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

g) INVENTORIES

Raw materials' stores and spare parts' work in progress and finished goods are valued at the lower of the historical cost and the net realizable value. Scrap and slow moving / unserviceable stocks are valued at the net realizable value. Cost of inventories has been valued on FIFO basis.

h) EMPLOYEE BENEFITS

Gratuity and other retirement benefits are charged to profit and loss account through a provision for accruing liability based 'on assumption that such benefits are payable to the eligible employees at the end of accounting year.

i) INCOME TAX

Income Tax are computed using the tax effect accounting method where taxes are accrued in the same period' as the related 'revenue and expenses to which they relate. The differences that result between profit offered for income tax and the profit as per financial statements are identified and thereafter a deferred tax assets or deferred tax liability is recorded for timing difference'namely differences that originate in one accounting period and reverse in another' based on the tax effect of the aggregate 'amount being considered. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantially 'enacted by the balance sheet date. Deferred tax assets are recognized only if 'there is reasonable/ virtual certainly that they will be realized and are reviewed for the appropriateness of their respective carrying valued at each Balance Sheet date. Until 2001' provision has been made for income tax on an yearly basis' under the tax payable method' based on the tax liability as computed after taking credit for allowances and exemptions. In case of matters undei appeal' if any' due to disallowances or otherwise' full provision is made when the said liabilities are accepted by the company.

Retirement Benefits : Since none of the employee has completed the requried period of service ' hance no provision for gratuity has been made.


Mar 31, 2010

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956. A summary of important accounting policies applied, are set out below:

a) CONVENTION

The Accounts are prepared under historical cost convention and on the basis of going concern concept.

b) REVENUE RECOGNITION

Sales of Goods and Services are accounted for on accrual basis. Sales include Excise duty and education cess. Other Incomes are accounted for on accrual basis except where the receipt of income is uncertain.

c) FIXED ASSETS

All the fixed assets have been stated at historical cost less accumulated depreciation.

d) DEPRECIATION

Depreciation on fixed assets has been provided on the basis of straight-line method as per schedule XIV of the Companies Act, 1956 and on additions/ Sales during the year, on pro-rata basis.

e) INVENTORIES

Raw materials, stores and spare parts, work in progress and finished goods are valued at the lower of the historical cost and the net realizable value. Scrap and slow moving / unserviceable stocks are valued at the net realizable value. Cost of inventories has been valued on FIFO basis.

f) EMPLOYEE BENEFITS:

i) Contribution to Provident Fund is accounted for on accrual basis

ii) Gratuity and other retirement benefits are charged to profit and loss account through a provision for accruing liability based on assumption that such benefits are payable to the eligible employees at the end of accounting year.

g) INCOME TAX

Income Tax are computed using the tax effect accounting method where taxes are accrued in the same period, as the related revenue and expenses to which they relate. The differences that result between profit offered for income tax and the profit as per financial statements are identified and thereafter a deferred tax assets or deferred tax liability is recorded for timing difference, namely differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount being considered. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantially enacted by the balance sheet date. Deferred tax assets are recognized only if there is reasonable/ virtual certainly that they will be realized and are reviewed for the appropriateness of their respective carrying valued at each Balance Sheet date. Until 2001, provision has been made for income tax on an yearly basis, under the tax payable method, based on the tax liability as computed after taking credit for allowances and exemptions.

In case of matters under appeal, if any, due to disallowances or otherwise, full provision is made when the said liabilities are accepted by the company.

 
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