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Accounting Policies of Kohinoor Techno Engineers Ltd. Company

Mar 31, 2014

A) Basis of Accounting and Preparation of Financial Statements

The financial statements of the Company have been prepared under historical cost convention to comply in all material aspects in accordance with the generally accepted accounting principles in India, and the relevant provisions of the Companies Act 1956. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis and prepares its accounts on a going concern basis. Accounting policies not specifically referred to herein above is in consistent with generally accepted accounting practices.

b) 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 disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon managements'' best knowledge of current events and actions.

c) Inventories

Inventories of raw material and finished goods are valued at cost or net realizable value whichever is lower. The Weighted Average cost method has been followed for the valuation of Inventories. Finished goods and work in progress inventories include cost of conversion and other costs incurred in bringing the inventories at their present location or condition. The physical verification of inventories has been followed by the management are generally reasonable and adequate commensurate with the size of company and nature of its business. The company has followed the exclusive method as specified in Accounting Standard 2 "Valuation of Inventories", hence the purchase and sale has been accounted at exclusive of vat.

d) Depreciation

Depreciation on depreciable fixed assets has been provided at the rates and in the manner prescribed in schedule XIV to The Companies Act, 1956 under straight line method basis considering single shift working, wherever applicable. Depreciation has been provided on the assets which were put to use during the previous year. Depreciation on addition, if any, to fixed assets made during the year has been provided on pro rata basis.

e) Revenue Recognition

(a) Revenue is recognized when it can be reliably measured and it is reasonable to expect ultimate collection. Sales of machineries and diamonds have been accounted when significant risk & reward of ownership has been transferred to buyer and net of value added tax.

(b) Revenue on transaction of rendering services is recognized under the completion contract method Contract is regarded as completed when no significant uncertainty exist regarding the amount of consideration that will derived from rendering services.

f) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. Cost comprises of capital costs and incidental / installation expenses attributable to bringing the assets to working condition for it''s intended use. The cost of fixed assets acquired during the year under consideration have been excluded the recoverable duties / taxes.

g) Accounting for Employees Benefits

There is no provision has been made for employee benefit like leave salary, gratuity, bonus, provident fund, state insurance etc nor the firm has devised any defined scheme for the benefits of its employees. The liability in respect of above will be provided for as and when the liabilities are determined or legally arouse or finally settled.

h) The Company has followed the Accounting Standards 11 in respect of Effect of Changes in Foreign Exchange Rates. According to AS-11, the Company has translated all the transaction denominated in foreign currency at the rate of exchange prevailing on the day of the transaction occurred and the balance outstanding of creditors and debtors denominated in foreign currency are translated at the exchange rate ruling on the balance sheet date. Exchange difference arising on account of foreign currency transactions are debited or/and credited to Profit & Loss account

i) Accounting for Taxes on Income

(i) Deferred Tax: In accordance with the Accounting Standard 22 - Accounting for Taxes

on Income, as specified in the Companies (Accounting Standard) Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that the assets can be realized in future. Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized.

(ii). Current Taxation Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years

j) Accounting for intangible assets The Company does not have any intangible assets. Deferred revenue expenditure on account of fee for increase in the Authorized capital and on account of installation of gas connection are amortized over a period of 5 years.


Mar 31, 2013

A) Basis of Accounting and Preparation of Financial Statements

The financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards notified U/s 211(3)(C) of the Companies Act 1956 and the relevant provisions of the Companies Act 1956. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis and prepares its accounts on a going concern basis. Accounting policies not specifically referred to herein above is in consistent with generally accepted accounting practices.

b) 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 disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon managements'' best knowledge of current events and actions.

c) Inventories

Inventories of raw material and finished goods are valued at cost or net realizable value whichever is lower. The Weighted Average cost method has been followed for the valuation of Inventories. Finished goods and work in progress inventories include cost of conversion and other costs incurred in bringing the inventories at their present location or condition. The physical verification of inventories has been followed by the management are generally reasonable and adequate commensurate with the size of company and nature of its business. The company has followed the exclusive method as specified in Accounting Standard 2 "Valuation of Inventories", hence the purchase and sale has been accounted at exclusive of vat.

d) Depreciation

Depreciation on depreciable fixed assets has been provided at the rates and in the manner prescribed in schedule XIV to The Companies Act, 1956 under straight line method basis considering single shift working, wherever applicable. Depreciation has been provided on the assets which were put to use during the previous year. Depreciation on addition to fixed assets made during the year has been provided on pro rata basis.

e) Revenue Recognition

(a) Revenue is recognized when it can be reliably measured and it is reasonable to expect ultimate collection. Sales of machineries and diamonds have been accounted when significant risk & reward of ownership has been transferred to buyer and net of value added tax.

(b) Revenue on transaction of rendering services is recognized under the completion contract method Contract is regarded as completed when no significant uncertainty exist regarding the amount of consideration that will derived from rendering services.

f) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. Cost comprises of capital costs and incidental / installation expenses attributable to bringing the assets to working condition for it''s intended use. The cost of fixed assets acquired during the year under consideration have been excluded the recoverable duties / taxes.

g) Accounting for Employees Benefits

There is no provision has been made for employee benefit like leave salary, gratuity, bonus, provident fund, state insurance etc nor the firm has devised any defined scheme for the benefits of its employees. The liability in respect of above will be provided for as and when the liabilities are determined or legally arouse or finally settled.

h) The Company has followed the Accounting Standards 11 in respect of Effect of Changes in Foreign Exchange Rates. According to AS-11, the Company has translated all the transaction denominated in foreign currency at the rate of exchange prevailing on the day of the transaction occurred and the balance outstanding of creditors and debtors denominated in foreign currency are translated at the exchange rate ruling on the balance sheet date. Exchange difference arising on account of foreign currency transactions are debited or/and credited to Profit & Loss account

i) Accounting for Taxes on Income

(i) Deferred Tax: In accordance with the Accounting Standard 22 - Accounting for Taxes on Income, as specified in the Companies (Accounting Standard) Rules, 2006, the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty that the assets can be realized in future. Net outstanding balance in Deferred Tax account is recognized as deferred tax liability/asset. The deferred tax account is used solely for reversing timing difference as and when crystallized.

(ii). Current Taxation Provision for taxation has been made in accordance with the income tax laws prevailing for the relevant assessment years

j) Accounting for intangible assets The Company does not have any intangible assets. Deferred revenue expenditure on account of fee for increase in the Authorized capital and on account of installation of gas connection are amortized over a period of 5 years.


Mar 31, 2010

Following significant accounting policies has been followed in preparation & presentation of financial statement.

a. Basis of Accounting:

Accrual basis of accounting has been followed in preparation & presentation of financial statement.

b. Fixed Assets :

Fixed Assets are stated at cost of acquisition including installation/incidental cost, wherever applicable. The fixed assets acquired during the year under consideration have been accounted net of vat in the books and depreciation has not been claimed on vat amount of assets acquired during the year.

c. Depreciation:

Depreciation on depreciable fixed assets has been provided at the rates and in the manner prescribed in schedule XIV to The Companies Act, 1956 under straight line method basis considering single shift working, wherever applicable. Depreciation has been provided on the assets which were put to use during the previous year. Depreciation on addition has been provided on prorate basis.

d. Revenue Recognition:

Software development charges and service income has been recognised based on the proportionate completion method of rending services.

Sales of machineries and diamonds has been accounted when significant risk & reward of ownership has been transferred to buyer.

e. Investments:

Investments are stated at cost of acquisition including incidental cost if any.

f. Inventory

Inventories has been are valued at cost or market value whichever is lower. The Weighted Average cost method has been followed for the valuation of raw material. The physical verification of inventories has been followed by the management are generally reasonable and adequate commensurate with the size of company and nature of its business. The company has followed the exclusive method as specified in Accounting Standard 2 "Valuation of Inventories" hence the purchase and sale has been accounted at exclusive of vat.

g. As explained to us, there is no provision has been made for employee benefit like leave salary, gratuity, bonus etc nor the firm has devised any defined scheme for the benefits of its employees. The liability in respect of above will be provide for as and when the liability is determined or legally arouse or finally settled.

 
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