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Accounting Policies of Krishna Capital & Securities Ltd. Company

Mar 31, 2015

A). Basis of Preparation of Financial Statement

i). The Standalone Financial Statements of the company have been prepared and presented in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) under the historical cost convention on an accrual basis. The company has prepared these standalone financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The accounting policies adopted in the preparation of the consolidated financial statements are consistent with those of previous year.

ii) Use of Estimates

The preparation of the standalone financial statements in conformity with Indian GAAP requires the management to make judgment, estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of consolidated financial statements and reported amounts of revenues and expenses for the year. Although these estimates are based on Management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes different from the estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.

iii). Current & Non-Current Classification

All the assets and liabilities have been classified as current or non-current as per the company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of activities and time between the activities performed and their subsequent realization in cash or cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current/ non -current classification of assets and liabilities.

b) Inventories

Inventories (Stock-In-Trade, if any) are valued at lower of Cost or Net Realisable Value by following FIFO Method.

c) Cash Flow Statement

i) Cash & cash Equivalents (for purpose of cash flow statement)

Cash comprises cash on hand and demand deposit with banks. Cash Equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

ii) 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 regular revenue generating, financing and investing activities of the company are segregated.

d) Prior Period and Exceptional items

i) All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period items".

ii) Exceptional items are generally non-recurring items of income and expense within profit or loss from ordinary activities, which are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Company for the year.

e) Fixed Assets

Tangible fixed assets.

Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation and Impairment losses, if any. Cost comprises the purchase price, import duty and other non- refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing cost relating to acquisition /construction of fixed assets which take substantial period 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.

f) Depreciation

Depreciation on fixed Assets is provided on written-down method taking useful lives and in the manner specified in Schedule II to the Companies Act, 2013 read with the relevant circulars issued by the Ministry of Corporate Affairs.

g) Revenue Recognition:

Revenue is recognised when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

i) Sales of Goods are recognised when the significant risk and rewards of ownership of the goods have been passed to the customer and net of Value added tax and return.

ii) Other Incomes are recognised on receipt of confirmation regarding acceptance of claim form the counterpart or when it is a part of oral expressed understanding.

iii) Interest Income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

h) Foreign Currency Transactions

There are no Foreign Currency Transactions in the company during the year,

i) Investments

i) Long term investments are stated at cost. Provisions for diminution in the value of long term investments are made only if such a decline is other than temporary in nature in the opinion of the management.

j) Employee Benefits Shortterm Employee Benefits

Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and loss of the year in which the related services is rendered.

k) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and loss.

l) Segment Accounting

There is no requirement of Segment Reporting as Company doesn't have any other branch.

m) Related Party transactions

Disclosure of transactions with related parties, as required by Accounting Standard 18 "Related Party Disclosure" as specified in the Companies (Accounting Standard) Rules, 2006 (as amended), has been set out in a separate statement annexed to this note. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the company.

n) Leases

There is no lease agreement from the Company's side during the year.

o) Earning Per Share

The company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 as specified in the Companies (Accounting Standard)Rules,2006 (as amended). The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. There are no dilutive potential equity shares so Diluted EPS is same as Basis EPS.

p) Provision for Tax

Tax expenses comprises of current tax and deferred tax.

1) CurrentTax

Provision for taxation has been made in accordance with the direct tax laws prevailing for the relevant assessment years.

2) Deferred Tax

In accordance with the Accounting Standard 22- Accounting for Taxes on Income, as specified in the Companies (Accounting Standard) Rules 2006 (as amended), 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 recognised 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.

q) Impairment of Fixed Assets

1) The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amount is estimated.

2) The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in the uses which is determined based on the estimated future cash flow discounted to their present values. All impairment losses are recognized in the statement of Profit and Loss.

3) An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognised in the Statement of Profit and Loss.

r) Provision, Contingent Liabilities and Contingent Assets

Provision are recognized for when the company has at present, legal or contractual obligation as a result of Past events, Only if it is probable that an outflow of resources embodying economic outgo or loss will be required and if the amount involved can be measured reliably.

Contingent liabilities being a possible obligation as a result of Past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more future events not wholly in control of the company are not recognized in the accounts. The company doesn't have any Contingent Liability Contingent assets are neither recognized nor disclosed in the financial statements.

s) Expenditure

Expenses are net of taxes recoverable, where applicable.

t) Accounting of claims

Claims received are accounted at the time of lodgment depending on the certainty of receipt and claims payable are accounted at the time of acceptance.

u) Doubtful debts. Advances

There are no doubtful debts in the books of company during the year

v) DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186 (4) OF THECOMPANIES ACT, 2013

There are no Loans or Guarantees given by the company during the year.


Mar 31, 2014

1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI

2 Inventories

Inventories are valued at cost or Market Value whichever is lower

3 Revenue Recognisation

All Income & Expenditures are accounted for on accrual basis

4 Fixed Assets

The Gross Block of Fixed Assets is stated at original cost of acquisition which includes any cost directly attributable to bringing the Assets to their working condition for their intended use.

5 Depreciation

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of the Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block value of Rs 5,000/- or less.

6 Investment

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7 Income Tax

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgment that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change.

8. Extraordinary Items

This year company has sold its Fixed Asset of Office Premises at Sahajanand Complex for profit of Rs. 1883675 which is not in the normal course of the business of company. Hence it is shown as an Extraordinary item in the Profit & Loss a/c.


Mar 31, 2013

1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI

2 Inventories

Inventories are valued at cost or Market Value whichever is lower

3 Revenue Recognisation

All Income & Expenditures are accounted for on accrual basis

4 Fixed Assets

The Gross Block of Fixed Assets is stated at original cost of acquisition which includes any cost directly attributable to bringing the Assets to their working condition for their intended use.

5 Depreciation

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of the Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block value of Rs 5,000/- or less.

6 Investment

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7 Income Tax

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgment that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change.


Mar 31, 2012

1 Basis of Accounting

The financial statements are prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI

2 Inventories

Inventories are valued at cost or Market Value whichever is lower

3 Revenue Recognisation

All Income & Expenditures are accounted for on accrual basis

4 Fixed Assets

The Gross Block of Fixed Assets is stated at original cost of acquisition which includes any cost directly attributable to bringing the Assets to their working condition for their intended use.

5 Depreciation

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of th Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block vlue of Rs 5,000/- or less.

6 Investment

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7 Income Tax

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgement that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change


Mar 31, 2011

1. BASIS OF ACCOUNTING :

The financial Statements are Prepared under the historical cost convention on the accrual basis of accounting and comply with the mandatory accounting standards and statements issued by the ICAI.

2. INVENTORIES:

Inventories are valued at cost or market price whichever is lower.

3. REVENUE RECOGNITION:

All Income & expenditures are accounted for on accrual basis.

4. FIXED ASSETS :

The Gross Block of Fixed Assets is stated at original cost of acquisition which including any cost directly attribution to brining the Assets to their working condition for their intended use.

5. DEPRECIATION:

Depreciation on Fixed Assets has been provided on written down method at the rates and manner prescribed in schedule XIV of the Companies Act, 1956, where as the according to Schedule XIV, 100% amount is written off in respect of asset having net block value of Rs 5000/- or less.

6. INVESTMENT:

Investment is for Long Term and stated at cost, except where there is reduction in the value of investment is other than temporary.

7. INCOME TAX:

Income Tax comprises the current tax provision and the net change in the deferred tax assets or liability in the year. Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax, bases and operating loss carry forwards, deferred tax assets are recognized subject to management's judgment that realization is more likely than not taxable income in the years in which the temporary differences are expected to be received or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the income statement in the period of enactment of the change.



 
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