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Accounting Policies of Kuber Udyog Ltd. Company

Mar 31, 2015

1 Basis of Preparation of Financial statement.

The financial statements of Kuber Udyog Limited have been prepared and presented in accodance with Generally Accepted Accounting Principles (GAAP) on the historical cost convention on the accrual basis. GAAP comprises accounting standards notified by Central Government of India under the relevant provision of Companies Act, 2013.

2 Use of Estimates

The preparation of financial statements is in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and reported amounts of income and expenses during the period.

3 Investment

Investment that are readlly reaslisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as Non-Current. Current investments are camed at lower of cost and fair value determined on an individual investment basis. Non Current investments are carried at cost, but provision for diminution in value is made to recognise a decline other than temporary in the value of such investment.

4 Valuation of Inventories

Stock in trade (traded) is valued at cost (FIFO) .However unquoted securites held as stock in trade has been valued at cost.

5 Fixed Assets & Depreciation

Fixed Assets are stated at cost less Depreciation. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Depreciation on addition / deletions is calculated on pro- rata with respect to date of addition / deletions.

6 Deferred Taxes

Tax expense comprises deferred taxes. : Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

7 Provision:

A provision is recognised when an enterprise has a present obligation as a result of past events; 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. Contingent Liability is not recognized in the financial statements but is disclosed.

8 Revenue Recognition

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable. Dividend income is recognised when the right to receive payment is established.

9 Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital

10 Earning Per Share

Earning per Share is 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 earing per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of share outstanding during the period are adjusted for the effects of all diluted potential equity shares

11 Under the Micro Small and Medium Enterprises Development Act ,2006, certain disclourses are required to be made relating to Micro,Small and Medium Enterprises. The company is in the process of compling relevant information from its suppliers about their coverage under the Act . Since the revelant information is not presently available, no disclosures have been made in the accounts.


Mar 31, 2014

A. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared in accordance with the Generally Accepted Accounting principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) and with relevant provisions of the Companies Act, 1956/ relevant enacted provisions of the Companies Act, 2013 to the extend applicable. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year

B. USE OF ESTIMATES:

The preparation of the financial statements in conformity with the Generally Accepted Accounting principles (GAAP) in India requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities (including contingent liabilities) and reported amounts of income and expenses during the period. 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 recognized in the periods in which the results are known/ materialize.

C. REVENUE RECOGNITION:

INCOME:

The Company recognizes income on accrual basis, However where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.

i) income from dividend is recognized as and when such dividend has been declared and the Company's right to receive payment is established.

ii) Profit/ loss on sale of investments if any is recognized on the contract date.

D. IMPAIRMENT OF ASSETS:

At each Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Company's assets. If any such indication exits, the assets' recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

E. INCOME TAX AND ACCOUNTING FOR TAXES:

Tax expense comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the Balance Sheet date, Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised an future; however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is vital certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realisation. The liability of Minimum alternate tax (MAT) has been charged to profit & loss account as current tax. The amount of MAT credit can be set off in the year in which company is liable to pay tax as per the normal provisions of the Act. Since MAT credit has expected future.

F. CASH AND CASH EQUIVALENTS:

Cash and cash equivalents include cash & cheques in hand, bank balances with bank.

G. CURRENT-NON-CURRENT CLASSIFICATION:

All assets & liabilities are classified into current & non-current.

H. OTHER GENERAL INFORMATIONS:

i. Payment to Statutory Auditors as Audit fee for the year Rs. 2247.00 (Previous year Rs. 1685.00).

ii. The contingent liabilities for the claims against the company not acknowledged as debts -Nil (previous year Nil)

iii. In the opinion of the Board, current assets, loan and advances have a value in the ordinary course of business at least equal to that stated in the Balance Sheet.

iv. No asset qualifies for impairment for the current year, according to AS -28 prescribed by Companies (Accounting Standards) Rules, 2006.

v. The Company has not received any information from suppliers regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid at the year end together with interest payable cannot be quantified.

vi. The calculation of earning per share as disclosed in the statement of profit and loss has been made in accordance with the requirement of Accounting Standard (AS)-20 on Earning Per Share issued by the Institute of Chartered of India.

vii. Estimated amount of contracts remaining to be executed on capital account-Nil (Previous Year -Nil)

viii. Previous year figures have been regrouped/ reclassified wherever necessary to correspond with current year disclosure.


Mar 31, 2012

1. BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS:

The financial statements have been prepared on the historic cost convention, on an accrual basis and in accordance with the Accounting Standards notified by the Companies (Accounting Standard) Rules 2006 and the relevant provisions of the Companies Act, 1956.

The Preparation of the financial statements requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities and income and expenses during the reported period. The management believes that the estimates used in the preparation of the financial statement are prudent and reasonable. The difference between the actual results and the estimates are recognized in the periods in which the results are materialized.

2. REVENUE RECOGNITION:

INCOME:

The Company recognizes income on accrual basis, However where the ultimate collection of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.

i) Income from dividend is recognized as and when such dividend has been declared and the Company's right to receive payment is established.

ii) Profit/ loss on sale of investments if any is recognized on the contract date.

3. INVESTMENTS:

Long Term Investments are stated at cost.

4. Deferred Tax Assets have not been recognized, as there is no reasonable certainty for setting off the same.

5. Contingent liability as at the close of the year- NIL

6. Auditors' remuneration as Audit fee for the year Rs. 1,685/- (Previous year Rs. 1655/-).

7. Estimated amount of contracts remaining to be executed - NIL

8. The information required to be given pursuant to the provisions of the paragraph 3, 4, 4-A, 4-C and 4-D of Part II of Schedule VI of the Companies Act, 1956 is not applicable to the Company.


Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i. The Financial statements have been prepared on Historical cost convention, on accrual basis and in accordance with the Accounting Standard notified by (Accounting Standard) Rules 2006 and relevant provisions of the Companies Act, 1956.

ii. The preparation of the financial statement requires the management to make estimates and assumptions consider in the reported amounts of assets and liabilities and income and expenditure during the reported period. The management believes that the estimate used in the preparation of the financial statements is prudent and reasonable. The difference between the actual results and estimates are recognized in the period in which the results are materialized.

2. REVENUE RECOGNITION:

INCOME:

The company recognizes income on accrual basis, However where the ultimate collections of the same lacks reasonable certainty, revenue recognition is postponed to the extent of uncertainty.

i. Income from Dividend is recognized as and when such dividend has been declared and the Company's right to receive payment is established.

ii. Profit/Loss on sale of investments if any, recognized on the contract date.

3. INVESTMENTS:

Long term investments are stated at cost.

4. Deferred Tax Assets have not been recognized, as there is no reasonable certainty for setting of the same.

5. Contingent Liability as the close of the year - NIL

6. Auditor's remuneration as audit fee for the year Rs. 1,655/- (Previous Year Rs. 1,655/-)

7. Estimated amount of contracts remaining to be executed - NIL

8. The information required to be given pursuant to provisions of paragraph 3, 4, 4-A, 4-C, 4-D of part II of Schedule VI to the Companies Act,1956 is not applicable to the Company.

9. Previous year's figure has been regrouped wherever necessary.

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