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Accounting Policies of Sri KPR Industries Ltd. Company

Mar 31, 2015

A. System of Accounting:

i. The company follows mercantile system of accounting and recognizes Income and Expenditure on accrual basis.

ii. The Financial statements have been prepared in all material aspects with Accounting Standards prescribed under the provisions of the Companies Act, 2013.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition :

i. Sale of goods is recognized at the point of despatch of goods to customers and Gross Sales are inclusive of duties and taxes.

ii. Income from Sale of Wind Power is recognized on the basis of units measured and certified by the concerned State Authorities.

iii. Dividends are recognized as income of the year in which the same are received.

C. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided in accordance with Schedule II of the Companies Act, 2013 in respect of the remaining useful life of the asset as far as the existing assets are concerned. In respect of additions, depreciation is provided on the basis of the useful life of the assets as prescribed by Schedule II of Companies Act, 2013.

iv. During the year the company had carried out technical evaluation of the useful life of the existing assets and applied the method of depreciation as prescribed by Schedule II of the Companies Act, 2013. The adjustment as a result of the re-computation is made to the opening balance of profit and loss account.

v. The residential units received by the company towards its share in the development agreement in respect of the land belonging to the company, entered into an earlier year, are treated as fixed assets and no depreciation is charged on the same.

vi. In the current year the application of Schedule II method is made for the first time and the difference arising on account of reworking the useful life of the assets is adjusted to the opening balance of reserves.

D. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower.

E. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing basis and is inclusive of excise duty.

F. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid. Pending the finalization of the scheme gratuity payments if any, made to the employees is charged to revenue as and when paid.

G. Deferred Taxation

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

H. Impairment of Assets :

The carrying amounts of assets are reviewed at each Balance Sheet date, if there is any indication of impairment based on internal / external factors. An impairment loss will be recognized wherever the carrying amount of an asset exceeds its estimated recoverable amount. The recoverable amount is greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to the present value using the weighted average cost of capital. In carrying out such exercise, due effect is given to the requirements of Schedule II of the Companies Act, 2013.


Mar 31, 2014

A. System of Accounting:

i. The company follows mercantile system of accounting and recognizes Income and Expenditure on -accrual basis,

ii. The Financial statements have been prepared in all material aspects with accounting standards as notified in the Companies (Accounting Standards) Rules, 2006 and relevant provisions of the Companies Act, 1956.

iii. Financial statements are prepared on historical cost basis and as a going concern.

B. Revenue Recognition :

Sale of goods is recognized at the point of despatch of goods to customers and Gross Sales are inclusive of Excise Duty and net of Value Added Tax.

ii. Income from Sale of Wind Power is recognized on the basis of units measured and certified by the concerned Electricity Board Authorities.

iii. Dividends are recognized as income of the year in which the same are declared and received.

C. Income Recognition on Development of Land

i. The Company has entered into an Agreement for development of its land into a residential apartment complex on a built-up area sharing basis.

ii The income arising out of the transaction is first recognised on delivery of residential units by the developer.

iii. Profit, if any, arising out of the sale of the units falling to the share of the company is recognized upon sale of the residential unit.

iv. The unsold units are shown under fixed assets.

D. Tangible Fixed Assets and Depreciation

i. Tangible Fixed Assets acquired by the company are reported at acquisition value, with deductions for accumulated depreciation and impairment losses, if any.

ii. The acquisition cost includes the purchase price (excluding refundable taxes) and expenses directly '' attributable to the asset to bring it to the site and in the working condition for intended use.

iii. Depreciation is provided on straight line basis at rates and in the manner specified in schedule XIV to the Companies Act, 1956, unless then the use of higher rate or an accelerated charge is justified through technical estimates.

E. Investments

Non-current investments are stated at cost. Traded shares are stated at cost or market value whichever is lower.

F. Inventories

Stocks are valued at cost or realizable value whichever is lower. Cost of finished goods for this purpose is arrived at on absorption costing basis and is inclusive of excise duty.

G. Staff Benefits

Provident Fund Contributions and other staff benefits are accounted on accrual basis. The company is in the process ascertaining appropriate Group Gratuity Scheme for subscription and the premium / contributions towards the same will be charged to revenue as and when paid.

H. Deferred Taxation

Accounting treatment in respect of deferred taxation is in accordance with Accounting Standard 22: "Accounting for Taxes on Income" issued by the Chartered Accountants of India.

I. Preliminary Expenses ;

Expenses incurred in connection with the increase in authorized capital of the company and amalgamation are written off in equal installments over a period of five years and the unwritten off portion is included in non-current assets

J. Currency Fluctuation -

Gain / Loss arising on account of FCNB Loan borrowed by the company is treated as income / expense in the profit and loss account.

K. Contingent Liability. : Disputed Income Tax liability. Rs.32.50 lacs. The first appeal of the company before the Hon''ble Commissioner of Income Tax (Appeals) has been allowed in favor of the company. A second appeal has been preferred by the department to the Hon''ble Income Tax Appellate Tribunal, Hyderabad.

L. Previous Year''s figures have been regrouped wherever considered necessary.


Mar 31, 2011

A BASIS OF ACCOUNTING: The financial statements are prepared under historical cost convention on accrual basis.

B FIXED ASSETS: The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalized as cost of fixed assets.

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. .

D INVESTMENTS: Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.


Mar 31, 2010

A BASIS OF ACCOUNTING: The financial statements are prepared under historical cost convention on- accrual basis.

B FIXED ASSETS: The fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All direct expenses relating to construction or acquisition are capitalized as cost of fixed assets. In respect of assets disposed off during the year the net result being profit, is transferred to P & L account

C DEPRECIATION : Depreciation on fixed assets is charged on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. In respect of the additions made during the year, depreciation is charged on pro-rata basis.

D INVESTMENTS: Non trade investments are stated at cost of acquisition. Trade investments are carried as stock in trade and are stated at lower of cost or realizable value.

E SEGMENT ACCOUNTING POLICIES OF SOFTWARE DIVISION.

SOFTWARE INCOME AND COSTS: Billed man hours and amounts receivable as per Software development contracts / orders are considered as income. Unbilled man hours in respect of software contracts and man hour costs in respect of software products under development are considered as work in progress. These will be adjusted to profit and loss account upon billing / completion of the product as the case may be.

 
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