Accounting Policies of Kama Holdings Ltd. Company
Mar 31, 2023
1 Corporate Information, Significant Accounting Policies and Significant Accounting Judgements, Estimates and Assumptions
A Corporate Information
KAMA Holdings Limited (âthe Company/KHLâ) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Equity shares of the Company are publicly traded in India on the Bombay Stock Exchange. The registered office of the Company is situated at The Galleria, DLF Mayur Vihar, Unit No. 236 and 237, Mayur Vihar Place, Mayur Vihar Phase I Extn, Delhi - 110091.
The Company is a core investment company. The financial statements were authorised for issue in accordance with a resolution of the directors on May 26, 2023.
B Significant Accounting Policies
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Section 133 of the 2013 Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended and other relevant provisions of the 2013 Act. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies mentioned below. The financial statements are presented in Indian Rupees (INR) which is also the Companyâs functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.
The principal accounting policies are set out below.
2 Property, plant and equipment (PPE)
Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.
Cost of acquisition or construction is inclusive of freight, duties, non recoverable taxes, incidental expenses and interest on loans attributable to the acquisition of qualifying assets, up to the date of commissioning of the assets.
Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for qualifying assets, upto the date of commissioning of the assets
Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.
Depreciation has been provided on the cost of assets less their residual values on straight line method on the basis of estimated useful life of assets determined by the Company which are different from the useful life as prescribed under Schedule II of the 2013 Act. The managementâs estimate of useful lives have been considered as follows:
Vehicles 4 -5 years
Computers & others 4 years
Depreciation is calculated on a pro rata basis except, assets costing upto Rs. 5,000 each, which are fully depreciated in the year of purchase.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.
The estimated useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.
An intangible asset is derecognised on disposal or when no future economic benefit are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.
5 Impairment of tangible and intangible assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
Impairment loss is recognised when the carrying amount of an asset or CGU exceeds its recoverable amount. In such cases, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.
An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the company estimates the assetâs or CGUâs recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the assetâs recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss. The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Borrowing costs for the period from commencement of activities relating to construction/development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets.
Interest income earned on temporary investment of specific borrowing pending expenditure on qualifying asset is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are expensed in the period in which they occur.
Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currency remaining unsettled at the end of the year, are translated at the closing rates prevailing on the Balance Sheet date. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction. Any gains or losses arising due to differences in exchange rates at the time of translation or settlement are accounted for in the Statement of Profit and Loss.
9 Provisions and Contingent Liabilities Provisions
The company recognises a provision when there is a present obligation (legal or constructive) as a result of past events and it is more likely than not that an outflow of resources would be required to settle the obligation and a reliable estimate can be made.
When the company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities and commitments are reviewed by the management at each balance sheet date.
a) Dividend income from investments is recognised when the shareholderâs right to receive payment has been established and it is probable that the economic benefits will flow to the company.
b) Interest income is recognised when it is probable that the economic benefits will flow to the company using the effective interest rate and the amount of income can be measured reliably. Interest income is accrued on time basis, by reference to the principal outstanding.
Income tax expense represents the sum of the tax currently payable and deferred tax.
a) Current tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss account i.e. in Other comprehensive income or equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
b) Deferred tax
Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.
Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date.
Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the company has a legally enforceable right for such set off.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax relating to items recognised outside profit or loss is recognised in other comprehensive income or in equity.
Short term employee benefits
Wages and salaries including non monetary benefits that are expected to be settled within the operating cycle after the end of the period in which the related services are rendered and are measured at the undiscounted amount expected to be paid.
Defined contribution plans
Provident fund administered through Regional Provident Fund Commissioner and Employeesâ State Insurance Corporation are defined contribution schemes. Contributions to such schemes are charged to the statement of profit and loss in the year when employees have rendered services entitling them to the contributions. The company has no obligation, other than the contribution payable to such schemes.
Defined benefit plans
The company has defined benefit plan such as gratuity, provident fund for certain category of employees administered through a recognised provident fund trust.
Provision for gratuity, provident fund for certain category of employees administered through a recognised provident fund trust are determined on an actuarial basis at the end of the year and charged to statement of profit and loss, other than remeasurements. The cost of providing these benefits is determined using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses and the effect of the asset ceiling, (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Re-measurements are not reclassified to statement of profit and loss in subsequent periods.
Other long term employee benefits
The company also has other long term benefits plan such as compensated absences. Provision for compensated absences are determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss. The cost of providing these benefits is determined using the projected unit credit method.
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A) Financial assets
Initial recognition and measurement
All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.
Subsequent measurement
For purposes of subsequent measurement, financial assets of the company are classified in three categories:
a) At amortised cost
b) At fair value through profit and loss (FVTPL)
c) At fair value through other comprehensive income (FVTOCI)
Financial asset is measured at amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.
Financial assets not classified as measured at amortised cost or FVOCI as are measured at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.
Equity Investments
All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are measured at fair value through profit and loss.
For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value.
The company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.
If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in other comprehensive income. This cumulative gain or loss is not reclassified to statement of profit and loss on disposal of such instruments.
Investments representing equity interest in subsidiaries are carried at cost less any provision for impairment. Derecognition
A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:
a) The rights to receive cash flows from the asset have expired, or
b) The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a âpass-throughâ arrangement; and either (i) the company has transferred substantially all the risks and rewards of the asset, or (ii) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of the companyâs continuing involvement. In that case, the company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained.
Impairment of financial assets
The company recognizes loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all financial assets with contractual cash flows other than trade receivable, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Statement of Profit and Loss.
B) Financial liabilities and Equity instruments Initial recognition and measurement
All financial liabilities are recognised initially at fair value, net of directly attributable transaction costs, if any. The companyâs financial liabilities include borrowings and trade and other payables.
Subsequent measurement Borrowings
Borrowings are subsequently measured at amortised cost. Any differences between the proceeds(net of transaction cost) and the redemption/repayment amount is recognised in profit and loss over the period of the borrowings using the Effective interest rate method.
Trade and other payables
Trade and other payables represent the liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Equity Instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Debt or equity instruments issued by the company are classified as either financial liability or as equity in accordance with the substance of contractual arrangements and the definitions of a financial liabilities and an equity instruments.
The company measures some of its financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
a) Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
b) Level 2 â inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
c) Level 3 â inputs for the asset or liability that are not based on observable market data (unobservable inputs).
For assets and liabilities that are recognised in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
C Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes.
⢠Assessment of useful life of property, plant and equipment
⢠Estimation of obligations relating to employee benefits (including actuarial assumptions)
Mar 31, 2022
1 Corporate Information, Significant Accounting Policies and Significant Accounting Judgements, Estimates and Assumptions A Corporate Information
KAMA Holdings Limited (âthe Company/KHLâ) is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Equity shares of the Company are publicly traded in India on the Bombay Stock Exchange. The registered office of the Company is situated at The Galleria, DLF Mayur Vihar, Unit No. 236 and 237, Mayur Vihar Place, Mayur Vihar Phase I Extn, Delhi - 110091.
The Company is a core investment company. The financial statements were authorised for issue in accordance with a resolution of the directors on May 27, 2022.
B Significant Accounting Policies
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Section 133 of the 2013 Act read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the 2013 Act. The financial statements have been prepared on an accrual basis and under the historical cost convention, except for certain financial instruments which are measured at fair value at the end of each reporting period, as explained in the accounting policies mentioned below. The financial statements are presented in Indian Rupees (INR) which is also the Companyâs functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated.
The principal accounting policies are set out below.
2 Property, plant and equipment (PPE)
Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation and accumulated impairment losses, if any.
Cost of acquisition or construction is inclusive of freight, duties, non recoverable taxes, incidental expenses and interest on loans attributable to the acquisition of qualifying assets, up to the date of commissioning of the assets. Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for qualifying assets, upto the date of commissioning of the assets.
Assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.
Depreciation has been provided on the cost of assets less their residual values on straight line method on the basis of estimated useful life as prescribed under Schedule II of the Companies Act, 2013 Act.
Depreciation is calculated on a pro rata basis except, assets costing upto Rs. 5,000 each, which are fully depreciated in the year of purchase.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognised.
The estimated useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses, if any.
Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.
The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.
An intangible asset is derecognised on disposal or when no future economic benefit are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.
5 Impairment of tangible and intangible assets
The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) fair value less costs of disposal and its value in use.
Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.
Impairment loss is recognised when the carrying amount of an asset or CGU exceeds its recoverable amount. In such cases, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples or other available fair value indicators.
An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the company estimates the assetâs or CGUâs recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the assetâs recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of profit and loss.The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset.
Borrowing costs for the period from commencement of activities relating to construction/development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets.
Interest income earned on temporary investment of specific borrowing pending expenditure on qualifying asset is deducted from the borrowing costs eligible for capitalisation.
All other borrowing costs are expensed in the period in which they occur.
Transactions in foreign currencies are recorded on initial recognition at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currency remaining unsettled at the end of the year, are translated at the closing rates prevailing on the Balance Sheet date. Non-monetary items which are carried in terms of historical cost denominated in foreign currency are reported using the exchange rate at the date of transaction. Any gains or losses arising due to differences in exchange rates at the time of translation or settlement are accounted for in the Statement of Profit and Loss.
9 Provisions and Contingent Liabilities Provisions
The company recognises a provision when there is a present obligation (legal or constructive) as a result of past events and it is more likely than not that an outflow of resources would be required to settle the obligation and a reliable estimate can be made.
When the company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Contingent liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent liabilities and commitments are reviewed by the management at each balance sheet date.
Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised only when it can be reliably measured and it is probable that future economic benefits will flow to the Company.
a) Dividend income from investments is recognised when the shareholderâs right to receive payment has been established(provided that it is probable that the economic benefits will flow to the company and the amount of income can be measured reliably).
b) Interest income is recognised when it is probable that the economic benefits will flow to the company using the effective interest rate and the amount of income can be measured reliably. Interest income is accrued on time basis, by reference to the principal outstanding.
Income tax expense represents the sum of the tax currently payable and deferred tax.
a) Current tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss account i.e. in Other comprehensive income or equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
b) Deferred tax
Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the reporting date.
Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date.
Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the company has a legally enforceable right for such set off.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax relating to items recognised outside profit or loss is recognised in other comprehensive income or in equity.
Short term employee benefits
Wages and salaries including non monetary benefits that are expected to be settled within the operating cycle after the end of the period in which the related services are rendered and are measured at the undiscounted amount expected to be paid.
Defined contribution plans
Provident fund administered through Regional Provident Fund Commissioner and Employeesâ State Insurance Corporation are defined contribution schemes. Contributions to such schemes are charged to the statement of profit and loss in the year when employees have rendered services entitling them to the contributions. The company has no obligation, other than the contribution payable to such schemes.
Defined benefit plans
The company has defined benefit plan such as gratuity, provident fund for certain category of employees administered through a recognised provident fund trust.
Provision for gratuity, provident fund for certain category of employees administered through a recognised provident fund trust are determined on an actuarial basis at the end of the year and charged to statement of profit and loss, other than remeasurements. The cost of providing these benefits is determined using the projected unit credit method.
Remeasurements, comprising of actuarial gains and losses and the effect of the asset ceiling, (excluding amounts included in net interest on the net defined benefit liability and return on plan assets), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period in which they occur. Re-measurements are not reclassified to statement of profit and loss in subsequent periods.
Other long term employee benefits
The company also has other long term benefits plan such as compensated absences. Provision for compensated absences are determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss. The cost of providing these benefits is determined using the projected unit credit method.
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
A) Financial assets
Initial recognition and measurement
All financial assets are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets of the company are classified in three categories:
a) At amortised cost
b) At fair value through profit and loss (FVTPL)
c) At fair value through other comprehensive income (FVTOCI)
Financial asset is measured at amortised cost if both the following conditions are met:
a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in other income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies to trade and other receivables.
Financial assets not classified as measured at amortised cost or FVOCI as are measured at FVTPL. Financial assets included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.
Equity Investments
All equity investments in the scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading are measured at fair value through profit and loss.
For all other equity instruments, the company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value.
The company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.
If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in other comprehensive income. This cumulative gain or loss is not reclassified to statement of profit and loss on disposal of such instruments.
Investments representing equity interest in subsidiaries are carried at cost less any provision for impairment.
A financial asset (or, where applicable, a part of a financial asset) is primarily derecognised (i.e. removed from the balance sheet) when:
a) The rights to receive cash flows from the asset have expired, or
b) The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a âpass-throughâ arrangement; and either (i) the company has transferred substantially all the risks and rewards of the asset, or (ii) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognise the transferred asset to the extent of the companyâs continuing involvement. In that case, the company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the company has retained.
Impairment of financial assets
The company recognizes loss allowance using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all financial assets with contractual cash flows other than trade receivable, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Statement of Profit and Loss.
B) Financial liabilities and Equity instruments Initial recognition and measurement
All financial liabilities are recognised initially at fair value, net of directly attributable transaction costs, if any. The companyâs financial liabilities include borrowings and trade and other payables.
Subsequent measurement Borrowings
Borrowings are subsequently measured at amortised cost. Any differences between the proceeds(net of transaction cost) and the redemption/repayment amount is recognised in profit and loss over the period of the borrowings using the Effective interest rate method.
Trade and other payables
Trade and other payables represent the liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.
Equity Instruments
Equity Instruments are any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
Debt or equity instruments issued by the company are classified as either financial liability or as equity in accordance with the substance of contractual arrangements and the definitions of a financial liabilities and an equity instruments.
The company measures some of its financial instruments at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
a) In the principal market for the asset or liability, or
b) In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participantâs ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
a) Level 1 â Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
b) Level 2 â inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
c) Level 3 â inputs for the asset or liability that are not based on observable market data (unobservable inputs).
For assets and liabilities that are recognised in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.
The Company recognises a liability to make cash distributions to equity holders when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.
C Significant accounting judgements, estimates and assumptions
The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Judgements, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes.
⢠Assessment of useful life of property, plant and equipment.
⢠Estimation of obligations relating to employee benefits (including actuarial assumptions).
Mar 31, 2018
Notes forming part of the financial statements for the year ended March 31, 2018 Note No. 1 - Significant Accounting Policies
a) Company Information
Kama Holdings Limited (the Company) is a public limited company incorporated and domiciled in India on 28th March 2000. The equity shares of the Company are publicly traded in India on the Bombay Stock Exchange.
The Company is a core investment company and operates under a single business and geographical segment.
b) Basis Of Preparation Of Financial Statements:
The financial statements have been prepared on the historical cost convention basis. The generally accepted accounting principles and the Accounting Standards referred under section 133 of the Companies Act, 2013 have been adopted by the Company and disclosures made in accordance with the requirements of Schedule III to the Companies Act, 2013 and Accounting Standards.
c) Use of Estimates:
The preparation of Financial Statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the Financial Statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in the preparation of the Financial Statements are prudent and reasonable. Actual results could differ from these estimates.
d) Fixed Assets:
Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Cost of Acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and interest on loans attributable to the acquisition of qualifying assets, up to the date of commissioning of the assets. There are no fixed assets and hence no depreciation also.
e) Depreciation:
Depreciation is provided on Straight-line method at rates based upon life determined by the management which are lower than the life determined based on the rates specified in Schedule II to the Companies Act, 2013. The depreciation rates based on useful life as estimated by the management are 19% for Vehicles, 19% for Mobiles (office equipment) and 31.33% for Computers (office equipment).
Depreciation is calculated on a pro rata basis except that, assets costing upto Rs. 5,000 each are fully depreciated in the year of purchase.
f) Investments:
Long term quoted investments are valued at cost unless there is a permanent fall in their value as at the date of Balance Sheet.
Unquoted investment in subsidiaries being of long term nature are valued at cost and no loss is recognized in the fall in their net worth, if any, unless there is permanent fall in their value.
g) Provisions and Contingent liabilities:
The Company recognized a provision when there is a present obligation as a result of past events and it is more likely than not that an outflow of resources would be required to settle the obligation and a reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.
h) Revenue Recognition:
Revenue from operations and other income are recognized in accordance with the Accounting Standard (AS-9). Accordingly, wherever there are uncertainties in the ascertainment or realization of income such as interest from customers (including the financial condition of the person from whom the same is to be realized), the same is not accounted for.
Interim dividend income from investments is recognized in the Profit and Loss Account on receipt basis.
i) Employee Benefits:
Wages and salaries including non monetary benefits that are expected to be settled within the operating cycle after the end of the period in which the related services are rendered and are measured at the undiscounted amount expected to be paid.
In case of provident fund administered through Regional Provident Fund Commissioner, the Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as an expense, when an employee renders the related service. The Companyâs contributions paid/payable during the year to provident fund administered through Regional Provident Fund Commissioner, Superannuation Fund and Employeesâ State Insurance Corporation are recognized in the Statement of Profit and Loss as an expense when employees have rendered services entitling them to contributions.
Provision for gratuity, compensated absences, provident fund for certain category of employees administered through a recognized provident fund trust and long term retention pay are determined on an actuarial basis at the end of the year and charged to Statement of Profit and Loss. The cost of providing these benefits is determined using the projected unit credit method.
j) Taxation:
The income tax liability is provided in accordance with the provisions of the Income-tax Act, 1961.
Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their reliability.
k) Earnings Per Share:
âThe earnings considered in ascertaining the Companyâs Earnings Per Share (âEPSâ) comprise the net profit after tax after reckoning of dividend to preference shareholders. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares.
a) There is no change in the share capital as compared to the previous year.
b) Terms/ rights attached to equity shares:
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board may from time to time pay to the members such interim dividends as appear to it to be justified by the profits of the Company.
During the year ended March 31, 2018, the amount of interim dividend recognized as distributions to equity shareholders was Rs. 15 per share (2017 : Rs. 15 per share).
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c) Terms/ rights attached to 8% Non-cumulative Redeemable Preference Shares:
8% Non-cumulative Redeemable Preference Shares are redeemable on or before 31-Mar-2031 at the discretion of the Board of Directors of the Company in accordance with Memorandum & Articles of Association.
d) Shareholders holding more than 5% shares in the Company:
Mar 31, 2017
viii) The Company has not taken loans or borrowing from financial institutions, bank, Government and no dues are outstanding against debenture holders, hence this clause of the order is not applicable.
ix) The Company has not raised any money by way of initial public offer or further public offer (including debts instruments). The Company has not taken any term loan from financial institutions.
x) Based upon the audit procedures performed and on the basis of information and explanations provided by the management, we report that no frauds by the company or any fraud on the company by its officers or employees has been noticed or reported during the year.
xi) The Managerial remuneration has been paid in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act, 2013.
xii) The Company is not a Nidhi Company and hence this clause is not applicable.
xiii) According to the records of the company and information and explanation provided to us all the transactions with the related parties are in compliance with Section 177 and 188 of the Companies Act, 2013 and the details have been disclosed in the Financial Statement as required by the applicable Accounting Standards.
xiv) The Company has not made any preferential allotment
A) Accounting Policies
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost convention basis. The generally accepted accounting principles and the Accounting Standards referred under section 133 of the Companies Act, 2013 have been adopted by the Company and disclosures made in accordance with the requirements of Schedule III to the Companies Act, 2013 and the Indian Accounting Standards.
2. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. Cost of Acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and interest on loans attributable to the acquisition of qualifying assets, upto the date of commissioning of the assets. There are no fixed assets and hence no depreciation also.
3. DEPRECIATION
In the previous years depreciation was provided as under:-
3.1 Depreciation amount for assets is the cost of an asset, or other amount substitute for cost, less its estimated residual value.
3.2 Depreciation is provided on Straight-line method at rates based upon life determined by the management which are lower than the life determined based on the rates specified in Schedule II to the Companies Act, 2013. The depreciation rates based on useful life as estimated by the management are 19% for Vehicles, 19% for Mobiles (office equipment) and 31.33% for Computers (office equipment).
3.3 Depreciation is calculated on a pro rata basis except that, assets costing upto Rs. 5,000 each are fully depreciated in the year of purchase.
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investment in subsidiaries being of long term nature are valued at cost and no loss is recognized in the fall in their net worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are reasonable prospects of such liabilities maturing. Other contingent liabilities, barring frivolous claims not acknowledged as debt, are disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Revenue from operations and other income are recognized in accordance with the Accounting Standard (AS-9). Accordingly, wherever there are uncertainties in the ascertainment or realization of income such as interest from customers (including the financial condition of the person from whom the same is to be realized), the same is not accounted for.
6.2 Interim dividend income from investments is recognized in the Profit and Loss Account on receipt basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961 including the provisions regarding Minimum Alternate Tax and the contentions of the Company and also the fact that certain expenditure becoming allowable on payment being made before filing of the return of income.
7.2 Deferred tax assets and liabilities are accounted for on the basis of Accounting Standard AS-22. Deferred tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Mar 31, 2015
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost
convention basis. The generally accepted accounting principles and the
Accounting Standards referred under section 133 of the Companies Act,
2013 have been adopted by the Company and disclosures made in
accordance with the requirements of Schedule III to the Companies Act,
2013 and the Indian Accounting Standards.
2. FIXED ASSETS
In the previous year, Gross block of fixed assets was stated at their
original cost.
3. DEPRECIATION
There are no fixed assets in the current year, In the previous year
depreciation was provided as under:-
3.1 Depreciation is provided on Fixed Assets with reference to their
historical cost.
3.2 Depreciation is provided on Straight-line method at rates based
upon life determined by the management which are lower than the life
determined based on the rates specified in Schedule XIV to the
Companies Act, 1956. The depreciation rates based on useful life as
estimated by the management are 19% for Vehicles, 19% for Mobiles
(office equipment) and 31.33% for Computers (office equipment).
3.3 Depreciation is calculated on a pro rata basis except that, assets
costing upto Rs. 5,000 each are fully depreciated in the year of
purchase.
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a
permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investment in subsidiaries being of long term nature are
valued at cost and no loss is recognized in the fall in their net
worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are
reasonable prospects of such liabilities maturing. Other contingent
liabilities, barring frivolous claims not acknowledged as debt, are
disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Revenue from operations and other income are recognized in
accordance with the Accounting Standard (AS-9). Accordingly, wherever
there are uncertainties in the ascertainment or realization of income
such as interest from customers (including the financial condition of
the person from whom the same is to be realized), the same is not
accounted for.
6.2 Interim dividend income from investments is recognized in the
Profit and Loss Account on receipt basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961
including the provisions regarding Minimum Alternate Tax and the
contentions of the Company and also the fact that certain expenditure
becoming allowable on payment being made before filing of the return of
income.
7.2 Deferred tax assets and liabilities are accounted for on the basis
of Accounting Standard AS-22. Deferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
8. EARNING PER SHARE
The earnings considered in ascertaining the Company's Earnings Per
Share ('EPS') comprise the net profit after tax after reckoning of
dividend to equity and preference shareholders. The number of shares
used in computing basic EPS is the weighted average number of shares
outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares.
Mar 31, 2014
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The fnancial statements have been prepared on the historical cost
convention basis. The generally accepted accounting principles and the
Accounting Standards referred under section 211(3C) of the Companies
Act, 1956 have been adopted by the Company and disclosures made in
accordance with the requirements of Schedule VI to the Companies Act,
1956 and the Indian Accounting Standards.
2. FIXED ASSETS
Gross block of fxed assets have been stated at their original cost.
Cost includes interest on borrowings upto the date of putting the
assets to use.
3. DEPRECIATION
3.1 Depreciation is provided on Fixed Assets with reference to their
historical cost.
3.2 Depreciation is provided on Straight-line method at rates based
upon life determined by the management which are lower than the life
determined based on the rates specifed in Schedule XIV to the Companies
Act, 1956. The depreciation rates based on useful life as estimated by
the management are 19% for Vehicles, 19% for Mobiles (offce equipment)
and 31.33% for Computers (offce equipment).
3.3 Depreciation is calculated on a pro rata basis except that, assets
costing upto Rs. 5,000 each are fully depreciated in the year of
purchase.
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a
permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investment in subsidiaries being of long term nature are
valued at cost and no loss is recognized in the fall in their net
worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are
reasonable prospects of such liabilities maturing. Other contingent
liabilities, barring frivolous claims not acknowledged as debt, are
disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Revenue from operations and other income are recognized in
accordance with the Accounting Standard (AS-9). Accordingly, wherever
there are uncertainties in the ascertainment or realization of income
such as interest from customers (including the fnancial condition of
the person from whom the same is to be realized), the same is not
accounted for.
6.2 Interim dividend income from investments is recognized in the Proft
and Loss Account on receipt basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961
including the provisions regarding Minimum Alternate Tax and the
contentions of the Company and also the fact that certain expenditure
becoming allowable on payment being made before fling of the return of
income.
7.2 Deferred tax assets and liabilities are accounted for on the basis
of Accounting Standard AS-22. Deferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
8. BORROWING COST
Borrowing cost attributable to the acquisition or construction of
qualifying assets is capitalized as a part of the cost of those assets.
Other borrowing costs are recognized as an expense in the period to
which they relate.
9. EARNING PER SHARE
The earnings considered in ascertaining the Company''s Earnings Per
Share (''EPS'') comprise the net proft after tax after reckoning of
dividend to equity and preference shareholders. The number of shares
used in computing basic EPS is the weighted average number of shares
outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares.
Mar 31, 2013
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost
convention basis. The generally accepted accounting principles and the
Accounting Standards referred under section 211(3C) of the Companies
Act, 1956 have been adopted by the Company and disclosures made in
accordance with the requirements of Schedule VI to the Companies Act,
1956 and the Indian Accounting Standards.
2. FIXED ASSETS
Gross block of fixed assets have been stated at their original cost.
Cost includes interest on borrowings upto the date of putting the
assets to use.
3. DEPRECIATION
3.1 Depreciation is provided on Fixed assets with reference to their
historical cost.
3.2 Depreciation is provided on Straight-line method at rates based
upon life determined by the management which are lower than the life
determined based on the rates specified in Schedule XIV to the
Companies Act, 1956. The depreciation rates based on useful life as
estimated by the management are 19% for Vehicles, 19% for Mobiles
(office equipment) and 31.33% for Computers (office equipment).
3.3 Depreciation is calculated on a pro rata basis except that, assets
costing upto Rs. 5,000 each are fully depreciated in the year of
purchase.
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a
permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investment in subsidiaries being of long term nature are
valued at cost and no loss is recognized in the fall in their net
worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are
reasonable prospects of such liabilities maturing. Other contingent
liabilities, barring frivolous claims not acknowledged as debt, are
disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Revenue from operations and other income are recognized in
accordance with the Accounting Standard (AS-9). Accordingly, wherever
there are uncertainties in the ascertainment or realization of income
such as interest from customers (including the financial condition of
the person from whom the same is to be realized), the same is not
accounted for.
6.2 Interim dividend income from investments is recognized in the
Profit and Loss Account on receipt basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961
including the provisions regarding Minimum Alternate Tax and the
contentions of the Company and also the fact that certain expenditure
becoming allowable on payment being made before filing of the return of
income.
7.2 Deferred tax assets and liabilities are accounted for on the basis
of Accounting Standard AS-22. Deferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
8. BORROWING COST
Borrowing cost attributable to the acquisition or construction of
qualifying assets is capitalized as a part of the cost of those assets.
Other borrowing costs are recognized as an expense in the period to
which they relate.
9. EARNING PER SHARE
The earnings considered in ascertaining the Company''s Earnings Per
Share (''EPS'') comprise the net profit after tax after reckoning of
dividend to equity and preference shareholders. The number of shares
used in computing basic EPS is the weighted average number of shares
outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares.
Mar 31, 2012
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost
convention basis. The generally accepted accounting principles and the
Accounting Standards referred under section 211(3C) of the Companies
Act, 1956 have been adopted by the Company and disclosures made in
accordance with th= requirements of Schedule VI to the Companies Act,
1956 and the Indian Accounting Standards.
2. FIXED ASSETS
Gross block of fixed assets have been stated at their original cost.
Cost includes interest on borrowings up to the date of putting the
assets to use.
3. DEPRECIATION
3.1 Depreciation is provided on Fixed assets with reference to their
historical cost. .
3.2 Depreciation is provided on Straight-line method at rates based
upon life determined by the management which are lower than the life
determined based on the rates specified in Schedule XIV to the
Companies Act, 1956. The depreciation rates based on useful life as
estimated by the management are 19% for Vehicles, 19% for Mobiles
(office equipment) and 31.33% for Computers (office equipment).
3.3 Depreciation is calculated on a pro rata basis except that, assets
costing up to Rs. 5,000 each are fully depreciated in the year of
purchase.
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a
permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investments in subsidiaries being of long term nature are
valued at cost and no loss is recognized in the fall in their net
worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are
reasonable prospects of such liabilities maturing. Other contingent
liabilities, barring frivolous claims not acknowledged as debt, are
disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Revenue from operations and other income are recognized in
accordance with the Accounting Standard (AS-9). Accordingly, wherever
there are uncertainties in the ascertainment-realization of income such
as interest from customers (including the financial condition of the
person from whom the same is to be realized), the same is not accounted
for.
6.2 Interim dividend income from investments is recognized in the
Profit and Loss Account on receipt basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961
including the provisions regarding Minimum Alternate Tax and the
contentions of the Company and also the fact that certain expenditure
becoming allowable on payment being made before filing of the return of
income.
7.2 Deferred tax assets and liabilities are accounted for on the basis
of Accounting Standard AS-22. Deferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
8. BORROWING COST
Borrowing cost attributable to the acquisition or construction of
qualifying assets is capitalized as a part of the cost of those assets.
Other borrowing costs are recognized as an expense in the period to
which they relate.
9. EARNING PER SHARE
The earnings considered in ascertaining the Company's Earnings Per
Share ('EPS') comprise the net profit after tax after reckoning of
dividend to preference shareholders. The number of shares used in
computing basic EPS is the weighted average number of shares
outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares.
Mar 31, 2011
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost
convention basis. The generally accepted accounting principles and the
Accounting Standards referred under section 211(3C) of the Companies
Act, 1956 have been adopted by the Company and disclosures made in
accordance with the requirements of Schedule VI to the Companies Act,
1956 and the Indian Accounting Standards.
2. FIXED ASSETS
Gross block of fixed assets have been stated at their original cost.
Cost includes interest on borrowings upto the date of putting the
assets to use.
3. DEPRECIATION
3.1 Depreciation is provided on Fixed assets with reference to their
historical cost.
3.2 Depreciation is provided on Straight-line method at rates based
upon life determined by the management which are lower than the life
determined based on the rates specified in Schedule XIV to the
Companies Act, 1956. The depreciation rates based on useful life as
estimated by the management are 19% for Vehicles, 19% for Mobiles
(office equipment) and 31.33% for Computers (office equipment).
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a
permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investment in subsidiaries being of long term nature are
valued at cost and no loss is recognized in the fall in their net
worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are
reasonable prospects of such liabilities maturing. Other contingent
liabilities, barring frivolous claims not acknowledged as debt, are
disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Sales are inclusive of excise duty and net of trade discounts.
Export sales include goods invoiced against confirmed orders and
cleared from excise and customs authorities.
6.2 Other items of revenue are recognized in accordance with the
Accounting Standard (AS-9). Accordingly, wherever there are
uncertainties in the ascertainment-realisation of income such as
interest from customers (including the financial condition of the
person from whom the same is to be realized), the same is not accounted
for.
6.3 Interim dividend income from investments is recognized in the
Profit and Loss Account on cash basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961
including the provisions regarding Minimum Alternate Tax and the
contentions of the Company and also the fact that certain expenditure
becoming allowable on payment being made before filing of the return of
income.
7.2 Deferred tax assets and liabilities are accounted for on the basis
of Accounting Standard AS-22. Deferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
8. BORROWING COST
Borrowing cost (including difference in exchange rate on the principal
to the extent it represents interest cost) attributable to the
acquisition or construction of qualifying assets is capitalized as a
part of the cost of those assets. Other borrowing costs are recognized
as an expense in the period to which they relate.
9. EARNING PER SHARE
The earnings considered in ascertaining the CompanyÃs Earnings Per
Share (ÃEPSÃ) comprise the net profit after tax after reckoning of
dividend to preference shareholders. The number of shares used in
computing basic EPS is the weighted average number of shares
outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares.
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared on the historical cost
convention basis. The generally accepted accounting principles and the
Accounting Standards referred under section 211(3C) of the Companies
Act, 1956 have been adopted by the Company and disclosures made in
accordance with the requirements of Schedule VI to the Companies Act,
1956 and the Indian Accounting Standards.
2. FIXED ASSETS
Gross block of fixed assets have been stated at their original cost.
Cost includes interest on borrowings upto the date of putting the
assets to use.
3. DEPRECIATION
3.1 Depreciation is provided on Fixed assets with reference to their
historical cost.
3.2 Depreciation is provided on Straight-line method at rates based
upon life determined by the management which are lower than the life
determined based on the rates specified in Schedule XIV to the
Companies Act, 1956. The depreciation rates based on useful life as
estimated by the management are 19% for Vehicles, 19% for Mobiles
(office equipment) and 31.33% for Computers (office equipment).
4. INVESTMENTS
4.1 Long term quoted investments are valued at cost unless there is a
permanent fall in their value as at the date of Balance Sheet.
4.2 Unquoted investment in subsidiaries being of long term nature are
valued at cost and no loss is recognized in the fall in their net
worth, if any, unless there is permanent fall in their value.
5. CONTINGENT LIABILITY
Liabilities, though contingent, are provided for if there are
reasonable prospects of such liabilities maturing. Other contingent
liabilities, barring frivolous claims not acknowledged as debt, are
disclosed by way of note.
6. REVENUE RECOGNITION
6.1 Sales are inclusive of excise duty and net of trade discounts.
Export sales include goods invoiced against confirmed orders and
cleared from excise and customs authorities.
6.2 Other items of revenue are recognized in accordance with the
Accounting Standard (AS-9). Accordingly, wherever there are
uncertainties in the ascertainment-realisation of income such as
interest from customers (including the financial condition of the
person from whom the same is to be realized), the same is not accounted
for.
6.3 Interim dividend income from investments is recognized in the
Profit and Loss Account on cash basis.
7. TAXATION
7.1 Tax provision is made, in accordance with the Income Tax Act, 1961
including the provisions regarding Minimum Alternate Tax and the
contentions of the Company and also the fact that certain expenditure
becoming allowable on payment being made before filing of the return of
income.
7.2 Deferred tax assets and liabilities are accounted for on the basis
of Accounting Standard AS-22. Deferred tax liabilities and assets are
recognized at substantively enacted tax rates, subject to the
consideration of prudence, on timing difference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
8. BORROWING COST
Borrowing cost (including difference in exchange rate on the principal
to the extent it represents interest cost) attributable to the
acquisition or construction of qualifying assets is capitalized as a
part of the cost of those assets. Other borrowing costs are recognized
as an expense in the period to which they relate.
9. EARNING PER SHARE
The earnings considered in ascertaining the Companys Earnings Per
Share (EPS) comprise the net profit after tax. The number of shares
used in computing basic EPS is the weighted average number of shares
outstanding during the year.
The diluted EPS is calculated on the same basis as basic EPS, after
adjusting for the effects of potential dilutive equity shares.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Kama Holdings Ltd.
-
Kama Holdings Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- BSE Price History
-
Kama Holdings Ltd. Key Financial Ratios
- Ratios
-
Kama Holdings Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Kama Holdings Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Kama Holdings Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Kama Holdings Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
