Mar 31, 2015
1. CORPORATE INFORMATION
Kapil Cotex limited is engaged in the business of textile & its allied
products. During the concerned year, it did not get any revenue from
its main objects. However, it deals in shares & Securities, where it
earned capital gains & dividend income.
(A) System of Accounting:
I. The Financial statements are prepared under the historical cost
convention and in accordance with generally accepted accounting
principles and the Accounting Standards issued by The Institute of
Chartered Accountants of India along with the provisions of the
Companies Act, 1956.
II The Company, generally, follows the mercantile system of accounting
and recognizes income and expenditure on accrual basis. Dividend Income
is recognized as & when received.
III. Estimates and assumptions used in the preparation of the
financial statements are based upon management evaluation of the
relevant facts and circumstances as of the date of the financial
statements, which may differ from the actual results at a subsequent
date.
(B) Provisions & Contingent Liabilities:
A provision is recognized when there is present obligation as a result
of past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect if which a reliable
estimate can be made. Provisions are determined based on the best
estimate of the amount required to settle the obligation at the Balance
sheet date. Contingent Liabilities are not recognized in the financial
statements but is disclosed.
(C) Earnings Per Share:- The earnings considered in ascertaining the
Company's EPS comprises the net profit after tax. The number of shares
used in computing basic EPS is weighted average number of shares
outstanding during the year.
(D) Employees Benefit:- Short-term employee benefits are recognized as
an expense at the undiscounted amount in the Profit & Loss Account of
the year in which the related service is rendered. As per the revised
AS- 15 "Employee Benefits", it is mandatory that the company should
provide liability on the basis of Acturial Valuations. However, the
company has accounted employee benefits on cash basis as & when claimed
by employee & no provisions for post employment benefits have been
made.
(E) Segment Reporting:- The Company has carried out investment
activities & earned capital gains & dividend income, the same has been
recognized separately in the profit & loss account. Other than this,
it has earned rental & interest income which has been shown separately
in the P&L Account.
(F) Taxation:- Current tax is determined as the amount of tax payable
in respect of taxable income for the year. Deferred tax is recognized
to that extent only, subject to consideration of prudence in respect of
deferred tax assets, or timing differences, being the differences
between the taxable income and accounting income that originate in one
year and are capable of reversal in one or more subsequent years,
having tax consequences.
(G) Investments
Investments are classified as Non-Current investments and Current
investments. Investments that are readily realizable and intended to be
held for not more than a year are classified as current investments.
All other investments are classified as Non-current investments.
Non-current investments are stated at cost and any decline other than
temporary, in the value of such investments is charged to the profit
and loss account. Current investments are stated at the cost price.
However, provision for diminution in value is made to recognize a
decline other than temporary in the value of investments.
(H) Fixed Assets & Depreciation
I. All fixed assets are stated at historical cost of
acquisition/construction cost less depreciation. Costs include all
expenses incurred to bring the assets to its present location &
Condition.
II. Pursuant to the Requirements of the Schedule II of the Companies
Act, 2013 the company has revised the depreciation rates wef 1st
April,2014 as prescribed under said Act. The company has adopted the
estimated useful life of the fixed assets as stipulated by the Schedule
II of the Act. As a result the deprecation amount for the year ended
31st March,2015 is lower.
Mar 31, 2014
(A) System of Accounting:
I. The Financial statements are prepared under the historical cost
convention and in accordance with
generally accepted accounting principles and the Accounting Standards
issued by The Institute of Chartered Accountants of India along with
the provisions of the Companies Act, 1956.
II The Company, generally, follows the mercantile system of accounting
and recognizes income and expenditure on accrual basis. Dividend Income
is recognized as & when received.
III. Estimates and assumptions used in the preparation of the financial
statements are based upon management evaluation of the relevant facts
and circumstances as of the date of the financial statements, which may
differ from die actual results at a subsequent date.
(B) Provisions & Contingent liabilities;
A provision is recognized when there is present obligation as a result
of past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect if which a reliable
estimate can be made. Provisions are determined based on the best
estimate of the amount required to settle the obligation at the Balance
sheet date. Contingent Liabilities are not recognized in the financial
statements but is disclosed.
(C) Earnings Per Share;-
The earnings considered in ascertaining the Company''s EPS comprises
the net profit after tax. The number of shares used in computing basic
EPS is weighted average number of shares outstanding during the year.
(D) Employees Benefit:-
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Profit & Loss Account of the year in which
the related service is rendered. As per the revised AS- 15 ''Employee
Benefits", it is mandatory that the company should provide liability
on the basis of Acturial Valuations. However, the company has accounted
employee benefits on cash basis as & when claimed by employee & no
provisions for post employment benefits have been made.
(E) Segment Reporting
The Company has carried out investment activities & earned capital
gains & dividend income, the same has been recognized separately in the
profit & loss account Other than this, it has earned rental & interest
income which has been shown separately in the P&L Account. ''
(F) Taxation
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized to that extent
only, subject to consideration of prudence in respect of deferred tax
assets, or timing differences, being the differences between the
taxable income and accounting income that originate in one year and are
capable of reversal in one or more subsequent years, having tax
consequences.
(G) Investments
Investments are classified as Non-Current investments and Current
investments. Investments that are readily realizable and intended to be
held for not more than a year are classified as current investments.
All other investments are classified as Non-current investments.
Non-current investments are stated at cost and any decline other than
temporary, in the value of such investments is charged to the profit
and loss account. Current investments are stated at the cost price.
However, provision for diminution in value is made to recognise a
decline other than temporary in the value of investments.
(H) Fixed Assets & Depreciation
I. All fixed assets are stated at historical cost of
acquisition/construction cost less depreciation. Costs include all
expenses incurred to bring the assets to its present location &
Condition.
II. Depreciation on fixed assets is provided at the written down value
the rates prescribed in Schedule-XTV of the Companies Act.
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