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Accounting Policies of Kapil Raj Finance Ltd. Company

Mar 31, 2015

(i) Accounting convention The financial statements have been prepared on historical costs and on the basis of going concern and are in accordance with Generally Accepted Accounting Principles in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India notified under section 133 of the Companies Act, 2013. The financial statements are prepared on accrual basis.

(ii) Use of estimates The presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates are made to the best of the management's ability considering all necessary information. Differences, if any, between actual results and estimates are recognized in the period in which the results are ascertained. These being technical in nature the auditors rely on the judgment of the management.

(iii) Revenue

(a) Revenue in respect of sale of shares activities is recognized upon the transfer of significant risks and rewards to the buyer.

(b) Interest income is recognized on time basis determined by the amount outstanding and the rate applicable

(iv) Investments

(a) Long-term investments includes investment held in properties are shown at cost.

(v) Taxes on income Current tax is ascertained on the basis of taxable income computed in accordance with the provisions of the Income Tax Act, 1961.

(vi) Segment Reporting As per Accounting Standard (AS) 17 on "Segment Reporting", segment information has been provided under the Notes to Financial Statements.

(vii) Provisions The Company creates a provision when there is a present obligation as a result of past events that probably requires an outflow of resources and reliable estimates can be made of the amount of the obligation.

(ix) Earnings per share Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to equity shareholders by weighted average number of equity shares outstanding during the year.

(x) Cash and cash equivalents Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand.