Mar 31, 2015
1. BACKGROUND
Shri Krishna Prasadam Limited ('The Company') (The name of the Company
was changed from Shri Krishna Prasadam Private Limited to Shri Krishna
Prasadam Limited w.e.f. 13th December, 2013) was incorporated on May
28, 2009 and is primarily engaged in the business of Trading of
Agriculture Products, Securities Trading, Real Estate underwriting
services and other consultancy services. The Company continuously aims
at keeping itself abreast with changing global and national trends and
staying current with technological advances. This mix of innovative
ideas, planning initiatives and use of cutting edge technologies has
enabled the company to stay ahead of competition.
1. ACCOUNTING CONCEPTS
The financial statements are prepared under historical cost convention,
on the accrual basis of accounting in accordance with the Companies
Act, 1956 and the Accounting Principles Generally Accepted in India
('Indian GAAP') and comply with the Accounting Standards issued by the
Institute of Chartered Accountants of India ('ICAI') to the extent
applicable.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with the
Generally Accepted Accounting Principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
3. TANGIBLE FIXED ASSETS
Fixed assets are stated at historical cost less accumulated
depreciation. Cost includes purchase price and all other attributable
cost to bring the assets to its working condition for the intended use.
4. INTANGIBLE ASSETS
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses, if any. Internally generated intangible assets, are
not capitalized and expensed off in the Statement of Profit and Loss in
the year in which the expenditure is incurred. Intangible assets are
amortized on a straight line basis over the estimated useful economic
life. The amortization period and the amortization method are reviewed
at least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly.
5. DEPRECIATION
- Depreciation on assets is provided on Written down value method using
the rates arrived at based on the useful lives estimated by the
management, or those prescribed under the Schedule XIV to the Companies
Act, 1956, ( Schedule II of the Companies Act, 2013) whichever is
higher.
Depreciation on fixed assets added/disposed off during the year/period
is provided on pro-rata basis with reference to the date of
addition/disposal. Individual assets costing upto Rs. 5000 are
depreciated in full in the year of purchase.
6. BORROWING COSTS
Borrowing cost that are directly attributable to the acquisition or
construction of a qualifying asset (including real estate projects) are
considered as part of the cost of the asset/project. All other
borrowing costs are treated as period cost and charged to the profit
and loss account in the year in which incurred.
7. IMPAIRMENT OF ASSETS
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belong is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account.
8. INVESTMENTS
Long-term investments are stated at cost. Provision for diminution, if
any, in the value of each long-term investment is made to recognize a
decline, other than of a temporary nature. Current investments are
stated at lower of cost or market value.
9.INVENTORIES
i.Inventories are stated at cost or net realizable value whichever is
lower on FIFO basis.
10.REVENUE RECOGNITION
i. Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
ii.Interest due on delayed payments by customers is recognized on a
time proportion basis taking into account the amount outstanding and
the applicable interest rate.
iii.Sale is recognized on dispatch to goods from point of sales.
iv. Other income is accounted for on accrual basis in accordance with
Accounting Standards (AS) 9- "Revenue Recognition". v. Insurance and
other claims are recognized in accounts on lodgment to the extent these
are measurable with reasonable certainty of acceptance.
Excess / shortfall is adjusted in the year of receipt.
11. FOREIGN CURRENCY TRANSACTIONS
i. Foreign currency transactions are recorded at exchange rates
prevailing on the date of respective transactions. ii. Current assets
and current liabilities in foreign currencies existing at balance sheet
date are translated at year-end rates. ii. Foreign currency
translation differences related to acquisition of imported fixed assets
are adjusted in the carrying amount of the related fixed assets.
iii. There were no transaction in foreign currency, during the year
(previous year-Nil).
12. ACCOUNTING FOR TAXES ON INCOME
i. Provision for current tax is made, based on the tax payable under
the Income Tax Act, 1961.
ii. Deferred tax on timing differences between taxable and accounting
income is accounted for, using the tax rates and the tax laws enacted
or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax losses and unabsorbed
depreciation are recognized only when there is a virtual certainty of
their realization. Other items are recognized only when there is a
reasonable certainty of their realization.
13. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS A
provision is recognized when:
- the Company has a present obligation as a result of a past event;
- it is probable that an outflow of resources embodying economic
benefits will be required to settle the obligation; and
- a reliable estimate can be made of the amount of the obligation.
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.
Previous Year figures have been re-arranged/re-grouped wherever
considered necessary to confirm to the classification adopted for the
current year.
Mar 31, 2014
1. ACCOUNTING CONCEPTS
The financial statements are prepared under historical cost convention,
on the accrual basis of accounting in accordance with the Companies
Act, 1956 and the Accounting Principles Generally Accepted in India
(''Indian GAAP'') and comply with the Accounting Standards issued by the
Institute of Chartered Accountants of India (''ICAI'') to the extent
applicable.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with the
Generally Accepted Accounting Principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
3. TANGIBLE FIXED ASSETS
Fixed assets are stated at historical cost less accumulated
depreciation. Cost includes purchase price and all other attributable
cost to bring the assets to its working condition for the intended use.
4. INTANGIBLE ASSETS
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses, if any. Internally generated intangible assets, are
not capitalized and expensed off in the Statement of Profit and Loss in
the year in which the expenditure is incurred. Intangible assets are
amortized on a straight line basis over the estimated useful economic
life.
The amortization period and the amortization method are reviewed at
least at each financial year end. If the expected useful life of the
asset is significantly different from previous estimates, the
amortization period is changed accordingly.
5. DEPRECIATION
Depreciation on assets is provided on Written down value method using
the rates arrived at based on the useful lives estimated by the
management, or those prescribed under the Schedule XIV to the Companies
Act, 1956,( Schedule II of the Companies Act, 2013) whichever is
higher.
Depreciation on fixed assets added/disposed off during the year/period
is provided on pro-rata basis with reference to the date of
addition/disposal. Individual assets costing upto Rs. 5000 are
depreciated in full in the year of purchase.
6. BORROWING COSTS
Borrowing cost that are directly attributable to the acquisition or
construction of a qualifying asset (including real estate projects) are
considered as part of the cost of the asset/project. All other
borrowing costs are treated as period cost and charged to the profit
and loss account in the year in which incurred.
7. IMPAIRMENT OF ASSETS
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generatingunit to which the asset belong is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
profit and loss account.
8. INVESTMENTS
Long-term investments are stated at cost. Provision for diminution, if
any, in the value of each long-term investment is made to recognize a
decline, other than of a temporary nature. Current investments are
stated at lower of cost or market value.
9. INVENTORIES
Inventories are stated at cost or net realizable value whichever is
lower on FIFO basis.
10. REVENUE RECOGNITION
i. Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
ii. Interest due on delayed payments by customers is recognized on a
time proportion basis taking into account the amount outstanding and
the applicable interest rate.
iii. Sale is recognized on dispatch to goods from point of sales.
iv. Other income is accounted for on accrual basis in accordance with
Accounting Standards (AS) 9- "Revenue Recognition".
v. Insurance and other claims are recognized in accounts on lodgment to
the extent these are measurable with reasonable certainty of
acceptance. Excess / shortfall is adjusted in the year of receipt.
11. FOREIGN CURRENCY TRANSACTIONS
i. Foreign currency transactions are recorded at exchange rates
prevailing on the date of respective transactions.
ii. Current assets and current liabilities in foreign currencies
existing at balance sheet date are translated at year-end rates.
iii. Foreign currency translation differences related to acquisition of
imported fixed assets are adjusted in the carrying amount of the
related fixed assets.
iv. There were no transactions in foreign currency, during the year
(previous year-Nil).
12. ACCOUNTING FOR TAXES ON INCOME
i. Provision for current tax is made, based on the tax payable under
the Income Tax Act, 1961.
ii. Deferred tax on timing differences between taxable and accounting
income is accounted for, using the tax rates and the tax laws enacted
or substantially enacted as on the balance sheet date.
Deferred tax assets on unabsorbed tax losses and unabsorbed
depreciation are recognized only when there is a virtual certainty of
their realization. Other items are recognized only when there is a
reasonable certainty of their realization.
13. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when: the Company has a present obligation
as a result of a past event; it is probable that an outflow of
resources embodying economic benefits will be required to settle the obligation; and reliable estimate can be made of the amount of the
obligation.
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.
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