KND Engineering Technologies Ltd. कंपली की लेखा नीति

Mar 31, 2014

A) The Financial Statements are prepared to comply in all material aspects with all the applicable account- ing principles in India, the applicable accounting standards prescribed under section 211 (3C) of the Companies Act, 1956 and the relevant provision of the Companies Act, 1956.

b) FIXED ASSETS

Fixed Assets are stated at cost of acquisition and related expenditure. The cost of fixed assets acquired on finance lease is comprised of present value of minimum hire purchase / lease payments at the inception of lease and residual value of the related assets. The discounting factor considered in calculating the present value of the minimum hire purchase / lease payments is the rate of interest implicit in the lease.

c) DEPRECIATION

Depreciation is provided on Written Down Value method at the rates prescribed in Schedule XIV of the Companies Act, 1956 or Income Tax rate which ever is higher.

d) IMPAIRMENT LOSS

Assets are tested for impairment at each Balance sheet date if there is any indication in this regard. Impairment loss is recognized if the carrying amount of the fixed assets exceeds the corresponding recoverable amount i.e. the higher of the asset''s net selling price and value in use.

e) INVESTMENT

Long Term investments are valued at cost less provision for permanent diminution, if any, in value of such investments. Current investments which are expected to be liquidated within one year are valued at lower of cost and fair value. Investments in integrated Joint Ventures are carried at cost net of adjustments for Company''s shares in profit or losses as recognised.

f) INVENTORIES

Inventories other than tools / stores comprising various construction implements and tackles, which are more of a type of equipment having a short life, are valued at lower of cost and net realisable value. The cost, in general, are determined under FIRST IN FIRST OUT method. Tools / stores are stated on the basis of their cost and effective future life determined on technical evaluation.

g) REVENUE

The recognition of revenue and expenses by reference to the stage of completion of a contract is done on percentage of completion method. Under this method, contract revenue is matched with the contract costs incurred in reaching the stage of completion, resulting in the reporting of revenue, expenses and profit which can be attributed to the proportion of work completed. This method provides useful information on the extent of contract activity and performance during a period.

Under the percentage of completion method, contract revenue is recognized as revenue in the statement of profit and loss in the accounting periods in which the work is performed. Contract costs are usually recognized as an expense in the statement of profit and loss in the accounting periods in which the work to which they relate is performed. However, any expected excess of total contract costs over total contract revenue for the contract is also recognized as an expense immediately. When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract is recognized as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date.

Work in Progress is valued as per method prescribed in Accounting Standard 7 and shown under Revenue from operation separately.

h) BORROWING COST

Borrowing cost attributable to the acquisition of qualifying assets is added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expenses in the period in which these are incurred.

i) CLAIMS AND COUNTER CLAIMS

Claims and counter claims (related to customers), including those under arbitration, are accounted for on their final disposal. Other contract related claims are recognised when there is reasonable certainty as to their recoverability.

j) EMPLOYEE BENEFITS

Short-term Employee Benefits (i e. benefits payable within one year) are recognised in the period in which employee services are rendered.

Contributions towards Provident Funds are recognised as expense. Provident Fund Contributions in respect of employees are made to Commissioner of Provident Fund Liability towards Gratuity (Defined Benefit Plans) covering eligible employees is provided on the basis of year-end actuarial valuation.

Contribution to Central Government administered Employees'' State Insurance Scheme for eligible employees are recognised as charge.

Contributions under Employees Pension Scheme are made as per statutory requirement and charged as expense for the year.

Actuarial gains/losses arising in Defined Benefit Plans are recognised immediately in the Profit and Loss Account as income / expense for the year in which they occur.

k) TAXATION

Current Tax in respect of taxable income is provided for the year based on applicable tax rates and laws. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, 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 and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess that sufficient future taxable income will be available against which such deferred tax assets can be reversed/ realized.

l) PROVISION AND CONTINGENT LIABILITIES

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources 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 or there is a present obligation, reliable estimate of the amount of which cannot be made. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

m) PRIOR PERIOD AND EXTRAORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior Period and extra ordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed. Prior period items are disclosed by adjustment from the retained earnings brought forward as per the revised schedule VI.

n) MATERIAL EVENTS

Material events occurring after the Balance Sheet date are taken into cognizance.

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Mar 31, 2013

A) The Financial statements are prepared to comply in all material aspects with all the applicable account- ing principles in India, the applicable accounting standards prescribed under section 211(3C) of the Companies Act, 1956 and the relevant provision of the Companies Act, 1956.

b) FIXED ASSETS

Fixed Assets are stated at cost of acquisition and related expenditure. The cost of fixed assets acquired on finance lease is comprised of present value of minimum hire purchase / lease payments at the inception of lease and residual value of the related assets. The discounting factor considered in calculating the present value of the minimum hire purchase / lease payments is the rate of interest implicit in the lease.

c) DEPRECIATION

Depreciation is provided on Written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956 or Income Tax rate which ever is higher.

d) IMPAIRMENT LOSS

Assets are tested for impairment at each Balance sheet date if there is any indication in this regard. Impairment loss is recognized if the carrying amount of the fixed assets exceeds the corresponding recoverable amount i.e. the higher of the asset''s net selling price and value in use.

e) INVESTMENT

Long Term investments are valued at cost less provision for permanent diminution, if any, in value of such investments. Current investments which are expected to be liquidated within one year are valued at lower of cost and fair value. Investments in integrated Joint Ventures are carried at cost net of adjustments for Company''s shares in profit or losses as recognised.

f) INVENTORIES

Inventories other than tools / stores comprising various construction implements and tackles, which are more of a type of equipment having a short life, are valued at lower of cost and net realisable value. The cost, in general, are determined under FIRST IN FIRST OUT method. Tools / stores are stated on the basis of their cost and effective future life determined on technical evaluation.

g) REVENUE

The recognition of revenue and expenses by reference to the stage of completion of a contract is done on percentage of completion method. Under this method, contract revenue is matched with the contract costs incurred in reaching the stage of completion, resulting in the reporting of revenue, expenses and profit which can be attributed to the proportion of work completed. This method provides useful information on the extent of contract activity and performance during a period.

Under the percentage of completion method, contract revenue is recognized as revenue in the statement of profit and loss in the accounting periods in which the work is performed. Contract costs are usually recognized as an expense in the statement of profit and loss in the accounting periods in which the work to which they relate is performed. However, any expected excess of total contract costs over total contract revenue for the contract is also recognized as an expense immediately.When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract is recognized as revenue and expenses respectively by reference to the stage of completion of the contract activity at the reporting date

h) BORROWING COST

Borrowing cost attributable to the acquisition of qualifying assets is added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expenses in the period in which these are incurred.

i) CLAIMS AND COUNTER CLAIMS

Claims and counter claims (related to customers), including those under arbitration, are accounted for on their final disposal. Other contract related claims are recognised when there is reasonable certainty as to their recoverability.

j) EMPLOYEE BENEFITS

Short-term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered.

Contributions towards provident funds are recognised as expense. Provident fund contributions in respect of employees are made to Commissioner of Provident Fund Liability towards gratuity (Defined Benefit Plans) covering eligible employees is provided on the basis of year-end actuarial valuation.

Contribution to Central Government administered Employees'' State Insurance Scheme for eligible employees are recognised as charge.

Contributions under Employees Pension Scheme are made as per statutory requirement and charged as expense for the year.

Actuarial gains/losses arising in Defined Benefit Plans are recognised immediately in the Profit and Loss Account as income / expense for the year in which they occur.

k) TAXATION

Current Tax in respect of taxable income is provided for the year based on applicable tax rates and laws. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, 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 and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess that sufficient future taxable income will be available against which such deferred tax assets can be reversed/ realized.

I) PROVISION AND CONTINGENT LIABILITIES

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources 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 or there is a present obligation, reliable estimate of the amount of which cannot be made. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

m) PRIOR PERIOD AND EXTRAORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior Period and extra ordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed. Prior period items are disclosed by adjustment from the retained earnings brought forward as per the revised schedule VI.

n) MATERIAL EVENTS

Material events occurring after the Balance Sheet date are taken into cognizance.

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Mar 31, 2011

The Financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards prescribed under section 211(3C) of the Companies Act,1956 and the relevant provision of the Companies Act,1956.

a) FIXED ASSETS

Fixed Assets are stated at cost of acquisition and related expenditure. The cost of fixed assets acquired on finance lease is comprised of present value of minimum hire purchase / lease payments at the inception of lease and residual value of the related assets. The discounting factor considered in calculating the present value of the minimum hire purchase / lease payments is the rate of interest implicit in the lease.

b) DEPRECIATION

Depreciation is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956.Company has adopted the higher of Income tax rate or company's act rate.

c) IMPAIRMENT LOSS

Assets are tested for impairment at each Balance Sheet date if there is any indication in this regard. Impairment loss is recognised if the carrying amount of the fixed assets exceeds the corresponding recoverable amount i.e. the higher of the asset's net selling price and value in use.

d) INVESTMENT

Long Term investments are valued at cost less provision for permanent diminution, if any, in value of such investments. Current investments which are expected to be liquidated within one year are valued at lower of cost and fair value. Investments in integrated Joint Ventures are carried at cost net of adjustments for Company's shares in profit or losses as recognised.

e) INVENTORIES

Inventories other than tools / stores comprising various construction implements and tackles, which are more of a type of equipment having a short life, are valued at lower of cost and net realisable value. The cost, in general, are determined under FIRST IN FIRST OUT method. Tools / stores are stated on the basis of their cost and effective future life determined on technical evaluation.

f) REVENUE

Revenue is recognised under percentage of completion method. The stage of completion is determined on the basis of completion of physical proportion of the contract work. Extra work and variation in contract (as mutually agreed), to the extent that it is probable that they will result in revenue and can be reliably measured is also covered. Dividend income on investments is accounted for when the right to receive the payment is established.

g) BORROWING COST

Borrowing cost attributable to the acquisition of qualifying assets is added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expenses in the period in which these are incurred.

h) CLAIMS AND COUNTER CLAIMS Claims and counter claims (related to customers), including those under arbitration, are accounted for on their final disposal. Other contract related claims are recognised when there is reasonable certainty as to their recoverability.

i) EMPLOYEE BENEFITS

Short-term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered.

Contributions towards provident funds are recognised as expense. Provident fund contributions in respect of employees are made to Trusts administered by the Company and such Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Central Government under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any is to be made good by the Company. Liability towards gratuity and end of service benefit (Defined Benefit Plans) covering eligible employees is provided on the basis of year-end actuarial valuation.

Contribution to Central Government administered Employees' State Insurance Scheme for eligible employees is recognised as charge.

Contributions under Employees Pension Scheme are made as per statutory requirement and charged as expense for the year.

Actuarial gains/losses arising in Defined Benefit Plans are recognised immediately in the Profit and Loss

Account as income / expense for the year in which they occur.

Liability towards leave pay payable to employees as per contractual terms has been estimated at Rs 7,25,000/- and has been provided in the accounts. No actuarial valuation has been done in the regard.

j) TAXATION

Current Tax in respect of taxable income is provided for the year based on applicable tax rates and laws.

Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, 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 and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess that sufficient future taxable income will be available against which such deferred tax assets can be reversed/ realized.

k) PROVISION AND CONTINGENT LIABILITIES

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources 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 or there is a present obligation, reliable estimate of the amount of which cannot be made. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for

l) PRIOR PERIOD AND EXTRAORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior Period and extra ordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

m) MATERIAL EVENTS

Material events occurring after the Balance Sheet date are taken into cognizance.

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Mar 31, 2010

The Financial statements are prepared to comply in all material aspects with all the applicable accounting principles in India, the applicable accounting standards prescribed under section 211(3C) of the Companies Act, 1956 and the relevant provision of the Companies Act, 1956.

a) FIXED ASSETS

Fixed Assets are stated at cost of acquisition and related expenditure. The cost of fixed assets acquired on finance lease is comprised of present value of minimum hire purchase/ lease payments at the inception of lease and residual value of the related assets. The discounting factor considered in calculating the present value of the minimum hire purchase / lease payments is the rate of interest implicit in the lease.

b) DEPRECIATION

Depreciation is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956.Company has adopted the higher of Income tax rate or companys act rate.

c) IMPAIRMENT LOSS

Assets are tested for impairment at each Balance Sheet date if there is any indication in this regard. Impairment loss is recognised if the carrying amount of the fixed assets exceeds the corresponding recoverable amount i.e. the higher of the assets net selling price and value in use.

d) INVESTMENT

Long Term investments are valued at cost less provision for permanent diminution, if any, in value of such investments. Current investments which are expected to be liquidated within one year are valued at lower of cost and fair value. Investments in integrated Joint Ventures are carried at cost net of adjustments for Companys shares in profit or losses as recognised.

e) INVENTORIES

Inventories other than tools / stores comprising various construction implements and tackles, which are more of a type of equipment having a short life, are valued at lower of cost and net realisable value. The cost, in general, are determined under F|RST IN FIRST OUT method. Tools / stores are stated on the basis of their cost and effective future life determined on technical evaluation.

f) REVENUE

Revenue is recognised under percentage of completion method. The stage of completion is determined on the basis of completion of physical proportion of the contract work. Extra work and variation in contract (as mutually agreed), to the extent that it is probable that they will result in revenue and can be reliably measured is also covered. Dividend income on investments is accounted for when the right to receive the payment is established.

g) BORROWING COST

Borrowing cost attributable to the acquisition of qualifying assets is added to the cost up to the date when such assets are ready for their intended use. Other borrowing costs are recognised as expenses in the period in which these are incurred.

h) CLAIMS AND COUNTER CLAIMS

Claims and counter claims (related to customers), including those under arbitration, are accounted for on their final disposal. Other contract related claims are recognised when there is reasonable certainty as to their recoverability.

i) EMPLOYEE BENEFITS

Short-term Employee Benefits (i.e. benefits payable within one year) are recognised in the period in which employee services are rendered.

Contributions towards provident funds are recognised as expense. Provident fund contributions in respect of employees are made to Trusts administered by the Company and such Trusts invest funds following a pattern of investments prescribed by the Government. The interest rate payable to the members of the Trusts is not lower than the rate of interest declared annually by the Central Government under the Employees Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any is to be made good by the Company.

Liability towards gratuity and end of service benefit (Defined Benefit Plans) covering eligible employees is provided on the basis of year-end actuarial valuation.

Contribution to Central Government administered Employees State Insurance Scheme for eligible employ- ees is recognised as charge.

Contributions under Employees Pension Scheme are made as per statutory requirement and charged as expense for the year.

Actuarial gains/losses arising in Defined Benefit Plans are recognised immediately in the Profit and Loss Account as income / expense for the year in which they occur.

Liability towards leave pay payable to employees as per contractual terms has been estimated at Rs 8,10,425/ - and has been provided in the accounts. No actuarial valuation has been done in the regard.

j) TAXATION

Current Tax in respect of taxable income is provided for the year based on applicable tax rates and laws. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, 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 and is measured using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are reviewed at each Balance Sheet date to re-assess that sufficient future taxable income will be available against which such deferred tax assets can be reversed/ realized.

k) PROVISION AND CONTINGENT LIABILITIES

The Company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources 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 or there is a present obligation, reliable estimate of the amount of which cannot be made. Where there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.

l) PRIOR PERIOD AND EXTRAORDINARY ITEMS AND CHANGES IN ACCOUNTING POLICIES

Prior Period and extra ordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

m) MATERIAL EVENTS

Material events occurring after the Balance Sheet date are taken into cognizance.