Election 2014
SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Computers - Software Medium/Small > Accounting Policy followed by Kernex Microsystems (India) - BSE: 532686, NSE: KERNEX
YOU ARE HERE > MONEYCONTROL > MARKETS > COMPUTERS - SOFTWARE MEDIUM/SMALL > ACCOUNTING POLICY - Kernex Microsystems (India)
Kernex Microsystems (India)
BSE: 532686|NSE: KERNEX|ISIN: INE202H01019|SECTOR: Computers - Software Medium/Small
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Apr 21, 13:12
39.70
2 (5.31%)
VOLUME 47,548
LIVE
NSE
Apr 21, 13:15
39.85
2.3 (6.13%)
VOLUME 157,492
Mar 12
Accounting Policy Year : Mar '13
1.1 Basis of accounting and preparation of financial statements
 
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on accrual basis under the historical
 cost convention. The accounting policies adopted in the preparation of
 the financial statements are consistent with those followed in the
 previous year unless otherwise stated.
 
 1.2 Use of estimates
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires the Management to make estimates and assumptions
 considered in the reported amounts of assets and liabilities (including
 contingent liabilities) and the reported income and expenses during the
 year. The Management believes that the estimates used in preparation of
 the financial statements are prudent and reasonable. Future results
 could differ due to these estimates and the differences between the
 actual results and the estimates are recognised in the periods in which
 the results are known / materialise.
 
 1.3 Inventories
 
 Inventories of components are valued at cost or realisable value
 whichever is less. Work in Progress is valued at cost of materials and
 services used.
 
 1.4 Cash and cash equivalents
 
 Cash comprises cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash and which are
 subject to insignificant risk of changes in value.
 
 1.5 Cash flow statement
 
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non-cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 
 1.6 Depreciation
 
 Depreciation has been provided on the fixed assets on WDV method as per
 the rates prescribed in Schedule XIV to the Companies Act, 1956.
 
 1.7 Revenue recognition
 
 Revenue from contracts
 
 Revenue from contracts priced on a time and material basis are
 recognised when services are rendered and related costs are incurred.
 
 Revenue from services
 
 Service income is recognised as per the terms of contracts with the
 customer, when the related service is performed.
 
 Sale of goods
 
 Revenue from the product sales is exclusive of returns, and applicable
 trade discounts but inclusive of duties and taxes collected on the
 same.
 
 1.8 Other income
 
 Interest income is accounted on accrual basis.
 
 1.9 Tangible fixed assets
 
 Fixed Assets are valued at original cost including incidental
 expenditures, taxes and duties net of CENVAT and VAT credit availed.
 
 Capital work-in-progress:
 
 Projects under which assets are not ready for their intended use and
 other capital work-in-progress are carried at cost, comprising direct
 cost, related incidental expenses and attributable interest.
 
 1.10 Foreign currency transactions and translations
 
 Initial recognition
 
 Transactions in foreign currencies entered into by the Company and its
 integral foreign operations are accounted at the exchange rates
 prevailing on the date of the transaction or at rates that closely
 approximate the rate at the date of the transaction.
 
 Measurement of foreign currency monetary items at the Balance Sheet
 date
 
 Foreign currency monetary items of the Company and its net investment
 in non-integral foreign operations outstanding at the Balance Sheet
 date are restated at the year-end rates.
 
 Treatment of exchange differences
 
 Exchange differences arising on settlement / restatement of short-term
 foreign currency monetary assets and liabilities of the Company are
 recognised as income or expense in the Statement of Profit and Loss.
 
 1.11 Investments
 
 Long-term investments in Subsidiary (100% wholly owned Subsidiary) are
 carried at cost.
 
 1.12 Employee benefits
 
 Defined contribution plans
 
 In respect of retirement benefits in the form of provident fund, the
 contribution payable by the company for a year is charged to the Profit
 and Loss account.
 
 Defined benefit plans
 
 Gratuity: Gratuity benefit is applicable to all the permanent and full
 time employees of the company.  Gratuity paid out is based on last
 drawn basic salary and DA at the time of termination or retirement. The
 scheme takes into account each completed year of service or part there
 of in excess of 6 months. Annual Contribution to the employee''s
 Gratuity fund, Established with LIC of India(LIC) are determined based
 on an actuarial valuation made by the LIC as at the year end.
 
 Short-term employee benefits
 
 The Company does not have any scheme for Leave encashment in place.
 
 1.13 Segment reporting
 
 Since the Company has no Reportable segment to report, Segment
 Reporting under Accounting Standard - 17 Issued by Institute of
 Chartered Accountants of India (ICAI) is not applicable.
 
 1.14 Earnings per share
 
 Basic earnings per share is computed by dividing the profit / (loss)
 after tax (including the post tax effect of extraordinary items, if
 any) by the weighted average number of equity shares outstanding during
 the year.  Diluted earnings per share is computed by dividing the
 profit / (loss) after tax (including the post tax effect of
 extraordinary items, if any) as adjusted for dividend, interest and
 other charges to expense or income relating to the dilutive potential
 equity shares, by the weighted average number of equity shares
 considered for deriving basic earnings per share and the weighted
 average number of equity shares which could have been issued on the
 conversion of all dilutive potential equity shares.
 
 1.15 Taxes on income
 
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.
 
 Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
 gives future economic benefits in the form of adjustment to future
 income tax liability, is considered as an asset if there is convincing
 evidence that the Company will pay normal income tax. Accordingly, MAT
 is recognised as an asset in the Balance Sheet when it is probable that
 future economic benefit associated with it will flow to the Company.
 
 Deferred tax is recognised on timing differences, being the differences
 between the taxable income and the 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 substantially enacted as at the reporting date. Deferred tax
 liabilities are recognised for all timing differences. Deferred tax
 assets in respect of unabsorbed depreciation and carry forward of
 losses are recognised only if there is virtual certainty that there
 will be sufficient future taxable income available to realise such
 assets. Deferred tax assets are recognised for timing differences of
 other items only to the extent that reasonable certainty exists that
 sufficient future taxable income will be available against which these
 can be realised. 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
 realisability.
 
 1.16 Provisions and contingencies
 
 A provision is recognised when the Company has a present obligation as
 a result of past events and it is probable that an outflow of resources
 will be required to settle the obligation in respect of which a
 reliable estimate can be made. Provisions (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 Balance Sheet date. These are reviewed at each Balance Sheet date and
 adjusted to reflect the current best estimates.  Contingent liabilities
 are disclosed in the Notes.
Source : Dion Global Solutions Limited
Quick Links for kernexmicrosystemsindia
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.