SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Finance - Leasing & Hire Purchase > Accounting Policy followed by KJMC Financial Services - BSE: 530235, NSE: KJMCFIN
YOU ARE HERE > MONEYCONTROL > MARKETS > FINANCE - LEASING & HIRE PURCHASE > ACCOUNTING POLICY - KJMC Financial Services
KJMC Financial Services
BSE: 530235|NSE: KJMCFIN|ISIN: INE533C01018|SECTOR: Finance - Leasing & Hire Purchase
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
, 16:01
13.90
0
VOLUME 100
KJMC Financial Services is not traded in the last 30 days
« Mar 12
Accounting Policy Year : Mar '13
a.  Basis of Accounting:
 
 The accounting financial statements are prepared and presented under
 the historical cost convention, on the accrual basis of accounting and
 comply with the Accounting Standards prescribed by the Companies
 (Accounting Standards) Rules, 2006 and the relevant provisions of the
 Companies Act, 1956 in material respect and to the extent applicable.
 
 b.  Use of estimates
 
 The preparation of the financial statements, in conformity with the
 generally accepted accounting principles, requires estimates and
 assumptions to be made which affect the reported amounts of assets and
 liabilities on the date of the financial statements and the reported
 amounts of revenues and expenses during the reporting period.
 Differences between actual results and estimates are recognized in the
 period in which the results are known/ materialized.
 
 c.  Investments
 
 i) Current Investments: Current investments are valued at the lower of
 cost arrived on weighted average basis or fair value.
 
 ii) Non Current Investments: A provision is made for diminution other
 than temporary in nature. These are intended to be held for a period of
 more than one year from the date of the investment and are valued at
 cost. The cost is determined on weighted average method basis.
 
 d.  Fixed Assets and Depreciation:
 
 (i) Tangible Fixed Assets:
 
 Tangible Fixed Assets are stated at cost, net of accumulated
 depreciation and accumulated impairment losses, if any. The cost
 comprises of purchase price, borrowing cost of capitalization and
 directly attributable cost of bringing the asset to its working
 condition for the intended use. Any trade discounts and rebates are
 deducted in arriving at the purchase price.
 
 Depreciation is provided under the written down value method, at the
 rates and in the manner prescribed under Schedule XIV of the Companies
 Act, 1956.
 
 (ii) Intangible Fixed Assets:
 
 Intangible Fixed Assets are measured on initial recognition at cost.
 The cost of intangible assets acquired in an amalgamation in the nature
 of purchase is their fair value as at the date of amalgamation.
 Following initial recognition, intangible assets are recognized at cost
 less accumulated amortization. Intangible assets are amortized
 systematically on straight line basis over its useful life of 3 years.
 
 e.  Taxation:
 
 Tax expense comprises of current and deferred tax. Current Income-tax
 is measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India and tax laws
 prevailing in the respective tax jurisdictions where the company
 operates. The tax rates and tax laws used to compute the amount are
 those that are enacted or substantively enacted, at the reporting date.
 
 Deferred income taxes reflect the impact of timing differences between
 taxable income and accounting income originating during the current
 year and reversal of timing differences for the earlier years. Deferred
 tax is measured using the tax rates and the tax laws enacted or
 substantively enacted at the reporting date.
 
 Deferred tax liabilities are recognized for all taxable timing
 differences. Deferred tax assets are recognized for deductible timing
 differences only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized.
 
 f.  Revenue Recognition:
 
 Revenue from Professional fees & Consultancy charges, Income from
 Brokerage & interest on loans and Inter Corporate Deposits and lease
 rent are recognized as and when there is reasonable certainty of its
 ultimate realization and on completion of the assignment.
 
 Non Performing Assets:
 
 Income is not recognized in respect of Non Performing Assets, if any,
 as per guidelines for prudential norms prescribed by Reserve bank of
 India. (RBI)
 
 Dividend:
 
 Dividend Income is recognized when the Company''s right to receive is
 established by the reporting date.
 
 g.  Foreign Currency Transactions
 
 Transactions in Foreign Currencies are recorded at the exchange rate
 prevailing on the date of transactions.
 
 Foreign currency current assets and current liabilities outstanding at
 the yearend are translated at the yearend exchange rate and
 unrealized exchange gain or loss is recognized in the Statement of
 Profit and Loss.
 
 Realized exchange gain/loss on foreign transactions during the year is
 recognized in the Statement of Profit and Loss.
 
 h.  Derivative Transactions:
 
 In accordance with the ICAI announcement, derivatives contract, other
 than foreign contracts covered under AS 11, are marked to market on a
 portfolio basis, and the loss if any, after considering the offsetting
 effect of gain on the underlying hedged item, is charged to the
 Statement of Profit & Loss.
 
 i.  Stock in Trade:
 
 Stocks of shares are valued at the lower of cost arrived on weighted
 average basis or fair value.
 
 j. Employee Benefits:
 
 i) Short term employee benefits are charged off at the undiscounted
 amount in the year in which the related service is rendered.
 
 ii) The company is exempted from Payment of Gratuity Act, 1972 in view
 of its strength of employees being less than threshold limit attracting
 the applicability of the said statute and as such no provision has been
 made for the said liability.
 
 iii) Leave Encashment is not provided for on actuarial basis in view of
 the employees being less than 10 and the same is charged on actual
 basis.
 
 k. Provisions, Contingent Liabilities & Contingent Assets:
 
 Provisions involving substantial degree of estimation in measurement
 are recognized when there is present obligation as a result of past
 event and it is probable that there will be outflow of resources.
 Contingent liabilities are not recognized but are disclosed in the
 notes. Contingent assets are neither recognized nor disclosed in the
 financial statements. Provisions, Contingent Liabilities and Contingent
 Assets are reviewed at each Balance Sheet date.
 
 l. Earnings per Share:
 
 Basic Earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the Weighted
 Average Number of equity shares outstanding during the period. For the
 purpose of calculating diluted earnings per share, the net profit or
 loss for the period attributable to equity shareholders and the
 Weighted Average Number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
Source : Dion Global Solutions Limited
Quick Links for kjmcfinancialservices
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.