Accounting Policies of KBS India Ltd. Company

Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES:

i. ACCOUNTING CONCEPTS & BASIS OF PREPARATION:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Financial statements prepared as per Ind AS notified by the Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules 2015 as amended and other relevant provisions of the Act. The accounting policies are applied consistently to all the periods in the financial statements including for the preparation and presentation of financial statements with significant accounting policies.

Cash and Cash equivalent in the balance sheet comprises cash at bank, cash in hand and demand short term fixed deposit with the bank which is integral part of the company cash management process.

ii. USE OF ESTIMATES:

Preparation of financial statement in conformity with IND AS requires the management to make estimates and assumption that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statement. Management believes that estimates made in the preparation of financial statement are prudent and reasonable. Actual results could differ from these estimates.

iii. CURRENT / NON-CURRENT CLASSIFICATION:

The normal operating cycle of the Company is 12 months. Assets and Liabilities which are expected to be realizable / payable within 12 months are to be classified as current and rest will be classified as non-current.

iv. REVENUE RECOGNITION:

Revenue from sale of products is recognized on transfer of all significant risk and rewards of ownership to the customers, which is generally on dispatch of goods and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Sales are stated exclusive of sales tax & GST and net of trade discount and quantity discount.

v. PLANT, PROPERTY AND EQUIPMENT:

• Property, Plant and Equipment are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, non-refundable duties & levies and any directly attributable cost of bringing the asset to its working condition for the intended use. The management have exercised verification of physical checking of all PPE during the year. Further there is no intangible assets as on 31^st March, 2024.

• The residual values and useful life of property, Plant and Equipment are reviewed at each financial end and changes if any are accounted prospectively.

vi. DEPRECIATION:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in Schedule III of the Companies Act, 2013.

vii. INVESTMENTS:

As per Ind AS 113 for Fair value accounting is not applicable to long-term investment in Gold and Mutual Funds. Provision for diminution in the value of long-term investments is not made as there is no decline in the value of the investments during the year.

viii. INVENTORIES:

Since the company is "Brokerage Service Company", the inventory is not applicable other than shares held for trading purpose which amounts to Rs.67,23,381/- and shown at cost under "Inventories" shares and stocks in held.

ix. BROKERAGE INCOME EARNED:

Brokerage earned is accounted based on transaction entered during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of brokerage paid, if any to reconcile with the GST turnover.

xi. DEFERRED TAX LIABILITY/(ASSETS):

As per AS 22 "Accounting for Taxes on Income" and Ind AS 12 issued by the Institute of Chartered Accountants of India and MCA respectively the net deferred tax liability/asset provided in the books of accounts.

Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amount for financial reporting purposes at their reporting date.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

xii. PROVISION FOR GRATUITY:

As per IND AS 19, the company is require to provide for Gratuity payable to the employees. The liability for the Gratuity as per actuarial valuation is Rs. 3,56,678/- The management is of the opinion that Gratuity will be debited to profit and loss account when it is actually paid in respective year.

xiii. EARNING PER SHARE:

As required by Ind As 33 "Earning Per Share", (EPS) is calculated by dividing the profit attributable to the equity shareholders by the average number of equities shares outstanding during the year and is ascertained as follows: For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholder and weighted average number of equity share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2023

1. SIGNIFICANT ACCOUNTING POLICIES:

i. ACCOUNTING CONCEPTS & BASIS OF PREPARATION:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Financial statements prepared as per Ind AS notified by the Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 read with the Companies (Indian Accounting Standards) Rules 2015 as amended and other relevant provisions of the Act. The accounting policies are applied consistently to all the periods in the financial statements including for the preparation and presentation of financial statements with significant accounting policies.

Cash and Cash equivalent in the balance sheet comprises cash at bank, cash in hand and demand short term fixed deposit with the bank which is integral part of the company cash management process.

ii. PLANT, PROPERTY AND EQUIPMENT:

Property, Plant and Equipment are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, non-refundable duties & levies and any directly attributable cost of bringing the asset to its working condition for the intended use. The management have exercised verification of physical checking of all PPE during the year. Further there is no intangible assets as on 31^st March, 2023

iii. DEPRECIATION:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in Schedule III of the Companies Act, 2013.

iv. INVESTMENTS:

As per Ind AS 113 for Fair values accounting the long-term investment in Gold and Mutual Funds which is revalued at Fair Market Value and respective increased/decreased is stated as “Revaluation reserve” in the balance sheet under “Other Equity”.

During the year company has made investment in Debentures

Provision for diminution in the value of long-term investments is not made as there is no decline in the value of the investments during the year.

v. INVENTORIES:

Since the company is “Brokerage Service Company”, the inventory is not applicable other than shares held for trading purpose which amounts to Rs.1,49,069.95 which is shown at cost.

vi. BROKERAGE INCOME EARNED:

Brokerage earned is accounted based on transaction entered during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of brokerage paid, if any to reconcile with the GST turnover.

3. DEFERRED TAX LIABILITY/fASSETS):

As per AS 22 “Accounting for Taxes on Income” and Ind AS 12 issued by the Institute of Chartered Accountants of India and MCA respectively the net deferred tax liability/asset provided in the books of accounts.

4. EARNING PER SHARE:

As required by Ind As 33 “Earning Per Share”, (EPS) is calculated by dividing the profit attributable to the equity shareholders by the average number of equities shares outstanding during the year and is ascertained as follows: For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholder and weighted average number of equity share outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2015

I. ACCOUNTING CONCEPTS:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

ii. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

iii. DEPRECIATION:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in the new Companies Act, 2013.

iv. INVESTMENTS:

Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is not made as there is no decline in the value of the investments.

v. INVETORIES:

Shares that are deposited with Bombay Stock Exchange and Share stock (Own Trading) are valued at Cost.

vi. BROKERAGE EARNED:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of Brokerage paid.

vii. RETIREMENT BENEFITS:

No provision for future liabilities made in respect of gratuity, leave encashment, etc.

2. Balances of Sundry Debtors, Sundry Creditors and payables, deposits, loans & advances given or taken from the parties, are subject to confirmation.

3. As Company being share and stock broking and Investment Company additional information as required under part II of Schedule – VI of Companies Act, 2013, is irrelevant and not applicable.

4. Number of Employees of the Company in respect of or entitled to receive Emolument in the aggregate of Rs. 12, 00,000/- or more per annum or Rs. 1,00,000/- or more per month employed for part of the year: ONE

5. As there is no remuneration paid in excess of the minimum limit as specified under section 349 of the Companies Act, 1956 to the Managerial Persons, calculation of net profit under the said section 349 is not required.

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Mar 31, 2014

I. ACCOUNTING CONCEPTS:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are prepared on lustorical cost basis as a going concern Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

ii. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

iii. DEPRECIATION:

Depreciation on Fixed Assets is charged m the account on written down value method at the rates specified in Schedule XTV of the Companies Act. 1956.

iv INVESTMENTS:

Long Term Investments are stated at cost Provision for diminution in the value of long term investments is not made as there is no decline in the value of the investments.

v, INVETORIES:

Shares that are deposited with Bombay Stock Exchange and Share stock (Own Trading) are valued at Cost.

vi. BROKERAGE EARNED:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of Brokerage paid.

vii. RETIREMENT BENEFITS:

No provision for future liabilities made in respect of gratuity, leave encashment, etc.

1. Balances of Smidiy Debtors. Sundry Creditors and payables, deposits, loans & advances given or taken from the parties, are subject to confirmation.

2. As Company being share and stock broking and Investment Company additional information as required under part II of Schedule - VI of Companies Act. 1956, is irrelevant and not applicable

3. Number of Employees of the Company in respect of or entitled to receive emolument m the aggregate of Rs 12,00,000''- or more per annum or Rs. 1. 00,000- or more pelmouth employed for part of the year

4. As there is i»o remuneration paid in excess of the minimum limit as specified under section 349 of the Companies Act, 1956 to the Managerial Persons, calculation of net profit under the said section 349 is not required.

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Mar 31, 2013

I. ACCOUNTING CONCEPTS:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

ii. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

iii. DEPRECIATION:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

iv. INVESTMENTS:

Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is not made as there is no decline in the value of the investments.

v. INVENTORIES:

Shares that are deposited with BSE Limited and Share stock (Own Trading) are valued at Cost.

vi. BROKERAGE EARNED:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of Brokerage paid.

vii. RETIREMENT BENEFITS:

No provision for future liabilities made in respect of gratuity, leave encashment, etc.

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Mar 31, 2011

I. ACCOUNTING CONCEPTS:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

ii. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

iii. DEPRECIATION:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

iv. INVESTMENTS:

Long Term Investments are stated at cost. Provision for diminution in the value of long term investments is not made as there is no decline in the value of the investments.

v. INVETORIES:

Shares that are deposited with Bombay Stock Exchange are valued at Cost.

vi. BROKERAGE EARNED:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of Brokerage paid.

vii. RETIREMENT BENEFITS:

No provision for future liabilities made in respect of gratuity, leave encashment, etc.

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Mar 31, 2010

I. Accounting concepts:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistentwith Generally Accepted Accounting Principles.

ii. Fixed Assets:

Fixed Assets are stated at cost less depreciation.

iii. Depreciation:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in ScheduleXIVoftheCompaniesAct,1956.

iv. Investments:

Investments are shown at cost.

v. Inventories:

Shares that are deposited with Bombay Stock Exchange are valued at Cost.

vi. Brokerage earned:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the yearor not. Brokerage earned isshown as net i.e. afterdeduction of Brokerage paid.

vii. Retirement benefits:

No provision forfuture liabilities made in respect of gratuity, leave encashment, etc.

viii Advances from sister concern:

Advances from sister concern include money borrowed from time to time and repaid for which no interest is paid or provided.

ix Deferred Revenue Expenditure:

During the year company has written off Rs. 3,11,789/- from deferred revenue expenditure and debited to Profit & Loss Account.

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Mar 31, 2009

I. ACCOUNTING CONCEPTS:

The Company follows the Mercantile System of Accounting and recognises Income and Expenditure on Accrual Basis. The Accounts are prepared on historical cost basis as a going concern. Accounting policies not referred to otherwise are consistent with Generally Accepted Accounting Principles.

ii. FIXEDASSETS:

Fixed Assets are stated at cost less depreciation.

iii. DEPRECIATION:

Depreciation on Fixed Assets is charged in the account on written down value method at the rates specified in Schedule XIV ofthe Companies Act, 1956.

iv. INVESTMENTS:

Investments are shown at cost.

v. INVETORIES:

Shares that are deposited with Bombay Stock Exchange are valued at Cost.

vi. BROKERAGE EARNED:

Brokerage earned is accounted on the basis of transaction done during the accounting year irrespective of whether the same are settled during the year or not. Brokerage earned is shown as net i.e. after deduction of Brokerage paid.

vii. RETIREMENT BENEFITS:

No provision forfuture liabilities made in respect of gratuity, leave encashment, etc.

viii ADVANCES FROM SISTER CONCERN:

Advances from sister concern include money borrowed from time to time and repaid for which no interest is paid or provided.

ix DEFERRED REVENUE EXPENDITURE:

During the year company has written off Rs. 3,11,789/- from deferred revenue expenditure and debited to Profit & LossAccount.