Accounting Policies of Key Corp Ltd. Company

Mar 31, 2024

32. Significant Accounting Policies
m Basis of Preparation

The financial statements of the Company have been prepared in accordance with India
Accounting Standards (Ind AS] notified under the Companies (Indian Accountin
Standards] Rules, 2015 (as amended from time to time). The financial statements hav
been prepared under the historical cost convention, as modified by the application of fa:
value measurements required or allowed by relevant Accounting Standards. Accountin
policies have been consistently applied to all periods presented, unless otherwise stated.

The preparation of financial statements requires the use of certain critical accountin
estimates and assumptions that affect the reported amounts of assets, liabilities, revenue
and expenses and the disclosed amount of contingent liabilities. Estimates an
assumptions used in the preparation of the financial statements are based on managemei
evaluation of the relevant facts and circumstances as at the date of the financial statement
which may differ from the actual results at a subsequent dale.

(ii)Pi esentation of financial statement

The financial statements of the Company are presented as per Schedule 111 (Division III)
the Companies Act, 2013 applicable to NBFCs, as notified by the Ministry of Corpora
Affairs (MCA). Financial assets and financial liabilities are generally reported on a gro
basis except when, there is an unconditional legally enforceable right to offset tl
recognized amounts without being contingent on a future event and the parties intend
settle on a nel basis hi the following circumstances:

i. The normal course of business

ii. The event of default

iii. The event of insolvency or bankruptcy of the Company and/or its counterparties

Rn^F‘nrHl r^{1 is any contract t,iat} g''^ves rise to a financial asset of one entity and a

financial liability or equity instrument of another.

ImolT™^aSSCtS ^ ^liab"^{itieS arc} « fair value or

“ rSTMT¹ 1"''° categories

-sr*E—r«s«cSScSLrss

* financial assets at amortized cost.

- Financial assets at fair value through other comprehensive income
" ¦ manual assets at fair value through profit and loss

“ “^ab,l!“^{es are} subsequently classified into the following two
categones based on review at the end of each reporting period:

Financial liabilities at amortized cost

^{V F,nancial liabilities} at fair value through profit and loss.

fhe^set SSS ^Whe" ^{eitber ,h}= ^ri*^hte receive cash now, front
^ws from lS;^^^ass^T„ⁿh^y,,^haH‘^ra"^Sfe,Tl^i,S to receive cash

-ill without material delay to a thirH° ^{pay the} received cash flows in

transferred substantial^ ***

**¦ antfrewards^f the

¦ re difference between the carrvino ‘ '' ^dc''^reco8ⁿ>tion of a financial asset,

consideration received fincludim ⁸ '' ^U" ^{116 asset and tbe sum} °f CO the

assumed) and (it) any cumulative gain OTTosTdnt^^''h'' ^ "^{eW liabilit}>''
Comprehensive Income, is recog,t.zed tnproflUn^ ^rcC0*^l,b*^<''ⁱⁿ

r“;—r^itt-^on>^f r^ndai *"*«••«»«.

tnortized cos, and aTpair vT rZu^oZTr ""V* ^ *

. -/mpany reduces thp orocc - Other Comprehensive Income. The

- »“"J^{whM tha} «*•*

ortion thereof. This is generally fh_P nc a t !.? ^{ct ln ,ts} entirety or a

borrower does not have assets^ or '' ^c w ,en the company determines that the

esh flows to repay the amounts sub*c*d

gainst such loans are credited to th» _ct__f. _t ^{Any iubse}qLient recoveries

Litton of Bsama^^^ reS?!⁸ °a T ^and ^ ^With ''**>"» *>

- applied using the simofified^Z,!, l ^{p, OV,de for}losses the same

Tstruments", wh ch ^ ^IN° ^AS 109

•ftal recognition of,hXmiaTaC “ ^b° "“•—‘I <*>" -

___ certified to he », copy

The carrying amount of assets is reviewed at each balance sheet date to ascertain if there is any
indication of impairment based on internal/externai factors. An impairment loss is recognized
wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount
is the greater of the assets, net selling price and value in use.

In determining net.selling price, recent market transactions are taken into account if available. If no
such transactions can be identified, an appropriate valuation model is used. After impairment,
depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

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Mar 31, 2015

(a) VALUATION

i. Fixed Assets are valued at cost.

ii. Non-current investments are valued at cost.

iii. Current investments are valued at lower of cost or fair value.

iv. Stock on Hire are valued at Cost less Capital recovery.

(b) PHYSICAL VERIFICATION:-

i. Fixed Assets in use of the Company are physically verified once in every year.

ii. Physical verification of stock on hire is carried out on test check basis.

(c) DEPRECIATION

i. In respect of Tangible Assets, Depreciation is provided as prescribed in Schedule II of the Companies Act, 2013, on straight line method.

(d) REVENUE RECOGNITION :-

i. All income & expenses are accounted for on accrual basis, except otherwise stated.

ii. Interest on overdue instalments and dividend on shares of corporate bodies and units of mutual funds are accounted for on certainty of the realisation.

iii. The Company has followed the prudential norms for Income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for non-banking financial companies.

(e) EARNING PER SHARE

The Company reports earnings per share in accordance with AS-20.

(f) EMPLOYEE BENEFITS:-

i. Provisions for Retirement benefits for Gratuity are made as per the payment of Gratuity Act,1972.

ii. Leave Encashment is accounted as per Service Rules and charged to the P&L Account.

iii. Contribution to Provident Fund is recognised when due.

(g) INTANGIBLE ASSETS :-

The Company recognise intangible assets in accordance with AS 26.

(h) IMPAIRMENT OF ASSETS

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognised in the accounts in the relevant year.

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Mar 31, 2014

(a) VALUATION :-

i FixedAssetsarevaluedatcost

ii Non-current investments are valued at cost

iii Current investments are valued at lower of cost or fair value

iv Stock on Hire are valued at Cost less Capital recovery

(b) PHYSICAL VERIFICATION:-

i Fixed Assets in use of the Company are physically verified once in every year ii Physical verification of stock on hire is carried out on test check basis

(c) DEPRECIATION :-

i In respect of own Assets, Depreciation is provided on written down value as per the rates prescribed under the Income Tax Act, 1961

ii In respect of Leased Assets, depreciation is provided on Straight Line Method in accordance with the Section 205(2)(b) of the Companies Act, 1956

(d) REVENUE RECOGNITION :-

i All income & expenses are accounted for on accrual basis, except otherwise stated

ii Interest on overdue instalments and dividend on shares of corporate bodies and units of mutual funds are accounted for on certainty of the realisation

iii The Company has followed the prudential norms for Income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for non-banking financial companies

(e) EARNING PER SHARE:-

The Company reports earnings per share in accordance with AS-20

(f) EMPLOYEE BENEFITS :-

i Provisions for Retirement benefits for Gratuity are made as per the payment of Gratuity Act,1972

ii Leave Encashment is accounted as per Service Rules and charged to the P&L Account

iii Contribution to Provident Fund is recognised when due

(g) INTANGIBLE ASSETS:-

The Company recognise intangible assets in accordance with AS 26

(h) IMPAIRMENT OF ASSETS :-

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets In that event an impairment loss so computed would be recognised in the accounts in the relevant year

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Mar 31, 2013

(a) VALUATION :-

L Fixed Assets are valued at cost.

ii. Non-current investments are valued at cost.

iii. Current investments are valued at lower of cost or fair value.

iv. Stock on Hire are valued at Cost less Capital recovery.

(b) PHYSICAL VERIFICATION :-

L Fixed Assets in use of the Company are physically verified once in every year. ii. Physical verification of stock on hire is carried out on test check basis.

(c) DEPRECIATION :-

i. In respect of own Assets, Depreciation is provided on written down value as per the rates prescribed under the Income Tax Act, 1961. ii. In respect of Leased Assets, depreciation is provided on Straight Line Method in accordance

with the Section 205(2)(b) of the Companies Act, 1956.

(d) REVENUE RECOGNITION :-

L All income & expenses are accounted for on accrual basis, except otherwise stated. ii. Interest on overdue instalments and dividend on shares of corporate bodies and units of mutual funds are accounted for on certainty of the realisation. iii. The Company has followed the prudential norms for Income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for non-banking financial companies.

(e) EARNING FER SHARE :-

The Company reports earnings per share in accordance with AS-20.

(f) EMPLOYEE BENEFITS :-

i. Provisions for Retirement benefits for Gratuity are made as per the payment of Gratuity Act,1972. ii. Leave Encashment is accounted as per Service Rules and charged to the P&L Account. iii. Contribution to Provident Fund is recognised when due.

(g) INTANGIBLE ASSETS :-

The Company recognise intangible assets in accordance with AS 26.

(h) IMPAIRMENT OF ASSETS :-

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognised in the accounts in the relevant year.

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Mar 31, 2012

A) VALUATION :-

Fixed Assets are valued at cost.

ii. Non-current investments are valued at cost.

iii. Current investments are valued at lower of cost or fair value.

iv. Stock on Hire are valued at Cost less Capital recovery.

b) PHYSICAL VERIFICATION :-

L Fixed Assets in use of the Company are physically verified once in every year. ii. Physical verification of stock on hire is carried out on test check basis.

c) DEPRECIATION :-

In respect of own Assets, Depreciation is provided on written down value as per the rates prescribed under the Income Tax Act, 1961.

ii. In respect of Leased Assets, depreciation is provided on Straight Line Method in accordance with the Section 205(2)(b) of the Companies Act, 1956.

d) REVENUE RECOGNITION -

All income & expenses are accounted for on accrual basis, except otherwise stated.

ii. Interest on overdue instalments and dividend on shares of corporate bodies and units of mutual funds are accounted for on certainty of the realisation.

iii. The Company has followed the prudential norms for Income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of I ndia for non-banking financial companies.

e) EARNING PER SHARE -

The Company reports earnings per share in accordance with AS-20.

f) EMPLOYEE BENEFITS :-

i Provisions for Retirement benefits for Gratuity are made as per the payment of Gratuity Act, 1972.

ii. Leave Encashment is accounted as per Service Rules and charged to the P&L Account.

iii. Contribution to Provident Fund is recognised when due.

g) INTANGIBLE ASSETS :-

The Company recognise intangible assets in accordance with AS 26.

h) IMPAIRMENT OF ASSETS :-

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognised in the accounts in the relevant year.

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Mar 31, 2011

A) VALUATION :-

i Fixed Assets are valued at cost.

S. Long term investments are valued at cost.

iii. Current investments are valued at lower of cost or fair value.

iv. Stock on Hire are valued at Cost less Capital recovery,

b) PHYSICAL VERIFICATION :-

Fixed Assets in use of the Company are physically verified once in every year. ii. Physical verification of stock on hire is carried out on test check basis.

c) DEPRECIATION :-

In respect of own Assets, Depreciation is provided on written down value as per the rates prescribed under the Income Tax Act, 1961.

ii. In respect of Leased Assets,depreciation is provided on Straight Line Method in accordance with the Section 205(2) (b) of the Companies Act, 1956.

d) REVENUE RECOGNITION :-

The income & expenses are accounted for on accrual basis.

ii. Interest on overdue instalments is accounted for on certainty of the realisation.

iii. The Company has followed the prudential norms for Income recognition and provisioning for non-performing assets as prescribed by the Reserve Bank of India for non-banking financial companies.

e) EARNING PER SHARE :-

The Company reports earnings per share in accordance with AS-20.

f) EMPLOYEE BENEFITS :-

i) Provisions for Retirement benefitsfor Gratuity are made as per the payment of Gratuity Act,1972.

ii. Leave Encashment is accounted as per Service Rules and charged to the P & L Account.

iii. Contribution to Provident Fund is recognised when due.

g) INTANGIBLE ASSETS :-

The Company recognise intangible assets in accordance with AS 26. h) IMPAIRMENT OF ASSETS:-

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognised in the accounts in the relevant year.

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Mar 31, 2010

A) VALUATION:-

i) Fixed Assets are valued at cost.

ii) Long term investments are valued at cost.

iii) Current investments are valued at lower of cost or fair value.

iv) Stock on Hire are valued at Cost less Capital recovery.

b) PHYSICAL VERIFICATION :-

i) Fixed Assets in use of the Company are physically verified once in every year. ii) Physical verification of stock on hire is carried out on test check basis.

c) DEPRECIATION.:-

i) In respect of own Assets, Depreciation is provided on written down value as per the rates prescribed

under the Income Tax Act, 1961. ii) In respect of Leased Assets, depreciation is provided on Straight Line Method in accordance with the

Section 205(2)(b) of the Companies Act, 1956.

d) REVENUE RECOGNITION: -

i) The income & expenses are accounted for on accrual basis. ii) Interest on overdue instalments is accounted for on certainty of the realisation.

iii) The Company has followed the prudential norms for Income recognition and provisioning for non- performing assets as prescribed by the Reserve Bank of India for non-banking financial companies.

e) EARNING PER SHARE: -

The Company reports earnings per share in accordance with AS-20.

f) EMPLOYEE BENEFITS: -

i) Provisions for Retirement benefits for Gratuity are made as per The Payment of Gratuity Act, 1972. ii) Leave Encashment is accounted as per Service Rules and charged to the P & L Account. iii) Contribution to Provident Fund is recognised when due.

g) INTANGIBLE ASSETS: -

The Company recognises intangible assets in accordance with AS 26. h) IMPAIRMENT OF ASSETS :-

An asset is impaired if there are sufficient indication that the carrying cost would exceed the recoverable amount of cash generating assets. In that event an impairment loss so computed would be recognised in the accounts in the relevant year.