Accounting Policies of Krishna Engineering Works Ltd. Company

Mar 31, 2013

Not Available

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Mar 31, 2012

A. Basis of Accounting

The company prepares its financial statements under the historical cost convention in accordance with generally accepted accounting principles and in accordance with the provisions of Companies Act, 1956.

B. Fixed Assets

The fixed assets are stated at historical cost inclusive of installation expenses and Interest upto the date of commissioning of the assets.

C Depreciation

Depreciation on fixed assets - including dies and blocks forming part of Plant and Machinery is provided on straight line method at rates prescribed in Schedule XIV of the Companies Act, 1956, except on items of Plant and Machinery purchased for modernization after April 1s' 1994. The Depreciation on Plant and Machinery purchased after April 1" 1994 has been provided on written down value method at rates specified the above said schedule. Depreciation on assets acquired/installed during the year has been charged on prq-rate basis.

D. Investments

Investments are valued at cost.

E. inventories

Raw material is valued at cost of purchase.

Stock in process is valued at estimated cost vis-a-vis stage of completion. Finished goods are valued at lower of cost and net realizable value . Stores and Spares are valued at lower of cost and market value,

F. Sajes

Sales are accounted for inclusive of excise duty.

G. Revenue Recognition

Expenses and revenue are generally-accounted for on accrual basis. Leave Encashment

Leave encashment expenses are accounted for on cash basis.

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Mar 31, 2011

A. BASIS OF ACCOUNTING

The company prepares its financial statements under the historical cost convention in accordance with generally accepted accounting principles and in accordance with the provisions of The Companies Act, 1956.

B. FIXED ASSETS

The fixed assets are stated at historical cost inclusive of installation expenses and Interest up to the date of commissioning of the assets.

C. DEPRECIATION

Depreciation on fixed assets - including dies and blocks forming part of Plant and Machinery is provided on straight line method at rates prescribed in Schedule XIV of the Companies Act, 1956, except on items of Plant and Machinery purchased for modernisation after April 1st 1994. The Depreciation on Plant and Machinery purchased after April 1st 1994 has been provided on written down value method at rates specified the above said schedule. Depreciation on assets acquired/ installed during the year has been charged on pro-rate basis.

D INVESTMENTS

Investments are valued at cost,

E. INVENTORIES

Raw material is valued at cost of purchase. Stock in process is valued at estimated cost vis-à-vis stage of completion. Finished goods are valued at lower of cost and net realisable value . Stores and Spares

I. RESEARCH & DEVELOPMENT

1. Revenue expenditure on research and development on going research project is charged in the year in which it is incurred. Expenditure which results in developing the new products or processes where the management is of the opinion that products will be/are commercially viable are deferred and charged to the future accounting periods over a period of five years commencing from the following year to the initial year in which these are incurred. are valued at lower of cost and market value.

F. SALES

Sales are accounted for inclusive of excise duty.

G. REVENUE RECOGNITION

Expenses and Revenue are generally accounted for on accrual basis.

H. LEAVE ENCASHMENT

Leave encashment expenses are accounted for on cash basis.

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Mar 31, 2010

A. BASIS OF ACCOUNTING

The company prepares its financial statements under the historical cost convention in accordance with generally accepted accounting principles and in accordance with the provisions of The Companies Act, 1956.

B. FIXED ASSETS

The fixed assets are stated at historical cost inclusive of installation expenses and Interest upto the date of commissioning of the assets.

C. DEPRECIATION

Depreciation on fixed assets - including dies and blocks forming part of Plant and Machinery is provided on straight line method at rates prescribed in Schedule XIV of theCompanies Act, 1956, except on items of Plant and Machinery purchased for modernisation after April 1st 1994. The Depreciation on Plant and Machinery purchased after April 1st 1994 has been provided on written down value method at rates specified the above said schedule. Depreciation on assets acquired/ installed during the year has been charged on pro-rate basis. D INVESTMENTS

Investments are valued at cost,

E. INVENTORIES

Raw material is valued at cost of purchase. Stock in process is valued at estimated cost vis-a-vis stage of completion. Finished goods are valued at lower of cost and net realisable value . Stores and Spares are valued at lower of cost and market value.

F. SALES

Sales are accounted for inclusive of excise duty.

G. REVENUE RECOGNITION

Expenses and Revenue are generally accounted for on accrual basis.

H. LEAVE ENCASHMENT

Leave encashment expenses are accounted for on cash basis.

I. RESEARCH & DEVELOPMENT

1. Revenue expenditure on research and development on going research project is charged in the year in which it is incurred. Expenditure which results in developing the new products or processes where the management is of the opinion that products will be/are commercially viable are deferred and charged to the future accounting periods over a period of five years commencing from the following year to the intial year in which these are incurred. 2. The contingent liabilities not provided for in the books of account:- Bank guarantee - -