Accounting Policies of K J International Ltd. Company

Mar 31, 2010

(1) BASIS OF ACCOUNTING POLICIES:-

The account of the company are prepared under the historical cost convention in accordence with applicable accounting standards. For recognition of Income and expenditure standards, Mercantile System is followed.

(2) FIXED ASSETS

The following assets has been acquired from M/s. K.J.International partnership firm in which directors were interested . The assets has been taken at book value as on 29.09.2009. We are unable to verify the Correctness of the value of Assets & Liailities taken over.

Further during the year the company has sold Land /Building , Plant & Machinery but as per the requirement of ICAI , AS-10 & 6 issued by ICAI the profit/ loss on sale above assets could not be work out in the absence of details of the cost of the respective assets.

(3) DEPRECIATION

Depreciation on fixed assets has been not charged during the year.

(4) INVENTORIES

The Company has no inventory.

(5) REVENUE RECOGNITION

All Income & Expenses, have been accounted for an accrual basis.

(6) INCOME

During the year the company have only rental Income Amt. of Rs. 755717.00

(7) In view of the multipicity and identification of accounts ralating to small scale industrial undertaking, information for detemining the particulars relating to current indebtedness to such undertaking as required under Schedule VI Part-I to the Companies Act 1956 is not readily available.

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Mar 31, 2009

(1) BASIS OF ACCOUNTING POLICIES:-

The account of thr company are prepared under the historical cost convention in accordence with applicable accounting standards. For recognition of Income and expenditure standards, Mercantile System is followed.

(2) FIXED ASSETS

Fixed Assets are stated at cost of less accumulated depreciation. The cost of an Assets compries its purchases price and directly attributable cost of bringing the assets to working condition for its intended use.

(3) DEPRECIATION

Depreciation on fixed assets has been provided on written down value method at the rate specified in Schedule XIV of the Company Act 1956 on pro-rate basis.

(4) INVENTORIES

Inventories are valued as follows:-

(a) At cost price or net reliable value which ever is less.

(b) Cost determination is based on FIFO method of costing.

(5) REVENUE RECOGNITION

Domestic Sale:-

Dierct Sale: Revenue is recognised when risk in the goods passes to the buyer. (A) Consignment Sales: Consignment Sale are recognised from the date of Sales-Note received from the consignee.

(6) RETIRMENT BENEFITS

Gratuity & Leave encashment were accounted as cash basis.

(7) In view of the multipicity and identification of accounts ralating to small scale industrial undertaking, information for detemining the particulars relating to current indebtedness to such undertaking as required under Schedule VI Part-I to the Companies Act 1956 is not readily available.