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Accounting Policies of Kavita Fabrics Ltd. Company

Mar 31, 2015

I. Method of accounting:

Transactions are generally accounted on mercantile basis. The Company adopts the accrual concept, in the preparation of the accounts.

ii. Fixed Assets:

Fixed Assets are state at cost less accumulated depreciation.

iii. Depreciation:

Depreciation has been taken on WDV method at the rates prescribed in Schedule - II to the Companies Act, 2013.

iv. Inventories:

Cost of inventory includes all cost of purchases and other cost incurred in bringing the inventories to their present location and condition. Inventories are valued at cost or net realizable value whichever is less.

v. Revenue Recognition:

Sale of goods is recognized on dispatches to customers, which coincide with the transfer of significant risks and rewards associated with ownership. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

vi. Earning Per Share:

Basic earning per share is computed by dividing the net profit after tax for the period after prior period adjustments attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

vii. Taxation & Deferred Tax:

Provision for Current Tax is made in accordance with the provision of Income Tax Act, 1961. Deferred tax is recognized on timing differences between taxable & accounting income/expenditure that originates in one period and are capable of reversal in one or more subsequent period(s).

viii. Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

ix. Segment Reporting-

The company is predominantly in the business of "Synthetic Fabrics" and as such there are no separate reportable segments. The company's operations are predominantly only in India.

x. Contingent Liabilities:

There is no any contingent liability of the company.

xi. Current / Non Current-

All assets and liabilities are presented as Current or Non Current as per the company's normal operating cycle and other criteria set out in the revised Schedule VI of the Companies Act, 1956. Based upon the nature of products and the time between the acquisition of assets for processing and their realization, the company has ascertained its operating cycle as 12 months for the purpose of current/non - current classification of assets and liabilities.

xii. Payment to Auditors:

a) As Auditor Rs.30000/-

b) As Advisor in any other Capacity NIL

c) In any Other Manner NIL

xiii. Related parties with whom Transactions done during the period:

a) Associate Companies / Firm / HUFs:

i. Shiv Textiles

b) Key Management Personnel & Relatives

ii. Harish Chandak

iii. Shailesh Chandak

iv. SarikaChandak

v. SudhaChandak


Mar 31, 2013

I. Method of accounting:

Transactions are generally accounted on mercantile basis. The Company adopts the accrual concept, in the preparation of the accounts.

ii. Fixed Assets:

Fixed Assets are state at cost less accumulated depreciation.

iii. Depreciation:

Depreciation has been taken on WDV method at the rates prescribed in Schedule - XIV to the Compani es Act, 1956.

iv. Inventories:

Cost of inventory includes all cost of purchases and other cost incurred in bringing the inventories to their present location and condition. Inventories are valued at cost or net realizable value whichever is less.

v. Revenue Recognition:

Sale of goods is recognized on dispatches to customers, which coincide with the transfer of significant risks and rewards associated with ownership. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

vi. Earning Per Share:

Basic earning per share is computed by dividing the net profit after tax for the period after prior period adjustments attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

vii. Taxation & Deferred Tax:

Provision for Current Tax is made in accordance with the provision of Income Tax Act, 1961. Deferred tax is recognized on timing differences between taxable & accounting income / expenditure that originates in one period and are capable of reversal in one or more subsequent period(s).

viii. Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of the asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

ix. Segment Reporting-

The company is predominantly in the business of "Synthetic Fabrics" and as such there are no separate reportable segments. The company''s operations are predominantly only in India.

x. Contingent Liabilities:

There is no any contingent liability of the company.

xi. Current / Non Current-

All assets and liabilities are presented as Current or Non Current as per the company''s normal operating cycle and other criteria set out in the revised Schedule VI of the Companies Act, 1956. Based upon the nature of products and the time between the acquisition of assets for processing and their realization, the company has as certained its operating cycle as 12 months for the purpos e of current/non - current classification of assets and liabilities .

 
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