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Union Budget 2017-18
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Accounting Policies of Khator Fibre & Fabrics Ltd. Company

Mar 31, 2015

A) System of Accounting

The Accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues Recognised and expenses accounted on accrual basis.

b) Basis of Preparation of Financial Statements

These financial statements have been prepared in accordance with the Generally Accepted accounting Principles in India('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant Provisions of the Companies Act, 2013.

c) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation in the books of accounts. The Fixed Assets are capitalized at cost inclusive of legal and/or Installation expenses. The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts, and where carrying values exceed this estimated recoverable amount, assets are written down to their recoverable amount.

d) Depreciation

The Depreciation of Fixed Assets is charged on straight line method and Consequent to the enactment of the Companies act 2013 (the act ) and its applicability from 1st April 2014, the remaining useful life of fixed assets have been reassessed in accordance with provisions prescribed under Schedule II of the act, in case of assets which have completed their useful life, the carrying value as at 1st April 2014 has been recognised in retained earnings and the other assets have been depreciated over the revised useful life.

e) Valuation of Investments

Inventories of raw material, goods in process, stores and spares, finished goods and merchanting goods are stated at cost or net realizable value, whichever is lower', Goods -in-transit are stated 'at cost'. Cost Comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and Condition Cost formula are used are ' First-in-first out'. Average cost' or 'Specific identification', as applicable. Due allowances is estimated and made for defective and absolute items, wherever necessary, based on the past experience of the company.

f) Investments

Investments are classified into long term investments. Long term investments are stated at cost. A provision for diminution is made to recognize a decline other than temporary, in the value of long term investments.

g) Employee Benefits

Defined Benefits Plans: The present value of the obligation under such plan is determined based on an actuarial valuation using Projected unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit & Loss Statement. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

h) Borrowing Cost:

Interest and other borrowing cost attributable to qualifying assets are capitalized. Other interest and borrowing Costs are charged to revenue.

i) Government Grant:

Grant received against specific fixed assets are adjusted to the assets. Revenue Grant are recognized in the profit & loss Statement in accordance with the related scheme and in the period in which these are accrued.

j) Taxation:

Income-tax expenses comprise current tax and deferred tax charged on credit. Provision for Current tax is made on the basis of assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets arising mainly on account of brought forwarded losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realization, supported by Convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realization. At each balance sheet date, the carrying amount of deferred tax assets is reviewed to reassure realization.

k) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the assets exceed the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.


Mar 31, 2014

A) System of Accounting

The Accounts have been prepared using historical cost convention and on th basis of a going concern, with revenues Recognised and expenses accounted on accrual basis.

b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation in the books of accounts. The Fixed Assets are capitalized at cost inclusive of legal and/or Installation expenses.

c) Depreciation ''

The Depreciation of Fixed Assets is charged on straight line method and as per the rates prescribed in Schedule XIV of the Companies Act,1956

d) Valuation of Investments

Inventories of raw material, goods in process, stores and spares, finished goods and merchanting goods are stated at cost or net realizable value, whichever is lower'', Goods -in-transit are stated ''at cost''. Cost Comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and Condition Cost formula used are ''First-in- first out''. Average cost'' or ''Specific identification'', as applicable. Due allowances is estimated and made for defective and absolute items, wherever necessary, based on the past experience of the company.

e) Investments

Investments are classified into long term investments. Long term investments are stated at cost. A provision for diminution is made to recognize a decline other than temporary, in the value of long term investments.

f) Employee Benefits

Defined Benefits Plans: The present value of the obligation under such plan is determined based on an actuarial valuation using Projected unit Credit Method.

Actuarial gains and losses arising on such valuation are recognised immediately in the Profit & Loss Statement. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

g) Borrowing Cost:

Interest and other borrowing cost attributable to qualifying assets are capitalised. Other interest and borrowing Costs are charged to revenue.

h) Government Grant:

Grant received against specific fixed assets are adjusted to the assets. Revenue Grant are recognised in the profit & loss Statement in accordance with the related scheme and in the period in which these are accrued.

i) Taxation:

Income-tax expenses comprise current tax and deferred tax charged on credit. Provision for Current tax is made on the basis of assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets arising mainly on account of brought forwarded losses and unabsorbed depreciation undertax laws, are recognised, only if there is a virtual certainty of its realisation, supported by Convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each balance sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

j) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the assets exceed the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

The Company has only one class of equity shares having a face value of Rs.10 per share. Each Shareholder of equity share is entitled to one vote per share.

The company has not decleared dividend in current year.

In the event of liquidation of the company, the shareholders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferiantialamounts in proportion to the number of equity shares held by the shareholders.


Mar 31, 2013

A) System of Accounting:

The Accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues Recognised and expenses accounted on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation in the books of accounts. The Fixed Assets are capitalized at cost inclusive of legal and/or Installation expenses.

c) Depreciation:

The Depreciation of Fixed Assets is charged on straight line method and as per the rates prescribed in Schedule XIV of the Companies Act,1956

d) Valuation of Investments:

Inventories of raw material, goods in process, stores and spares, finished goods and merchanting goods are stated at cost or net realizable value, whichever is lower'', Goods –in-transit are stated ''at cost''. Cost Comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and Condition Cost formula e used are '' First-in-first out''. Average cost'' or ''Specific identification'', as applicable. Due allowances is estimated and made for defective and absolute items, wherever necessary, based on the past experience of the company.

e) Investments:

Investments are classified into long term investments. Long term investments are stated at cost. A provision for diminution is made to recognize a decline other than temporary, in the value of long term investments.

f) Employee Benefits:

Defined Benefits Plans: The present value of the obligation under such plan is determined based on an actuarial valuation using Projected unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit & Loss Statement. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

g) Borrowing Cost:

Interest and other borrowing cost attributable to qualifying assets are capitalised. Other interest and borrowing Costs are charged to revenue.

h) Government Grant:

Grant received against specific fixed assets are adjusted to the assets. Revenue Grant are recognised in the profit & loss Stetement in accordance with the related scheme and in the period in which these are accrued.

i) Taxation:

Income-tax expenses comprise current tax and deferred tax charged on credit. Provision for Current tax is made on the basis of assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets arising mainly on account of brought forwarded losses and unabsorbed depreciation under tax laws, are recognized , only if there is a virtual certainty of its realisation, supported by Convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each balance sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

j) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the assets exceed the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.


Mar 31, 2012

A) System of Accounting

The Accounts have been prepared using historical coast convention and on the basis of a going concern, with revenues Recognised and expenses accounted on accrual basis.

b) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation in the books of accounts. The Fixed Assets are capitalized at cost inclusive of legal and/ or Installation expenses.

c) Depreciation

The Depreciation of Fixed Assets is charged on straight line method and as per the rates prescribed in Schedule XIV of the Companies Act, 1956

d) Valuation of Investments

Inventories of raw material, goods in process, stores and spares, finished goods and merchanting goods are stated at cost or net realizable value, whichever is lower', Goods -in-transit are stated 'at cost'. Cost Comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and Condition Cost formula e used are ' First-in-first out'. Average cost' or 'Specific identification', as applicable. Due allowances is estimated and made for defective and absolute items, wherever necessary, based on the past experience of the company.

e) Investments

Investments are classified into long term investments. Long term investments are stated at cost. A provision for dimunition is made to recognize a decline other than temporary, in the value of long term investments.

f) Employee Benefits

Defined Benefits Plans: The present value of the obligation under such plan is determined based on an actuarial valuation using Projected unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit & Loss Account. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

g) Borrowing Cost:

Interest and other borrowing cost attributable to qualifying assets are capitalised. Other interest and borrowing Costs are charged to revenue.

h) Government Grant:

Grant received against specific fixed assets are adjusted to the assets. Revenue Grant are recognised in the profit & loss Account in accordance with the related scheme and in the period in which these are accrued.

i) Taxation:

Income-tax expenses comprise current tax and deferred tax charged on credit. Provision for Current tax is made on the basis of assessable income at the tax rate applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet Date. Deferred tax assets arising mainly on account of brought forwarded losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by Convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each balance sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

j) Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the assets exceed the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.


Mar 31, 2011

A) System of Accounting:

The Accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues Recognised and expenses accounted on accrual basis,

b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation in the books of accounts. The Fixed Assets are capitalised at cost inclusive of legal and / or Installation expenses.

c) Depreciation:

The Depreciation of Fixed Assets is charged on straight line method and as per the rate prescribed in Schedule XIV of the Companies Act, 1956

d) Valuation of Inventories:

Inventories of raw materials, goods in process, stores and spares, finished goods and merchanting goods are stated at cost or net realisable value, whichever is iower', Goods-in-transit are stated 'at cost'. Cost Comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and Condition Cost formula used are ' First- in-first out'. Average cost' or 'Specific identification', as applicable. Due allowance is estimated and made for defective and absolete items whereever necessary, based on the past experience of the company.

e) Investments:

Investment are classified into current and long term investments.Current investments are stated at lower of cost and fair value.Long term investments are stated at cost.A provision for dimunition is made to recognise a decline, other than temporary, in the value of long term investments.

f) Employee Benfits:

Defined Benefit Plans: The present value of the obligation under such plan, is determined based on a actuarial valuation using the Projected unit Credit Method. Acturial gains and losses arising on such valuation are recognised immediately in the profit & Loss Account. In case of funded defined benefit plans, the face value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

g) Borrowing Cost:

Interest and other borrowing cost attributable to qualifying assets are capitalised. Other interest and borrowing. Costs are charged to revenue.

h) Government Grants:

Grants received against specific fixed assets are adjusted to the cost of the assets. Revenue Grants are recognised in the profit & loss Account in accordance with the related scheme and in the period in which these are accrued.

i) Taxation:

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for Current tax is made on the basis of assessable income at the tax rate applicable to the relevent assessment year. The deferred tax asset and deffered tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance sheet Date. Deffered tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by Convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation.At each balance sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

j) Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount-


Mar 31, 2010

A) System of Accounting:

The Accounts have been prepared using historical cost convention and on the basis of a going concern, with revenues Recognised and expenses accounted on accrual basis.

b) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation in the books of accounts. The Fixed Assets are capitalised at cost inclusive of legal and / or Installation expenses.

c) Depreciation:

The Depreciation of Fixed Assets is charged on straight line method and as per the rate prescribed in Schedule XIV of the Companies Act, 1956

d) Valuation of Inventories:

Inventories of raw materials, goods in process, stores and spares, finished goods and merchanting goods are stated at cost or net realisable value, whichever is lower, Goods-in-transit are stated at cost. Cost Comprise all cost of purchase, cost of conversion and other cost incurred in bringing the inventories to their present location and Condition Cost formula used are First- in-first out. Average cost or Specific identification, as applicable. Due allowance is estimated and made for defective and absolete items, whereever necessary, based on the past experience of the company.

e) Investments:

Investment are classified into current and long term investments.Current investments are stated at lower of cost and fair value.Long term investments are stated at cost.A provision for dimunition is made to recognise a decline, other than temporary, in the value of long term investments.

f) Employee Benfits:

Defined Benefit Plans: The present value of the obligation under such plan, is determined based on an actuarial valuation using the Projected unit Credit Method. Acturiai gains and losses arising on such valuation are recognised immediately in the profit & Loss Account. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognise the obligation on net basis.

g) Borrowing Cost:

Interest and other borrowing cost attributable to qualifying assets are capitalised. Other interest and borrowing Costs are charged to revenue.

h) Government Grants:

Grants received against specific fixed assets are adjusted to the cost of the assets. Revenue Grants are recognised in the profit & loss Account in accordance with the related scheme and in the period in which these are accrued.

i) Taxation:

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for Current tax is made on the basis of assessable income at the tax rate applicable to the relevent assessment year. The deferred tax asset and deffered tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance sheet Date. Deffered tax assets arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by Convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation .At each balance sheet date, the carrying amount of deferred tax assets are reviewed to reassure realisation.

j) Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is chargedto the profit and loss account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

 
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