Accounting Policies of Khodiyar Industries Ltd. Company

Mar 31, 2011

A) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS.

The financial statements have been prepared under the historical cost convention, in accordance with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by die company. All income and expenditure having a material) bearing on the financial statements are recognized on accrual basis.

b) REVENUE RECOGNITION.

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except in case of significant uncertainties.

c) FIXED ASSETS AND DEPRECIATION.

Fixed Assets are stated at historical cost Depreciation on the assets is not provided in the books of Accounts.

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Mar 31, 2009

Not Available

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Mar 31, 2008

(1) Number of employees drawing remuneration aggregating to Rs.6,00,000 or more per annum or 50,000 p.m when employed for a part of the year -Nil)

(2) Significant Accounting Policies & Practices Method of Accounting

The Books of Accounts are maintained on accrual basis.

Fixed Assets

Fixed Assets are stated at cost less depreciation, Cost included cost of acquisition or construction and interest capitalisation up to commencement or commercial production.

Inflation :

Assets and liabilities are recorded at historical cost to the company. Depreciation :

Depreciation has not been provided in the books of accounts.

Investments:

Investments are stated at cost.

Deferred Revenue Expenditure:

(i) Preliminary & Share issue expenses are being amortised over a period of ten years.

(ii) Preliminary expenses for the Unit - 2 of Rs. 460016/- are being amortised over a period of ten years.

Treatment of contingent Liability: .

All Liabilities have been provided for in the accounts except liabilities of contingent nature, which have been disclosed at their estimated value in the attached notes to accounts.