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Accounting Policies of Kothari Industrial Corporation Ltd. Company

Mar 31, 2014

The financial statements are prepared on accrual basis of accounting and in accordance with the applicable Accounting Standards.

i Revenue Recognition

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

ii Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange differences arising on settlement are recognized in the statement of Profit & Loss. Outstanding foreign balances are restated at exchange rates prevailing on the Balance Sheet date.

iii Employee Benefits

Short term employee benefits are estimated and provided for. Further company''s contribution to Provident Fund, Employees State Insurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity and Leave encashment are based on reasonable estimates based on past trend of employee retrenchment/attrition.

iv Fixed Assets

Fixed Assets are valued at cost. Most of the fixed assets were revalued in the past earlier years to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

v Depreciation

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account

vi Borrowing Cost

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

vii Impairment of Assets

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

viii Investments

Investments meant to be held for long term are carried at cost.

ix Inventories

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method. Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable


Mar 31, 2013

The financial statements are prepared on accrual basis of accounting and in accordance with the applicable Accounting Standards.

i Revenue Recognition

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

ii Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange differences arising on settlement are recognized in the statement of Profit & Loss. Outstanding foreign balances are restated at exchange rates prevailing on the Balance Sheet date.

iii Employee Benefits

Short term employee benefits are estimated and provided for. Further Company''s contribution to Provident Fund, Employees State Insurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity is provided for in the accounts based on an Actuarial Valuation.

iv Fixed Assets

Fixed Assets are valued at cost. Most of the fixed assets were revalued in the past earlier years to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

v Depreciation

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account

vi Borrowing Cost

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

vii Impairment of Assets

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

viii Investments

Investments meant to be held for long term are carried at cost.

ix Inventories

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method. Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable


Mar 31, 2012

The financial statements are prepared on accruat basis of accounting and in accordance with the appli- cable Accounting Standards.

i Revenue Recognition

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

ii Foreign Currency Transactions

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange differences arising on settlement are recognized in the statement of Profit & Loss . Out- standing foreign balances are restated at exchange rates prevailing on the Balance Sheet date.

iii Employee Benefits

Short term employee benefits are estimated and provided for. Further Company's contribution to Provident Fund, Employees State Insurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity is provided for in the accounts.

iv Fixed Assets

Fixed Assets are valued at cost. Most of the fixed assets were revalued in the past earlier years to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

v Depreciation

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accor- dance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account

vi Borrowing Cost

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

vii Impairment of Assets

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

viii Investments

Investments meant to be h6ld for long term are carried at cost.

ix Inventories

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method. Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable


Mar 31, 2010

The financial statements are prepared on accrual basis of accounting and in accordance with the applicable Accounting Standards.

(i) REVENUE RECOGNITION

Revenue is recognized on accrual basis and is inclusive of excise duty wherever applicable.

(ii) FOREIGN CURRENCY TRANSACTIONS

Foreign Currency transactions are recorded at the rates prevailing on the date of the transactions. Exchange, differences arising on settlement are recognized in the Profit & Loss account.

(iii) EMPLOYEE BENEFITS

Short term employee benefits are estimated and provided for. Further Companys contribution to Provident Fund, Employees State lnsurance and other funds are determined under the relevant schemes and/or statute are charged to revenue. Gratuity and Leave encashment are based on reasonable estimates based on past trend of employee retrenchment/attrition

(iv) FIXED ASSETS

Fixed Assets are valued at cost. Most of the fixed assets were revalued to reflect the true value of such assets and the incremental appreciation on account of such revaluation was credited to Fixed Assets Revaluation Reserve in earlier years.

(v) DEPRECIATION

Depreciation is provided on Written Down value method on all assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account.

(vi) BORROWING COST

Interest cost on qualifying asset being an asset necessarily takes a substantial period of time to get ready for its intended use or sale, is capitalized at the weighted average rate of the funds borrowed and utilized for acquisition of such assets.

(vii) IMPAIRMENT OF ASSETS

The carrying cost of assets are reviewed at each Balance Sheet date and if there is any indication of impairment based on internal/external factors, the same is recognized and provided for.

(viii) INVESTMENTS

Investments meant to be held for long term are carried at- cost.

(ix) INVENTORIES

Fertilizer mixtures are valued at lower of cost and net realizable value following first in first out method.

Raw materials, Stores and Spare parts are valued at weighted-average cost and are inclusive of excise duty and other taxes wherever applicable.


Jun 30, 2003

I) FIXED ASSETS

Fixed Assets are capitalised at cost to the Company inclusive of direct and appropriate allocated expenses and interest on specified borrowings up to the commencement of commercial production.

Most of the fixed Assets are periodically revalued to reflect the true value of such assets and the incremental appreciation on account of such revaluation is credited to Fixed Assets Revaluation Reserve.

Expenditure on immature tea in replanted area is capitalised.

Assets acquired under financial lease are not capitalised. However, lease rental, finance charges and other related expenses are carried over till the date of commissioning of such asset and amortised over the primary lease period.

Assets acquired on hire purchase is capitalised to the extent of principal value.

Assets costing less than Rs.5000 added during the year are fully depreciated.

ii) DEPRECIATION

Depreciation is provided on straight line method on assets relating to granite division and on written down value method on all other assets at the appropriate rates in accordance with Schedule XIV to the Companies Act, 1956. The incremental differential depreciation on account of revaluation of certain depreciable assets is charged against Fixed Assets Revaluation Reserve account.

iii) INVESTMENTS

Investments meant to be held for long term are carried at cost and decline in the market value over cost in respect of any individual investment, if any, is not recognized, if such short fall in the opinion of the management is of temporary nature.

iv) INVENTORIES

Inventories are valued as follows:

Fertilizers and granite products are valued at lower of cost and net realisable value following first in first out method. Tea is valued at since net realised/realisable value.

Raw materials, Work-in-progress, Stores and Spare parts are valued at weighted-average cost and is inclusive of excise duty wherever applicable.

v) REVENUE RECOGNITION

Revenue is recognized on accrual basis and is exclusive of excise duty.whereever applicable. Interest oh overdue accounts and claims in certain Divisions are generally accounted in the year of settlement due to uncertainty of realisation.

Income from Investments including from subsidiaries is recognized when the right to receive dividend accrues.

vi) RETIREMENT BENEFITS

Gratuity to employees payable in the future actuarially evaluated is generally provided for in the accounts and the incremental liability is remitted into a separate trust after the close of the financial year Contribution to Superannuation Fund for eligible employees is remitted to the Trustees. Leave encashment is provided for in the accounts on the basis of actuarial valuation.

 
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