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Accounting Policies of Kovalam Investment and Trading Co. Ltd. Company

Mar 31, 2014

1. a) Accounting Convention

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) Revenue Recognition:

i) Income from Investments

Dividend Income is recognised when the company''s right to receive payment is established.

ii) Capital Gain/Profit on Sale of Investment

Gain/Loss on Sale of Investment is considered at the time of Sale/Redemption.

iii) Interest Income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Brokerage Income

Accounted for on accrual basis.

c) Fixed Assets and Depreciation

Tangible assets are stated at Cost less accumulated depreciation. Cost of acquisition is inclusive of freight duties, taxes and other incidental expenses. Depreciation is charged on WDV basis as per Income Tax Rule. However there is no asset as on 31.03.2014.

d) Investments

The Investments are stated at cost, Diminution in value of Investments on account of market fluctuations which are not of permanent nature have not been provided for. Market value of mutual fund is considered on NAV basis.

e) Accounting for Taxes on Income

The accounting treatment followed for taxes on income is to provide for Current Tax, Deferred Tax. Current Tax is the amount of Income Tax determined to be payable in respect of taxable income for a period. Deferred Tax is calculated for timing difference that originates in one period and is capable of reversal in the subsequent period.

f) Impairment of Assets:

At each balance sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

2. a) Segment Revenue includes Income directly identifiable with/allocable to the segment including intersegment revenue.

b) Expenses that are directly identifiable with/allocable to segments are considered for determining the Segment Result. The expenses which relate to the Company as a whole and not allocable to segments, are included under "other unallocable expenditure."

c) Segment assets includes all operating assets I.e. investment and current assets used by the segment.

d) Segment Liabilities consists of creditors and other liabilities directly attributable to segment but does not include tax & financial liabilities.


Mar 31, 2013

A) Accounting Convention

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) Revenue Recognition:

Income from Investments

Dividend Income is recognised when the company''s right to receive payment is establised.

if Capital Gain/Profit on Sale of Investment

Gain/Loss on Sale of Investment is considered at the time of Sale/Redemption.

iii) Interest Income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Brokerage Income

Accounted for on accrual basis.

c) Fixed Aassets and Depreciation

Tangible assets are stated at Cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. Depreciation is''charged en WDV basis as per Income Tax Rule.

d) Investments

The Investments are stated at cost, Diminution in value of Investments on account of market fluctuations which are not of permanent nature have not been provided for. Market value of mutual fund is considered on NAV basis.

e) Accounting for Taxes on Income

The accounting treatment followed for taxes on income is to provide for Current Tax, Deferred Tax. Current Tax is the amount of Income Tax determined to be payable in respect of taxable income for a period . Deferred Tax is calculated for timing difference that originates in one period and is capable: of reversal in the subsequent period.

f) Impairment of Assets:

At each balance sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss I.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.


Mar 31, 2012

A) Accounting Convention

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) Revenue Recognition:

i) Income from Investments

Dividend Income is recognised when the company's right to receive payment is establised.

ii) Capital Gain/Profit on Sale of Investment

Gain/Loss on Sale of Investment is considered at the time of Sale/Redemption.

iii) Interest Income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Brokerage Income

Accounted for on accrual basis.

c) Fixed Aassets and Depreciation

Tangible assets are stated at Cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. Depreciation is charged on WDV basis as per Income Tax Rule.

d) Investments

The Investments are stated at cost, Diminution in value of Investments on account of market fluctuations which are not of permanent nature have not been provided for. Market value of mutual fund is considered on NAV basis.

e) Accounting for Taxes on Income

The accounting treatment followed for taxes on income is to provide for Current Tax, Deferred Tax. Current Tax is the amount of Income Tax determined to be payable in respect of taxable income for a period . Deferred Tax is calculated for timing difference that originates in one period and is capable of reversal in the subsequent period.

f) Impairment of Assets:

At each balance sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss I.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.


Mar 31, 2011

A) Accounting Convention

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) Revenue Recognition:

i) Income from Investments

Dividend Income is recognised when the company's right to receive payment is established.

II) Capital Gain/Profit on Sale of Investment

Gain/Loss on Sale of Investment is considered at the time of Sale/Redemption.

iii) Interest Income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Brokerage Income

Accounted for on accrual basis.

c) Fixed Assets and Depreciation

Tangible assets are stated at Cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. Depreciation is charged on WDV basis as per Income Tax Rule.

d) Investments

The Investments are stated at cost, Diminution in value of Investments on account of market fluctuations which are not of permanent nature have not been provided for. Market value of mutual fund is considered on NAV basis.

e) Accounting for Taxes on Income

The accounting treatment followed for taxes on income is to provide for Current fax, Deferred Tax. Current

Tax is the amount of Income Tax determined to be payable in respect of taxable income for a period. Deferred Tax is calculated for timing difference that originates in one period and is capable of reversal in the subsequent period.

f) Impairment of Assets:

At each balance sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss I.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.


Mar 31, 2010

A) Accounting Convention

The financial statements are prepared under the historical cost convention, in accordance with applicable accounting standards and relevant presentational requirements of the Companies Act, 1956.

b) Revenue Recognition: i) Income from Investments

Dividend Income is recognised when the companys right to receive payment is establised.

ii) Capital Gain/Profit on Sale of Investment

Gain/Loss on Sale of Investment is considered at the time of Sale/Redemption.

iii) Interest Income

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Brokerage Income

Accounted for on accrual basis.

c) Fixed Aassets and Depreciation

Tangible assets are stated at Cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses. Depreciation is charged on WDV basis as per Income Tax Rule.

d) Investments

The Investments are stated at cost, Diminution in value of Investments on account of market fluctuations which are not of permanent nature have not been provided for. Market value of mutual fund is considered on NAV basis.

e) Accounting for Taxes on Income

The accounting treatment followed for taxes on income is to provide for Current Tax, Deferred Tax. Current Tax is the amount of Income Tax determined to be payable in respect of taxable income for a period . Deferred Tax is calculated for timing difference that originates in one period and is capable of reversal in the subsequent period.

f) Impairment of Assets:

At each balance sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exists, an impairment loss I.e. the amount by which the carrying amount of an asset exceeds its recoverable amount is provided in the books of account.

SIGMENT ACCOUNTING POLICIES:

a) Sigment Revenue includes Income directly identifiable with/allocable to the segment including intersegment revenue.

b) Expenses that are directly identifiable with/allocable to segments are considered tor determining the Segment Result. The expenses which relate to the Company as a whole and not allocable to segments, are included under "other unallocable expenditure."

c) Segment assets includes all operating assets I.e. investment and current assets used by the segment.

d) Segment Liabilities consists of creditors and other liabilities directly attributable to segment but does not include tax & financial liabilities.