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Accounting Policies of Krypton Industries Ltd. Company

Mar 31, 2015

(a) BASIS OF ACCOUNTING

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (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 ("the Act"). The financial statements have been prepared on accrual basis under the historical cost convention, except stated otherwise. The financial statements are presented in Indian Rupees rounded off to the nearest Rupees in Thousands.

(b) USE OF ESTIMATES

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of revenue and expenses during the reported period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Differences between the actual results and estimates are recognised in the period in which the results are known/ materialised.

(c) FIXED ASSETS

All fixed assets are valued at Cost less accumulated Depreciation. Direct costs are capitalized until assets are ready for use. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard performance.

(d) DEPRECIATION

(i) Effective 1st April 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on fixed assets are accounted for on pro-rata basis with reference to date of use / disposal.

(e) INVENTORIES

(i) Finished Goods - At cost or net realizable value, whichever is lower.

(ii) Trading Goods - At cost or net realizable value, whichever is lower.

(iii) Raw Materials, Stores, Spare Parts, Packing Materials & Work-In-Progress - At cost.

(iv) Raw Material: Upper (Produced) - At Cost

(v) The value of Finished Goods includes Excise Duty, wherever applicable.

(f) EMPLOYEE BENEFITS

(i) Short Term Employee Benefits (i.e. benefits payable within one year): These are recognized in the period in which employee services are rendered.

(ii) Post Employment and other Long Term Employee Benefit (Defined Contribution Plan):

A Defined Contribution Plan is a post - employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund (including Pension Fund) and Employees' State Insurance. The Company's contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

In respect of Gratuity, the Company's contribution to the Group Gratuity - cum - Life Insurance Scheme under Cash accumulation System of Life Insurance Corporation of India is charged against the revenue, on receipt of demand.

(g) PROVISIONS

Provisions are recognised where reliable estimate can be made for probable outflow of resources to settle the present obligation as a result of past event, and are measured at the best estimate of the expenditure required to settle the present obligation at the Balance Sheet date and are not discounted to its present value.

(h) FOREIGN CURRENCY TRANSACTIONS

(i) Foreign Currency transactions are recorded at the exchange rates prevailing on the date of transaction.

(ii) At each Balance sheet date, Foreign Currency Monetary Items are reported using closing rates.

(iii) Exchange difference arising on the settlement of monetary items is recognized as income or expense in the period in which they arise.

(i) EXCISE DUTY/SERVICE TAX AND SALES TAX/VALUE ADDED TAX

Excise duty/Service Tax is accounted on the basis of both, payments made in respect of goods cleared/services provided as also goods lying in warehouses.

(j) RECOGNITION OF INCOME AND EXPENDITURE

Sales are recognized when goods are supplied and are recorded net of Trade discount and other Taxes. Other Incomes and Expenses are accounted for on accrual basis and provision is made for all known losses and expenses. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rates applicable.

(k) CONTINGENT LIABILITIES

Contingent Liabilities are not provided for in the Accounts and are shown separately in notes to financial statements.

(l) INVESTMENTS

Investments, which are readily realisable and intended to be held for not more than one year the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. The portion of long term investment expected to be realised within twelve months after the reporting date are disclosed under current investments as per the requirement of Schedule III. Current Investments are carried at Cost or Fair Value, whichever is lower. Non - Current Investments are carried at Cost.

(m) BORROWING COSTS

Interest and other Borrowing Costs attributable to qualifying assets are capitalized. Borrowing cost is recognized in the period to which they relate and is charged to Statement of Profit and Loss.

(n) TAXATION

Provision for Tax is made for both Current Tax, and Deferred Tax charge or credit. Current Tax is provided on the taxable income of the company using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account for timing differences, which are capable of reversal in subsequent periods are recognised using tax rates and tax laws, which have been enacted or substantively enacted by the Balance Sheet Date.

(o) SEGMENT REPORTING

The Company identifies primary segments based on the pre-dominant sources of risk effects and returns depending on organization and of the management and internal financial reporting system. The operating segments are the segments for which separate financial information are available and operating profit/loss therefrom are evaluated regularly by the management for allocation of resources and assessment of performance.

Revenue, expenses, assets and liabilities which relate to the company as a whole which are not allocable to segments on direct and/or reasonable basis have been included under "unallocated revenue/expenses/assets/liabilities"

(p) EARNINGS PER SHARE

Annualized Earnings Per Share (Basic and Diluted) is calculated by dividing the net profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.


Mar 31, 2014

(a) BASIS OF ACCOUNTING

The financial statement are prepared under the historical cost convention, except stated otherwise, on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The Financial Statements are presented in Indian Rupees rounded off to the nearest rupees in thousands.

(b) USE OF ESTIMATES

The preparation of the Financial Statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the Financial Statements, and the reported amounts of revenue and expenses during the reported period. Actual result could differ from those estimates.

(c) FIXED ASSETS

All fixed assets are valued at Cost less accumulated Depreciation.

(d) DEPRECIATION

(i) Depreciation on fixed assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(ii) In the case of Moulds, the cost of Moulds is being amortised over the estimated life of the Moulds. (iii) Depreciation on fixed assets are accounted for on pro-rata basis with reference to date of use / disposal.

(e) INVENTORIES

(i) Finished Goods - At cost or net realizable value, whichever is lower.

(ii) Trading Goods - At cost or net realizable value, whichever is lower.

(iii) Raw Materials, Stores, Spare Parts, Packing Materials & Work-In-Progress - At cost.

(iv) Raw Material - Upper (Produced) - At Cost

(v) The values of Finished Goods include Excise Duty, where applicable

(f) EMPLOYEE BENEFITS

(i) Short Term Employee Benefits:

(i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

(ii) Post Employment and other Long Term Employee Benefit: In respect of Gratuity, the Company''s contribution to the Group Gratuity - cum - Life Insurance Scheme under Cash accumulation System of Life Insurance Corporation of India is charged against the revenue, on receipt of demand.

(g) PROVISIONS

Provisions are recognised where reliable estimate can be made for probable outflow of resources to settle the present obligation as a result of past event and the same is reviewed at each Balance Sheet date.

(h) FOREIGN CURRENCY TRANSACTIONS

(i) Foreign Currency transactions are recorded at the exchange rates prevailing on the date of transaction.

(ii) At each Balance sheet date, monetary foreign currency items are reported using closing rates.

(iii) Exchange difference arising on the settlement of monetary items are recognized as income or expense in the period in which they arise.

(i) EXCISE DUTY/SERVICE TAX AND SALES TAX/VALUE ADDED TAX

Excise duty/Service Tax is accounted on the basis of both, payments made in respect of goods cleared/ services provided as also goods lying in warehouses.

(j) RECOGNITION OF INCOME AND EXPENDITURE

Sales are recognized when goods are supplied and are recorded net of Trade discount and other Taxes. Other Incomes and Expenses are accounted for on accrual basis and provision is made for all known losses and expenses. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rates applicable.

(k) CONTINGENT LIABILITIES

Contingent Liabilities are not provided for in the Accounts and are shown separately in notes to financial Statements.

(l) INVESTMENTS Investments, which are readily realisable and intended to be held for not more than one year the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. The portion of long term investment expected to be realised within twelve months after the reporting date are disclosed under current investments as per the requirement of revised schedule VI.

(m) BORROWING COSTS

Borrowing cost is recognized in the period to which they relate and is charged to Statement of Profit and Loss.

(n) TAXATION

Provision for Tax is made for both current and deferred taxes. Current Tax is provided on the taxable income of the company using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account for timing differences, which are capable of reversal in subsequent periods are recognised using tax rates and tax laws, which have been enacted or substantively enacted.

(o) SEGMENT REPORTING

The Company identifies primary segments based on the pre-dominant sources of risk effects and returns depending on organization and of the management and internal financial reporting system. The operating segments are the segments for which separate financial information are available and operating profit/loss there from are evaluated regularly by the management for allocation of resources and assessment of performance.

Revenue, expenses assets and liabilities which relate to the company as a whole which are not allocable to segments on direct and/or reasonable basis have been included under "unallocated revenue/ expenses/assets/liabilities"

(p) EARNINGS PER SHARE

Annualized Earnings Per Share (Basic and Diluted) is calculated by dividing the net profit after tax for the year attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.


Mar 31, 2012

(a) BASIS OF ACCOUNTING

The Company prepares its accounts under Historical Cost Convention. The financial statements have been prepared to comply in all material respects with the Notified Accounting Standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. For recognition of Income and expenses, Mercantile System of Accounting is followed. The accounting policies have been consistently applied by the Company.

(b) FIXED ASSETS

i) All fixed assets are valued at Cost less accumulated Depreciation.

(c) DEPRECIATION

(i) Depreciation on fixed assets has been provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

(ii) In the case of Moulds the cost of Moulds is being amortized over the estimated life of Moulds.

(iii) Depreciation on fixed assets are accounted on pro-rata basis with reference to date of use / disposal. .

(d) INVESTMETNS

Long Term Investments are stated at Cost less provision, if any, for diminution, which is other than temporary in nature.

(e) INVENTORIES

Finished Goods and Trading Goods - At cost or Net realisable value, whichever is lower.

Raw Materials - Stores, Spare Parts, Packing Materials & Components - At cost.

Raw Material - Upper (produced) - At Cost The values of finished goods include Excise Duty.

(f) FOREIGN CURRENCIES

i) Foreign Currency transactions are recorded at the exchange rate prevailing on the date of transaction.

ii) At each Balance sheet date, monetary foreign currency items are reported using closing rates.

iii) Exchange difference arising on the settlement of monetary items are recognized as income or expense in the period in which they arise.

(g) RECOGNITION OF INCOME AND EXPENDITURE

Sales are recognized when goods are supplied and are recorded net of Trade discount and Taxes. Other Incomes and Expenses are accounted for on accrual basis and provision is made for all known losses and expenses.

(h) PROVISIONS FOR RETIREMENT BENEFITS

In respect of Gratuity, the Company's contribution to the Group Gratuity - cum - Life Insurance Scheme under Cash accumulation System of Life Insurance Corporation of India is charged against the revenue.

(i) CONTINGENT LIABILITIES

Contingent Liabilities are generally not provided for in the Accounts and are shown separately in notes to the financial statements. Refer Point No. 35

(j) SEGMENT ACCOUNTING

To identify segment based on the dominant source and nature of risk and returns and the internal organization and management structure.

To include under "Unallocated Corporate Expenses" revenue and expenses which relate to the enterprise as a whole and are not attributable to segments.

(k) TAXATION

Provision for Tax is made for both current and deferred taxes. Current Tax is provided on the taxable income using the applicable tax rates and tax laws. Deferred tax assets and liabilities arising on account for timing differences, which are capable of reversal in subsequent periods are recognized using tax rates and tax laws, which have been enacted or substantively enacted.

 
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