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Accounting Policies of Kumar Wire Cloth Manufacturing Co Ltd. Company

Mar 31, 2014

A. GENERAL:

i) The Accounts have been prepared under the historical cost convention and on the basis of going concern.

ii) Accounting policies not specifically referred to are consistent and in consonance with generally accepted accounting principles.

iii) Expenses and income to the extent considered payable and receivable respectively are accounted for on accrual basis except liability in respect of excise duty on finished goods lying in factory premises and Export incentives on Export sales.

B. REVENUE RECOGNITION

Sales is recognised at the time of despatch of goods & revenue is recognised at the time of bills raised. Income from services is recognised on completion of services.

C. Fixed Assets :

i) Fixed Assets are recorded at historical cost of acquisition or construction.

ii) Cost of Plant & Machinery fabricated comprises of cost directly relatable to the specific Assets such as freight, interest salaries and installation charges for bringing the asset to its working condition for use.

D. Depreciation :

Depreciation has been provided on Written Down Value Method at the rates specified in Schedule XIV of the Companies Act,1956. Depreciation on Land has not been provided.

E. Valuation of Inventories :

i) Raw Materials are valued at cost.

ii) Components, Stores, Spares, Consumables, etc. are valued at cost.

iii) Finished Goods are valued at lower of cost or net realisable value.

F. Investments:

Investments are valued at cost.

G. Taxes on Income :

As per accounting standards 22, provision for deferred taxation is made using the liability method, at current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystallize, subject to criteria of prudence.

H. Retirement Benefits to Employees :

At present company does not have any employees who are eligible for retirement benefits. Hence no provision is made in the accounts towards retirement benefits.


Mar 31, 2010

A. GENERAL:

i) The Accounts have been prepared under the historical cost convention and on the basis of going concern.

ii) Accounting policies not specifically referred to are consistent and in consonance with generally accepted accounting principles.

iii)Expenses and income to the extent considered payable and receivable respectively are accounted for on accrual basis except liability in respect of excise duty on finished goods lying in factory premises and Export incentives on Export sales.

B. SALES:

i) Sales comprises sale of goods. ii) Sales includes Excise Duty.

C. FIXED ASSETS :

i) Fixed Assets are recorded at historical cost of acquisition or construction.

ii) Cost of Plant & Machinery fabricated comprises of cost directly relatable to the specific Assets such as freight, interest salaries and installation charges for bringing the asset to its working condition for use.

D. DEPRECIATION :

Depreciation has been provided on Written Down Value Method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on Land has not been provided.

E. VALUATION OF INVENTORIES :

i) Raw Materials are valued at cost.

ii) Components, Stores, Spares, Consumables, etc. are valued at cost.

iii)Stock in Process is valued at cost of Raw Materials.

iv) Finished Goods are valued at lower of cost price of production or net realisable value.

F. PURCHASES :

i) Purchases of Raw Materials (Imported) comprises of Basic Invoice price , Clearing Charge Price Exchange Fluctuation & Customs Duty wherever applicable.

ii) Purchases of Raw Materials (Indigenous) comprises of Basic Invoice Price , Taxes , wherever applicable, transportation charges and other incidental expenses.

iii)Purchases of Traded goods comprises of Basic Invoice Price, Taxes & Duties wherever applicable.

G. FOREIGN CURRENCIES :

Foreign Currency transactions are accounted at exchange rates prevailing on the date the transaction takes place. All exchange differences gains/losses arising in respect of Foreign Currency transactions are dealt with in Profit & Loss Account except those relating to acquisition of Fixed Assets.

H. INVESTMENTS:

Investments are valued at cost.

I. DEFERRED TAXATION :

As per accounting standards 22, provision for deferred taxation is made using the liability method, at current rates of taxation, on all timing differences to the extent that it is probable that a liability or asset will crystallize, subject to criteria of prudence.


Mar 31, 2009

A. GENERAL:

i) The Accounts have been prepared under the historical cost convention and on the basis of going concern.

ii) Accounting policies not specifically referred to are consistent and in consonance with generally accepted accounting principles.

i i i) Expenses and income to the extent considered payable and receivable respectively are accounted for on accrual basis except liability in respect of excise duty on finished goods lying in factory premises and Export incentives on Export sales.

B. SALES:

i) Sales comprises sale of goods. ii) Sales includes Excise Duty.

C. FIXED ASSETS:

i) Fixed Assets are recorded at historical cost of acquisition or construction.

ii) Cost of Plant & Machinery fabricated comprises of cost directly relatable to the specific Assets such as freight, interest salaries and installation charges for bringing the asset to its working condition for use.

D. DEPRECIATION :

Depreciation has been provided on Written Down Value Method at the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on Land has not been provided.

E. VALUATION OF INVENTORIES :

i) Raw Materials are valued at cost.

ii) Components, Stores, Spares, Consumables, etc. are valued at cost.

iii) Stock in Process is valued at cost of Raw Materials. iv) Finished Goods are valued at lower of cost price of production or net realisable value.

F. PURCHASES:

i) Purchases of Raw Materials (Imported) comprises of Basic Invoice price, Clearing Charges Price Exchange Fluctuation & Customs Duty wherever applicable.

ii) Purchases of Raw Materials (Indigenous) comprises of Basic Invoice Price, Taxes, wherever applicable, transportation charges and other incidental expenses.

iii) Purchases of Traded goods comprises of Basic Invoice Price, Taxes & Duties wherever applicable.

G. FOREIGN CURRENCIES:

Foreign Currency transactions are accounted at exchange rates prevailing on the date the transaction takes place. All exchange differences gains/losses arising in respect of Foreign Currency transactions are dealt with in Profit & Loss Account except those relating to acquisition of Fixed Assets.

H. PRELIMINARY & PUBLIC ISSUE EXPENSES :

Preliminary and Public Issue Expenses and Deferred Revenue Expenditure are amortised over a Period of 10 Years.

I. INVESTMENTS:

Investments are valued at cost.

J. DEFERRED TAXATION :

As per accounting standards 22, provision for deferred taxation is made using the liability method, at current rates of taxation,

on all timing differences to the extent that it is probable that a liability or asset will crystallize, subject to criteria of prudence.

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