Accounting Policies of M K Exim (India) Ltd. Company

Mar 31, 2015

(i) Basis of Accounting

The accounts of the Company are prepared under the historical cost convention on accural basis and in conformity with accounting standards issued by the Institute of Chartered Accountants of India referred to in section 133 of the Companies Act, 2013. For recognition of Income & Expenses, accrual basis of accounting is followed.

(ii) Fixed Assets and Depreciation

Fixed Assets are stated at cost, including attributable cost of bringing the assets to its working condition far the intended use.

Depreciation is provided from the date, the assets are installed and put to use on straight line method based on useful life of asset as prescribed in schedule II of the Companies Act, 2013 except in respect of Plant & Machineries where useful life, as technically assessed, is different than those prescribed in schedule II.

(iii) Foreign Currency Transaction

(a) All Foreign currency transaction are recorded at the rates prevailing on the date of the transaction.

(b) Foreign Currency transaction remaining unsettled at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date or at the rate which is likely to be realised in certain specific cases.

(c) The exchange difference on settlements/conversion are credited/charged to profit and Loss Account.

(d) The Company has not entered into any forward exchange contract during the period.

(iv) Investments

Investments are stated at cost.

(v) Inventories:

(a) Raw Materials, Packing Materials and Consumables are valued at the lower of Cost, computed on FIFO basis and estimated net realisable value.

(b) Finished goods and Work in Process are valued at the lower of cost, computed on FIFO basis and estimated net realisable value. Finished goods and

work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(vi) Revenue Recognition

(a) The company follows mercantile system of accounting and recognizes significant items of income & expenditure on accrual basis.

(b) DEPB is recognised when there is significant certainty regarding the ultimate collection of the relevant export proceeds.

(vii) Retirement Benefits:

(a) Contribution to Provident Fund and Employees State Insurance is accounted for on accrual basis.

(b) Gratuity liability is provided for on estimated basis for all employees under the "Payment of Gratuity Act, 1972"

(viii) Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time tD get ready for intended use. All other borrowing costs are charged to revenue.

(ix) Income Tax

(a) Income Tax comprises Current Tax and Deferred Tax.

Current Tax is the amount of tax payable as determined in accordance with provision of Income Tax Act, 1961

(b) Deferred Income Tax is provided on all temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial purpose.

(c) Deferred Tax Assets are recognised on unabsorbed depreciation only to the extent that there is virtual certainty supported by convincing evidence and to the extent that there is reasonable certainty of their realisation.

(d) Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.

(x) Preliminary expenses are amortised over a period of five years.

(XI) Figures for the previous year have been regrouped/ rearranged to make them comparable with the current year.

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Mar 31, 2014

(i) Basis of Accounting

The accounts of the Company are prepared under the historical cost convention on accural basis and in conformity with accounting standards issued by the Institute of Chartered Accountants of India referred to in section 211(3C) of the Companies Act, 1956. For recognition of Income & Expenses, accrual basis of accounting is followed.

(ii) Fixed Assets and Depreciation

Fixed Assets are stated at cost, including attributable cost of bringing the assets to its working condition for the intended use. Depreciation is provided from the date, the assets are installed and put to use on straight line method at the rates and in accordance with schedule XIV of the Companies Act, 1956.

(iii) Foreign Currency Transaction

(a) All Foreign currency transaction are recorded at the rates prevailing on the date of the transaction.

(b) Foreign Currency transaction remaining unsettled at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date or at the rate which is likely to be realised in certain specific cases.

(c) The exchange difference on settlements/conversion are credited/charged to profit and Loss Account.

(d) The Company has not entered into any forward exchange contract during the period.

(iv) Investments

Investments are stated at cost.

(v) Inventories:

(a) Raw Materials, Packing Materials and Consumables are valued at the lower of Cost, computed on FIFO basis and estimated net realisable value.

(b) Finished goods and Work in Process are valued at the lower of cost, computed on a FIFO basis and estimated net realisable value. Finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(vi) Revenue Recognition

(a) The company follows mercantile system of accounting and recognizes siginificant items of income & expenditure on accrual basis.

(b) DEPB is recongnised when there is significant certainity regarding the ultimate collection of the relevant export proceeds.

(vii) Retirement Benefits:

(a) Contribution to Provident Fund and Employees State Insurance is accounted for on accrual basis.

(b) Gratuity liability is provided for on estimated basis for all employees under the "Payment of Gratuity Act, 1972"

(viii) Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(ix) Income Tax

(a) Income Tax comprises Current Tax and Deferred Tax. Current Tax is the amount of tax payable as determined in accordance with provision of Income Tax Act, 1961

(b) Deferred Income Tax is provided on all temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial purpose.

(c) Deferred Tax Assets are recognised on unabsorbed depreciation only to the extent that there is virtual certainty supported by convincing evidence and to the extent that there is reasonable certainity of their realisation.

(d) Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.

(x) Preliminary expenses are amortised over a period of five years.

(XI) Impairment of Assets

The Company have discontinued the operation of its Garment Manufacturing Plant. In accordance with the Accounting Standard - 28 "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company has not calculated the Impairment loss, if any, on account of unavailability of information of recoverable amount of Garment Manufacturing Plant.

(XII) Figures for the previous year have been regrouped/ rearranged to make them comparable with the current year.

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Mar 31, 2013

(i) Basis of Accounting

The accounts of the Company are prepared under the historical cost convention on accural basis and in conformity with accounting standards issued by the Institute of Chartered Accountants of India referred to in section 211(3C) of the Companies Act, 1956. For recognition of Income & Expenses, accrual basis of accounting is followed. j

(ii) Fixed Assets and Depreciation

Fixed Assets are stated at cost, including attributable cost of bringing the assets to its working condition for the intended use. Depreciation is provided from the date, the assets are installed and put to use on straight line method at the rates and in accordance with schedule XIV of the Companies Act, 1956.

(iii) Foreign Currency Transaction

(a) All Foreign currency transaction are recorded at the rates prevailing on the date of the transaction.

(b) Foreign Currency transaction remaining unsettled at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date or at the rate which is likely to be realised in certain specific cases. i

(c) The exchange difference on settlements/conversion are credited/charged to profit and Loss Account.

(d) The Company has not entered into any forward exchange contract during the period. (iv) Investments

Investments are stated at cost. (v) Inventories :

(a) Raw Materials, Packing Materials and Consumables are valued at the lower of Cost, computed on FIFO basis and estimated net realisable value.

(b) Finished goods and Work in Process are valued at the lower of cost, computed on a FIFO basis and estimated net realisable value. Finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and condition.

(vi) Revenue Recognition

(a) The company follows mercantile system of accounting and recognizes significant items of income & expenditure on accrual basis.

(b) DEPB is recongnised when there is significant certainity regarding the ultimate collection of the relevant export proceeds.

(vii) Retirement Benefits:

(a) Contribution to Provident Fund and Employees State Insurance is accounted for on accrual basis.

(b) Gratuity liability is provided for on estimated basis for all employees under the "Payment of Gratuity Act, 1972"

(viii) Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

(ix) Income Tax

(a) Income Tax comprises Current Tax and Deferred Tax. Current Tax is the amount of tax payable as determined in accordance with provision of Income Tax Act, 1961

(b) Deferred Income Tax is provided on all temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial purpose.

(c) Deferred Tax Assets are recognised on unabsorbed depreciation only to the extent that there is virtual certainty supported by convincing evidence and to the extent that there is reasonable certainity of their realisation.

(d) Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.

(x) Preliminary expenses are amortised over a period of five years.

(XI) Impairment of Assets

The Company have discontinued the operation of its Garment Manufacturing Plant. In accordance with the Accounting Standard - 28 "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company has not calculated the Impairment loss, if any, on account of unavailability of information of recoverable amount of Garment Manufacturing Plant.

(XII) Figures for the previous year have been regrouped/ rearranged to make them comparable with the current year.

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Mar 31, 2010

(i) Basis of Accounting

The accounts of the Company are prepared under the historical cost convention on accural basis and in conformity with accounting standards issued by the Institute of Chartered Accountants of India referred to in section 211(3C) of the Companies Act, 1956. For recognition of Income & Expenses, accrual basis of accounting is followed.

(ii) Fixed Assets and Depreciation

Fixed Assets are stated at cost, including attributable cost of bringing the assets to its working condition for the intended use. Depreciation is provided from the date, the assets are installed and put to use on straight line method at the rates and in accordance with schedule XIV of the Companies Act, 1956.

(iii) Foreign Currency Transaction

(a) All Foreign currency transaction are recorded at the rates prevailing on the date of the transaction.

(b) Foreign Currency transaction remaining unsettled at the Balance Sheet date are translated at the exchange rate prevailing at the Balance Sheet date or at the rate which is likely to be realised in certain specific cases.

(c) The exchange difference on settlements/conversion are credited/charged to profit and Loss Account.

(d) The Company has not entered into any forward exchange contract duting the period.

(iv) Investments

Investments are valued at cost

(v) inventories:

(a) Raw Materials, Packing Materials and Consumables are valued at the lower of Cost, computed on a FIFO basis and estimated net realisable value.

(b) Finished goods and Work in Process are valued at the lower of cost, computed on a weighted average basis and estimated net realisable value. Finished goods and work in progress include cost of conversion and other costs incurred in bringing the inventories to their present location and conditions.

(vi) Revenue Recognition

(a) The company follows merchntile system of accounting and recognizes significant items of income & expenditure on accrual basis.

(b) DEPB is recognised when there is significant certainity regarding the ultimate collection of the relevent export proceeds.

(vii) Retirement Benefits:

(a) Contribution to Provident Fund and Employees State Insurance is accounted for on accrual basis.

(b) Gratuity liability is provided for on estimated basis for all employees under the "Payment of Gratuity Act, 1972"

(viii) Borrowing Cost

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue. (ix) Income Tax

(a) Income Tax comprises Current Tax and Deferred Tax. Current Tax is the amount of tax payable as determined in accordance with provision of Income Tax Act, 1961

(b) Deferred Income Tax is provided on all temporary differences at the balance sheet date between the tax base of assets and liabilities and their carrying amounts for financial purpose.

(c) Deferred Tax Assets are recognised on unabsorbed depreciation only to the extent that there is virtual certainty supported by convincing evidence and on other, to the extent that there is reasonable certainity of their realisation.

(d) Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date.