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SENSEX NIFTY India | Accounting Policy > Trading > Accounting Policy followed by Khaitan (India) - BSE: 590068, NSE: KHAITANLTD

Khaitan (India)

BSE: 590068|NSE: KHAITANLTD|ISIN: INE731C01018|SECTOR: Trading
May 24, 16:00
-0.75 (-1.85%)
18, -0:5-
-1.85 (-4.46%)
VOLUME 73,339
Mar 14
Accounting Policy Year : Mar '15
 a) Basis of Accounting
 The Financial Statements are prepared under the historical cost
 convention, except stated otherwise, on an accrual basis and in
 accordance with generally accepted Accounting principles in India, the
 applicable mandatory Accounting Standards as prescribed under Section
 133 of the Companies Act, 2013 read with rule 7 of the Companies
 (Accounts) Rules, 2014.
 The financial statements have been prepared and presented as per the
 requirement of Schedule III as mentioned under Companies Act, 2013.
 b) Use of Estimates
 The preparation of financial statements require judgements, estimate/
 estimates and assumptions to be made that affect the reported amount of
 assets and liabilities including contingent liabilities on the date of
 the financial statements and the reported amount of revenues and
 expenses during the reporting period. Difference between actual results
 and estimates are recognized in the period in which the results are
 known / materialized.
 c) Fixed Assets Tangible Fixed Assets
 i.  Fixed Assets, other than those which have been revalued, are stated
 at their original cost which includes expenditure incurred in the
 acquisition and construction/installation and other related expenses.
 ii.  Revalued assets are stated at the values determined on valuation
 Intangible Fixed Assets
 Intangible Assets are at cost on initial recognition, after which the
 same are stated at cost less accumulated amortization and accumulated
 impairment loss, if any .
 d) Depreciation & Amortization
 i) Depreciation on tangible fixed assets provided on straight line
 method at the rates determined based on the useful lives of respective
 assets as prescribed in the Schedule II of the Companies Act. 2013.
 ii) Depreciation for assets purchased / sold during the year is
 proportionately charged
 iii) On amount added on revolution, depreciation is provided on
 straight line method at the rates determined based on the useful lives
 of respective assets as prescribed in the Schedule II of the Companies
 e) Investments
 i.  Investments, which are readily realizable and intended to be held
 for not more than one year from the date on which such investments are
 made are classified as current investments. All other investments are
 classified as Long term Investments.
 ii.  On initial recognition, all investments are measured at cost. The
 cost comprises purchase price and directly attributable acquisition
 charges such as brokerage, fees and duties.
 iii Long term investments are stated at cost. Provision for diminution
 is made if the decline in value, in the opinion of the management, is
 other than temporary.
 f) Inventories
 Inventories are valued as follows :-
 Stores, Spares & Others are valued at cost. Finished Goods are valued
 at lower of cost or market value. Stock in process of sugar and
 molasses are valued at lower of estimated cost or realizable value and
 planted trees having maturity of 18 months are valued at estimated
 realizable value.
 g) Employee Benefits
 i. Employee benefits of short term nature are recognized as expense as
 and when it accrues. Employee benefit of long term nature are
 recognized as expense based on actuarial valuation using projected unit
 credit method.  ii Post employment benefits in the nature of defined
 contribution plans are recognized as expense as and when it accrues and
 that in the nature of defined benefit plans are recognized as expenses
 based on actuarial valuation using projected unit credit method.
 Actuarial gains or losses are recognized immediately in the statement
 of Profit and Loss Account.
 h) Foreign Currency Transactions
 i.  Transactions in foreign currencies are recorded at the rate of
 exchange prevailing on the date of transaction, year end balance of
 foreign currency transactions is translated at the year end rates.
 ii.  All exchange differences are recognized as income or expenses in
 the period in which they arise
 i) Recognition of Revenue and Expenses
 All revenue and expenses are accounted for on accrual basis except as
 otherwise stated. Gross Sales are inclusive of excise duty and net of
 returns, claims and discount etc. Dividend income is recognized when
 right to receive is established.
 j) Taxation
 Provision for current Income Tax is made in accordance with the Income
 Tax Act, 1961. The deferred tax charge or credit is recognized using
 substantively enacted tax rates subject to consideration of prudence in
 timing differences between book and tax profits. Deferred tax Assets
 are recognized only to the extent that there is reasonable certainty
 that sufficient future taxable income will be available against which
 such deferred assets can be realized.
 k) Impairment
 An asset is treated as impaired when the carrying cost of the assets
 exceeds its recoverable value being higher of value in use and net
 selling price. Value in use is computed at net present value of cash
 flow expected over the balance useful lives of the assets. An
 impairment loss is recognized as an expense in the statement of Profit
 & Loss in the year in which an asset is identified as impaired. The
 impairment loss recognized in earlier accounting period is reversed if
 there has been an improvement in recoverable amount.
 l) Borrowing Costs
 General and specific borrowing costs attributable to the acquisition,
 construction or installation of qualifying capital assets till the date
 of commencement of commercial use of the assets are capitalized. Other
 borrowing costs are recognized as an expense in the period in which
 they are incurred
 m) Provisions and Contingent Liabilities
 A provision is recognized if, as a result of past event, the company
 has a present legal obligation that is reasonably estimable, and it is
 probable that an outflow of economic benefits required to settle the
 obligation at the reporting date. Where no reliable estimate can be
 made, a disclosure is made as Contingent Liabilities. A disclosure for
 contingent liability is also made when there is a possible obligation
 or a present obligation that may but probably will not require an
 outflow of resources. Where there is a possible obligation or a present
 obligation in respect of which the likelihood of out flow of resources
 is remote, no provision or disclosure is made.
 Earning Per Share
 Basic earnings per share is calculated by dividing the net profit or
 Loss for the period attributable to equity shareholders.
 l) Employees Benefit
 Contribution of Employer''s Share to Employee''s Provident Fund are
 worked on accrual basis and charged to Profit & Loss Account.  The
 Company also provides for gratuity and leave encashment based on
 acturial valuation made by an independent actuary as per AS-15.
 m) Land on Leases
 The company has leased out its land at Ramnagar admeasuring 4.0580
 Acres for 99 years for Rs .6553228/ and received lease rent in advance
 full payment and adjusted Rs.21143 during the year.
 n) Provisions
 Provisions are recognized in respect of obligations where, based on the
 evidence available, their existence at the Balance Sheet date.
 o) Excise Duty, under expenditure, represents payments made/to be made
 during the year on goods cleared/to be cleared.  Payment of services
 where service tax is charged and credit for the same is taken as
 accounted net of service tax.
 p) The expenses incurred on sugarcane and on trees are accumulated
 under the caption Standing Sugarcane and Planted Trees (excluding
 planted trees having maturity of over 18 months) respectively and
 charged to statement of Profit & Loss in the year of harvesting.
 (a) There has been no change /movements in number of Shares outstanding
 at the beginning and at the end of the Reporting period .
 (b) The company has only one class of issued shares i.e. Equity Share
 having par value of Rs. 10/- per share . Each holder of Equity Shares
 is entitled to one vote per share and equal right for dividend . In the
 event of liquidation, the equity shareholders are eligible to receive
 the remaining assets of the company after payment of preferential
 amounts , in proportion to their share holding.
Source : Dion Global Solutions Limited
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