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Moneycontrol.com India | Accounting Policy > Trading > Accounting Policy followed by Khaitan (India) - BSE: 590068, NSE: KHAITANLTD
Khaitan (India)
BSE: 590068|NSE: KHAITANLTD|ISIN: INE731C01018|SECTOR: Trading
, 16:01
Mar 25, 17:00
VOLUME 1,081
Mar 11
Accounting Policy Year : Mar '13
a) Basis of preparation of Financial Statements
 The financial statements have been prepared in accordance with
 generally accepted Accounting Standards in India and the provisions of
 the Companies Act, 1956.
 b) Basis of Accounting
 The Company follows accrual basis of accounting unless otherwise
 c) Tangible Fixed Assets
 Fixed Assets (excluding Revalued Assets) are stated at cost including
 cost of installation and other incidental expenses. Assets of Rs.5000/-
 and below have been fully depreciated during the year of purchase.
 d) Depreciation & Amortisation
 Depreciation on Fixed Assets acquired after 31.08.1970 has been
 calculated on straight line method under Sec. 205(2)(b) of the
 Companies Act, 1956 while other assets have been depreciated on Written
 Down Value Method under section 205(2)(a) of the said Act.
 e) Investments
 Investments are stated at cost. Provision for diminution in value of
 investment is not made if they are long term in nature.
 Investments, which are readily releasable and intended to be held for
 not more than one year from the date of investment made are classified
 as Current Investments. All investments other than long term
 investments are classified as non-current investments.  Current
 Investments are valued at lower of Cost or Fair Value.
 f) Inventories
 Inventories are valued on FIFO basis as under:-
 i) Stores, Spares & Others : At cost exclusive of CENVAT receivable
 ii) Finished Goods : At lower of cost or market value
 iii) Stock-in-Process:
 -Sugar and Molasses: At lower of estimated cost or realisable value
 -Planted Trees, having maturity of above 18 months, are taken at
 estimated realisable value.
 g) Cash and Cash equivalents
 Cash comprises of cash on hand, balances with banks in current accounts
 and demand deposits with banks.
 h) Foreign ExchangeTransaction
 Transactions in foreign currencies are recognized at the prevailing
 exchange rates on the transaction dates. Realised gains and losses on
 settlement of foreign currency transactions are recognised in the
 Profit & Loss Account. Foreign currency monetary items at the year-end
 are reported at the year-end exchange rate, and the resultant exchange
 difference is recognised in the Profit & Loss Account.
 In respect of transactions covered by Forward Exchange Contracts, the
 difference between the contract rate and spot rate on the date of
 transaction is amortised over the life of contract.
 i) Contingent Assets & Liabilities
 Contingent Liabilities are shown by way of Notes to the Accounts in
 respect of obligations where, based on the evidence available, their
 existence at the Balance Sheet date is considered not probable.
 Contingent Assets are neither recognised nor disclosed in the financial
 j) Impairment of Assets
 Impairment of losses, if any is recognised in accordance with the
 accounting standard issued in this regard by the Institute of Chartered
 Accountants of India.
 k) Segmental Reporting
 The company''s operating business are organised and managed as per
 location of the client. Common cost is allocated to the cost based on
 the Revenue Mix. Unallocated cost is disclosed separately. The company
 prepares its segment information in conformity with the accounting
 policy adapted for preparing and presenting the financial statement of
 the Company as a whole.
 I) Earning Per Share
 Basic earning per share is calculated by dividing the net profit or
 Loss for the period attributable to equity shareholders.
 m) Revenue Recognition
 Sales are shown inclusive of excise duty and net of returns. Dividend
 income is recognised when right to receive is established.
 n) Employees Benefits
 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
 actuarial valuation made by an independent actuary as per AS-15.
 The liability for Gratuity and leave encashment has been provided with
 Annual Contribution to the Life Insurance Corporation of India under
 its Group Gratuity-cum-Life tosuiawce S>cV\evt\e( Group Leave
 Encashment Scheme.
 o) Leases
 Lease rentals on operating leases are charged on a monthly basis to
 Accounts.  Assets taken on Finance Lease have been capitalised during
 the year of Agreement and charged off in accordance with the applicable
 rate of depreciation.
 p) Borrowing cost
 Borrowing cost in relation to a qualifying asset and capitalised as
 part of the cost of a qualifying asset when it is probable that they
 will result in future economic benefits to the enterprise and the costs
 can be measured reliably. Other borrowing costs are recognised as an
 expense in the period in which they are incurred.
 q) Taxation
 Provision for tax is made on the taxable income for the year in
 accordance with the applicable provisions of the Income Tax Act, 1961.
 Deferred tax is recognised subject to consideration of prudence in
 respect of deferred tax assets, on timing differences, being the
 difference between taxable income and accounting income that originate
 in one period are capable of reversal in one or more subsequent
 r) Provisions
 Provisions are recognised in respect of obligations where, based on the
 evidence available, their existence at the Balance Sheet date.
 s) 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.
 t) 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.
Source : Dion Global Solutions Limited
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