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Kore Foods

BSE: 500458|NSE: PHILCORP|ISIN: INE601A01017|SECTOR: Consumer Goods - Electronic
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Kore Foods is not traded in the last 30 days
« Mar 14
Accounting Policy Year : Mar '15
(i) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian 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 2013 Act) / Companies Act, 1956 (the 1956
 Act), as applicable. The financial statements have been prepared on
 accrual basis under the historical cost convention. The accounting
 policies adopted in the preparation of the financial statements are
 consistent with those followed in the previous year.
 
 The preparation of financial statements requires the management to make
 estimates and assumptions in the reported amounts of assets and
 liabilities (including contingent liabilities) as at the date of the
 financial statements and the reported income and expenses during the
 reporting period. Management believes that the estimates used in
 preparation of the financial statements are prudent and reasonable.
 Actual results could differ from these estimates.
 
 (ii) INVENTORIES
 
 The raw material & components, stores, packing materials and
 work-in-progress are valued at cost and finished goods are valued at
 lower of cost or net realizable value on First in First out basis.
 Excise and Custom Duties payable in respect of finished goods/imported
 material held in bond are provided for and consequently include cost of
 conversion and other cost incurred in bringing the inventories to their
 present location and conditions. Obsolete unserviceable and slow moving
 inventories are duly recognized and provided.
 
 (iii) CASH FLOW STATEMENT
 
 Cash flows are reported using the indirect method, whereby profit
 before tax is adjusted for effects of transactions of a non-cash
 nature, any deferrals of past or future operating cash receipts or
 payments and item of income or expenses associated with investing or
 financing cash flows. The cash flows from operating, investing and
 financing activities of the company are segregated.
 
 (iv) EVENTS OCCURRING AFTER THE DATE OF BALANCE SHEET
 
 Events occurring after the date of the Balance Sheet, wherever
 material, are considered up to the date of approval of accounts by the
 Board of Directors.
 
 (v) FIXED ASSETS, DEPRECIATION AND IMPAIRMENT LOSS
 
 Fixed Assets are stated at cost net of modvat/cenvat. The cost includes
 all pre-operative expenses and the financing cost of borrowed fund
 relating to the construction period in the case of new projects.
 Depreciation has been provided on Useful life basis as prescribed in
 Schedule II of the Companies Act 2013.
 
 The carrying amounts of the fixed assets are reviewed at each Balance
 Sheet date to assess whether they are recorded in excess of their
 recoverable amounts. In case the recoverable amount of the Fixed Assets
 is lower than its carrying amount a provision is made for the
 Impairment loss.
 
 (vi) RECOGNITION OF INCOME AND EXPENDITURE:
 
 a) All income and expenditure are accounted on accrual basis.
 
 b) INCOME FROM SALES:
 
 Revenue is recognized when significant risks and rewards of ownership
 of the goods sold are transferred to the customer and the commodity has
 been delivered to the shipping agent/Customer.
 
 Sales are net of Sales tax, Excise duty, Goods return & trade discount.
 
 c) INCOME FROM SERVICES:
 
 Revenue in respect of contracts for services is recognised on when the
 service are rendered and related costs are incurred.
 
 (vii) FOREIGN CURRENCY TRANSACTIONS
 
 Transactions in Foreign Currencies are recorded at the exchange rate
 prevailing at the date of transaction. Foreign currency denominated
 Current Assets and Current Liabilities at year end exchange rates. The
 resulting gains or losses are recognised in the Statement of Profit and
 Loss. The premium or gain/losses arising from forward cover
 transactions are recognised in the Statement of Profit & Loss over the
 life of the forward contract.
 
 (viii) INVESTMENT
 
 Long term investment are stated at cost, provision is made to recognize
 a decline, other than temporary, in the value of long term investments.
 
 (ix) RETIREMENT BENEFITS
 
 a) Contribution to Provident Fund is made to Regional Provident Fund
 Commissioner. Contributions toward Gratuity are made to the schemes of
 life Insurance Corporation of India based on premium actuarially
 assessed and intimated in terms of the policies taken with them. These
 contributions are charged to Profit & Loss Account.
 
 b) Provision for incremental liability in respect of encashable
 privilege leave is made on the basis of independent actuarial valuation
 at the year end.
 
 (x) EARNINGS PER SHARE
 
 Basic earnings per share is calculated by dividing the net profit or
 loss for the period attributable to equity shareholders by the weighted
 average number of equity shares outstanding during the period.
 
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the period attributable to equity shareholders and
 weighted average number of shares outstanding during the period are
 adjusted for the effects of all dilutive potential equity shares.
 
 (xi) TAXES ON INCOME
 
 Income tax expenses comprises of Current Tax and Deferred Tax charge or
 credit. Provision for Current Tax is made on the assessable income at
 the tax rate applicable to the relevant Assessment Year. The Deferred
 Tax Asset and Deferred Tax Liability is calculated by applying tax rate
 and tax laws that have been enacted or substantively enacted by the
 Balance Sheet date. Deferred Tax Assets arising mainly on account of
 brought forward losses and unabsorbed depreciation under tax laws, are
 recognised, only if there is virtual certainty of its realization,
 supported by convincing evidence. Deferred Tax Assets on account of
 other timing differences are recognized, only to the extent there is a
 reasonable certainty of its realization. At each Balance Sheet date,
 the carrying amounts of Deferred Tax Assets are reviewed to reassure
 realization.
 
 (xii) TRADE RECEIVABLES
 
 Trade Receivables are stated after making adequate provision for
 doubtful debts/advances.
 
 (xiii) BUSINESS SEGMENTS
 
 The Company is engaged mainly in the business of food processing.
 These, in the context of Accounting Standard 17 on Segment Reporting,
 as specified in the Companies (Accounting Standards) Rules, 2006, are
 considered to constitute one single primary segment. Further, there is
 no reportable secondary segment i.e. Geographical Segment.
 
 
 
 
Source : Dion Global Solutions Limited
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