SENSEX NIFTY India | Accounting Policy > Domestic Appliances > Accounting Policy followed by TTK Prestige - BSE: 517506, NSE: TTKPRESTIG
TTK Prestige
BSE: 517506|NSE: TTKPRESTIG|ISIN: INE690A01010|SECTOR: Domestic Appliances
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Accounting Policy Year : Mar '14
1.1.  Basis for preparation of accounts:
 The Accounts have been prepared to comply in all material aspects with
 applicable Accounting Principles in India, the applicable Accounting
 Standards notified under Section 211(3C) of The Companies Act 1956 and
 the relevant provisions thereof. Financial Statements are prepared
 based on historical cost and on the basis of a going concern. The
 Company follows the mercantile system of Accounting and recognizes
 income and expenditure on an accrual basis.
 1.2.  Fixed Assets:
 Fixed Assets are stated at cost of acquisition inclusive of freight,
 taxes, insurance etc. relating to the acquisition including
 installation/erection charges up to the date the asset is put to use,
 as applicable.
 Borrowing costs attributable to acquisition /construction or production
 of a qualifying asset is capitalized as a part of cost of the asset.
 The Company is providing depreciation on Written Down Value (WDV)
 method by adopting the rates specified in Schedule XIV of the Companies
 Act, 1956 in respect of all Fixed Assets capitalized up to 31st March,
 1997. In respect of additions from 1st April 1997, the Company is
 providing depreciation by adopting Straight Line method specified in
 Schedule XIV of the Companies Act, 1956. ERP Software, being intangible
 asset is depreciated at 20% on straight line basis in line with AS 26.
 Depreciation on additions during the year is provided on pro-rata
 Leasehold land is amortized over the period of the Lease.
 1.3.  Revenue Recognition:
 Sales are stated at net of returns and sales tax. The Excise Duty
 relatable to sales is separately disclosed and deducted from Sales.
 Sales Revenue is recognized when significant risks and rewards of
 ownership of the goods have passed to the buyer.
 Dividend income from investments is accounted for when the right to
 receive the payment is established.
 Interest Income is recognized on a time proportion basis taking in to
 account the amount outstanding and the rate applicable.
 1.4.  Investments:
 Investments are classified into Current and Non Current Investments.
 Current Investments are stated at the lower of cost and fair value. Non
 Current Investments are stated at cost.
 1.5.  Impairment of Assets:
 Impairment loss, if any is provided to the extent, the carrying amount
 of the assets exceeds their recoverable amount.  Recoverable amount is
 higher of an asset''s net selling price and its value in use. Value in
 use is the present value of estimated future cash flows expected to
 arise from the continuing use of an asset and from its disposal at the
 end of its useful life.
 1.6.  Trade Receivables and Loans and advances:
 Sundry Debtors and Loans and advances are stated after making adequate
 provisions for doubtful balances.
 1.7.  Provisions:
 A Provision is recognized when there is a present obligation as a
 result of a past event, it is probable that an outflow of resources
 will be required to settle the obligation and in respect of which
 reliable estimate can be made. Provision is not discounted to its
 present value and is determined based on the best estimate required to
 settle the obligation at the year end date. These are reviewed at each
 year end date and adjusted to reflect the best current estimate.
 1.8.  Retirement /Post Retirement Benefits:
 The Company also provides for retirement/post retirement benefits in
 the form of Gratuity, Pension, and Leave Encashment.  Such benefits are
 provided for based on the valuations, as at the Balance Sheet date,
 made by independent actuaries.  Termination benefits are recognized as
 an expense as and when incurred.
 1.9.  Taxes on Income:
 Current Tax is determined as the amount of tax payable in respect of
 taxable income for the period.
 Deferred tax is recognized, subject to the consideration of prudence,
 on timing differences, being the difference between the taxable incomes
 and accounting income that originate in one period and are capable of
 reversal in one or more subsequent periods. Deferred tax assets are not
 recognized on unabsorbed depreciation and carry forward of losses
 unless there is virtual certainty that sufficient future taxable income
 will be available against which such deferred tax asset can be
 1.10. Foreign Currency Transactions:
 Transactions in foreign currency are recorded at exchange rates
 prevailing at the time of the transactions and exchange difference
 arising from foreign currency transaction are dealt with in the profit
 and loss account and capitalized where they relate to the Fixed Assets.
 Current Assets and Liabilities at year end are being converted at
 closing rates and exchange gains /losses are dealt with in the profit
 and loss account, as per AS 11.
 1.11.  Grant / subsidies
 Grant / subsidy received under Central Investment Subsidy Scheme is
 directly credited to capital reserve.
 1.12 Inventories
 Inventories are valued at lower of cost, computed on a weighted average
 basis and estimated net realizable value, after providing for cost of
 obsolescence and other anticipated losses, wherever considered
 necessary. Finished goods and work in Progress include cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition.
 1.13 Borrowing costs
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalized as part of cost of
 such asset. As per AS-16  Borrowing costs  , a qualifying asset is
 one that takes necessarily substantial period of time to get ready for
 its intended use.  All the other borrowing costs are expensed as and
 when incurred.
 1.14 Earnings per share
 Basic earnings per share is calculated by dividing the net profit or
 loss for the year attributable to equity share holders by weighted
 average number of equity shares outstanding during the year. For the
 purpose of calculating diluted earnings per share, the net profit or
 loss for the year attributable to equity share holders and weighted
 average number of shares outstanding during the year are adjusted for
 the effects of dilutive part of equity shares, if any.
 1.15 Segment Reporting
 Identification of Segments
 The Company has complied with AS 17 Segment Reporting  with the
 business as its primary segment. The risk and awards are very similar
 in different geographical areas and hence there is no reportable
 secondary segment as defined in AS-17.
 Segment Policies
 (i) Revenues have been identified to segments on the basis of their
 relationship to the operative activities of the segment. Revenues and
 expenses that relate to the enterprise as a whole and are not allocable
 to segments on a reasonable basis have been included under
 Un-allocable expenses.
 (ii) Inter segment revenue and expense are eliminated.
 (A) Authorised, Issued, Subscribed and Paid Up Share Capital
 1.  Paid Up Share Capital of 1,16,41,190 shares (Previous Year :
 1,13,41,190 shares) includes 78,69,064 shares of Rs. 10 each alloted as
 Bonus Shares fully paid-up by capitalisation of reserves and 20106
 shares issued to shareholders of M/s. Prestige Housewares India Limited
 (PHIL) consequent to merger of PHIL with TTK Prestige Limited. This
 also includes 3,00,000 Equity shares of Rs. 10 each alloted on
 preferential basis to M/s. Cartica Capital Limited during the financial
 2.  There was no issue/buy back of shares of the nature mentioned in
 clause (i) of note 6A of general instructions to Schedule VI in the
 last five years.
 Mode of Valuation:
 Inventories are valued at lower of cost,computed on a weighted average
 basis and estimated net realisable value,after providing for cost of
 obsolescence and other anticipated losses, wherever considered
 necessary. Finished Goods and Work in progress include cost of
 conversion and other costs incurred in bringing the inventories to
 their present location and condition.
 2.27 Previous year figures are given in brackets.
 2.32 The previous year''s figures have been regrouped and reclassified
 wherever necessary to make them comparable with the figures of the
 current year.
 2.33 (a) The company has created a Trust which has taken a Group
 Gratuity Policy with the Life Insurance Corporation of India for future
 payment of gratuity to retired / resigned employees. Based on the
 actuarial valuation, provision has been made for the full value of the
 gratuity benefits as per the requirements of Accounting Standard
 (AS-15) (Revised) issued by The Institute of Chartered Accountants of
 (b) The Company contributes to a Superannuation Fund covering specified
 employees. The Contributions are by way of annual premia payable in
 respect of a superannuation policy issued by the Life Insurance
 Corporation of India, which confers benefits to retired / resigned
 employees based on policy norms. No other liabilities are incurred by
 the Company in this regard.
 (c) Leave encashment benefit has been charged to Profit & Loss account
 on the basis of actuarial valuation as at the year end in line with the
 Accounting Standard (AS -15) (Revised) issued by the Institute of
 Chartered Accountants of India
 The Employees'' Gratuity Fund Scheme managed by a Trust is defined
 benefit plan.
 The present value of obligation is determined based on actuarial
 valuation using Projected Unit Credit method which recognizes each
 period of service as giving rise to additional unit of employee benefit
 entitlement and measures each unit separately to build up the final
 obligation as per Para 65 of the Accounting Standard AS-15 (Revised),
 issued by the Institute of Chartered Accountants of India.
 The obligation for Leave Encashment is recognized in the same manner as
 Actuarial Assumptions:
 The estimate of rate of escalation in salary considered in actuarial
 valuation, take in to account inflation, Seniority, promotion and other
 relevant factors including supply and demand in the employment market.
 e) Amounts for the Current and previous periods are as follows :-
 2.34 Fringe Benefit Tax (till the time of abolition) was paid under
 protest, since the matter is pending before The Hon''ble Supreme Court
 of India. In case of a favourable decision, the company would be
 entitled to seek refund of the same.  Amount: Rs. 197.37 Lakhs (P/Y : Rs.
 197.37 Lakhs).
 2.37 Based on data received from Vendors, the amount due to MSMED is
 ascertained as Rs. 1518.59 Lakhs. There are no over dues.
 2.38 The company has two segments namely Kitchen Appliances and
 Property & Investment for reporting purposes.
 2.39 Disclosure as per Accounting Standard - 19
 The company has not acquired any item of Vehicles on Financial Lease
 during the year. The details in respect of vehicles purchased in
 earlier years are as follows :- The Minimum lease rental outstanding as
 of 31st March 2014 in respect of these assets is as follows:
 2.40 Related Party transactions as per Accounting Standard - 18:
 (a) The Company has transactions with the following entities
 Related Party, Enterprises over which Key Management personnel have
 significant control.
 TTK Health Care Limited, Peenya Packaging Products, TTK Protective
 Devices Limited, T.T. Krishnamachari & Co., TTK Services (P) Limited.
 Key Management Personnel and their Relatives:
 Mr. T.T. Jagannathan, Mr. T.T. Raghunathan, Mr. S. Ravichandran, Mr. K.
 Shankaran, Dr. (Mrs.) Latha Jagannathan, Dr. T.T. Mukund, Mrs. Bhanu
 Raghunathan, Mrs. Shanthi Ranganathan.
 2.42 The company is liable to pay Minimum Alternate Tax (MAT) U/s 115
 JB of the Income Tax Act 1961. The difference between tax calculated
 under normal provision of Income Tax Act 1961 and MAT is shown as MAT
 Entitlement Credit in accordance with Guidance Note issued by ICAI in
 this respect.
 2.43 Disclosure required by AS 29 ''Provisions, Contingent Liabilities
 and Contingent Assets.
 a) Movement in Provisions (figures in brackets are in respect of the
 previous year)
Source : Dion Global Solutions Limited
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