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Moneycontrol.com India | Accounting Policy > Food Processing > Accounting Policy followed by Kovilpatti Lakshmi Roller Flour Mills - BSE: 507598, NSE: KLRF
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Kovilpatti Lakshmi Roller Flour Mills

BSE: 507598|NSE: KLRF|ISIN: INE014E01015|SECTOR: Food Processing
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Kovilpatti Lakshmi Roller Flour Mills is not traded in the last 30 days
Mar 15
Accounting Policy Year : Mar '16

a METHOD OF ACCOUNTING

The Company follows mercantile system of accounting and recognize income and expenditure on accrual basis.

b FIXED ASSETS

Interest and commitment charges on term loans specifically availed for acquisition of assets for modernization is capitalized until commencement of production.

Depreciation on assets has been provided based on the useful life as specified in Schedule II of the Companies Act, 2013 under straight line method.

Exchange rate fluctuations on assets acquired under foreign currency loan are capitalized.

Recoverable amount of every asset is higher of its carrying amount and its value in use.

c INVENTORIES

Inventories other than finished goods are valued at cost. Costs include expenses incurred in bringing the inventories up to the present location and condition and is net of mod vat. Finished goods are valued at lower of cost and net realizable value.

d INVESTMENTS

Investments are meant to be long term investments and are stated at cost. Diminution in the value of investments other than temporary in nature are provided for.

e FOREIGN CURRENCY TRANSACTION

Transactions in foreign currency are accounted at exchange rate prevailing on the date of transactions.

Exchange gains/losses are recognized in the Statement of Profit and Loss except in respect of liabilities incurred for acquisition of fixed asset.

f EMPLOYEES BENEFITS

Future liability towards gratuity to employees is determined on the basis of actuarial valuation as at the year end and funded through a separate approved trust administered by LIC of India. Contributions to Provident Fund, ESI and Family Pension Fund being fixed contributions are absorbed in the accounts.

g INCOME TAX

i) Current Tax

Current tax has been provided as per the Income Tax Act, 1961

ii) Deferred Tax

Deferred Taxation is accounted for in respect of all timing differences on a liability method.

14 During the year the Company has accounted for the deferred taxation which represents the amount determined and considered up to the Balance Sheet date, in accordance with Accounting Standard 22 issued by the Institute of Chartered Accountants of India, to neutralize the tax effect of timing differences between taxable income & depreciation and accounting income & depreciation that originate in one period and are capable of reversal in subsequent periods.

15 Company has initiated the process of obtaining confirmation from suppliers who have registered themselves under the Micro, Small and Medium Enterprises Development Act, 2006. Based on the information and evidence available with the company, there are no dues to micro and small enterprises, outstanding as on 31.03.2016.

16 Related party disclosure

The following are the transactions with related parties in terms of AS 18 issued by the Institute of Chartered Accountants of India. Reimbursement of expenses has not been treated as related party transactions.

19 Discontinuing operation AS 24 20 (a to d)

On 12th November, 2014, the Board of Directors announced a plan for closure of the Textile Division which represents a separate business segment as per Segment Reporting. The disposal is consistent with the Company''s long-term strategy to focus its activities.

20 Comparative figures for previous year have been re-classified and re-grouped wherever necessary to confirm to this year''s classifications.

Source : Dion Global Solutions Limited
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