Notes on
Accounts
I.
Basis of Accounting:
5IF $PNQBOZ QSFQBSFT JUT mOBODJBM TUBUFNFOUT JO BDDPSEBODF XJUI BQQMJDBCMF BDDPVOUJOH TUBOEBSET BOE HFOFSBMMZ BDDFQUFE
accounting principles and also in accordance with the requirements of the Companies Act, 1956.
II. Income and Expenditure:
"DDPVOUJOH PG *ODPNF &YQFOEJUVSF JT EPOF PO BDDSVBM CBTJT
III. Tangible, Intangible Assets & Depreciation:
B 'JYFE BTTFUT BSF TUBUFE BU UIFJS PSJHJOBM DPTU PG BDRVJTJUJPO JODMVTJWF PG JOXBSE GSFJHIU EVUJFT BOE FYQFOEJUVSF JODVSSFE JO
the acquisition, construction/installation. CENVAT/ VAT credit availed on capital equipment is accounted for by credit to
SFTQFDUJWF mYFE BTTFUT
C *O DBTF PG BTTFUT BDRVJSFE PVU PG GPSFJHO DVSSFODZ MPBOT UIF JODSFBTF EFDSFBTF JO MJBCJMJUZ PO BDDPVOU PG nVDUVBUJPO JO
FYDIBOHF SBUFT IBT CFFO DIBSHFE UP 1SPmU -PTT "DDPVOU
c)
Depreciation is charged on Straight Line Method at the rates provided in Schedule XIV of the Companies Act, 1956.
$POUJOVPVT QSPDFTT QMBOU BT EFmOFE JO 4DIFEVMF 9*7 IBT CFFO DPOTJEFSFE PO UFDIOJDBM FWBMVBUJPO $PTU PG mUNFOUT BU TBMF
outlets are depreciated @ 20% on SLM basis. Assets costing upto
`
5,000/- are fully depreciated in the year of purchase.
IV. Investments:
Long term investments are stated at cost.
V. Inventories:
Inventories are valued on the following basis:
a) Stores and Spares - at moving weighted average basis.
b) Raw Materials - at moving weighted average basis.
c)
Work-in-Process - at estimated cost
d) Finished Goods - at lower of cost or estimated realisable value.
e)
Stock in trade - at lower of cost or estimated realisable value.
f) Material in Transit - at cost.
VI. Excise Duty:
$&/7"5 $SFEJU UP UIF FYUFOU BWBJMFE JT BEKVTUFE UPXBSET DPTU PG NBUFSJBMT
VII. Sales
4BMFT BSF JODMVTJWF PG FYDJTF EVUZ BOE BGUFS EFEVDUJOH 7"5 BOE EJTDPVOUT
VIII. Foreign Currency Transactions:
B 5SBOTBDUJPOT EFOPNJOBUFE JO GPSFJHO DVSSFODJFT BSF SFDPSEFE BU UIF FYDIBOHF SBUFT QSFWBJMJOH PO UIF EBUF PG UIF USBOTBDUJPO
PS UIBU BQQSPYJNBUFT UIF BDUVBM SBUF BU UIF EBUF PG UIF USBOTBDUJPO
C .POFUBSZ JUFNT EFOPNJOBUFE JO GPSFJHO DVSSFODJFT BU UIF ZFBS FOE BSF SFTUBUFE BU ZFBS FOE SBUFT FYDFQU JO DBTFT DPWFSFE
CZ GPSXBSE FYDIBOHF DPOUSBDUT
D "OZ JODPNF PS FYQFOTF PO BDDPVOU PG FYDIBOHF EJGGFSFODF FJUIFS PO TFUUMFNFOU PS PO USBOTMBUJPO JT SFDPHOJTFE JO UIF QSPmU
and loss account.
IX. Government grants and subsidies:
Grants and subsidies from the government are recognized when there is reasonable assurance that (i) the Company will comply
with the conditions attached to them, and (ii) the grant/ subsidy will be received.
8IFSF UIF HSBOU PS TVCTJEZ SFMBUFT UP SFWFOVF JU JT SFDPHOJ[FE BT JODPNF PO B BDDSVBM CBTJT JO UIF TUBUFNFOU PG QSPmU BOE MPTT
8IFSF UIF HSBOU SFMBUFT UP B mYFE BTTFU JU JT OFU PGG GSPN UIF SFMFWBOU BTTFU
9 &NQMPZFF #FOFmUT
B 4IPSU UFSN FNQMPZFF CFOFmUT BSF SFDPHOJ[FE BT BO FYQFOTF BU UIF VOEJTDPVOUFE BNPVOU JO UIF QSPmU BOE MPTT BDDPVOU PG
the year in which the related service is rendered.
b) Liability towards Gratuity and unavailed leaves has been provided on the basis of actuarial valuation.
XI. Research & Development:
3FWFOVF &YQFOEJUVSF PO SFTFBSDI BOE EFWFMPQNFOU JT DIBSHFE UP 1SPmU -PTT "DDPVOU JO UIF ZFBS JO XIJDI JU JT JODVSSFE $BQJUBM
&YQFOEJUVSF PO SFTFBSDI BOE EFWFMPQNFOU JT USFBUFE BT BEEJUJPOT UP 'JYFE "TTFUT JO DBTF UIF TBNF RVBMJmFT BT B UBOHJCMF BTTFU
as per AS – 10 issued by ICAI.
1. SIGNIFICANT ACCOUNTING POLICIES
56
Kajaria Ceramics Limited
