Notes on
Accounts
I.
Principles of Consolidation
5IF DPOTPMJEBUFE mOBODJBM SFTVMUT PG ,BKBSJB $FSBNJDT -UE iUIF $PNQBOZw BOE JUT TVCTJEJBSJFT IBWF CFFO QSFQBSFE PO UIF
following basis:-
B 5IF mOBODJBM TUBUFNFOUT PG UIF $PNQBOZ BOE JUT TVCTJEJBSZ DPNQBOJFT IBWF CFFO DPOTPMJEBUFE PO B MJOF CZ MJOF CBTJT CZ
adding together with the book value of like items of assets, liabilities and after eliminating the inter subsidiary balances
in accordance with Accounting Standard (AS) 21-“ Consolidated Financial Statements” issued by the Institute of Chartered
Accountants of India.
C "T GBS BT QPTTJCMF UIF DPOTPMJEBUFE mOBODJBM TUBUFNFOU IBWF CFFO QSFQBSFE VTJOH VOJGPSN BDDPVOUJOH QPMJDJFT GPS MJLF
USBOTBDUJPOT BOE JO TJNJMBS DJSDVNTUBODFT BOE BSF QSFTFOUFE UP UIF FYUFOU QPTTJCMF JO UIF TBNF NBOOFS BT UIF DPNQBOZ T
TFQBSBUF mOBODJBM TUBUFNFOUT
c)
The difference between the cost of investment in the subsidiaries, over the net assets at the time of acquisition of shares
JO UIF TVCTJEJBSJFT JT SFDPHOJTFE JO UIF mOBODJBM TUBUFNFOUT BT (PPEXJMM PS $BQJUBM 3FTFSWF BT UIF DBTF NBZ CF
E .JOPSJUZ *OUFSFTU T TIBSF PG OFU QSPmU PG TVCTJEJBSZ GPS UIF ZFBS JT JEFOUJmFE BOE BEKVTUFE BHBJOTU UIF JODPNF PG UIF HSPVQ
in order to arrive at the net income attributable to shareholders of the Company.
F .JOPSJUZ *OUFSFTU T TIBSF PG OFU BTTFUT PG UIF TVCTJEJBSZ $PNQBOZ JT JEFOUJmFE BOE QSFTFOUFE JO UIF DPOTPMJEBUFE CBMBODF
sheet separate from liabilities and the equity of the Company’s shareholders.
G
1BSUJDVMBST PG TVCTJEJBSZ DPNQBOJFT DPOTJEFSFE JO UIF DPOTPMJEBUFE mOBODJBM TUBUFNFOUT BSF
II. 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.
III. Income and Expenditure:
"DDPVOUJOH PG *ODPNF &YQFOEJUVSF JT EPOF PO BDDSVBM CBTJT
IV. 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 JT DIBSHFE UP UIF 4UBUFNFOU PG 1SPmU -PTT
c)
Depreciation is charged at the rates provided in Schedule XIV of the Companies Act, 1956 on Straight Line Method on
BTTFUT PG )PMEJOH $PNQBZ BOE PO 8%7 .FUIPE PO BTTFUT PG 4VCTJEJBSZ $PNQBOZ $POUJOVPVT QSPDFTT QMBOU BT EFmOFE JO
4DIFEVMF 9*7 IBT CFFO DPOTJEFSFE PO UFDIOJDBM FWBMVBUJPO $PTU PG mUNFOUT BU TBMF PVUMFUT BSF EFQSFDJBUFE ! PO 4-.
basis. Assets costing upto
`
5,000/- are fully depreciated in the year of purchase. Goodwill arising on consolidation is tested
for impairment at the Balance Sheet date.
V. Investments:
Long term investments are stated at cost.
1. SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED BALANCE SHEET AND STATEMENT OF PROFIT & LOSS
Name of the Subsidiary
Country of
Proportion of
Incorporation
ownership interest
Soriso Ceramic Pvt. Ltd.
India
51%
+BYY 7JUSJmFE 1WU -UE
*OEJB
Vennar Ceramics Limited
India
51%
Cosa Ceramics Pvt. Ltd.
India
51%
Kajaria Sanitaryware Pvt. Ltd.
India
64%
78
Kajaria Ceramics Limited
