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Kajaria Ceramics Limited
Annual Report
2012-13
25
YEARSOF
WORKINGWITH
ANATTITUDE
CELEBRATING
Notes on Accounts
I.
Basis of Accounting:
The Company prepares its financial statements in accordance with applicable accounting standards and generally accepted
accounting principles and also in accordance with the requirements of the Companies Act, 1956.
II.
Income and Expenditure:
Accounting of Income & Expenditure is done on accrual basis.
III. Tangible, Intangible Assets & Depreciation:
a)
Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the
acquisition, construction/installation. CENVAT/ VAT credit availed on capital equipment is accounted for by credit to respective
fixed assets.
b) In case of assets acquired out of foreign currency loans, the increase/decrease in liability on account of fluctuation in exchange
rates has been charged to Profit & Loss Account.
c)
Depreciation is charged on Straight Line Method at the rates provided in Schedule XIV of the Companies Act, 1956. Continuous
process plant as defined in Schedule XIV has been considered on technical evaluation. In case of assets of sale outlets of
dealers, depreciation is charged @ 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 & Custom Duty:
a)
Custom Duty is accounted for at the time receipt of goods in custom warehouse.
b) CENVAT Credit, to the extent availed, is adjusted towards cost of materials.
VII. Sales
Sales are inclusive of excise duty and after deducting VAT and discounts.
VIII. Foreign Currency Transactions:
a)
Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or
that approximates the actual rate at the date of the transaction.
b) Monetary items denominated in foreign currencies at the year end are restated at year end rates, except in cases covered by
forward exchange contracts.
c)
Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and
loss account.
IX. Employee Benefits:
a)
Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the
year in which the related service is rendered.
b) Gratuity liability has been provided on the basis of actuarial valuation.
1. SIGNIFICANT ACCOUNTING POLICIES
