Notes on the consolidated financial statements
1. SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED BALANCE SHEET AND STATEMENT OF PROFIT & LOSS
I.
Principles of Consolidation
The consolidated financial results of Kajaria Ceramics Ltd (“the Company”) and its subsidiaries have been prepared on the following
basis:-
a) The financial statements of the Company and its subsidiary companies have been consolidated on a line-by-line basis by 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”.
b) As far as possible the consolidated financial statement have been prepared using uniform accounting policies for like transactions
and in similar circumstances and are presented to the extent possible in the same manner as the company’s separate financial
statements.
c) The difference between the cost of investment in the subsidiaries, over the net assets at the time of acquisition of shares in the
subsidiaries is recognized in the financial statements as Goodwill or Capital Reserve as the case may be.
d) Minority Interest’s share of net profit of subsidiary for the year is identified and adjusted against the income of the group in order
to arrive at the net income attributable to shareholders of the company.
e) Minority Interest’s share of net assets of the subsidiary Company is identified and presented in the consolidated balance sheet
separate from liabilities and the equity of the Company’s shareholders.
f) Particulars of subsidiary companies considered in the consolidated financial statements are:
Name of the Subsidiary
Country of Incorporation
Proportion of ownership interest
Soriso Ceramic Pvt Ltd
India
51%
Jaxx Vitrified Pvt Ltd
India
61%
Vennar Ceramics Limited
India
51%
Cosa Ceramics Pvt Ltd
India
51%
Kajaria Bathwares Pvt Ltd
India
100%
Taurus Tiles Pvt Ltd
India
51%
Floera Ceramics Pvt Ltd
India
51%
Kajaria Ceramics Kazakhstan LLP
Kazakhstan
100%
II. Basis of preparation of financial statements:
The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in
India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with
Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 (“the 2013 Act”). The
financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in
Indian rupees rounded off to the nearest rupees in crore.
III. Use of estimates:
The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made
that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and
the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are
recognized in the period in which the results are known/ materialized.
IV. Tangible & Intangible Fixed Assets:
a) Tangible assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the
acquisition, construction/installation less accumulated amortization and impairment loss, if any. CENVAT/ VAT credit availed on
capital equipment is accounted for by credit to respective fixed assets.
b) Expenditure during construction period including trial run expenses (net of revenue) are capitalised. Borrowing costs during the
period of construction is added to the cost of eligible tangible assets.
c) Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment
loss, if any.
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Kajaria Ceramics Limited
