Accounting Policies of Killick Nixon Ltd. Company

Mar 31, 2013

(a) SALES AND OTHER INCOME :

Sale value of Products is inclusive of excise duty excluding VAT/CST and is net of discounts other than cash discount.

(b) FIXED ASSETS :

Fixed Assets are recorded at cost except for subsequent revaluation as stated hereinafter in respect of Buildings. The Company capitalises all cost relating to Fixed Assets acquisition and installation.

(c) DEPRECIATION :

Depreciation on Fixed Assets is provided on written down value method in accordance with the provisions of the Companies Act,1956 as applicable from time to time. The amount of annual depreciation on that portion of the value of the uildings which is written up on revaluation is transferred from Revaluation

Reserve to Profit and Loss Account.

Patent and Trademarks are amortised equally over 14 years.

(d) INVESTMENTS :

Investments (which are long term) are stated at cost and permanent diminution in their value wherever considered necessary is provided.

(e) DEFERRED EXPENDITURE :

Revenue expenditure, benefit of which is likely to accrue over a period of time, is treated as deferred revenue expenditure and is written off proportionately over such period or five years whichever is less.

(f) RESEARCH AND DEVELOPMENT :

Revenue expenditure on Research and Development is charged to Profit and Loss Account in the year in which it is incurred. Capital expenditure is treated as addition to Fixed Assets.

(g) FOREIGN CURRENCIES :

All exchange differences arising from foreign currency transactions are dealt with in Profit and Loss Account(except those relating to acquisition of Fixed Assets which are adjusted in the cost of the assets). All foreign currency assets and liabilities as at the balance sheet date are restated at the applicable exchange rates prevailing on that date and any material differences arising on such restatement are dealt with in the Profit and Loss Account except those relating to acquisition of Fixed Assets.

(h) PROVISION FOR RETIREMENT BENEFITS :

Liability in respect of retirement gratuity and leave encashment to employees is accounted for, on the basis of actuarial valuation. Retirement benefits in the form of Provident Fund and Superannuation/Pension Scheme, whether in pursuance of any law or otherwise, is accounted on actual basis and charged to the Profit & Loss Account.

(i) ACCOUNTING FOR TAXES ON INCOME :

Current tax is determined as an amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of the deferred tax assets arising due to timing differences, being the difference between taxable income and accounting income which originate in one year and are capable of reversal entry one or more subsequent years. Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual Certainty of its realization, supported by convincing evidence at each Balance Sheet date the carrying amount of deferred tax assets are reviewed, to reassure realization. certainty of its realization, supported by convincing evidence at each Balance Sheet date the carrying amount of deferred tax assets are reviewed, to reassure realization.

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Mar 31, 2010

A. PRINCIPAL ACCOUNTING POLICIES :

(a) SALES AND OTHER INCOME :

Sale value of Products is inclusive of excise duty excluding VAT/CST and is net of discounts other than cash discount.

(b) INVENTORIES :

Freehold land is valued at the value appraised on its conversion from fixed assets into stock in trade. All inventories are valued at cost, cost determined on first-in first-out basis or specific identification of cost basis where applicable, or net realizable value whichever is less. The cost of Company manufactured products and work in progress consists of cost of direct materials and direct labour cost and addition of an appropriate proportion of works overheads.

(c) FIED ASSETS :

Fixed Assets are recorded at cost except for subsequent revaluation as stated hereinafter in respect of Buildings. The Company capitalises all cost relating to Fixed Assets acquisition and installation. Engineering Factory, and K.I.S.P buildings at Chandivli and the building at Ahmedabad are revalued periodically on the basis of valuation of external approved valuer.

(d) DEPRECIATION :

Depreciation on Fixed Assets other than Freehold, Leasehold Land and Tenancy Rights is provided on written down value method in accordance with the provisions of the Companies Act,1956 as applicable from time to time. The amount of annual depreciation on that portion of the value of the buildings which is written up on revaluation is transferred from Revaluation Reserve to Profit and Loss Account.

Leasehold Land is amortized over the period of the lease. No depreciation is provided on the Freehold Land and Tenancy Rights.

Patent and Trademarks are amortised equally over 14 years.

(e) INVESTMENTS:

Investments (which are long term) are stated at cost and permanent diminution in their value wherever considered necessary is provided.

(f) DEFERRED EXPENDITURE :

Revenue expenditure, benefit of which is likely to accrue over a period of time, is treated as deferred revenue expenditure and is written off proportionately over such period or five years whichever is less.

(g) RESEARCH AND DEVELOPMENT :

Revenue expenditure on Research and Development is charged to Profit and Loss Account in the year in which it is incurred. Capital expenditure is treated as addition to Fixed Assets.

(h) FOREIGN CURRENCIES :

All exchange differences arising from foreign currency transactions are dealt with in Profit and Loss Account(except those relating to acquisition of Fixed Assets which are adjusted in the cost of the assets). All foreign currency assets and liabilities as at the balance sheet date are restated at the applicable exchange rates prevailing on that date and any material differences arising on such restatement are dealt with in the Profit and Loss Account except those relating to acquisition of Fixed Assets.

(i) PROVISION FOR RETIREMENT BENEFITS :

Liability in respect of retirement gratuity and leave encashment to employees is accounted for, on the basis of actuarial valuation. Retirement benefits in the form of Provident Fund and Superannuation/Pension Scheme, whether in pursuance of any law or otherwise, is accounted on actual basis and charged to the Profit & Loss Account.

(j) ACCOUNTING FOR TAXES ON INCOME :

Current tax is determined as an amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of the deferred tax assets arising due to timing differences, being the difference between taxable income and accounting income which originate in one year and are capable of reversal entry one or more subsequent years. Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence at each Balance Sheet date the carrying amount of deferred tax assets are reviewed, to reassure realization.

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Mar 31, 2009

(a) SALES AND OTHER INCOME :

Sale value of Products is inclusive of excise duty excluding VAT/CST and is net of discounts other than cash discount.

(b) INVENTORIES :

Freehold land is valued at the value appraised on its conversion from fixed assets into stock in trade. All inventories are valued at cost, cost determined on first-in first-out basis or specific identification of cost basis where applicable, or net realizable value whichever is less. The cost of Company manufactured products and work in progress consists of cost of direct materials and direct labour cost and addition of an appropriate proportion of works overheads.

(c) FIXED ASSETS :

Fixed Assets are recorded at cost except for subsequent revaluation as stated hereinafter in respect of Buildings. The Company capitalises all cost relating to Fixed Assets acquisition and installation. Engineering Factory, and K.I.S.P buildings at Chandivli and the building at Ahmedabad are revalued periodically on the basis of valuation of external approved valuer.

(d) DEPRECIATION :

Depreciation on Fixed Assets other than Freehold, Leasehold Land and Tenancy Rights is provided on written down value method in accordance with the provisions of the Companies Act,1956 as applicable from time to time. The amount of annual depreciation on that portion of the value of the buildings which is written up on revaluation is transferred from Revaluation Reserve to Profit and Loss Account. Leasehold Land is amortized over the period of the lease. No depreciation is provided on the Freehold Land and Tenancy Rights. Patent and Trademarks are amortised equally over 14 years.

(e) INVESTMENTS :

Investments (which are long term) are stated at cost and permanent diminution in their value wherever considered necessary is provided.

(f) DEFERRED EXPENDITURE :

Revenue expenditure, benefit of which is likely to accrue over a period of time, is treated as deferred revenue expenditure and is written off proportionately over such period or five years whichever is less.

(g) RESEARCH AND DEVELOPMENT :

Revenue expenditure on Research and Development is charged to Profit and Loss Account in the year in which it is incurred. Capital expenditure is treated as addition to Fixed Assets.

(h) FOREIGN CURRENCIES :

All exchange differences arising from foreign currency transactions are dealt with in Profit and Loss Account(except those relating to acquisition of Fixed Assets which are adjusted in the cost of the assets). All foreign currency assets and liabilities as at the balance sheet date are restated at the applicable exchange rates prevailing on that date and any material differences arising on such restatement are dealt with in the Profit and Loss Account except those relating to acquisition of Fixed Assets.

(i) PROVISION FOR RETIREMENT BENEFITS :

Liability in respect of retirement gratuity and leave encashment to employees is accounted for, on the basis of actuarial valuation. Retirement benefits in the form of Provident Fund and Superannuation/Pension Scheme, whether in pursuance of any law or otherwise, is accounted on actual basis and charged to the Profit & Loss Account.

ACCOUNTING FOR TAXES ON INCOME :

Current tax is determined as an amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, subject to the consideration of prudence in respect of the deferred tax assets arising due to timing differences, being the difference between 0) taxable income and accounting income which originate in one year and are capable of reversal entry one or more subsequent years. Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is virtual certainty of its realization, supported by convincing evidence at each Balance Sheet date the carrying amount of deferred tax assets are reviewed, to reassure realization.