Accounting Policies of Kings India Chemicals Corporation Ltd. Company

Mar 31, 2013

1) General:

The Financial Statements are prepared on the historical cost convention and in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 1956 and on the basis of going concern^

2) Fixed Assets:

Fixed assets are stated at cost of acquisition or construction inclusive of freight, erection and commission charges, duties and taxes, expenses during construction period, interest on borrowings and financial costs upto to the date of acquisition or installation.

3) Borrowing Costs:

Borrowing costs (net of interest earned on temporary investment of those borrowings) directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of the assets. Other borrowing costs are recognized as expense as and when incurred.

4) Investments:

There was no Long term/Short term Investments by the company as on the Balance Sheet date.

5) Inventories:

The Inventories are valued at lower of cost and net realizable value. The closing stocks are valued on the basis of weighted average method.

6) Revenue and Expenditure Recognition:

Revenue/ Incomes and Costs/ Expenditure are accounted for on accrual basics as they are earned or incurred.

7) Foreign Exchange Transactions: there is no Transactions in foreign exchange during the year.

8) Depreciation:

Depreciation on fixed Assets is provided on Straight -Line method as per the classification and in the manner specified in schedule XIV to the Companies Act, 1956.

9) Provisions:

Provision is recognized in respect of present obligation requiring settlement by outflow of resources and of which a reliable estimate on the amount of obligation could be made.

10) Income tax

As the company has earned profit during the year; However, no provision was made for Income-tax in view of the carried forward losses and the applicability of the provisions of sick company.

11) Retirement and other Employee benefits

All employee benefits payable/available within twelve months of rendering the services are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the Profit and Loss Account in the year in which the employee renders the related service.

Provident fund Provident fund is a defined contribution scheme. Contributions payable to the provident fund are charged to the profit and loss account.

Gratuity

Gratuity and leave encashment costs are defined benefits plans. The present value of obligations under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary using the

Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation.

Actuarial gains and losses are recognized immediately in the profit and loss account. Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs.

12) Impairment:

The Management is of opinion that no impairment of assets has been taken place during the financial year ended 31st March 2013.