Accounting Policies of KEW Industries Ltd. Company

Mar 31, 2013

A) Basis of Accounting

The company prepares its financial statements under the historical cost convention in accordance with generally accepted accounting principles and in accordance with the provisions of Companies Act, 1956.

b) Fixed Assets

The fixed assets are stated at historical cost inclusive of installation expenses & interest upto the date of commissioning of the assets.

c) Depreciation

Depreciation has been provided on fixed assets under straight-line method at the rates Specified in schedule XIV of the Companies act, 1956.

d) Investments

Investments are valued at cost.

e) Inventories

i) Raw material is valued at cost

ii) Work in process has been valued at cost plus expenses as per stage of completion.

iii) Finished goods have been valued at estimated cost or net realizable value which ever is lower.

iv) Stores and spares have been valued at cost or realizable value which ever is lower

f) Sales

Sales include excise duty.

g) Revenue Recognition

All expenses and revenue are accounted for on accrual basis. h) Gratuity and leave encashment

Gratuity and leave encashment is accounted for on cash basis. 1. Research & Development

Revenue expenditure on research and development on going research project is charged in the year in which it is incurred. Expenditure which results in developing the new product or process where the management is of the opinion that products will be/are commercially viable are deferred and charged to the future accounting periods over a period of five years commencing from the following year to the intial year in which these are incurred.

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Mar 31, 2011

A. Basis of Accounting

The company prepares its financial statements under the historical cost convention in accordance with generally accepted accounting principles and in accordance with the provisions of Companies Act, 1956.

b) Fixed Assets

The fixed assets are stated at historical cost inclusive of installation expenses & interest upto the date of commissioning of the assets.

c) Depreciation

Depreciation has been provided on fixed assets under straight-line method at the rates Specified in schedule XIV of the Companies act, 1956.

d) Investments

Investments are valued at cost.

e) Inventories

i) Raw material is valued at cost

ii) Work in process has been valued at cost plus expenses as per stage of completion.

iii) Finished goods have been valued at estimated cost or net realizable value which ever is lower.

iv) Stores and spares have been valued at cost or realizable value which ever is lower

f) Sales

Sales include excise duty.

g) Revenue Recognition

All expenses and revenue are accounted for on accrual basis.

h) Gratuity and leave encashment

Gratuity and leave encashment is accounted for on cash basis.

i) Research & Development

Revenue expenditure on research and development on going research project is charged in the year in which it is incurred. Expenditure which results in developing the new product or process where the management is of the opinion that products will be/are commercially viable are deferred and charged to the future accounting periods over a period of five years commencing from the following year to the initial year in which these are incurred.

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Mar 31, 2010

A. Depreciation

Depreciation has been provided on fixed assets under straight-line method at the rates Specified in schedule XIV of the Companies act, 1956.

b. Investments

Investments are valued at cost.

c. Inventories

I. Raw material is Valued at cost..

II. Work in process has been valued at cost plus expenses as per stage of completion .

III. Finished goods have been valued at estimated cost or net realisable value which ever is lower.

IV. Stores and spares have been valued at cost or realisable value which ever is lower.

d. Sales

Sales include excise duty.

e. Revenue Recognition

All expenses & revenue are accounted for on accrual basis.

f. Gratuity and leave encashment

Gratuity and leave encashment is accounted for on cash basis.

g. Research & Development

Revenue expenditure on research and development on going research project is changed in the year in which it is incurred. Expenditure which results in developing the new product or process where the management is of the opinion that products will be/are commercially viable are deferred and charged to the future accounting periods over a period of five years commencing from the following year to the intial year in which these are incurred.