KCK Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

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Mar 31, 2023

2.3. S ignificant Accounting Policies

a) Property, plant and equipment:

Property, plant and equipment is stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. The Cost of these assets comprise its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditure relating to an item of assets are added to its book value only if they increase the future benefits from the existing assets beyond its previously assessed standard of performAAlceother repairs andmaintenance cost are charged to the statement of profit and loss during the period in which they are incurred.

Gains/Losses arising onlisposal of property, plant and equipment arecognized in the statement of profit and loss as optional items .

Depreciation on fixedassets isprovided on straight line method based on estimated useful life prescribed under Schedule II of the Companies Act, 20B.

The residual values, useful lives and method of depreciation of property! plnl equipment is reviewed at each financial year end and adjusted prospectively, if appropriate .

b) Inventories:

Inventories are valued at the lower of cost and net realizable value after providing for obsolescence, if any except in case of -product which are valued at net realizable value. The cost is computed on First in First out (FIFO) basis. Cost for the purpose of valuation of finished goods and goods in process is computed on the basis of cost of

material, l abor and other related overheadk.irther, wdiave reliedupon informationand data provided to usin respect of inventories valuations and quantity. Physical stock check performed by the management has been relied upon tfor stock held as on 31C3.2C2B.

c) Cash and Cash Equivalents:

Cash and Cash Equivalents are short term (3 months or less from the date of acquisition), highly liquid investments that are daily convertible into cash and which are subject to and insignificant risk of changes in valu e .

d) Trade Receivables:

Trade receivables are recognized at fair valine .respect of ageing the company has debtors amounting approximate 9.C8 lakh beyond 2 years and the same is advised to management to be written off if not recoverable.

e) Trade Payables:

Trade payables are recognized at fair valudn respct of ageing the company has Creditors amounting approximate 2C0 cror beyond 2 years and the same is advised to management to b written off if not Payable

f) Impairment of Non-Financial Tangible Assets:

Property, plant and equipment with finite life are evaluated for recoverability whenever there is an indication that carrying amounts may not be recoverable. if any such indication exists, the recoverable amou(ite. higher of fair value less cost to sell and the value in use) is determined on an individual asset basis unless the asset does not generate cash flow that are largely independent of those from other assets. in such cases, the recoverable amount is determid for the cash generating unit (CGU) to which the assets belongs.

if the recoverable amount of an asset (or CGU) is estimated to be less that its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairnent loss is recognized in the statement of profit and loss.