K K Silk Mills Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

i. Basis of Accounting

The financial statements are prepared under historical cost convention on an accrual basis and are in
accordance with the generally accepted accounting principles in India, the applicable mandatory accounting
standards as notified by Companies (Accounting Standards) Rules, 2014 and the relevant provisions of The
Companies Act, 2013.

ii. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP)
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported
amounts of revenues and expenses during the reporting period. Actual results could differ from these
estimates. Difference between the actual result and estimates are recognized in periods in which the results
are known / materialized.

iii. Fixed Assets

Fixed Assets are carried at historical cost less depreciation accumulated thereon.

iv. Depreciation

Depreciation is systematic allocation of the depreciable amount of an asset over its useful life and is provided
on a straight-line basis over the useful life prescribed in Schedule II to the Companies Act, 2013, unless
otherwise specified.

v. Impairment of Assets

The carrying amounts of fixed assets are reviewed at each Balance Sheet date to ascertain if there is any
indication of impairment based on internal/ external factors. An impairment loss is recognized where the
carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net
selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to
their present value.

vi. Valuation of Inventories

Inventories are valued at Cost or Realizable value, whichever is lower

vii. Revenue Recognition:

I) Sale of goods is recognised when the risk and rewards of ownership are passed on to the customers,
which is generally on dispatch of goods. Sales are stated net of returns and excluding goods and
service tax.

II) Purchases are accounted at total purchase prices as per the bills. The difference on account of delayed
payment, if any, is accounted for at the time of settlement/ payment of the respective bill.

viii. Foreign Exchange Transactions

I) Transactions in foreign currencies are recorded at exchange rates existing at the time of the
transactions and exchange difference arising from foreign currency transactions are dealt with in the
Profit and Loss Statement.

II) All Assets and Liabilities relating to transactions involving foreign currencies are converted at
exchange rates prevailing at the year-end. Any loss or gain arising out of settlements/ conversion is
adjusted in the Profit and Loss Statement.

ix. Retirement Benefits

Retirements benefit to the staff such as gratuity are accounted when the amounts become payable.

x. Borrowing Cost

Borrowing costs attributable to the acquisition or construction of qualifying asset are capitalized as part of the
cost of asset. Other borrowing costs are recognized as an expense in the period for which they are incurred.

xi. Material Events

Material events occurring after the Balance Sheet date are taken into cognizance.