Himgiri Foods Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

I) GENERAL :

Financial Statements are prepared under the historical cost convention in accordance with the normally accepted Accounting Standards and relevant presentational requirements of the Companies Act, 1956.

ii) FIXED ASSETS :

(a) Valuation of Fixed Assets :

Fixed Assets are valued at cost. They are stated at historical cost less accumulated depreciation in the books of accounts. The Bank who is secured creditor had taken over the possession of most of assets i.e. land & building, plants & machineries, eclectic installation etc. and other assets laying at the factory premises and have sold the assets which are taken into account and the loss is accounted for during the year.

(b) Method of depreciation :

The company had been providing depreciation on Straight Line Method in accordance with the provisions of Section 205 (at rates prescribed by the Schedule XIV)of the Companies Act, 1956. Most of the assets are sold by the bank so the question of depreciation dose not arises. The depreciation on remaining assets appearing in the Balance sheet is not provided as there was no business activity.

iii) INVENTORIES :

There is no inventory on the date of Balance sheet.

iv) ACCOUNTING CONCEPTS :

The Company follows Mercantile system of accounting and recognises Income and Expenditure on accrual basis, however, some items of Expenditure like Bank interest, Insurance Premium/claim, Rates and taxes are accounted for on cash basis.