Santogen Exports Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2009

I) SYSTEM OF ACCOUNTING :

The Accounts have been prepared in all material respects with applicable Accounting Principle in India, the Accounting Standards issued by ICAI and relevant provisions of Companies Act,1956 of India Items of Income and expenditure are recognised an accrual basis unless stated otherwise

II) FIXED ASSETS :

All fixed assets are valued at cost less depreciation provided in Books of Account.

III) DEPRECIATION :

Depreciation is being provided on straight line method at the rates prescribed in Schedule XIV of the companies Act,1956, such as amended on pro-rata basis from the date each asset were put to use during the year.

IV) INVENTORIES :

a) Raw material - At cost (FIFO Method)

b) Finished Goods - At cost or market value whichever is lower

c) Stores,Spares & Packing Materials - At cost (FIFO Method)

V) SALES : Sales is Exclusive of Excise duty wherever applicable.

VI) INVESTMENTS : Investment are stated as cost of acquisation

VII) FOREIGN CURRENCY:

a) Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of the transactions

b) Monetary item denominated in foreign currency at the year end and not covered by forward exchange contract are translated at the year in rate and those covered by forward exchange contracts are translated at the rate ruling on the date of transactions as increased or decreased by the proportionated difference between the forward rate and exchange rate on the date of transaction such differences having been recognised over the life of the contract

c) Non-monetary foreign currency item are carried at cost.

d) Any income of expense on account of exchange difference either on settlement or on translation is recognised in the profit or loss account except in case where they relate to the acquistion of fixed assets in which case they are adjusted to the carrying cost of such assets.