Sawant Food Products Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2012

1) Basis of Accounting:

i) The Financial Statements are prepared under historical cost convention.

ii) The Company is following Mercantile basis of accounting and recognizes Income & Expenditure on accrual basis except for Dividend Income, DEPB Premium, Gratuity and other retirement benefits to employees, Company profession Tax etc. which are accounted on cash basis.

2) Revenue Recognition:

i) The Company is following cash basis of accounting except where there is no certainty regarding its realization like DEPB Premium etc.,

ii) Sales are accounted on the basis of bills raised.

3) Fixed Assets:

i) Fixed Assets are stated at Cost of acquisition less accumulated depreciation;

ii) Depreciation is provided by the company on Written down Value method at the rates specified in Schedule XIV of the Companies Act, 1956;

iii) Depreciation of sales and purchases during the year is provided on pro-rata basis.

4) Inventories:

i) Inventories are valued at lower of Cost or Net Realizable Value except for packing materials which are valued at Cost;

ii) Stores & spares are valued at Cost less amounts written off.

5) Retirement Benefit:

The Company did not have any employees employed during the year. However, no provision has been made in the books of accounts of the previous dues, if any pertaining to retirement benefits.

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Mar 31, 2010

1) Basis of Accounting :

i) The Financial Statements are prepared under historical cost convention ii) The Company is following Mercantile Basis of accounting and recognizes Income & Expenditure on accrual basis except for dividend Income DEPB premium Gratuity and other retirement benefits to employees Company profession Tax etc which are accounted on cash basis 2.Revenue Recognition :

i) The company is following cash basis of accounting except where there is no certainty regarding its realization like DEPB premium etc ii) Sales are accounted on the basis of bills raised .

3.Fixed Assets :

i) Fixed Assets are stated at cost of acquisition less accumulated depreciation;

ii) Depreciation is provided by the company on written down value Method at the rates Specified in Schedule XIV of the Companies Act 1956;

iii) Depreciation of sales and purchases during the year is provided on pro -rata basis .

4.Investories

i) Inventories are valued at lower of cost or Net Realizable Value except for packing materials which are valued at cost ;

ii) Stores & spares are valued at Cost less amounts written off.

5.Retirement Benefit:

The Company did not have any employee employed during the year .However no provision has been made in the books of accounts of the previous dues if any pertaining to retirement benefits