Kareems Spun Silk Ltd. कंपली की लेखा नीति

Mar 31, 2009

A) Method of Accounting:

The method of Accounting is accrual except where receipt of income is uncertain and are in accorance with the Accounting Standards referred to in sub-section (3C) of Section 211 of the Companies Act, 1956.

b) Fixed Assets:

All Fixed Assets are valued at cost less accumulated depreciation. Loss or gain on conversion of foreign currency liabilities for acquisition of fixed assets are added to or deducted from the cost of fixed assets.

c) Depreciation:

The Depreciation is provided under the Straight Line Method at rates provided by Schedule XIV to the Companies Act, 1956.

d) Valuation of Inventories :

i) Raw materials and Finished Goods are valued at lower of cost or net realisable value.

ii) Work-in-process at estimated cost.

iii) Stores and Spares and consumables at cost.

e) Sales:

The Export Sales are recognised based on the rates prevailing on the date of transaction.

f) Exchange fluctuation :

The Export receivables as at the year end are restated as per the rates prevailing on the Balance Sheet date.

g) Contingent Liabilities :

The Contingent Liabilities not provided for are reflected in Notes on Accounts.