Kothari Global Ltd. कंपली की लेखा नीति

Mar 31, 2010

A. General

i. Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

ii. Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

iii. Interest on National Savings Certificates, is accounted on receipt basis.

b. Fixed Asset

Fixed Assets are stated at the cost of acquisition inclusive of freight, duties , taxes and incidental expenses related thereto.

c. Depreciation

i. Depreciation is provided on straight line method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

ii. Depreciation on additions during the year has been provided on pro rata basis with reference to the month of additions.

d. Foreign Currency Transactions

Foreign Currency Transactions are recorded in the books at the exchange rate prevailing on the date of transaction except transactions covered by Forward Contracts rates which are stated at such Forward Contract rates.

e. Revenue Recosnition

i. Sales comprises of sales of goods exclusive of taxes.

ii. Dividend income on investment are accounted for when the right to receive the payment is established.

f. Inventories

i. Raw materials, Chemicals, Stores and spare parts ,packing materials are valued at cost.

ii. Stock in process in valued at raw material cost plus direct expense. iii. Finished goods are valued at lower of cost and net realizable value. iv. Stock of traded goods are valued at cost plus direct procurement expenses.

g. Investments

Investments are stated at cost.