South East Agro Industries Ltd. कंपली की लेखा नीति

Mar 31, 2013

A). Basis of Accounting.

The accounts of the Company are prepared on the basis of going concern concept under historical cost convention on accrual basis following mercantile system of accounting. Accordingly the income and expenditure are recognized on accrual basis. These statements are in accordance with the requirements of companies Act, 1956 and comply in all material aspects with the Accounting Standards referred to in sub section (3C) of Section 211 of the Act.

b). Fixed Assets and Depreciation.

Fixed Assets are stated on historical cost less accumulated depreciation Depreciation has been provided on WDV method in the manner and at the rates as prescribed under schedule-XIV to the Companies Act, 1956.

c). Inventories.

Inventories are accounted on First-In-First-Out basis and are valued as follows:-

I. Raw Material, Stores & Spares are valued at cost or Net Realizable Value whichever is lower.

II. Finished Goods are valued at cost or net realizable value whichever is lower.

III. Work in progress are valued at material cost plus appropriate labour and manufacturing overhead to the extent they are incurred

d). Foreign Currency Transactions

I. Value of Export Sales are accounted for in Indian Rupees at the rate of exchange prevailing on the date of shipment and difference in value on actual realization due to fluctuation are adjusted in Profit & Loss Account

II. Value of Foreign Currency Transactions remaining unsettled at the end of year is translated at the contracted rates when covered by foreign contracts and at year end rates in all other cases.

e). Deferred Tax Assets/Liability

On the basis of the completed Income Tax Assessment for the AY 2008-09, and rectification u/s 154 for the A.Y 2006-07, the carry forward business loss and depreciation are allowable under explanation 6(i) and (ii) of section 10B, for the A.Y 2001-02 onwards Therefore such busines&Joss and depreciation are allowed to be carried forward or setoff as per section 72(i) or 74(3) of the Income Tax Act, 1961. However, the management is of the opinion that the deferred tax assets in this regard, cannot be accounted this year, in view of the continuing losses ,