Super Syncotex (India) Ltd. कंपली की लेखा नीति

Mar 31, 2009

(i) Inventory valuation

a) Stores & Spares At Cost

b) Dyes & Chemicals At Cost

c) Raw Materials At Cost

d) Finished Goods/completed Job Work At Cost or Market Price whichever is lower

e) Waste At Realisable Value

f)Stock-in-process(Own & Job) At Estimated Cost or Estimated realisable value whichever is less

(ii) Insurance Claims As and when assessed/realised

iii) Sales claims, refunds due from Government and statutory demand. As and when ascertained/paid

(iv) Bonus, Gratuity & Leave encashment On Cash Basis

(v) All other Incomes and Expenses are accounted for on accrual basis.

(vi) Fixed Assets are stated at cost. During the period of construction/installation of New Plant & Machinery, directly identifiable expenses are capitalised on the respective assets. Other preoperative expenses are capitalised proportionately on the basis of value of assets.

(vii) The Company has provided depreciation on straight lime method on the fixed assets acquired prior to 02.04.1987 at the rate prevailing at that time in view of the Circular No. 1/86 dated 21.05.1986 issued by Department of Company Affairs, Depreciation on the assets acquired and put to use on or after 02.04.1987 has been provided on straight line method on the basis of rates and manner specified in Schedule XIV of the Companies Act, 1956, as amended vide Notification No.GSR-756 (E) Dated 16th December, 1993 issued by the Depart ment of Company Affairs. As per practice prevailing in Textile Spinning Industry and Experts opinion, the Plant is categorised as continuous process plant. Accordingly, the company has provided depreciation on Plant & Machinery at the rates applicable for continuous Process Plant. The Company has adopted policy to provide depreciation upto 95% of the cost of assets. However the Company has not provided depreciation for the financial year 2006-07, 2007-08 and 2008-09.

(viii) CENVAT Credit entitlement is accounted for on purchase of goods and materials. Unutilised CENVAT is shown separately in Current Assets. Goods and materials lying In stock are shown net of CENVAT.

(ix) Investments are valued at cost of acquisition. Appreciation/Diminution in value of • investments is not being accounted for.

(x) Deferred Revenue Expenses pertaining to Premium on revision in Interest rate and expenses for increase the share capital are amortised over a period of ten years.

(xi) Foreign Exchange Transactions:

a) Export and Import transactions for which the documents are pending for collection/ negotiation, commission and other expenses relating to export payable In foreign currency at the year end are accounted for at the exchange rate prevailing at the year end. Foreign exchange fluctuation arising on actual realisation/ remittance is charged or credited to Profit & Loss Account in the year of realisation/remittance.

b) Against exports, indigenous raw materials are being utilised. The said raw materials are being replenished under duty free entitlement scheme of the Govt, of India. The cost of such raw materials are being accounted for at its import duty free prices. However there no such replenishment during the year. Exports made under DEPB Scheme, the DEPB entitlements are being credited to export benefit