Accounting Policies of Bafna Spinning Mill & Exports Ltd. Company

Mar 31, 2012

BASIS OF ACCOUNTING

The financial statements are prepared on the basis of historical cost convention and on accrual basis.

FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost and includes all the expenditure of Capital Nature.

Depreciation has been provided on WDV method in accordance with the rate specified under Schedule XIV of the Companies Act, 1956. Depreciation on additions during the year is provided on pro-rata basis with reference to the date of installation. However, no depreciation is provided during the year for building as it is under construction and plant is not put to use.

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Mar 31, 2011

BASIS OF ACCOUNTING

The financial statements are prepared on the basis of historical cost convention and on accrual basis.

FIXED ASSETS AND DEPRECIATION

Fixed Assets are stated at cost and includes all the expenditure ol Capital Nature.

Depreciation has been provided on SI,M in accordance with the rate specified under Schedule XIV of the Companies Act, 1956. Depreciation on additions during; the year is provided on pro-rata basis with reference to the date of installation.

RETIREMENT BENEFITS

Provident Fund & Gratuity is not applicable to the company.

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Mar 31, 2010

A. Basis of Accounting: The Accounts are prepared under the historical cost convention on accrued basis.

b. Fixed Assets: Fixed Assets includes all expenditure of capital nature and are stated at cost

Depreciation on fixed assets acquired/installed will be provided on written down value method at the rates prevailing at the time of acquisition/installation and assets acquired after the aforesaid date at the rates specified in Schedule XIV of the Companies Act, 1956 (as amended). However, no depreciation is provided during the year for Building as it is under construction and Plant is not put to use.

2. Preliminary Expenses shown in Balance Sheet under Miscellaneous Expenditure will be amortised from the year the Company commences commercial activity/production

3. Preoperative Expenditure pending Capitalisation will be allocated on completion of project.