Accounting Policies of Doon Valley Rice Ltd. Company

Mar 31, 2011

1. Basis of accounting

i) The accounts have been prepared on the historical cost basis and on the principles of going concern.

ii) Accounting Policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets

Fixed assets are stated at cost less depreciation, cost comprises purchase price and any attributable cost of bringing the asset to working condition for its intended use.

Whenever events indicates that the assets may be impaired, the assets are subject to a test of recoverability based on estimates future cash flows arising from continuing use of assets and its ultimate disposal. A provision for impairment loss is recognised, where it is probable that the carrying value of an asset exceeds the amount to be recovered through use or sale of assets.

3. Depreciation

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions during the year is provided on pro rata basis from the date of addition.

4. Inventories

Inventories are valued at the lower of cost & estimated net realizable value and W.I.P at estimated cost.

5. Revenue Recognition

All expenses and income to the extend considered payable and receivable respectively unless specifically stated to be otherwise are accounted for on accrual basis.

6. Taxes on Income

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognised, subject to the consideration of prudence in respect of Deferred Tax Assets, on timing differences, being the difference between taxable income and accounting income that originate from one period and are capable of being reversal in one or more subsequent periods.

7. Sales are recognised on shipment or dispatch to customers.

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Mar 31, 2010

1. Basis of accounting

i) The accounts have been prepared on the historical cost basis and on the principles of going concern.

ii) Accounting Policies unless specifically stated to be otherwise, are consistent and are in consonance with generally accepted accounting principles.

2. Fixed Assets

Fixed assets are stated at cost less depreciation, cost comprises purchase price and any attributable cost of bringing the asset to working condition for its intended use.

Whenever events indicates that the assets may be impaired, the assets are subject to a test of recoverability based on estimates future cash flows arising from continuing use of assets and its ultimate disposal. A provision for impairment loss is recognised, where it is probable that the carrying value of an asset exceeds the amount to be recovered through use or sale of assets.

3. Depreciation

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions during the year is provided on pro rata basis from the date of addition.

4. Inventories

Inventories are valued at the lower of cost & estimated net realizable value and W.I.P at estimated cost.

5. Revenue Recognition

All expenses and income to the extend considered payable and receivable respectively unless specifically stated to be otherwise are accounted for on accrual basis.

6. TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognised, subject to the consideration of prudence in respect of Deferred Tax Assets, on timing differences, being the difference between taxable incomes and accounting income that originate from one period and are capable of being reversal in one or more subsequent periods.

7. Sales are recognised on shipment or dispatch to customers.