Accounting Policies of Bee Electronic Machines Ltd. Company

Mar 31, 2014

A) Basis of accounting

Mercantile system of accounting Is followed except in case of gratuity, medical reimbursement, encashment of leave salary, leave travel allowances to employees, sales tax refund, and commission on sale of machines, which are treated on cash basis.

B) Fixed Assets

i) fixed assets are stated at cost of acquisition or construction less depreciation. Cost Comprise the purchase price and other attributable costs including attributable to Construction. Also pre- operative expenditure incurred upto the date of commencement of production is capitalized.

i) Depreciation On fixed assets is being provided in respect of all the assets on Straight Line Method at the rates prescribed in schedule XIV of the Companies Act, 1956. In respect of assets purchased prior to 01.04.1988 the SLM rate was fixed on the basis of Circular No. 01.01.1986ZCLV dated 21.5.1986 and depreciation is being charged accortfingly. Leasehold lands are amortized over the lease period. Assets below Rs. 5000/- are depreciated 100% irrespective of their period of use.

C) Investments

Investments are valued at cost of acquisition.

D) Inventories

Valuation of inventories is made as under

I) Raw materials, spares and consumable : at cost

I) Work-in progress : at estimated cost of production

i) finished goods: at lower of cost or net realizable value.

D) Foreign exchange transactions

i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction.

ii) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except on those relating to the acquisition of fixed assets which are adjusted to the carrying amount of such assets.

F) Revenue recognition

i) Sale of goods is recognized on rfispatch or bin to customers. Sales are net of sales return. Sale includes amounts recovered / recoverable towards excise duty and sales tax.

ii) Revenue from services rendered Is recognized on completion of the Job / time proportion basis and includes service'tax tiiereon.

iii) Interest income is recognized on a time proportion basis.

G) Retirement benefits

Retirement benefits to employees are provided for by payment to provident and superannuation funds. The periodic contribution to funds is charged against revenue,

H) Research and Development expenses .

Research and Development expenses are charged to revenue in the year in which they are incurred. Capital expenditure on research and development assets is included in fixed assets and depreciation is provided for at applicable rates.

0) Costs of purchases include direct expenses incurred there on like Freight, Custom Duty, Clearing and Forwarding charges etc.

J) Contingent liabilities are not provided for but ere disclosed by way of notes to accounts.

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Mar 31, 2010

A) Basis of accounting

Mercantile system of accounting is followed except in case of gratuity, medical reimbursement, encashment of leave salary, leave travel allowances to employees, sales tax refund, and commission on sale of machines, which are treated on cash basis.

B) Fixed Assets

i) Fixed assets are stated at cost of acquisition or construction less depreciation. Cost Comprise the purchase price and other attributable costs including attributable to Construction. Also pre- operative expenditure incurred upto the date of commencement of production is capitalized.

ii) Depreciation on fixed assets is being provided in respect of all the assets on Straight Line Method at the rates prescribed in schedule XIV of the Companies Act, 1956. In respect of assets purchased prior to 01.04.1988 the SLM rate was fixed on the basis of Circular No. 01.01.19867CLV dated 21.5.1986 and depredatkm is being charged accordingly..Leasehold lands are amortized over the lease period. Assets below Rs. 5000/- are depreciated 100% irrespective of their period of use.

C) Investments

Investments are valued at cost of acquisition.

D) Inventories

Valuation of inventories are made as under

i) Raw materials, spares and consumable: at cost

ii) Work-in progress : at estimated cost of production

ii) Finished goods: at lower of cost or net realizable value.

E) Foreign exchange transactions

i) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction.

ii) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the profit and loss account except on those relating to the acquisition of fixed assets which are adjusted to the carrying amount of such assets.

F) Revenue recognition

i) Sale of goods is recognized on dispatch or bill to customers. Sales are net of sales return arid includes amounts recovered / recoverable towards excise duty and sales tax.

ii) Revenue from services rendered are recognized on completion of the Job / time proportion basis.

iii) Interest income is recognized on a time proportion basis.

G) Retirement benefits

Retirement benefits to employees are provided for by payment to provident and superannuation funds. The periodic contribution to funds is charged against revenue.

H) Research and Development expenses

Research and Development expenses are charged to revenue in the year in which they are incurred. Capital expenditure on research and development assets is included in fixed assets and depreciation is provided for at applicable rates.

I) Costs of purchases include direct expenses incurred there on like Freight, Custom Duty, Clearing and Forwarding charges etc.

J) Contingent liabilities are not provided for but are disclosed by way of notes to accounts.