Accounting Policies of Inlac Granston Ltd. Company

Mar 31, 2012

I. Accounting Concept:

Accounts are maintained on mercantile basis in accordance with the generally accepted accounting principles.

ii. Fixed Assets:

The gross block of fixed assets is shown at cost which includes taxes, duties and other identifiable direct expenses and interest on borrowings attributable to acquisition of fixed assets up to the date, the asset is put to use and start of commercial production.

iii. Depreciation:

The Company provides depreciation on all the Fixed Assets on straight line method at the rates specified in the Schedule XIV to the Companies Act, 1956.

iv. Inventories:

Inventories are valued as under:

i. Raw materials/Consumables : At cost

ii. Work in Process : At estimated cost

iii. Finished Goods : At cost or market value whichever is lower

iv. Packing material : At cost

v. Foreign currency transactions:

Foreign currency transactions are accounted for at exchange rates prevailing on the date the transactions take place. The difference between the actual amounts received/paid and the amount accounted for is charged to the Profit & Loss Account.

vi. Contingent Liabilities:

Contingent liabilities are not provided for and are disclosed separately by way of notes.

vii. Other accounting policies:

These the consistent with the generally accepted accounting policy.