Accounting Policies of Sugam Agro-Tech Ltd. Company

Mar 31, 2011

1. BASIS OF ACCOUNTING:

The financial statements are prepared on accrual basis and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS'.

Fixed Assets are recorded at cost of acquisition inclusive of freight, duties and taxes and incidental expenses related to acquisition.

3. CLOSING STOCK:

Raw Materials, Packing materials, stores, spares and consumables are valued at cost and processed goods /work-in-progress are valued at cost or realizable value whichever is less.

4. FOREIGN CURRENCY TRANSACTIONS:

(a) The original cost of fixed assets acquired through foreign currency loan is to be adjusted for any change in liability arising out of expressing the outstanding foreign currency loan at the rate of exchange prevailing on the date of balance sheet

(b) The sales / purchases are accounted on the basis of exchange rate as on the date of transaction. Adjustments are made for any variations in sale proceeds / payments for purchases on converting Into Indian currency upon actual receipt / payment

5. DEPRECIATION:

Depreciation on Fixed Assets has been calculated on Straight-line method at the rates given in Schedule XIV of the Companies Act 19S6.

6. MISCELLANIOUS EXPENDITURE:

Preliminary and share Issue expenditure will be written off over a period of 10 years from the date of commencement of commercial production.

7. RETIREMENT BENEFIT TO EMPLOYEES:

Gratuity and other retirement benefits are accounted on accrual basis.

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Mar 31, 2010

1. BASIS OF ACCOUNTING:

The financial statements are prepared on accrual basis and are in accordance with the requirements of the Companies Act, 1956.

2. FIXED ASSETS:

Fixed Assets are recorded at cost of acquisition inclusive of freight, duties and taxes and incidental expenses related to acquisition.

3. CLOSING STOCK:

Raw Materials, Packing materials, stores, spares and consumables are valued at cost and processed goods / work-in-progress are valued at cost or realizable value whichever is less.

4. FOREIGN CURRENCY TRANSACTIONS:

(a) The original cost of fixed assets acquired through foreign currency ban is to be adjusted for any change in liability arising out of expressing the outstanding foreign currency loan at the rate of exchange prevailing on the date of balance sheet

(b) The sales /purchases are accounted on the basis of exchange rate as on the date of transaction. Adjustments are made for any variations in sale proceeds / payments for purchases on converting into Indian currency upon actual receipt / payment

5. DEPRECIATION:

Depreciation on Fixed Assets has been calculated on Straight-line method at the rates given in Schedule XIV of the Companies Act 1956.

6. MISCELLAMOUS EXPENDITURE:

Preliminary and share issue expenditure win be written off over a period of 10 years from the date of commencement of commercial production.

7. RETIREMENT BENEFIT TO EMPLOYEES.

Gratuity and other retirement benefits are accounted on accrual basis.