Download Annual Report - Renata

3.5 Transactions with related parties:The Company has carried on transactions with related parties in the normal course of business.3.6 Reporting Period:Financial statements of the Company cover 1 (one) year from 01 January 2012 to 31 December 2012.3.7 Recognition of Property, Plant & Equipment and Depreciation:Property, Plant & Equipment are stated at cost less accumulated depreciation in accordance with BAS 16 "Property, Plant andEquipment." Cost represents cost of acquisition.No depreciation is charged on land and land development. Depreciation on all other fixed assets is charged on straight linemethod in amount sufficient to write off depreciable assets over their estimated useful life. Depreciation is charged for the fullyear on assets acquisitioned during the first half of the year while half year depreciation is charged on assets acquired duringthe second half of the year. The rates of depreciation are indicated in Note-5.Depreciation has been charged on farm overhead and administrative, marketing and distribution expenses proportionately.3.8 Inventories:Inventories comprise of parent stock, feed stock, medicine, feed ingredient, litter, generator fuel, and LP gas. All these arestated at cost and considered as realisable value. No due allowance for any obsolete or slow moving items have beenaccounted for.3.9 Trade and other Receivables:These are carried at original invoice amount. This is considered good and collectible.3.10 Current Account with Associates :These represent day-to-day transaction with Associates concerns. These are not long-term transaction. However, interestincome is earned from such transactions.3.11 Cash and Cash Equivalents:According to BAS-7 " Statement of Cash Flows ", Cash comprises cash in hand and demand deposits and, cash equivalentsare short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to aninsignificant risk of changes in value. BAS-1 "Presentation of Financial Statements" provides that Cash and Cash equivalentsare not restricted in use. Considering the provisions of BAS-I & BAS-7, cash in hand and bank balance have been consideredas cash and cash equivalents.Statement of Cash Flows is prepared principally in accordance with BAS-7 "Statement of Cash Flows" and the cash flow fromoperating activities has been presented under direct method.3.12 Trade and other Payables:Liabilities are recognised for amounts to be paid in future for goods and services received, whether or not billed by thesuppliers and service provider.3.13 Foreign Currency Translation:Transactions denominated in foreign currencies are translated into Bangladesh Taka and recorded at the exchange ratesruling on the date of transaction in accordance with BAS-21 "The Effects of Changes in Foreign Currency Rates."3.14 Turnover from Net Sales:Net sales comprise the invoice value of goods supplied by the company and consists of local sales of products.3.15 Revenue Recognition:91 •renata annual report 12