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Accounting Policies of Richirich Inventures Ltd. Company

Mar 31, 2014

A. ACCOUNTING CONCEPTS:

The financial statements have been prepared to comply in all material aspects with the notified Accounting Standard by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements are prepared and presented on the basis of generally accepted accounting principles and historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. REVENUE RECOGNISTION:

Finance Income is recognized on mercantile basis, when the income is accrued and due to the Company. Dividend income is recognized on receipt basis.

C. FIXED ASSETS:

The fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

D. DEPRECIATION

Depreciation on Fixed the assets are provided on the straight line method at the rates specified in Schedule XIV of the Companies Act, 1956 and Web site (included in Computer Software) is amortized at the rate of 16.21% p.a. under straight line method

E. INVESTMENTS

Investments are valued at cost.

F. RETIREMENT BENEFITS:

Gratuity to employees will be accounted for on cash basis.

In respect of provident fund and employees state insurance scheme contribution is not applicable to the company.

G. TAXATION

Tax Expense comprises of current and deferred tax. Current tax is determined as the amount of tax payable in respect of taxable income for the financial year ended 31st March 2014. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets, on timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more period.


Mar 31, 2013

A. ACCOUNTING CONCEPTS:

The financial statements have been prepared to comply in all material aspects with the notified Accounting Standard by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements are prepared and presented on the basis of generally accepted accounting principles and historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. REVENUE RECOGNITION:

Finance Income is recognized on mercantile basis, when the income is accrued and due to the Company. Dividend income is recognized on receipt basis.

C. FIXED ASSETS:

The fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

C. DEPRECIATION

Depreciation on Fixed the assets are provided on the straight line method at the rates specified in Schedule XIV of Companies Act, 1956 and Web site (included in Computer Software) is amortized at the rate of 16.21% p.a. under straight line value method

E.INVESTMENTS

Investments are valued at cost.

F. RETIREMENT BENEFITS:

Gratuity to employees will be accounted for on cash basis.

In respect of provident fund and employees state insurance scheme contribution is not applicable to the company.

G. TAXATION

Tax Expense comprises of current and deferred tax. Current tax is determined as the amount of tax payable in respect of taxable income for the financial year ended 31st March 2013. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets, on timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more period.


Mar 31, 2012

A. ACCOUNTING CONCEPTS:

The financial statements have been prepared to comply in all material aspects with the notified Accounting Standard by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements are prepared and presented on the basis of generally accepted accounting principles and historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. REVENUE RECOGNISTION:

Finance Income is recognized on mercantile basis, when the income is accrued and due to the Company. Dividend income is recognized on receipt basis.

C. FIXED ASSETS:

The fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

C. DEPRECIATION

Depreciation is provided on the straight line method at the rates prescribed in Schedule XIV of Companies Act, 1956 and Web site (included in Computer Software) is amortized at the rate of 16.21% p.a. under straight line value method

E.INVESTMENTS

Investments are valued at cost.

F. RETIREMENT BENEFITS:

Gratuity to employees will be accounted for on cash basis.

In respect of provident fund and employees state insurance scheme contribution is not applicable to the company.

G. TAXATION

Tax Expense comprises of current and deferred tax. Current tax is determined as the amount of tax payable in respect of taxable income for the financial year ended 31st March 2012. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax assets, on timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more period.


Mar 31, 2011

I. BASIS OF ACCOUNTING:

The financial statements have been prepared to comply in all material aspects with the notified Accounting Standard by Companies Accounting Standards Rules, 2006 and the relevant provisions of the companies Act, 1956. The financial statements are prepared and presented on the basis of generally accepted accounting principles and historical cost convention on accrual basis. The accounting policies have been consistently app lied by the Company and are consistent with those used in the previous year.

ii. REVENUE RECOGNISTION:

Finance Income is recognized on mercantile basis, when the income is accrued and due to the Company.

Deposit received from Franchisees were forfeited during the year and recognized as income since the same were no longer payable as approved and confirmed by Board of Directors.

Dividend income is recognized on receipt basis.

iii. FIXED ASSETS AND DEPRECIATION :

a) Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation is provided on the straight line method at the rates prescribed in Schedule XIV of Companies Act, 1956 and Web site (included in Computer Software) is amortized at the rate of 16.21% p.a. under straight line value method.

iv. INVESTMENTS

Investments are valued at cost.

v. RETIREMENT BENEFITS :

Gratuity to employees will be accounted for on cash basis.

In respect of provident fund and employees state insurance scheme contribution is not applicable to the company.

vi. TAXES ON INCOME :

Tax Expense comp rises of current and deferred tax. Current income tax is measured at the amount expected to be p aid to the tax authorities in accordance with the Indian Income Tax Act. Deferred Income taxes reflects the imp act of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. The comp any has accounted for deferred tax for the timing differences between the Tax profits and book profits applying the existing tax rates. However the Company has not created Deferred Tax Assets in view of prudence concept.


Mar 31, 2010

I. BASIS OF ACCOUNTING:

The financial statements have been prepared to comply in all material aspects with the notified Accounting Standard by Companies Accounting Standards Rules, 2006 and the relevant provisions of the companies Act, 1956. The financial statements are prepared and presented on the basis of generally accepted accounting principles and historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

ii. REVENUE RECOGNISTION:

Finance Income is recognized on mercantile basis, when the income is accrued and due to the Company. Deposit received from Franchisees were forfeited during the year and recognized as income since the same were no longer payable as approved and confirmed by Board of Directors. Dividend income is recognized on receipt basis.

iii. FIXED ASSETS AND DEPRECIATION :

a) Fixed assets are stated at cost, less accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

b) Depreciation is provided on. the straight line method at the rates prescribed in Schedule XIV of Companies Act, 1956 and Web site (included in Computer Software) is amortized at the rate of 16.21% p.a. under straight line value method.

iv. INVESTMENTS

Investments are valued at cost.

v. RETIREMENT BENEFITS:

Gratuity to employees will be accounted for on cash basis. In respect of provident fund and employees state insurance scheme contribution is not applicable to the company.

vi. TAXES ON INCOME :

Tax Expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred Income taxes reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. The company has accounted for deferred tax for the timing differences between the Tax profits and book profits applying the existing tax rates. However the Company has not created Deferred Tax Assets in view of prudence concept.