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Accounting Policies of Risa International Ltd. Company

Mar 31, 2015

A. Basis of Preparation of Financial Statements

The financial statements have been prepared and presented under the historical cost convention on accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles (GAAP) in India. GAAP includes Accounting Standards (AS) notified by the Government of India under Section 133 of the Companies Act, 2013, provisions of the Companies Act, 2013, pronouncements of Institute of Chartered Accountants of India and guidelines issued by Securities and Exchange Board of India (SEBI). The Company has presented financial statements as per format prescribed by Revised Schedule III, notified under the Companies Act, 2013, issued by Ministry of Corporate Affairs. Except where otherwise stated, the accounting policies are consistently applied.

b. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reported Period. Difference between the actual results and estimates are recognized in the Period in which the results and estimates are recognized in the Period in which the results are known or materialize.

c. Fixed Assets

- Tangible fixed assets are stated at cost of acquisition or construction less accumulated depreciation. The cost of fixed asset includes non-refundable taxes & levies, freight and other incidental expenses related to the acquisition and installation of the respective assets. Borrowing cost attributable to acquisition or construction of qualifying fixed assets is capitalized to respective assets when the time taken to put the assets to use is substantial.

- Depreciation on fixed assets is provided on Written Down Value on the basis of the depreciation rates prescribed in Schedule II of the Companies Act, 2013 or based on useful life of the asset as estimated by the management, whichever is higher.

d. Inventories

Inventories are valued at cost arrived at FIFO basis or net realizable value whichever is lower.

e. Revenue Recognition

Incomes/Expenses/Revenues are accounted for on accrual basis in accordance with the Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India except in the case of compensation yet to be received will be accounted for on case basis at the time of actual receipt.

f. Foreign Currency Transaction

a) Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities are translated at year-end exchange rates. Exchange difference arising on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise.

b) In respect of forward exchange contracts the difference between the forward rate and the exchange rate at the inception of the contract is recognized as income or expense over the period of the contract.

c) Gains or losses on cancellation / settlement of forward exchange contracts are recognized as income or expense.

g. Investments :

Long Term Investments are stated at cost except that there is permanent diminution in value of the said investment as required by AS-13.

h. Earnings Per Share

Earnings per Share has been computed in accordance with Accounting Standard 20 - "Earning Per Share" by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The earnings considered for ascertaining the company's Earnings per Share is the net profit after tax.

I. Accounting for Taxes :

Provision for current tax is made for the tax liability payable on taxable income after considering the allowances, deductions and exemptions and disallowances if any determined in accordance with the prevailing tax laws.

Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. In the case of unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only to the extent there is virtual certainty or realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each Balance Sheet date to reassess realization.


Mar 31, 2012

A) System of Accounting:

The Company follows Mercantile System of Accounting & recognizes Income & Expenditure on Accrual basis. The Accounts are prepared on historical cost basis as a going concern & are with generally Accepted Accounting Principles & applicable Accounting Standards unless otherwise stated and the provisions of the Companies Act, 1956.

b) Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the years presented. Actual results could differ from those estimates.

c) Cash Flow Statements :

Cash flow statement of the company reports cash flows during the period classified by operating, investing and financial activities. Cash flows arising from transactions in a foreign currency are recorded in company's reporting currency i. E. INR by applying the exchange rate at the date of the cash flow statement.

d) Revenue Recognition:

Income / Expenses/ Revenues are accounted for on accrual basis in accordance with the Accounting Standard (AS-9). Accordingly, wherever there are uncertainties in the ascertainment / realization of Income, the same is accounted for if it is in material in nature.

e) Segment Reporting :

Segment Revenue, Results and Capital Employed figures include the respective amounts identifiable to each of the primary Segments including geographical. Other Unallocable expenditure if any includes expenses incurred at corporate level, which relates to corporate as a whole.

f) Taxes of Income :

Provision for current tax is made for the tax liability payable on taxable income after considering the allowances, deductions and exemptions and disallowances if any determined in accordance with the prevailing tax laws.

g) Earnings Per Share :

Earnings per Share has been computed in according with Accounting Standard 20 - "Earning Per Share". The earnings considered for ascertaining the company's EPS is the net profit after tax.

k) Provisions, Contingent Liabilities & Contingent Assets :

The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the outflow.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the company. Contingent Assets are neither recognized nor disclosed in the Financial Statements as a matter of prudence.


Mar 31, 2010

ACCOUNTING CONCEPTS

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as going concern.

REVENUE RECOGNITION

Revenue is recognized when no significant uncertainty exists regarding the amount of consideration and it is not unreasonable to expect ultimate collections.

FIXED ASSETS

Fixed Assets are stated at their cost of acquisition or construction less accumulates depreciation.

DEPRECIATION

Depreciation of fixed assets is provided under the rates specified in the Schedule XIV to the Companies Act, 1956 as amended vide notification GSR No. 756 (E) dated 16.12.93 of Govt. of India.

INVESTMENTS

Investments are stated at cost.

INVENTORIES ARE VALUED AS FOLLOWS

i. Raw Material : Raw Material are valued at cost.

ii. Finished Goods: Finished goods are valued at cost or net realizable value whichever is lower. SALES / TURNOVER Sales/Turnover if goods are recognized on dispatch to customers.

TREATMENT IF RETIREMENT BENEFITS

Retirement benefits are recorded only on the crystallization of liability.

MISCELLANEOUS EXPENDITURE

Preliminary & Public issue Expenses are being authorized equally in a period of 10 years installments


Mar 31, 2009

ACCOUNTING CONCEPTS

The company follows the mercantile system of accounting, recognizing income and expenditure on accrual basis. The accounts are prepared on historical cost basis and as going concern.

REVENUE RECOGNITION

Revenue is recognized when no significant uncertainty exists regarding the amount of consideration and it is not unreasonable to expect ultimate collections.

FIXED ASSETS

Fixed Assets are stated at their cost of acquisition or construction less accumulates depreciation.

DEPRECIATION

Depreciation of fixed assets is provided under the rates specified in the Schedule XIV to the Companies Act, 1956 as amended vide notification GSR No. 756 (E) dated 16.12.93 of Govt, of India

INVESTMENTS

Investments are stated at cost.

INVENTORIES ARE VALUED AS FOLLOWS

Raw Material: Raw Material are valued at cost.

Finished Goods: Finished goods are valued at cost or net realizable value whichever is lower.

SALES/TURNOVER

Sales/Turnover if goods are recognized on dispatch to customers.

TREATMENT IF RETIREMENT BENEFITS

Retirement benefits are recorded only on the crystallization of liability.

MISCELLANEOUS EXPENDITURE

Preliminary & Public issue Expenses are being authorized equally in a period of 10 years installments

 
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