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Accounting Policies of Ritesh International Ltd. Company

Mar 31, 2015

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost o r realizable value whichever is lower.

d) Revenue Recognition

The sales are recognized on mercantile basis.

Job work was recognized at the time of raising the invoice in favour of Customer.

Income/Loss against Commodity dealing/Future trading of Shares is recognized at the closing point of the contract.

Profit/loss on dealing in shares at the time of delivery of shares or square up of the deal.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of the assessment.

Dividends from investments in shares are recognized in the statement of profit and loss at the time of receipt. Losses arising from retirement or gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.

e) Depreciation

Consequent to the enactment of Companies Act, 2013(the act), the company has computed depreciation with reference to the estimated economic lives of the fixed assets prescribed by the schedule II to the act. Previously, depreciation was calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on an accrual basis. Contribution to Provident Fund, Family Pension Scheme, ESI and Leave with Wages are accounted for on an accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments that are readily realizable are classified as current investments. All other investments are classified as long-term investments. Long-term investments and Current Investments are carried at cost plus incidental expenses, if any.Any reductions in the carrying amount and any reversals of such reductions are charged or credited to the Statement of Profit and Loss Profit or loss on sale of investments is determined on the basis of actual carrying amount of investment disposed of.

h) Accounting of Taxes on Income

No Provision for Income tax has been made keeping in view the losses during the year and according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets'" notified under the Companies (Accounting Standards) Rules, 2006.

j) Borrowing Costs:

Borrowing costs, attributable to the acquisition/ construction of qualifying assets are capitalized. Other borrowing costs are charged to the statement of Profit and loss Account.


Mar 31, 2014

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

The sales are recognized on mercantile basis.

Job work was recognized at the time of raising the invoice in favour of Customer.

Profit against Commodity dealing at the time of square up of the contract.

Profit/loss on shares at the time of delivery of shares or square up of the deal.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of the assessment.

e) Depreciation

Depreciation has been calculated son Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on an accrual basis.

Contribution to Provident Fund, Family Pension Scheme, ESI and Leave with Wages are accounted for on an accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

h) Accounting of Taxes on Income

No Provision for Income tax has been made keeping in view the losses during the year and according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets''" notified under the Companies (Accounting Standards) Rules, 2006.

j) Borrowing Costs:

Borrowing costs, attributable to the acquisition/ construction of qualifying assets are capitalized and the amount capitalized during the year is Rs. NIL(Previous Year Rs.1088948/-). Other borrowing costs are charged to the statement of Profit and loss Account.


Mar 31, 2013

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

The sales are recognized on mercantile basis.

Job work was recognized at the time of raising the invoice in favour of Customer.

Profit against Commodity dealing at the time of square up of the contract.

Profit/loss on shares at the time of delivery of shares or square up of the deal.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department.

Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of the assessment.

e) Depreciation

Depreciation has been calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on an accrual basis.

Contribution to Provident Fund, Family Pension Scheme, ESI and Leave with Wages are accounted for on an accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

h) Accounting of Taxes on Income

No Provision for Income tax has been made keeping in view the losses during the year and according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits. In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving a substantial degree of estimation in measurement are recognized when there is a present obligation as a result of a past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets''" notified under the Companies (Accounting Standards) Rules, 2006. j) Borrowing Costs:

Borrowing costs, attributable to the acquisition/ construction of qualifying assets are capitalized and the amount capitalized during the year is Rs. 1088948/- (Previous Year NIL). Other borrowing costs are charged to the statement of Profit and loss Account.


Mar 31, 2012

A) Basis of Accounting

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company.

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in- process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

Sale is recognized on mercantile basis.

Job work is recognized at the time of raising the invoice in favour of Customer.

Profit against commodity dealing at the time of square up to the contract.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of assessment.

e) Depreciation

Depreciation has been calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on accrual basis.

Contribution to Provident Fund, Family Pension Scheme and ESI and Leave with wages are accounted for on accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

h) Accounting of Taxes on Income

Provision for Income Tax has been made according to the provisions of Income tax Act, 1961.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income11 by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the current. Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

i) Provisions, Contingent Liabilities and Contingent Assets:

(i) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Assets.

(ii) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets'" notified under the Companies (Accounting Standards) Rules, 2006.

j) Borrowing Cost:

Borrowing costs, attributable to the acquisition/construction of qualifying assets, are capitalized and the amount capitalized during the year is NIL (Previous Year NIL). Other borrowing costs are charged to statement of Profit and loss.

The Working Capital facility secured by hypothecation of entire present and future movable assets of the company such as stocks of raw material, work in process, finished goods, stores & book debts etc. Overdraft facility also guaranteed by promoter directors of the company.

Trade Payable includes Rs. NIL (Previous year Rs. NIL) due to creditors registered with Micro, Small and Medium Enterprises Development Act, 2006(MSME).

No interest is paid/payable during the year to Micro, Small and Medium Enterprises.

The above information has been determined to the extent such parties could be identified on the basis of information available with the Company regarding the status of suppliers under the MSME.


Mar 31, 2010

A) Accounting Convention

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company

b) Fixed Assets

All fixed assets are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of freight, duties, taxes and other incidental expenses.

c) Inventories

The inventories have been determined on the basis of FIFO method and basis of determining cost for various categories of inventories are Raw Material at cost price, Finished Goods at market price, Work-in-process at estimated cost and Stores & Spares at cost or realizable value whichever is lower.

d) Revenue Recognition

Sale is recognized on mercantile basis.

Vat tax liabilities are accounted for on the basis of Vat tax returns filed by the Company with the department. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of assessment.

e) Depreciation

Depreciation has been calculated on Straight Line Method as per Companies Act, 1956 at the rates of depreciation prevalent at the time of acquisition of assets.

f) Retirement Benefits

Gratuity liability has been accounted for on accrual basis. Contribution to Provident Fund, Family Pension

Scheme and ESI are accounted for on accrual basis and charged to Profit & Loss Account accordingly.

g) Investments

Investments are valued at cost plus incidental expenses, if any.

i) Accounting of Taxes on Income

No provision for Income tax has been made under Income tax Act, 1961, due to carried forward of losses.

Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting for Taxes on Income" by the Institute of Chartered Accountants of India which is mandatory in nature, the company has reviewed Deferred Taxes which result from the timing difference between the Book Profits and Tax Profits.

In consideration of prudence as set out in paragraph 15 to 18 of AS-22, considering the accumulated losses, sufficient future taxable income cannot be estimated with virtual or reasonable certainty. The company therefore has not recognized Net Deferred Tax Assets in the Financial Statement for the Currenty Further in accordance with paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be reassessed at the end of each Balance Sheet date hereafter and accordingly due recognition shall be given in the Financial Statements.

 
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