Accounting Policies of Ridings Consulting Engineers India Ltd. Company

Mar 31, 2018

1 SIGNIFICANT ACCOUNTING POLICIES

i) Basis of preparation of Financial Statements

The financial statements are prepared under the historical cost convention on the basis of going concern with revenues recognized and expenses accounted on their accrual, including provisions/adjustments for committed obligations and amounts determined as payable or receivable during the year in accordance with normally accepted principles, the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013 as adopted consistently by the company. Accounting policies not specifically referred to otherwise are consistent with accepted accounting principles.

ii) Fixed Assets:

Fixed assets are stated at cost of acquisition and subsequent improvement thereto including tax, duties, freight and other incidental expenses related to acquisition and installation.

iii) Depreciation:

Depreciation in the accounts is charged on Written Down Method at the rates and in the manner prescribed by Schedule- II of the Companies Act, 2013

iv) Employee benefits

Provision for gratuity for the financial year 2017-18 is Rs 218,375.

v) Deferred tax

Deferred tax is accounted for by computing the tax effect of timing differences, which arise during the year and reverse in subsequent periods.

vi) Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection.

i. Rendering of Services and Supply of Goods:- Revenue is recognized after rendering of services, and after considering that th ere is no significant uncertainty exists regarding the amount of the consideration that will be derived from rendering the services.

ii. Other Income: - Other income is accounted on an accrual basis.

iii. The closing and opening WIP has been Rs 21,866,074 and Rs 36,285,800 respectively as per Management estimation.