Integrated Rubian Exports Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1. Basis of Accounting:

The Accounts have been prepared to comply in all materials aspects with applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accounts of India and the Accounting Standards referred to in Section 211 (3 C) of the Companies Act, 1956. Accounting policies not specifically referred to otherwise are consistent and in consonant with generally accepted accounting principles followed by the company.

2. Fixed Assets:

Fixed Assets are stated at cost of acquisition and related expenditure. With regard to assets acquired under foreign currency loan, the cost of assets includes translation loss on foreign currency loan. In respect of assets acquired under hire purchase scheme, the costs of assets are capitalized and the finance charges pertaining to the year are charges to revenue.

3. Depreciation:

Depreciation on fixed assets except land has been provided on straight-line method on a pro-rata basis at the rates prescribed in Schedule XIV to the Companies Act, 1956, upto March 31, 2003. No depreciation has been provided since 2003-04 onwards.

4. Inventories:

Inventories are valued at Cost or Net Realizable Value whichever is lower

5. Investments:

Investments which were stated at cost of acquisition at the beginning of the year has been disposed and the loss on disposal has been taken to income statement.

6. Subsidy from MPEDA:

The subsidy received from MPEDA has been amortized and credited to Profit and Loss Account over the useful life of the respective assets.

7. Revenue/Expenses Recognition:

As the company is not in operation there was no Income accrued during the year. Expenditure accruing in the financial year and ascertainable with reasonable accuracy is provided.

8. Retirement Benefits:

(a) Gratuity is provided as per the payment of Gratuity Act, 1972 on accrual basis for all the eligible employees up to 31st March, 2002. No separate fund has been set up or insurance coverage taken to cover the liability. No gratuity has been provided after March, 31, 2002.

(b) As there was no workers working, no contribution to the Provident Fund is made during the year.

9. Intangible Assets:

Intangible assets are recognized in the accounts only if it is probable that the future economic benefits that are attributable to the assets will flow into the Company and cost of the assets can be measured reliably. All other intangible assets are written off to the Profit & Loss Account.

10.Taxes on income:

There is no timing difference for the measurement of Deferred Tax Asset/ Deferred Tax Liability, the Accounting Standard 22 "Accounting For Taxes on Income" issued by the Institute of Chartered Accounts of India has no applicability to the company in the current year.