UBE Industries Ltd. कंपली की लेखा नीति

Mar 31, 2012

1. ACCOUNTING CONVENTION

The financial Statements are prepared under historical cost convention and on accrual basis.

2. REVENUE RECOGNITION

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis expect in the following:

Income recognition on Turnkey projects (Engineering – Procurement and construction contracts). Engineering Projects (SPMS) involving installation of own manufactured goods and/or bought materials, components, equipments, erection and commissioning are recognized as revenue in accordance and the billing schedule agreed between the respective customers and the company and are based on percentage of completion method as applicable.

Income recognized on welding consumables (Welding Division) or based on processed in the plant and sold in the market as applicable.

Income reorganization on Consultancy Contracts and infrastructure projects are recognized as revenue in accordance and the billing schedule agreed between the respective customers of the company and or based on percentage of completion method as applicable.

3. FIXED ASSETS

Fixed Assets are stated at cost of acquisition including freight, duties and other incidental expenses.

Since the entire pro-operative expenditure pertaining to Automotive Division, no commercial activity have started, hence no capitalization done the same.

4. DEPRECIATION

As per information and explanations given to us, Depreciation has been provided for the year, Depreciation was provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

5. STOCK IN TRADE

As per information and explanations given to us, the closing stocks pertain to the works completed but not handed over to the customers as on the last day of the accounting period and the same are valued at cost.

6. Provisions against doubtful debts are inclusive of the debts, which have arisen on account of the indemnity bonds executed by individuals to the company.

7. INVESTMENTS

As per information and explanations given to us, Investments (Un-Quoted) intended to be held for long term are treated as long-term investments and are valued at historical cost of acquisition. Provisions for decline in value of Long Term Investments in the nature of permanent, if any, is not made in the books of accounts.

8. Accounting Policies not specifically referred to are consistent with the generally accepted accounting practices and accounting standards under section 211 of the Companies Act, 1956.

9. RETIREMENT BENEFITS

Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability, Provident Fund and E.S.I as no employee is eligible for the same. Leave Encashment shall be accounted on cash basis.

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Mar 31, 2009

1. ACCOUNTING CONVENTION

The financial Statements are prepared under historical cost convention and on accrual basis.

2. REVENUE RECOGNITION

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis expect in the following:

Income recognition on Turnkey projects (Engineering - Procurement and construction contracts). Engineering Projects (SPMS) involving installation of own manufactured goods and / or bought materials, components, equipments, erection and commissioning are recognized as revenue in accordance and the billing schedule agreed between the respective customers and the company and are based on percentage of completion method as applicable. Income reorganization on Consultancy Contracts are recognised as revenue in accordance and the billing schedule agreed between the respective customers of the company and or based on percentage of completion method as applicable.

3. FIXED ASSETS

Fixed Assets are stated at cost of acquisition including freight, duties and other incidental expenses.

4. DEPRECIATION

As per information and explanations given to us, Depreciation has not been provided for the year since the company does not have the • commercial operations in the welding, project constrictions contracts and engineering divisions, for which the fixed assets were acquired. Up to the Financial year 1995-1996, depreciation was provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

5. STOCK IN TRADE

As per information and explanations given to us, the closing stocks pertain to the works completed but not handed over to the customers as on the last day of the accounting period and the same are valued at cost.

6. Provisions against doubtful debts are inclusive of the debts, which have arisen on account of the indemnity bonds executed by individuals to the company.

7. INVESTMENTS

As per information and explanations given to us, Investments (Un- Quoted) intended to be held for long term are treated as long-term investments and are valued at historical cost of acquisition. Provisions for decline in value of Long Term Investments in the nature of permanent, if any, is not made in the books of accounts.

8. Accounting Policies not specifically referred to are consistent with the generally accepted accounting practices and accounting standards under section 211 of the Companies Act, 1956.

9. RETIREMENT BENEFITS

Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability, Provident Fund and E.S.I as no employee is eligible for the same. Leave Encashment shall be accounted on cash basis.