Accounting Policies of Ajwa Fun World & Resorts Ltd. Company

Mar 31, 2014

1 The financial statements of the Company are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles, Accounting standards notified under Section 211(3C) of the Companies Act, 1956 read with the General Circular 15/2013 and in accordance with the accountingprinciples generally accepted in india and the relevant provisions thereof.

2 Use of estimates

The preparation of the financial statements is conformity with Indian GAAP requires the management to make estimates and assumption considered in the reported amount of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management belives that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual and the estimates are recognized in the periods in which the results are known / materialize.

3 Inventories

Inventories of stores, beverages & eatables are valued at cost. Cost is arrived at by following Weighted Average method of accounting.

4 Cash and Cash equivalents (for purpose of Cash Flow Statement)

Cash comprises Cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in Value.

5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (Loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

6 Depreciation and amortization

Depreciation on Fixed assets is provided on the Written down Value Method (W.D.V.), at the rates specified in Schedule XIV to the Companies Act, 1956, as amended up to the date of Balance Sheet. Fixed Assets individually costing rupees five thousand or less are depriciated 100% over a period of one year.

Depreciation on Fixed Assets, for which no rates have been specified in Schedule XIV to the Companies Act, 1956, is provided on the Written down Value Method at the rates at which the assets are depreciated over its estimated useful life.

Depreciation is Provided on pro-rata basis from the month in which assets have been put to use and up to the date on which assets have been disposed, discarded or sold.

7 Revenue recognition

Sale / Income from Operations

Parks Income is accounted on accrual basis i.e date of visit of park is the date of reckoning the income however in the case of the Membership for a specified period, the income has been treated as accrued proportionateley on the basis of span of period of membership. Also in the case of life membership deposits, the income is recognized by spreading deposit over a period of ten years.

Income from the services

Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except employee''s retirement benefits, which are accounted as and when actually paid.

8 Tangible fixed assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost includes pre-Operation expenses net of revenue. The Fixed Assets which are not yet completed are treated as Capital Work -in- Progress and no depreciation is provided for the same.

The assets having average life of about two yeas such as. Restaurant Crockery etc. are being clubbed under Miscellaneous Assets and have been written off after a period of two years.

9 Amortization of Miscellaneous Expenses

The preliminary expenses and issue expenses are amortized during the previous year. Expenses towards intensive advertisement campaign as well as sales promotion and foreign traveling, the benefit of which are expected to accrue over a number of years are treated deferred revenue expenditure. Appropriate amounts are being written off every year.

Advertisement & Other traveling & office expenses relating to the Periodic Membership Schemes whose income have been treated as accrued on proportionate basis are treated as deferred revenue expenditure and appropriate amounts are written off every year, over the period of such Schemes.

10 Taxes on Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economics benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax is liabilities are recognized for all timing differences. The company has been advised by experts that due to business loss and claim of depreciation as per the provisions of the income Tax Act, 1961, the company does not have any tax liability for the current financial year and therefore no provision for Income Tax has been made. Also, due to carried forward depreciation and business loss as per the provisions of Income Tax Act,1961, there is no need to provide any deferred Tax liability under Accounting Standard 22(AS 22).

11 Other Disclosure

A Figures of Previous year have been regrouped / recast wherever necessary to make them comparable with the figures of the Current year.

B The company has not provided for the gratuity liability as well as employees'' other retirement benefits though it should have provided for the same in line with the accounting standard made mandatory.

14 LOANS & ADVANCES INCLUDE THE FOLLOWING:

Rs.54,49,636/- given as loan to M/s. Mahavir Estate Pvt. Ltd. Maximum outstanding during the year Rs. 54,49,636/- (Previous year both amount are Rs.4,25,394/-)

[All these companies are under the same management as defined U/s 3701(B) of the Companies Act, 1956.]

15 Directors'' Remuneration (Current year as well as previous year) represents Directors salary only.

16 The Inventory of stores includes stocks of Stores, Spares, and Restaurant Items etc. and is stated In the Balance Sheet as taken, valued and certified by the management.

17 CONTINGENT LIABILITIES ;

I. Demand raised by the Gujarat Electricity Board for Rs. 1,95,070/- towards Installation charges and interest but contested by the company.

The Income Tax and Sales Tax assessments for the Asst. Year 2005-06 and onwards and financial year 2004-05 respectively are yet too made by the concerned authorities.

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Mar 31, 2013

1 The financial statements of the Company am prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles, Accounting standards notified under Section 211{3C) of trie Companies Act, 1&5tf and the relevant provisions thereof.

2 to of estimates

The preparation of the financial statements is conformity with Indian GAAP requires the management lo make estimates and assumption considered m the reported amount of assets and liabilities {including contingent liabilities) and the reported Income and expenses during the year. The management helives that the estimates used in preparation of trie financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual and the estimates are recognised in the periods m which the results are known i materialize.

3 Inventories

Inventories of stores, beverages & eatables At* valued at cost Cost is arrived at by following Weighted Average method of accounting.

4 Cash and Cash equivalents (for purpose of Cash Flow Statement)

Cash comprises Cash on hand and damand deposits witti banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the dale of acquisition), highly liquid Investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change In Value.

5 Cash flow statement

Cash Hows stB reported using the Indirect melhod, whereby profit / (Loss) before extraordinary items and lax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing acuities of the Company are segregated based on the available information.

6 Depredation and amortisation

Depreciation on Fixed assets Is provided on the Written down Value Method (W.D.V.). at the rates specified In Schedule XIV to the Companies Act. 1956. as amended up to the date of Balance Sheet. Fixed Assets individually costing rupees five thousand or less are depriciated 100% over a period of one year.

Depreciation on Fixed Assets, for which no rates have been specified in Schedule XIV to the Companies Aet.1S56r is provided on the Written down Value Method at the rates at which the assets are depreciated over its estimated useful Irfe.

Depreciation is Provided on pro-rata basis from the month in which assets have been put to use and up to the date on which assets have been diypud. discyddd or sold.

7 Revarcue recognition

Sale) Income from Operations

Parks Income Is accounted on accrual basis i.e data of visit of park Is ttie data of reckoning the income however in the case of the Membership for e specified period, the income has been tr&alAd as accrued proportionaleley on the- basis of span of period of membership. Also in the case- of life membership deposits, the income- is recognized by spreading deposit over a period of ten years.

Income from the services

Revenue l Income end Cost: Expenditure are generally accounted on accrual basis as they an earned or incurred except employee''s retirement benefits, which are accounted as and when actually paid.

8 Tangi bla fixed atisels

Fixed Assets are slated at cost of acquisition less accumulated depreciation. Cost includes pre-Oberalion expenses net of revenue. The Fixed Assets which an not yet completed are treated as Capital Work -in-Progress and no depredabon is provided for the same.

The assets having average life of about two yeas such as, Restaurant Crockery etc. are being clubbed under Miscellaneous Assets and have ben wntten off after a period of two years.

9 Amortization of MiseftlLartoomt

The preliminary expenses and issue expenses aro amortized during the previous year. Expenses towards intensive advertisement campaign as well as sales promotion and foreign traveling, the benefit of which an expected to accrue over a number of years are treated deferred revenue expenditure. Appropriate amounts aro being written off every year.

Advertisement & Other traveling 4 office expenses relating to the Periodic Membership Schemes whoso income have been treated as accrued on proportionate basis an treated as deferred revenue expenditure and appropriate amounts are written uff avury year, over the period of such Schemes.

10 Taxes on Intone

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the lax laws, which gives future economics benefits In the form of adfuslmenl to future Income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly. MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will now to the Company.

Deferred lax is recognized on timing differences, being the differences between Hie taxable income and the accounting income that originate in one period and an capable of reversal in one or more subsuqcui'' periods. Deferred fax is measured using the tax rales and the tax laws enacted or substantially enacted as at the reporting dale. Deferred- fax is liabilities an recognized for all timing differences. The company- has been advised by experts that due to business loss and claim of depreciation as per the provisions of the Income Tax Act. 1961, the company does not have any lax liability for the current financial year and therefore no provision for Income Tax has been made. Also, due- to earned forward depreciation and business loss as per the provisions of Income Tax Act. 1951, there is no need to provide any deferred Tax liability under Accounting Standard £2fAS22).

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Mar 31, 2012

1.1 Basis of accounting and preperation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules 2006 (as amended) and the relevant provision of the Companies Act 1956.

1.2 Use of estimates

The preparation of the financial statements is conformity with Indian GAAP requires the management to make estimates and assumption considered in the reported amount of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management belives that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could oifter due to these estimates and the differences between the actual and the estimates are recognized in the periods in which the results are known / materialize.

1.3 inventories

Inventories of stores, beverages & eatables are valued at cost. Cost is arrived at by following Weighted Average method of accounting.

1.4 Cash and Cash equivalents (for purpose of Cash Flow Statement)

Cash comprises Cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in Value.

1.5 Cash fiow statement

Cash flows are reported using the indirect method, whereby profit / (Loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortization

Depreciation on Fixed assets is provided on the Written down Value Method (W.D.V.), at the rates specified in Schedule XIV to the Companies Act, 1956, as amended up to the date of Balance Sheet.

Depreciation on Fixed Assets, for which no rates have been specified in Schedule XIV to the Companies Act, 1956, is provided on the Written down Value Method at the rates at which the assets are depreciated over its estimated useful life.

Depreciation is Provided on pro-rata basis from the month in which assets have been put to use and up to the date on which assets have been disposed, discarded or sold.

1.7 Revenue recognition

Sale/ Income from.Operations. .

Parks Income is accounted on accrual basis i.e date of visit of park is the date of reckoning the income however in the case of the Membership for a specified period, the income has been treated as accrued proportionateley on the basis of span nf period of membership. Also in the case of life membership deposits, the income is recognized by spreading deposit over a period of ten years.

Income from the services

Revenue / Income and Cost I Expenditure a*e generally accounted on accrual basis as they are earned or incurred except employee''s retremen: benefits. are accounted as and when actually paid.

1.8 Tangible fixed assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost includes pre-Operation expenses net of revenue The Fixed Assets which are not yet completed are treated as Capital Work -in- Progress and no depreciation >s provided for the same,

The assets having average life of aoout two yeas such as, Restaurant Crockery etc. are being clubbed under Miscellaneous Assets and have been written off after a period of two years.

1.9 Amortization of Miscellaneous Expenses

The preliminary expenses and issue expenses are amortized during the previous year. Expenses towards intensive advertisement campaign as well as sales promotion and foreign traveling, the benefit of which are expected to accrue over a numbe: of years are treated deferred revenue expenditure. Appropriate amounts are being written off every year.

Advertisement & Other traveling & office expeprfes relating to the Periodic Membership Schemes whose income have been treated as accrued on proportionate basis are treated as deferred revenue expenditure and appropriate amounts are written off every year, over the period of such Schemes.

1.10 Taxes on.Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the income Act. 1961

Minimum Alternate lax (MAT) paiu m accordance witn me tax laws, which gives future economics benefits in the form of adjustment io future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay norma! income tax Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probaoie that f.iu. e economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences being the differences between the taxable income and the accounting income that originate in one penod and are capable of reversal in one or more subsequent periods. Deferred tax is measured jsmg use tax rates and the tax iaws enacted or substantially enacted as at the reporting date. Deferred tax is liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognized for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax iaws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reafsabu.

1.11 Other Disclosure

a Figures of Previous year have been regrouped I recast wherever necessary to make them comparable with the figures of the Current year.

b The company has not provided for the gratuity liability as well as employees'' other retirement benefits though it should have provided for the same in line with the accounting standard made mandatory.

c Since the company is following cash method of accounting in this respect, the liability in respect of gratuity is not being worked out by it.

d No provision has been made for penalty and interest which may levied upon the Company for non deduction I short deduction of TDS and delay / default in remitting money to various authorities because the amount is not ascertainable as on the date of Balance Sheet. The same shall be accounted for as and when levied by such authorities.

f Balance due to or due from parties/ banks from whom confirmations are not received, are subject to adjustment on receipt of necessary confirmations.

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Mar 31, 2011

1. The financial statements have been prepares under the historical cost conventions in accordance with the generally accepted accounting principles and as per the provisions of the Companies Act, 1956 except non following of Accounting Standard No,13. 15 and 17 regarding ''Segment Reporting'' ''Accounting or Investments'' and ''Accounting for Retirement benefits in the financial statement of Employers'', respectively.

2. Accounting policies not specifically referred to otherwise are consistent and in consonance with geniality accepted accounting principles as consistently followed by the Company.

2. RECOGNITION Of INCOME / EXPENDITURE:

Revenue / Income -ravel Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except employees'' retirement benefits, which are accounted as and when actually paid.

3. SALES/INCOME FROM OPERATIONS:

Parks Income is accounted on accrual basis i.e. date of visit to park is the date of reckoning the income, however m the case or the Membership for a specified period, the income has been treated as accrued proportionately on lie basis of span of period of membership. Also in the case of life membership deposits, (be income is recognized by spreading deposit over a period often years.

4. INVESTMENTS:

i. Investments are stated at cost,

ii. Profit/(Lass) on sale of investments is accounted reckoning the first in first out (FIFO) method of accounting.

5. FIXED ASSETS AND DEPRECIATION.

1. Fixed Assets state if ,it routs of acquisition less accumulated depreciation. Cost includes pre-operation expenses net of revenue. The Fixed Assets, which are not yet completed, are treated as Capital Work-in-Progress and no depreciation is provided for sentry.

2. Depreciation on Fixed Assets is provided on the Written Down Value Method (W.D.V.}, at the rates specified in Schedule XIV to the Companies Act, 1956, as amended up to tree waifs of Balance Sheet.

3. Depreciation on Fixed Assets, for which no rates have been specified in Schedule XIV to the Companies Act, 1956, is provided on the Written Down Value Method at the rates at which the assets are depreciated over its estimated useful life.

4. Depreciation is provided on pro-rata basis from the month in which assets have been put to use and up to the date on which assets have been disposed, discarded or sold.

5. The assets having average life of about two years such as Restaurant, Crockery etc. are being clubbed under Miscellaneous Assets and have been written off after a period of two years, .

6. VALUATION OF INVENTORIES:

Inventories of stores, beverages & eatables are valued at cost. Cost is arrived at by following Weighted Average method of accounting.

7. A ORTISATION OF MISCELLANEOUS EXPENSES :

i. The preliminary expenses and issue expenses are amortized over a period of ten years.

ii. Expenses towards intensive advertisement campaign as well as safes promotion and foreign travelling, the benefit of which are expected to accrue over a number of years are treated as deferred revenue expenditure. Appropriate amounts are being written off every year,

iii. Advertisement & other travelling & office expenses relating to the Periodic Membership Schemes whose income have been treated as accrued on proportionate basis are treated as deferred revenue expenditure and appropriate amounts are being written off every year, over the period of such Schemes,

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Mar 31, 2010

1. ACCOUNTING CONVENTIONS:

1. The Financial statements have been prepared under the historical cost conventions in accordance with the generally accepted accounting principles and as per the provisions of the Companies Act, 1956 except non following of Accounting Standard No. 13 and 15 regarding accounting of investments and Accounting for Retirement benefits in the financial statement of Employers, respectively.

2. Accounting policies not specifically referred to-otherwise are consistent and in consonance with generally accepted accounting principles as consistently followed by the Company.

2. RECOGNITION OF INCOME/ EXPENDITURE: .

Revenue / Income and Cost / Expenditure are generally accounted on accrual basis as they are earned or incurred except employees retirement benefits, which are accounted as and when actually paid.

3. SALES/INCOME FROM OPERATIONS:

Parks Income is accounted on accrual basis i.e. date of visit to park is the date of reckoning the income, however in the case of the Membership for a specified period, the income has been treated as accrued proportionately on the basis of span of period of membership. Also in the case of life membership deposits, the income is recognised by spreading deposit over a period of ten years.

4. INVESTMENTS:

i. Investments are stated at cost.

ii. Profit/(Loss) on sale of investments is accounted reckoning the first in first out (FIFO>method of accounting.

5. FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost includes pre-operation expenses net of revenue. The Fjxed Assets, which are not yet completed, are treated as Capital Work-in-Progress and no depreciation is provided for the same.

2. Depreciation on Fixed Assets is provided on the Written Down Value Method (W.D.V.), at the rates specified in Schedule XIV to the Companies Act, 1956, as amended upto the date of Balance Sheet.

3. Depreciation on Fixed Assets, for which no rates have been specified in Schedule XIV to the Companies Act, 1956, is provided on the Written Down Value Method at the rates at which the assets are depreciated over its estimated useful life.

4. Depreciation is provided on pro-rata basis from the montt in which assets have been put to use and upto the date on which assets have bee> disposed, discarded or sold.

5. The assets having average life of about two years such as Costumes, Restaurant, Crockery etc. are being clubbed under Miscellaneous Assets and have been written off after a period of two years.

6. VALUATION OF INVENTORIES:

Inventories of stores, beverages & eatables are valued at cost. Cost is arrived at by following Weighted Average method of accounting.

7. A AMORTISATION OF MISCELLANEOUS EXPENSES :

i. The preliminary expenses and issue expenses are amortised over a period of ten years.

ii. Expenses towards intensive advertisement campaign as well as sales promotion and foreign travelling, the benefit of which are expected to accrue over a number of years are treated as deferred revenue expenditure. Appropriate amounts are being written off every year.

iii. Advertisement & other travelling & office expenses relating to the Periodic Membership Schemes whose income have been treated as accrued on proportionate basis are treated as deferred revenue expenditure and appropriate amounts are being written off every year, over the period of such Schemes.