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Accounting Policies of Alchemist Realty Ltd. Company

Mar 31, 2015

1. Basis of Preparation.

The financial statements have been prepared to comply with the Accounting Standards specified u/s 133 of the Companies Act 2013 read with Companies (Accounts) Rule 2014 and other accounting principle generally accepted in India. The financial statements have been prepared under the historical cost convention on the accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Revenue Recognition

All revenues and expenses are accounted for on accrual basis.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use. Where an asset is scrapped or otherwise disposed off, the cost and related depreciation is written back and the resultant profit or loss, if any, is reflected in the Profit and Loss Account.

4. Depreciation

The depreciation on the fixed assets has been provided on useful life of the Assets on written down value method in accordance with the provision of Companies Act, 2013 and necessary adjustment has been made in WDV of existing Assets whose useful life has been expired.

5. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

6. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Employee Benefits

i) Provident Fund

The Company makes Contribution to statutory provident fund in accordance with Employees' Provident Fund and Miscellaneous Provision Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

ii) Gratuity

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date together with adjustments of unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the profit and loss account in the year in which such gains or losses arise.

iii) Compensated absences

Provision for compensated absences when determined to be a long term benefit made on the basis of actuarial valuation as at the end of the year. Actuarial gains and losses arising from experience, adjustment and changes in actuarial assumptions are charged or credited to the profit and loss account in the year in which such gains or losses arise.

8. Inventories

Inventories consist of Land, Plots and Flats under construction valued at cost and other acquisition expenses including pending allocation of expenses incurred and also include expenses to bring them in their actual position/status for sale.

9. Use of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.

10. Tax on Income

a) Current Tax:

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961 after considering tax allowance and exemptions if any.

b) Deferred Tax Provision:

Deferred Tax charge or credit is recognized, on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. It is calculated using the applicable tax rates and tax laws that have been enacted by the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future. At each Balance sheet date, recognized and unrecognized Deferred Tax Assets are reviewed.

11. Miscellaneous Expenditure

1 /10th of the miscellaneous expenditure had been written off during the year and the balance will be adjusted proportionately over the subsequent years.

12. Foreign Currency Transaction

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of the transaction. Exchange difference if any arising out of transaction settled during the year is recognised in the profit and loss account.

13. Sundry Debtors & Advances

Whenever the management finds any debt/advances as doubtful, bad, irrecoverable, necessary adjustments are being made in Profit and Loss account in the year during which such question arises.

14. Provision, Contingent Liabilities & Contingent Assets.

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Prior Period Items etc.

Material Items if any, relating to the prior period, non-recurring and extraordinary items etc., are disclosed separately.

16. Earnings Per Share

The earning considered in ascertaining the Company's EPS comrpirses as the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The number of shares considered for deriving basic EPS & also the weighted average number of shares considered for deriving basic EPS & also the weighted average no of shares that could have been issued on the conversion of all diluted potential equity shares.

17. Operating leases

Assets taken on lease under which all risk and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating are recognised as expenses.

18. Rounding Off

Amounts have been rounded off to the nearest rupee.




Mar 31, 2014

1. Basis of Preparation

The financial statements have been prepared to comply with the Accounting Standards referred to in Companies (Accounting Standards) Rule 2006 issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of section 642 and the relevant provisions of the Companies Act, 1956(the ''Act"). The financial statements have been prepared under the historical cost convention on the accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Revenue Recognition

All revenues and expenses are accounted for on accrual basis.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use. Where an asset is scrapped or otherwise disposed off, the cost and related depreciation is written back and the resultant profit or loss, if any, is reflected in the Profit and Loss Account.

4. Depreciation

The depreciation on the fixed assets has been provided on written down value method in accordance with Companies Act, 1956 on pro-rata basis.

5. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

6. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Employee Benefits

i) Provident Fund-

The Company makes Contribution to statutory provident fund in accordance with Employees'' Provident Fund and Miscellaneous Provision Act, 1952. The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employee.

ii) Gratuity -

Gratuity is a post-employment benefit and is in the nature of defined benefit plan. The liability recognized in the balance sheet in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date together with adjustments of unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from adjustments and changes in actuarial assumptions are charged or credited to the profit and loss account in the year in which such gains or losses arise.

iii) Compensated absences -

Provision for compensated absences when determined to be a long term benefit made on the basis of actuarial valuation as at the end of the year. Actuarial gains and losses arising from experience, adjustment and changes in actuarial assumptions are charged or credited to the profit and loss account in the year in which such gains or losses arise.

8. Inventories

Inventories consist of Land, Plots and Flats under construction valued at cost and other acquisition expenses including pending allocation of expenses incurred and also include expenses to bring them in their actual Dosition/status for sain

9. Use of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.

10. Tax on Income

a) Current Tax:

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961 after considering tax allowance and exemptions if any.

b) Deferred Tax Provision:

Deferred Tax charge or credit is recognized, on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. It is calculated using the applicable tax rates and tax laws that have been enacted by the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future. At each Balance sheet date, recognized and unrecognized Deferred Tax Assets are reviewed.

11. Miscellaneous Expenditure

1/10"'' of the miscellaneous expenditure had been written off during the year and the balance will be adjusted proportionately over the subsequent years.

12. Foreign Currency Transaction

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of the transaction. Exchange difference if any arising out of transaction settled during the year is recognised in the profit and loss account.

13. Sundry Debtors & Advances

Whenever the management finds any debt/advances as doubtful, bad, irrecoverable, necessary adjustments are being made in Profit and Loss account in the year during which such question arises.

14. Provision, Contingent Liabilities & Contingent Assets.

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Prior Period Items etc.

Material Items if any, relating to the prior period, non-recurring and extraordinary items etc., are disclosed separately.

16. Earnings Per Share

The earning considered in ascertaining the Company''s EPS comrpirses as the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The number of shares considered for deriving basic EPS & also the weighted average number of shares considered for deriving basic EPS & also the weighted average no of shares that could have been issued on the conversion of all diluted potential equity shares.

17. Operating leases

Assets taken on lease under which all risk and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating are recognised as expenses.

18. Rounding Off

Amounts have been rounded off to the nearest rupee.

14.1 Advances includes amount given to various parties amounting to Rs. 1230.12 Lac (Previous year Rs. 1230.12 Lacs) in respect of property to be purchased/ acquired in due course of time. The matters relating to these are sub judice.

14.2 Advances include amount given to various parties amounting to Rs. 1829.98 Lacs (Previous year Rs. 1547.21 Lacs) negotiation in respect of transfer of title of land are in progress and necessary sale deeds has not been executed so far in favour of the company.

14.3 An Amount of Rs. 1887.91 Lacs(PreviousyearRs. 1371.25 Lacs) was given to various parties on account of franchise fees and other expenses for acquiring rights of Realogy Corpn. Inc USA for their brand (Century 21) which is recoverable in due course of time.

Defined Benefit Plans:

(a) Gratuity

(b) Earned Leave.

These are unfunded schemes, the present value of obligation is determined based on actuarial valuation, the disclosure of which is given as under:


Mar 31, 2013

1. Accounting Convention

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Revenue Recognition

All revenues and expenses are accounted for on accrual basis.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use. Where an asset is scrapped or otherwise disposed off, the cost and related depreciation is written back and the resultant profit or loss, if any, is reflected in the Profit and Loss Account.

4. Depreciation

The depreciation on the fixed assets has been provided on written down value method in accordance with Companies Act, 1956 on pro-rata basis.

5. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company''s assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

6. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Retirement Benefits

Company''s contribution to provident fund and family pension fund are charged to profit and loss account.

Contribution to provident fund is accounted on accrual basis with corresponding contribution recognised fund.

Gratuity is defined benefit or obligation and is provided for on the basis of an actuarial valuation made at the end of the each financial year. The liability so provided is unfunded.

Leave encashment is provided for on the basis of an actuarial valuation at the end of each financial year.

8. Inventories

Inventories consist of Land, Plots and Flats under construction valued at cost and other acquisition expenses including pending allocation of expenses incurred and also include expenses to bring them in their actual position/status for sale.

9. Use of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.

10. Tax on Income

a) Current Tax:

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961 after considering tax allowance and exemptions if any.

b) Deferred Tax Provision:

Deferred Tax charge or credit is recognized, on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. It is calculated using the applicable tax rates and tax laws that have been enacted by the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future. At each Balance sheet date, recognized and unrecognized Deferred Tax Assets are reviewed.

11. Miscellaneous Expenditure

1/10th of the miscellaneous expenditure had been written off during the year and the balance will be adjusted proportionately over the subsequent years.

12. Foreign Currency Transaction

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of the transaction. Exchange difference if any arising out of transactions settled during the year is recognised in the profit and loss account

13. Sundry Debtors & Advances

Whenever the management finds any debt/advances as doubtful, bad, irrecoverable, necessary adjustments are being made in Profit and Loss account in the year during which such question arises.

14. Provision, Contingent Liabilities & Contingent Assets.

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Prior Period Items etc.

Material Items if any, relating to the prior period, non-recurring and extraordinary items etc., are disclosed separately.

16. Earnings Per Share

The earning considered in ascertaining the Company''s EPS comprises as the net profit after tax. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year. The number of shares considered for deriving basic EPS & also the weighted average number of shares considered for deriving basic EPS & also the weighted average no of shares that could have been issued on the conversion of all diluted potential equity shares.

17. Operating leases

Assets taken on lease under which all risk and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease payments under operating are recognised as expenses.

18. Rounding Off

Amounts have been rounded off to the nearest rupee.


Mar 31, 2012

1. Accounting Convention

The accompanying financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956.

2. Revenue Recognition

All revenues and expenses are accounted for on accrual basis.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition less accumulated depreciation, less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use. Where an asset is scrapped or otherwise disposed off, the cost and related depreciation is written back and the resultant profit or loss, if any, is reflected in the Profit and Loss Account.

4. Depreciation

The depreciation on the fixed assets has been provided on written down value method in accordance with Companies Act, 1956 on pro-rata basis.

5. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment of company's assets. If any indication exists, the recoverable amount of such assets is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

6. Investments

Investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

7. Provision for Gratuity/Bonus and Provident Fund to Employees

a) Provision for Gratuity and Leave Encashment benefit is made based on accrual basis at the Balance Sheet date. Bonus has been provided in the books at the rate prescribed under the Payment of Bonus Act.

b) Contribution to Provident Fund Scheme accruing during the year is as per the rate as prescribed by the statute and are charged to Profit & Loss Account.

8. Inventories

Inventories consist of Land and Plots, valued at cost and other acquisition expenses incurred to bring them in their actual position/status for sale.

9. Use of Estimates

The preparation of Financial Statements in conformity with the generally accepted accounting principles requires management to make estimates and assumption in respect of certain items that affect the reported amount of assets and liabilities as at the date of the financial statements and the reported

amount of income and expenses during the reporting period. Actual result/outcome could differ from estimates. Any revision in accounting estimates is recognised prospectively in the period in which such results are materialised.

10. Provision for Taxes

a) Current Tax:

Provision for Income Tax is determined in accordance with the provisions of Income tax Act, 1961.

b) Deferred Tax Provision:

Deferred Tax charge or credit is recognized, on timing differences, being the difference between the taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. It is calculated using the applicable tax rates and tax laws that have been enacted by the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in future. At each Balance sheet date, recognized and unrecognized Deferred Tax Assets are reviewed.

11. Miscellaneous Expenditure

1 /10th of the miscellaneous expenditure had been written off during the year and the balance will be adjusted proportionately over the subsequent years.

12. Foreign Currency Transaction

Transactions denominated in Foreign Currency are normally recorded at the exchange rate prevailing at the time of the transaction. However there is no foreign currency transaction incurred during the year.

13. Sundry Debtors & Advances

Whenever the management finds any debt/advances as doubtful, bad, irrecoverable, necessary adjustments are being made in Profit and Loss account in the year during which such question arises.

14. Provision, Contingent Liabilities & Contingent Assets.

Provision involving substantial degree of estimation in measurement is recognised when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

15. Prior Period Items etc.

Material Items if any, relating to the prior period, non-recurring and extraordinary items etc., are disclosed separately.

16. Other Accounting Policies

These are consistent with the generally accepted accounting standards as issued from time to time.

 
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