Accounting Policies of B Nanji Enterprises Ltd. Company

Mar 31, 2015

1 The accounts have been prepared on historical cost convention and on the basis of going concern with revenue recognition.

2 Company follows the accrual system of accounting unless otherwise stated.

3 Company is engaged in sale and purchase of land, development and construction activity. In respect of trading activity, purchase of land is accounted on historical cost method and on the basis of either Sale Deed in favor of Company or an Agreement to Sale with possession in favor of the Company without execution of legal documents, whichever is earlier. Sale of land is accounted at the time of possession of land or execution of sale deed, whereas in respect of the construction activity, company has adopted the percentage/progress of completion method as certified by Engineer.

4 Stock of Land is Valued as under :

a Land for Resort at Village Ganol with Banakhat Right is valued at Banakhat value.

b Land of Vibhusha Scheme held in the name of Associate Company/firm is valued at banakhat value/cost.

c Land of Nisarg Scheme (Agricultural Land) is held in the name of Chairman and Managing Director and erstwhile Directors, associate firm and company, is valued at Cost / Banakhat Value.

d Land of Vevji /Devdi - Bhilad, Valsad, Mahemdavad, Vadaj, Kathlal are valued at Cost plus direct expenses like Registration and Stamp Duty brokerage etc. less value of sale of land on proportionate average rate.

e As per Sale Agreement of Land at Mahemdavad purchased form various parties includes cost of shares of The Navgujarat Industrial Estate Private Limited, the same shares are held in the name of directors and the same included in the cost of Land.

f Work in progress/work completed has been accounted on the basis of cost of work done plus direct expenses pertaining to project and borrowing cost, as ceritfied by Engineer. Stock of Finished Goods i.e. Plot at Silvassa at purchase price including cost of development and Constructed Shed at Land Cost plus Cost of Construction. Work in Progress of Shiromani bunglows is taken as per agreement executed with Labh Construction Limited in earlier years.

5 Purchases includes Carting, Land Leveling Expenses and Sales Tax.

6 Sale of Land and plots is recognised in the financial year in which the agreement for sale is executed. Where the company has any remaining substantial obligation as per the agreements, revenue is recognised on the percentage of completion method of accounting.

7 Sale of Constructed Building is recognised in the financial year in which the agreement of sale are executed and there is no uncertainity of collections.

8 In case of Sales of Flats/Apartments of Akanksha Flats, Scheme at Umargaon, Dist. Thane, Mahasharashtra, sales is accounted at the time of giving possesion to the purchasers.However, in view of the provisions of Maharashtra Ownership of Flats Act, 1963, company has to form either Co. Op. Society or a Company and execute sale deed in favour of Society/ Company at the time of Completion of Scheme. Pending execution of sale deed / conveyance in favour of Society / Company, Company has booked sales in the accounts on giving possession to the buyers of the flats/ Company has not recovered the contribution from the members of the proposed society/company as stipulated in the Agreement for Sale / Act.

9 Amount received Rs.220.55 lacs in earlier year as Advance for sale of land against proposed sale of land has been shown as Advance against Land.

10 Share of Profit/loss from firms in which the Company is a partner is accounted for in the financial year ending on the date of balance sheet.

11 Interest wherever receivable on loans under agreement is accounted on accrual basis.

Unquoted Investments are stated at cost. Quoted Investment is stated at cost or market whichever is lower.

13 Fixed Assets are stated at historical cost, cost includes expenses attributable to assets till instalaltion/put to use.

14 Depreciation has been provided on written down value method on assets put to use as per the rates prescribed in the Schedule II to the Companies Act, 2013 on the basis of average useful life of the assets. Any excess depreciation provided in earlier year on this basis has been adjusted into Reserve & Surplus Account.

15 Dividend income is accounted on cash basis.

16 Commsision payable on sales is accounted on cash basis.

17 Collection of VAT/ Electric Connection cost recoverable from members is accounted on Cash Basis and shown as Income.

18 Professional Fees is accounted on Cash Basis.

19 Employees Benefit:

1 Provident Fund:

The Company makes contribution to statutory providend fund in accordance with The Empolyees' Providend Fund and Miscellaneous Provision Act,1952.

2 Gratuity

The Company is making provision for total liability of gratuity payable under The Payment of Gratuity Act on th basis of 15 days salary for completed year of service of eligible employee without considering directors.

3 Other short-term benefits

Expense in respect of other short-term benefits like Leave Encashment is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee and accounted on Cash Basis.

20 Contigent liabilities and provisions

In respect of statutory dues disputed and contested by the company, contigent liabilities are provided for and discolsed as per original demand without taking in to account any interest or penalty that may accrue thereafter. The company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and reliable estimate of the amount of obligation can be made. Possible future or present obligations that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contigent liability in the Financial Statements.

21 Earning per share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events including bonus issue, bonus element in a right issue to existing shareholders, share split, and reverse split(consolidation of shares).

For the purpose of calculating diluted earning per shares, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effercts of all dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based ona mean date in the quarter, as impact is immaterial on earnings per share.

22 Impairment of Assets

The Company assessees at each balance sheet date whether there is any indication that an asset may be impaired. If at the balance sheet date there is an indication that a previously assessed impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

23 Taxation

Tax expense for the year comprises current income tax and wealth tax has been provided on the basis of current year's income. Company has not determined the deferred tax assets/liabilities.

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Mar 31, 2014

1. The accounts have been prepared on historical cost convention and on the basis of going concern with revenue recognition.

2. Company follows the accrual system of accounting unless otherwise stated.

3. Company is engaged in sale and purchase of land, development and construction activity. In respect of trading activity, purchase of land is accounted on historical cost method and on the basis of either Sale Deed in favor of Company or an Agreement to Sale with possession in favor of the Company without execution of legal documents, whichever is earlier. Sale of land is accounted at the time of possession of land or execution of sale deed, whereas in respect of the construction activity, company has adopted the percentage/progress of completion method as certified by Engineer.

4. Stock of Land is Valued as under :

a. Land for Resort at Village Ganol with Banakhat Right is valued at Banakhat value.

b. Land of Vibhusha Scheme held in the name of Associate Company/firm is valued at banakhat value/cost.

c. Land of Nisarg Scheme (Agricultural Land) is held in the name of Chairman and Managing Director and erstwhile Directors, associate firm and company, is valued at Cost / Banakhat Value.

d. Land of Vevji /Dehli - Bhilad, Valsad, Mahemdavad, Vadaj, Kathlal are valued at Cost plus direct expenses like Registration and Stamp Duty brokerage etc. less value of sale of land on promortionate average rate.

e. Work in progress/work completed has been accounted on the basis of cost of work done plus direct expenses pertaining to project and borrowing cost (From Current Year) as ceritfied by Engineer. Stock of Finished Goods i.e. Plot at Silvassa at purchase price including cost of development and Constructed Shed at Land Cost plus Cost of Construction. Work in Progress of Shiromani bunglows is taken as per agreement executed with Labh Construction Limited in earlier years.

5. Purchases includes Carting, Land Leveling Expenses and Sales Tax.

6. Sale of Land and plots is recognised in the financial year in which the agreement for sell is executed. Where the company has any remaining substantial obligation as per the agreements, revenue is recognised on the percentage of completion method of accounting.

7. Sale of Constructed Building is recognised in the financial in which the agreement of sale are executed and there is no uncertainly of collections.

8. In case of Sales of Flats/Apartments of Akanksha Flats, Scheme at Umargaon, Dist. Thane, Mahasharashtra, sales is accounted at the time of giving possesion to the purchasers. However, in view of the provisions of Maharashtra Ownership of Flats Act, 1963, company has to for either Co. Op. Society or a Company and execute sale deed in favour of Society/ Company at the time of Completion of Scheme. Pending execution of sale deed / conveyance in favourt of Society / Company, Company has booked sales in the accounts on giving possession to the buyers of the flats/ Company has not recovered the contribution from the members of the proposed society as stipulated in the Agreement for Sale / Act.

9. Share of Profit/loss from firms in which the Company is a partner is accounted for in the financial year ending on the date of balance sheet.

10. Interest wherever receivable on loans under agreement is accounted on accrual basis.

11. Unquoted Investments are stated at cost.

12. Fixed Assets are stated at historical cost, cost includes expenses attributable to assets till instalaltion/put to use.

13. Depreciation has been provided on written down value method on assets put to use as per the rates prescribed in the Schedule XIV to the Companies Act, 1956.

14. Dividend income is accounted on cash basis.

15. Commsision payable on sales is accounted on cash basis.

16. Collection of VAT/ Electric Connection cost recoverable from members is accounted on Cash Basis and shown as Income.

17. Professional Fees is accounted on Cash Basis.

18. Employees Benefit :

1 Provident Fund :

The Company makes contribution to statutory providend fund in accordance with The Empolyees'' Providend Fund and Miscellaneous Provision Act,1952.

2. Gratuity :

Company is making provision for total liability of gratuity payable under The Payment of Gratuity Act.

3. Other short-term benefits :

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

19. Contigent liabilities and provisions :

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the company are accounted for as either provisions or disclosed as contigent liabilities. In respect of statutory dues disputed and contested by the company, contigent liabilities are provided for and discolsed as per original demand without taking in to account any interest or penalty that may accrue thereafter. The company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and reliable estimate of the amount of obligation can be made. Possible future or present obligations that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contigent liability in the Financial Statements.

20. Earning per share :

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events including bonus issue, bonus element in a right issue to existing shareholders, share split, and reverse split (consolidation of shares).

For the purpose of calculating diluted earning per shares, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effercts of all dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based ona mean date in the quarter, as impact is immaterial on earnings per share.

21. Impairment of Assets :

The Company assessees at each balance sheet date whether there is any indication that an asset may be impaired. If at the balance sheet date there is an indication that a previously assessed impaired loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

22. Taxation :

Tax expense for the year comprises current income tax and wealth tax. Current income tax is determined in respect of taxable income with deferred tax being deteremined as the tax effect of timing diference representing the diferrence between taxable income and accounting income that originatein one period and are capable of reversal; in one or more subsequent period. Such deferred tax is quantified using rates and laws enacted or substatively enacted as at the end of the financial year.

23. Foreign Exchange Transaction :

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.

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Mar 31, 2009

1. The accounts have been prepared on historical cost convention and on the basis of going concern with revenue reorganization.

2. Company follows the accrual system of accounting unless otherwise stated.

3. Company is engaged in sale and purchase of land, development and construction activity. In respect of trading activity, Purchase of land is accounted on historical cost method and on the basis of either Sale Deed in favour of Company or an Agreement to Sale with possession in tavour of the Company without execution of legal documents, whichever is earlier. Sale of land is accounted at the time of possession of land or execution of sale deed, whereas in respect of the construction activity, company has adopted the percentage/progress of completion method as certified by Engineer

4 Stock of Land is Valued as under:

5. Land for Nikol, Sur.No. 432/4 with Banakhat right is valued at Banakhat Value.

6. Land for Resort at Village Ganol with Banakhat Right is valued at Banakhat value.

7. Land at Godhavi, Sir. 718, held in the name of company is valued at cost.

8. Land of Land Mark scheme held in the name of company / associate company is valued at cost plus development charges. Land for Landmark scheme with Banakhat Right is Valued at Banakhat value.

9. Land of Vibhusha Scheme held in the name of Associate Company/firm with banakhat right and in the name of the company is valued at banakhat value/cost.

10. Land of Nisarg Scheme (Agricultural Land) is held in the name of Chairman and Managing Director and other Directors, associate firm and company is valued at Cost/Banakhat Value.

11. Name of legal heirs of Late Rajesh Padsala has been admitted in place of him, where land is held in his name/joint with other directors.

12. Work in progress/work completed has been accounted on the basis of cost of work done plus Direct Expenses pertaining to project. Stock of Raw Material is valued at Cost, Stock of Finished Goods i.e. Plot at Silvassa at purchase cost plus Cost of Development and Constructed Shed at Land Cost plus Cost of Construction. Work in Progress of Vibhusha Scheme is valued at percentage of completion less Cost of Sales as Certified by Engineer. Work in Progress of Moriya site has been written off in view of poor quality of land and which is not saleable.

13. Premium payable on Land to be purchased, which was in turn sold during the year, for which agreement has to be executed is accounted on estimation basis for plots of land purchased in the same scheme.

14. Purchases includes Carting, Land Leveling Expenses and Sales Tax.

15. Investments are stated at cost.

16. Fixed Assets are stated at cost.

17. Depreciation has been provided on written down value method on assets put to use as per the rates prescribed in the Schedule XIV to the Companies Act, 1956..

18. Dividend income is accounted on cash basis.

19. Bonus, Gratuity and Leave Encashment and other employees benefit is accounted on cash basis.