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Accounting Policies of Bombay Potteries & Tiles Ltd. Company

Mar 31, 2014

A. General:

i. The financial statements are prepared on historical cost basis (except for Revaluation of land and building), in accordance with accepted accounting standards and on the accounting principle of a going concern.

ii. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

B. Use of estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

C. Revenue recognition for construction of buildings and sale of flats:

Revenue from Land and Building under construction thereon is recognized on completion of the project and substantial compliance of the terms of agreements for sale of flats.

D. Investments:

Long Term Investments are stated at cost. In case, there is a permanent diminution in the value of any investments, a provision for the same is made in the accounts.

E. Inventories:

i) Work in progress is valued at cost, which includes cost of construction materials, labour charges, rates and taxes but excludes indirect costs like interest and other common administrative overheads.

ii) Stock of Flats: At cost of land including the accretion to its value on change of its character from Capital Assets to Stock-in-trade and related construction expenses or net realisable value whichever is lower.

F Fixed Assets:

i. Certain Land & building were revalued from time to time and are stated at such updated book values less depreciation, where applicable.

ii. ther fixed assets are stated at cost less depreciation. Cost includes freight, duties and Taxes and incidental expenses related to acquisition, installation, erection and commissioning.

G. Depreciation:

Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

H. Taxation:

Provision for the current income tax is made on the basis of the estimated taxable income for the current accounting year in accordance with Income Tax Act, 1961 Mat credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward Only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

I. Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate, when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.


Mar 31, 2013

A. General:

i. The financial statements are prepared on historical cost basis (except for Revaluation of land and building), in accordance with accepted accounting standards and on the accounting principle of a going concern.

ii. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties. -

B. Use of estimates:

The preparation of financial statements in conformity with Generally ~ Accepted Accounting Principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

C. Revenue recognition for construction of buildings and sale of flats:

Revenue from Land and Building under construction thereon is recognized on completion of the project and substantial compliance of the terms of agreements for sale of flats.

D. Investments:

Long Term Investments are stated at cost. In case, there is a permanent diminution in the value of any investments, a provision for the same is made in the accounts.

E. Inventories:

i) Work in progress is valued at cost, which includes cost of construction materials, labor charges, rates and taxes but excludes indirect costs like interest and other common administrative overheads.

ii) Stock of Flats: At cost of land including the accretion to its value on change of its character from Capital Assets to Stock-in-trade and related construction expenses or net realizable value whichever is lower.

F Fixed Assets:

i. Certain Land & building were revalued from time to time and are stated at such updated book values less depreciation, where applicable.

ii. Other fixed assets are stated at cost less depreciation. Cost includes freight, duties and Taxes and incidental expenses related to acquisition, installation, erection and commissioning.

G. Depreciation:

Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

H. Taxation: ''

Provision for the current income tax is made on the basis of the estimated taxable income for the current accounting year in accordance with Income Tax Act, 1961 Mat credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each '' balance sheet date.

I. Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate, when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.


Mar 31, 2012

A. General:

i. The financial statements are prepared on historical cost basis (except for Revaluation of land and building), in accordance with accepted accounting standards and on the accounting principle of a going concern.

ii. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

B. Use of estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

C. Revenue recognition for construction of buildings and sale of flats:

Revenue from Land and Building under construction thereon is recognized on completion of the project and substantial compliance of the terms of agreements for sale of flats.

D. Investments:

Long Term Investments are stated at cost. In case, there is a permanent diminution in the value of any investments, a provision for the same is made in the accounts.

E. Inventories:

i) Work in progress is valued at cost, which includes cost of construction materials, labour charges, rates and taxes but excludes indirect costs like interest and other common administrative overheads.

ii) Stock of Flats: At cost of land including the accretion to its value on change of its character from Capital Assets to Stock-in-trade and related construction expenses or net realisable value whichever is lower.

F Fixed Assets:

i. Certain Land & building were revalued from time to time and are stated at such updated book values less depreciation, where applicable.

ii. Other fixed assets are stated at cost less depreciation. Cost includes freight, duties and Taxes and incidental expenses related to acquisition, installation, erection and commissioning.

G. Depreciation:

Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

H. Taxation:

Provision for the current income tax is made on the basis of the estimated taxable income for the current accounting year in accordance with Income Tax Act, 1961

Mat credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

I. Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate, when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.


Mar 31, 2011

A. General:

i. The financial statements are prepared on historical cost basis (except for Revaluation of land and building), in accordance with accepted accounting standards and on the accounting principle of a going concern.

ii. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

B. Use of estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

C. Revenue recognition for construction of buildings and sale of flats:

Revenue from Land and Building under construction thereon is recognized on completion of the project and substantial compliance of the terms of agreements for sale of flats.

D. Investments:

Long Term Investments are stated at cost. In case, there is a permanent diminution in the value of any investments, a provision for the same is made in the accounts.

E. Inventories:

i) Work in progress is valued at cost, which includes cost of construction materials, labour charges, rates and taxes but excludes indirect costs like interest and other common administrative overheads.

ii) Stock of Flats: At cost of land including the accretion to its value on change of its character from Capital Assets to Stock-in-trade and related construction expenses or net realisable value whichever is lower.

F. Fixed Assets:

i. Certain Land & building were revalued from time to time and are stated at such updated book values less depreciation, where applicable.

ii. Other fixed assets are stated at cost less depreciation. Cost includes freight, duties and Taxes and incidental expenses related to acquisition, installation, erection and commissioning.

G. Depreciation:

Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

H. Taxation:

Provision for the current income tax is made on the basis of the estimated taxable income for the current accounting year in accordance with Income Tax Act, 1961

Mat credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

I. Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate, when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.




Mar 31, 2010

A. General:

i. The financial statements are prepared on historical cost basis (except for Revaluation of land and building), in accordance with accepted accounting standards and on the accounting principle -of a going concern.

ii. Expenses and Income to the extent considered payable and receivable, respectively, are accounted for on accrual basis, except those with significant uncertainties.

B. Use of estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

C. Revenue recognition for construction of buildings and sale of flats:

Revenue from Land and Building under construction thereon is recognized on completion of the project and substantial compliance of the terms of agreements for sale of flats.

D. Investments:

Long Term Investments are stated at cost. In case, there is a permanent diminution in the value of any investments, a provision for the same is made in the accounts.

E. Inventories:

i) Work in progress is valued at cost, which includes cost of construction materials, labour charges, rates and taxes but excludes indirect costs like interest and other common administrative overheads.

ii) Stock of Flats: At cost of land including the accretion to its value on change of its character from Capital Assets to Stock-in-trade and related construction expenses or net realisable value whichever is lower.

F Fixed Assets:

i. Certain Land & building were revalued from time to time and are stated at such updated book values less depreciation, where applicable,

ii. Other fixed assets are stated at cost less depreciation. Cost includes freight, duties and Taxes and incidental expenses related to acquisition, installation, erection and commissioning.

G. Depreciation:

Depreciation on Fixed Assets is provided on straight line method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

H. Taxation:

Provision for the current income tax is made on the basis of the estimated taxable income for the current accounting year in accordance with Income Tax Act, 1961

Mat credit asset is recognized and carried forward only if there is a reasonable certainty of it being set off against regular tax payable within the stipulated statutory period.

Deferred Tax resulting from timing differences between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to crystallize. Deferred tax assets are recognized and carried forward only if there is a virtual/reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

l. Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on a reliable estimate, when it is probable that an outflow of resources embodying economic benefit will be required to settle an obligation. Contingent liabilities, if material, are disclosed by way of notes to accounts. Contingent assets are not recognized or disclosed in the financial statements.

 
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