Home  »  Company  »  Coral India Finance  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Coral India Finance and Housing Ltd. Company

Mar 31, 2015

A. Basis of Accounting

The Financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with applicable accounting standards and the provisions of the Companies Act, 2013. The company has prepared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013.

B. Use of Estimates

Preparation of Financial Statement is in conformity with Generally Accepted Accounting Principles which requires Company Management to make estimates and assumptions that affect reported balance of Assets & Liabilities and disclosures relating to Contingent Assets & Liabilities as on the date of Financials and reported amounts of income & expenses during the period. Examples of such estimate include profits expected to be earned on projects carried on by the Company, Contract Costs expected to be incurred to completion of project, provision for Doubtful Debts, Income Taxes, etc. Actual results could differ from these estimates. Differences, if any, between the actual result and estimates are recognized in the period in which the result are known or materialized.

C. Fixed Assets

Fixed Assets are shown at cost including directly attributable cost for bringing the assets to its working conditions for the intended use, less accumulated depreciation.

D. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion.

E. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is recognized in Statement of Profit & Loss Account to the extent of reduction. The impairment loss recognized in previous accounting period, if any, is reversed if there is any change in estimate of the recoverable amount.

F. Depreciation

Depreciation on tangible assets is provided on written down value method over the useful life of assets as prescribed under Part C of Schedule II of the Companies Act, 2013. Depreciation for assets purchased /sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on written down value method, commencing from the date the asset is available to the Company for its use.

G. Inventories

Stock in trade comprises of the unsold residential units. The units are valued at total cost of construction including land, construction expenses and overheads directly attributable to the project.

H. Investments

Investments are classified into Current & Non-Current Investments. Current investments are stated at lower of cost / fair value. Non-Current investments are stated at cost. Provision for diminution in value is made only if such diminution is other than temporary.

I. Revenue Recognition

a) The revenue recognition for the construction activity is based on the percentage completion method in accordance with the relevant Guidance Notes & Accounting Standards.

b) The Revenue from Sales is recognized net of Service Tax and VAT.

c) In respect of Fund based activities, interest is accrued in respect of loans/advances where the accounts are regular.

d) Share Investment profit is accounted on sale of shares.

e) Dividend income is recognized as and when right to receive payment is established.

f) Rental income / lease rentals are recognized on accrual basis in accordance with the terms of agreement.

J. Provision for Tax and Deferred Tax

Provision for tax is made after considering the benefits available under the provisions of The Income Tax Act 1961. Deferred Tax is accounted by computing the tax effect of timing difference which arises during the year and reversed in subsequent year.

K. Events Occurring after the date of Balance Sheet

Material events occurring after the date of Balance Sheet are taken into cognizance.

L. Provisions, Contingent Liabilities and Contingent Assets

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

M. Cash & Cash Equivalents

Cash and cash equivalents comprise cash and deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.


Mar 31, 2014

A. Basis of Accounting

The Financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with applicable accounting standards and the provisions of the Companies Act, 1956 and the provisions of Companies Act, 2013 (to the extent notified) read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013.

B. Use of Estimates

Preparation of Financial Statement in conformity with Generally Accepted Accounting Principles requires Company Management to make estimates and assumptions that affect reported balance of Assets & Liabilities and disclosures relating to Contingent Assets & Liabilities as on the date of Financials and reported amounts of income & expenses during the period. Examples of such estimate include profits expected to be earned on projects carried on by the Company, Contract Costs expected to be incurred to completion of project, provision for Doubtful Debts, Income Taxes, etc. Actual results could differ from these estimates. Differences, if any, between the actual result and estimates are recognized in the period in which the result are known or materialized.

C. Fixed Assets

Fixed Assets are shown at cost including directly attributable cost for bringing the assets to its working conditions for the intended use less accumulated depreciation.

D. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion.

E. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is recognized in Statement of Profit & Loss Account to the extent of reduction. The impairment loss recognized in previous accounting period, if any, is reversed if there is any change in estimate of the recoverable amount.

F. Depreciation

Depreciation has been provided on Written Down Value basis in accordance with the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

G. Inventories

Stock in trade comprises of the unsold residential units. The units are valued at total cost of construction including land, construction expenses and overheads directly attributable to the project.

H. Investments

Investments are classified into Current & Non-Current Investments. Current investments are stated at lower of cost/fair value. Non-Current investments are stated at cost. Provision for diminution in value is made only if such diminution is other than temporary.

I. Revenue Recognition

a) The revenue recognition for the construction activity is based on the percentage completion method in accordance with the relevant Guidance Notes& Accounting Standards.

b) The Revenue from Sales is recognized net of Service Tax and VAT

c) In respect of Fund based activities, interest is accrued in respect of loans/advances where the accounts are regular.

d) Share I nvestment profit is accounted on sale of shares.

e) Dividend income is recognized as and when rightto receive payment is established.

f) Rental income/ lease rentals are recognized on accrual basis in accordance with the terms of agreement.

J. Provision for Tax and Deferred Tax

Provision for tax is made after considering the benefits available under the provisions of The Income Tax Act 1961. Deferred Tax is accounted by computing the tax effect of timing difference which arises during the year and reversed in subsequent year.

K. Events Occurring after the date of Balance Sheet

Material events occurring after the date of Balance Sheet are taken into cognizance.

L. Provisions, Contingent Liabilities and Contingent Assets

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


Mar 31, 2012

A. Basis of Accounting

The Financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with applicable accounting standards and the provisions of the Companies Act, 1956.

During the year, Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company for preparation and presentation of its financial statements. The company has reclassified the previous year figures in accordance with the requirements applicable in current year.

B. Use of Estimates

Preparation of Financial Statement in conformity with Generally Accepted Accounting Principles requires Company Management to make estimates and assumptions that affect reported balance of Assets & Liabilities and disclosures relating to Contingent Assets & Liabilities as on the date of Financials and reported amounts of income & expenses during the period. Examples of such estimate include profits expected to be earned on projects carried on by the Company, Contract Costs expected to be incurred to completion of project, provision for Doubtful Debts, Income Taxes, etc. Actual results could differ from these estimates. Differences, if any, between the actual result and estimates are recognized in the period in which the result are known or materialized.

C. Fixed Assets

Fixed Assets are shown at cost including directly attributable cost for bringing the assets to its working conditions for the intended use less accumulated depreciation.

D. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion.

E. Impairment of Assets

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is recognized in the Statement of Profit and Loss to the extent of reduction. The impairment loss recognized in previous accounting period, if any, is reversed if there is any change in estimate of the recoverable amount.

F. Depreciation

Depreciation has been provided on Written Down Value basis in accordance with the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

G. Inventories

Stock in trade comprises of the unsold residential units. The units are valued at total cost of construction including land, construction expenses and overheads directly attributable to the project.

H. Investments

Investments are classified into Current & Non-Current Investments. Current investments are stated at lower of cost / fair value. Non-Current investments are stated at cost. Provision for diminution in value is made only if the such diminution is other than temporary.

I. Revenue Recognition

a) The revenue recognition for the construction activity for Thane project is based on the percentage completion method in accordance with the relevant Guidance Notes & Accounting Standards.

b) The Revenue from Sales is recognized net of Service Tax and VAT.

c) In respect of Fund based activities, interest is accrued in respect of loans/advances where the accounts are regular.

d) Share Investment profit is accounted on sale of shares.

i) Dividend income is recognized as and when right to receive payment is established.

ii) Rental income / lease rentals are recognized on accrual basis in accordance with the terms of agreement. J. Provision for Tax and Deferred Tax Provision for tax is made after considering the benefits available under the provisions of The Income Tax Act 1961.

Deferred Tax is accounted by computing the tax effect of timing difference which arises during the year and reversed in subsequent year.

K. Events Occurring after the date of Balance Sheet

Material events occurring after the date of Balance Sheet are taken into cognizance.


Mar 31, 2010

A. Basis of Accounting

The Financial statements are prepared under the historical cost convention, on the accrual basis of accounting in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

B. Use of Estimates

Preparation of Financial Statement in conformity with Generally Accepted Accounting Principles requires Company Management to make estimates and assumptions that affect reported balance of Assets & Liabilities and disclosures relating to Contingent Assets & Liabilities as on the date of Financials and reported amounts of income & expenses during the period. Examples of such estimate include profits expected to be earned on projects carried on by the Company, Contract Costs expected to be incurred to completion of project, provision for Doubtful Debts, Income Taxes, etc. Actual results could differ from these estimates. Differences, if any, between the actual result and estimates are recognized in the period in which the result are known or materialized

C. Fixed Assets

Fixed Assets are shown at cost including directly attributable cost for bringing the assets to its working conditions for the intended use less depreciation.

D. Depreciation

Depreciation has been provided on Written down Value basis in accordance with the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, as amended by the notification GSR 756 (E) dated 16/12/1993 issued by the Department of Company Affairs. Depreciation is calculated at amended rates from 1st April 1993 onwards.

E. Inventories

Stock in trade refers to unsold residential units. These are valued at Construction cost including cost of land and other development cost attributable to the said Project. Construction Work-in-progress, including stock of materials is carried at cost. Cost includes materials, direct expenses and overheads.

F. Investments

Investments are shown in Balance Sheet at cost. In the opinion of the management, the decline in the value of investment in shares is on account of market forces and is not of permanent nature and therefore not provided in the books of accounts.

G. Accounting for Construction Activities

i) Revenue in respect of Construction activities with respect to Thane Project recognized based on Percentage Completion Method in accordance with Accounting Standard 7 issued by the Institute of Chartered Accountants of India. The revenue is recognized on the basis of stage of completion as certified by the Architect.

ii) As regards to Construction activities, the Company has accounted the income in respect of sold units on execution of the agreements. The unsold unit has been shown as closing stock in trade, which is valued at cost.

H. Income Recognition

i) In respect of Fund based activities, interest is accrued in respect of loans/advances where the accounts are regular.

ii) Share Investment profit is accounted on sale of shares.

iii) Dividend income is recognized as and when right to receive payment is established.

iv) Rental income / lease rentals are recognized on accrual basis in accordance with the terms of agreement.

v) As Regards Construction activities, Income is recognized as mentioned in H (i).

I. Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash Flow from regular revenue generating, financing and investing activities of the Company is segregated.

J. Events occurring after the date of Balance Sheet

Material events occurring after the date of Balance Sheet are taken into cognizance.

K. Earning Per Share

Basic Earning per Share is computed by dividing net income by the weighted average number of common stock outstanding during the period.

The number of shares used in computing diluted earning per share comprises the weighted average shares considered for deriving basic Earning per Share, and also the weighted average number of equity shares that could have been issued on the conversion of all the dilutive potential Equity Shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value (i.e. the average market value of the outstanding shares). Diluted potential Equity Shares are deemed converted as of the beginning of the period unless issued at a later date.

L. Impairment of Assets

At the end of each year, the company determines whether a provision should be made for impairment loss on Fixed Assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard-28 "Impairment of Assets" issued by the Institute of Chartered Accountants of India, where the recoverable amount of any fixed asset is lower than its carrying amount, a provision for impairment loss on Fixed Assets is made for the difference.

 
Subscribe now to get personal finance updates in your inbox!