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Accounting Policies of East Buildtech Ltd. Company

Mar 31, 2014

1. Basis of preparation of accounts

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India, mandatory accounting standards notified under the Companies (Accounting Standards) Rules. 2006, (as amended) and the relevant provisions of the Companies Act. 1956. The Financial Statements have been prepared under the historical cost convention on an accrual basis, except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies applied by the Company are consistent with those used in the previous year.

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act. 1956. Based on the nature of services/contracts and time between the acquisition of assets for processing and their realisation in cash or cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

2) Revenue Recognition

a) As per the accounting policy so far adopted by the Company, the Profit or Loss from the booking/sale of the Commercial space in Chokhani Square will be taken when actual possession is given to the parties since this is the timing when significant risks & rewards are transferred to the buyer.

b) Income from construction contract is calculated on the basis of, lower of percentage completion

i) As per technical evaluation;

ii) An estimated cost up to the date and also taking into account estimated future liability accruing out of the contract including contingencies warranties, claims etc.

3) Valuation of Stock

Stock of Commercial space has been valued at Cost including the cost of land appurtenant thereto or net realizable value whichever is less. The cost includes all project expenses incurred.

4) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Long-term 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. The current investments are stated at lower of cost or at fair value.

5) Tangible fixed assets

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment provision. The cost comprises the purchase price (net of Cenvat and VAT wherever applicable) and any attributable cost of bringing the assets to its working condition for its intended use.

6) Depreciation

Depreciation has been calculated on written down value method at the rates specified in Schedule XIV (As amended) read with section 205 (2) (b) of Companies Act, 1956 and have been charged on pro-rata basis with reference to the period of use of such assets.

7) Impairment of tangible and intangible assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors, An impairment loss is recognised wherever the carrying amount of an asset exceeds it''s recoverable amount. The recoverable amount is the greater of the asset''s net selling price and it''s value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation II there was no impairment.

8) Retirement and other benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the ICAI.

(a) Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which 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.

(b) Gratuity

Gratuity is a post employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity-is the present value of the defined benefit/ obligation at the balance sheet date less the fair value of plan assets, together with adjustment for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent Actuary using the Projected Unit Credit Method.

Actuarial gains and losses, if any, arising from past experience and changes in actuarial assumptions are charged or credited to the Statement of Profit and Loss Account in the year to which such gains or losses relate.

(c) Leave Encashment

Liability in respect of leave encashment becoming due or expected after the balance date is estimated on the basis of an actuarial valuation performed by an independent Actuary using the Projected Unit Credit Method.

9) Income Taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax is recognised at the Balance Sheet date, subject to the considerations of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

c) The Company has not allotted any fully paid up shares pursuant to contract(s) without payment being received in cash nor has allotted any fully paid up shares by way of bonus shares nor has bought back any class of shares during the period of five years immediately preceding the balance sheet date


Mar 31, 2013

1. Basis of preparation of accounts

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India, mandatory accounting standards notified under the Companies (Accounting Standards) Rules. 2006, (as amended) and the relevant provisions of the Companies Act. 1956. The Financial Statements have been prepared under the historical cost convention on an accrual basis, except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies applied by the Company are consistent with those used in the previous year.

All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act. 1956. Based on the nature of services/contracts and time between the acquisition of assets for processing and their realisation in cash or cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

2) Revenue Recognition

a) As per the accounting policy so far adopted by the Company, the Profit or Loss from the booking/ sale of the Commercial space in Chokhani Square will be taken when actual possession is given to the parties since this is the timing when significant risks & rewards are transferred to the buyer.

b) Income from construction contract is calculated on the basis of, lower of percentage completion

i) As per technical evaluation;

ii) An estimated cost up to the date and also taking into account estimated future liability accruing out of the contract including contingencies warranties, claims etc.

3) Valuation of Stock

Stock of Commercial space has been valued at Cost including the cost of land appurtenant thereto or net realizable value whichever is less. The cost includes all project expenses incurred.

4) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments. Long-term 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. The current investments are stated at lower of cost or at fair value.

5) Tangible fixed assets

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment provision. The cost comprises the purchase price (net of Cenvat and VAT wherever applicable) and any attributable cost of bringing the assets to its working condition for its intended use.

6) Depreciation

Depreciation has been calculated on written down value method at the rates specified in Schedule XIV (As amended) read with section 205 (2) (b) of Companies Act, 1956 and have been charged on pro-rata basis with reference to the period of use of such assets.

7) Impairment of tangible and intangible assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors, An impairment loss is recognised wherever the carrying amount of an asset exceeds it''s recoverable amount. The recoverable amount is the greater of the asset''s net selling price and it''s value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and risks specific to the asset

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognised impairment loss is increased or reversed depending on changes in circumstances. However, the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation II there was no impairment.

8) Retirement and other benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the ICAI.

(a) Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which 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.

(b) Gratuity

Gratuity is a post employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date less the fair value of plan assets, together with adjustment for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent Actuary using the Projected Unit Credit Method.

Actuarial gains and losses, if any, arising from past experience and changes in actuarial assumptions are charged or credited to the Statement of Profit and Loss Account in the year to which such gains or losses relate.

(c) Leave Encashment

Liability in respect of leave encashment becoming due or expected after the balance date is estimated on the basis of an actuarial valuation performed by an independent Actuary using the Projected Unit Credit Method.

9) Income Taxes

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted

at the Balance Sheet date. Deferred tax is recognised at the Balance Sheet date, subject to the considerations of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

10) Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, fixed deposits with banks which are short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.


Mar 31, 2012

1. Accounting Convention :

These Accounts are prepared under the historical cost convention and on the basis of going concern with revenues recognized and expenses accounted on their accrual, including provision/adjustments during the year.

2) Valuation of Stock:

Stock of Commercial space has been valued at Cost including the cost of land appurtenant thereto or net realizable value whichever is less. The cost includes all project expenses incurred.

3) Depreciation:

Depreciation has been calculated on written down value method at the rates specified in Schedule XIV (As amended) read with section 205 (2) (b) of Companies Act, 1956 and have been charged on prorata basis with reference to the period of use of such assets.

4) Impairment of Assets

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount being the higher of the asset's net selling price and its value in use. Value in use is based on the present value of the estimated future cash flows relating to the asset. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (i.e. cash generating units).

5) Investments:

Long-term 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. The current investments are stated at lower of cost or at quoted/fair value computed category wise.

6) Fixed Assets :

Fixed Assets are valued at historical cost less accumulated depreciation.

7) Revenue Recognition :

a) As per the accounting policy so far adopted by the Company, the Profit & Loss from the booking/sale of the Commercial space in Chokhani Square will be taken when actual possession is given to the parties. Since this is the timing when significant risks & rewards are transferred to the buyer.

b) Income from construction contract is calculated on the basis of, lower of percentage completion

i. as per technical evaluation

ii. an estimated cost up to the date as also taking into account estimated future liability accruing out of the contract including contingencies warranties, claims etc.

8) Retirement and other benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the ICAI.

(a) Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which 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.

(b) Gratuity

Gratuity is a post employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date less the fair value of plan assets, together with adjustment for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by and independent actuary using the projected unit credit method.

Actuarial gains and losses, if any, arising from past experience and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year to which such gains or losses relate.

(c) Leave Encashment

Liability in respect of leave encashment becoming due or expected after the balance date is estimated on the basis of an actuarial valuation performed by an independent Actuary using the projected unit credit method.


Mar 31, 2010

1. Accounting Convention :

These Accounts are prepared under the historical cost convention and on the basis of going concern with revenues recognized and expenses accounted on their accrual, including provision/adjustments during the year.

2) Valuation of Stock:

Stock of Commercial space has been valued at Cost including the cost of land appurtenant thereto or net realizable value whichever is less. The cost includes all project expenses incurred.

3) Depreciation:

Depreciation has been calculated on written down value method at the rates specified in Schedule XIV (As amended) read with section 205 (2) (b) of Companies Act, 1956 and have been charged on prorata basis with reference to the period of use of such assets.

4) Investments:

Long-term 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. The current investments are stated at lower of cost or at quoted/fair value computed categorywise.

5) Fixed Assets :

Fixed Assets are valued at historical cost less accumulated depreciation.

6) Revenue Recognition :

a) As per the accounting policy so far adopted by the Company, the Profit & Loss from the booking/sale of the Commercial space in Chokhani Square will be taken when actual possession is given to the parties. Since this is the timing when significant risks & rewards are transferred to the buyer.

b)Income from construction contract is calculated on the basis of, lower of percentage completion

i. as per technical evaluation

ii. an estimated cost up to the date as also taking into account estimated future liability accruing out of the contract including contingencies warranties, claims etc.

7. Retirement and other benefits :

Expenses and liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the ICAI.

(a) Provident Fund

The Company makes contribution to statutory provident fund in accordance with Employees Provident Fund and Miscellaneous Provisions Act, 1952 which 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.

(b) Gratuity

Gratuity is a post employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date less the fair value of plan assets, together with adjustment for unrecognized actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by and independent actuary using the projected unit credit method.

Actuarial gains and losses, if any, arising from past experience and changes in actuarial assumptions are charged or credited to the Profit and loss account in the year to which such gains or losses relate.

(c) Leave Encashment

Liability in respect of leave encashment becoming due or expected after the balance date is estimated on the basis of an actuarial valuation performed by an independent Actuary using the projected unit credit method.

 
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