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Accounting Policies of Joy Realty Ltd. Company

Mar 31, 2015

(a) Accounting Convention & Concepts

The accounts are prepared in accordance with accounting principles generally accepted and the guidelines issued by the Institute of Chartered Accountants of India wherever applicable. The Company generally follows mercantile system of accounting under historical cost convention

(b) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The estimates used in the preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

(c) Fixed Assets

All the Fixed Assets are stated at cost less accumulated depreciation.

(d) Depreciation

Depreciation on assets has been provided based on useful life of assets as per Schedule II of the Companies Act,2013.

On Expiry of the useful life of the asset, the carrying amount less the residual value of the asset will be transferred to the opening balance of Reserves & Surplus.

(e) Investments

Long-term investments are stated at cost, which includes other incidental expenses.

(f) Real Estate Business Inventories:

Work-in-Progress of Projects

(i) Inventories are valued at cost or net realizable value whichever is less. The Construction Work in Progress includes Cost of Land, Properties, Development Rights, TDR Rights, Construction Costs and Direct Expenses attributable to the projects.

(ii) Inventories of finished tenements, if any, are valued at cost or estimated net realizable value which ever is less, as certified by management.

(g) Income

Generally revenue is recognized when the income is determined to be realized on accrual basis or actually received.

(h) Expenses

All revenue expenses are charged on the mercantile method of accounting.

(i) Employees'benefits policy:

The Company does not make any provision forgratuity/retirement benefits payable to the employees. The amounts in respect of gratuity/retirement benefits payable in accordance with the Payment of Gratuity Act, 1972 / other statutory provisions, if any, shall be accounted in the year of actual payment thereof.'

(j) Taxation

Tax expense comprises current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.The deferred tax resulting from timing difference between taxable and accounting income is accounted using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset Is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

(k) Provisions & Contingent Liabilities:

The company creates the provision when there is a present obligation as a result of past event that probably required an outflow of resources and reliable estimate can be made of the amount of the outflow.

Disclosure for a Contingent Liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosures made.


Mar 31, 2014

(a) Accounting Convention & Concepts

The accounts are prepared in accordance with accounting principles generally accepted and the guidelines issued by the Institute of Chartered Accountants of India wherever applicable. The Company generally follows mercantile system of accounting under historical cost convention.

(b) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The estimates used in the preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

(c) Fixed Assets

All the Fixed Assets are stated at cost less accumulated depreciation.

(d) Depreciation

Depreciation on assets has been provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956 as amended.

(e) Investments

Long-term investments are stated at cost, which includes other incidental expenses.

(f) Real Estate Business

Inventories:

Work-in-Progress of Projects

(i) Inventories are valued at cost or net realizable value whichever is less. The Construction Work in Progress includes Cost of Land, Development Rights, TDR Rights, Construction Costs and Direct Expenses attributable to the projects.

(ii) Inventories of finished tenements, if any, are valued at cost or estimated net realizable value whichever is less, as certified by management.

(g) Income

Generally revenue is recognized when the income is sure to realize on accrual basis or actually received.

(h) Expenses

Revenue expenses are charged on the mercantile method of accounting.

(i) Employees'' benefits policy:

The Company does not make any provision for gratuity/retirement benefits payable to the employees. The amounts in respect of gratuity/retirement benefits payable in accordance with the Payment of Gratuity Act, 1972 / other statutory provisions, if any, shall be accounted in the year of actual payment thereof.

(j) Taxation

Tax expense comprises current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961 The deferred tax resulting from timing difference between taxable and accounting income is accounted using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset Is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

(k) Provisions & Contingent Liabilities:

The company creates the provision when there is a present obligation as a result of past event that probably required an outflow of resources and reliable estimate can be made of the amount of the outflow.

Disclosure for a Contingent Liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosures made.


Mar 31, 2013

(a) Accounting Convention & Concepts

The accounts are prepared in accordance with accounting principles generally accepted and the guidelines issued by the Institute of Chartered Accountants of India wherever applicable. The Company generally follows mercantile system of accounting under historical cost convention.

(b) Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The estimates used in the preparation of the financial statements are prudent and reasonable. Difference between the actual results and estimates are recognised in the period in which the results are known/ materialized.

(c) Fixed Assets

All the Fixed Assets are stated at cost less accumulated depreciation.

(d) Depreciation

Depreciation on assets has been provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956 as amended.

(e) Investments

Long-term investments are stated at cost, which includes other incidental expenses.

(f) Real Estate Business Inventories: Work-in-Proaress of Projects

(i) Inventories are valued at cost or net realizable value whichever is less. The Construction Work in Progress includes Cost of Land, Development Rights, TDR Rights, Construction Costs and Direct Expenses attributable to the projects. (ii) Inventories of finished tenements, if any, are valued at cost or estimated net realizable value whichever is less, as certified by management.

(g) Income

Generally revenue is recognized when the income is sure to realize on accrual basis or actually received.

(h) Expenses

Revenue expenses are charged on the mercantile method of accounting.

(i) Employees'' benefits policy:

The Company does not make any provision for gratuity/retirement benefits payable to the employees. The amounts in respect of gratuity/retirement benefits payable in accordance with the Payment of Gratuity Act, 1972 / other statutory provisions, if any, shall be accounted in the year of actual payment thereof.

(j) Taxation

Tax expense comprises current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.The deferred tax resulting from timing difference between taxable and accounting income is accounted using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset Is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

(k) Provisions & Contingent Liabilities :

The company creates the provision when there is a present obligation as a result of past event that probably required an outflow of resources and reliable estimate can be made of the amount of the outflow.

Disclosure for a Contingent Liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosures made.


Mar 31, 2012

(a) Accounting Convention & Concepts

The accounts are prepared in accordance with accounting principles generally accepted and the guidelines issued by the Institute of Chartered Accountants of India wherever applicable. The Company generally follows mercantile system of accounting under historical cost convention.

(b) Fixed Assets

All the Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

Depreciation on assets has been provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1956 as amended.

(d) Investments

Long-term investments are stated at cost, which includes other incidental expenses.

(e) Real Estate Business Inventories:

Work-in-Proaress of Projects

Inventories are valued at cost or net realizable value whichever is less. The Construction Work in Progress includes cost of Land, Development Rights, TDR Rights, Construction Costs and Direct Expenses incidental to the projects undertaken by the Company. All the direct expenses incurred are charged to work in progress account fully.

Inventories of finished tenements, if any, are valued at cost or estimated net realizable value whichever is less, as certified by management.

(f) Income

Generally revenue is recognized when the income is sure to realize on accrual basis or actually received.

(g) Expenses

The expenses pertaining to specific real estate project are considered as work in progress until the project is completed and revenue is recognized and all other revenue expenses are charged on the mercantile method of accounting.

(h) Employees' benefits policy:

The Company does not make any provision for gratuity/retirement benefits payable to the employees. The amounts in respect of gratuity/retirement benefits payable in accordance with the Payment of Gratuity Act, 1972 / other statutory provisions, if any, shall be accounted in the year of actual payment thereof.

(i) Provisions & Contingent Liabilities :

The company creates the provision when there is a present obligation as a result of past event that probably required an outflow of resources and reliable estimate can be made of the amount of the outflow.

Disclosure for a Contingent Liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosures made.


Mar 31, 2011

(a) Accounting Convention & Concepts

The accounts are prepared in accordance with accounting principles generally accepted and the guidelines issued by the Institute of Chartered Accountants of India wherever applicable. The Company generally follows mercantile system of accounting under historical cost convention.

(b) Fixed Assets

All the Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation . Depreciation on owned assets has been provided on straight-line method at the

rates prescribed by Schedule XIV of the Companies Act, 1956 as amended.

(d) Investments

Long-term investments are stated at cost, which includes brokerage. Provision for the diminution in the value of investment is not made since it is considered long term in nature in the opinion of the management.

(e) Real Estate Business Inventories:

Work-in-Progress of Projects

Inventories are valued at lower of cost or net realizable value. The Construction Work in Progress includes cost of Land, Development Rights, TDR Rights, Construction Costs and Expenses incidental to the projects undertaken by the Company. All the expenses incurred are charged to work in progress account fully.

Inventories of finished tenements, if any, are valued at cost or estimated net realizable value whichever is less, as certified by management.

(f) Income

Income is accounted generally on accrual basis. The Revenue is recognized when actually received or the income is sure to realize.

(g) Expenses

The expenses pertaining to specific real estate project are considered as work in progress until the project is completed and revenue is recognized.

(h) Employees' benefits policy:

The Company has paid short term benefits to their employees in the form of Employees Provident Fund, Medical Reimbursement, Group Insurance Scheme as may be applicable under the terms of their employment.

(i) Contingent Liabilities :

A disclosure for a Contingent Liability is made when there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, and are not provided for in the accounts and are separately disclosed in the notes on account forming part of the accounts.


Mar 31, 2010

(a) Accounting Convention & Concepts

The accounts are prepared in accordance with accounting principles generally accepted and the guidelines issued by the Institute of Chartered Accountants of India wherever applicable. The Company generally follows mercantile system of accounting under historical cost convention.

(b) Fixed Assets

Allthe Fixed Assets are stated at cost less accumulated depreciation.

(c) Depreciation

Depreciation on owned assets has been provided on straight-line method at the rates prescribed by Schedule XIV of the Companies Act, 1 956 as amended.

(d) Investments

Long-term investments are stated at cost, which includes brokerage. Provision for the diminution in the value of investment is not made since it is considered long term in nature in the opinion of the management.

(e) Real Estate Business Inventories:

Inventories are valued at lower of cost or net realizable value. The Construction Work in Progress includes cost of Land, Development Rights, TDR Rights, Construction Costs and Expenses incidental to the projects undertaken by the Company. All the expenses incurred are charged to work in progress account fully. Inventories of finished tenements, if any, are valued at cost or estimated net realizable value whichever is less, as certified by management.

(f) Income

Income is accounted generally on accrual basis. The Revenue is recognized when actually received or the income is sure to realize.

(g) Expenses

The expenses pertaining to specific real estate project are considered as work in progress until the project is completed and revenue is recognized.

(h) Employees benefits policy:

The Company has adopted human resources policy for gratuity liability, leave travel allowance and leave salary on cash basis as may be applicable under the provisions of the respective act.

 
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