Home  »  Company  »  Kamanwala Housing Co  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Kamanwala Housing Construction Ltd. Company

Mar 31, 2014

1.1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared to comply in respects with the notified accounting standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The Financial Statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

Presentation of Financial Statements as per the revised Schedule VI notified under the Companies Act,1956, has become applicable to the Company, from previous year.

1.2. Fixed Assets (Own)

Fixed Assets are stated at cost of acquisition including attributable interest & financial costs till date of acquisitions / installation of the assets and improvement thereon less accumulated depreciation/amortization, impairment losses, if any.

1.3. Depreciation and Amortization

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation in respect of assets acquired during the year has been provided on pro-rata basis.

1.4. Investments

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investment are made, are classified as current investments. All other investments are classified as long term investments.

Current Investments are carried in the Financial Statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of Long Term investments is made only if, such decline in the opinion of management is other than temporary.

1.5. Inventory

Items of inventory are measured as per basis mentioned below:- Raw Materials are valued at cost on FIFO basis.

Work In Progress is valued at cost including cost of finance, which consist of interest on loan from bank which is capitalized in proportion of its area remained unsold irrespective of its construction stage.

1.6. Gratuity/Retirement Benefits

Gratuity/Retirement Benefits are classified as Long Term Provisions as it will be payable after 12 months from the reporting date.

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service. The total accrued liability of Gratuity will be deposited in Gratuity Fund with LIC of India in 2 years. The Company has formed the Trust for Group Gratuity Scheme with Life Insurance Corporation of India.

1.7. Revenue Recognition

Revenue from sale of flat is recognized on issue of letter of allotment/execution of agreement (whichever is earlier) as the project is near to completion.

1.8. Service Tax and Value Added Tax

Service Tax is paid on the services provided or to be provided on receipts basis. Value Added Tax is paid on the basis of Agreement registered during the year for booking made after 01.04.2010 inclusive of current year.

1.9. Provision for Current and Deferred Tax

1.9.1 Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities in the Company''s case.

1.9.2 Provisions for Current Tax is made after taking into considerations benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

1.10. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements.

1.11. other Information and Explanations

1.11.1. Balances in various accounts included in Sundry Debtors, Sundry Creditors, Advances Recoverable, Deposits/ Advances from Customers and Joint Venture Accounts are subject to confirmation.

1.11.2. In the opinion of the Board, the aggregate value of current assets (including stock) and loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.11.3. All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the same will be executed directly in favor of Co-operative Societies whenever they are formed.

1.11.4. The Company has no information as to whether any of its suppliers constitute small-scale undertakings and therefore, the amount due to such suppliers has not been separately identified.

1.11.5. During the current year assessment of Income Tax for the A.Y. 2011-12 was completed and Order was passed by the Additional Commissoner of Income tax, wherein demand of Income Tax raised by the authority of Rs. 3.78 Crores. However, Company has filed an appeal with the Commissioner of Income Tax (Appeal).


Mar 31, 2013

1.1. Basis of Preparation of Financial Statements

The fnancial statements have been prepared to comply in respects with the notifed Accounting Standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The fnancial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

Presentation of fnancial statements as per the revised Schedule VI notifed under the Companies Act, 1956, has become applicable to the Company, from previous year.

1.2. Fixed Assets (own)

Fixed Assets are stated at cost of acquisition including attributable interest & fnancial costs till date of acquisitions/ installation of the assets and improvement thereon less accumulated depreciation/amortization, impairment losses, if any.

1.3. Depreciation and Amortization

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation in respect of asset acquired during the year has been provided on pro-rata basis.

1.4. Investments

Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classifed as current investments. All other investments are classifes as long term investments.

Current Investments are carried in the fnancial statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of Long Term Investments is made only if, such decline in the opinion of management is other than temporary.

1.5. Inventory

Items of inventory are measured as per basis mentioned below:-

Raw Materials are valued at cost on FIFO basis.

Work In Progress is valued at cost including cost of fnance, which consist of interest on loan from bank which is capitalized in proportion of its area remain unsold irrespective of its construction stage.

Finished Goods are valued at cost including borrowing cost.

1.6. Gratuity/Retirement Benefts

Gratuity/Retirement Benefts is classifed as Long Term Provisions as it will be payable after 12 months from the reporting date.

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service. The total accrued liability of Gratuity will be deposited in Gratuity Fund with LIC of India in 5 years. The Company has formed the Trust for Group Gratuity Scheme with Life Insurance Corporation of India.

1.7. Revenue Recognition

Revenue from sale of fat is recognized on issue of letter of allotment/execution of agreement (whichever is earlier) and also sale completely recorded on booking of previous years as the project is near to completion.

1.8. Service Tax and Value Added Tax

Service tax is paid on the services provided or to be provided on receipts basis. Value Added Tax is paid on the basis of Agreement registered during the year or booking made after 01.04.2010 inclusive of current year.

1.9. Provision for Current and Deferred Tax

1.9.1 Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities in Company''s case.

1.9.2 Provisions for Current Tax is made after taking into considerations benefts admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

1.9.3 Deferred Tax Liability has been reversed during the year and added in Statement of Proft and Loss as wrongly calculated in previous year.

1.10. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outfow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outfow of resources. Contingent assets are neither recognized nor disclosed in the fnancial statements.

1.11. other Information and Explanation

1.11.1. Balances in various accounts included in Sundry Debtors, Sundry Creditors, Advances Recoverable, Deposits/ Advances from Customers and Joint Venture Accounts are subject to confrmation.

1.11.2. In the opinion of the Board, the aggregate value of current assets (including stock) and loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.11.3. All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the same will be executed directly in favor of Co-operative Societies whenever they are formed.

1.11.4. The Company has no information as to whether any of its suppliers constitute small-scale undertakings and therefore, the amount due to such suppliers has not been separately identifed.

1.11.5. The Company has taken the advances from various parties against the ongoing projects at BKC, Malad and Turbhe. Basically to promote the sale of the Company they can get minimum compensation or they can also apply the option to buy the Property at prevailing market rate. Meanwhile the Company is regularly paying commitment charges to the parties on amount paid by them.


Mar 31, 2012

1.1. Basis of Preparation of Financial Statements

The financial statements have been prepared to comply in respects with the notified Accounting Standards by Companies Accounting Standards Rules, 2006 and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting principles generally accepted in India.

During the year ended March 31, 2012, the revised schedule VI notified under the Companies Act,1956, has become applicable to the Company, for the preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. The Company has also classified previous yearRss figures in accordance with the requirements applicable in the current year.

1.2. Fixed Assets (Own)

Fixed Assets are stated at cost of acquisition including attributable interest & financial costs till date of acquisitions / installation of the assets and improvement thereon less accumulated depreciation/amortization, impairment losses, if any.

1.3. Depreciation and Amortization

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956. Depreciation in respect of asset acquired during the year has been provided on pro-rata basis.

1.4. Investments

I nvestments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long term investments.

Current Investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long Term Investments are stated at cost of acquisition. Provision for diminution in the value of Long Term investments is made only if, such decline in the opinion of management is other than temporary.

1.5. Inventory

Items of inventory are measured as per basis mentioned below:- Raw Materials are valued at cost on First-In-First-Out basis.

Work In Progress is valued at cost including cost of finance, which consist of interest on loans from Banks capitalized in proportion of its area remain unsold irrespective of its construction stage.

Finished Goods are valued at cost including borrowing cost.

1.6. Gratuity/Retirement Benefits

Gratuity/Retirement Benefits are classified as Long Term Provisions as it will be payable after 12 months from the reporting date.

Gratuity has been determined and provided for all employees who have completed 5 years of continuous service. The total accrued liability of Gratuity will be deposited in Gratuity Fund with LIC of India in 5 years. The Company has already formed the Trust for Group Gratuity Scheme with Life Insurance Corporation of India.

1.7. Revenue Recognition

Revenue from sale of flats is recognized on issue of letter of allotment/execution of agreement (whichever is earlier), in proportion to completion of construction of flats and/or value of letter of demand issued during the year.

1.8. Service Tax and Value Added Tax

Service Tax has been paid on the services provided or to be provided on receipts basis.

1.9. Provision for Current and Deferred Tax

1.9.1 Provision for Current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decisions of appellate authorities in CompanyRss case

1.9.2 Provisions for Current Tax is made after taking into considerations benefits admissible under the provisions of Income Tax Act, 1961. Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date.

1.10. Provisions, Contingent Liabilities and Contingent Assets

The Company recognizes a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for contingent liability is made when there is possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.11. other Information and Explanation

1.11.1. Balances in various accounts included in Sundry Debtors, Sundry Creditors, Advances Recoverable, Deposits/ Advances from Customers and Joint Venture Accounts are subject to confirmation.

1.11.2. I n the opinion of the Board, the aggregate value of current assets (including stock) and loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.11.3. All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the same will be executed directly in favor of Co-operative Societies whenever they are formed.

1.11.4. The Company has no information as to whether any of its suppliers constitute small-scale undertakings and therefore, the amount due to such suppliers has not been separately identified.

1.11.5. The Company has taken the advances from various parties against the ongoing projects at BKC, Malad and Turbhe. Basically to promote the sale of the Company they can get minimum compensation or they can also apply the option to buy the property at prevailing market rate. Meanwhile the Company is regularly paying commitment charges to the parties on amount paid by them.


Mar 31, 2010

(a) System of Accounting:

The Company adopts the accrual basis in the preparation of the accounts.

(b) Sales:

Sales of Flats are accounted for at value in the year in which the agreements were entered into respective of the stage of completion of the projects Savoy Residency at Santacruz (West) & Manavsthal at Malad (West).

(c) Fixed Assets:

Fixed Assets are stated at cost.

(d) Depreciation:

Depreciation on Fixed Assets has been provided on Straight Line Method at the current effective rates prescribed under Schedule XIV to the Companies Act, 1956.

(e) Investments:

Long Term Investments are stated at cost of acquisition.

(f) Gratuity/Retirement Benefits:

Provision for Gratuity has been made and determined the liability for gratuity of eligible employees upto March, 2010.

(g) Stock:

Inventories are valued at cost.

(h) Contingent Liabilities:

These are disclosed by way of Notes to the Accounts.

 
Subscribe now to get personal finance updates in your inbox!