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Accounting Policies of Manvijay Development Company Ltd. Company

Mar 31, 2014

1.1 Basis of preparation of Financial Statements :

The financial statements are prepared under the historical cost convention, in accordance with applicable mandatory accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act,1956.

1.2 Use of estimates

The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise

1.3 Valuation of Inventories :

Stock-in-trade are valued at cost.

1.4 Other Income

Interest income is accounted on accrual basis. Dividend from Companies is accounted as income in the year in which they are received.

1.5 Employee Retirement Benefits :

The provision of the payment of the Gratuity Act, 1972 and the Employees Provident Fund and Miscellaneous Act, 1952 are not applicable to the Company during the year and hence no Provision has been made in the Account.

1.6 Current Tax and Deferred Tax :

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961

Deferred tax is recognised, subject to consideration of prudence, on timing difference, 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. Deferred tax assets are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future tax income will be available against which such deferred tax asset can be realised.

Cash flow statement :

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.7 Fixed Assets :

Fixed Assets are recorded at their cost of acquisition, net of modat/ cenvat, less accumlated depreciation and impairment losses, if any. The Cost of an item of fixed asset comprises its purchase price, including import duties and other non refundable taxes or levies and any directly attributable cost for bringing the assets to its working condition for its intended use.

Depreciation and amortisation :

Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Stamp Duty paid for increase in Authorised Capital and expenses of preferencial shares issue written off over a period of 5 years.

1.8 Impairment of 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 recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted at the pre tax discount rate reflecting current market assessment of time value of money and risks specific to asset.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining life. A previously recognized 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 if there was no impairment.

1.9 Borrowing Costs:

The company has not borrowed any fund.

1.10 Earnings per share :

Basic EPS is computed using the weighted average number of equity shares outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity equivalent shares outstanding during the year except where the results would be anti-dilutive.

1.11 Expenditure / Income in Foreign Currency : Rs. NIL (Previous Year Rs. NIL)

1.12 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure

1.13 Revenue Recognition:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

1.14 Provision, Contingent Liabilities and contingent assets :

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable 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.

1.15 Sundry Debtors, Creditors and Loans & advances are subject to reconciliation, verification and confirmation.

1.16 All payment made under contractual obligations or accordance with generally accepted business practice has not been considered as expenditure of personal nature however expenditure of personal nature cannot be discarded as some vouchers are missing at the time of audit was carried out.

1.17 Further the Board confirms that all transactions in which supporting evidence are missing have genuinely occurred for the purpose of business.

1.18 Segment Information:

The Company is considered to be a single segment company, engaged in business of Real Estate. Consequently, the Company has in its primary segment only one reportable business segment. As per Accounting Standard - 17 "Segment Reporting", if a Company is having single Segment the financial statement needed be presented only on the basis of financial statements. Accordingly, the information required to be presented under AS 17 "Segment Reporting" has been given in financial statements

1.19 Related Party Transactions that have been identified by the management:

As per the Accounting standard -18 issued by the Institute of Chartered Accountants of India, the disclosure of transaction with related parties as defined in the accounting standard are given below: Amount

Name of the parties Nature of Transaction (Rs. in Lacs) Relationship Preses Constructions Promoter Company Advance 400 Solutions Pvt Ltd against Property


Mar 31, 2013

1.1 Basis of preparation of Financial Statements: convention in accordance with applicable mandatory Act, 1956.

1.2 Valuation of Inventories: as stock-in-trade are valued at cost During the year there is no Closing inventories.

1.03 Dividend :

Dividend from Companies is accounted as income in the year in which they are received.

1.4 Employee Retirement Benefits: 972 and the Employes provident fund and Miscellaneous Act,1952 are not applicable to the Company during the year and hence no Provision has been made in the AcT.

1.5 Current Tax and Deferred Tax: is made after taking Into consideration benefits admissiable under the proptaion of fire Income Tax is recognised. subject to consideration of prudence. on timingdifference,being the difference between taxable income and accounting originate.

1.6 Future tax income will be avallabla against Mtlctt such deferred tax aiset can be tealisal. use. All other borrowing costs are charged to revenue.

1.7 Earning per share shares outstanding during the year. Diluted EPS is computed using the weighted and diluted equity equivalent shares outstanding during the year except where the results would be anti-dilutive.

1.8 Deferred Tax : is no virtual certainty of future taxable income Deferred Tax Assets / Liabilities have not been recognized since there is no virtual certainty of future taxable available to realize such assets.

1.9 Expenditure / Income in Foreign Currency: Rs. NIL (Previous Year Rs. NIL)

1.10 Figures of the previous year have been regrouped and / or rearranged wherever necessary.


Mar 31, 2012

1 . Statement of Sionificant Accounting Policies: (Rs in "00)

a. The financial statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

b. Valuation of Inventories: Shares/Securities held as stock-in-trade are valued at cost.

c. Dividend: Dividend from Companies is accounted as income in the year in which they are received.

d. Retirement benefits: The Company is presently not having any permanent employee and there is no liability towards gratuity and leave pay.

e. Provisions for Taxation: in the absence of Taxable income under Income tax Act 1961 for the period, provision for income tax has been made having regard to the provisions of Sec 115JB of the Income Tax Act 1961.

2. There is dimunition of Rs 90.08 (Previous Year Rs 121.15 )in Market value of Quoted Shares held as closing stock for which no provision has made.

3. Segment wise Reporting: Present year's activities cannot be related to any segment Hence reporting on revenue, profit or capital employed by segments as required by Accounting Standard - 17, in the opinion of the management is not applicable for the year.

4. The company was earlier engaged in production and sale of Laminated Jute Bags.

Due to adverse and irreversible market conditions, the company had to suspend these activities. Therefore, the assets of the company have been invested to earn reasonable return. However, the management rs actively considering to diversify in other business activities.

5. Earning per share (Rs. 0.95) Previous Year (- Rs. 0.46)

6. Related Party Disclosure; Related party disclosures as required under Accounting Standard -18 issued by the Institute of Chartered Accountants of India are given below;


Mar 31, 2011

1. Statement of Significant Accounting Policies:

a. The financial statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

b. Valuation of Investments:

The investments made by the Company are shown in the Balance Sheet at cost.

c. Valuation of Inventories: Shares/Securities held as stock-in-trade are valued at cost.

d. Dividend: Dividend from Companies is accounted as income in the year in which they are received.

e. Retirement benefits: The Company is presently not having any permanent employee and there is no liability towards gratuity and leave pay.

f. Provisions for Taxation: No provision for Taxation has been made, as the company is not having any taxable profit.

2. There is no dimunition in Market value of Quoted Shares held as closing stock.

3. Segment wise Reporting: Present year's activities cannot be related to any segment. Hence reporting on revenue, profit or capital employed by segments as required by Accounting Standard - 17, in the opinion of the management is not applicable for the year.

4. The company was earlier engaged in production and sale of Laminated Jute Bags.

Due to adverse and irreversible market conditions, the company had to suspend these activities. Therefore, the assets of the company have been invested to earn reasonable return. However, the management is actively considering to diversify in other business activities.

5. Earning per share (- Rs. 0.464) Previous Year (- Rs. 0.386)

6. Related Party Disclosure: Related party disclosures as required under Accounting Standard - 18 issued by the Institute of Chartered Accountants of India are given below:

(i).

SI. Key Management Personnel Relatives to Key Management No. Personnel

1. Mr. Girdhar Gopal Dalmia, Director Mrs. Bhagwati Devi Dalmia

2. Mr. Manish Dalmia , Director Mrs. Nirmala Dalmia

3. Mr. Vijay Dalmia , Director Mrs. Radhika Dalmia Mrs. Punita Dalmia

(ii) Entities over which Key Management Personnel / their Relatives are able to exercise significant influence.

Dalmia Laminators Ltd. Dalmia Tea Plantation & Industries Ltd. Dalmia Polypack Ltd. Manish Co. (P) Ltd. Oracle Trades & Properties (P) Ltd. M.M. Industries. Motilal Girdhar Gopal (HUF) Girdhar Gopal Manish Kumat (HUF) Manish Dalmia (HUF) Vijay Dalmia (HUF) Dhapa Devi Dalmia Charitable Trust.

(iii) Unsecured Loans include due to Manish Co. (P) Ltd., a company under the same management Rs. 3,88,000.00. (Previous year Rs. 338000.00) Maximum amount due at any time during the year Rs. 3,88,000.00. (Previous year Rs. 338000.00)

7. Deferred Tax (AS 22)

Deferred Tax Assets / Liabilities have not been recognized since there is no virtual certainty of future taxable income available to realize such assets.

8. Expenditure / Income in Foreign Currency: Rs. NIL (Previous Year Rs. NIL)

9. Payments to Statutory Auditors represent (In Rs.)

10. Figures of the previous year have been regrouped and / or rearranged wherever necessary.

 
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