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Accounting Policies of Maxheights Infrastructure Ltd. Company

Mar 31, 2016

1.1. Basis of Preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis.

Pursuant to Section 133 of the Companies Act,2013 read with rule 7 of the companies (Accounts) Rules, 2014 till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013 (the ''Act'').

All 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 the Schedule III to the Companies Act, 2013.

Based on the nature of products and the time between the acquisition of assets for processing and their zation in cash and cash equivalent, the Company has ascertained its operating cycle as twelve months for the purpose of current/ non-current classification of assets and liabilities.

1.2. Use of estimates

The preparation of the financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported balances of assets & liabilities and disclosure relating to contingent assets & liabilities as at the date of the financial statements and reported amounts of income & expenses during the period.

Accounting estimates could change from period to period. Actual result could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed.

1.3. Revenue recognition

Revenue from the sale of Real estate is recognized in the financial year in which agreement to sell is executed or when the substantial risk and rewards of the ownership is transferred to buyer.

Interest Income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

Service Income is recognised on cost plus basis as per the terms of the contract with customers, as the service is performed using the proportionate completion method.

1.4. Fixed Assets

Fixed assets are stated at acquisition cost less accumulated depreciation/amortisation and accumulated impairment, if any. All direct costs are capitalized including freight, duties, taxes and expenses incidental to acquisition and installation of fixed assets. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of fixed assets that have been retired from active use and are held for disposal are stated net realisable value in the Financial Statements. Any expected loss is recognised immediately in the Statement of Profit and Loss. Losses arising from the retirement of, and gains and losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

Tangible Assets

The useful lives of the assets are based on technical estimates approved by the Management, and are lower than or same as the useful lives prescribed under Schedule II to the Companies Act, 2013 in order to reflect the period over which depreciable assets are expected to be used by the Company. Depreciation is provided on a pro-rata basis on the straight line method based on the estimated useful lives of the assets as stated below:

Impairment

At each balance sheet date, the Company reviews the carrying value of tangible and intangible assets for any possible impairment An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is determined as higher of the asset''s net selling price or estimated future cash flows expected to arise from the continuing use of the assets and from their disposal at the end of their useful lives, which are discounted to their present value based on appropriate discount rates. For the purpose of assessing impairment, assets are grouped at the levels for which there are separately identifiable cash flows [cash generating unit). Assessment is done at each Balance Sheet date as to whether there is any indication that an impairment loss recognised for an asset in prior accounting period may no longer exist or may have decreased.

1.5. Investments

Investments are either classified as current or long-term based on Management''s intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment individually. Long term investments are carried at cost less provisions recorded to recognize any decline, if any, other than temporary, in the carrying value of each investment.

1.6. Inventories

Inventories are valued as under:

Building material and consumable stores are valued at cost, which is determined on the basis of FIFO Land is valued at cost, which is determined on average method. Cost includes cost of acquisition and all related costs. Construction work in progress is valued at cost. Cost includes cost of material, services and other related overheads related to project under construction

Unsold Portion / Portion under construction is shown at cost under the head stock in trade Construction Activity. Inventory of shares has been valued at cost

1.7. Foreign Currency Transactions

The Company had not done any foreign currency transactions during the year.

1.8. Employee Benefits

Short term employee benefits are recognized in the year during which the services have been rendered.

The employees of the Company are entitled to compensate absences which are non-accumulating in nature. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

No employee of the company has been into employment of the company for more than 5 Years. Therefore no provision is accrued for gratuity and leave encashment

1.9. Borrowing Cost

Financial Costs relating to borrowed funds attributable to the acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use is capitalized as part of the cost of that asset in accordance to AS 16. The interest cost incurred for funding a qualifying asset during the construction period is capitalized based on actual investment in the asset at the average interest rate for specific borrowings. However, financing costs (including interest) on fixed assets purchased on deferred credit basis or on the monies borrowed for the construction or acquisition of fixed assets are not capitalized to the extent that such costs relate to periods after such assets are ready to be put to use.

1.10. Taxes on Income

Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

Provision for income tax of Rs. 25.93 Lacs has been made in the accounts for the year ending 31st March 2016, which has been worked out on the basis of taxable income as per the Income Tax Act 1961.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet dat Deferred tax is recognised for all the timing differences, subject to the consideration of prudence in respect of deferred tax assets. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. In situations where the Company has unabsorbed depreciation or carry forward tax losses, such deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that they can be realised against future taxable profits. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

1.11.Earnings Per Share

- The earnings considered in ascertaining the Company''s Earnings Per Share (''EPS'') comprise of the net profit after tax and dividend on preference shares attributable to equity shareholders. The number of shares used in computing basic EPS is the number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares (if any) unless impact is anti dilutive.

1.12. Cash & Cash equivalents

- Cash and cash equivalents comprise of cash and cash on 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.

- Cash in hand has been certified by the management at the close of the year

1.13.Current Assets

- In the opinion of the management, current assets, loans & advances have the value on the realization in the ordinary course of business equal to the amount at which they are stated and all known liabilities have been adequately provided for.

1.14.Cash Flow Statement

- Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.15.Provisions and Contingencies

- Provisions are recognized when the Company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

- A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Contingent liability has been disclosed in accordance with AS-29, issued by The Institute of Chartered Accountant of India.


Mar 31, 2015

1.1 Change in accounting policy - presentation and disclosure of financial statements

- The financial statements of the Company have been prepared and presented for the year ended March 31, 2015, as per the format prescribed under the Schedule III notified under the section 129 of Companies Act, 2013. The adoption of Schedule III does not impact recognition and measurement principles followed for the preparation of the financial statements.

- The Company has reclassified the previous year figures in accordance with the requirements applicable in the current year and same had been notified wherever required.

1.2 Use of estimates

- The preparation of the financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported balances of assets & liabilities and disclosure relating to contingent assets & liabilities as at the date of the financial statements and reported amounts of income & expenses during the period.

- Accounting estimates could change from period to period. Actual result could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed.

1.3 Revenue recognition

- Revenue from the sale of Real estate is recognized in the financial year in which agreement to sell is executed or when the substantial risk and rewards of the ownership is transferred to buyer.

- Interest accrues on the time basis determined by the amount outstanding and the rate applicable.

- Revenue from commission is recognized only when service is completed.

1.4 Tangible Assets

- Tangible assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until such assets are ready for use.

- Gains and losses arising from retirement or disposal of the tangible assets are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in statement of profit and loss on the date of retirement and disposal.

1.5 Depreciation and Amortization

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. The Management estimates the useful lives for the other fixed assets as follows:

1.6 Investments

- Investments are either classified as current or long-term based on Management's intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment individually. Long term investments are carried at cost less provisions recorded to recognize any decline, if any, other than temporary, in the carrying value of each investment.

1.7 Inventories

Inventories are valued as under:

- Building material and consumable stores are valued at cost, which is determined on the basis of FIFO.

- Land is valued at cost, which is determined on average method. Cost includes cost of acquisition and all related costs.

- Construction work in progress is valued at cost. Cost includes cost of material, services and other related overheads related to project under construction.

- Unsold Portion / Portion under construction is shown at cost under the head stock in trade Construction Activity.

- Inventory of shares has been valued at cost.

1.8 Foreign Currency Transactions

The Company had not done any foreign currency transactions during the year.

1.9 Employee Benefits

- Short term employee benefits are recognized in the year during which the services have been rendered.

- The employees of the Company are entitled to compensate absences which are non-accumulating in nature. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur.

- No employee of the company has been into employment of the company for more than 5 Years. Therefore no provision is accrued for gratuity and leave encashment.

1.10 Borrowing Cost

- Financial Costs relating to borrowed funds attributable to the acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use is capitalized as part of the cost of that asset in accordance to AS 16. The interest cost incurred for funding a qualifying asset during the construction period is capitalized based on actual investment in the asset at the average interest rate for specific borrowings. However, financing costs (including interest) on fixed assets purchased on deferred credit basis or on the monies borrowed for the construction or acquisition of fixed assets are not capitalized to the extent that such costs relate to periods after such assets are ready to be put to use.

1.11 Taxes on Income

- Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

Provision for income tax ofRs. 20.94 Lacs has been made in the accounts for the year ending 31st March 2015, which has been worked out on the basis of taxable income as per the IncomeTax Act 1961.

- Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

1.12 Earnings PerShare

- The earnings considered in ascertaining the Company's Earnings Per Share ('EPS') comprise of the net profit after tax and dividend on preference shares attributable to equity shareholders. The number of shares used in computing basic EPS is the number of shares outstanding duringthe year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares (if any) unless impact is anti dilutive.

1.13 Cash & Cash equivalents

- Cash and cash equivalents comprise of cash and cash on 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.

- Cash in hand has been certified by the management at the close of the year.

1.14 Current Assets

- In the opinion of the management, current assets, loans & advances have the value on the realization in the ordinary course of business equal to the amount at which they are stated and all known liabilities have been adequately provided for.

1.15 Cash Flow Statement

- Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.16 Provisions and Contingencies

- Provisions are recognized when the Company has a present obligation as a result of past event; it is more likely than not that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

- A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Contingent liability has been disclosed in accordance with AS-29, issued by The Institute of Chartered Accountants of India.


Mar 31, 2014

1. GENERAL:

The financial statements have been prepared as of a going concern on historical cost convention and on accrual method of accounts, in accordance with the generally accepted accounting principles and applicable Accounting Standards in India and as per the provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

2 FIXED ASSETS:

2.1 Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties & taxes and incidental expenses related to acquisition.

2.2 Assets are capitalized after they are certified to be complete and put to use.

3. DEPRECIATION:

3.1 Depreciation on all the Fixed Assets is charged on Straight Line Method on pro-rata basis at the rates specified in schedule XIV of the Companies Act, 1956.

4. INVENTORIES:

4.1 Inventory of Shares and Real Estate has been valued at cost incurred.

4.2 Building Material and consumable stores are valued at cost, which is determined on the Basis of the First in First out method.

4.2 Land is valued at cost, which is determined on average method. Cost includes cost of acquisition and all related costs.

4.3 Construction work in progress is valued at cost. Cost includes cost of material, services and other related overheads related to project under construction

5. RETIREMENT BENEFITS:

No employee of the company has been into employment of the company for more then 5 years. Therefore no provision is accrued for gratuity and leave encashment.

6. AMALGAMATION EXPENDITURE:

These are amortized and charged to expenses over a period of five years

7. DEFERRED TAXATION:

Deferred tax is recognized subject to consideration of prudence, on time differences, being the difference between taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent years.

8. PROVISIONS, CONTINGENT LIABLITY AND ASSETS

Provisions are recognized when the company has a present obligation as a result of past events and it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.


Mar 31, 2012

1.0 GENERAL:

The financial statements have been prepared as of a going concern on historical cost convention and on accrual method of accounts, in accordance with the generally accepted accounting principles and applicable Accounting Standards in India and as per the provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

2.0 FIXED ASSETS:

2.1 Fixed Assets are stated at cost of acquisition inclusive of inward freight, duties & taxes and incidental expenses related to acquisition.

2.2 Assets are capitalized after they are certified to be complete and put to use.

3.0 DEPRECIATION:

3.1 Depreciation on all the Fixed Assets is charged on Straight Line Method on pro-rata basis at the rates specified in schedule XIV of the Companies Act, 1956.

4.0 INVENTORIES:

4.1 Inventory of Shares and Real Estate has been valued at cost incurred.

5.0 RETIREMENT BENEFITS:

No employee of the company has been into employment of the company for more then 5 years. Therefore no provision is accrued for gratuity and leave encashment.

6.0 AMALGAMATION EXPENDITURE:

These are amortized and charged to expenses over a period of five years

7.0 DEFERRED TAXATION:

Deferred tax is recognized subject to consideration of prudence, on time differences, being the difference between taxable income and accounting income that originate in one year and capable of reversal in one or more subsequent years.

8.0 PROVISIONS, CONTINGENT LIABLITY AND ASSETS

Provisions are recognized when the company has a present obligation as a result of past events and it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.

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