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Accounting Policies of Patidar Buildcon Ltd. Company

Mar 31, 2014

1. BASIS OF ACCOUNTING:

The Accounts of the Company are prepared under historical cost convention on accrual basis on going concern concept and complied with mandatory Accounting Standards issued by ICAI. Accounting Policies have been consistently applied by the company and are consistent with those used in previous year.

2. FIXED ASSESTS AND DEPRECIATION:

A) Fixed assets are stated at historical cost.

B) The company has provided depreciation under WDV method in accordance with rates specified in schedule XIV of the companies Act, 1956.

3. INVESTMENTS:

Long Term investments are stated at cost and provision for diminution in value, thereof is made, wherever such a diminution is other than temporary.

4. REVENUE RECOGNITION:

Company recognizes sale of goods upon passing of title of goods to the customers which generally coincides with their delivery.

5. VALUATION OF INVENTORIES:

Inventory of Finished Goods (Traded Goods) are valued at Cost (FIFU Basis) or Net realizable Value, whichever is lower.

?. RETIREMENT BENEFITS:

The management of the company has decided to provide for Gratuity liability on cash basis, since the company has got limited number of employees and its impact on profitability of the company shall not be material.

7. TAXATION:

Income tax has been provided as per the provisions of The Income lax Act, 1961.

8. CONTINGENT LIABILITIES:

There are no Contingent liabilities.


Mar 31, 2013

1. BASIS OF ACCOUNTING:

The Accounts of the Company are prepared under historical cost convention on accrual basis on going concern concept and complied with mandatory Accounting Standards issued by ICAI. Accounting Policies have been consistently applied by the company and are consistent with those used in previous year.

2. FIXED ASSESTS AND DEPRECIATION:

A) Fixed assets are stated at historical cost.

B) The company has provided depreciation under WDV method in accordance with rates specified in schedule XIV of the companies Act, 1956.

3. INVESTMENTS:

Long Term investments are stated at cost and provision for diminution in value, thereof is made, wherever such a diminution is other than temporary.

4. REVENUE RECOGNITION:

Company recognizes sale of goods upon passing of title of goods to the customers which generally coincides with their delivery.

5. VALUATION OF INVENTORIES:

Inventory of Finished Goods (Traded Goods) are valued at Cost (FIFO Basis) or Net realizable Value, whichever is lower.

6. RETIREMENT BENEFITS:

The management of the company has decided to provide for Gratuity liability on cash basis, since the company has got limited number of employees and its impact on profitability of the company shall not be material.

7. TAXATION:

Income tax has been provided as per the provisions of The Income Tax Act, 1961.

8. CONTINGENT LIABILITIES:

There are no Contingent liabilities.


Mar 31, 2012

1. BASIS OF ACCOUNTING:

The Accounts of the Company are prepared under historical cost convention on accrual basis on going concern concept and complied with mandatory Accounting Standards issued by ICAI. Accounting Policies have been consistently applied by the company and are consistent with those used in previous year.

2. FIXED ASSESTS AND DEPRECIATION:

A) Fixed assets are stated at historical cost.

B) The company has provided depreciation under WDV method in accordance with rates specified in schedule XIV of the companies Act' 1956.

3. INVESTMENTS:

Long Term investments are stated at cost and provision for diminution in value' thereof is made' wherever such a diminution is other than temporary.

4. REVENUE RECOGNITION:

Cqmpany recognizes sale of goods upon passing of title of goods to the customers which generally coincides with theirdelivery.

5. VALUATION OF INVENTORIES:

There is no inventory of Finished Goods (Traded Goods) at the end of year.

6. RETIREMENT BENEFITS:

The management of the company has decided to provide for Gratuity liability on cash basis' since the company hss got limited number of employees and its impact on profitability of the company shall not be material.

7. TAXATION:

A} Income tax has been provided as per the provisions of The Income Tax Act' 1961.

B) Deferred tax asset/liability as per AS-22 has not been provided in view of the facts that it is a notional entry'

8. CONTINGENTL1ABILITIES: There are no Contingent liabilities.

9. PREOPERATIVE EXPENSES:

The policy of writing off of 1/10 preoperative expenses have been changed and all the remaining Pre-Operative Expenses at the beginning of current year have been charged to Profit & Loss Account


Mar 31, 2010

A. Basis of preparation:

The financial statements are prepared and presented in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises accounting standards notified by the Central Government under section 211(3C) of the Companies Act 1956, and other pronouncements of Institute of Chartered Accountants of India, the provisions of the Companies Act, 1956 and guidelines issued by Securities and Exchange Board of India.

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of financial statements and reported amounts of revenues and expenses for the year. Actual results could differ from these estimates. Any revision of estimates is recognized prospectively in the current and future periods.

B. Pre - Operative Expenses:

Expenses incurred including administrative expenses before the commencement of the project were transferred to Pre - Operative Expenses to be allocated later on. Since the company has commenced commercial activity during the current year 1/10th of the Pre-operative expenses have been charged to Profit and Loss account.

C. Fixed Assets:

a. Fixed Assets are stated at cost. No Depreciation has been provided as the assets have not been put to commercial use.

b. Factory Building has been obtained on Lease, which is not yet registered. Amount shown under the head Factory Building in Schedule C pertains to expenditure incurred by the Company for carrying out the modifications thereto.

c. Amount of Lease Deposit has been shown as Current Asset pending registration.

D. Revenue Recognition

Revenue from sale of goods is recognized when significant risks and rewards from ownership of the product are passed on to customers. Income from sales is stated exclusive of returns, taxes and trade discounts. Income from other activities is recognized on time proportion basis.

E. Provisions and Liabilities

Provisions are created when there is a present or obligation as a result of past event that requires an outflow of resources and can be estimated with reasonable accuracy.

F. Earnings per share

Due to accumulated losses the Earnings per share have not been reported for earlier year. The EPS for the year is Rs.1.46.

 
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