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Accounting Policies of Phoenix Township Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and in accordance with the provisions of the Companies Act, 2013 (''the Act''), and the accounting principles generally accepted in India and comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Fixed Assets /Intangible Assets

Fixed Assets are stated on cost less accumulated depreciation. The total cost of assets comprises its purchase price, freight, duties, taxes and any other incidental expenses directly attributable to bringing the asset to the working condition for its intended use.

d) Depredation

- Leasehold Improvements are amortized over the period of lease or estimated period of useful life of such improvement, whichever is lower.

- Depreciation on other fixed assets is provided on SLM Method on a pro rata basis over its economic useful lives, estimated by the management or at the rates prescribed under Companies ACT, 2013 whichever is higher.

- Assets costing less than or equal to Rs. 5,000 are depreciated fully in the year of purchase.

e) Inventories

Stock of food and beverages and operating supplies and consumables stores are valued at cost (FIFO).As the market value of these items of the stock is unascertainable to their basic nature.

As the turnover of the company is in respect of hotel stay and food and beverages it is not possible to quantitative wise details of the turnover. However the breakup of food and beverages is provided as under:-

f) 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.

- Service Income

Service income is recognised as per the terms of the contract when the related services are rendered. It is stated net of service tax.

- Interest income

Interest income is recognized on time proportion basis.

g) Investments

Investments are classified under Non-current and current categories.

Non-current Investments'' are carried at acquisition /amortized cost. Aprovision is made for diminution other than temporary on an individual basis.

''Current Investments'' are carried at the lower of cost or fair value on an individual basis.

h) Retirement and Other Employee Benefits

The Company provides for retirement benefits to employees. However there is no liability on this account at end of the year under the applicable laws.

i) Leases

Lease Rent pertains to Agricultural Land taken on Lease & sub-lease for 99 years by the Company.

j) Taxation

Provision for Income Tax has been made in accordance with the provision of Incom Act, 1961. Deferred tax liability is provided for on the basis of timing difference betwee taxable income and accounting income that originate in one period and are capableo reversal in one or more subsequent periods.


Mar 31, 2014

A) Basis of Preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and in accordance with the provisions of the Companies Act, 1956 (''the Act''), and the accounting principles generally accepted in India and comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, in consultation with the National Advisory Committee on Accounting Standards, to the extent applicable.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles in India (Indian GAAP) requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of the financial statements. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements which in management''s opinion are prudent and reasonable. Actual results may differ from the estimates used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

c) Fixed Assets / Intangible Assets

Fixed Assets are stated on cost less accumulated depreciation. The total cost of assets comprises ts purchase price, freight, duties, taxes and any other incidental expenses directly attributable to bringing the asset to the working condition for its intended use.

d) Depreciation

- Leasehold Improvements are amortized over the period of lease or estimated period of useful life of such improvement, whichever is lower.

- Depreciation on other fixed assets is provided on written down value Method on a pro rata basis over its economic useful lives, estimated by the management or at the rates prescribed under Schedule XIV of the Act whichever is higher.

Accompanying notes to the financial statements for the year ended March 31, 2014

- Assets costing less than or equal to Rs. 5,000 are depreciated fully in the year of purchase.

e) Inventories

Inventories: Phoenix Park Inn Resort

Stock of food and beverages and operating supplies and consumables stores are valued at cost (FIFO).As the market value of these items of the stock is unascertainable to their basic nature.

As the turnover of the company is in respect of hotel stay and food and beverages it is not possible to quantitative wise details of the turnover. However the breakup of food and beverages is provided as under:-

f) 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.

- Service Income

Service income is recognised as per the terms of the contract when the related services are rendered. It is stated net of service tax.

- Interest income

Interest income is recognized on time proportion basis.

g) Investments

Investments are classified under Non-current and current categories.

''Non-current Investments'' are carried at acquisition /amortized cost. A provision is made for diminution other than temporary on an individual basis.

''Current Investments'' are carried at the lower of cost or fair value on an individual basis.

h) Retirement and Other Employee Benefits

The Company provides for retirement benefits to employees. However there is no liability on this account at end of the year under the applicable laws.

i) Leases

Lease Rent pertains to Agricultural Land taken on Lease & sub-lease for 99 years by the Company.

j) Taxation

Provision for Income Tax has been made in accordance with the provision of Income Tax Act, 1961. Deferred tax liability is provided for on the basis of timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Accompanying notes to the financial statements for the year ended March 31, 2014

 
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