Home  »  Company  »  Poddar Housing & Dev  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Poddar Housing & Development Ltd. Company

Mar 31, 2014

A) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of insurance claim and overdue interest from customers where the recovery thereof is uncertain.

b) Financial statements are based on historical cost. These costs are not adjusted to refect the impact of the changing value in the purchasing power of money.

c) The financial statements have been prepared in compliance with all material aspects with the Accounting Standards notifed by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act,1956, read with General Circular No.15/2013 dated 13th September 2013, issued by the Ministry of Corporate Affairs, in respect of Section 133 of the Companies Act, 2013.

d) Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities at the date of the financial statements and the reported accounts of revenue and expenses for the year presented. Actual results could differ from these estimates.

C. Fixed Assets and Depreciation

a) Fixed assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

b) Depreciation:

i) Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

ii) Depreciation on assets sold, discarded or scrapped, is provided upto the date on which the said asset is sold, discarded or scrapped.

iii) In respect of an asset for which impairment loss is recognized, depreciation is provided on the revised carrying amount of the assets.

D. Impairment

a) 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.

b) 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.

E. Investments

Long-term Investments are valued at cost of acquisition (including cost of purchase, brokerage, and other related expenses incurred thereon). However, provision is made for any diminution in value, other than temporary, in which case the carrying value is reduced to recognize the decline and the same is being reversed when value of those investments is improved. Short-term investments are valued at lower of the cost or market price at the end of the year.

F. Exchange Fluctuations

Trade receivables and payables and Loans & advances in the foreign currency which are outstanding as on the date of balance sheet are converted on the basis of rates prevailing at the year-end. Exchange differences arising on settlement of monetary items during the year are recognized as Forex gain or loss of that year. Investments in Foreign Subsidiaries and Partnership LLCs are converted on the basis of rates prevailing at the year-end. Exchange differences for the same are credited / debited to Foreign currency translation reserve and effect to the Profit & Loss is given only when the investment is actually realized.

G. Inventories

Realty & Construction

i) Land and Land Development Right in hand is valued at cost including incidental and development expenses.

ii) Construction materials are valued at cost.

iii) Work in progress is valued at cost consisting of land, land development, construction, infrastructure, administration, marketing and finance

expenses, plus also the effect of Profit / loss where the construction is reasonably complete, in respect of unit sold, as determined by the management with the help of technical experts in respect of projected cost of completion, percentage of completion and the projected revenue and as per Guidance Note issued by the ICAI in respect of ''Accounting for Real Estate Transactions (Revised 2012)''.

iv) a) Finished goods, which are unsold, are valued at cost, consisting of Land and Land development rights, construction, development, administration, marketing and finance expenses, or market value whichever is lower. For this purpose items of similar nature are compared in totality.

b) Finished goods which are sold but possession of which could not be given on account of technical reasons are valued at the agreement price.

H. Revenue Recognition

a) Revenue recognition in respect of property sale transaction is on the basis of agreement to sale as well as on the transfer of all significant risks and rewards of ownership to the buyers on handing over the possession of the property.

b) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable where the recovery thereof is reasonably certain. In other case, the same is accounted for as and when realized.

c) Dividend income is recognized when the shareholders'' right to receive the payment is established.

I. Advances from customers

The amounts received from the customers against progressive demand note from time to time, are credited to Advances against sale of fats and the same are treated as Current Liabilities and adjusted against the sale value as per the terms of the Agreements at time of handing over the possession of the fats. Moreover, the amounts lying in the debit to account of certain customers, due to the difference in surrender value of the fat and rate at which it was originally booked, are being netted off from the aggregate credit of the customer''s account and finally reduced from the sale value whenever revenue of such fats is recognized.

J. Gratuity, Leave Encashment & Retirement benefits

a) The Company has taken group insurance policy in respect of future Gratuity liability for all its employees and contributes annual premium on the basis of liability determined by LIC on actuarial basis.

b) The Company provides for unutilised privilege leave and leave travel allowance available to its employees on the assumption that all of its employees would retire at the end of the year.

K. Taxation

a) Income Tax

Provision for Income tax is made on the basis of the taxable income as per the provisions of Income Tax Act, 1961 and the relevant Finance Act. Tax payments are set-off against provisions.

b) Deferred Tax

Deferred tax refects 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 on the basis of the tax rate and the tax laws enacted or subsequently enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that suffcient future taxable income will be available against which such deferred tax assets can be realized.

L. Earnings per Share

Basic and diluted earnings per share are calculated by dividing the net Profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

M. Provisions and Contingent liabilities

Provisions are recognized when the company has a present obligation as a result of past events for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to refect the current management estimates.

Contingent liabilities are disclosed when the company has a possible obligation and it is probable that a cash outflow will not be required to settle the obligation.

N. Other Accounting Policies

These are consistent with the generally accepted accounting policies.

b) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to one vote per share held. In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in the proportion to their shareholding.

a) Working capital project finance is secured by way of mortgage of certain portion of land at Badlapur and hypothecation of all current assets relating to the project and personally guaranteed by the promoter directors of the Company.

b) Working capital project finance is repayable in eight installments commencing from 29th month from the date of frst disbursement with a right to adjust against the project''s cash fow at an earlier date as deemed fit.

a) Loans & advances to Subsidiaries represent

Loan carrying interest @ 18% p.a. is given towards development cost of the project. The same alongwith the interest is recoverable from the realisation of the sale proceeds of the said project after making payment of term loan to its bank.

b) Loans & advances to Joint Venture represent

i An arrangement with Viva Poddar Housing Private Limited (in which the Company is holding 50% shares) towards the Company''s share of contribution for Joint Development of Viva Poddar realty project. The Joint Venture company has in turn given aggregate advances of Rs.3000 lacs(Prev. Yr. Rs.2750 lacs) towards procurement of the land to a firm in which one of the directors of Joint Venture company is interested as a partner, under the terms of Shareholders Agreement inter-alia stating that the said land alongwith necessary approvals was to be transferred to the Joint Venture company for development within a reasonable time. However the said firm has informed the Joint Venture company that the land has already been procured and awaiting certain approvals, which is expected in a short time.

In opinion of the Board, the said Land with necessary approvals will shortly be made available to the Joint Venture company and immediately thereafter, the development of the project would commence and the above referred advances would be recovered out of the proceeds of the project on completion and accordingly, such advances are good and recoverable.

ii In addition to above, the Company is entitled to receive 27250 sq. feet (built up), duly constructed on lock and key basis, as compensation towards aforesaid advances on approval of the project and the sale proceeds thereof shall be accounted for as and when the area is allotted and sold.

c) Advances and Other Incidentals for Bhivpuri Project

The Company had given advances to land owners directly / through its employee of Rs.33.01 lacs (Prev. Yr.Rs.38.15 lacs) towards purchase of additional Land, including certain Land which is not useable for the purpose of the construction being a hilly area. The Company is making necessary attempt to sale / recover the advances. The final recovery thereof would depend on disposal of the same.

d) Advances and Other Incidentals for Badlapur Project

The Company has given advances for acquisition of additional land to the land owner directly / through its employee to the land owner amounting to Rs.41.75 lacs (Prev. Yr.Rs.73.88 lacs) which will be registered in favour of the Company in due course of time.

e) Advances and Other Incidentals for Mohili Project

i represents aggregate consideration paid for purchase of development right of the land which is in process of converting into non-agricultural land. Thereafter, the Company would apply for various approvals for construction of a residential project which is expected to be launched by end of the next year.

ii The Company has taken advances of Rs.85 lacs from other parties for transfer of aforesaid development right in the earlier years, included and shown under the head ''Other current liabilities'', which shall be returned in due course of time.

e) Advances and Other Incidentals for Tisgaon Project

i The Company had entered into Joint development agreement with the Land owners and paid an aggregate amount of Rs.82.45 lacs (Prev. Yr.Rs.142.43 lacs) with the understanding that certain portion of the constructed area would be given to them as a compensation towards the cost of the land and the above amount would be adjusted against the sale proceeds of their rights. The Company has now decided to commence the development of the said project and submitted the plans for approval with the appropriate authorities which is expected to be received in a short time.

ii The Company has also given advances of Rs.20.28 lacs (Prev. yr.Rs.20.28 lacs) towards charges for aggregation of land at Tisgaon Dombivali Maharashtra. The same would be debited to cost of project as and when the Company commences the development of the project and any amount, if payable, would also debited to the same as and when settled .

iii In the meantime, the Company has incurred the following expenses as pre-emptive preparation before the commencement of construction and

f) Advances and Other Incidentals for Vidhyavihar Project represent

the payment of expenses of Rs.32.13 lacs (Prev. Yr.Rs.12.18 lacs) and advances of Rs.62.25 lacs (Prev. Yr.Rs.58.25 lacs) paid towards the proposed joint redevelopment project at Vidhyavihar including incidentals, pending documentation. The matter is under litigation and consent term is being fled; the recovery thereof would finally depend upon further development in the matter, the confirmation is awaited.

g) Loans and advances to others include sticky loan of Rs.115 lacs to a company which is not able to repay instalment and interest due thereon. The Company has asked the party to forward the repayment schedule with post dated cheques in order to meet their commitment as the same is to be rescheduled. However, the matter is under final stage of settlement. In the meantime, the management has decided to make suitable provision for accrued interest of Rs.31.17 lacs which was accounted for as income in the earlier years. Moreover, no interest income has been recognized on such loan during the current year as followed in the previous year. The Management is hopeful to recover atleast the principal amount in the phased manner.

h) Advances recoverable in cash or kind include Rs.3.07 lacs which had been misappropriated by one of the employees in the earlier year against which the Company had lodged an FIR and the matter is still under investigation. However, the same has been provided for.

a) Land Development Rights includes

1 Rs.704.68 lacs (Pr. Yr. Rs. 521.35 lacs) including incidental expenses for procurement / development of Land at Badlapur extension for which necessary permission from various authorities are awaited.

2 Land & Structures thereon at Goregaon

"The Company has purchased 14983.10 Sq. Mtrs. alongwith the structures mostly occupied by the tenants/occupant and slum notifed area for purpose of redevelopment in Goregaon (East) Mumbai. The slum owners had formed the society and the said society has appointed M/s. Shiv Shakti Developers, a firm in which the Company and one of its subsidiaries are partner, as the developers. The said firm has applied for necessary permissions under SRA Rules from the appropriate authority. In addition to above, the Company is also planning to redevelop other areas along with various tenants / occupants for which necessary steps will be taken in due course of time.

* Difference of Rs.0.01 lacs vis-à-vis unclaimed dividend shown under Other current liabilities towards bank charges debited in the unpaid dividend bank account which is being deposited in due course of time.


Mar 31, 2013

A. Method of Accounting

a) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of insurance claim and interest income where the recovery thereof is uncertain.

b) Financial statements are based on historical cost in accordance with the applicable mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 1956. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting, policies requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities at the date of the financial statements and the reported accounts of revenue and expenses for the year presented. Actual results could differ from these estimates.

C. Fixed Assets and Depreciation .

a) Fixed assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

b) Depreciation:

i) Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956, except depreciation on aluminium shuttering used for Badlapur project.

ii) Depreciation on Aluminium shuttering is provided on the basis of estimated life of those assets as technically evaluated, which is higher than the depreciation provided on straight line method.

D. Impairment

a) 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.

b) 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.

E. Investments

Long-term Investments are valued at cost of acquisition (including cost of purchase, brokerage, and other related expenses incurred thereon). However, provision is made for any diminution in value, other than temporary, in which case the carrying value is reduced to recognize the decline. Short-term investments are valued at lower of the cost or market price at the end of the year.

F. Exchange Fluctuations

Trade receivables and payables and Loans & advances in the foreign currency which are outstanding as on the date of balance sheet are converted on the basis of rates prevailing at the year-end. Exchange differences arising on settlement of monetary items during the year are recognized as Forex gain or loss of that year. Investments in Foreign Subsidiaries and Partnership LLCs are converted on the basis of rates prevailing at the year-end. Exchange differences for the same are credited / debited to Foreign currency translation reserve and effect to the Profit & Loss is given only when the investment is actually realized.

G. Inventories

Realty & Construction

i) Land and Land Development Right in hand is valued at cost including incidental and development expenses.

ii) Construction materials are valued at cost.

iii) Work in progress is valued at cost consisting of land, construction, development, administration, marketing and finance expenses, and also the effect of profit / loss where the construction is reasonably complete, in respect of unit sold, as determined by the management with the help of technical experts in respect of projected cost of completion, percentage of completion and the projected revenue.

iv) a) Finished goods, which are unsold, are valued at cost, consisting of Land and Land development rights, construction, development, administration, marketing and finance expenses, or market value whichever is lower. For this purpose items of similar nature are compared in totality.

b) Finished goods which are sold but possession of which could not be given on account of technical reasons are value at cost plus estimated profit / loss.

H. Revenue Recognition

a) Revenue recognition in respect of property sale transaction is on the basis of agreement to sale and on the transfer of all significant risks and rewards of ownership to the buyers.

b) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable where the recovery thereof is reasonably certain. In other case, the same is accounted for as and when realized.

c) Dividend income is recognized when the shareholders'' right to receive the payment is established.

I. Advances from customers

The amounts received from the customers against progressive demand note from time to time, are credited to Advances against sale of flats and the same are treated as Current Liabilities and adjusted against the sale value as per the terms of the Agreements at time of handing over the possession of the flats. Moreover, the amounts lying in the debit to account of certain customers, due to the difference in surrender value of the flat and rate at which it was originally booked, are being netted off from the aggregate credit of the customer''s account and finally reduced from the sale value whenever revenue of such flats is recognized.

J. Gratuity, Leave Encashment & Retirement Benefits

a) The Company has taken group insurance policy in respect of future Gratuity liability for all its employees and contributes annual premium on the basis of liability determined by LIC on actuarial basis.

b) The Company provides for unutilised privilege leave and leave travel allowance available to its employees on the assumption that all of its employees would retire at the end of the year.

K. Taxation

a) Income Tax

Provision for Income tax is made on the basis of the taxable income as per the provisions of Income Tax Act, 1961 and the relevant Finance Act. Tax payments are set-off against provisions.

b) Deferred Tax

Deferred tax 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 on the basis of the tax rate and the tax laws enacted or subsequently enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

L. Earnings per Share

Basic and diluted earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year.

M. Provisions and contingent liabilities

Provisions are recognized when the company has a present obligation as a result of past events for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the 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 management estimates.

Contingent liabilities are disclosed when the company has a possible obligation and it is probable that a cash outflow will not be required to settle the obligation.

N. Other Accounting Policies

These are consistent with the generally accepted accounting policies.


Mar 31, 2012

A. Method of Accounting

a) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of Insurance claim and Interest income on overdue Installment.

b) Financial statements are based on historical cost in accordance with the applicable mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 1956. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities at the date of the financial statements and the reported accounts of revenue and expenses for the year presented. Actual results could differ from these estimates.

C. Fixed Assets and Depreciation

a) Fixed assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation and impairment losses, if any. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

b) Depreciation:

i) Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956, except depreciation on aluminium shuttering used for Badlapur project.

ii) Depreciation on Aluminium shuttering is provided on the basis of estimated life of those assets as technically evaluated, which is higher than the depreciation provided on straight line method

D. Impairment

a) 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.

b) 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.

E. Investments

Long-term Investments are valued at cost of acquisition (including cost of purchase, brokerage, and other related expenses incurred thereon). However, provision is made for any diminution in value, other than temporary, in which case the carrying value is reduced to recognize the decline. Short-term investments are valued at lower of the cost or market price at the end of the year.

F. Exchange Fluctuations

Trade receivables and payables and Loans & advances in the foreign currency which are outstanding as on the date of balance sheet are converted on the basis of rates prevailing at the year end. Exchange differences arising on settlement of monetary items during the year are recognized as Forex gain or loss of that year. Investments in Foreign Subsidiaries and Partnership LLCs are converted on the basis of rates prevailing at the year end. Exchange differences for the same are credited / debited to Foreign currency translation reserve and effect to the Profit & Loss is given only when the investment is actually realized.

G. Inventories

a) Realty & Construction

i) Land and Land Development Right in hand are valued at cost including incidental and development expenses.

ii) Construction materials are valued at cost.

iii) Work in progress are valued at cost consisting of Land, construction, development, administration, marketing and finance expenses, and also effect of profit/loss where the construction is substantially completed, in respect of unit sold, as determined on technical estimates.

iv) a) Finished goods, which are unsold, are valued at cost, consisting of Land and Land development rights, construction, development, administration, marketing and finance expenses, or market value whichever is lower. For this purpose items of similar nature are compared in totality.

b) Finished goods which are sold but possession of which could not be given on account of technical reasons are value at cost plus estimated profit / loss.

H. Revenue Recognition

a) Revenue recognition in respect of property sale transaction is on the basis of agreement to sale and on the transfer of all significant risks and rewards of ownership to the buyers.

b) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

c) Dividend income is recognized when the shareholders' right to receive the payment is established.

I. Advances from customers

The amounts received from the customers against progressive demand note from time to time, are credited to Advances against sale of flats and the same are treated as Current Liabilities and adjusted against the sale value as per the terms of the Agreements at time of handing over the possession of the flats.

J. Gratuity, Leave Encashment & Retirement Benefits

a) The Company has taken group insurance policy in respect of future Gratuity liability for all its employee and contributes annual premium on the basis of liability determine by LIC on actuarial basis.

b) The Company provides for unutilised privilege leave available to its employees on the basis that as if all the employees would retire at the end of the year.

K. Taxation

Tax expenses include current and deferred tax. Provision for Income tax is made on the basis of the taxable income as per the provisions of Income Tax Act, 1961 and the relevant Finance Act. Tax payments are set-off against provisions.

Deferred tax 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 on the basis of the tax rate and the tax laws enacted or subsequently enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

L. Earnings per Share

Basic and diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

M. Provisions and contingent liabilities

Provisions are recognized when the company has a present obligation as a result of past events for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the 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 management estimates.

Contingent liabilities are disclosed when the company has a possible obligation and it is probable that a cash outflow will not be required to settle the obligation.

N. Other Accounting Policies

These are consistent with the generally accepted accounting policies.

a) Loans and Advances to others include Rs.2397750/- (Prev. Yr. Rs.2397750/-) which is considered doubtful of recovery for which no provision has been made in the accounts as the management is hopeful to recover the same in due course of time. .

b) Advances and Other Incidentals for Bhivpuri Project

The Company had given advances of Rs.6768978/- (Prev. Yr,Rs.4002278/-), including doubtful advances of Rs 318500/-for which no provision has been made, towards purchase of additional Land, including certain Land which is not useable for the purpose of the construction being a hilly area. The Company is making necessary attempt to sale / recover the advances. The final recovery thereof would depend on disposal of the same

c) Advances and Other Incidentals for Badlapur Project

The Company has given advances for purchase of additional Land amounting to Rs.23923333/- (Prev. Yr.Rs 7876613/-) which is in process of registration in favour of the Company.

d) Advances and Other Incidentals for Mohili Project

The Company had entered into the agreement for purchase of development Rights/ agriculture Land at Mohili - Kalyan and paid advances of Rs 44717204/- (Prev. Yr. Rs 49016804/-) including incidental for which necessary approval / permission from various authorities are awaited and accordingly shown under the head Long Term Loans & Advances. The Company proposes to sell these rights.

e) Advances and Other Incidentals for Tisaaon Project

1 The Company had entered into Joint development agreement with the Land owners and paid an aggregate amount of Rs. 10429541/- (Prev. Yr.Rs.8902301/-) with the understanding that certain portion of the constructed area would be given to them as a compensation towards the cost of the Land and the above amount would be adjusted against the sale proceeds of their rights.

2 Advances for Tisgaon project include Rs.2027758/- (Prev. yr.Rs.2027758/-) towards charges for aggregation of land at Tisgaon Dombivali Maharashtra. The same would be debited to cost of project as and when the Company commences the development of the project.

f) Advances against SRA/Redevelopment Project includes

1 Rs.4162530/- (Prev. Yr.Rs. 4162530/-) paid towards redevelopment project at Colaba including incidentals, pending documentation; the recovery thereof would finally depend upon further development in the matter or to be appropriated towards another project, the confirmation is awaited.


Mar 31, 2011

A. Method of Accounting

a) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of Insurance claim and Interest income on overdue Installment .

b) Financial statements are based on historical cost in accordance with the applicable mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 1956. These costs are not adjusted to reflect the imp act of the changing value in the purchasing power of money .

B. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of the assets and liabilities at the date of the financial statements and the reported accounts of revenue and expenses for the year presented. Actual results could differ from these estimates.

C. Fixed Assets and Depreciation

a) Fixed assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working conditions for its intended use.

b) Depreciation:

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

D. Investments

Long-term Investments are valued at cost of acquisition (including cost of purchase, brokerage, and other related expenses incurred thereon). However , provision is made for any diminution in value, other than temporary , in which case the carrying value is reduced to recognize the decline. Short-term investments are valued at lower of the cost or market price at the end of the year .

E. Exchange Fluctuations

Sundry Debtors and credit balance in debtors in foreign currencies, which are out stand-ing as on the date of Balance Sheet, are converted on the basis of rates prevailing at the year-end. Net difference due to such conversion is adjusted to sales. Similarly , the Current Liabilities in foreign currency which are out standing as on the date of balance sheet are converted on the basis of rates prevailing at the year-end. Exchange differences arising on settlement of monetary items during the year are recognized as Forex gain or loss of that year . Investments in Foreign Subsidiaries and Partnership Firms are converted on the basis of rates prevailing at the year-end. Exchange differences for the same are credited / debited to Foreign currency translation reserve and effect to the Profit & Loss is given only when the investment is actually realized.

F. Inventories

a) Garment Division

Finished Goods are valued at lower of cost (ascertained on first-in-first-out basis) or net realizable value. Raw Materials and Semi-finished goods are valued at direct cost.

b) Realty & Construction

i) Land and Land Development Right in hand are valued at cost including incidental and development expenses.

ii) Construction materials are valued at cost.

iii) Work in progress are valued at cost consisting of Land, construction, development, administration, marketing and finance expenses and also effect of profit/loss where the construction is substantially completed, in respect of unit sold, as determined on technical estimates.

iv) i) Finished goods, which are unsold, are valued at cost, consisting of Land and Land development rights, construction, development, administration, marketing and finance expenses, or market value whichever is lower . For this purpose items of similar nature are compared in totality .

ii) Finished goods which are sold but possession of which could not be given on account of technical reasons are value at cost plus estimated profit / loss.

G. Revenue Recognition

a) Garment Division

i) Export Sales are accounted for on the basis of the date of Bill of Lading/Airway bill and other sales are accounted for on the basis of actual dispatches.

ii) Services are accounted for on time proportion basis which are covered under agreement. Other services are accounted for as and when rendered.

b) Real Est ate and Construction Division

i) The Company follows completed contract method of accounting in respect of its construction activity . Under this method, profit in respect of units sold is recognised only when the work in respect of the relevant units are completed or substantially completed, which is determined on technical estimates as certified by management.

ii) The completion status of a project at the end of accounting period, estimated construction and development cost for completion relating to the sold units, which are considered for profit are estimated on the basis of technical evaluation, as certified by management and relied to by the auditors.

iii) Revenue recognition in respect of property sale transaction is on the basis of agreement to sale and on the transfer of all significant risks and rewards of ownership to the buyers.

c) Others

i) Interest income is recognized on a time proportion basis taking into account the amount out standing and the rate applicable.

ii) Dividend income is recognized when the shareholders' right to receive the payment is established.

H. Gratuity , Leave Encashment & Retirement Benefits

a) The Company has taken group insurance policy in respect of future Gratuity liability for all its employee and contributes annual premium on the basis of liability determined by LIC on actuarial basis.

b) The Company provides for unutilised privilege leave available to its employees on the basis that as if all the employees will retire at the end of the year.

I. Taxation

Tax expenses include current and deferred tax. Provision for Income tax is made on the basis of the taxable income as per the provisions of Income Tax Act, 1961 and the relevant Finance Act . Tax payments are set-off against provisions.

Deferred tax 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 on the basis of the tax rate and the tax laws enacted or subsequently enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

J. Earnings per Share

Basic and diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares out standing during the period.

K. Provisions and contingent liabilities

Provisions are recognized when the company has a present obligation as a result of past events for which it is probable that cash out flow will be required and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the 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 management estimates.

Contingent liabilities are disclosed when the company has a possible obligation and it is probable that a cash out flow will not be required to settle the obligation.

L. Other Accounting Policies

These are consistent with the generally accepted accounting policies.


Mar 31, 2010

A. Method of Accounting

a) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of Insurance claim.

b) Financial statements are based on historical cost in accordance with the applicable mandatory accounting standards issued by The Institute of Chartered Accountants of India and the relevant provisions of Companies Act, 1956. These costs are not adjusted to reflect the impact of the changing value in the purchasing power of money.

B. Fixed Assets and Depreciation

a) Fixed assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation. Cost comprises of the purchase price and any attributable cost of bringing the assets to its working conditions for its intended use.

b) Depreciation:

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

C. Investments

Long-term Investments are valued at cost of acquisition (including cost of purchase, brokerage, and other related expenses incurred thereon). However, provision is made for any diminution in value, other than temporary, in which case the carrying value is reduced to recognize the decline. Short-term investments are valued at lower of the cost or market price at the end of the year.

D. Exchange Fluctuations

Sundry Debtors and credit balance in debtors in foreign currencies, which are outstanding as on the date of Balance Sheet, are converted on the basis of rates prevailing at the year-end. Net difference due to such conversion is adjusted to sales. Similarly, the Current Liabilities in foreign currency which are outstanding as on the date of balance sheet are converted on the basis of rates prevailing at the year-end. Exchange differences arising on settlement of monetary items during the year are recognized as Forex gain or loss of that year. Investments in Foreign Subsidiaries and Partnership Firms are converted on the basis of rates prevailing at the year-end. Exchange differences for the same are credited / debited to Foreign currency translation reserve and effect to the Profit & Loss is given only when the investment is actually realized.

E. Inventories

a) Garment Division

Finished Goods are valued at lower of cost (ascertained on first-in-first-out basis) or net realizable value. Raw Materials and Semi-finished goods are valued at direct cost.

b) Realty & Construction

i) Land and Land Development Right in hand are valued at cost including incidental and development expenses.

ii) Construction materials are valued at cost.

iii) Work in progress are valued at costs consisting of Land, construction, development, administration, marketing and finance expenses, and also effect of profit/loss where the construction is substantially completed, in respect of unit sold as determined on technical estimates.

iv) Finished goods are valued at cost, consisting of Land and Land development rights, construction, development, administration, marketing and finance expenses, or market value whichever is lower. For this purpose items of similar nature are compared in totality.

F. Revenue Recognition

a) Garment Division

i) Export Sales are accounted for on the basis of the date of Bill of Lading/Airway bill and other sales are accounted for on the basis of actual dispatches.

ii) Services are accounted for on time proportion basis which are covered under agreement. Other services are accounted for as and when rendered.

b) Real Estate and Construction Division

i) The Company follows completed contract method of accounting in respect of its construction activity. Under this method profit in respect of units sold is recognised only when the work in respect of the relevant units are completed or substantially completed, which is determined on technical estimates,

ii) The construction and development cost for completion relating to the sold units, which are considered for profit are estimated on the basis of technical evaluation.

iii) Revenue recognition in respect of property sale transaction is on the basis of agreement to sale and on the transfer of all significant risks and rewards of ownership to the buyers.

c) Others

i) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

ii) Dividend income is recognized when the shareholders right to receive the payment is established.

G. Gratuity, Leave Encashment & Retirement Benefits

a) The Company has taken group insurance policy in respect of future Gratuity liability for all its employee and contributes annual premium on the basis of liability determine by LIC on actuarial basis.

b) The Company provides for unutilised privilege leave available to its employees on the basis that as if all the employees will retire at the end of the year.

H. Taxation

Tax expenses include current and deferred tax. Provision for Income tax is made on the basis of the taxable income as per the provisions of Income Tax Act, 1961 and the relevant Finance Act. Tax payments are set-off against provisions.

Deferred tax 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 on the basis of the tax rate and the tax laws enacted or subsequently enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

I. Earnings per Share

Basic and diluted earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.

J. Provisions and contingent liabilities

Provisions are recognized when the company has a present obligation as a result of past events for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the 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 management estimates.

Contingent liabilities are disclosed when the company has a possible obligation and it is probable that a cash outflow will not be required to settle the obligation.

* K. Other Accounting Policies

These are consistent with the generally accepted accounting policies.

 
Subscribe now to get personal finance updates in your inbox!