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Accounting Policies of Radhe Developers (India) Ltd. Company

Mar 31, 2016

1 Basis of Preparation of Financial Statements

The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous period, except for the change in accounting policy explained below.

2 Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements, disclosure regarding financial statements and reported amount of revenue and expenses during the reported period. These estimates are based upon management’s knowledge of current events and actions. Actual results could differ from those estimates and differences, if any, are recognized in the period in which the results are known /materialized

3 Fixed Assets and Depreciation

a. Valuation

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

Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

Capital Work in Progress represents expenditure incurred in respect of Capital projects / intangible assets under development and are carried at cost. Cost includes land, related acquisition expenses, development / construction costs, borrowing costs and other direct expenditure.

b. Depreciation

Depreciation on fixed assets is charged on the basis of straight line method as per useful life prescribed in schedule II of the Companies Act, 2013

4 Inventories

Inventories comprise completed units for sale and property under construction (Work in progress):

a. Completed unsold inventory is valued at lower of cost and net realizable value. Cost is determined by including cost of land, materials, services and related overheads.

b. Work in progress is valued at cost. Cost comprises value of land (including development rights), materials, services and other overheads related to projects under construction.

5 Recognition of Income & Expenses:

a. The revenue is recognized on the basis of ''Percentage of completion Method’ of accounting. Revenue is recognized, in relation to sold areas only, on the basis of percentage of actual cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual cost being 20% or more (25% or more for the Projects starting on or after April 01, 2012 as per Guidance Note “Accounting for Real Estate Transaction (Revised 2012)” Issued by the Institute of Chartered Accountants of India) of the total estimated cost. The estimates of saleable area and costs are revised periodically by the management. The effect of such changes to estimates is recognized in the period such changes are determined

b. Cost of construction/development (including cost of land) incurred is charged to the profit & loss account in proportion to project area sold. Adjustments if required are made on completion of the respective projects.

c. Interest and direct expenditure attributable to specific projects are capitalized in the cost of project, other interest and indirect costs are treated as ''Period Cost’ and charged to Profit & Loss account in the year in which it is incurred

d All other incomes and expenditures except mentioned above are accounted for on accrual basis.

6 Retirement Benefits to employees

Company’s contribution to Provident Fund and Employee State Insurance Compensation (ESIC) is charged to profit and loss account on the actual liability basis.

Provision for Gratuity is determined on the actuarial valuation carried out at the balance sheet date.

7 Taxation

Tax comprises current tax and deferred tax. Current tax is the amount payable as determined in accordance with the provisions of Income Tax Act, 1961. Provision for Income Tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act 1961. Deferred tax resulting from timing difference between the book and the taxable profits is accounted for using the tax rates and law that are enacted or substantively enacted as on the balance sheet date. Deferred tax assets are recognized only to the extent there is virtual certainty that the asset can be realized in the future. However, if there is unabsorbed depreciation under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets/liabilities are reviewed at each balance sheet date.

8 Investments

Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Long term investments are stated at cost. However provision (if any) for diminution is made to recognize any decline, other than temporary, in the value of investments. Current investments are stated at lower of cost or market value on an individual investment basis.

9 Foreign Currency Transaction

Transaction in foreign currency is recorded at exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated at the exchange rate prevailing on the Balance sheet date and exchange difference on translation of monetary assets and liabilities and resultant gain or loss is recognized in the Profit & loss account.

Non Monetary assets and liabilities are translated at the rate prevailing on the date of transaction.

10 Borrowing Cost

The borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are charged to Profit & Loss account as an expense in the year in which they are incurred.

11 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may suffer impairment loss. If any such indication exists, the Company estimates the recoverable amount of the asset or the recoverable amount of cash generating unit to which the asset belongs. Recoverable amount is the higher of an asset’s net selling price and value in use. In assessing value in use, the estimated future cash flow expected from the continuing use of the asset and from its disposal is discounted to their present value using a pre-discount rate that reflect the current market assessment of the time value of money and risk specific to the asset. In case recoverable amount is less than its carrying amount then its carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists the recoverable amount is reassessed and the asset is reflected at the recoverable amount.


Mar 31, 2015

The accounts are prepared in accordance with the accounting principles accepted in India. Significant accounting policies to the extent applicable to the company are only presented as under:

The Company prepares and presents its financial statements as per schedule III to the Companies Act, 2013, as applicable to it from time to time. In view of revision to the schedule III as per a notification issued during the year by the central government, the financial statements for the financial year ended 31st march have been prepared as per the requirement of the revised schedule III of the companies Act, 2013. The previous figures have been accord- ingly regrouped/re- classified to conform to the current year's classification.

A) Method of Accounting

The financial statements are prepared and presented under the accrual basis of accounting in accordance with the provision of the companies Act & in accordance with accounting principles generally accepted in India and comply with the accounting standards issue by the Institute of Chartered Accountant of India to the extent applicable.

In applying the Accounting policies, consideration has been given to prudence, substance over the form and materiality.

B) Expenditure during project implementation period

All known expenditures during the period of implementation stage are quantified till date and are ac- counted for.

C) Fixed Assets & Depreciation

The accounting policy regarding fixed assets is the same will be stated at cost. Cost includes all ex- penses attributable to bringing the asset at its working condition for the intended use. Financing costs incurred up to the date of commissioning of assets are capitalized of fixed assets are adjusted to the cost of the assets.

Depreciation on fixed assets is charged as per schedule II on the basis of useful life of assets (SLM basis) as prescribed under Companies Act, 2013.

D) Borrowing cost

Interest and other costs in connection with the borrowings of the funds to the extent related/attributed to the acquisition/construction of qualifying fixed assets are capitalized up to date when such assets are ready for their intended use and other borrowing are charged to the statement of profit and loss,.

E) Investments

Long term investments are stated at cost.

F) Inventories

The valuation of work in progress of various projects has been determined based on the cost incurred till the balance sheet date.

G) Provision, Contingent Liabilities And Contingent Assets

Revenue involving substantial degree of estimation in measurement is recognized when there is a present obligation as result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are disclosed in the financial statements.

H) Revenue Recognition

Revenue from property development activity is not recognized based on percentage of completion method, determine by applying the cost plus contracts in which contractor is reimbursed for allowable or defined cost plus percentage of these cost or a fixed fee. The revenue is recognized as and when the sale deed is executed in favor of purchaser. The development work done on behalf of the owner is directly debited to the owner and development charges are credited as contract receipts to profit and loss account. No charges are receivable during the year in respect of assignment where no work has been done during the year.

I) Prior Period expenses/income

Material items of prior period expenses/income are disclosed separately, if any.

J) Accounting for Tax

Current tax is the amount of tax payable on the taxable for the year as determined in accordance with the provision of income tax act 1961.

Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carried forward of losses are recognized if, in the opinion of the management, there is virtual certainty that there will be sufficient future income available to realize such losses.


Mar 31, 2014

BASIS OF ACCOUNTING:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles and accounting standards issued by The Institute of Chartered Accountants of India and the provisions of the companies act -1956.

All the assets and liabilities have been classified as current or non-current as per Company''s normal operating cycle and other criteria set out in the Revised Schedule - VI to the Companies Act, 1956. Based on the nature of project and the time between the acquisition of assets for development and their realization in cash and cash equivalent. The company has ascertained its operating cycle as 12 months for the purpose of current - non current classification of assets and liabilities.

A. SYSTEM OF ACCOUNTING

i) The company follows the mercantile system of accounting and recognizes its income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the Historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power on money.

iii) Estimates and Assumptions used in the preparation of the Financial Statements and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements, which may differ from actual results at a subsequent date.

B. REVENUE RECOGNITION:

Revenue from property development activity is not recognized based on percentage of completion method, determine by applying the cost plus contracts in which contractor is reimbursed for allowable or defined cost plus percentage of these cost or a fixed fee. The revenue is recognised as and when the sale deed is executed in favour of purchaser. The development work done on behalf of the owner is directly debited to the owner and development charges are credited as contract receipts to profit and loss account. No charges are receivable during the year in respect of assignment where no work has been done during the year.

C. FIXED ASSETS AND DEPRECIAION:

Fixed Assets are stated at cost less depreciation. Depreciation is provided under Straight Line Method and at the rates specified in Schedule IVX of the Companies Act-1956.

D. INVESTMENTS:

Investments are stated at cost.

E. TAX ON INCOME:

Current tax is the amount of tax payable on the taxable for the year as determined in accordance with the provision of income tax act 1961. Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carried forward of losses are recognized if, in the opinion of the management, there is virtual certainty that there will be sufficient future income available to realize such losses.

F. DEFERRED REVENUE EXPENDITURE:

Preliminary and public issue expenses are amortized over a period of ten year.

G. INVENTORY VALUATION:

The Valuation of Work in Progress of various projects has been determined based on the Cost Incurred till the balance sheet date.

H. BORROWING COST:

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capitalized as part of cost of assets all other borrowing costs are charged to revenue.


Mar 31, 2013

A. SYSTEM OF ACCOUNTING

i) The company follows the mercantile system of accounting and recognizes its income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the Historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power on money.

iii) Estimates and Assumptions used in the preparation of the Financial Statements and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of financial statements, which may differ from actual results at a subsequent date.

B. REVENUE RECOGNITION:

Revenue from property development activity is not recognized based on percentage of completion method, determine by applying the cost plus contracts in which contractor is reimbursed for allowable or defined cost plus percentage of these cost or a fixed fee. The revenue is recognised as and when the sale deed is executed in favour of purchaser. The development work done on behalf of the owner is directly debited to the owner and development charges are credited as contract receipts to profit and loss account. No charges are receivable during the year in respect of assignment where no work has been done during the year.

C. FIXED ASSETS AND DEPRECIAION:

Fixed Assets are stated at cost less depreciation. Depreciation is provided under Straight Line Method and at the rates specified in Schedule IVX of the Companies Act-1956.

D. INVESTMENTS:

Investments are stated at cost.

E. TAX ON INCOME:

Current tax is the amount of tax payable on the taxable for the year as determined in accordance with the provision of income tax act 1961. Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carried forward of losses are recognized if, in the opinion of the management, there is virtual certainty that there will be sufficient future income available to realize such losses.

F. DEFERRED REVENUE EXPENDITURE:

Preliminary and public issue expenses are amortized over a period of ten year.

G. INVENTORY VALUATION:

The Valuation of Work in Progress of various projects has been determined based on the Cost Incurred till the balance sheet date.

H. BORROWING COST:

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capitalized as part of cost of assets all other borrowing costs are charged to revenue.


Mar 31, 2012

1 SYSTEM OF ACCOUNTING

i) The company follows the mercantile system of accounting and recognizes its income and expenditure on an accrual basis except in case of significant uncertainties.

ii) Financial Statements are prepared under the Historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power on money.

iii) Estimates and Assumptions used in the preparation of the Financial Statements and disclosures are based upon management's evaluation of the relevant facts and circumstances as of the date of financial statements, which may differ from actual results at a subsequent date.

2 REVENUE RECOGNITION:

Revenue from property development activity is not recognized based on percentage of completion method, determine by applying the cost plus contracts in which contractor is reimbursed for allowable or defined cost plus percentage of these cost or a fixed fee. The development work done on behalf of the owner is directly debited to the owner and development charges are credited as contract receipts to profit and loss account. No charges are receivable during the year in respect of assignment where no work has been done during the year.

3 FIXED ASSETS AND DEPRECIAION:

Fixed Assets are stated at cost less depreciation. Depreciation is provided under Straight Line Method and at the rates specified in Schedule IVX of the Companies Act-1956.

4 INVESTMENTS:

Investments are stated at cost.

5 TAX ON INCOME:

Current tax is the amount of tax payable on the taxable for the year as determined in accordance with the provision of income tax act 1961. Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carried forward of losses are recognized if, in the opinion of the management, there is virtual certainty that there will be sufficient future income available to realize such losses.

6 DEFERRED REVENUE EXPENDITURE:

Preliminary and public issue expenses are amortized over a period of ten year.

7 INVENTORY VALUATION:

The Valuation of Work in Progress of various projects has been determined based on the Cost Incurred till the balance sheet date.

8 BORROWING COST:

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capitalized as part of cost of assets all other borrowing costs are charged to revenue.


Mar 31, 2011

1 BASIS OF ACCOUNTING:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles and accounting standards issued by The Insti- tute of Chartered Accountants of India and the provisions of the companies act –1956.

2 REVENUE RECOGNITION:

Revenue from property development activity is recognized based on percentage of completion method, determine by applying the cost plus contracts in which contractor is reimbursed for allowable or defined cost plus percentage of these cost or a fixed fee. The development work done on behalf of the owner is directly debited to the owner and development charges are credited as contract receipts to profit and loss account. No charges are receivable during the year in respect of assignment where no work has been done during the year.

3 FIXED ASSETS AND DEPRECIAION:

Fixed Assets are stated at cost less depreciation. Depreciation is provided under Straight Line Method and at the rates specified in Schedule IVX of the Companies Act-1956.

4 INVESTMENTS:

Investments are stated at cost.

5 TAX ON INCOME:

Current tax is the amount of tax payable on the taxable for the year as determined in accordance with the provision of income tax act 1961. Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carried forward of losses are recognized if, in the opinion of the management, there is virtual certainty that there will be sufficient future income available to realize such losses.

6 DEFERRED REVENUE EXPENDITURE:

Preliminary and public issue expenses are amortized over a period of ten year.

7 INVENTORY VALUATION:

There is no stock of building materials at the end of the year under review.

8 BORROWING COST:

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capitalized as part of cost of assets all other borrowing costs are charged to revenue.


Mar 31, 2010

1 BASIS OF ACCOUNTING:

The financial statements are prepared under the historical cost convention on accrual basis in accor- dance with the generally accepted accounting principles and accounting standards issued by The Insti- tute of Chartered Accountants of India and the provisions of the companies act -1956.

2 REVENUE RECOGNITION:

Revenue from property development activity is recognized based on percentage of completion method, determine by applying the cost plus contracts in which contractor is reimbursed for allowable or defined cost plus percentage of these cost or a fixed fee. The development work done on behalf of the owner is directly debited to the owner and development charges are credited as contract receipts to profit and loss account. No charges are receivable during the year in respect of assignment where no work has been done during the year,

3 FIXED ASSETS AND DEPRECIAION:

Fixed Assets are stated at cost less depreciation. Depreciation is provided under Straight Line Method and at the rates specified in Schedule IVX of the Companies Act-1956.

4 INVESTMENTS:

Investments are stated at cost.

5 TAX ON INCOME:

Current tax is the amount of tax payable on the taxable for the year as determined in accordance with the provision of income tax act 1961. Deferred tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets in respect of unabsorbed depreciation and carried forward of losses are recognized if, in the opinion of the management, there is virtual certainty that there will be sufficient future income available to realize such losses.

6 DEFERRED REVENUE EXPENDITURE:

Preliminary and public issue expenses are amortized over a period of ten year.

7 INVENTORY VALUATION:

There is no stock of building materials at the end of the year under review.

8 BORROWING COST:

Interest and other borrowing costs on specific borrowings, attributable to qualifying assets, are capital- ized as part of cost of assets all other borrowing costs are charged to revenue.

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