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Accounting Policies of Radhe Developers (India) Ltd. Company

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, 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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