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Accounting Policies of Raghava Estates & Properties Ltd. Company

Mar 31, 2014

1.1 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 comply with the provisions of the Companies Act, 1956. The preparation of the financial statements, in conformity with generally accepted accounting principles, requires the use of estimated and assumptions that affect the reported amount of assets and liabilities as at the Balance Sheet date, reported amounts of revenues and expenses during the year and disclosure of contingent liabilities as at that date. The estimates and assumptions used in these financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements.

1.2 Income recognition:

(a) Revenue is recognized on completion of registration of Lands/Plots/Flats to the respective buyers.

(b) All other income is recognized on accrual basis.

1.3 Fixed Assets and Depreciation/Amortisation:

Fixed Assets are stated at historical cost less accumulated depreciation. Depreciation on assets is provided on the Written Down Value method at rates prescribed in Schedule XIV to the Companies ACt,1956. Company does not have any intangible assets.

1.4 Investments:

Non-Current investments consists 334427 of Equity Shares of Sarega Aqua Ltd have been valued at Cost.

1.5 Foreign Currency Transactions:

Company has no foreign currency transactions during the year.

1.6 Valuation of Inventories:

Stock of finished plots/flats and work-in-progress has been valued at Cost plus development expenses. Stock of Land has been valued at Cost. Cost includes consideration, stamp duty, registration and other incidental expenses.

1.7 Employee Benefits:

The provisions of Provident Fund Act and ESI Act are applicable to the company and the company is generally regular in depositing the dues with the appropriate authorities. The provisions of Payment of Gratuity Act are not applicable to the company.

1.8 Taxation:

Current tax is provided on the taxable income for the year. Deferred tax liabilities arising from timing differences have been fully provided. Deferred tax assets are recognized on the consideration of prudence.

1.9 Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date to ascertain impairment based on internal/external factors. An impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the higher of the net selling price of the assets and their value in use.

1.10 Provisions:

Provisions are recognised when the Company has present legal or constructive obligations, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.


Mar 31, 2013

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:

1.1 Basis of preparation of Financial Statements:

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified by the Companies (Accounting Standard) Rules, 2006(as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under historical cost convention.

1.2 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management of the company to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized

1.3 Tangible Assets:

Tangible assets are stated at cost less accumulated depreciation and impairment losses, if any. Direct cost comprises of all expenditure of capital in nature attributable to bringing the tangible fixed asset to working condition for its intended use and incidental expenses including interest relating to acquisition, until Tangible assets are ready to be put to use.

1.4 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.

(i) Income from sale of units of mutual funds is recognized on its realization.

(ii) Interest on bank deposits is recognized on a time proportion basis taking into account the amounts invested and the rate applicable.

1.5 Investments:

Investments, which are readily realizable and intended to be held of not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long term investments are carried at cost less provision for diminution, other that of temporary nature, in value of such investments.

1.6 Employee Benefits:

Contribution to provident fund is made on actual liability and accounted for on accrual basis. No provision has been made for the retirement benefits of the employees. Provisions of payment of Gratuity Act applies to the company. Even though there are employees who have put in qualifying service to be eligible for Gratuity, provision against liability was not made in the accounts.

1.7 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs, if any, are charged to the statement of Profit & Loss as period costs.

1.8 Provision for Current and Deferred Taxes:

Provision for current 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 taxable income and accounting income is accounted for using the tax rates and laws that are enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in the future.

1.9 Provisions, Contingent Liabilities and Contingent Assets:

i) A provision is recognized when the company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its 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 best estimates.

ii) Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.10 General:

Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.


Mar 31, 2012

1.1 Basis of preparation of Financial Statements:

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified by the Companies (Accounting Standard) Rules, 2006(as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under historical cost convention.

1.2 Use of Estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management of the company to make estimates and assumptions that effect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized

1.3 Tangible Assets:

Tangible assets are stated at cost less accumulated depreciation and impairment losses, if any. Direct cost comprises of all expenditure of capital in nature attributable to bringing the tangible fixed asset to working condition for its intended use and incidental expenses including interest relating to acquisition, until Tangible assets are ready to be put to use.

1.4 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.

(i) Income from sale of units of mutual funds is recognized on its realization

(ii) Interest on bank deposits is recognized on a time proportion basis taking into account the amounts invested and the rate applicable.

1.5 Investments:

Investments, which are readily realizable and intended to be held of not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long term investments are carried at cost less provision for diminution, other that of temporary nature, in value of such investments.

1.6 Employee Benefits:

Contribution to provident fund is made on actual liability and accounted for on accrual basis. No provision has been made for the retirement benefits of the employees. Provisions of payment of Gratuity Act applies to the company. Even though there are employees who have put in qualifying service to be eligible for Gratuity, provision against liability was not made in the accounts.

1.7 Borrowing Costs:

Borrowing costs that are directly attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs, if any, are charged to the statement of Profit & Loss as period costs.

1.8 Provision for Current and Deferred Taxes:

Provision for current 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 taxable income and accounting income is accounted for using the tax rates and laws that are enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in the future.

1.9 Provisions, Contingent Liabilities and Contingent Assets:

i) A provision is recognized when the company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its 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 best estimates.

ii) Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.10 General:

Any other accounting policy not specifically referred to are consistent with generally accepted accounting principles.


Mar 31, 2011

1.1 METHOD OF ACCOUNTING:

The company maintains its accounts on accrual basis. The financial statements are prepared under the historical cost conversion and on the accounting principles of a going concern.

1.2 FXED ASSETS:

Fixed Assets are stated at cost less depreciation.

1.3 DEPRECIATION:

Depreciation of fixed assets put to use have been provided for on the WDV method at the rates as specified by schedule XIV of the Companies Act,1956.

1.4 INVESTMENTS:

All investments are considered as long term investments and are stated at cost.

1.5 INVENTORY VALUATION:

i) Raw materials and stores are valued at lower of cost or net realisable value.

ii) Property development projects in progress are valued at lower of cost and net realisable value (taking into consideration the estimate cost to complete)

iii) Land (stock in trade) is valued at the lower of cost and net realizable value.

1.6 REVENUE RECOGNITION:

i) The company follows the mercantile system of accounting and recognizes

Income and expenditure on accrual basis.

ii) Turnover on property development projects:

The company follows the percentage of completion method.

1.7 RETIRMENT BENEFITS:

a) Contribution to provident fund is made on actual liability and accounted for on accrual basis. No provision has been made for the retirement benefits of the employees.

b) Provisions of payment of Gratuity Act applies to the company. Even though there are employees who have put in qualifying service to be eligible for Gratuity, provision against liability was not made in the accounts.

c) Provisions of payment of Bonus Act are applicable to the company. Hence as per the Act, Bonus @ of 8.33% amount of Rs.2,37,001/- and the same was not provided in the accounts.

1.8 DIVIDENDS:

No dividend has been recommended by the board.


Mar 31, 2010

1.1 METHOD OF ACCOUNTING:

The company maintains its accounts on accrual basis. The financial statements are prepared under the historical cost conversion and on the accounting principles of a going concern.

1.2 FXED ASSETS:

Fixed Assets are stated at cost less depreciation.

1.3 DEPRECIATION:

Depreciation of fixed assets put to use have been provided for on the WDV method at the rates as specified by schedule XIV of the Companies Act,1956.

1.4 INVESTMENTS:

All investments are considered as long term investments and are stated at cost.

1.5 INVENTORY VALUATION:

i) Raw materials and stores are valued at lower of cost or net realisable value.

ii) Property development projects in progress are valued at lower of cost and net realisable value (taking into consideration the estimate cost to complete)

iii) Land (stock in trade) is valued at the lower of cost and net realizable value.

1.6 REVENUE RECOGNITION:

i) The company follows the mercantile system of accounting and recognizes Income and expenditure on accrual basis.

ii) Turnover on property development projects:

The company follows the percentage of completion method.

1.7 RETIRMENT BENEFITS:

a) Contribution to provident fund is made on actual liability and accounted for on accrual basis. No provision has been made for the retirement benefits of the employees.

b) Provisions of payment of Gratuity Act applies to the company. Even though there are employees who have put in qualifying service to be eligible for Gratuity, provision against liability was not made in the accounts.

c) Provisions of payment of Bonus Act arc applicable to the company. Hence as per the Act, Bonus @ of 8.33% amount of Rs.2,26,188/- and the same was not provided in the accounts.

1.8 DIVIDENDS:

No dividend has been recommended by the board.


Mar 31, 2009

1.1 METHOD OF ACCOUNTING:

The Company maintains its accounts on accural basis. The financial statements are prepared under the historical cost conversion and on the accounting principles of a going concern.

1.2 FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

1.3 DEPRECIATION:

Depreciation of fixed assets put to use have been provided for on the WDV method at the rates as specified by Schedule XIV of the Companies Act, 1956.

1.4 INVESTMENTS:

All Investments are considered as long term Investments and are stated at cost.

1.5 INVENTORY VALUATION :

i) Raw Materials and stores are valued at lower of cost or net realisable value.

ii) Property development projects in progress are valued at lower of cost and net realisable value (taking consideration the estimate cost to complete)

iii) Land (Stock in trade) is valued at the lower of cost and net realisable value.

1.6 REVENUE RECOGNITION :

i) The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis.

i) Turnover on property development projects:

The Company follows the percentage of completion method.

1.7 RETIREMENT BENEFITS:

a) Contribution to provident Fund is made on actual liability and accounted for on accrual basis. No provision has been made for the retirement benefits of the employees.

b) Provisions of payment of Gratuity Act applies to the Company. Even though there are employees who have put in qualifying service to be eligible for Gratuity, Provision against Liability was, not made in the accounts.

c) Provisions of payment of Bonus Act are applicable to the company. Hence as per the Act Bonus @ of 8.33% has to be provided in the accounts.

1.8 DIVIDENDS:

No Dividend has been recommended by the Board.

 
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