Mar 31, 2014
A) NATURE OF OPERATION
Raghunath International Limited (The "Company") is mainly engaged in
Real Estate including renting activities and trading and agency
business.
b) Basis of Accounting
(i) Basis of Preparation of Financial Statement
Financial statements are prepared under the historical cost convention
in consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. The company follows accrual basis of
accounting in accordance with the provisions of The Companies Act,
1956.
(ii) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verification of the assets is
carried out once in three years.
(iii) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fixed assets sold during the year.
(iv) Investments
Current investments are valued at lower of cost and fair market value,
and long-term investments are stated at cost in accordance with
Accounting Standard - 13 on "Accounting for Investments" issued by the
Institute of Chartered Accountants of India. Provision for diminution
in the value of long-term investments shall be made only if such a
decline is other than temporary.
(v) Inventories
Land and Building
Direct expenses like cost at site, material used for project
construction, costs for moving the plant and machinery to the site and
general expenses incurred specifically for the respective project and
construction overheads are taken as the total cost of the respective
project.
(i) Work in progress, in the case of Real Estate Development projects,
represents the cost incurred in respect of unsold area of the
incomplete Real Estate Development projects.
(ii) Stock of Plots and apartments, classified as stock in trade, are
valued at cost or net realizable value whichever is lower.
(iii) Building material purchased specifically for the projects are
taken as consumed as and when received.
(vi) Retirement Benefits
Gratuity
Provision of Gratuity is created for employees who have completed
continuous five years'' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company''s contribution to provident fund is charged to profit and loss
account.
(vii) Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash flow.
(viii) Accounting for Taxes on Income
Provision for current Income tax is made after taking into
consideration the benefits admissible under the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
sufficient future taxable income available to realize such losses.
(ix) Revenue Recognition
Sale of Goods:
Sales include excise duty, where applicable and represent invoice value
of goods sold as reduced by rebates and discounts.
Sale of Flats:
Sale of flat purchased from other developers is recognized on execution
of transfer deed in favour of the buyer.
In respect of development projects undertaken by the company, revenue
is recognised when the significant risks and rewards of ownership of
the unit in real estate have passed to the buyer and the revenue is
recognized to the extent that it is probable that the economic benefit
s will flow to the Company and the revenue can be reliably measured.
Construction Contracts:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale, which is estimated on collection of at least
25% of sale consideration.
Real Estate Development Project:
The Company follows completed project method of accounting ("Project
Completion Method of Accounting"). Allocable expenses incurred during
the year are debited to work-in-progress account. The income is
accounted for as and when the projects get completed or substantially
completed and then revenue is recognized to the extent that it is
probable that the economic benefit s will flow to the Company and the
revenue can be reliably measured.
Royalty:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
Interest:
Interest on fixed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
(x) 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 and the reported amount
of revenues 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.
(xi) Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
Mar 31, 2012
A) NATURE OF OPERATION
Raghunath International Limited (The "Company") is mainly engaged in
Real Estate including renting activities and trading and agency
business.
b) Basis of Accounting
(i) Basis of Preparation of Financial Statement
Financial statements are prepared under the historical cost convention
in consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. The company follows accrual basis of
accounting in accordance with the provisions of The Companies Act,
1956.
(ii) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verification of the assets is
carried out once in three years.
(iii) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fixed assets sold during the year.
(iv) Investments
Current investments are valued at lower of cost and fair market value,
and long-term investments are stated at cost in accordance with
Accounting Standard - 13 on "Accounting for Investments" issued by the
Institute of Chartered Accountants of India. Provision for diminution
in the value of long-term investments shall be made only if such a
decline is other than temporary.
(v) Inventories
Land and Building
Direct expenses like cost at site, material used for project
construction, costs for moving the plant and machinery to the site and
general expenses incurred specifically for the respective project and
construction overheads are taken as the total cost of the respective
project.
(i) Work in progress, in the case of Real Estate Development projects,
represents the cost incurred in respect of unsold area of the
incomplete Real Estate Development projects.
(ii) Stock of Plots and apartments, classified as stock in trade, are
valued at cost or net realizable value whichever is lower.
(iii) Building material purchased specifically for the projects are
taken as consumed as and when received.
(vi) Retirement Benefits
Gratuity
Provision of Gratuity is created for employees who have completed
continuous five years' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company's contribution to provident fund is charged to profit and loss
account.
(vii) Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash flow.
(viii) Accounting for Taxes on Income
Provision for current Income tax is made after taking into
consideration the benefits admissible under the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
sufficient future taxable income available to realize such losses
(ix) Revenue Recognition
Sale of Goods:
Sales include excise duty, where applicable and represent invoice value
of goods sold as reduced by rebates and
discounts.
Sale of Flats:
Sale of flat purchased from other developers is recognized on execution
of transfer deed in favour of the buyer. In respect of development
projects undertaken by the company, revenue is recognised when the
significant risks and rewards of ownership of the unit in real estate
have passed to the buyer and the 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.
Construction of Contracts:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale, which is estimated on collection of at least
25% of sale consideration.
Real Estate Development Project:
The Company follows completed project method of accounting ("Project
Completion Method of Accounting"). Allocable expenses incurred during
the year are debited to work-in-progress account. The income is
accounted for as and when the projects get completed or substantially
completed and then 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. Royalty: Revenue is recognized on an
accrual basis in accordance with the terms of the relevant agreement.
Interest: Interest on fixed deposits is recognized on accrual basis on
a time proportion basis taking in to account the amount outstanding and
the rate applicable.
Dividend: Revenue is recognized when the right to receive the income is
established.
Rent: Revenue is recognized on an accrual basis in accordance with the
terms of the relevant agreement.
(x) 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 and the reported amount
of revenues 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.
(xi) Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
Mar 31, 2010
(a) Basis of Preparation of Financial Statement
Financial statements are prepared under the historical cost convention
in consonance and accordance with ap- plicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. The company follows accrual basis of
accounting in accordance with the provisions of The Companies Act,
1956.
(b) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verification of the assets is
carried out once in three years.
(c) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fixed assets sold during the year.
(d) Investments
Current investments are valued at lower of cost and fair market value,
and long-term investments are stated at cost in accordance with
Accounting Standard - 13 on "Accounting for Investments" issued by the
Institute of Chartered Accountants of India. Provision for diminution
in the value of long-term investments shall be made only if such a
decline is other than temporary.
(e) Inventories
Pan Masala and Allied Products
(i) Inventories of raw material and packing material are valued at
lower of cost and net realizable value. The cost of raw material and
packing material is computed on weighted average basis.
(ii) Consumption of raw material and packing material is recognized at
the end of the month on a fixed ratio. Freight and Cartage is charged
to Profit and Loss Account.
(iii) Inventory of Finished goods is valued at lower of cost and net
realizable value. Cost includes raw material cost, conversion cost,
packing material cost and other cost incurred in bringing the
inventories to their present location and condition.
Land and Building
Direct expenses like cost at site, material used for project
construction, costs for moving the plant and machinery to the site and
general expenses incurred specifically for the respective project and
construction overheads are taken as the total cost of the respective
project.
(i) Work in progress, in the case of Real Estate Development projects,
represents the cost incurred in respect of unsold area of the
incomplete Real Estate Development projects.
(ii) Stock of Plots and apartments, classified as stock in trade, are
valued at cost or net realizable value which- ever is lower.
(iii) Building material purchased specifically for the projects are
taken as consumed as and when received.
(f) Retirement Benefits
Gratuity
Provision of Gratuity is created for employees who have completed
Continuous five years of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Companys contribution to provident fund is charged to profit and loss
account.
(g) Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash flow.
(h) Accounting for Taxes on Income
Provision for current Income tax is made after taking into
consideration the benefits admissible under the provi- sions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
sufficient future taxable income available to realize such losses.
(i) Revenue Recognition
Sale of Goods:
Sales include excise duty, where applicable and represent Invoice value
of goods sold as reduced by rebates and discounts.
Sale of Flats:
Sale of flat purchased from other developers is recognized on execution
of transfer deed in favour of the buyer.
In respect of development projects undertaken by the company, revenue
Is recognised when the significant risks and rewards of ownership of
the unit in real estate have passed to the buyer and the revenue is
recognized to the extent that it is probable that the economic benefit
s will flow to the Company and the revenue can be reliably measured.
Construction of Contracts:
Revenue from each Real Estate Development Project is recognized: (i) On
the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale, which is esti- mated on collection of at least
25% of sale consideration.
Real Estate Development Project:
The Company follows completed project method of accounting ("Project
Completion Method of Accounting"). Allocable expenses Incurred during
the year are debited to work-in-progress account. The income is
accounted for as and when the projects get completed or substantially
completed and then revenue is recognized to the extent that it is
probable that the economic benefit s will flow to the Company and the
revenue can be reliably measured.
Royalty:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement. Interest- Interest on fixed deposits is
recognized on accrual basis on a time proportion basis taking in to
account the amount outstanding and the rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
fj) 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 and the reported amount
of revenues 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.
(K) Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity sharehold- ers for the.period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.