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Accounting Policies of Rajsanket Realty Ltd. Company

Mar 31, 2014

I) Basis of Accounting

The financial statements are prepared on historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956.

ii) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation.

iii) Depreciation

Depreciation on Fixed Assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956 on prorate basis.

iv) Investments

Long Term Investments are stated at cost.

v) Inventories

Shares and securities held as stock-in-trade are valued at cost or market price, whichever is lower. Plots of land held as stock-in-trade are valued at cost. Construction work in progress is valued at cost where cost include cost of land and cost of development rights, construction and development costs directly related to specific project, borrowing costs and other costs attributable to the construction activity in general which are allocated to the projects on appropriate basis. Stock at site of building materials is valued at cost.

vi) Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Project Revenue

Revenue in respect of project "Raj Infinia" is recognized on the percentage completion method in accordance with the "Guidance Note on Accounting for Real Estate Transactions" issued by the Institute of Chartered Accountants of India.

Interest

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

vii) Transactions in Foreign Currency

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Premium on forward cover contracts, if any, in respect of imports is charged to profit & loss account over the period of contract. All monetary assets and liabilities as at the Balance sheet date, not covered by forward contracts are reinstated at the applicable exchange rates prevailing on that date. All exchange differences arising on transactions, not covered by forward contracts, are charged to Profit & Loss Account.

viii) Borrowing Cost

Borrowing costs that are attributable to the acquisition, construction or development of properties and assets under construction of qualifying assets are treated as direct cost and are considered as part of such assets. This includes those cost on borrowings acquired specifically for the construction or development of properties and assets under construction as well as those in relation to general borrowings used to finance the construction or development of properties and assets under construction. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.

ix) Taxation

Tax expenses comprise current tax and deferred tax charge/credit. The deferred tax charge/credit is recognized using current tax rates. Deferred tax assets/liabilities are reviewed at each Balance sheet date.

x) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

xi) Impairment of Assets

The Company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the assets. If such recoverable amount of the assets or the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. If at the Balance Sheet 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 subject to a maximum of depreciated historical cost.


Mar 31, 2010

I) Basis of Accounting

a) The company follows mercantile system of accounting.

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

ii) Fixed Assets

Fixed assets are stated at cost less depreciation.

iii) Depreciation

Depreciation on Fixed Assets is provided on written down value method at the rates specified in Schedule XIV to the Companies Act, 1956.

iv) Investments

Long Term Investments are stated at cost.

v) Inventories

Shares and Securities held as Stock-in-trade are valued at cost or market price, whichever is lower. Plots of land held as Stock-in-trade are valued at Cost. Construction work in progress is valued at cost.

vi) Taxation

Tax expenses comprise current tax and deferred tax charge/credit. The deferred tax charge/ credit is recognized using current tax rates. Deferred tax assets/liabilities are reviewed at each Balance sheet date.

vii) Miscellaneous Expenditure

Preliminary Expenses are amortized over a period of 10 (ten) years. Amalgamation expenses shall be amortized in accordance with section 35D of the Income Tax Act, 1961.

viii) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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