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.