Mar 31, 2015
Basis of Accounting and preparation of Financial Statements.
a Accounting Convention
The Financial Statements are prepared on the accrual basis under the Historical Cost convention method, in accordance with the Indian Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act, 1956. Income arising on Conversion charges, if any as recovered from the customers or interest on delayed payments are accounted for in the year of recovery of such charges from the customer.
b Use of Estimates:
The preparation of Financial Statement in conformity with Generally Accepted Accounting Principles requires management to make estimates & assumptions that affect the reported amounts of assets & liabilities, disclosure of contingent assets & liabilities at the date of the Financial Statement and the reported amounts of revenue and expenses during the reporting period. Differences between the actual results and estimates will be recognized in the year in which the result will be known.
c Fixed Assets & Depreciation
i Fixed assets are recorded at the cost of acquisition less accumulated depreciation. Cost is inclusive of all incidental costs related to acquisition and installation.
ii Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act 1956 on a pro-rata basis. Assets individually costing up to Rs. 5000/- are depreciated at the rate of 100%.
i Stock-in-Hand / Commercial Units/Steel Items
Finished stock is valued at Cost or net realizable value whichever is less.
Traded stock is valued at Landed cost of Purchase or market value whichever is lower.
Quoted shares are valued at lower of cost or market value. Unquoted shares are valued at cost.
e Revenue Recognition
i Sale of commercial units is recognized when the 100% payment is received against the booking or when the possession of the unit is handed over to the buyer, whichever is earlier
ii Revenue is recognized on percentage of completion method. and is recognized only with regard to those projects for which construction cost being material and labour incurred is more than 25% of the estimated construction cost of the project and only against those units in respect of which more than 25% of the sale price is received as advance.
iii Interest on deployment of funds is recognized based on agreed rates of interest, using time proportion method.
iv Sale of Trading is accounted on transfer of ownership of goods to buyers.
v Profit / Loss on sale of securities is accounted on weighted average method & is calculated based on daily mark to market position. Profit on sale of securities is netted with the loss on sale of securities.
vi Maintenance charges are recognised as per the terms & condition agreed between the company and the customers.
Expense in general are accounted for on accrual basis. Provisions are made for all known losses and liabilities.
g Tax on Income
Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.