Mar 31, 2015
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Financial Statements are prepared under the historical cost
convention on the basis of going concern and in accordance with the
Accounting Standards specified under Section 133 of the Companies Act,
2013 read with Rule 7 of the Companies (Accounts) Rules, 2014. "
USE OF ESTIMATES
In preparing the Financial Statements in conformity with accounting
principles generally accepted in India, Management is required to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities as at the
date of Financial Statements and the amounts of revenue and expenses
during the reported period. Actual results could differ from those
estimates. Any revision to such estimates is recognised in the period
the same is determined.
FIXED ASSETS
Tangible Assets are stated at cost of acquisition less accumulated
depreciation. Cost includes all expenses related to acquisition and
installation of the concerned assets.
DEPRECIATION
Depreciation of Tangible assets is provided as per Schedule II to the
Companies Act 2013 . Due to change in the method of Depreciation ,
excess depreciation provided amounts to Rs. 1,45,878/-
IMPAIRMENT OF ASSETS
Impairment is ascertained at each Balance Sheet date in respect of the
Company's fixed assets. An impairment loss is recognised whenever the
carrying amount of an asset or cash generating unit exceeds its
recoverable amount.
INVENTORIES
"Inventories are valued as under)
a) Completed Flats/ Shops - At lower of cost or market value)
b) Construction work-in-progress - At cost Construction
work-in-progress includes cost of land, borrowing costs, construction
and development costs and expenses incidental to the projects
undertaken by the company."
REVENUE RECOGNITION
The company will follow the Guidance Note on Accounting for Real Estate
Transactions (Revised 2012) issued in February, 2012 by the Institute
of Chartered Accountants of India for revenue recognition of real
estate projects. Revenue on real estate projects is recognized on the
percentage of completion (POC) method, when :
a) All significant risks and rewards of ownership by way of a legally
enforceable agreement to sale have been transferred to the buyer.
b) The outcome of the real estate project can be estimated reliably
c) It is probable that the economic benefits associated with the
project will flow to the enterprise
d) The project costs to complete the project and the stage of project
completion at the reporting date can be measured reliably
e) The project costs attributable to the project can be clearly
identified and measured reliably so that actual project costs incurred
can be compared with prior estimates.
Further, the company recognizes revenue on POC on completion of the
following events :
a) All critical approvals necessary for commencement of the project
have been obtained
b) The expenditure incurred on construction and development is not less
than 25% of the total estimated construction and development costs
c) At least 25% of the saleable project area is secured by contracts or
agreements with buyers, and
d) At least 10% of the total revenue as per the agreements of sale or
any other legally enforceable document are realized at the reporting
date in respect of each of the contracts and it is reasonable to expect
that the parties to such contracts will comply with the payment terms
as defined in the contracts.
Determination of revenues under the POC method necessarily involves
making estimates, some of which are of technical nature. Estimates of
project income and project costs are reviewed periodically. The effects
of changes, if any, to estimates is recognized in the financial
statements for the period in which such changes are determined. When it
is probable that total costs will exceed total project revenue, the
expected loss is recognized as an expense immediately. Revenue
recognized over and above the amount due as per payment plans agreed
with the customers, is disclosed as unbilled revenue under Other
Current Assets.
EMPLOYEE BENEFITS
Short Term Employees' Benefits are recognised in the statement of
Profit and Loss of the year in which related services are rendered.
Post employment and other Long Term Employee Benefits :
(I) Gratuity : Provision for gratuity is not required to be made as
none of the employees has completed his five years of continuous
services, as per the provisions of The Payment of Gratuity Act, 1972.
(ii) Leave Encashment : As per HR Policy Manual employees are entitled
for casual leave and sick leave.
There has been no provision for privilege leave entitlement of
employees in that manual. (iii) Provident Fund : Provident Fund for
most of the employees is a Defined Contribution Scheme, where the
Contribution is made to Fund administered by the Government Provident
Fund Authority.
TAXES ON INCOME
Income-tax is accounted for in accordance with Accounting
Standard(AS-22) - 'Accounting for Taxes on Income ' specified under
Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014 .
Deferred Tax is provided and recognised on timing differences between
taxable income and accounting income subject to prudential
consideration.
Deferred Tax assets on unabsorbed depreciation and carry forward losses
are not recognised unless there is virtual certanity about availability
of future taxable income to realise such assets.
PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognised in terms of Accounting Standard(AS-29) - '
Provisions, Contingent Liabilities and Contingent Assets' specified
under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, when there is a present legal or statutory
obligation as a result of past events, where it is probable that there
will be outflow of resources to settle the obligation and when a
reliable estimate of the amount of the obligation can be made.
Contingent Liabilities are recognised only when there is a possible
obligation arising from past events due to occurence or non-occurence
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an on going
basis and only those having a largely probable outflow of resources are
provided for. Contingent Assets are not recognised in the Financial
Statements.
Mar 31, 2014
"BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Financial Statements are prepared under the historical cost
convention on the basis of going concern and in accordance with the
Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006, persuant to Section 211(3C) of the Companies
Act, 1956 ("the Act") and other relevant provisions of "the Act"
thereof.
USE OF ESTIMATES
In preparing the Financial Statements in conformity with accounting
principles generally accepted in India, Management is required to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilitiesasat the
date of Financial Statements and the amounts of revenue and expenses
during the reported period. Actual results could differ from those
estimates. Any revision to such estimates is recognised in the period
the same is determined.
FIXED ASSETS
Tangible Assets are stated at cost of acquisition less accumulated
depreciation. Cost includes all expenses related to acquisition and
installation of the concerned assets.
DEPRECIATION
Depreciation of Tangible assets is provided on "Written Down Value"
method at the rates, which are in conformity with the requirements of
Schedule XIV of the Companies Act, 1956.
IMPAIRMENT OF ASSETS
Impairment is ascertained at each Balance Sheet date in respect of the
Company''s fixed assets. An impairment loss is recognised whenever the
carrying amount of an asset or cash generating unit exceeds its
recoverable amount.
INVENTORIES
Inventories are valued as under
a) Completed Flats/ Shops - At lower of cost or market value
b) Construction work-in-progress - At cost
Construction work-in-progress includes cost of land, borrowing costs,
construction and development costs and expenses incidental to the
projects undertaken by the company.
REVENUE RECOGNITION
The company will follow the Guidance Note on Accounting for Real Estate
Transactions (Revised 2012) issued in February, 2012 by the Institute
of Chartered Accountants of India for revenue recognition of real
estate projects. Revenue on real estate projects is recognized on the
percentage of completion (POC) method, when :
a) All significant risks and rewards of ownership by way of a legally
enforceable agreement to sale have been transferred to the buyer.
b) The outcome of the real estate project can be estimated reliably
c) It is probable that the economic benefits associated with the
project will flow to the enterprise
d) The project costs to complete the project and the stage of project
completion at the reporting date can be measured reliably
e) The project costs attributable to the project can be clearly
identified and measured reliably so that actual project costs incurred
can be compared with prior estimates._
"Further, the company recognizes revenue on POC on completion of the
following events :
a) All critical approvals necessary for commencement of the project
have been obtained
b) The expenditure incurred on construction and development is not less
than 25% of the total estimated construction and development costs
c) At least 25% of the saleable project area is secured by contracts or
agreements with buyers, and
d) At least 10% of the total revenue as per the agreements of sale or
any other legally enforceable document are realized at the reporting
date in respect of each of the contracts and it is reasonable to expect
that the parties to such contracts will comply with the payment terms
as defined in the contracts.
Determination of revenues under the POC method necessarily involves
making estimates, some of which are of technical nature. Estimates of
project income and project costs are reviewed periodically. The effects
of changes, if any, to estimates is recognized in the financial
statements for the period in which such changes are determined. When it
is probable that total costs will exceed total project revenue, the
expected loss is recognized as an expense immediately. Revenue
recognized over and above the amount due as per payment plans agreed
with the customers, is disclosed as unbilled revenue under Other
Current Assets."
EMPLOYEE BENEFITS
Short Term Employees'' Benefits are recognised in the statement of
Profit and Loss of the year in which related services are rendered.
Post employment and other Long Term Employee Benefits :
(i) Gratuity : Provision for gratuity is not required to be made as
none of the employees has completed his five years of continuous
services, as per the provisions of The Payment of Gratuity Act, 1972.
(ii) Leave Encashment : As per HR Policy Manual employees are entitled
for casual leave and sick leave.
There has been no provision for privilege leave entitlement of
employees in that manual.
(iii) Provident Fund : Provident Fund for most of the employees is a
Defined Contribution Scheme, where the Contribution is made to Fund
administered by the Government Provident Fund Authority.
TAXES ON INCOME
Income-tax is accounted for in accordance with Accounting
Standard(AS-22) - ''Accounting for Taxes on Income '' notified pursuant
to the Companies (Accounting Standards) Rules, 2006.
Deferred Tax is provided and recognised on timing differences between
taxable income and accounting income subject to prudential
consideration.
Deferred Tax assets on unabsorbed depreciation and carry forward losses
are not recognised unless there is virtual certanity about availability
of future taxable income to realise such assets.
PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognised in terms of Accounting Standard(AS-29) - ''
Provisions, Contingent Liabilities and Contingent Assets'' notified
pursuant to the Companies (Accounting Standards) Rules, 2006, when
there is a present legal or statutory obligation as a result of past
events, where it is probable that there will be outflow of resources to
settle the obligation and when a reliable estimate of the amount of the
obligation can be made.
Contingent Liabilities are recognised only when there is a possible
obligation arising from past events due to occurance or non-occurance
of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms
of future outflow of resources or where a reliable estimate of the
obligation cannot be made. Obligations are assessed on an on going
basis and only those having a largely probable outflow of resources are
provided for.
Contingent Assets are not recognised in the Financial Statements.
d) RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO SHARES:
The Company has only one class of equity share having a par value of
Rs.10 per share. Each holder of equity shares is entitled to one vote per
share held. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the Annual General Meeting
except in case of interim dividend. In the event of Liquidation, the
shareholders are eligible to receive the remaining assets of the
company after distribution of all preferential amounts, in proportion
to their shareholding.
Mar 31, 2013
(a) system of Accounting:
The financial statements have been prepared under the historical cost
convention in accordance with:
(i) The Generally Accepted Accounting Principles.
(ii) The Accounting Standards specified by the Institute of Chartered
Accountants of India.
(iii) The Provisions of the Companies Act 1956.
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
All financial transactions have been recognized on accrual basis. The
management has made the required estimates and assumptions in
conformity with Generally Accepted Accounting Principles wherever
necessary.
(b) Presentation and disclosure of financial statements:
The Financial Statements has been prepared as per the Revised Schedule
VI notified under the Companies Act, 1956. The adoption of Revised
Schedule VI does not impact recognition and measurement principles
followed for preparation of financial statements. However, it has
significant impact on presentation and disclosures made in the
financial statements.
(c) Fixed Assets:
Fixed Assets are stated at cost of acquisition less accumulated
depreciation. Cost includes all expenses related to acquisition and
installation of the concerned assets.
(d)Inventories:
Inventories are valued at lower of cost and estimated net realisable
value.
(e)Investments:
Long Term Investments are valued at cost. Current Investments are
valued at lower of the cost or net realisable value.
(f) Revenue Recognition:
Revenue/income and cost/expenditure are generally accounted on accrual
basis as they are earned or incurred.
(g) Accounting for Taxes:
Provision for tax is made by using applicable tax rates and tax laws.
Deferred tax charge or credit on timing difference is recognized using
tax rates and tax laws that has been enacted or substantively enacted
as of the Balance Sheet date. Deferred Tax Assets are recognised to the
extent there is virtual certainty that there will be sufficient future
taxable income available to realise such assets.
(h)Earnings per Share:
Earning per share are calculated by dividing the net profit or net loss
for the period attributable to the equity shareholders by the weighted
average number of equity shares outstanding during the period.
(i)Employee Benefits:
All short term employees'' benefits like salaries, wages, bonus, etc.
are recognised in the period in which the employee rendered the related
service.
(j) Provisions and Contingencies:
A provision is recognised when the Company has a present obligation as
a result of past events and 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. Contingent liabilities are disclosed in
the Notes.
Mar 31, 2012
(a) system of Accounting:
The financial statements have been prepared under the historical cost
convention in Accordance with: (I) The Generally Accepted Accounting
Principles,
(ii) The Accounting Standards specified by the institute sf Chartered
accountants of India (ICAI)
(iii) The provisions of the Companies Act, 1956
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
All financial transactions have been recognized on accrual basis. The
management has made the required estimates and assumptions in
conformity with Generally Accepted Accounting Principles wherever
necessary.
(b) Presentation and disclosure of financial statements:
During the year ended 31st March, 2012, the revised Schedule VI
notified under the Companies Act,1956 has be come applicable to the company,for preparation and presentation of its financial statements. The adoption of Revised Schedule Vl does not impact recognition and measurement
principles followed for preparation offinancial statements. Forever, it has
significant impact on presentation and disclosures made in the
financial statements. The company has also reclassified and regrouped
the previous year figures in accordance with the requirements of
Revised Schedule VI.
(c) Revenue Recognition:
Revenue/income and cost/expenditure are generally accounted on accrual
basis as they are earned or incurred.
(d) Fixed Assets:
There are no fixed assets
(e) Investments:
Investments are valued at cost,
(f) Accounting for Taxes:
provision for tax is made by applying tax rates and tax laws. Deferred
tax charge or credit on timing difference is recognized using current
tax rates and tax laws that has been enacted or substantively enacted
as ofthe Balance Sheet date" Deferred Tax Assets are recognised to the
extent there is virtual certainty that these Assets can be realised in
future.
Mar 31, 2010
A) The Company generally follows Mercantile System of Accounting and
mainly complles with the mandatory standards Issued by the Institute of
Chartered Accountants of India.
b) The Accounts are prepared on historical cost conversion basis and as
a going concern. Unless otherwise specially provided the Companys
Accounting Policies are consistent with generally accepted accounting
policies.
c) Revenue is recognized on accrual basis.
d) There are no fixed assets.
e) Investments represent Equity Shares in unlisted Companies are stated
at Cost. These investments are held in the name of the Company. In the
previous years printed statement on Notes on Accounts annexed to
Balance sheet there was a mention that the investments are not held in
the name of the Company which was untrue and was a typographical error.
This stood corrected.
Mar 31, 2003
A. The Company generally follows Mercantile System of Accounting and
mainly complies with the mandatory standards issued by the Institute of
Chartered Accountants of India.
b. The Accounts are prepared on historical cost conversion basis and
as a going concern. Unless otherwise specially provided the Companys
Accounting Policies are consistent with generally accepted accounting
policies.
c. Revenue is recognized on accrual basis.
d. Fixed Assets are stated at cost and inclusive of Direct Expenses
e. Depreciation is not provided in the accounts in view of the losses
of the Company.