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Accounting Policies of RTCL Ltd. Company

Mar 31, 2015

A. Accounting Convention

The Financial Statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013. The Accounting statements have been prepared under the historical cost convention on an accrual basis. The Accounting policies have been consistently applied by the Company are consistent with those used in the previous year.

B. Fixed Assets

Fixed Assets are stated at their original cost including freight, duties, taxes and other incidental expenses relating to the acquisition and installation and are net of credit under the Excise Modvat Scheme, wherever applicable. The Company capitalizes all costs relating to the acquisition and installation of fixed assets.

C. Depreciation

Depreciation on fixed assets for the year is computed on the Straight Line Method (SLM) as per the method prescribed in Schedule II to the Companies Act, 2013.

D. Borrowing Cost

Borrowing costs that are attributable to the acquisition of qualifying assets are capitalized as part of cost of such assets till such time assets become ready for their intended use. All other Borrowing costs are recognized as expenses in the year in which they are incurred.

E. 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.

F. 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 benefits 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.

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. Preliminary & Preoperative Expenses

Preliminary Expenses are being amortized over a period of five years.

I. Provision for Taxation

Current Income Tax is measured at the amount expected to be paid to the tax authorities in Accordance with the Income Tax Act.

J. Foreign Currency Translations

Translations in Foreign Currency are recorded by the applying the exchange rate at the date of transaction. Monetary items denominated in Foreign Currency remaining unsettled at the end of the year, are translated at the closing rates, prevailing on the Balance Sheet date. Exchange difference arising as a result of the above are recognized as income are expenses in the Profit and Loss Account except for exchange difference arising on a monetary item which, in substance, from part of the company's net Investment in a non-integral foreign operation which is accumulated in a foreign currency translation reserve until the disposal of the net investment.

K. 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.

L. Deferred Tax

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized. Deferred tax assets are recognized on carry forward or unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits. Unrecognized Deferred Tax Assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against such deferred tax assets can be realized.

M. 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 earnings 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.

N. 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.

O. Impairment of Assets

As per Accounting Standard-28 issued by the Institute of Chartered Accountants of India, the company assesses at each Balance Sheet date whether there is any indication of impairment of carrying amount of the company's Assets. The recoverable amounts of such assets are estimated. If any indication exists, and impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount.

P. Provisions

A provision is recognized when an enterprise has a present obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligations, in respect of which a realizable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligations at the Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Q. 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.

R. 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.


Mar 31, 2014

(a) Basis of Preparation

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. 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 verifi cation 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 fi xed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair 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 is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefi ts Gratuity

Provision of Gratuity is created for employees who have completed continuous fi ve 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 fi nancial 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 profi t and loss account.

(h) Impairment of Assets

If the carrying amount of fi xed 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 fl ow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefi ts 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 suffi cient future taxable income available to realize such losses.

(j) Foreign Currency Transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profi t and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefi ts will fl ow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fi xed 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.

Sale of Flats:

Sale of fl at purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

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 signifi cant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no signifi cant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) Use of Estimates

The preparation of fi nancial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of fi nancial 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.

(m) Earnings per Share

The basic earnings per share are computed by dividing the net profi t 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, 2013

(a) Basis of Preparation

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. 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 verifi cation 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 fi xed assets sold during the year.

(d) Investments

Current investments are valued at the lower of cost and fair 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 is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) Retirement Benefi ts Gratuity

Provision of Gratuity is created for employees who have completed continuous fi ve 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 fi nancial 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 profi t and loss account.

(h) Impairment of Assets

If the carrying amount of fi xed 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 fl ow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to consideration the benefi ts 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 suffi cient future taxable income available to realize such losses.

(j) Foreign Currency Transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profi t and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefi ts will fl ow to the company and the revenue can be reliably measured.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

Interest:

Interest on fi xed 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.

Sale of Flats:

Sale of fl at purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

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 signifi cant level, which is estimated to be at least 25% of the total estimated cost of project

(iv) When no signifi cant uncertainty exists regarding the amount of the consideration from sale, which is estimated on collection of at least 25% of sale consideration.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) Use of Estimates

The preparation of fi nancial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of fi nancial 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.

(m) Earnings per Share

The basic earnings per share are computed by dividing the net profi t 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, 2012

(a) Basis of Preparation

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. 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 the lower of cost and fair 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 is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) 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.

(h) 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.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to 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.

(j) Foreign Currency Transactions

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profit and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

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.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

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.

Sale of Flats:

Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

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.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) 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.

(m) 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, 2011

1. NATURE OF OPERATION

RTCL Limited (The "Company") is mainly engaged in Real Estate including renting activities.

2. SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

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. 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 the lower of cost and fair 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 is made only if such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) 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.

(h) 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.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to 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.

(j) Foreign Currency Transactions

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the report- ing currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profit and loss account.

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year, are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

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.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

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.

Sale of Flats:

Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project'

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 esti- mates 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.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

(l) 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.

(m) 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

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. 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 the lower of cost and fair 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 is made only If such a decline is other than temporary.

(e) Inventories

Inventory of Land and Building and trading goods is valued at lower of cost and net realizable value. Cost of Land and Building includes acquisition cost of land and cost of super structure built thereupon. Cost of trading goods includes acquisition cost, taxes, duties and freight. Cost is computed on FIFO basis of costing.

(f) Preliminary Expenses and Share Issue Expenses

Preliminary expenses and Share issue expenses are to be written off in ten years in equal installment from the year in which commercial production commences.

(g) 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

(h) 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 cashflow.

(i) Accounting for Taxes on Income

Provision for current Income tax is made after taking in to 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 rjarry forward of losses are recognized if there is virtual certainty that there will be suf- ficient future taxable income available to realize such losses.

(j) Foreign Currency Transactions

Initial Recognition

Foreign cunency transactions are recorded in the reporting currency, by applying the exchange rate between the report- ing currency and the foreign currency to the foreign currency amount at the date of the transaction.

Conversion

Foreign currency monetary items are reported using the closing rate. Gains and losses, if any, at the year-end in respect of monetary assets and monetary liabilities not covered by the forward contracts are recognized in the profit and loss account

Exchange Difference

Exchange difference arising on the settlement of monetary items at rate different from those at which they were initially recorded during the year are recognized as income or as expense in the year in which they arise.

(k) Revenue Recognition

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.

Sale of Goods:

Sales are recognized net of sales tax charged, and rebates/discounts allowed to customers.

Sale of Services:

Revenue from services is recognized on completion of services.

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. Sale of Flats Sale of flat purchased from other developers is recognized on execution of transfer deed in favour of the buyer.

Real Estate Development Project:

Revenue from each Real Estate Development Project is recognized:

(i) On the basis of "Percentage Completion Method"


(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.

Rent:

Revenue is recognized on an accrual basis in accordance with the terms of the relevant agreement.

v. Use of Estimates

The preparation of financiaI 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.

(J) Earnings per Share

The basic earnings per share are computed by dividing the net profit or loss attributable the equity share holders 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.

 
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