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Accounting Policies of Square Four Projects India Ltd. Company

Mar 31, 2015

A) Basis of Accounting.

The Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in India, mandatory accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 read with General Circular 8/2014 dated April 4, 2014, issued by the Ministry of Corporate Affairs. The Financial Statements have been prepared under the historical cost convention on an accrual basis, The accounting policies applied by the Company are consistent with those used in the previous year. All the assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule III to the Companies Act, 2013 read with General Circular 8/2014 dated April 4, 2014, issued by the Ministry of Corporate Affairs. Mercantile system of accounting is generally followed except for income on account of insurance and other such claims receivable which are accounted for only on receipt basis on account of uncertainties

The accounts for the relevant year have been prepared on a going concern basis though the operations have been suspended and almost all the fixed assets of the Company have been disposed of. The promoters of the Company have brought in fresh equity capital in an earlier year and the Company has initiated steps for obtaining relevant permissions from the concerned statutory bodies for embarking on new projects.

c) Use of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosures relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates.

d) Operating Cycle

Based on the nature of business the time between the acquisition of assets for the purpose of the business and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

e) Investments

a) CLASSIFICATION : Investments are classified into the following category :

Long Term Investments: All Investments in Securities, where such investments are intended (at the time of purchase or acquisition thereof) to be held for a period exceeding one year, are classified as Long Term Investments. Investments which are intended to be held for a period of less than one year are classified as short term investments. Amounts paid towards shares purchased pending completion of transfer formalities and receipt of share certificates are shown as advance against purchase of shares.

b) VALUATION:

Long Term Investments are valued at cost. No provision is made for drop in the value of investments unless such reduction in value is permanent in nature.

f) Fixed Assets and Depreciation

Fixed Assets are stated at their historical cost less depreciation. Depreciation is provided on original cost of Fixed Assets on the straight Line method at the rates prescribed in Schedule II to the Companies Act, 2013.

g) Inventories

Inventories are valued as follows:

Raw Materials, Stores and Spares and : Valued at cost or net realisable

Packing Materials : value whichever is lower.

Finished Goods and other Products : Valued at net realisable value or cost whichever is lower

Provision is made for obsolete, slow moving and defective stocks, wherever necessary.

However, the Company did not have any stocks of finished goods, raw materials, stores and spares and packing materials as at 31st March, 2015.

h) Cash and Cash Equivalents (for purposes of cash flow statement)

Cash comprises cash on hand and demand deposits with Bank. Cash equivalents are short term balances (with an original maturity of 3 months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

i) Cash Flow Statement

Cash flows are reported using indirect method whereby profit/loss before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

j) Revenue Recognition:

Revenue in respect of sale of products is recognized at the point of despatch to the customers. In respect of other income, including income from commodity transactions, interest income

and brokerage and commission, the same is accounted for on an accrual basis using the time proportion method All expenses are accounted for on an accrual basis, except statutory payments which are accounted for as and when paid

k) Income Taxes:

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

l) Deferred Tax

Deferred tax is recognized on timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and tax laws enacted or subsequently enacted as on the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences as well as for unabsorbed carry forward losses and depreciation, if any, only if there is virtual certainty that there will be sufficient future taxable income available to realize the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets would be reviewed at each Balance Sheet date for their realisability.

m) Retirement Benefit:

Currently, there is no employee in the company, who has been working since the last 5 years in continuous service. Hence, no provision is required for gratuity.

n) 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 outflow of resources. Contingent Liabilities are not recognised, but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

o) Earnings per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.


Mar 31, 2014

A) Basis of Accounting.

The Financial Statements of the Company have been prepared under the historical cost convention and in accordance with applicable Accounting Standards except where otherwise stated. The Financial Statements have also been prepared in accordance with relevant presentational requirements of the C ompanies Act. 1956 (which continue to be applicable in respect of Section 133 of the Companies Act 2013 in terms of General Circular 15/2013 dated I3n September. 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Aet/2013 Act. Mercantile svstem of accounting is uenerallv followed except for income

on account of insurance and other such claims receivable which are accounted for only on receipt basis on account of uncertainties Accounting policies not specifically referred to herein below are consistent and in consonance with generally accepted accounting principles prevalent in India and comply with the accounting standards notified by the Central Government under the Companies (Accounting Standards) Rules 2006

The accounts for the relevant year have been prepared on a going concern basis though the operations have been suspended and almost all the fixed assets of the Company have been disposed of. The promoters of the C ompany have brought in fresh equity capital in an earlier year and the C ompany has initiated steps tor obtaining relevant permissions from the concerned statutory bodies tor embarking on new projects.

b) Use of Estimates

Ihe preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosures relating to continuent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates.

c) Operating Cycle

Based on the nature of business the time between the acquisition of assets for the purpose of the business and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

d) Fixed Assets and Depreciation

Fixed Assets are stated at their historical cost less depreciation. Depreciation is provided on original cost of fixed Assets on the straight Line method at the rates prescribed in Schedule XIV to the Companies Act. 1956.

e) Inventories

Inventories are valued as follows:

Raw Materials. Stores and Spares and : Valued at cost or net realisable Packing Materials : value whichever is lower,

finished Goods and other Products : Valued at net realisable value cost whichever is lower

Provision is made for obsolete, slow moving and defective stocks, wherever neeessary.

However, the Company did not have any stocks of finished goods, raw materials, stores and spares and packing materials as at 31st March, 2014.

F) Cash and Cash Equivalents (for purposes of cash flow statement)

Cash comprises cash on hand and demand deposits with Bank. Cash equivalents are short term balances (with an original maturity of 3 months or less from the date of acquisition), high liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

g) Cash Flow Statement

Cash flows are reported using indirect method whereby profit/loss before extraordinary items and tax is adjusted lor the elfeets of transactions of non cash nature and anv deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the ( ompany are segregated based on the available information.

h) Revenue Recognition:

Revenue in respect of sale of products is recognized at the point of despatch to the customers. In respect of other income, including income from commodity transactions and brokerage and commission, the same is accounted for on an accrual basis using the time proportion method.

i) Income-tax:

Deferred Income tax is not being accounted for on account of the sickness of the company and heavy unabsorbed depreciation as well as brought forward losses under Income fax Act. Also, reasonable certainty of future adjustment of such losses does not appear to exist presently.

j) Retirement Benefit:

Currently, there is no employee in the company, who has been working since the last 5 years in continuous service. Hence, no provision is required for gratuity.

k) 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 outflow of resources. Contingent Liabilities are not recognised, but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

l) Earnings per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the w eighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

The Company had made a preferential allotment of shares aggregating Rs 4,00,00,000/- in the financial year 2010-11 Tor their proposed venture into the hospitality business Pending receipt of certain approvals and completion of certain formalities, an aggregate amount of Rs 3,89,00.000/- of the proceeds of the said issue have been advanced against purchase of properties which would be utilized by the Company for its proposed venture in the hospitality business

Disclosure of Rights

I The Company has issued only one class of equity shares having a par value of Rs 10/- Each holder of equity shares is I entitled to one vote per share Dividends declared in Indian Rupees, and when proposed by the Board of Directors is I subject to the approval of the shareholders at the Annual General Meeting except in the case of interim dividend if any In I the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the I Company The distribution will be in proportion to the number of equity shares held by the share holders


Mar 31, 2010

A) Basis of Accounting.

The Accounts of the Company are prepared under the historical cost of convention and in accordance with applicable accounting standards except where otherwise stated. Mercantile system of accounting is followed except for income on account of insurance and other claims receivable and also expenditure which are accounted for on receipt / payment basis on account of uncertainties.

Accounting policies not specifically referred to here in below are consistent and in consonance with generally accepted accounting principles prevalent in India.

b) Fixed Assets and Depreciation

Fixed Assets are stated at historical cost less depreciation. Depreciation is provided on Fixed Assets on the straight Line method at the rates prescribed in Schedule XTV of the Companies Act, 1956.

c) Inventories

Inventories are regularly valued on the following basis: Raw Materials, Stores and Spares and : Valued at cost or Net realisable

Packing Material : Value whichever is lower.

Finished Goods and other Products : Valued at Net realisable value or cost whichever is lower.

However, the year end inventory of raw material and finished goods is nil.

d) Revenue Recognition:

Revenue in respect of sale of products is recognized at the point of despatch to the customers.

a) Income-tax:

Deferred Income tax is not being accounted for on account of the sickness of the company and heavy unabsorbed depreciation and brought forward losses under Income Tax Act.

b) Retirement Benefit:

There is no employee in the company, who is working since past 5 years in continuous service. Hence, no provision is required for gratuity.

c) Treatment of Contingent Liabilities:

Liabilities, which may or may not arise and not crystalised as at the, end of accounting period have been shown, as contingent liabilities.


Mar 31, 2009

A) Basis of Accounting.

The Accounts of the Company are prepared under the historical cost of convention and in accordance with applicable accounting standards except where otherwise stated. Mercantile system of accounting is followed except for income on account of insurance and other claims receivable and also expenditure which are accounted for on receipt / payment basis on account of uncertainties. Accounting policies not specifically referred to here in below are consistent and in consonance with generally accepted accounting principles prevalent in India.

b) Fixed Assets and Depreciation

Fixed Assets are stated at historical cost less depreciation. Depreciation is provided on Fixed Assets on the straight Line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

c) Inventories

Inventories are valued as Follows:

Raw Materials, Stores and Spares and : Valued at cost or Net realisable

Packing Material : Value whichever is lower.

Finished Goods and other Products : Valued at Net realisable value or cost whichever is lower

d) Revenue Recognition:

Revenue in respect of sale of products is recognized at the point of despatch to the customers. -

e) Income-tax:

Deferred Income tax is not being accounted for on account of the sickness of the company and heavy unabsorbed depreciation and brought forward losses under Income Tax Act.

i) Retirement Benefit:

There is no employee in the company, who is working since past 5 years in continuous service. Hence, no provision is required for gratuity.

g) Treatment of Contingent Liabilities:

Liabilities, which may or may not arise and not crystalised as at the end of the accounting period have been shown, as contingent liabilities.



 
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