Mar 31, 2014
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the Company.
The accounting policies have been consistently applied by the Company and are in consistent with those used in previous year.
b) Use of Estimates:
The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual result could differ from these estimates.
c) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Considering the matching concept, the Company recognizes its revenue from Resorts service business on receipt basis.
1.2 Disclosure of Accounting Policies
The Accounting Principles and Policies are recognized as appropriate for measurement and reporting of the financial performance and the financial position on mercantile system and recognize items of income and expenditure on accrual basis. The statement on Significant Accounting Policies excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during the year.
1.3 Valuation of Inventories
a. The inventories of stores and consumables at resorts have been valued at Cost or Market value whichever is lower.
b. (i) Land inventory including plots have been valued at lower of cost or net realizable value. Land which is under development in near future is classified as current asset. Land which is held for undetermined use or for future development is classified as fixed assets.
(ii) Work in progress (fencing) is valued at cost or net realizable value. Cost includes direct material, labour and direct expenses.
Net realizable value is the estimated selling price in ordinary course of business, less estimated cost of completion and estimated costs necessary to make sale.
1.4 Cash Flow Statement
Cash flow statement, as per AS - 3 is annexed with financial statements.
1.5 Contingencies and Events occurring after Balance Sheet date.
Material Events occurring after Balance Sheet date are taken into cognizance. There have been no material changes or events since the date of Balance Sheet affecting financial statements as on the Balance Sheet date. Further, the dates of Balance Sheet, no events or circumstances have occurred, though properly excluded from the accounts, are of such importance that they should be disclosed through any medium.
1.6 Net Profit and Loss for the period, extra ordinary items and change in accounting policy.
Net Profit for the period
All items of income and expense in the period are included for determination of net profit of the year unless specifically mentioned elsewhere in the financial statements or required by an Accounting Standard. Prior period items, extra ordinary items and changes in accounting policy are disclosed only if those have material impact on the affairs of the Company.
Prior Period items: All material items of Income/Expenditure pertaining to prior period and expenses to subsequent period are accounted separately.
Extra ordinary items: NIL
Exceptional Items: Exceptional items are those items which occur due to error or omission relating to earlier years and of material in nature.
The company has consistently followed accounting polices and there are no material changes in accounting policy of the Company from that followed in previous year.
1.7 Depreciation Accounting
a) The Gross Block of fixed assets is stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.
b) Depreciation on fixed assets is provided on ''Straight Line Basis'' at the rate prescribed in Schedule XIV to the Companies Act, 1956. On additions of assets, the depreciation is charged at full rate on additions made before 30 September 2013. The addition made afterwards is charged at half rate.
c) Assets individually costing less than or equal to Rs. 5000/- are fully depreciated in the year of purchase.
1.8 Revenue recognition
(i) Revenue from Resort operations (Gross) is recognized upon rendering of the services and adjustments on account of cancellation/ returns.
(ii) Recognition of revenue from sale of land
Revenue from sale of developed plot-land and other rights is recognized upon transfer of all significant risk and rewards of ownership of such real estate/ property, as per the terms of the contracts/agreements entered into with buyers, which generally coincides with framing of the sale contracts/ agreements.
(iii) Dividend income
Revenue is recognized when the shareholders'' or unit holders'' right to receive payment is established by the balance sheet date.
(iv) Interest income
Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.
1.9 Accounting of Fixed Assets Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost bringing the asset to its working condition for its intended use. Any trade discounts or rebates are deducted in arriving at the purchase price.
Borrowing cost directly attributable to acquisition of fixed assets which takes substantial period of time to get ready for its intended use, are also included to the extent they relate to the period till such assets are ready to be put to use.
Gain or loss arising from derecognition of fixed asset are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the asset is derecognized.
1.10 Accounting for Investments:-
Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage fees and duties.
Current investments are carried lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.
On disposal of investments, the difference between its carrying amount and net disposal proceeds is charged or credited to statement of profit and loss.
1.11 Accounting for retirement benefits
(i) Retirements benefits, in the form of provident fund are defined contributions, are charged to the statement of profit and loss of the year when the contributions to provident fund are due. There are no other obligations other than the contribution payable to the government administered provident fund.
(ii) In respect of Gratuity, the Company is providing on cash basis, as and when they fall due and paid, is charged to statement of profit and loss of the year.
(ii-a) Further as per approved actuary report, the actuarial valuation of the Gratuity payable as on 31.03.2014 is Rs.601910/- (previous year Rs. 1388309/-).
As per the policy of the Company, the Company has not made the provision for the Gratuity payable in statement of profit and loss of the year.
(iii) In respect of leave encashment, the Company is providing on cash basis, as and when they fall due and paid, is charged to statement of profit and loss of the year.
As per the policy of the Company, the Company has not made the provision for the leave encashment payable in statement of profit and loss of the year.
1.12 Borrowing cost
Borrowing cost directly attributable to acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. All other borrowing cost not eligible for inventorisation / capitalisation are charged to statement of profit and loss.
All leases are classified into operating and finance lease at the inception of the lease. Leases that transfer substantially all risks and rewards from lessor to lessees are classified as finance lease and others being classified as operating lease.
There are no finance lease transactions entered into by the Company.
Rent Income and Rent Expense represent operating leases which are recognized as an expense.
1.14 Consolidated Financial Statements
Company is having a fully owned subsidiary namely "STERLING RESORTS PRIVATE LIMITED" Consolidated Balance Sheet has been prepared accordingly.
1.15 Accounting for Taxes on Income
Tax expenses comprise of current and deferred tax.
Current Tax is measured at the amount expected to be paid to/recovered from the revenue authorities, using the applicable tax rates and tax laws.
The tax effect of the timing differences that result between taxable income and accounting income capable of reversal stat in one or more subsequent periods are recorded as a deferred tax asset or a deferred tax liability.
They are measured using the substantively enacted tax rates and tax laws as on the balance sheet date. Deferred tax assets are recognized only when there is a reasonable certainty that sufficient future taxable income will be available against which they will be realized. Where there is a carry forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence of availability of taxable income against which such deferred tax assets can be realized in future.
1.16 Impairment of Assets
The carrying value of fixed assets is evaluated whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. As per the information and explanations given, that the company has not recognised impairment loss or identified during the reporting period.
1.17 Provisions,Contingent Liabilities and Contingent Asset Provisions
A provision is recognised when the company has a present obligation as a result of past event; 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. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an out flow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably.
The Company does not recognise contingent liability but disclose its existence in the financial statements * Disclosure required under the Companies Act, 1956
1. Figures of previous year have been regrouped / rearranged wherever necessary.
2. Directors'' Remuneration
Particulars This Year (Rs.) Last Year (Rs.)
Remuneration 1245342 2686500
Contribution to Superannuation Fund Nil Nil
Total 1245342 2686500
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-
a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the company.
b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Considering the matching concept, the company recognizes its revenue from information service business on receipt basis.
- AS -1 - Disclosure of Accounting Policies
The Accounting Principles and policies recognized as appropriate for measurement and reporting of the financial performance and the financial position on mercantile system and recognize items of income and expenditure on accrual basis. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.
- AS - 3 - Cash Flow Statement
Cash flow statement, as per AS - 3 is annexed with financial statements.