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.
2
Prior Period items: All material items of Income/Expenditure pertaining
to prior period and expenses to subsequent period are accounted
separately.
3
Extra ordinary items: NIL
4
Exceptional Items: Exceptional items are those items which occur due to
error or omission relating to earlier years and of material in nature.
5
Accounting Policies
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.
1.13 Leases
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.
Contingent liability
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, 2011
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 bas
2 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.
3 Valuation of Inventories
The inventories of stores at resort have been valued Cost or Market
value whichever is lower. The inventory of land has been valued at
Cost or Market value whichever is lower.
4 Cash Flow Statement
Cash flow statement, as per AS 3 is annexed with financial statements.
- AS 4 Contingencies and Events occurring after Balance sheet date.
- AS 5 Net Profit and Loss for the period, extra ordinary items and
change in accounting policy.
- AS 6 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 2010. The addition made afterwards
is charged at half rate.
- AS 10 Accounting of Fixed Assets Fixed Assts reflected in the
financial statements are stated at their cost of acquisition including
taxes, duties (Net of Refunds) and other identifiable direct charges
incurred up to date the asset is put to use less accumulated
depreciation where charged.
- AS 13 Accounting for Investments:- The investments of the company are
classified in to investments held for maturity and investment held
other than for maturity. The company values its investments held for
maturity at cost price ignoring any changes in the market price of the
same. However, if change in value is on permanent basis, the same is
recognized as profit or loss in profit and loss account. While
investment held for other than maturity is valued at Market price by
recognizing the same in profit and loss account.
- AS 15 Accounting for retirement benefits Contribution made to
defined contribution retirement benefit plans viz Provident fund,
Gratuity fund, which are recognized as expenses as they fall due and
paid. All the above expenditures are debited to profit and loss
account. However, the company has not made any provision of leave
encashment during year.
- AS Ã 17 Ã Segment Reporting The Company operates two segments viz (1)
Real Estate Business and (2) Resort Business division on the basis of
business segment. The company has preferred to give segment reporting
based on the basis of classifications of its business.
(B) Segment accounting policies:
In addition to the significant accounting policies applicable to the
business segment as set out in notes to the accounts, the accounting
Policies in relation to segment accounting are as under:
(a) Segment assets and liabilities:
Company is having two segments of business and Assets and Liabilities
could not be bifurcated segment wise.
(b) Segment revenue and expenses
Segment revenue and expenses are taken directly as attributable to the
segment. It does not include interest income on inter- corporate
deposits, Profit on sale of investments, Interest expense, Provision
for Contingencies and income-tax - AS 18 Related Party Disclosure
5. List of Relatives of Key Managerial Personnel and Enterprise over
which Key Management Personnel and their relative excessive significant
influence with whom transaction have taken place during the year
B. Transactions with Related Parties :-
- AS Ã 20 Ã Earning Per Share
Basic Earning per Share are disclosed in the profit and loss account.
There is no Diluted Earnings per Share as there are no dilative
potential equity shares.
AS-21 - Consolidated Financial Statements
Company is having a fully owned subsidiary namely "STERLING RESORTS
PRIVATE LIMITED" Consolidated Balance Sheet has been prepared
accordingly.
AS - 22 - Accounting for Taxes on Income
Provision for current income taxes is made on taxable income at the
rate applicable to the relevant assessment year. There are deferred
tax assets as calculated. However company has not recognized & provided
provisions for the assets in the books of accounts.
- AS 28 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. There is no impairment loss recognized or identified
during the reporting period.
- AS Ã 29Ã Provisions, Contingent Liabilities and Contingent Assets
Contingent liabilities are not provided for but are disclosed after a
careful evaluation of facts and legal aspects of the matter involved.
In general, liabilities and contingencies are provided for it. If, in
the opinion and at the discretion of the management, there are
reasonable prospects of such liabilities crystallizing or future
outcome of such contingencies is likely to be materially detrimental to
business.
Income Tax Liabilities (For the Asst. Year 1995-96) of which appeal by
Income Tax Department is pending before the Income Tax Appellate
Tribunal against the demand reduced by the C.I.T. Company is
contingently liable for the amounting of Rs.92,61,016/-. Company has
not made the provisions for the above nor it has provided demand of
interest U/s. 220 amounting of Rs.3,00,000 paid during the year
accounted with Advance Income Tax. Disclosure required under companies
Act, 1956
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.