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Accounting Policies of Suvidha Infraestate Corporation Ltd. Company

Mar 31, 2014

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

1.5 INVENTORIES

(a) In case of Inventory of raw materials, the raw materials received on the site are treated as consumed in the books of the company.

(b) Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENT OF FIXED ASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

There are employees in the company and the following Accounting Policies are followed by the company.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The Company shall charge its contribution to provident fund to Profit & Loss Account of the year.

1.10 SALES

The company is recognizing the sales revenue based on guidance note on recognition of revenue by Real Estate Developers issued by ICAI and is based on percentage completion method.


Mar 31, 2013

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 on the straight line method in respect of all assets.

1.5 INVENTORIES

(a) In case of Inventory of raw materials, the raw materials received on the site are treated as consumed in the books of the company.

(b) Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME: Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX: Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENT OF FIXED ASSETS:- Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:- There are employees in the company and the following Accounting Policies are followed by the company.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The Company shall charge its contribution to provident fund to Profit & Loss Account of the year.

1.10 SALES

The company is recognizing the sales revenue based on guidance note on recognition of revenue by Real Estate Developers issued by ICAI and is based on percentage completion method.


Mar 31, 2012

1.1 The Company is a sick industrial undertaking u/s 3 (1) (o) of the Sick Industrial Company (Special Provision) Act, 1985. No manufacturing activities are carried on by the company. However, books of accounts are maintained on a going concern basis.

1.2 The Company adopts the accrual concept in the preparation of the accounts.

1.3 RECOGNITION OF INCOME & EXPENDITURE

All Income & Expenditure are accounted for on accrual basis.

1.4 FIXED ASSETS & DEPRECIATION:

A. Fixed assets are stated at cost of acquisition or construction less depreciation. Cost comprises the purchase price and other attributable costs including financing costs relating to borrowed funds attributable to construction or acquisition of fixed assets up to the date the assets is ready for use and adjustments consequent to subsequent variations in rates of exchange.

B. Depreciation is provided at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 onthestraightlinemethodinrespectofallassets.

1.5 INVENTORIES

Raw Material is valued at cost.

Closing Stock of WIP has been valued at cost.

1.6 TAXES ON INCOME:

Provision for Current Tax is computed as per Total Income Returnable under the Income Tax Act, 1961 taking into account available deductions and exemptions.

1.7 DEFERRED TAX:

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 IMPAIRMENTOFFIXEDASSETS:-

Consideration is given at each Balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 RETIREMENT & OTHER EMPLOYEE BENEFITS:-

There are no employees in the company and the following Accounting Policies shall be followed by the company as and when it has employed any persons.

A. When the company will exceed 10 employees, Gratuity shall be charged to revenue upon the estimates made by the company.

B. Leave encashment is not charged to revenue as the same is not allowed by the company. The unutilised leaves of the employees are allowed to be carried forward to the next year without any lapse. The employees are encouraged to fully utilise their leaves before they retire. At the time of retirement of any employee if there is any balance of unutilised leaves, then the said balance lapses. Hence, the company does not make any provision for leave encashment.

C. When the company will exceed 10 employees, The company shall charge it's contribution to provident fund to Profit & Loss Account of the year.

 
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