Accounting Policies of B&B Realty Ltd. Company

Mar 31, 2015

1. Basis of preparations of financial statement:

The financial statements are prepared in accordance with Indian Generally Accepted Principles ("GAAP") under the historical cost convention on the accounting principles of a going concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI"), the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in accounting policy hitherto in use. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. Any revision to accounting estimates is recognized prospectively

2. Revenue Recognition:

Revenue from property development activity is recognized when all significant risks and rewards of ownership in the land and / or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists. Other income is accounted on accrual basis as and when the right to receive arises.

3. Fixed Assets

All fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. In accordance with AS 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India, where there is an indication of impairment of the company's assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated at the higher of its net selling price and its value in use. An impairment loss is recognized in the Profit & Loss Accounts whenever the carrying amount of such assets exceeds its recoverable amount

4. Depreciation

Depreciation on Fixed Assets is provided at the rates and in the manner prescribed in schedule II to companies Act, 2013.

5. Inventories and Work in Progress :

i) Construction Materials are valued at cost.

ii) Work - in progress and Finished goods are valued at cost consisting of direct materials, direct labour, direct overheads and direct finance charges.

6. Investments:

Current Investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution on their value, other than temporary, is made in the accounts.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transactions. Gain and losses resulting from settlement of such transactions and from the transaction of monetary assets and liabilities denominated in foreign currencies are recognized in Profit and Loss Account.

8. Employee Benefits

I. Provident fund: provident fund is a defined contribution scheme and contributions are charged to the profit and loss Account as incurred.

II. Gratuity: Gratuity is a defined benefit retirement plan and being accounted for on cash basis. III. Liability for leave encashment is accounted for on cash basis.

9. Borrowing Cost

Borrowing costs directly attributable to acquisition and construction of qualifying assets and are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to profit and loss account.

10. Segment Reporting

In view of the management the company has operated in only one segment in Financial year 2013-14 namely Business in Real-estate. Hence there is no requirement of disclosure of segment wise profit as per AS 17 "Segment Reporting".

11. Accounting for Taxes on income

Income tax expenses comprise current tax and deferred tax charges or credit (reflecting the tax effects of timing differences between accounting income and taxable income of the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted of substantively enacted by the balance sheet date. Deferred tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of their respective carrying value at each balance sheet date.

The effect of accounting standard 22, Accounting for Taxes on income has not been accounted in the books of the company for the financial year 2014-15 due to non existence of timing difference.

12. Provisions, Contingent Liabilities And Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

13. Others:

Accounting policies not specifically referred to are consistent with generally accepted accounting principles followed by the company

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Mar 31, 2014

1. Basis of preparations of financial statement:

The financial statements are prepared in accordance with Indian Generally Accepted Principles ("GAAP") under the historical cost convention on the accounting principles of a going concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI"), the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in accounting policy hitherto in use. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. Any revision to accounting estimates is recognized prospectively

2. Revenue Recognition:

Revenue from property development activity is recognized when all significant risks and rewards of ownership in the land and / or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists. Other income is accounted on accrual basis as and when the right to receive arises.

3. Fixed Assets

All fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. In accordance with AS 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India, where there is an indication of impairment of the company''s assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated at the higher of its net selling price and its value in use. An impairment loss is recognized in the Profit & Loss Accounts whenever the carrying amount of such assets exceeds its recoverable amount

4 Depreciation

Depreciation on Fixed Assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV to companies Act, 1956 on pro-rata basis from the date of capitalization/addition. However, no depreciation was provided on fixed assets as the same were not used during the year under review.

5. Inventories and Work in Progress :

i) Construction Materials are valued at Cost.

ii) Work - in progress and finished goods are valued at cost consisting of direct materials, direct labor, direct overheads and direct finance charges.

6. Investments:

Current Investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution on their value, other than temporary, is made in the accounts.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transactions. Gain and losses resulting from settlement of such transactions and from the transaction of monetary assets and liabilities denominated in foreign currencies are recognized in Profit and Loss Account.

8. Employee Benefits

I. Provident fund: provident fund is a defined contribution scheme and contributions are charged to the profit and loss Account as incurred.

II. Gratuity: Gratuity is a defined benefit retirement plan and being accounted for on cash.

III. Liability for leave encashment is accounted for on cash basis.

9. Borrowing Cost

Borrowing costs directly attributable to acquisition and construction of qualifying assets and are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to profit and loss account.

10. Segment Reporting

In view of the management the company has operated in only one segment in Financial year 2013-14 namely Business in Real-estate. Hence there is no requirement of disclosure of segment wise profit as per AS 17 "Segment Reporting".

11. Accounting for Taxes on income

Income tax expenses comprise current tax and deferred tax charges or credit (reflecting the tax effects of timing differences between accounting income and taxable income of the year).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted of substantively enacted by the balance sheet date. Deferred tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of their respective carrying value at each balance sheet date.

The effect of accounting standard 22, Accounting for Taxes on income has not been accounted in the books of the company for the financial year 2013-14 due to non existence of timing difference.

12. Provisions, Contingent Liabilities and Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

13. Others:

Accounting policies not specifically referred to are consistent with generally accepted accounting principles followed by the company

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Mar 31, 2013

1. Basis of preparations of financial statement:

The financial statements are prepared in accordance with Indian Generally Accepted Principles ("GAAP") under the historical cost convention on the accounting principles of a going concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI"), the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in accounting policy hitherto in use. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. Any revision to accounting estimates is recognized prospectively

2. Revenue Recognition:

Revenue from property development activity is recognized when all significant risks and rewards of ownership in the land and / or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists. Other income is accounted on accrual basis as and when the right to receive arises.

3. Fixed Assets

All fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. In accordance with AS 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India, where there is an indication of impairment of the company''s assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated at the higher of its net selling price and its value in use. An impairment loss is recognized in the Profit & Loss Accounts whenever the carrying amount of such assets exceeds its recoverable amount

4. Depreciation

Depreciation on Fixed Assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV to companies Act, 1956 on pro-rata basis from the date of capitalization/ addition. However, no depreciation was provided on fixed assets as the same were not used during the year under review.

5. Inventories and Work in Progress :

i) Construction Materials are valued at cost.

ii) Work - in progress and Finished goods are valued at cost consisting of direct materials, direct labour, direct overheads and direct finance charges.

6. Investments :

Current Investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution on their value, other than temporary, is made in the accounts.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transactions. Gain and losses resulting from settlement of such transactions and from the transaction of monetary assets and liabilities denominated in foreign currencies are recognized in Profit and Loss Account.

8. Employee Benefits

I. Provident fund: provident fund is a defined contribution scheme and contributions are charged to the profit and loss Account as incurred.

II. Gratuity: Gratuity is a defined benefit retirement plan and being accounted for on cash basis.

III. Liability for leave encashment is accounted for on cash basis.

9. Borrowing Cost

Borrowing costs directly attributable to acquisition and construction of qualifying assets and are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to profit and loss account.

10. Segment Reporting

In view of the management the company has operated in only one segment in Financial year 2012-13 namely Business in Real-estate. Hence there is no requirement of disclosure of segment wise profit as per AS 17 "Segment Reporting".

11. Accounting for Taxes on income

Income tax expenses comprise current tax and deferred tax charges or credit (reflecting the tax effects of timing differences between accounting income and taxable income of the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted of substantively enacted by the balance sheet date. Deferred tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of their respective carrying value at each balance sheet date.

The effect of Accounting standard 22, Accounting for Taxes on income has not been accounted in the books of the company for the financial year 2012-13 due to non existence of timing difference.

12. Provisions, Contingent Liabilities And Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

13. Others:

Accounting policies not specifically referred to are consistent with generally accepted accounting principles followed by the company

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Mar 31, 2012

1. Basis of preparations of financial statement:

The financial statements are prepared in accordance with Indian Generally Accepted Principles ("GAAP") under the historical cost convention on the accounting principles of a going concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI"), the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in accounting policy hitherto in use. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. Any revision to accounting estimates is recognized prospectively

2. Revenue Recognition:

Revenue from property development activity is recognized when all significant risks and rewards of ownership in the land and / or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists.

Other income is accounted on accrual basis as and when the right to receive arises.

3. Fixed Assets

All fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any.

In accordance with AS 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India, where there is an indication of impairment of the company's assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated at the higher of its net selling price and its value in use. An impairment loss is recognized in the Profit & Loss Accounts whenever the carrying amount of such assets exceeds its recoverable amount

4. Depreciation

Depreciation on Fixed Assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV to companies Act, 1956 on pro-rata basis from the date of capitalization/addition. However, no depreciation was provided on fixed assets as the same were not used during the year under review.

5. Inventories and Work in Progress :

i) Construction Materials are valued at cost.

ii) Work - in progress and Finished goods are valued at cost consisting of direct materials, direct labour, direct overheads and direct finance charges.

6. Investments :

Current Investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution on their value, other than temporary, is made in the accounts.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transactions. Gain and losses resulting from settlement of such transactions and from the transaction of monetary assets and liabilities denominated in foreign currencies are recognized in Profit and Loss Account.

8. Employee Benefits

I. Provident fund: provident fund is a defined contribution scheme and contributions are charged to the profit and loss Account as incurred.

II. Gratuity: Gratuity is a defined benefit retirement plan and being accounted for on cash basis.

III. Liability for leave encashment is accounted for on cash basis.

9. Borrowing Cost

Borrowing costs directly attributable to acquisition and construction of qualifying assets and are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to profit and loss account.

10. Segment Reporting

In view of the management the company has operated in only one segment in Financial year 2011-12 namely Business in Real-estate. Hence there is no requirement of disclosure of segment wise profit as per AS 17 "Segment Reporting".

11. Accounting for Taxes on income

Income tax expenses comprise current tax and deferred tax charges or credit (reflecting the tax effects of timing differences between accounting income and taxable income of the year).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted of substantively enacted by the balance sheet date. Deferred tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of their respective carrying value at each balance sheet date.

The effect of Accounting standard 22, Accounting for Taxes on income has not been accounted in the books of the company for the financial year 2011-12 due to non existence of timing difference.

12. Provisions, Contingent Liabilities And Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

13. Others :

Accounting policies not specifically referred to are consistent with generally accepted accounting principles followed by the company

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Mar 31, 2011

1. Basis of preparations of financial statement:

The financial statements are prepared in accordance with Indian Generally Accepted Principles ("GAAP") underthe historical cost convention on the accounting principles of a going concern and the Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India ("ICAI"), the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard required a change in accounting policy hitherto in use. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosure of an item or information in the financial statements is made relying on these estimates. Any revision to accounting estimates is recognized prospectively

2. Revenue Recognition:

Revenue from property development activity is recognized when all significant risks and rewards of ownership in the land and / or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists. Other income is accounted on accrual basis as and when the right to receive arises.

3. Fixed Assets

All fixed assets are stated at cost, less accumulated depreciation and impairment loss, if any. In accordance with AS 28 on "Impairment of Assets" issued by The Institute of Chartered Accountants of India, where there is an indication of impairment of the company's assets related to cash generating units, the carrying amount of such assets are reviewed at each balance sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated at the higher of its net selling price and its value in use. An impairment loss is recognized in the Profit & Loss Accounts whenever the carrying amount of such assets exceeds its recoverable amount

4. Depreciation

Depreciation on Fixed Assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV to companies Act, 1956 on pro-rata basis from the date of capitalization/addition. However, no depreciation was provided on fixed assets as the same were not used during the year under review.

5. Inventories and Work in Progress :

i) Construction Materials are valued at cost.

ii) Work - in progress and Finished goods are valued at cost consisting of direct materials, direct labour, direct overheads and direct finance charges.

6. Investments :

Current Investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution on their value, other than temporary, is made in the accounts.

7. Foreign Currency Transactions

Transactions in foreign currency are recorded at the rate of exchange in force at the date of transactions. Gain and loses resulting from settlement of such transactions and from the transaction of monetary assets and liabilities denominated in foreign currencies are recognized in Profit and Loss Account.

8. Employee Benefits

I. Provident fund: provident fund is a defined contribution scheme and contributions are charged to the profit and loss Account as incurred.

II. Gratuity: Gratuity is a defined benefit retirement plan and being accounted for on cash basis.

III. Liability for leave encashment is accounted for on cash basis.

9. Borrowing Cost

Borrowing costs directly attributable to acquisition and construction of qualifying assets and are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to profit and loss account.

10. Segment Reporting

In view of the management the company has operated in only one segment in Financial year 2010-11 namely Business in Real Estate . Hence there is no requirement of disclosure of segment wise profit as per AS 17 "Segment Reporting".

11. Accounting for Taxes on income

Income tax expenses comprise current tax and deferred tax charges or credit (reflecting the tax effects of timing differences between accounting income and taxable income of the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted of substantively enacted by the balance sheet date. Deferred tax on assets are recognized and carried forward only if there is a virtual/reasonable certainty of realization of such assets in near future and are reviewed for their appropriateness of their respective carrying value at each balance sheet date.

The effect of Accounting standard 22, Accounting for Taxes on income has not been accounted in the books of the company for the financial year 2010-11 due to non existence of timing difference.

12. Provisions, Contingent Liabilities And Contingent Assets

A provision is made based on a reliable estimate when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation. Contingent liabilities are disclosed in the notes to accounts and are determined based on the management perception that these liabilities are not likely to materialize. Contingent assets are not recognized or disclosed in the financial statements.

13. Others:

Accounting policies not specifically referred to are consistent with generally accepted accounting principles followed by the company

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Mar 31, 2010

1. Basis of preparations of financial statement:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historic cost convention on the accruals basis. GAAP comprises mandatory accounting standards issued by the Institute of Chartered Accountants of India (ICAI), and the provision of the Companies Act, 1956.

2. Use of Estimates :

The preparation of the financial statements in conformity with the generally accepted accounting principles requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent liabilities as on the date of the financial statements, and the reported amounts of revenue and expenses during the reported year. Although these estimates are based upon managements knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognized in the current and future periods.

3. Revenue Recognition:

Revenue from property development activity is recognized when all significant risks and rewards of ownership in the land and / or building are transferred to the customer and a reasonable expectation of collection of the sale consideration from the customer exists.

Other income is accounted on accrual basis as and when the right to receive arises.

4. Fixed assets are stated at the original cost of acquisition including taxes, duties, freight and other incidental expenses related to acquisition and installation of the concerned assets.

5. Depreciation on Fixed Assets is provided on straight-line method at the rates and in the manner prescribed in schedule XIV to companies Act, 1956 on pro-rata basis from the date of capitalization/addition.

6. Inventories and Work in Progress :

i) Construction Materials are valued at cost.

ii) Work - in progress and Finished goods are valued at cost consisting of direct materials, direct labour, direct overheads and direct finance charges.

7. Investments:

Current Investments are stated at lower of cost or market value. Long term investments are stated at cost and provision for diminution on their value, other than temporary, is made in the accounts.

8. Others:

Accounting policies not specifically referred to are consistent with generally accepted accounting principles followed by the company