Accounting Policies of EPSOM Properties Ltd. Company

Mar 31, 2019

(a) Basis of Preparation of financial statements

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its Financial Statements as per the Indian Accounting Standards(''Ind AS'') prescribed under section 133 of Companies Act,2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules,2015 as amended by the Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1st April,2017.Accordingly, the Company has prepared these Financial Statements which comprise the Balance Sheet as at 31st March, 2019, the Statement of Profit and Loss, the Statement of Cash Flows and the Statement of Changes in Equity for the year ended 31st March, 2019, and a summary of the significant accounting policies and other explanatory information (together hereinafter referred to as “Financial Statements”. The figures for the previous year ended 31st March, 2018 and opening balance sheet as on 1 st April 2017 have also been reinstated by the management as per the requirements of Ind AS.

(b) The company is not carrying on any commercial operations for the past ten years and incurred loss continuously and more than 99% of the share capital is eroded and the financial statements continue to be are prepared on a going concern basis on the assumption that the company will ccommence its operations in near future. The appropriateness of assumption of going concern is dependent upon the company''s ability to generate enough cash flow in future to meet its obligations.

(c) Use of estimates

The preparation of financial statements requires that the management to make estimates and assumptions that affect the reported amounts of assets and liabilities ,disclosure of contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

(d) Current/Non Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions :-

i) it is expected to be realized or settled or is intended for sale or consumption in the Company''s normal operating cycle;

ii) it is expected to be realized or settled within twelve months from the reporting date

iii) In the case of an asset,

it is primarily held for the purpose of being trades; or

it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liabilitty for at least twelve months after the reporting date.

in the case of liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months from the reporting date.

All other assets are classified as non-current.

For the purposes of current/non-current classification of assets and liabilities, the Company has ascertained its normal operating cycle as twelve months. This is based on nature of service and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

(e) Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.initial recognition.k) Foreign currency transactions and foreign operations

(f) Property, plant and equipment

The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after the property,plant and equipment have been put into operation, such as repairs and maintenance, are charged to Statement of Profit and Loss in the period in which the costs are incurred

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss.

(g) Depreciation / Amortization

Depreciation is recognised so as to write off the cost of the asset less their residual values over the usefulllife using the Schedule II of the Companies Act,2013

(h) Transactions in Foreign Exchange

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

(i) Taxation

i) Income tax comprises current and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.

a) Current tax : Current tax is the amount of tax payable based on the taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company''s current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period

b) Deferred tax :1) Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (otherthan in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill

(j) Gross Turnover Rs. 0.34 Lakhs (Previous Year Rs. 1.31 lakhs)

(k) Operating lease

The Company''s significant leasing arrangement is in respect of operating lease for office premises. Future Rentals payable over the next 12 months : Rs.1,44,000. The aggregate lease rentals for the year amounting to Rs. 1,44,000/- have been charged to Statement of Profit & Loss.

(l) Provisions

Under Indian GAAP, the Group has accounted for provisions, including long-term provision, at the undiscounted amount. In contrast, Ind AS 37 requires that where the effect of time value of money is material, the amount of provision should be the present value of the expenditures expected to be required to settle the obligation. The discount rate(s) should reflect risks for which future cash flow estimates have been adjusted. Ind AS 37 also provides that where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as borrowing cost.

(m) Other comprehensive income

Under Indian GAAP, the Group has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss according to Ind AS. Furthermore, Ind AS profit or loss is reconciled to total comprehensive income as per Ind AS.

(n) Statement of cash flows

The transition from Indian GAAP to Ind AS has not had amaterial impact on the statement of cashflows.

(o) Earning Per Share

(p) Auditors Remuneration

(q) Employee Benefits

There are no permanent employees eligible for reitrement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

(r) Investments

Since the investment in the equity shares of quoted investments are infrequently traded, the shares are valued at Re. 1/- per share.

(s) Current Assets and Loans and Advances

In the opinion of the Management, Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

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Mar 31, 2015

(a) Basis of accounting

The Financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting in accordance with the generally accepted in India ("Indian GAAP) and comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 20Q6 which continue to apply under Section 133 of the Companies Act, 2013 ("the Act) read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of the Companies Act, 1956 to the extent applicable.

(b) Use of estimates

The preparation of financial statements in conformity with the Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and reported amounts of income and expenses during the period.

(c) Current/Non Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:-

i) it is expected to be realized or settled or is intended for sale or consumption in the Company's normal operating cycle;

ii) it is expected to be realized or settled within twelve months from the reporting date

iii) In the case of an asset,

it is primarily held for the purpose of being-trades; or

It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

in the case of liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months from the reporting date.

All other assets are classified as non-current.

For the purposes of current/non-current classification of assets and liabilities, the Company has ascertained Its normal operating cycle as twelve months. This is based on nature of service and the time between the acquisition of assets or inventories for processing and their realization in cash and cash equivalents.

(d) Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

Interest income is recognized on the time proportion basis.

(e) Tangible Fixed Assets

Tangible fixed assets are carried at the cost of acquisiton less accumulated depreciation and impairment.

Tangible fixed assets held for disposal are stated at the lower of their net book value and net realizable value. Any expected loss is recognized immediately in the Statement of Pofit and Loss.

(f) Depreciation and Amortization

Depreciation on tangible fixed assets is provided using the written down value method and is charged to tire Statement of Profit and Loss as per the requirement of Schedule II of the Companies Act, 2013.

(g) Transactions In Foreign Exchange

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

(h) Provision for taxation

a. Provision for current tax is made considering various allowances and benefits available to the Company under the Income Tax Act, 1961.

b. Deferred tax assets are recognized only to the extent there is reasonable certainly that the in future; however, wherethere is unabsorbed depreciation or carry forward loss under taxation laws, deferred' tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realization.

(i) Gross Turnover 5.81 Lakhs (Previous Year Rs. 7.88 lakhs)

(J) Transactions with related parties,

Key managerial personnel

Dr CSivakumar Reddy Managing Director

Mr TS Raju Director

Mr K V Narasimhan Company Secretary & CFO.

ii) Promoters and their relatives having control

Director Designation

Dr Mohan Swami Non Executive Chairman

(k) Operating lease

The Company's significant leasing-arrangement is in respeet of operating lease for office premises. Future Rentals payable overt the next 12 months : Rs.1,20;000. The aggregate lease for the year amounting to. 1,10,000/-have been charged to Statement of Profit/Loss.

(n) Segment Reporting

The Company's business activity falls within a single primary busines segment viz. Real Estate, Construction and Leasehold and Freehold rights oh properties. The business has been consituted as a single business segment in the context of Accounting Standard 17-Segment Reporting as specified in the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, no segmental information is disclosed.

(o) Employee Benefits

There are no permanent employees eligible for retirement benefits and hence no provision hass been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

(p) Investments

Since the investment in the equity shares of quoted investments are infrequently traded, the shares are valued at Re. 1/-per share.

(q) Current Assets and Loans and Advances

In the opinion of the Management, Current Assets, Loans & Advances hare a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

(r) There are no dues to Micro, Small and medium Enterprises which are required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006.

(s) Earnings in Foreign Exchange Nil. (P.Y NIL) (NIL)

(t) Expenditure in Foreign Currency Nil (P.Y. NIL )

(u) Previous year's, figures have been regrouped wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2014

(a) BASIS OF ACCOUNTING

The Financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) and presented under the historical cost convention on accural basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 (as amended) and with the relevant provisions of the Companies Act, 1956 and relevant enacted provisions of the Companies Act, 2013 to the extent applicable.

(b) REVENE RECOGNITION

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

(c ) TANGIBLE FIXED ASSETS

Tangible fixed assets are carried at the cost of acquisiton less accumulated deprecition and impairment.

(d) FOREIGN CURRENCY TRANSACTIONS

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

(e) TAXES ON INCOME

a. Provision for current tax is made considering various allowances and benefits available to the Company under the Income Tax Act, 1961.

b. In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Taxes resulting from time differences between book value and tax profits are accounted for at the current rate of tax to the extent the timing differences are expected to be crystallized. Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in the future.

(f) GROSS TURNOVER 7.88 Lakhs (Previous Year Rs. 10.40 lakhs)

(g) TRANSACTIONS WITH RELATED PARTIES I. KEY MANAGEMENT PERSONNEL

Dr C Sivakumar Reddy Managing Director

II. PROMOTERS AND THEIR RELATIVES HAVING CONTROL

Director Designation

Dr Mohan Swami Non Executive Chairman

(h) OPERATING LEASE

The Company''s significant leasing arrangement is in respect of operating lease for office premises. Future Rentals payable over the next 12 months : Rs.l,20,000

The aggregate lease rentals for the year amounting to Rs. 1,30,000/- have been charged to the Profit & Loss Account.

(i) EARNINGS PER SHARE

Particulars 2013-2014 2012-2013

a) Basic and diluted earning (0.31) (0.08) per share (face value Rs. 10/-per share

b) Loss as per Statement of (2,283,252.83) (568,653.38) Profit and Loss

c) Weighted average number 7,452,800 7,452,800 of equity shares outstanding

(j) DEFERRED TAX

The Company following conservatismdoes not intend to create deferred tax assets for the year under review due to reasonable uncertainty as to the utilization of such deferred tax assets in the foreseeable future.

(k) AUDITORS REMUNERATION

Nature of 2013-2014 2012-2013 Transaction

Statutory Audit 56,180.00 56,180.00

Company Law matters 5,618.00 5,618.00

Total 61,798.00 61,798.00

(i) SEGMENT REPORTING

The Company''s business activity falls within a single primary busines segmentviz. Real Estate, Construction and Leasehold and Freehold rights on properties, The business has been consituted as a single business segment in the context of Accounting Standard 17 - Segment Reporting as specified in the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, no segmental information is disclosed.

(m) EMPLOYEE BENEFITS

There are no permanent employees eligible for reitrement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

(n) INVESTMENTS

Since the investment in the equity shares of quoted investments are infrequently the shares are valued at Re. 1/- per share.

(O) CURRENT ASSETS AND LOANS ND ADVANCES

In the opinion of the Management, Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

(P) There are no dues to MSMEs which are required to be disclosed as per Schedule VI of the Companies Act, 1956.

(q) Earnings in Foreign Exchange NIL (P.Y NIL)

(r) Expenditure in Foreign Currency NIL (P.Y. NIL)

(s) Previous year''s figures have been regrouped wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2013

A. Basis of Accounting:

The Financial statements are prepared under the historical cost convention in accordance with applicable mandatory accounting standards and relevant provisions of the Companies Act, 1956.

B. Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

C. Fixed Assets

Fixed Assets are stated at cost (historical cost) less accumulated depreciation.

0. Foreign Currency Transactions

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

E. Taxes on Income

a. Provision for current tax is made considering various allowances and benefits available to the Company under the Income Tax Act, 1961.

b. In terms of Accounting Standard - AS 22 relating to "Accounting for taxes on Income" issued by the ICAF, the Company has. not accounted the deferred tax asset in the books of accounts as the Company is incurring loss for the past ten years and due to uncertainty about sufficient future taxable - income against which these deferred tax assets can be realised. Hence, the same has not been , recognized.

H. Operating Lease

The Company''s significant leasing arrangement is in respect of operating lease for office premises. Future Rentals payable over the next 12 months : Rs. 120,000

The aggregate lease rentals for the year amounting to Rs. 95,000/- have been charged to the Profit & Loss Account.

J. Deferred Tax

The Company following conservatism does not intent to create deferred tax assets for the year under review due to reasonable uncertainty as to the utilization of such deferred tax assets in the foreseeable future.

L. Segment Reporting ''

As the Company''s business activity falls within a single primary business segment viz. Real Estate, Construction and Leasehold and Freehold rights on properties, the disclosure requirements of AS-17 issued by ICAI are not applicable.

M. There are no permanent employees eligible for retirement benefits and hence no provision has been made in the accounts for Gratuity, Leave encashment and other retirement benefits.

N. Since the investment in the equity shares of quoted investments are infrequently traded the shares are valued at Re. 1/- per share.

0. In the opinion of the Management, Current Assets, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

P. There are no dues to MSMEs which are required to be disclosed as per Schedule VI of the Companies Act, 1956.

Q. Earnings in Foreign Exchange NIL (P.Y NIL)

R. Expenditure in Foreign Currency NIL (P.Y. NIL)

S. Previous year''s figures have been regrouped wherever necessary so as to make them comparable with those of the current year.

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Mar 31, 2012

A. Basis of Accounting :

The Financial statements are prepared under the historical cost convention in accordance with applicable mandatory accounting standards and relevant provisions of the Companies Act, 1956.

B. Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

C. Fixed Assets

Fixed Assets are stated at cost (historical cost) less accumulated depreciation.

D. Foreign Currency Transaction.

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign : currency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

E. Taxes on Income

a. Provision for current tax is made considering various allowances and benefits available to the Company under the Income Tax Act, 1961.

b. In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Taxes resulting from time differences between book value and tax profits are ac90unted for at the current rate of tax to the extent the timing differences are expected to be crystallized. Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in the future.

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Mar 31, 2011

1 Basis of Accounting :

The Financial statements are prepared under the historical cost convention in accordance with applicable mandatory accounting standards and relevant provisions of the Companies Act, 1956.

2 Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

3 Fixed Assets

Fixed Assets are stated at cost (historical cost) less accumulated depreciation.

4 Foreign Currency Transactions

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign curency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

5 Taxes on Income

a. Provision for current tax is made considering various allowances and benefits available to the Company under the Income Tax Act, 1961.

b. In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Taxes resulting from time differences between book value and tax profits are accounted for at the current rate of tax to the extent the timing differences are expected to be crystallized. Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in the future.

NOTES ON ACCOUNTS

1. Gross Turnover NIL (Previous Year Rs. 14.78 lakhs)

2. Transactions with Related Parties Key Management Personnel

Dr C Sivakumar Reddy Managing Director

Dr Mohan Swami Director

Mrs Gomathi A Vaidyanathan Director

Mr K Bhakthavatsala Reddy Director

Mr T S Raju Director

Mr K V Narasimhan Company Secretary

3. Operating Lease

The Companys significant leasing arrangement is in respect of operating lease for office premises. Future Rentals payable over the next 12 months : Rs.60,000 The aggregate lease rentals for the year amounting to Rs. 60,000/- have been charged to the Profit & Loss Account.

5. Deferred Tax

The Company following conservatism does not intend to create deferred tax assets for the year under review due to reasonable uncertainty as to the utilization of such deferred tax assets in the foreseeable future.

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Mar 31, 2010

1 Basis of Accounting:

The Financial statements are prepared under the historical cost convention in accordance with applicable mandatory accounting standards and relevant provisions of the Companies Act, 1956.

2 Revenue Recognition

Revenue is recognised excepting for significant uncertainty as to its determination or realisation.

3 Fixed Assets

Fixed Assets are stated at cost (historical cost) less accumulated depreciation.

4 Foreign Currency Transactions

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign curency are translated at the rates of exchange at the Balance Sheet date and resultant gain/loss is recognised in the Profit & Loss Account.

5 Taxes on Income

a. Provision for current tax is made considering various allowances and benefits available to the Company under the Income Tax Act, 1961.

b. In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, Deferred Taxes resulting from time differences between book value and tax profits are accounted for at the current rate of tax to the extent the timing differences are expected to be crystallized. Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in the future.