Accounting Policies of Funworld & Tourism Development Ltd. Company

Mar 31, 2014

1.1 Use of Estimates:

The preparation of financial statement requires to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the end of the reporting period. The assumption based on which such estimate made are not certain and due to that the ultimate result may require adjustment in carrying amount of assets and liabilities in future periods.

1.2 REVENUE RECOGNITION

Revenue is primarily derived from amusement park income and is recorded when it is earned.

Profit on sale of investments is recorded on transfer of title from the Company and is determined as the difference between the sale and carrying value of the investment. Interest is recognized using the time- proportion method, based on rates implicit in the transaction. Dividend is recognized when the company''s right to receive dividend is established.

1.3 FIXED ASSETS

Fixed assets are stated at cost of acquisition or construction including incidental expenses related to acquisition and installation less accumulated depreciation.

1.4 DEPRECIATION

The Company has provided depreciation pro-rata on the S.L.M method at the rates specified in Schedule XIV OF The Companies Act, 1956.

1.5 INVESTMENT

Investments, which are readily realizable and intended to be sale within year from the date of acquisition, are classified as current investments. Other investments are classified as Non Current Investments.

Current investments are valued at fair market value or cost which ever is less. Cost of investment comprise of Purchase price and brokerage paid for acquisition.

Non Current Investments are valued at cost. However permanent reduction in value of Non Current Investment which is not tempo- rary in nature is provided by way of making provision for diminutions.

On disposal of an investments, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.6 PROVISION FOR INCOME TAX

Income taxes are accrued in the same period that the related revenue and expenses arise.

Deferred tax assets in situation where unabsorbed depreciation and Carry forward business loss exists, are recognized only if there is virtual Certainty supported by convincing evidence that sufficient future Taxable income will be available against which such deferred tax can be realized. Deferred tax assets, other than in situation of unabsorbed depreciation and carry forward business loss, are recognized only if there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the appropri- ateness Of their respective carrying values at each reporting date. Deferred Tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same Taxation authority.

Income tax expenses has been consists of Current tax and Differed tax. Provision for current tax is made as per the provision of the Income tax Act. 1961 applicable for the year. Where as the Differed tax has been provided as per the As-22 "Accounting for Taxes on Income".

1.7 EARNING PER SHARES:

The Company report basic and diluted Earning Per Share in accordance with Accounting Standards (AS) 20 "Earning Per Shares" issued by The Institute of Chartered Accountants of India. Basic Earning Per Share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted Earning Per Share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

1.8 IMPAIRMENT OF ASSETS:

Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an asset and from its disposal at the of its useful life.

1.9 In the opinion of Board, all the items of current assets, loans and advances have a value on the realization in the ordinary course of business at least equal to amount at which they are stated.

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Mar 31, 2012

During the year ended on March 31, 2012 revised Schedule VI has become applicable to the company. The applicability of revised schedule VI does not alter the recognition and measurement principle followed in preparation of financiar state- ments. However it has significant impact on the presentation and disclosure made in financial statements. The company has reclassified previous year figure in accordance with the revised schedule VI.

1.1 Use of Estimates:

The preparation financial statement requires to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities at the end of the reporting period. The assumption based on which such estimate made are not certain and due to that the ultimate result may require adjustment in carrying amount of assets and liabilities in future periods.

1.2 FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including incidental expenses related to acquisition and instal- lation less accumulated depreciation.

1.3 DEPRECIATION:

The Company has provided depreciation pro-rata on the S.L.M method at the rates specified in Schedule XIV OF The Companies Act, 1956.

1.4 INVESTMENT

Investments, which are readily realizable and intended to be sale within on year from the date of acquisition, are classified as current investments. Other investments are classified as long term investments.

Current investments are valued at fair market value or cost which ever is less. Cost of investment comprise of Purchase price and brokerage paid for acquisition.

Long term investments are valued at cost. However permanent reduction in value of long term investment which is not temporary in nature is provided by way of making provision for diminutions.

On disposal of an investments, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss

1.5 INVENTORY:

Inventories of Stationery and Food and Beverages are valued at Cost.

1.6 PROVISION FOR INCOME TAX:

Income tax expenses has been consists of Current tax and Differed tax. Provision for current tax is made as per the provision of the Income tax Act. 1961 applicable for the year. Whereas the Differed tax has been provided as pertheAs-22 'Account- ing for Taxes on Income"

1.7 EARNING PER SHARES:

The Company report Basic and Diluted Earning Per Share in accordance with Accounting Standards (AS) 20 "Earning Per Shares" issued by The Institute of Chartered Accountants of India. Basic Earning Per Share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted Earning Per Share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

1.8 IMPAIRMENT OF ASSETS:

Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recover- able amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an asset and from its disposal at the of its useful life.

1.9 In the opinion of Board, all the items of current assets, loans and advances have a value on the realization in the ordinary course of business at least equal to amount at which they are stated.

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Mar 31, 2011

(i) METHOD OF ACCOUNTING:

The financial statements have been prepared on the historical cost convention and in accordance with normally accepted Accounting Prin- ciples.

(ii) RECOGNITION OF INCOME & EXPNDITURE:

Revenues/Incomes and costs/expenditures are generally accounted on Accrual basis. As they are earned or incurred.

(iii) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including incidental expenses related to acquisition and installation less accumulated depreciation.

(iv) DEPRECIATION:

The Company has provided depreciation pro-rata on the S.L.M method at the rates specified in Schedule XIV OF The Companies Act, 1956.

(v) INVESTMENT:

Long term Investments are valued at cost. However any permanent reduction in the value of long term investments are provided by way of Provision for diminution. Short term Investments are valued at Cost or Market Price which ever is less.

(vi) INVENTORY:

Inventories of Stationery and Food and Beverages are valued at Cost.

(vii) PROVISION FOR INCOME TAX:

Income tax expenses has been consists of Current tax and Differed tax. Provision for current tax is made as per the provision of the Income tax Act.1961 applicable for the year. Where as the Differed tax has been provided as per the As-22 Accounting for Taxes on Income"

(viii) RETIREMENT BENEFITS:

Accrued Liability in respect of gratuity will provide on payment basis.

(ix) EARNING PER SHARES:

The Company report Basic and Diluted Earning Per Share in accordance with Accounting Standards (AS) 20 "Earning Per Shares" issued by The Institute of Chartered Accountants of India. Basic Earning Per Share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted Earning Per Share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(x) IMPAIRMENT OF ASSETS:

Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an asset and from its disposal at the of its useful life.

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Mar 31, 2010

(i) METHOD OF ACCOUNTING:

The financial statements have been prepared on the historical cost convention and in accordance with normally accepted Accounting Principles.

(ii) RECOGNITION OF INCOME & EXPNDITURE:

Revenues/Incomes and costs/expenditures are generally accounted on Accrual basis. As they are earned or incurred.

(iii) FIXED ASSETS:

Fixed assets are stated at cost of acquisition or construction including incidental expenses related to acquisition and installation less accumulated depreciation.

(iv) DEPRECIATION:

The Company has provided depreciation pro-rata on the S.L.M method at the rates specified in Schedule XIV OF The Companies Act, 1956.

(v) INVESTMENT:

Investments are valued at cost.

(vi) INVENTORY:

Inventories of Stationery and Food and Beverages are valued at Cost.

(vii) PROVISION FOR INCOME TAX:

Provision for income tax has been made in accordance with Income Tax Law and Rules prevailing at the time of the relevant assessment years.

(viii) RETIREMENT BENEFITS:

Accrued Liability in respect of gratuity will provide on payment basis.

(ix) EARNING PER SHARES:

The Company report Basic and Diluted Earning Per Share in accordance with Accounting Standards (AS) 20 "Earning Per Shares" issued by The Institute of Chartered Accountants of India. Basic Earning Per Share is computed by dividing net profit after tax by the weighted average number of equity shares outstanding for the period. Diluted Earning Per Share is computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

(x) IMPAIRMENT OF ASSETS:

Impairment loss, if any, is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of an asset and from its disposal at the of its useful life.