Mar 31, 2015
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS :
The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") in India under the historical
cost convention, on accrual basis. GAAP comprises mandatory Accounting
Standards issued by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 2013. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
1.2 USE OF ESTIMATES :
The Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Any revision to the accounting estimates is
recognized prospectively.
1.3 TANGIBLE ASSETS AND CAPITAL WORK IN PROGRESS :
Tangible assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable/allocable cost of bringing the asset to its working
condition for its intended use. The cost also includes direct cost and
other related incidental expenses. Revenues earned, if any during trial
run of assets is adjusted against cost of the assets.
1.4 DEPRECIATION AND AMORTIZATION :
Depreciation on all assets of the Company has been provided on Straight
Line Method at the rates and in the manner specified in schedule II of
the Companies Act, 2013. The details of estimated life for each
category of asset are as under:
Type of Asset Life
Office Premises 60 Years
Plant & Machinery 15 Years
Office Equipments 5 Years
Computers 3 Years
Furniture & Fixtures 10 Years
Motor Car 8 Years
Motor Bike 10 ears
1.5 IMPAIRMENT OF ASSETS :
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Whenever the carrying amount of an asset exceed its
recoverable amount, an impairment loss is recognized in the income
statement for the items of fixed assets carried at cost. However in the
opinion of the management, no provision is required for impairment of
asset in the current year.
1.6 INVESTMENTS:
Investments that are readily realizable and intended to be held for not
more than one year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost or fair value determined on
individual investment basis. Long term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary decline in the value of the investments.
1.7 INVENTORIES:
a) Construction work in progress
The construction work in progress is valued at lower of cost and net
realizable value. Cost includes cost of land, development rights, rates
and taxes, construction costs, borrowing costs, other direct
expenditure, allocated overheads and other incidental expenses.
b) Finished stock of completed projects (ready units)
Finished stock of completed projects and stock in trade of units is
valued at lower of cost and net realizable value.
c) Inventory includes certain land purchased in the name of directors
who holds the same in trust for the Company
1.8 REVENUE RECOGNITION:
i) Revenue for real estate development/sale
The Company being a Development and Construction Company engaged in the
construction of the Industrial Plots Sheds and the Residential
Bungalows. During the year under review, the Company has followed the
method of accounting for the recognizing of sales on the basis
completion of sales method prescribed in AS-9 Revenue Recognition.
Hence sales are recognized when possession is handed over to the
parties. All expenses and incomes not directly related to particular
projects are charged to Profit and loss account of the financial year
during which the same are incurred.
Further based on the Guidance Note on Accounting for Real Estate
Transaction (Revised 2012) issued by the ICAI, company has followed
percentage completion method for projects where construction activity
has been commenced from 1st April,2012.
The estimates relating to percentage of completion, costs of
completion, area available for sale etc. being of a technical nature
are reviewed and revised periodically by the Management and are
considered as change in estimates and accordingly, the effect of such
changes in estimates is recognized prospectively in the period in which
such changes are determined.
Revenue of open plots / land is recognized on the execution of
agreement.
ii) Rent
Rental Income is recognized on a time proportion basis as per the
contractual obligations agreed with the respective tenant.
iii) Interest
Interest Income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.9 FOREIGN CURRENCY TRANSACTION:
All the Foreign Currency Transactions are accounted for at the exchange
rate prevailing on the date of such transaction.
1.10 SHARE ISSUE EXPENSES :
Share issue expenses are amortized over a period not exceeding 5 years.
1.11 TAXES ON INCOME :
(a) Provision for Income Tax is made on the basis of income for the
current accounting period in accordance with the Income tax Act, 1961.
(b) Deferred tax resulting from timing difference between book and tax
profit is accounted for under the liability method, at the current rate
of tax, to the extent that the timing differences are expected to
crystallize.
(c) The Company has made current tax provision for Minimum Alternate
Tax (MAT) under section 115JB of the Income tax Act, 1961. As per the
provisions of section 115JAA. MAT Credit receivable has to be
recognized as an asset in accordance with the recommendations contained
in Guidance note issued by the ICAI. However same is not accounted as
receivable in the books of accounts since the management is doubtful of
availing the credit against Income tax payable due to uncertainty of
taxable profits in the upcoming years
1.12 EARNING PER SHARE:
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of
shares). For the purpose of calculating diluted earnings per share, the
net profit or loss for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
1.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is recognized when an enterprise 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 best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Possible future obligations or present obligations that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is disclosed as contingent liabilities in
the notes to accounts of financial statements. Contingent Assets are
neither recognized nor disclosed in the financial statements.
1.14 BORROWING COSTS
Borrowing costs relating to acquisition and/or construction of
qualifying assets are capitalized to the extent that the funds are
borrowed and used for purpose of constructing a qualifying asset 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. All other borrowing costs which are not
related to acquisition and/or construction activities nor are
incidental thereto are charged to the Statement of profit and loss.
Mar 31, 2014
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS :
The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") in India under the historical
cost convention, on accrual basis. GAAP comprises mandatory Accounting
Standards issued by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
1.2 USE OF ESTIMATES :
The Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Any revision to the accounting estimates is
recognized prospectively.
1.3 TANGIBLE ASSETS AND CAPITAL WORK IN PROGRESS :
Tangible assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable/allocable cost of bringing the asset to its working
condition for its intended use. The cost also includes direct cost and
other related incidental expenses. Revenues earned, if any during trial
run of assets is adjusted against cost of the assets.
1.4 DEPRECIATION AND AMORTIZATION :
Depreciation on all assets of the Company has been provided on Straight
Line Method at the rates and in the manner specified in schedule XIV of
the Companies Act,1956.
1.5 IMPAIRMENT OF ASSETS :
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Whenever the carrying amount of an asset exceed its
recoverable amount, an impairment loss is recognized in the income
statement for the items
Of fixed assets carried at cost. However in the opinion of the
management, no provision is required for impairment of asset in the
current year.
1.6 INVESTMENTS :
Investments that are readily realizable and intended to be held for not
more than one year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost or fair value determined on
individual investment basis. Long term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary decline in the value of the investments.
1.7 INVENTORIES :
a) Construction work in progress
The construction work in progress is valued at lower of cost and net
realizable value. Cost includes cost of land, development rights,
rates and taxes, construction costs, borrowing costs, other direct
expenditure, allocated overheads and other incidental expenses.
b) Finished stock of completed projects (ready units)
Finished stock of completed projects and stock in trade of units is
valued at lower of cost and net realizable value.
c) Inventory includes certain land purchased in the name of directors
who holds the same in trust for the Company
1.8 REVENUE RECOGNITION :
i) Revenue for real estate development/sale
The Company being a Development and Construction Company engaged in the
construction of the Industrial Plots Sheds and the Residential
Bungalows. During the year under review, the Company has followed the
method of accounting for the recognizing of sales on the basis
completion of sales method prescribed in AS-9 Revenue Recognition.
Hence sales are recognized when possession is handed over to the
parties. All expenses and incomes not directly related to particular
projects are charged to Profit and loss account of the financial year
during which the same are incurred.
Further based on the Guidance Note on Accounting for Real Estate
Transaction (Revised 2012) issued by the ICAI, company has followed
percentage completion method for projects where construction activity
has been commenced from 1st April,2012.
The estimates relating to percentage of completion, costs of
completion, area available for sale etc. being of a technical nature
are reviewed and revised periodically by the Management and are
considered as change in estimates and accordingly, the effect of such
changes in estimates is recognized prospectively in the period in which
such changes are determined.
Revenue of open plots / land is recognized on the execution of
agreement.
ii) Rent
Rental Income is recognized on a time proportion basis as per the
contractual obligations agreed with the respective tenant.
iii) Interest
Interest Income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
1.9 FOREIGN CURRENCY TRANSACTION :
All the Foreign Currency Transactions are accounted for at the exchange
rate prevailing on the date of such transaction.
1.10 SHARE ISSUE EXPENSES :
Share issue expenses are amortized over a period not exceeding 5 years.
1.11 TAXES ON INCOME :
(a) Provision for Income Tax is made on the basis of income for the
current accounting period in accordance with the Income tax Act, 1961.
(b) Deferred tax resulting from timing difference between book and tax
profit is accounted for under the liability method, at the current rate
of tax, to the extent that the timing differences are expected to
crystallize.
(c) The Company has made current tax provision for Minimum Alternate
Tax (MAT) under section 115JB of the Income tax Act, 1961. As per the
provisions of section 115JAA. MAT Credit receivable has to be
recognized as an asset in accordance with the recommendations contained
in Guidance note issued by the ICAI. However same is not accounted as
receivable in the books of accounts since the management is doubtful of
availing the credit against Income tax payable due to uncertainty of
taxable profits in the upcoming years
1.12 EARNING PER SHARE:
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of
shares). For the purpose of calculating diluted earnings per share, the
net profit or loss for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
1.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is recognized when an enterprise 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 best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Possible future obligations or present obligations that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is disclosed as contingent liabilities in
the notes to accounts of financial statements. Contingent Assets are
neither recognized nor disclosed in the financial statements.
1.14 BORROWING COSTS
Borrowing costs relating to acquisition and/or construction of
qualifying assets are
capitalized to the extent that the funds are borrowed and used for
purpose of constructing a qualifying asset 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. All other borrowing costs which are not related to
acquisition and/or construction activities nor are incidental thereto
are charged to the Statement of profit and loss.
Mar 31, 2013
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements are prepared in accordance with Generally
Accepted Accounting Principles ("GAAP") in India under the
historical cost convention, on accrual basis. GAAP comprises mandatory
Accounting Standards issued by the Companies (Accounting Standards)
Rules, 2006 and the relevant provisions of the Companies Act, 1956. The
accounting policies have been consistently applied by the Company and
are consistent with those used in the previous year.
1.2 USE OF ESTIMATES :
The Preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Any revision to the accounting estimates is
recognized prospectively. :
1.3 TANGIBLE ASSETS AND CAPITAL WORK IN PROGRESS:
Tangible assets are stated at cost, less accumulated depreciation and
impairment losses if any. Cost comprises the purchase price and any
attributable/allocable cost of bringing the asset to its working
condition for its intended use. The cost also includes direct cost and
other related incidental expenses. Revenues earned, if any during trial
run of assets is adjusted against cost of the assets.
Capital work in progress is stated at cost less impairment losses, if
any. Cost comprises of expenditure incurred in respect of capital
projects under development and includes any attributable/allocable cost
and other incidental expenses. Revenues earned, if any before
capitalization from such capital project are adjusted against the
capital work in progress.
1.4 DEPRECIATION AND AMORTIZATION
Depreciation on all assets of the Company has been provided on Straight
Line Method at the rates and in the manner specified in schedule
XIV of the CompaniesAct,1956.
1.5 IMPAIRMENT OF ASSETS:
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Whenever the carrying amount of an asset exceed its
recoverable amount, an impairment loss is recognized in the income
statement for the items of fixed assets carried at cost. However in the
opinion of the management, no provision is required for impairment of
asset in the current year.
1.6 INVESTMENTS: !
Investments that are readily realizable and intended to be held for not
more than one year are classified as . current investments. All other
investments are classified as long-term investments. Current
investments I are carried at lower of cost or fair value determined on
individual investment basis. Long term investments are carried at cost.
However, provision for diminution in value is made to recognize a
decline other than temporary decline in the value of the investments.
1.7 INVENTORIES:
a) Construction work in progress
The construction work in progress is valued at lower of cost and net
realizable value. Cost includes cost of land, development rights, rates
and taxes, construction costs, borrowing costs, other direct
expenditure, allocated overheads and other incidental expenses.
b) Finished stock of completed projects (ready units)
Finished stock of completed projects and stock in trade of units is
valued at lower of cost and net realizable value.
c) Inventory includes certain land purchased in the name of directors
who holds the same in trust for the Company
1.8 REVENUE RECOGNITION:
i) Revenue for real estate development/sale
The Company being a Development and Construction Company engaged in the
construction of the Industrial Plots Sheds and the Residential
Bunglows. During the year under review, the Company has followed the
method of accounting for the recognizing of sales on the basis
completion of sales method prescribed in AS-9 Revenue Recognition.
Hence sales are recognized when possession is handed over to the
parties. All expenses and incomes not directly related to particular
projects are charged to Profit and loss account of the financial year
during which the same are incurred
Further based on the Guidance Note on Accounting for Real Estate
Transaction (Revised 2012) issued by the ICAI, company has followed
percentage completion method for projects where construction activity
has been commenced from 1" April, 2012.
The estimates relating to percentage of completion, costs of
completion, area available for sale etc. being of a technical nature
are reviewed and revised periodically by the Management and are
considered as change in estimates and accordingly, the effect of such
changes in estimates is recognized prospectively in the period in which
such changes are determined.
Revenue of open plots / land is recognized on the execution of
agreement.
ii) Rent
Rental Income is recognized on a time proportion basis as per the
contractual obligations agreed with the respective tenant.
iii) Interest
Interest Income is recognized on a time proportion basis taking into
account die amount outstanding and the rate applicable.
1.10 SHARE ISSUE EXPENSES:
Share issue expenses are amortized over a period not exceeding 5 years.
1.11 TAXES ON INCOME:
(a) Provision for Income Tax is made on the basis of income for the
current accounting period in accordance with the Income tax Act, 1961.
(b) Deferred tax resulting from timing difference between book and tax
profit is accounted for under the liability method, at the current rate
of tax, to the extent that the timing differences are expected to
crystallize.
(c) The Company has made current tax provision for Minimum Alternate
Tax (MAT) under section 115JB of the Income tax Act, 1961. As per the
provisions of section 115JAA., MAT Credit receivable has to be
recognized as an asset in accordance with the recommendations contained
in Guidance note issued by the ICAI. However same is not accounted as
receivable in the books of accounts since the management is doubtful of
availing the credit against Income tax payable due to uncertainty of
taxable profits in the upcoming years
1.12 EARNING PER SHARE:
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average number of equity shares outstanding during the year is adjusted
for events of bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of
shares). For the purpose of calculating diluted earnings per share, the
net profit or loss for the year attributable to equity shareholders and
the weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
1.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
A provision is recognized when an enterprise 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 best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates. Possible future obligations or present obligations that may
but will probably not require outflow of resources or where the same
cannot be reliably estimated, is disclosed as contingent liabilities in
the notes to accounts of financial statements. Contingent Assets are
neither recognized nor disclosed in the financial statements
1.14 BORROWING COSTS
Borrowing costs relating to acquisition and/or construction of
qualifying assets are capitalized to the extent that the funds are
borrowed and used for purpose of constructing a qualifying asset 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. All other borrowing costs which are not related to
acquisition and/or construction activities nor are incidental thereto
are charged to the Statement of profit and loss.
Mar 31, 2012
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS :
(a) The Financial Statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principals and the provisions of the Companies Act,1956, subject to
what is stated herein below, as adopted consistently by the Company.
(b) The Company being a Development and Construction Company engaged in
the construction of the Industrial Plots, Sheds & the Residential
Bunglows. During the year under review, the Company has followed the
method of accounting for the recognizing of sales on the basis
completion of sales method prescribed in AS-9 Revenue Recognition.
Hence sales are recognized when possession is handed over to the
parties. All expenses and incomes not directly related to particular
projects are charged to Prof it and loss account of the financial year
during which the same are incurred.
(c) All revenue, costs, assets & liabilities are accounted for on
accrual basis.
1.2 FIXED ASSETS:
Fixed Assets have been stated at Cost less Depreciation.
1.3 DEPRECIATION:
Depreciation on all assets of the Company has been provided on Straight
Line Method at the rates and in the manner specified in Schedule XIV of
the Companies Act, 1956.
1.4 INVESTMENTS:
I) All the long-term investments are stated at cost of acquisition and
provision for diminution is made if the fall in value of investment is
other than temporary nature.
ii) All the current investments are stated at cost of fair market value
whichever is lower
1.5 FOREIGN CURRENCYTRANSACTION:
All the Foreign Currency Transactions are accounted for at the exchange
rate prevailing on the date of such transaction.
1.6 PUBLIC ISSUE EXPENSES:
Such expenses are amortized l/5th in each year.
1.7 TAXES ON INCOME:
(a) Provision for Income Tax is made on the basis of income for the
current accounting period in accordance with the Income tax Act, 1961.
(b) Deferred tax resulting from timing differences between book and tax
profit is accounted for under the liability method, at the current rate
of tax, to the extent that the timing differences are expected to
crystallize.
(c) The Company has made current tax provision for Minimum Alternate
Tax (MAT) under Section 115JB of the Income Tax Act, 1961. As per the
provisions of Section 115JAA, MAT Credit receivable has to be
recognized as an asset in accordance with the recommendations contained
in Guidance note issued by the ICAI. However the same is not accounted
as receivable in the books of accounts since the management is doubtful
of availing the credit against Income Tax Payable due to uncertainty of
taxable profits in theupcomingyears.
1.8 REVENUE RECOGNITION:
(I) The company is engaged in construction activity and the sales are
recognized when the construction is completed and possession is given.
Sales are recognized net off returns and discounts given.
(ii) During the financial year 2008-09 the company had entered into
various agreements for sale of its plots, Real Estate etc. In
accordance with the practice followed by the company in the past, sales
revenue and profit thereon were recognized at the time of entering such
agreement based on advance received against sales.
(iii) During the previous financial year due to unfavorable conditions,
some of the parties to whom sales had been affected have failed to meet
their commitment. Therefore during the previous financial year certain
sales agreement effected in 2008-09 & earlier year's stands cancelled
and sales return and reversal of profit thereon has been effected
during the previous financial year.
The company upto 31st March 2008 considered sales as completed and
credited its profit and loss account by the agreed sales consideration
of unit sold. Such units sold were not ready for possession; necessary
provisions for expenses to be incurred were made on such sales. In
F.Y.2008-09 company has changed the method of accounting so as to
recognize sale on giving possession of unit sold. In case of sales
return affected out of such sales, work in progress is reflected at
cost which includes provision for expenses provided in earlieryears.
1.9 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalised as a part of the
cost of such asset. Other borrowings costs are charged to statement of
profit and loss as incurred.
1.10 IMPAIRMENT OF ASSETS
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Whenever the carrying amount of an asset exceeds its
recoverable amount, an impairment loss is recognized in the income
statement for the items of fixed assets carried at cost. However, in
the opinion of the management, no provisions is required for impairment
of assets in the current year.
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
(a) The Financial Statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principals and the provisions of the Companies Act, 1956, subject to
what is stated herein below, as adopted consistently by the Company.
(b) The Company being a Development and Construction Company engaged in
the construction of the Industrial Plots, Sheds & the Residential
Bungalows. During the year under review, the Company has followed the
method of accounting for the recognising of sales on the basis
completion of sale method prescribed in AS-9 Revenue of Recognition.
Hence sales is recognised when possession is handover to the parties.
All expenses and incomes not directly related to particular projects
are charged to Profit and Loss account of the financial year during
which the same are incurred.
(c) All revenue, costs, assets & liabilities are accounted for on
accrual basis.
2. FIXEDASSETS:
Fixed Assets have been stated at Cost less Depreciation.
3. DEPRECIATION:
Depreciation on all assets of the Company has been provided on Straight
Line Method at the rates and in the manner specifiedin Schedule XIV
ofthe Companies Act, 1956.
4. INVESTMENTS:
i) All the long-term investments are staled at cost of acquisition and
provision for diminution is made if the fall in value of investment is
other than temporary nature. ii) All the current investments are
stated at cost or fair market value whichever is lower.
5. FOREIGN CURRENCY TRANSACTION:
All the Foreign Currency Transactions are accounted for at the exchange
rate prevailing on the date of such transaction.
6. PUBLIC ISSUE EXPENSES:
Such expenses are amortised l/5thin each year.
7. TAXES ON INCOME
(a) Provision for Income Tax is made on the basis of income for the
current accounting period in accordance with the Income TaxAct, 1961.
(b) Deferred Tax resulting from timing differences between book and tax
profit is accounted for under the liability method, at the current rate
of tax, to the extent that the timing differences are expected to
crystallise
8. REVENUE RECOGNITION:
(i) The company is engaged in construction activity and the sales are
recognise when the construction is completed and possession is given.
(ii) During the previous financial year the company had entered into
various agreements for sale of its Plots, Real Estate etc. In
accordance with the practise followed by the company in the past, sales
revenue and profit thereon were recognised at the time of entering such
agreement based on advance received against sales.
(iii) During the year due to unfavourable conditions, some of the
parties to whom saleshadbeen effected have failed to meet their
commitment. Therefore during the year certain sales agreements effected
in earlier years stands cancelled and sales return and reversal of
profit thereon has been effected during the year.
The company upto 31st March 2008 considered sale as completed and
credited its profit and loss account by the agreed sales consideration
of unit sold. Such unit sold were not ready for possession, necessary
provisions for expenses to be incurred were made on such sales.
InF.Y2008-09 company has^ changed the method of accounting so as to
recognise sale on giving possession of unit sold. In case of sales
return affected out of such sales, work in progress is reflected at
cost which includes provision for expenses provided in earlier years.
9. IMPAIRMENT OF ASSETS
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable. Whenever the carrying amount of an asset exceeds its
recoverable amount, an impairment loss is recognized in the income
statement for the items of fixed assets at carried at cost However, in
the opinion of the management, no provision is required for impairment
of asset in the current year.
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