Mar 31, 2015
A) Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and in accordance with the Accounting Standards applicable
in India and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
of the acquisition of new assets is inclusive of taxes and other
incidental expenses.
c) Inventories
The inventories have been determined on the basis of FIFO method and
the basis of determining cost for various categories of inventories are
as follows:-
1) Stock (Real Estate) At Cost
2) Project Expenses On the basis of actual expenses incurred
d) Revenue Recognition
1) Sales are recognized to the extent of project completion basis.
During the year, the manage- ment has certified that the development of
Project has been completed to the extent of 90% till 31.03.2015
(Previous Year 90%) on mercantile basis. Accordingly the revenue has
been recognized.
2) Foreign currency fluctuations during the year are NIL (Previous year
NIL).
3) Vat tax liability is accounted for on the basis of sales/Vat tax
returns filed and tax deposited by the Company. Additional liability,
if any, arises at the time of assessment, will be accounted for in the
year of finalization of assessment.
e) Foreign Exchange Transaction Nil (Previous year Nil)
f) Depreciation
Consequent to the enactment of the Companies Act, 2013(the act) and its
applicability for the accounting periods after April 1, 2014, the
company has computed depreciation with reference to the estimated
economic lives of the fixed assets prescribed by the Schedule II to the
Act. For assets whose life is over, the carrying value, net of residual
value, aggregating to Rs.4.53 lacs as at April 1, 2014 has been
adjusted to retained earnings and in other assets the carrying value as
at April 1,2014 has been depreciated over the remaining of the revised
useful life of the assets and recognized in the above financial
results. As a result, charge of depreciation is higher by Rs. 5.20 Lacs
for the Qtr and for the year ended March 31,2015 and the net profit
from activities before tax is lower by the same amount.
g) Retirement Benefits
Gratuity liability has been accounted for on an accrual basis.
Contribution to Provident Fund, Family Pension Scheme and E.S.I. are
accounted for on accrual basis and charged to Profit & Loss Account
accordingly.
h) Investments Investments are valued at cost.
I) Accounting of Taxes on Income
No provision for current tax is made on the basis of estimated taxable
income for the current accounting year, in accordance with the
provision of Income Tax Act, 1961.
The deferred tax for timing difference between the book profits and tax
profits for the year is accounted for using the tax rates and laws that
have been enacted or substantially enacted as on the Balance Sheet
date. Deferred tax asset arising from timing difference are recognized
to the extent there is reasonable certainty that these would be
realized in future and are reviewed for the appropriateness of their
respective carrying value at each Balance Sheet date.
j) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting policies in India requires management to make
estimates and assumption that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The Management believes that
the estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision of accounting estimates will be recognized
prospectively in future periods.
k) IMPAIRMENT OF ASSETS
The Company assesses at each balance sheet whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the Profit and Loss Statement. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at recoverable amount subject to a maximum of depreciated
historical cost and is accordingly reversed in the Profit and Loss
Statement.
Mar 31, 2014
A) Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and in accordance with the Accounting Standards applicable
in India and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Fixed Assets
All fixed assets are stated at cost less accumulated depreciation.
Costs of the acquisition of new assets are inclusive of taxes and other
incidental expenses.
c) Inventories
The inventories have been determined on the basis of FIFO method and
the basis of determining cost for various categories of inventories are
as follows:-
1) Finished Goods At Estimated
(Factories) : realizable value
2) Stock At Cost
(Real Estate) :
3) Project On the basis of
Development actual expenses
Expenses incurred
d) Revenue Recognition
1) Sales are recognized to the extent of project completion basis.
During the year, the management has certified that the development of
Project has been completed to the extent of 90% till 31.03.2014
(Previous Year 80%) on mercantile basis. Accordingly the revenue has
been recognized.
2) Foreign currency fluctuations during the year are NIL( Previous year
NIL).
3) Vat tax liability is accounted for on the basis of sales/Vat tax
returns filed and tax deposited by the Company. Additional liability,
if any, arises at time of assessment, will be accounted for in the year
of finalization of assessment.
e) Foreign Exchange Transaction - NIL (Previous year NIL)
f) Depreciation
Depreciation on Fixed Assets have not been calculated on the rates as
per Schedule XIV of the Companies Act, 1956, however, it had been
calculated and provided as per the rates prescribed in Income Tax Act,
1961 as consistently been provided year after year in the past.
g) Retirement Benefits
Gratuity liability has been accounted for on accrual basis.
Contribution to Provident Fund, Family Pension Scheme and E.S.I. are
accounted for on accrual basis and charged to Profit & Loss Account
accordingly.
h) Investment
Investments are valued at cost.
i) Accounting of Taxes on Income
Provision for current tax is made on the basis of estimated taxable
income for the current accounting year, in accordance with the
provision of Income Tax Act, 1961.
The deferred tax for timing difference between the book profits and tax
profits for the year is accounted for using the tax rates and laws that
have been enacted or substantially enacted as on the Balance Sheet
date. Deferred tax asset arising from timing difference are recognized
to the extent there is reasonable certainty that these would be
realized in future and are reviewed for the appropriateness of their
respective carrying value at each Balance Sheet date.
j) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting policies in India requires management to make
estimates and assumption that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The Management believes that
the estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision of accounting estimates will be recognized
prospectively in future periods.
k) Impairment of Assets
The Company assesses at each balance sheet whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the Profit and Loss Statement. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at recoverable amount subject to a maximum of depreciated
historical cost and is accordingly reversed in the Profit and Loss
statement.
Mar 31, 2013
A) Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and in accordance with the Accounting Standards applicable
in India and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Fixed Assets
All fixed assets are stated at cost less accumulated depreciation.
Costs of the acquisition of new assets are inclusive of taxes and other
incidental expenses.
c) Inventories
The inventories have been determined on the basis of FIFO method and
the basis of determining cost for various categories of inventories are
as follows:-
1) Finished Goods At Estimated (Factories): realizable value
2) Stock At Cost (Real Estate):
3) Project On the basis of Development actual expenses Expenses
incurred
d) Revenue Recognition
1) Sales are recognized to the extent of project completion basis.
During the year, the management has certified that the development of
project has been completed to the extent of 80% till 31.03.2013
(Previous Year 55%) on mercantile basis. Accordingly the revenue has
been recognized. During the previous year the company has undertaken
the development work of the project from Ansal API. The development
expenses & other expenses incurred on project by Ansal API was taken as
Project Development expenses in the cost of material.
During the previous year the company has changed the method of
accounting for the recognition of revenue on the sale of plots. Earlier
to the previous year the company was recognized the revenue for their
own share of 62.50% on the basis of project completion basis as per the
Development Agreement with Ansal API, but during the previous year the
company had recognized the sale of plot at its own sale instead of
share of revenue.
2) Foreign currency fluctuations during the year are NIL( Previous year
NIL).
3) Vat tax liability is accounted for on the basis of sales/Vat tax
returns filed and tax deposited by the Company. Additional liability,
if any, arises at time of assessment, will be accounted for in the year
of finalization of assessment.
e) Foreign Exchange Transaction - NIL (Previous year NIL)
f) Depreciation
Depreciation on Fixed Assets have not been calculated on the rates as
per Schedule XIV of the Companies Act, 1956, however, it had been
calculated and provided as per the rates prescribed in Income Tax Act,
1961 as consistently been provided year after year in past.
g) Retirement Benefits
Gratuity liability has been accounted for on accrual basis.
Contribution to Provident Fund, Family Pension Scheme and E.S.I, are
accounted for on accrual basis and charged to Profit & Loss Account
accordingly.
h) Investment
Investments are valued at cost.
i) Accounting of Taxes on Income
Provision for current tax is made on the basis of estimated taxable
income for the current accounting year, in accordance with the
provision of Income Tax Act, 1961.
The deferred tax for timing difference between the book profits and tax
profits for the year is accounted for using the tax rates and laws that
have been enacted or substantially enacted as on the Balance Sheet
date. Deferred tax asset arising from timing difference are recognized
to the extent there is reasonable certainty that these would be
realized in future and are reviewed for the appropriateness of their
respective carrying value at each Balance Sheet date.
j) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting policies in India requires management to make
estimates and assumption that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The Management believes that
the estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision of accounting estimates will be recognized
prospectively in future periods.
k) Impairment of Assets
The Company assesses at each balance sheet whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the Profit and Loss Statement. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at recoverable amount subject to a maximum of depreciated
historical cost and is accordingly reversed in the Profit and Loss
Statement.
Mar 31, 2011
A) Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and in accordance with the Accounting Standards applicable
in India and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
of the acquisition of new assets are inclusive of taxes and other
incidental expenses.
c) Inventories
The inventories have been determined on the basis of FIFO method and
the basis of determining cost for various categories of inventories are
as follows:-
1) Finished Goods : At Estimated realizable Value
2) Stock At Cost
(Real Estate)s
d) Revenue Recognition
1) Sales are recognized to the extent of project completion basis.
During the year, project on development of mercantile basis by the
Management has reported / completed to the extent of 45%. Certificate
in this regards have been obtained from the Management of the Company.
Company's share of sales to the extent of 62.50% in terms of Agreement
with Developer has been provided in the books of accounts of the
company on Mercantile System of Accounting followed by the company year
after year.
2) Foreign currency fluctuations during the year are NIL.
3) Vat tax liability is accounted for on the basis of sales/Vat tax
returns filed and tax deposited by the Company. Additional liability,
if any, arises at time of assessment, will be accounted for in the year
of finalization of assessment.
e) Foreign Exchange Transaction
NIL
f) Depreciation
Depreciation on Fixed Assets have not been calculated on the rates as
per Schedule XIV of the Companies Act, 1956, however, it had been
calculated and provided as per the rates prescribed in Income Tax Act,
1961 which has consistently been provided year after year in past.
g) Gratuity
Gratuity liability contribution to Provident Fund, Family Pension
Scheme and E.S.I. has been provided on accrual basis.
h) Investment
Investments are valued at cost. All the investments are treated as
Long-term investments.
i) Accounting of Taxes on Income
Provision for current tax is made on the basis of estimated taxable
income for the current accounting year, in accordance with the
provision of Income Tax Act, 1961.
The deferred tax for timing difference between the book profits and tax
profits for the year is accounted for using the tax rates and laws that
have been enacted or substantially enacted as on the Balance Sheet
date. Deferred tax asset arising from timing difference are recognized
to the extent there is reasonable certainty that these would be
realized in future and are reviewed for the appropriateness of their
respective carrying value at each Balance Sheet date.
j) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting policies in India requires management to make
estimates and assumption that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The Management believes that
the estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision of accounting estimates will be recognized
prospectively in future periods. In view of this, the figure of sale of
Real Estate of Rs.818.82 lacs have been provided in the books of
accounts of the company on estimated project completion to the extent
of 45%.
k) Impairment of Assets
The Company assesses at each balance sheet whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit to which the asset belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount and the reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at recoverable amount subject to a maximum of depreciated
historical cost and is accordingly revered in the profit and loss
account.
Mar 31, 2010
A) Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and in accordance with the Accounting Standards applicable
in India and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
of the acquisition is inclusive of freight, duties, taxes and other
incidental expenses.
c) Inventories
The inventories have been determined on the basis of FIFO method and
the basis of determining cost for various categories of inventories are
as follows:-
1) Raw Material At Cost
2) Finished Goods : At Estimated
realizable Value
3) Others: At Cost
d) Revenue Recognition
1) Sale is recognized on mercantile basis.
2) Foreign currency fluctuations are recognized to revenue at time of
realization.
3) Vat tax liability is accounted for on the basis of salesA/at tax
returns filed and tax deposited by the Company. Additional liability,
if any, arises at time of assessment, will be accounted for in the year
of f inalization of assessment.
e) Foreign Exchange Transaction
All the foreign exchange transactions for sale are accounted for at the
rate applicable at the time of execution of documents with the bank or
dispatch of goods.
f) Depreciation
Depreciation has been calculated as per the Income Tax Act, 1961 on
Written down Value Method.
g) Gratuity
Gratuity liability has been accounted for on accrual basis.
Contribution to Provident Fund, Family Pension Scheme and ESI are
accounted for on accrual basis and charged to Profit & Loss Account
accordingly.
h) Investment
Investments are valued at cost plus incidental expenses, if any. All
Investments are treated as Long-term investments, which are stated at
cost.
i) Accounting of Taxes on Income
No provision for Income tax has been made keeping in view the carried
forward losses of the previous years.
Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting
for Taxes on Income" by the Institute of Chartered Accountants of India
which is mandatory in nature, the company has reviewed Deferred Taxes
which result from the timing difference between the Book Profits and
Tax Profits.
In consideration of prudence as set out in paragraph 15 to 18 of AS-22,
the company has not recognized Net Deferred Tax Assets in the Financial
Statement for the year ended 31.03.2010. Further in accordance with
paragraph 19 of AS-22 the Net Deferred Tax Asset, if any, shall be
reassessed at the end of each Balance Sheet date hereafter and
accordingly due recognition shall be given in the Financial Statements
j) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting policies in India requires management to make
estimates and assumption that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The Management believes that
the estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision of accounting estimates is recognized
prospectively in current and future periods.
k) Borrowing Cost
Borrowings cost that are attributable to the acquisition or
constructions of qualifying assets are capitalized as part of cost of
such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are recognized as expense in the year in which they are
incurred.
l) Provisions, Contingent Liabilities And Contingent Assets
A provision is created where there is present obligation as a result of
a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require outflow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in the financial
statements.
m) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its receivable value. An impairment loss is charged to the
profit & loss accounts in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
Mar 31, 2009
A) Accounting Convention
The financial statements have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and in accordance with the Accounting Standards applicable
in India and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
b) Fixed Assets
All fixed assets are stated at cost less accumulated depreciation. Cost
of the acquisition is inclusive of freight, duties, taxes and other
incidental expenses. Loss on conversion of foreign currency liability
for acquisition of fixed assets is added to the assets.
c) Inventories
The inventories have been determined on the basis of FIFO method and
the basis of determining cost for various categories of inventories are
as follows:-
1) Raw Material At Cost
2) Finished Goods : At Estimated
realizable Value
3) Others: At Cost
d) Revenue Recognition
1) Sale is recognized on mercantile basis.
2) Foreign currency fluctuations are recognized to revenue at time of
realization.
3) Sales/Vat tax liability is accounted for on the basis of sales/Vat
tax returns filed and tax deposited by the Company. Additional
liability, if any, arises at time of asses- sment, will be accounted
for in the year of finalization of assessment.
e) Foreign Exchange Transaction
All the foreign exchange transactions for sale are accounted for at the
rate applicable at the time of execution of documents with the bank or
dispatch of goods.
f) Depreciation
Depreciation has been calculated as per the Income Tax Act, 1961 on
Written down Value Method.
g) Gratuity
Gratuity liability has been accounted for on accrual basis.
Contribution to Provident Fund, Family Pension Scheme and ESI are
accounted for on accrual basis and charged to Profit & Loss Account
accordingly.
h) Investment
Investments are valued at cost plus incidental expenses, if any.
Investments are classified into Current and Long-term investments.
Current investments are stated at the lower of cost and fair value.
Long-term investments are/shall be stated at cost. A provision for
diminution shall be made to recognize a decline, other than temporary,
in the value of long-term investments.
i) Accounting of Taxes on Income
Since the company has incurred losses during the year, so income-tax
for current year has not been provided.
Consequent to the issuance of Accounting Standard 22(AS-22) "Accounting
forTaxes on Income" by the Institute of Chartered Accountants of India
which is mandatory in nature, the company has reviewed Deferred Taxes
which result from the timing difference between the Book Profits and
Tax Profits.
Fringe Benefit Tax (FBT) payable under the provisions of section 115WC
of the Income Tax Act, 1961, is in accordance with the Guidance Note on
Accounting for
Fringe Benefit Tax issued by the ICAI, regarded as an additional income
tax and considered in determination of the profits for the year.
j) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting policies in India requires management to make
estimates and assumption that affect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities on the
date of the financial statements and the reported amount of revenues
and expenses during the reporting period. The Management believes that
the estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision of accounting estimates is recognized
prospectively in current and future periods.
k) Borrowing Cost
Borrowings cost that are attributable to the acquisition or
constructions of qualifying assets are capitalized as part of cost of
such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are recognized as expense in the year in which they are
incurred.
l) Provisions, Contingent Liabilities And Contingent Assets
A provision is created where there is present obligation as a result of
a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require outflow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Contingent assets are neither recognized nor disclosed in the financial
statements.
m) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its receivable value. An impairment loss is charged to the
profit & loss accounts in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
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