Mar 31, 2015
A. Accounting Convention
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India and the relevant provisions
of the Companies Act, 2013. The Accounting statements have been
prepared under the historical cost convention on an accrual basis. The
Accounting policies have been consistently applied by the Company are
consistent with those used in the previous year.
B. Fixed Assets
Fixed Assets are stated at their original cost including freight,
duties, taxes and other incidental expenses relating to the acquisition
and installation and are net of credit under the Excise Modvat Scheme,
wherever applicable. The Company capitalizes all costs relating to the
acquisition and installation of fixed assets.
C. Depreciation
Depreciation on fixed assets for the year is computed on the Straight
Line Method (SLM) as per the method prescribed in Schedule II to the
Companies Act, 2013.
D. Borrowing Cost
Borrowing costs that are attributable to the acquisition of qualifying
assets are capitalized as part of cost of such assets till such time
assets become ready for their intended use. All other Borrowing costs
are recognized as expenses in the year in which they are incurred.
E. Inventories Land and Building
Direct expenses like cost at site, material used for project
construction, costs for moving the plant and machinery to the site and
general expenses incurred specifically for the respective project and
construction overheads are taken as the total cost of the respective
project.
(i) Work in progress, in the case of Real Estate Development projects,
represents the cost incurred in respect of unsold area of the
incomplete Real Estate Development projects.
(ii) Stock of Plots and apartments, classified as stock in trade, are
valued at cost or net realizable value whichever is lower.
(iii) Building material purchased specifically for the projects are
taken as consumed as and when received.
F. Revenue Recognition Sale of Goods:
Sales include excise duty, where applicable and represent invoice value
of goods sold as reduced by rebates and discounts.
Sale of Flats:
Sale of flat purchased from other developers is recognized on execution
of transfer deed in favour of the buyer.
In respect of development projects undertaken by the company, revenue
is recognised when the significant risks and rewards of ownership of
the unit in real estate have passed to the buyer and the revenue is
recognized to the extent that it is probable that the economic benefit
s will flow to the Company and the revenue can be reliably measured.
Construction Contracts:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale, which is estimated on collection of at least
25% of sale consideration.
Real Estate Development Project:
The Company follows completed project method of accounting ("Project
Completion Method of Accounting"). Allocable expenses incurred during
the year are debited to work-in-progress account. The income is
accounted for as and when the projects get completed or substantially
completed and then revenue is recognized to the extent that it is
probable that the economic benefits s will flow to the Company and the
revenue can be reliably measured.
Royalty:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
Interest:
Interest on fixed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
G. Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash flow.
H. Preliminary & Preoperative Expenses
Preliminary Expenses are being amortized over a period of five years.
I. Provision for Taxation
Current Income Tax is measured at the amount expected to be paid to the
tax authorities in Accordance with the Income Tax Act.
J. Foreign Currency Translations
Translations in Foreign Currency are recorded by the applying the
exchange rate at the date of transaction. Monetary items denominated in
Foreign Currency remaining unsettled at the end of the year, are
translated at the closing rates, prevailing on the Balance Sheet date.
Exchange difference arising as a result of the above are recognized as
income are expenses in the Profit and Loss Account except for exchange
difference arising on a monetary item which, in substance, from part of
the company's net Investment in a non-integral foreign operation which
is accumulated in a foreign currency translation reserve until the
disposal of the net investment.
K. Investments
Current investments are valued at lower of cost and fair market value,
and long-term investments are stated at cost in accordance with
Accounting Standard - 13 on "Accounting for Investments" issued by the
Institute of Chartered Accountants of India. Provision for diminution
in the value of long-term investments shall be made only if such a
decline is other than temporary.
L. Deferred Tax
Deferred income taxes reflects the impact of current year timing
differences between taxable income and accounting income for the year
and reversal of timing differences of earlier years. Deferred tax is
measured based on the tax rates and the tax laws enacted or
substantively enacted at the balance sheet date. Deferred tax assets
are recognized only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
deferred tax assets can be realized. Deferred tax assets are recognized
on carry forward or unabsorbed depreciation and tax losses only if
there is virtual certainty that such deferred tax assets can be
realized against future taxable profits. Unrecognized Deferred Tax
Assets of earlier years are re-assessed and recognized to the extent
that it has become reasonably certain that future taxable income will
be available against such deferred tax assets can be realized.
M. Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares
considered for deriving basic earnings per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
N. Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
O. Impairment of Assets
As per Accounting Standard-28 issued by the Institute of Chartered
Accountants of India, the company assesses at each Balance Sheet date
whether there is any indication of impairment of carrying amount of the
company's Assets. The recoverable amounts of such assets are estimated.
If any indication exists, and impairment loss is recognized wherever
the carrying amount of the assets exceeds its recoverable amount.
P. Provisions
A provision is recognized when an enterprise has a present obligation
as a result of past events; it is probable that an outflow of resources
will be required to settle the obligations, in respect of which a
realizable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligations at the Balance Sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Q. Retirement Benefits Gratuity
Provision of Gratuity is created for employees who have completed
continuous five years' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year. Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company's contribution to provident fund is charged to profit and loss
account.
R. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
Mar 31, 2014
(a) Basis of Preparation
Financial statements are prepared under the historical cost convention
in consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. Company follows accrual basis of accounting
in accordance with the provisions of The companies Act, 1956.
(b) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verifi cation of the assets is
carried out once in three years.
(c) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fi xed assets sold during the year.
(d) Investments
Current investments are valued at the lower of cost and fair value and
long-term investments are stated at cost in accordance with Accounting
Standard  13 on "Accounting for Investments" issued by the Institute
of Chartered Accountants of India. Provision for diminution in the
value of long-term investments is made only if such a decline is other
than temporary.
(e) Inventories
Inventory of Land and Building and trading goods is valued at lower of
cost and net realizable value. Cost of Land and Building includes
acquisition cost of land and cost of super structure built thereupon.
Cost of trading goods includes acquisition cost, taxes, duties and
freight. Cost is computed on FIFO basis of costing.
(f) Preliminary Expenses and Share Issue Expenses
Preliminary expenses and Share issue expenses are to be written off in
ten years in equal installment from the year in which commercial
production commences.
(g) Retirement Benefi ts Gratuity
Provision of Gratuity is created for employees who have completed
continuous fi ve years'' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the fi nancial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company''s contribution to provident fund is charged to profi t and loss
account.
(h) Impairment of Assets
If the carrying amount of fi xed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash fl ow.
(i) Accounting for Taxes on Income
Provision for current Income tax is made after taking in to
consideration the benefi ts admissible under the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
suffi cient future taxable income available to realize such losses.
(j) Foreign Currency Transactions Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying the exchange rate between the reporting currency and the
foreign currency to the foreign currency amount at the date of the
transaction.
Conversion
Foreign currency monetary items are reported using the closing rate.
Gains and losses, if any, at the year-end in respect of monetary assets
and monetary liabilities not covered by the forward contracts are
recognized in the profi t and loss account.
Exchange Difference
Exchange difference arising on the settlement of monetary items at rate
different from those at which they were initially recorded during the
year, are recognized as income or as expense in the year in which they
arise.
(k) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefi ts will fl ow to the company and the revenue can be
reliably measured.
Sale of Goods:
Sales are recognized net of sales tax charged, and rebates/discounts
allowed to customers.
Sale of Services:
Revenue from services is recognized on completion of services.
Interest:
Interest on fi xed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Sale of Flats:
Sale of fl at purchased from other developers is recognized on
execution of transfer deed in favour of the buyer.
Real Estate Development Project:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a signifi
cant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no signifi cant uncertainty exists regarding the amount of
the consideration from sale, which is estimated on collection of at
least 25% of sale consideration.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
(l) Use of Estimates
The preparation of fi nancial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of fi nancial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
(m) Earnings per Share
The basic earnings per share are computed by dividing the net profi t
or loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
Mar 31, 2013
(a) Basis of Preparation
Financial statements are prepared under the historical cost convention
in consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. Company follows accrual basis of accounting
in accordance with the provisions of The companies Act, 1956.
(b) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verifi cation of the assets is
carried out once in three years.
(c) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fi xed assets sold during the year.
(d) Investments
Current investments are valued at the lower of cost and fair value and
long-term investments are stated at cost in accordance with Accounting
Standard - 13 on "Accounting for Investments issued by the Institute
of Chartered Accountants of India. Provision for diminution in the
value of long-term investments is made only if such a decline is other
than temporary.
(e) Inventories
Inventory of Land and Building and trading goods is valued at lower of
cost and net realizable value. Cost of Land and Building includes
acquisition cost of land and cost of super structure built thereupon.
Cost of trading goods includes acquisition cost, taxes, duties and
freight. Cost is computed on FIFO basis of costing.
(f) Preliminary Expenses and Share Issue Expenses
Preliminary expenses and Share issue expenses are to be written off in
ten years in equal installment from the year in which commercial
production commences.
(g) Retirement Benefi ts Gratuity
Provision of Gratuity is created for employees who have completed
continuous fi ve years'' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the fi nancial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company''s contribution to provident fund is charged to profi t and loss
account.
(h) Impairment of Assets
If the carrying amount of fi xed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash fl ow.
(i) Accounting for Taxes on Income
Provision for current Income tax is made after taking in to
consideration the benefi ts admissible under the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
suffi cient future taxable income available to realize such losses.
(j) Foreign Currency Transactions Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying the exchange rate between the reporting currency and the
foreign currency to the foreign currency amount at the date of the
transaction.
Conversion
Foreign currency monetary items are reported using the closing rate.
Gains and losses, if any, at the year-end in respect of monetary assets
and monetary liabilities not covered by the forward contracts are
recognized in the profi t and loss account.
Exchange Difference
Exchange difference arising on the settlement of monetary items at rate
different from those at which they were initially recorded during the
year, are recognized as income or as expense in the year in which they
arise.
(k) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefi ts will fl ow to the company and the revenue can be
reliably measured.
Sale of Goods:
Sales are recognized net of sales tax charged, and rebates/discounts
allowed to customers.
Sale of Services:
Revenue from services is recognized on completion of services.
Interest:
Interest on fi xed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Sale of Flats:
Sale of fl at purchased from other developers is recognized on
execution of transfer deed in favour of the buyer.
Real Estate Development Project:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion MethodÂ
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a signifi
cant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no signifi cant uncertainty exists regarding the amount of
the consideration from sale, which is estimated on collection of at
least 25% of sale consideration.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
(l) Use of Estimates
The preparation of fi nancial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of fi nancial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
(m) Earnings per Share
The basic earnings per share are computed by dividing the net profi t
or loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
Mar 31, 2012
(a) Basis of Preparation
Financial statements are prepared under the historical cost convention
in consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. Company follows accrual basis of accounting
in accordance with the provisions of The companies Act, 1956.
(b) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verification of the assets is
carried out once in three years.
(c) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fixed assets sold during the year.
(d) Investments
Current investments are valued at the lower of cost and fair value and
long-term investments are stated at cost in accordance with Accounting
Standard - 13 on "Accounting for Investments" issued by the
Institute of Chartered Accountants of India. Provision for diminution
in the value of long-term investments is made only if such a decline is
other than temporary.
(e) Inventories
Inventory of Land and Building and trading goods is valued at lower of
cost and net realizable value. Cost of Land and Building includes
acquisition cost of land and cost of super structure built thereupon.
Cost of trading goods includes acquisition cost, taxes, duties and
freight. Cost is computed on FIFO basis of costing.
(f) Preliminary Expenses and Share Issue Expenses
Preliminary expenses and Share issue expenses are to be written off in
ten years in equal installment from the year in which commercial
production commences.
(g) Retirement Benefits Gratuity
Provision of Gratuity is created for employees who have completed
continuous five years' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company's contribution to provident fund is charged to profit and loss
account.
(h) Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash flow.
(i) Accounting for Taxes on Income
Provision for current Income tax is made after taking in to
consideration the benefits admissible under the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
sufficient future taxable income available to realize such losses.
(j) Foreign Currency Transactions
Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying the exchange rate between the reporting currency and the
foreign currency to the foreign currency amount at the date of the
transaction.
Conversion
Foreign currency monetary items are reported using the closing rate.
Gains and losses, if any, at the year-end in respect of monetary assets
and monetary liabilities not covered by the forward contracts are
recognized in the profit and loss account.
Exchange Difference
Exchange difference arising on the settlement of monetary items at rate
different from those at which they were initially recorded during the
year, are recognized as income or as expense in the year in which they
arise.
(k) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Sale of Goods:
Sales are recognized net of sales tax charged, and rebates/discounts
allowed to customers.
Sale of Services:
Revenue from services is recognized on completion of services.
Interest:
Interest on fixed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Sale of Flats:
Sale of flat purchased from other developers is recognized on execution
of transfer deed in favour of the buyer.
Real Estate Development Project:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current estimates of contract revenue
and contract costs
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale, which is estimated on collection of at least
25% of sale consideration.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
(l) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
(m) Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
Mar 31, 2011
1. NATURE OF OPERATION
RTCL Limited (The "Company") is mainly engaged in Real Estate including
renting activities.
2. SIGNIFICANT ACCOUNTING POLICIES AND NOTES ON ACCOUNTS A.
SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Preparation
Financial statements are prepared under the historical cost convention
in consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act, 1956. Company follows accrual basis of accounting
in accordance with the provisions of The companies Act, 1956.
(b) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verification of the assets is
carried out once in three years.
(c) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fixed assets sold during the year.
(d) Investments
Current investments are valued at the lower of cost and fair value and
long- term investments are stated at cost in accordance with
Accounting Standard - 13 on "Accounting for Investments" issued by the
Institute of Chartered Accountants of India. Provision for diminution
in the value of long-term investments is made only if such a decline is
other than temporary.
(e) Inventories
Inventory of Land and Building and trading goods is valued at lower of
cost and net realizable value. Cost of Land and Building includes
acquisition cost of land and cost of super structure built thereupon.
Cost of trading goods includes acquisition cost, taxes, duties and
freight. Cost is computed on FIFO basis of costing.
(f) Preliminary Expenses and Share Issue Expenses
Preliminary expenses and Share issue expenses are to be written off in
ten years in equal installment from the year in which commercial
production commences.
(g) Retirement Benefits
Gratuity
Provision of Gratuity is created for employees who have completed
continuous five years' of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Company's contribution to provident fund is charged to profit and loss
account.
(h) Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cash flow.
(i) Accounting for Taxes on Income
Provision for current Income tax is made after taking in to
consideration the benefits admissible under the provisions of the
Income Tax Act, 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognized if there is virtual certainty that there will be
sufficient future taxable income available to realize such losses.
(j) Foreign Currency Transactions
Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying the exchange rate between the report- ing currency and the
foreign currency to the foreign currency amount at the date of the
transaction.
Conversion
Foreign currency monetary items are reported using the closing rate.
Gains and losses, if any, at the year-end in respect of monetary assets
and monetary liabilities not covered by the forward contracts are
recognized in the profit and loss account.
Exchange Difference
Exchange difference arising on the settlement of monetary items at rate
different from those at which they were initially recorded during the
year, are recognized as income or as expense in the year in which they
arise.
(k) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Sale of Goods:
Sales are recognized net of sales tax charged, and rebates/discounts
allowed to customers.
Sale of Services:
Revenue from services is recognized on completion of services.
Interest:
Interest on fixed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established.
Sale of Flats:
Sale of flat purchased from other developers is recognized on execution
of transfer deed in favour of the buyer.
Real Estate Development Project'
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(ii) The percentage completion method is applied on a cumulative basis
in each accounting period to the current esti- mates of contract
revenue and contract costs
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale, which is estimated on collection of at least
25% of sale consideration.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
(l) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
(m) Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity shareholders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
Mar 31, 2010
(a) Basis of Preparation
Financial statements are prepared under the historical cost convention
In consonance and accordance with applicable accounting standards,
accepted accounting principles and relevant presentational requirements
of The Companies Act 1956. Company follows accrual basis of accounting
in accordance with the provisions of The companies Act, 1956.
(b) Fixed Assets
Fixed assets are recorded at cost. Cost comprises the purchase price
and any attributable cost of bringing the asset to its working
condition for its intended use. Physical verification of the assets is
carried out once in three years.
(c) Depreciation
Depreciation on Fixed Assets has been provided on written down method
at rates and method as per Income-tax Rules, 1962. No depreciation is
charged on fixed assets sold during the year.
(d) Investments
Current investments are valued at the lower of cost and fair value and
long-term investments are stated at cost in accordance with Accounting
Standard - 13 on "Accounting for Investments" issued by the Institute
of Chartered Accountants of India. Provision for diminution In the
value of long-term investments is made only If such a decline is other
than temporary.
(e) Inventories
Inventory of Land and Building and trading goods is valued at lower of
cost and net realizable value. Cost of Land and Building includes
acquisition cost of land and cost of super structure built thereupon.
Cost of trading goods includes acquisition cost, taxes, duties and
freight. Cost is computed on FIFO basis of costing.
(f) Preliminary Expenses and Share Issue Expenses
Preliminary expenses and Share issue expenses are to be written off in
ten years in equal installment from the year in which commercial
production commences.
(g) Retirement Benefits
Gratuity
Provision of Gratuity is created for employees who have completed
continuous five years of services at the rate of 15 days salary for
every completed year of service based on the salary drawn during the
last month of the financial year.
Leave Encashment
Unused leave are paid to the employees at the end of year and are not
accumulated.
Provident Fund
Companys contribution to provident fund Is charged to profit and loss
account
(h) Impairment of Assets
If the carrying amount of fixed assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount The recoverable amount is measured as the higher of
the net selling price and the value in use determined by the present
value of estimated future cashflow.
(i) Accounting for Taxes on Income
Provision for current Income tax is made after taking in to
consideration the benefits admissible under the provisions of the
Income Tax Act 1961.
Deferred tax is recognized, on timing differences, being the difference
between taxable and accounting income that originates in one period and
are capable of reversal in one or more subsequent periods. Deferred tax
assets in respect of unabsorbed depreciation and rjarry forward of
losses are recognized if there is virtual certainty that there will be
suf- ficient future taxable income available to realize such losses.
(j) Foreign Currency Transactions
Initial Recognition
Foreign cunency transactions are recorded in the reporting currency, by
applying the exchange rate between the report- ing currency and the
foreign currency to the foreign currency amount at the date of the
transaction.
Conversion
Foreign currency monetary items are reported using the closing rate.
Gains and losses, if any, at the year-end in respect of monetary assets
and monetary liabilities not covered by the forward contracts are
recognized in the profit and loss account
Exchange Difference
Exchange difference arising on the settlement of monetary items at rate
different from those at which they were initially recorded during the
year are recognized as income or as expense in the year in which they
arise.
(k) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Sale of Goods:
Sales are recognized net of sales tax charged, and rebates/discounts
allowed to customers.
Sale of Services:
Revenue from services is recognized on completion of services.
Interest:
Interest on fixed deposits is recognized on accrual basis on a time
proportion basis taking in to account the amount outstanding and the
rate applicable.
Dividend:
Revenue is recognized when the right to receive the income is
established. Sale of Flats Sale of flat purchased from other
developers is recognized on execution of transfer deed in favour of the
buyer.
Real Estate Development Project:
Revenue from each Real Estate Development Project is recognized:
(i) On the basis of "Percentage Completion Method"
(iii) When the stage of completion of each project reaches a
significant level, which is estimated to be at least 25% of the total
estimated cost of project
(iv) When no significant uncertainty exists regarding the amount of the
consideration from sale: which is estimated on collection of at least
25% of sale consideration.
Rent:
Revenue is recognized on an accrual basis in accordance with the terms
of the relevant agreement.
v. Use of Estimates
The preparation of financiaI statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known/materialized.
(J) Earnings per Share
The basic earnings per share are computed by dividing the net profit or
loss attributable the equity share holders for the period by the
weighted average number of equity shares outstanding during the
reporting period. The number of shares used in computing diluted
earning per share comprises the weighted average number of shares
considered for deriving basic earning per share and also the weighted
average number of equity shares, which may be issued on the conversion
of all dilutive potential shares, unless the results would be anti
dilutive.
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