NOTE -1 NOTES FORMING PART OF ACCOUNTS 1. Major Accounting Policies:- a) Recognisation of income expenditure The company is in the business of real estate development. Real estate income is recognized as revenue on the completion of sale of property. Other income and cost/expenditure are generally accounted on accrual as they are earned or incurred. b) Debrciation as per Companies Act, 2013 With the introduction of Companies Act, 2013, there has been change in the method of accounting of debrciation from Written Down Value to Systematic allocation of assets' value over its useful life (SLM), with effect from 1.4.2014. Consequently the debrciation of the year ended 31.3.2015 is higher by Rs.4,21,143/-. c) Valuation of Inventories: Property held as stock in trade is valued at cost or market whichever is lower. Work-in-progress is valued at cost of property plus all direct expenditure pertaining to project. Finished goods stock is valued at cost or realizable value whichever is lower. d) Fixed Assets Fixed assets are stated at cost less debrciation. e) Investment Non Current investments are stated at cost or book value. Permanent diminution in value of each investment is being provided after taking into consideration value of each investment individually. Current investment are valued at cost or market value whichever is lower. f) Accounting Policy regarding Retirement Benefits 1) Gratuity and Leave encashment is provided in the basis of valuation made by an Actuary 2) Superannuation Fund is contributed into Fund with LIC. g) Taxation i) Current Tax Provision for Current Tax is made based on the liability computed in accordance with the relevant tax rates and provisions of Income Tax Act, 1961. ii) Deferred Taxes Deferred Tax is accounted for by computing the tax effect of timing differences which arise during the year and reverse in subsequent periods. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized. 2. Segment Reporting : The Company is in the business of real estate development. In view of the above the company has only once identified reportable segment. 3. Unpaid/unclaimed dividend for the financial year ended 31,3,2007 transferred to Investor education and protection fund. 4. A debt recoverable from a party, aggregating to Rs 1,70,00,000/- as on 31.03.2015, whose recovery has been outstanding since over five years, has been shown as good and fully recoverable in the financial statements. A case has been filed by the Company against the party, under section 138 of the "Negotiable Instruments Act with the Additional Metropolitan Magistrate Court, Mumbai. Rs 20,00,000 has been recovered from the party during the financial year. The management is fully confident of the recovery of the outstanding amount. 5. There are no capital and other commitments as at 31.3.2015. 6. There are no Contingent Liabilities as at 31.3.2015. 7. There are no dues to suppliers covered under Micro Small and Medium Enterprises Development Act, 2006. 8. Previous year's figures are regrouped where necessary. As per our report annexed herewith. For Sorab S.Engineer & Co. Chartered Accountants Firm Registration Number 110417W CA. M.P.Antia Partner (Membership No.7825) For The Victoria Mills Ltd. Aditya Mangaldas Chairman & Managing Director (DIN No.00032233) Sd/-A.S.Bengali Chief Financial Officer Puneet Motwani Company Secretary Directors 1. D.K.Contractor (DIN No. 00145219) 2. S.G.Vaidya (DIN No. 00220956) 3. Matnta Mangaldas (DIN No.00021078) Place: Mumbai Date: 22nd May 2015 |