NOTES ON FINANCIAL STATEMENTS NOTE No. 1. ACCOUNTING POLICIES Basis of Preparation of Financial Statement a) The Financial Statements have been brpared under historical cost convention in accordance with the generally accepted accounting principles and the Companies Act, 2013 as adopted consistently by the company. b) The company generally follows mercantile systems of accounting and recognizes significant items of income and expenditure on accrual basis. 2. Fixed Assets and Debrciation a) Fixed Assets are stated at cost of acquisition minus the accumulated debrciation. Direct costs are capitalized till the assets are ready to be put to use. b) Debrciation on Fixed Assets is provided on straight line method at the rates and in the manner brscribed in Schedule II to the Companies Act, 2013. 3. Investments Current investments are carried at lower of cost or quoted/ fair value computed on an individual investment basis.Long Term Investments are carried at cost. Diminution in value if any, which is not of temporary nature, is provided. 4. Inventories Inventory comprises property for sale and the property under construction / development (work in progress). Inventories are valued at cost except for finished goods. Finished goods are valued at cost or market value whichever is lower. Completed real estate projects for sale is valued at lower of cost and net realizable value. Cost is determined by including cost of land, materials, services and other related overheads. Construction work in progress is valued at cost which comprises of land materials, services and other related overheads. 5. Revenue Recognition Revenue from Group Housing project is recognized on the basis of the percentage of completion method, revenue is recognized to sale/booked area only on the basis of percentage of cumulative actual cost incurred thereon including cost of land as against the total estimated cost of the project under execution subject to such cumulative actual cost being 25% or more of the total estimated cost. The estimates of the saleable area, sale prices and future cost are revised periodically by the management. The effect of such change to estimate are recognized in the period in which such estimates are determined. In case of cancellation of booking of any flat, the revenue and cost are recognized earlier in respect of such flat is reversed in the year in which such cancellation taken place. 6. Use of Estimates The brparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of Financial Statements and the results of operation during the reporting period end.Although these estimates are based upon management's best knowledge of current event and actions, actual results could differ from these estimates. 7. Income Tax Provision is made for Income Tax on yearly basis, under the tax payable method based on tax liability as Computed after taking credit for the allowances. In case of matters under appeal, due to disallowance or otherwise full provision is made when the said liabilities are accepted. 8. Retirement Benefit to employee Company's contribution to Provident Fund is charged to Profit and Loss Account. Liability of Gratuity & Leave Encashment is accounted for on the basis of actual liability determined by the management on the date of Balance Sheet. 1. Based on the information available with the Company there are no dues payable to suppliers under the Micro Small and Medium Enterprises Development Act, 2006. 2. The figures of the brvious year have been regrouped/rearranged wherever necessary. |