Accounting Policies of Bhanot Construction & Housing Ltd. Company

Mar 31, 2014

(a) Basis of accounting and preparation of financial statements:- ,

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

(b) Use of estimates:-

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

(c ) Inventories:-

Work in progress is valued at cost Finished goods, Stores & Spares parts are valued at the lower of cost or net realisable value. Cost of Inventory is ascertained in the weighted average cost method. Trading inventories are valued at cost or market value whichever is lower. Cost includes cost of purchase, cost of construction & other related cost to bring the flats in their present location & condition. Stock other than trading (i.e. fixed assets converted into stock) are taken at FMV as per valuation report.

(dl Cash and cash equivalents (for purposes of Cash Row Statements- Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax Is adjusted for the effects''of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available] information.

(e) Depredation and amortisation- Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act 1956.

Depredation on addition/ disposals during the year is provided for on pro-rata basis and charged to the Profit & Loss account

The amortization period and the amortization method are reviewed at least at each financial year end. If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of ecoromicbertefits from the asseV the anrcxtizati^ is changed to reflect the changed pattern. Such''changes are accounted for in accordance with AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies.

(f) Revenue recognition:-''

Sale of goods:-

Sales are recognised, net of returns and bade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales are net of return and exclude sales tax and value added tax.

Income from Constructton/Ovil Contract- Revenues from construction contracts is recognized on "Percentage on Completion Method*.Price escalation claims and additional claims including those under arbitration are recognized as revenue when they are realized or receipts therefore are mutually settled or reasonable ascertained. Revenues from maintenance contracts are recognised pro-rata over the period of the contract.

Other income:-

Dividend income is accounted for when the right to receive it is established-Interest income and any other income is recognised on accrual basis

(g) Tangible fixed assets:-

Rxed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any bade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined either for the assets acquired or asset given up, whichever is more dearly evident Fixed assets acquired in exchange for securities of the Company are recorded at the fair market value of the assets or the fair market value of the securities issued, whichever is more dearly evident Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital work-in-progress:-

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

(h) Investments:-

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more dearly evident Current investments are carried in the financial statements at lower of cost and fair value determined on an 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 in the value of the investments.

On disposal of an investment the difference between its carrying amount and net disposal proceeds Is charged or credited to the statement of profit and loss.

f) Borrowing eosts:-

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset All other borrowing costs are expensed in the period they occur.

CD Segment reporUng:-

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deddina how to allocate resources and in assessina oerformance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities rave been identified to segrnents on the basis of their relationship to the operating activities of the segment Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

(k) Earnings per share:-

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares Outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the. purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(I) Taxes on Income:- .

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity is recognized In equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the eariler years. Deferred tax Is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting o^te. Defen-ed Incxxne tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss. Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable Income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorped depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported bv convindna evidence that thev can be realized aoainst future taxable orofits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write- down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and. deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority. ->

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company wiH pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act 1961, the said asset is created by way of (m) ProVisions:-

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. (n) Contingent Uability:-

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle die obligation. A contingent liability also arises in extremely rare cases where tiiere is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability.

(o) Service tax input credit:-

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

1.2 Presentation and disclosure of financial statements

During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

1.3 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.4 Inventories

Work in progress is valued at cost. Finished goods, Stores & Spares parts are valued at the lower of cost or net realisable value. Cost of inventory is ascertained in the weighted average cost method. Trading inventories are valued at cost or market value whichever is lower. Cost includes cost of purchase, cost of construction & other related cost to bring the flats in their present location & condition.

1.5 Cash and cash equivalents (for purposes of bash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are shore balances (with an original maturity of three months or less from the date of acquisition), highly investments that are readily convertible into known amounts of cash and which are subject to insignias risk of changes in value.

1.6 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary i and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accrue past or future cash receipts or payments. The cash flows from operating, investing and financing acts' of the Company are segregated based on the available information.

1.7 Depreciation and amortisation

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule to the Companies Act, 1956.

Depreciation on addition/ disposals during the year is provided for on pro-rata basis and charged to Profit & Loss account.

Intangible assets are amortized on a straight line basis over the estimated useful economic life. ' company uses a rebuttable presumption that the useful life of an intangible asset will not exceed years from the date when the asset is available for use. If the persuasive evidence exists to the aft that useful life of an intangible asset exceeds ten years, the company amortizes the intangible as over the best estimate of its useful life. Such intangible assets and intangible assets not yet available use are tested for impairment annually, either individually or at the cash-generating unit level. All oil intangible assets are assessed for impairment whenever there is an indication that the intangible as may be impaired.

The amortization period and the amortization method are reviewed at least at each financial year e If the expected useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly. If there has been a significant change in the expected pattern of economy benefits from the asset, the amortization method is changed to reflect the changed pattern. Such chance are accounted for in accordance with AS 5 Net Profit or Loss for the Period, Prior Period Items e Changes in Accounting Policies.

1.8 Revenue recognition Sale of goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales are of return and exclude sales tax and value added tax.

Income from Construction/Civil Contract

Revenues from construction contracts is recognized on Percentage on Completion Method.Pr escalation claims and additional claims including those under arbitration are recognized as revenue when they are realized or receipts therefore are mutually settled or reasonable ascertained. Revenues from maintenance contracts are recognised pro-rata over the period of the contract,

1.9 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established. .

1.10 Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are changed to the statement of profit and loss for the period during which such expenses are incurred.

Fixed assets acquired in full or part exchange for another asset are recorded at the fair market value or the net book value of the asset given up, adjusted for any balancing cash consideration. Fair market value is determined either for the assets acquired or asset given up, whichever is more clearly evident. Fixed assets acquired in exchange for securities of the Company are recorded at the fair market value of the assets or the fair market value of the securities issued, whichever is more clearly evident.

Fixed assets retired from active use and held for sale are stated at the lower of their net book value and net realisable value and are disclosed separately in the Balance Sheet.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

1.11 Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the invest acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value deuterium an individual investment basis. Long-term investments are carried at cost. However, proviso diminution in value is made to recognize a decline other than temporary in the value of the investors

On disposal of investment, the difference between its carrying amount and net disposal proceeds is charged or ere to the statement of profit and loss.

1.12 Employee benefits

The provision of E.P.F Act, 1952 and Gratuity Act, 1972 is not applicable to the Company as the employees is less than the statutory minimum. Moreover no employee is in service for more their years for eligibility under Gratuity Act, 1972.

1.13 Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset necessarily takes a substantial period of time to get ready for its intended use or sale are capitalize part of the cost of the respective asset. All other borrowing costs are expensed in the period they.

1.14 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and re and the internal organization and management structure. The operating segments are the segment which separate financial information is available and for which operating profit/loss amounts are avail regularly by the executive Management in deciding how to allocate resources and in asses performance.

The accounting policies adopted for segment reporting are in line with the accounting policies o Company. Segment revenue, segment expenses, segment assets and segment liabilities have I identified to segments on the basis of their relationship to the operating activities of the segment. I segment revenue is accounted on the basis of transactions which are primarily determined base market / fair value factors.

1.15 Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable equity shareholders (after deducting preference dividends and attributable taxes) by the weighted ave number of equity shares outstanding during the period. Partly paid equity shares are treated fraction of an equity share to the extent that they are entitled to participate in dividends relative to a paid equity share during the reporting period. The weighted average number of equity shares outstare during the period is adjusted for events such as bonus issue, bonus element in a rights issue, s split, and reverse share split (consolidation of shares) that have changed the number of equity outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.16 Taxes on income

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized directly in equity Is recognized in equity and not in the statement of profit and loss.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred income tax relating to items recognized directly in equity is recognized in equity and not in the statement of profit and loss.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes- down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current The company recognizes MAT credit available as an asset only to the extent that there is convert evidence that the company will pay normal income tax during the specified period, i.e., the period which MAT credit is allowed to be carried forward. In the year in which the company recognizes credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of cried the statement of profit and loss and shown as "MAT Credit Entitlement." The company review; "MAT credit entitlement asset at each reporting date and writes down the asset to the extent the com does not have convincing evidence that it will pay normal tax during the specified period.

1.17 Provisions

A provision is recognized when the company has a present obligation as a result of past event, probable that an outflow of resources embodying economic benefits will be required to settle the oblige and a reliable estimate can be made of the amount of the obligation. Provisions are not discount their present value and are determined based on the best estimate required to settle the obligation the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect current best estimates.

Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confide by the occurrence or non-occurrence of one or more uncertain future events beyond the control c company or a present obligation that is not recognized because it is not probable that an outfit resources will be required to settle the obligation. A contingent liability also arises in extremely cases where there is a liability that cannot be recognized because it cannot be measured reliably company does not recognize a contingent liability but discloses its existence in the financial statement.

1.18 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying se received is accounted and when there is no uncertainty in availing / utilizing the credits.

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Mar 31, 2011

1. Basis of Accounting

The financial statements are prepared under historical cost convention on accrual basis of accounting and on a going concern basis.

2. Use of Estimates

The preparation of the financial statements in conformity with generally accepted accounting principles requires making of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognised in the year in which the results are known / materialise.

3. Construction/ Civil Contract

In respect of construction contracts revenue is recognized on "Percentage of Completion Method Price escalation claims and additional claims including those under arbitration are recognized as revenue when they are realized or receipts thereof are mutually settled or reasonable ascertained.

4. Revenue Recognition

4.1 Revenue from sale of goods is recognized when all significant risks and rewards of ownership are transferred to the buyer (usually at the point of dispatch to customers). Sales are net of return and exclusive of value added tax.

4.2 Other Incomes are accounted for on accrual basis except where the receipt of income is uncertain.

5. Fixed Assets

5.1 Fixed Assets are stated at cost of acquisition or construction accumulated depreciation. The cost comprises on purchase price & other attributable cost of bringing the asset to its working condition for the intended use. Fixed Assets comprises of ERP & other computer software, which form part of computers. Expenditure on repair & maintenance is charged to the profit & loss account.

6. Depreciation

6.1 Depreciation has been charged at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 on Straight Line method.

6.2 Depreciation on addition/disposals during the year is provided for on pro-rata basis and charged to Profit & Loss account.

7. 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 recognised as expenses in the year in which they are incurred

8. Investments

Investments are classified into long-term investments and current investments. Long-term investments are stated at cost. Provision for diminution in the value of a long-term investment is made on individual investment basis if such diminution is other than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

9. Inventories

Work in progress is valued at cost. Finished goods, stores & Spares parts are valued at lower of cost or net realizable value. Cost of inventory is ascertained on the wet average cost method. Trading inventories are valued at cost or market value whichever is lower. Cost includes cost of purchase, cost of construction & other related cost to bring the flats in their present location & Condition.

10. Employee Benefits

As no employee in service for more than five years the provisions of Gratuity Act, 1972 not applicable to the company.

11. Taxes on Income

Current Tax

Current Tax is amount of tax payable on taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax .

Deferred In reding from "timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax assets subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

12. Preliminary Expenses

Preliminary Expenses are amortised as per the Provisions of Section 35D of the Income Tax Act, 1961 over the five years from the year of their incurrence.

13. Amalgamation Expenses

Amalgamation Expenses are amodised as per the provisions of, section 35DD of the Income Tax Act, 1961 over five years from the year of their incurrence.

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Mar 31, 2010

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant requirements of the Companies Act, 1956. Significant accounting policies applied in preparing and presenting these financial statements are set out below;

1. Basis of Accounting

the financial statements are prepared under historical cost convention on accrual basis of accounting and on a going concern basis.

2. Use of Estimates

The Preparation of financial statements in conformity with generally accepted accounting principles requires making of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting year. Differences between the actual results and estimates are recognised in the year in which the results are known /materialised.

3. Construction/Civil Contract

In respect of construction contracts revenue is recognized on "Percentage of Completion Method. Price escalation claims and additional claims including those under arbitration are recognized as revenue when they are realized or receipts thereof are mutually settled or reasonable ascertained.

4. Revenue Recognition

4.1 Revenue from sale of goods is recognized when all significant risks and rewards of ownership are transferred to the buyer (usually at the point of dispatch to customers). Sales are net of return and exclusive of value added tax.

4.2 Other Incomes are accounted for on accrual basis except where the receipt of income is uncertain.

5. Fixed Assets

5.1 Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. The cost comprises on purchase price & other attributable cost of bringing the asset to its working condition for the intended use. Fixed Assets comprises of ERP & other computer software, which form part of computers. Expenditure on repair & maintenance is charged to the profit & loss account.

6. Depreciation

6.1 Depreciation has been charged at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 on Straight Line method.

6.2 Depreciation on addition/disposals during the year is provided for on pro-rata basis and charged to Profit & Loss account.

7. 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 recognised as expenses in the year in which they are incurred

8. Investments

Investments are classified into long-term investments and current investments. Long-term investments are stated at cost. Provision for diminution in the value of a long-term investment is made on individual investment basis if such diminution is other than temporary. Current investments are carried at the lower of cost and fair value and provisions are made to recognize the decline in the carrying value.

9. Inventories

Work in progress is valued at cost. Finished goods .stores & spares parts are valued at lower of cost or net realizable value. Cost of inventory is ascertained on the wgt average cost method. Trading inventories are valued at cost or market value whichever is lower. Cost includes cost of purchase, cost of construction & other related cost to bring the flats in their present location & condition.

10. Employee Benefits

As no employee in service for more then five years the provisions of Gratuity Act, 1972 not applicable to the company.

11. Taxes on Income

Current Tax

Current tax is amount of tax payable on taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 196.

Deferred Tax

Deferred tax resulting from "timing difference between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax assets subject to consideration of prudence, are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

12. Preliminary Expenses

Preliminary Expenses are amortised as per the provisions of section 35D of the Income Tax Act, 1961 over the five years from the year of their incurrence.

13. Amalgamation Expenses

Amalgamation Expenses are amortised as per the provisions of section 35DD of the Income Tax Act. 1961 over the five years from the year of their incurrence.

14. Amalgamation

During the year under review, in pursuance of a resolution passed by the Members of the Company at the court-convened General meeting held on 25th April 2009. The Company filed a petition before the Hon''ble high court, New Delhi and the Hon''ble High Court order dated 09th October, 2009 was filled with the Registrar of Companies, NCT of Delhi and Haiyana, New Delhi on 31.t0.2009 which is the effective date on which the Transferor Companies have been dissolved without winding up.

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Jun 30, 2009

(a) Basis of preparation of Financial Statements

The financial statements are prepared under historical cost convention in accordance with applicable accounting standards and requirements of Companies Act, 1956 and the Accounting Principles Generally Accepted in India ('Indian GAAPs') and comply with the Accounting Standard issued by the Institute of Chartered Accountant of India ('ICAI') to the extent applicable..

(b) Fixed Assets

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises of purchase price and any other directly attributable cost of bringing the assets to its working condition for the intended use. Fixed assets comprise of ERP and other computer software's which form part of computers. Expenditure on repair & maintenance is charged to the Profit & Loss Account.

(c) Depreciation

The fixed assets of the transferor companies were revalued on 31.12.2008 for the purpose of swap ratio of shares of the transferee Company, taken on the same value and the other assets are taken on the book value in the balance sheet of the Company. The depreciation on fixed assets is provided on the basis of Straight Line Method in the manner and rates prescribed in Schedule XIV to the Companies Act, 1956.

(d) Investments

Long-term investments are stated at cost. Provision for diminution, if any, in the value of each long term investment is made to recognise a decline, other than of a temporary nature.

Current investments are stated at lower of cost or market value.

(e) Borrowing Costs

Borrowing costs that are directly attributable to the construction or acquisition of a qualifying asset, are considered as part of the cost of the asset. All other borrowing costs are treated as period cost and charged to the Profit and Loss Account in the year in which incurred.

(f) inventories

Inventories of flats are valued at lower of cost or net realizable value. Cost includes cost of purchase, cost of construction and other related costs to bring the flats in their present location & condition.

(g) Construction / Civil Contracts

Income from construction / civil contracts is recognised on the basis of 'percentage of completion' method of accounting with reference to the stage of completion of the contract activity as certified by the client. Revenue on account of contract variation, claims and incentives are recognised upon determination or settlement of the contract.

(h) Revenue Recognition

Revenue from sale of constructed and trading inventory is recognised upon passage of title to the customer. Interest on deposits with the Bank, Government authorities or other receivables is accounted for on accrual basis.

(i) Accounting for Taxes on income

Provision for current year's tax is made based on the tax payable under the Income Tax Act, 1961. Deferred tax on timing differences between taxable and accounting incomes is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets on unabsorbed tax losses and unabsorbed depreciation are recognised only when there is a virtual certainty, supported by convincing evidence of their realization. Other items are recognized only when there is a reasonable certainty of their realization.

(j) Retirement Benefits

Contributions payable by the Company to the concerned government authorities in respect of provident fund, are charged to the Profit and Loss Account. The Company follows the payments of Gratuity Act, 1972 for the payment of gratuity. The expense is accounted for on the payment basis. Dues for leave encashment in respect of un availed leaves are accounted for in the year of encashment.

During the year Provident fund Department has raised demand of Rs. 1,84,613/- for the period 2001-02 to 2008-09 and the same has been debited to P & L A/c.

(k) Preliminary Expenses

Preliminary Expenses are amortised as per the provisions of section 35D of the Income Tax Act, 1961 over the five years from the year of their incurrence.

(I) Income Tax

I ncome Tax is provided for on the basis of the Profits and the estimated taxable income for the, accounting year and by reference to the rates in force at that time.

(m) Amalgamation

During the year under review, in pursuance of a resolution passed at the court-convened General meeting of the Company held on 25th April, 2009, The company filled a petition before the Hon'ble high court Judicature at New Delhi under section 391-394 of the Companies Act, 1956. The Hon'ble high court order dated 09th October, 2009 was filled with the Registrar of Companies, NCT of Delhi and Haryana, New Delhi on 31.10.2009. The particulars of Such petition are given in Note 1.

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Mar 31, 2008

(a) BASIS OF ACCOUNTING

The accounts of the company are prepared under the mercantile system of Accounting.

(b) REVENUE RECOGNITION

Revenue from sale of constructed and trading inventory is recognized upon passage of title to the customers. Interest on deposits with the Bank, Government authorities or other receivables is accounted for on accrual basis.

(c) FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation. The cost of assets comprises purchase price and any directly attributable cost of bringing the assets to its condition for intended use. Expenditure on repair & maintenance is charged to the profit & loss account.

(d) DEPRECIATION

Depreciation has been provided on straight line method calculated at the rate specified in Schedule XIV of the Companies (Amendment) Act 1988. There has been no change from the method adopted from that of last year.

(e) INVENTORY

Inventory and work in progress are stated at lower of cost or market value.

(f) GRATUITY

The Company follows, "The payments of Gratuity Act, 1972" for the payment of gratuity. The expense is accounted for on the payment basis.

(g) INCOME TAX

Income Tax is provided for on the basis of the Profits and the estimated taxable income for the, accounting year and by reference to the rates in force at that time.