Accounting Policies of Hindustan Housing Company Ltd. Company

Mar 31, 2024

Ind AS 1 was amended vide notification no. GSR 242(E) dated 31^st March 2023 to require disclosure
of material accounting policy information from accounting periods beginning on or after 1^st April
2023 instead of significant accounting policy disclosure by amending para 117, inserting para 117A
to 117E and deleting para 118 to 121. Para 117 of Ind AS states when an information on accounting
policy is considered as material accounting policies information as follows:

Accounting policy information is material if, when considered together with other information
included in an entity''s financial statements, it can reasonably be expected to influence decisions that
the primary users of general-purpose financial statements make on the basis of those financial
statements.

Each of the policies disclosed herein below has been tested to determine whether the information
disclosed is Material Accounting Policy information.

(a) Property, plant and equipment

All items of property, plant and equipment are stated at cost less depreciation; amortization and
impairment, if any. Historical cost includes expenditure that is directly attributable to bringing the
asset to its working condition capable of operating in the manner intended.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will
flow to the Company and the cost of the item can be measured reliably. The carrying amount of any
component accounted for as a separate asset is derecognized when replaced. The Company
depreciates them separately based on their specific useful lives. All other repairs and maintenance

are charged to the Statement of Profit and Loss during the reporting period in which they are
incurred.

Depreciation methods, estimated useful lives and residual value

Depreciation is provided on Straight Line Method and the useful lives of the assets for computing
depreciation are calculated in accordance with Schedule II to the Act. Depreciation on additions to
assets or on sale/disposal/discarding of assets is calculated pro-rata from the date of such addition
or upto the date of such sale/disposal/discarding as the case may be.

Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual
value. The residual values are not more than 5% of the original cost of the asset. The asset''s residual
values and useful lives are reviewed at regular intervals and adjusted prospectively, if appropriate.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net
disposal proceeds and the carrying amount of the asset) is included in the Statement of Profit and
Loss when the asset is derecognized

The residual values, useful lives and method of depreciation of property plant and equipment are
reviewed at each financial year and adjusted prospectively, if any.

(b) Intangible assets

Computer software

Computer software are stated at cost, less accumulated amortization and impairments, if any. The
Company amortizes computer software using the straight-line method over the period of 6 years.

Gains and losses on derecognition of an intangible asset are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognized in the statement of
profit or loss when the asset is derecognized.

(c) Cash & Cash Equivalents

Cash and Cash Equivalents comprise of cash at banks and on hand. The Company considers all
highly liquid investments with a remaining maturity at the date of purchase are three months or less
and that are readily convertible to known amounts of cash to be cash equivalents and which are
subject to an insignificant risk of changes in value.

(i) Classification

The Company classifies its financial assets in the following measurement categories:

1. Those to be measured subsequently at fair value (either through other comprehensive
income, or through the Statement of Profit and Loss), and

2. Those measured at amortized cost.

The above classification depends on the Company''s business model for managing the financial
assets and the contractual terms of the cash flows.

The Company''s business model for managing financial assets refers to how it manages its financial
assets to generate cash flows. The business model determines whether cash flows will result from
collecting contractual cash flows, selling the financial assets, or both.

(ii) Measurement

For a financial asset to be classified and subsequently measured at amortized cost or FVTOCI
(excluding equity instruments which are measured at fair value through other comprehensive
income(FVTOCI)), it needs to give rise to cash flows that are ''solely payments of principal and
interest (SPPI)'' on the principal amount outstanding. This assessment is referred to as the SPPI test
and is performed at an instrument level. Financial assets with cash flows that are not SPPI are
classified and measured at fair value through profit or loss(FVTPL), irrespective of the business
model.

At initial recognition:

The Company recognizes a financial asset in its financial statements when it becomes party to
contractual provisions of the instrument. All financial assets are recognized initially at fair value,
plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL),
transaction costs that are attributable to the acquisition of the financial assets. However, trade
receivables that do not contain a significant financing component are measure at transaction price.

Subsequent measurement:

Subsequent measurement of financial assets depends on the Company''s business model for
managing the asset and the cash flow characteristics of the asset. The Company classifies its debt
instruments into following categories:

A. Amortized cost:

A ''debt instrument'' is measured at the amortized cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting
contractual cash flows, and

b. Contractual terms of the asset give rise on specified dates to cash flows that are Solely
Payments of Principal and Interest (SPPI) on the principal amount outstanding. After initial
measurement, such financial assets are subsequently measured at amortized cost and

Interest income from these financial assets is included in other income using the Effective
Interest Rate (EIR) method.

B. Fair value through profit and loss (FVTPL):

Financial Assets that do not meet the criteria for amortized cost are measured at fair value
through Profit and Loss e.g. Investments in mutual funds. A gain or loss on a financial asset
that is subsequently measured at FVTPL is recognized in profit or loss and presented net in the
Statement of Profit and Loss within other gains/(losses) in the period in which it arises.

In addition, the Company may elect to designate a debt instrument, which otherwise meets
amortized cost or FVTOCI criteria, as at FVTPL. However, such election is allowed only if
doing so reduces or eliminates a measurement or recognition inconsistency (referred to as
''accounting mismatch''). The Company has designated investments in mutual funds (other than
FMP) as at FVTPL. Debt instruments included within the FVTPL category are measured at fair
value with all changes recognized in the Statement of Profit and Loss.

C. Fair value through Other Comprehensive Income (FVTOCI):

The Company measures its current equity investment i.e. Equity instruments which are held for
trading, if any, at FVTPL and all other equity instruments at FVTOCI. The Company makes
such election on an instrument-by-instrument basis.

Equity instruments included within the FVTOCI category are measured initially as well as at
each reporting date at fair value. Fair value movements are recognized in the other
comprehensive income (OCI).

(iii) Impairment of financial assets

The Company assesses on a forward-looking basis, the expected credit losses associated with its
financial assets carried at amortized cost for e.g, trade receivables and bank balances. The
impairment methodology applied depends on whether there has been a significant increase in credit
risk and if so, assess the need to provide for the same in the Statement of Profit and Loss.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on trade
receivables and all lease receivables.

(iv) Derecognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from
the asset expires or it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset.

(v) Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for financial assets which are equity instruments and
financial liabilities.

The Company applies amortized cost, where it has ability to demonstrate that the underlying
instruments in the portfolio fulfill the solely payments of principal and interest (''SPPI'') test and the
churn in the portfolio is negligible.

(vi) Financial Liability

The Company''s financial liabilities includes Security deposits, trade payable, accrued expenses and
other payables etc.

At Initial recognition and measurement

All financial liabilities at initial recognition are classified as financial liabilities at amortized cost or
financial liabilities at fair value through profit or loss, as appropriate. All financial liabilities
classified at amortized cost are recognized initially at fair value net of directly attributable
transaction costs. Any difference between the proceeds (net of transaction costs) and the fair value at
initial recognition is recognized in the Statement of Profit and Loss or in the Capital Work-In¬
Progress, if another standard permits inclusion of such cost in the carrying amount of an asset over
the period of the borrowings using the Effective interest rate (''EIR'') method.

Subsequent recognition

The subsequent measurement of financial liabilities depends upon the classification as described
below: -

Financial Liabilities classified as Amortized Cost

Financial Liabilities that are not held for trading and are not designated as at FVTPL are measured
at amortized cost at the end of subsequent accounting periods. Amortized cost is calculated by
taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. Interest expense that is not capitalized as part of costs of assets is included as
Finance costs in the Statement of Profit and Loss.

Financial Liabilities classified as Fair value through profit and loss (FVTPL)

Financial liabilities classified as FVTPL includes financial liabilities held for trading and financial
liabilities designated upon initial recognition as FVTPL. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. Financial liabilities
designated upon initial recognition at FVTPL only if the criteria in Ind AS 109 is satisfied.
Derecognition

A financial liability is derecognized when the obligation under the liability is discharged / cancelled
/ expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the de recognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the Statement
of Profit and Loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset the recognized amounts and there is an
intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for the amount by which
the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset''s fair value less cost of disposal and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. For the
purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other
assets or group of assets (cash-generating units). Impairment loss of non-financial assets, if any are
recognised in the Statement of Profit and Loss

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Mar 31, 2015

1.1 Basis of preparation of financial statements :

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis, in accordance with the applicable mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 (Act') read with Rule 7 of the Companies (Accounts) Rule, 2014. As the standards of accounting or any addendum thereto are not yet prescribed by the Central Government in consultation with and recommendation of the National Financial Reporting Authority, the existing accounting standards notified under the Companies Act, 1956 shall continue to apply. As such, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211 (3C) of the Companies Act, 1956, Companies (Accounting Standards) Rules, 2006, (as amended) and other relevant provisions of the Act. The Company is in the business of rendering various administrative and allied services. The Company has considered its operating cycle as 12 months and all assets and liabilities have been classified as current or non-current as per the criteria set out in Schedule III to the Companies Act, 2013

1.2 Use of Estimates :

The preparation of Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures relating to contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Differences between actual results and estimates are recognised in the period in which the results are known.

Changes in the estimates, if material, are reflected in the financial statements in the period in which changes are made and their effects are disclosed in the notes to the financial statements.

1.3 Recognition of Revenue and Expenditure :

a. Income from rendering of services and related expenses are recognised on accrual basis in the year in which the services are rendered.

b. Dividend income is recognised in the year in which the right to receive dividend is established.

1.4. Employee Benefits :

a. Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered;

b. Post employment benefits:

Defined Benefit Plans:

-Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method.

Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss. In the case of gratuity which is funded with the Life Insurance Corporation of India, fair value of the Plan Assets , is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate.

c. Long term compensated absences are provided on the basis of an actuarial valuation, using the Projected Unit Credit Method.

d. Termination Benefits are recognised as an expense in the Statement of Profit and Loss of the year in which they are incurred.

1.5 Fixed Assets and Depreciation:

a. Fixed Assets:

Fixed Assets are carried at cost of acquisition / book value less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the assets to its present location and condition.

b. Depreciation/Amortisation:

i. Depreciation is provided on Straight Line Method, in accordance with Schedule II to the Act. The useful lives of the assets for computing depreciation are as per Schedule II of the Act.

ii. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the day of such addition or upto the day of such sale/disposal as the case may be.

iii. Cost of computer software is amortised over a period of three years.

1.6 Investments:

Investments are classified into Non Current and Current Investments. Non Current Investments are stated at cost of acquisition. Diminution, if any, in the value of Non Current Investments, other than temporary, is provided for each investment individually. Current Investments are stated at lower of cost and market value/ net realisable value.

1.7 Borrowing Costs:

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

1.8 Taxation:

Income-tax expense comprises Current tax and Deferred tax charge or credit.

a) Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Minimum Alternate Tax (MAT) eligible for set off in subsequent years, (as per tax laws) is recognized as an asset by way of credit to the Statement of Profit and Loss only if there is convincing evidence of its realisation. At each balance sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

b) Deferred Tax is recognized on timing difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent period(s). The Deferred Tax Asset and Deferred Tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets arising on account of brought forward losses and unabsorbed depreciation under tax laws are recognised only if there is a virtual certainty of its realisation supported by convincing evidence. Deferred Tax Assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of Deferred Tax Assets is reviewed to reassure realisation.

1.9 Impairment of Assets:

The Company, at each balance sheet date, assesses whether there is any indication that an individual asset or group of assets constituting a Cash Generating Unit (CGU) may be impaired. Provision for impairment loss is recognised where the recoverable amount of an asset or a CGU, is less than its carrying amount. Provisions for impairment losses recognised in earlier years, if any, are further reviewed at each balance sheet date and adjusted for changes in the estimated recoverable amount of asset / CGU.

1.10 Provisions, Contingent Liabilities and Contingent Assets :

Provisions involving a 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 and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.11 Cash Flow Statement:

Cash flows are reported using the Indirect Method, whereby profit/ (loss) before 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

1.12 Cash and Cash Equivalents :

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.13 Earnings Per Share:

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

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Mar 31, 2014

1.1 Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention on the accrual basis of accounting in accordance with the generally accepted accounting principles, the applicable mandatory Accounting Standards prescribed by the Companies (Accounting Standards) Rules, 2006 (as amended), the relevant provisions of the Companies Act, 1956 and the provisions of Companies Act, 2013, to the extent notified.

The Company is in the business of rendering various administrative and allied services. The Company has considered its operating cycle as 12 months and all assets and liabilities have been classified as current or non-current as per the criteria set out in the Revised Schedule VI to the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Differences between actual results and estimates are recognised in the period in which the results are known.

1.3 Recognition of Revenue and Expenditure:

a. Income from rendering of services is recognised in the year in which the services are rendered.

b. All other revenues/incomes and costs/expenditure are generally accounted on accrual, as they are earned or incurred.

c. Dividend income is recognised in the year in which the right to receive dividend is established.

1.4. Employee Benefits:

a. Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered;

b. Post employment benefits:

Defined benefit plans:

-Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method

Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss. In the case of gratuity which is funded with the Life Insurance Corporation of India, fair value of the Plan Assets , is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

-Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate.

c. Long term compensated absences are provided on the basis of an actuarial valuation, using the Projected Unit Credit Method.

d. Termination Benefits are recognised as an expense in the Statement of Profit and Loss of the year in which they are incurred.

1.5 Fixed Assets and Depreciation:

a. Fixed Assets:

Fixed Assets are carried at cost of acquisition / book value less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the assets to its present location and condition.

Fixed assets individually costing Rs.5000/- or less are depreciated fully in the year of Acquisition.

b. Depreciation:

i. Depreciation is provided as per the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956, on Straight Line Method.

ii. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition or upto the month of such sale/disposal as the case may be.

1.6 Investments:

Investments are classified into Long-term and Current Investments. Long Term Investments are stated at cost of acquisition. Diminution, if any, in the value of Long Term Investments, other than temporary, is provided for each investment individually. Current Investments are stated at lower of cost and market value/net realisable value.

1.7 Borrowing Costs:

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

1.8 Taxation:

Income-tax expense comprises Current tax and Deferred tax charge or credit.

a) Provision for current tax is made on the assessable income at the tax rate applicable to the rel evant assessment year. Minimum Alternate Tax (MAT) eligible for set off in subsequent years, (as per tax laws) is recognized as an asset by way of credit to the Statement of Profit and Loss only if there is convincing evidence of its realisation. At each balance sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realisation.

b) Deferred Tax is recognized on timing difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent period(s). The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising on account of brought forward losses and unabsorbed depreciation under tax laws are recognised only if there is a virtual certainty of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.

1.9 Impairment of Assets:

The Company, at each balance sheet date, assesses whether there is any indication that an individual asset or group of assets constituting a Cash Generating Unit (CGU) may be impaired. Provision for impairment loss is recognised where the recoverable amount of an asset or a CGU, is less than its carrying amount. Provisions for impairment losses recognised in earlier years are further reviewed at each balance sheet date and adjusted for changes in the estimated recoverable amount of asset / CGU.

1.10 Provisions Contingent Liabilities and Contingent Assets:

Provisions involving a 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 and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements

1.11 Cash Flow Statement:

Cash flows are reported using the Indirect Method, whereby profit/ (loss) before 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

1.12 Cash and Cash Equivalents:

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.13 Earnings Per Share:

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

2.1 The Company has only one class of shares referred to as equity shares having a par value of Rs. 25/-. Each holder of equity shares is entitled to one vote per share.

2.2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all the preferential amount, in the proportion of the number of equity shares held by each share holders.

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Mar 31, 2013

1.1 Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

The Company is in the business of rendering various administrative and allied services. The Company has considered its operating cycle as 12 months and all assets and liabilities have been classified as current or non-current as per the criteria set out in the Revised Schedule VI to the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known.

1.3 Recognition of Revenue and Expenditure:

a. Income from rendering of services is recognised in the year in which the services are rendered.

b. All other revenues/incomes and costs/expenditure are generally accounted on accrual, as they are earned or incurred.

c. Dividend income is recognised in the year in which the right to receive dividend is established.

1.4. Employee Benefits:

a. Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered;

b. Post employment benefits:

Defined benefit plans:

-Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method

Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss. In the case of gratuity which is funded with the Life Insurance Corporation of India, fair value of the Plan Assets , is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

-Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate.

c. Long term compensated absences are provided on the basis of an actuarial valuation;

d. Termination Benefits are recognised as an expense in the Statement of Profit and Loss of the year in which they are incurred.

1.5 Fixed Assets and Depreciation:

a. Fixed Assets:

Fixed Assets are carried at cost of acquisition less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition.

Fixed assets individually costing Rs. 5000/- or less are depreciated fully in the year of Acquisition.

b. Depreciation:

i. Depreciation is provided as per the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956, on Straight Line Method.

ii. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition or upto the month of such sale/disposal as the case may be.

1.6 Investments:

Investments are classified into Long-term and Current Investments. Long Term Investments are stated at cost of acquisition. Diminution, if any, in the value of Long Term Investments, other than temporary, is provided for each investment individually. Current Investments are stated at lower of cost and market value/ net realisable value.

1.7 Borrowing Costs:

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

1.8 Taxation:

Income-tax expense comprises Current tax and Deferred tax charge or credit.

a) Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

b) Deferred Tax is recognized on timing difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent period(s). The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising on account of brought forward losses and unabsorbed depreciation under tax laws are recognised only if there is a virtual certainty of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.

i .9 Impairment of Assets:

The Company, at each balance sheet date, assesses whether there is any indication that an individual asset or group of assets constituting a Cash Generating Unit (CGU) may be impaired. Provision for impairment loss is recognised where the recoverable amount of an asset or a CGU, is less than its carrying amount. Provisions for impairment losses recognised in earlier years are further reviewed at each balance sheet date and adjusted for changes in the estimated recoverable amount of asset / CGU.

1. 10 Provisions Contingent Liabilities and Contingent Assets:

Provisions involving a 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 and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements

1. 11 Cash Flow Statement:

Cash flows are reported using the Indirect Method, whereby profit/ (loss) before 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

1.12 Cash and Cash Equivalents:

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

1.13 Earnings Per Share:

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

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Mar 31, 2012

1.1 Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

The Company is in the business of rendering various administrative and allied services. The Company has considered its operating cycle as 12 months and all assets and liabilities have been classified as current or non-current as per the criteria set out the Revised Schedule VI to the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known.

1.3 Recognition of Revenue and Expenditure:

a. Income from rendering of services is recognised in the year in which the services are rendered.

b. All other revenues/incomes and costs/expenditure are generally accounted on accrual, as they are earned or incurred.

c. Dividend income is recognised in the year in which the right to receive dividend is established.

1.4. Employee Benefits:

a. Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related services are rendered;

b. Post employment benefits:

Defined benefit plans:

-Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method

Actuarial gains and losses arising on such valuation are recognized immediately in the Statement Profit and Loss. In the case of gratuity which is funded with the Life Insurance Corporation of India, fair value of the Plan Assets , is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

-Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate.

c. Long term compensated absences are provided on the basis of an actuarial valuation;

d. Termination Benefits are recognised as an expense in the Statement of Profit and Loss of the year in which they are incurred.

1.5 Fixed Assets and Depreciation:

a. Fixed Assets:

Fixed Assets are carried at cost of acquisition less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition.

Fixed assets individually costing 5000/- or less are depreciated fully in the year of Acquisition.

b. Depreciation:

i. Depreciation is provided as per the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956, on the Straight Line Method.

ii. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition or upto the month of such sale/disposal as the case may be.

1.6 Investments:

Investments are classified into Long-term and Current Investments. Long Term Investments are stated at cost of acquisition. Diminution, if any, in the value of Long Term Investments, other than temporary, is provided for each investment individually. Current Investments are stated at lower of cost and market value/ net realisable value.

1.7 Borrowing Costs:

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.

1.8 Taxation:

Income-tax expense comprises Current tax and Deferred tax charge or credit.

a) Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

b) Deferred Tax is recognized on timing difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent period(s). The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising on account of brought forward losses and unabsorbed depreciation under tax laws are recognised only if there is a virtual certainty of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.

1.9 Impairment of Assets:

The Company, at each balance sheet date, assesses whether there is any indication that an individual asset or group of assets constituting a Cash Generating Unit (CGU) may be impaired. Provision for impairment loss is recognised where the recoverable amount of an asset or a CGU, is less than its carrying amount. Provisions for impairment losses recognised in earlier years are further reviewed at each balance sheet date and adjusted for changes in the estimated recoverable amount of asset / CGU.

1.10 Provisions Contingent Liabilities and Contingent Assets:

Provisions involving a 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 and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements

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Mar 31, 2011

1. Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

2. Use of Estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known.

3. Recognition of Revenue and Expenditure:

a. Income from rendering of services is recognised in the year in which the service is performed as per the proportionate completion method.

b. All other revenues/incomes and costs/expenditure are generally accounted on accrual, as they are earned or incurred.

c. Dividend income is recognised in the year in which the right to receive dividend is established.

4. Employee Benefits:

a. Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered;

b. Post employment benefits:

Defined benefit plans:

-Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. In the case of gratuity which is funded with the

Life Insurance Corporation of India, fair value of the Plan Assets , is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

-Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate..

c. Long term compensated absences are provided on the basis of an actuarial valuation;

d. Termination Benefits are recognised as an expense in the Profit and Loss Account of the year in which they are incurred.

5. Fixed Assets and Depreciation:

a. Fixed Assets:

Fixed Assets are carried at cost of acquisition less accumulated depreciation.

b. Depreciation:

i. Depreciation is provided as per the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956, on the Straight Line Method.

ii. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition or upto the month of such sale/disposal as the case may be.

6. Investments:

Investments are classified into Long-term and Current Investments. Long Term Investments are stated at cost of acquisition. Diminution, if any, in the value of Long Term Investments, other than temporary, is provided for each investment individually. Current Investments are stated at lower of cost and fair value.

7. Taxation:

Income-tax expense comprises Current tax and Deferred tax charge or credit.

a) Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

b) Deferred Tax is recognized on timing difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent period(s). The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising on account of brought forward losses and unabsorbed depreciation under tax laws are recognised only if there is a virtual certainty of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date the carrying amount of deferred tax assets are reviewed to reassure realisation.

8. Provisions 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, it is probable that there will be an outflow of resources and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2010

1. Basis of preparation of financial statements:

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the applicable mandatory Accounting Standards and the relevant provisions of the Companies Act 1956.

2. Use of Estimates:

The preparation of Financial Statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known.

3. Recognition of Revenue and Expenditure:

a. Income from rendering of services is recognised in the year in which the service is performed as per the proportionate completion method.

b. All other revenues/incomes and costs/expenditure are generally accounted on accrual, as they are earned or incurred.

c. Dividend income is recognised in the year in which the right to receive dividend is established.

4. Employee Benefits:

a. Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered;

b. Post employment benefits:

Defined benefit plans:

-Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. In the case of gratuity which is funded with the Life Insurance Corporation of India, fair value of the Plan Assets , is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

-Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate.

c. Long term compensated absences are provided on the basis of an actuarial valuation;

d. Termination Benefits are recognised as an expense in the Profit and Loss Account of the year in which they are incurred.

5. Fixed Assets and Depreciation:

a. Fixed Assets:

Fixed Assets are carried at cost of acquisition less accumulated depreciation.

b. Depreciation:

i. Depreciation is provided as per the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956, on the Straight Line Method.

ii. Depreciation on additions to assets or on sale/disposal of assets is calculated pro-rata from the month of such addition or upto the month of such sale/disposal as the case may be.

6. Investments:

Investments are classified into Long-term and Current Investments. Long Term Investments are stated at cost of acquisition. Diminution, if any, in the value of Long Term Investments, other than temporary, is provided for each investment individually. Current Investments are stated at lower of cost and fair value.

7. Taxation:

Income-tax expense comprises Current tax and Deferred tax charge or credit.

a) Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

b) Deferred Tax is recognized on timing difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent period(s). The Deferred tax Asset and Deferred tax Liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Assets arising on account of brought forward losses and unabsorbed depreciation under tax laws are recognised only if there is a virtual certainty of its realisation supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date the carrying amount of deferred tax assets are reviewed to reassure realisation.

8. Provisions 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, it is probable that there will be an outflow of resources and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

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Mar 31, 2009

1. Fixed Assets are carried at cost of acquisition less accumulated depreciation.

2. (a) Depreciation is provided on Straight Line Method at the rates and in the manner specified from time to time in Schedule XIV to the Companies Act, 1956.

(b) Depreciation on additions to assets or on sale/discardment of assets is calculated pro-rata from the month of such addition or upto the month of such sale, as the case may be.

3. Income from rendering of services is recognised in the year in which the service is performed as per the proportionate completion method. All other revenues/incomes and costs/expenditure are generally accounted on accrual, as they are earned or incurred.

4. The preparation of Financial Statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialised.

5. Investments are classified into Long Term and Current Investments. Long Term Investments are stated at cost of acquisition. Diminution, if any, in the value of Long Term Investments, other than temporary, is provided for each investment individually. Current Investments are stated at Cost or Fair Value, whichever is lower.

6. Taxation:

Income-Tax expense comprises current tax; fringe benefits tax (FBT) and deferred tax charge or credit. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year. Provision for FBT is made on the fringe benefits provided/deemed to have been provided at the values and rates applicable to the relevant assessment year. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets arising on account of brought forward losses and unabsorbed depreciation under tax laws, are recognised, only if there is a virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognised only to the extent there is a reasonable certainty of its realisation. At each Balance Sheet date, the carrying amount of deferred tax assets is reviewed to reassure realisation.

7. Employee Benefits:

A. Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

7. Employee Benefits :

A. Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service are recognised in the period in which the employee renders the related service.

B. Post employment benefits:

Defined Benefit Plans: -Gratuity

The present value of the obligation is determined based on an actuarial valuation at the close of the year using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. The fair value of the Plan Assets of the Trust, constituted for the benefit of the employees, is reduced from the gross obligation under the Defined Benefit Plans, to recognize the obligation on a net basis;

-Provident Fund

Monthly contributions are made to a Trust, constituted for the benefit of the employees. The interest rate payable by the Trust to the beneficiaries is notified by the Government. The Company has an obligation to make good the shortfall, if any, between the return on investments of the Trust and the notified interest rate.

C. Long term compensated absences are provided on the basis of an actuarial valuation

D. Termination Benefit:

Termination benefits are recognized as and when incurred.

8. Provisions, 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, it is probable that there will be an outflow of resources and reliable estimate of the amount of the obligation can be made. Contingent Liabilities are not recognized and are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.