Accounting Policies of JMDE Packaging & Realties Ltd. Company

Mar 31, 2014

OVERVIEW : The company is engaged in real estate broking.

I Recognition of Income and Expenditure:

(I) Revenues/Incomes and Costs/Expenditure are generally accounted on accrual basis, as they are earned or incurred.

(ii) Sale of goods is recognized on transfer of significant risks and rewards of ownership. It is also accounted for as per the contract terms and conditions agreed.

II 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 the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known /materialised.

III Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation (other than Freehold land where no depreciation is charged).

Items of fixed assets that have been retired from active use / held for disposal are stated at the lower of their net book value and net realisable value and are disclosed separately in the financial statements. Any expected loss is recognised in the profit and loss account.

IV Method of Depreciation and Amortization:

(i) Depreciation on Fixed Assets is provided on Written down value method. (WDV)

(ii) Depreciation on additions to assets or on sale/discernment of assets, is calculated pro rata from the month of such addition or up to the month of such sale/discernment, as the case may be.

V Investments :

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long-term Investments.

VI Valuation of Inventories:

Inventories of Raw Materials, Goods-in-Process, Finished Goods, Merchanting Goods are stated at 'cost' or 'net realisable value' whichever is lower. Goods-in-transit are stated 'at cost'. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The excise duty in respect of closing inventory of finished goods is included as part of finished goods. Cost formulae used are 'Weighted Average Cost'. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

VII Foreign Currency translations:

i) All transactions in foreign currency, are expressed in the Indian currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. In respect of transactions covered by Forward Exchange Contracts, the difference between forward rate and exchange rate at the inception of the contract is recognised as income or expense over the life of the contract.

ii) Balances in the form of Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year;

iii) Transactions covered by cross currency swap contracts to be settled on future dates are recognised at the rates of exchange of the underlying foreign currency prevailing on the date oof the Balance Sheet. Effects arising out of swap contracts are accounted/ adjusted on the date of settlement;

VIII Employee Benefits :

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.

Post Employment / Retirement Benefits

Defined Contribution Plans such as Provident Fund etc., are charged to the Profit and Loss Account as incurred.

Defined Benefit Plans - The present value of the obligation under such plans is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit and Loss Account.

Other Long Term Employee Benefits are recognised in the same manner as Defined Benefit Plans. Termination benefits

Termination benefits are recognised as and when incurred.

X Borrowing Costs:

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

XI Government Grants :

Grants received against specific fixed assets are adjusted to the cost of assets. Revenue grants are recognised in the Profit and Loss Account in accordance with the related scheme and in the period in which these are accrued.

XII Taxation :

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate 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 mainly 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 amounts of deferred tax assets are reviewed to reassure realisation.

XIII Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

XIV Provisions, Contingent Liabilities and Contingent Assets:

A provision is made based on reliable estimate when it is possible that an outflow of resources embodying economic benefit will be required to settle an obligation, Contingent Liabilities, unless the possibility of outflow of resources embodying economic benefit is remote, are disclosed by way of notes to accounts. Contingent Assets are not recognised or disclosed in the financial statement.

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Mar 31, 2013

I Recognition of Income and Expenditure:

(I) Revenues/Incomes and Costs/Expenditure are generally accounted on accrual basis, as they are earned or incurred.

(ii) Sale of goods is recognized on transfer of significant risks and rewards of ownership. It is also accounted for as per the contract terms and conditions agreed.

II 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 the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known /materialised.

III Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation (other than Freehold land where no depreciation is charged). Items of fixed assets that have been retired from active use / held for disposal are stated at the lower of their net book value and net realisable value and are disclosed separately in the financial statements. Any expected loss is recognised in the profit and loss account.

IV Method of Depreciation and Amortization:

(i) Depreciation on Fixed Assets is provided on Written down value method. (WDV) (ii) Depreciation on additions to assets or on sale/discernment of assets, is calculated pro rata from the month of such addition or up to the month of such sale/discernment, as the case may be.

V Investments :

Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of Long-term Investments.

VI Valuation of Inventories:

Inventories of Raw Materials, Goods-in-Process, Finished Goods, Merchanting Goods are stated at ''cost'' or ''net realisable value'' whichever is lower. Goods-in-transit are stated ''at cost''. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. The excise duty in respect of closing inventory of finished goods is included as part of finished goods. Cost formulae used are ''Weighted Average Cost''. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.

VII Foreign Currency translations:

i) All transactions in foreign currency, are expressed in the Indian currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. In respect of transactions covered by Forward Exchange Contracts, the difference between forward rate and exchange rate at the inception of the contract is recognised as income or expense over the life of the contract.

ii) Balances in the form of Current Assets and Current Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet. Resultant gain or loss is accounted during the year;

iii) Transactions covered by cross currency swap contracts to be settled on future dates are recognised at the rates of exchange of the underlying foreign currency prevailing on the date of the Balance Sheet. Effects arising out of swap contracts are accounted/ adjusted on the date of settlement; All the revenue was received in foreign currency.

VIII Employee Benefits :

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.

Post Employment / Retirement Benefits

Defined Contribution Plans such as Provident Fund etc., are charged to the Profit and Loss Account as incurred. Defined Benefit Plans - The present value of the obligation under such plans is determined based on an actuarial valuation, using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognised immediately in the Profit and Loss Account.

Other Long Term Employee Benefits are recognised in the same manner as Defined Benefit Plans. Termination benefits

Termination benefits are recognised as and when incurred.

X Borrowing Costs:

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

XI Government Grants :

Grants received against specific fixed assets are adjusted to the cost of assets. Revenue grants are recognised in the Profit and Loss Account in accordance with the related scheme and in the period in which these are accrued.

XII Taxation :

Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate 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 mainly 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 amounts of deferred tax assets are reviewed to reassure realisation.

XIII Impairment of Assets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

XIV Provisions, Contingent Liabilities annd Contingent Assets:

A provision is made based on reliable estimate when it is possible that an outflow of resources embodying economic benefit will be required to settle an obligation, Contingent Liabilities, unless the possibility of outflow of resources embodying economic benefit is remote, are disclosed by way of notes to accounts. Contingent Assets are not recognised or disclosed in the financial statement.

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Mar 31, 2012

1. Accounting Concept

I. The company follows the mercantile systems of accounting recognizing income expenditure on accrual basis except in case of Debit/Credit received from the parties. The Debit/Credit notes received up to the date of signing of the Balance Sheet is accounted for. In case of sales commission it is accounted on accrued and due basis.

II. The accounts of the Company are prepared under the historical cost convention using the accrual method of accounting and on the basis of the concept of going concern.

2. Revenue Recognition

All items of Income & Expenditures are accounted for on accrual basis. There are no export sales.

3. Fixed Assets

Fixed assets include other expenses related to their installation and procurement & stated at cost less accumulated depreciation.

4. Depreciation

Depreciation on fixed assets including addition during the year is provided on Continuous Process Plant basis on straight - Line Method in the manner specified in Schedule XIV of the Companies Act 1956.

5. Investment Investments are stated at cost.

6. Inventories

Stock in trade has been valued on cost or market value whichever is less.

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Mar 31, 2010

1. Accounting Concept

I. The company follows the mercantile systems of accounting recognizing income expenditure on accrual basis except in case of Debit Credit received from the panic I he Debit Credit notes received up to the date of signing of the Balance Sheet is accounted for. In case of sales commission it is accounted on accrued and due basis.

II. The accounts of the Compaq) are prepared under the historical cost convention using the accrual method of accounting and on the basis of the concept of going concern.

2. Revenue Recognition

All items of Income & Expenditures are accounted for on accrual basis. There are no export sales.

3. Fixed Assets

Fixed assets include other expenses related to their installation and procurement & stated at cost less accumulated depreciation.

4. Depreciation

Depreciation on fixed assets including addition during the year is provided on Continuous Process Plant basis on straight - Line Method in the manner specified in Schedule XIV of the Companies Act 1956.

5. Investment

Investments are stated at cost No provision for temporary diminution in the value of investments has been made

6. Inventories

Stock in trade has been valued on cost or market value whichever is less.