Accounting Policies of Kedia Construction Company Ltd. Company

Mar 31, 2024

Note 2B - SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared using the significant accounting policies and measurement
bases summarized as below. These policies are applied consistently for all the periods presented in the
financial statements, except where the Company has applied certain accounting policies and exemptions
upon transition to Ind AS.

a) Revenue recognition

Revenue from the sale of goods is recognized when (or as) the entity satisfies a performance
obligation by transferring a promised good or service to a customer.

The ownership is transferred when (or as) the customer obtains control of that goods.

Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates.

Sales are disclosed net of sales returns and GST.

Other income is comprised primarily of interest income, dividend income, and gain/loss on
investments. Interest income is recognized using the effective interest method. Dividend income is
recognized when the right to receive payment is established.

b) Foreign Currency Transactions and Reinstatement

Transactions denominated in foreign currency are normally recorded at the customs exchange
rate prevailing at the time of transaction. Monetary Items denominated in foreign currencies at the
yearend are restated at year end rates. Exchange difference relating to long term monetary items,
arising during the year, in so far as they relate to the acquisition of depreciable fixed asset is adjusted
to the carrying cost of the

fixed asset. All other exchange differences are dealt with in the Statement of Profit and Loss. Non -
monetary foreign currency items are carried at cost.

c) Property, plant and equipment

Property, plant and equipment are carried at cost of acquisition or construction, net of recoverable
taxes less accumulated depreciation and accumulated impairment losses, if any. Cost includes
purchases price, borrowing cost and any cost directly attributable to the bringing the assets to its
working condition for its intended use.

Capital work in progress includes cost of property, plant and equipment under installation as at the
balance sheet date.

Depreciation on the Property plant and equipment is provided using written down value method
over useful life of assets as specified in schedule II to the Companies Act,2013, Depreciation on
Property Plant & equipment addition/deletion during the year has been provided on pro-rata basis
from the date of such addition or upto date of such deletion as the case may be. Freehold land is not
depreciated.

The assets’ residual values, useful lives and method of depreciation are reviewed at each financial
year end and are adjusted prospectively, if appropriate.

Property plants and equipment are eliminated from financial statement, either on disposal or when
retired from active use. Profits/Losses arising in the case of retirement/disposal of property plant and
equipment are recognized in the statement of profit and losses in the year of occurrence.

Leasehold Lands are amortized over period of lease. Buildings constructed on leasehold land are
depreciated based on the useful life specified in schedule II to the Companies Act, 2013, where the
lease period of land is beyond the life of the building.

d) Intangible Assets

Intangible assets are carried at cost less accumulated amortization and accumulated impairment
losses, if any Cost includes expenditure that is directly attributable to the acquisition of the intangible
assets.

Identifiable intangible assets are recognised when it is probable that future economic benefits
attributed to the asset will flow to the Company and the cost of the asset can be reliably measured.

Computer software are capitalized at the amount paid to acquire the respective license for use and
are amortized over period of useful lives. The assets useful lives are reviewed at each financial year
end.

Gains or losses arising from de-recognition of an intangible asset are measured as the difference
between the net disposal proceeds and the carrying amount of the asset and are recognised in the
statement of profit and loss when the asset is derecognized.

e) Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, is classified
as investment property. Investment property is measured initially at its cost, including related
transaction costs and where applicable borrowing costs. Subsequent expenditure is capitalized to
the asset’s carrying amount only when it is probable that future economic benefits associated with
the expenditure will flow to the company and the cost of the item can be measured reliably. All other
repairs and maintenance costs are expensed when incurred.

f) Depreciation/Amortization on Property, Plant & Equipment

Depreciation/Amortization on Property, Plant & Equipment (other than freehold land and capital
work-in-progress) is charged on a Written Down Value Method Basis so as to write off the original
cost of the assets over the useful lives. The useful life of the fixed assets has been adopted based
on Technical Evaluation and in other cases, as prescribed under the Companies Act, 2013. Details
for the same are asunder:

Class of Assets Range of Useful Life

Building 05 - 60Years

Plant & Machinery 03 - 15Years

Furniture & Fixtures 10 Years

Office Machinery 10 Years

Vehicles 08 Years

Intangible Assets 03 - 04Years

g) Capital Work-in-Progress

Assets under construction wherein assets are not ready for use in the manner as intended by the
management are shown as Capital Work-In-Progress.

h) Leases

A lease is classified at the inception date as a finance lease or an operating lease. A lease that
transfers substantially all the risks and rewards incidental to ownership to the Company is classified
as a finance lease.

Finance leases are capitalized at the commencement of the lease at the inception date at fair
value of the leased property or, if lower, at the present value of the minimum lease payments. The
corresponding liability is included in the balance sheet as a finance lease liability. Lease payments
are apportioned between finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are recognised as
finance costs in the statement of profit and loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable
certainty that the Company will obtain ownership by the end of the lease term, the asset is depreciated
over the shorter of the estimated useful life of the asset and the lease term.

Assets acquired on leases where a significant portion of the risks and rewards of ownership are
retained by lessor are classified as operating leases. Operating lease payments are recognised as
an expense in the statement of profit and loss on a straight-line basis over the lease term except
where another systematic basis is more representative of time pattern in which economic benefits
from the leased assets are consumed.

i) Impairments of non-current assets

An asset is considered as impaired when at the date of Balance Sheet, there are indications of
impairment and the carrying amount of the asset, or where applicable, the cash generating unit to
which the asset belongs, exceeds its recoverable amount (i.e. the higher of the net asset selling price
and value in use).The carrying amount is reduced to the recoverable amount and the reduction is
recognised as an impairment loss in the statement of profit and loss. The impairment loss recognised
in the prior accounting period is reversed if there has been a change in the estimate of recoverable
amount. Post impairment, depreciation is provided on the revised carrying value of the impaired
asset over its remaining useful life.

j) Inventories

In general, all inventories of stock in trade, finished, work-in-progress etc. are stated at lower of cost
or net realizable value. Cost of inventories comprise of all cost of purchase, cost of conversion and
other cost incurred in bringing the inventory to their present location and condition. Cost of Work
in progress are determined at acquisition cost plus direct costs of development and other direct
overheads attributable to inventory. The inventories of financial instruments are stated at fair value.

k) Cash and Cash equivalents

Cash and cash equivalents include cash at bank and cash in hand and highly liquid interest-bearing
securities with maturities of three months or less from the date of inception/acquisition.

In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are
included as current borrowings in liabilities on the balance sheet.

l) Borrowing Costs

Borrowing costs specifically relating to the acquisition or construction of qualifying assets that
necessarily takes a substantial period of time to get ready for its intended use are capitalized (net
of income on temporarily deployment of funds) as part of the cost of such assets. Borrowing costs
consist of interest and other costs that the Company incurs in connection with the borrowing of funds.
For general borrowing used for the purpose of obtaining a qualifying asset, the amount of borrowing
costs eligible for capitalization is determined by applying a capitalization rate to the expenditures
on that asset. The capitalization rate is the weighted average of the borrowing costs applicable to
the borrowings of the Company that are outstanding during the period, other than borrowings made
specifically for the purpose of obtaining a qualifying asset. The amount of borrowing costs capitalized
during a period does not exceed the amount of borrowing cost incurred during that period. All other
borrowing costs are expensed in the period in which they occur.

m) Taxation

Tax expense recognized in Statement of Profit and Loss comprises the sum of deferred tax and
current tax except to the extent it recognized in other comprehensive income or directly in equity.

Current tax comprises the tax payable or receivable on taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. Current tax is computed
in accordance with relevant tax regulations. The amount of current tax payable or receivable is the
best estimate of the tax amount expected to be paid or received after considering uncertainty related
to income taxes, if any. Current income tax relating to items recognised outside profit or loss is
recognised outside profit or loss (either in other comprehensive income or in equity).

Current tax assets and liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realize the asset and settle the liability on a net basis or
simultaneously.

Deferred tax is recognised in respect of temporary differences between carrying amount of assets
and liabilities for financial reporting purposes and corresponding amount used for taxation purposes.
Deferred tax assets are recognised on unused tax loss, unused tax credits and deductible temporary
differences to the extent it is probable that the future taxable profits will be available against which
they can be used. This is assessed based on the Company’s forecast of future operating results,
adjusted for significant non-taxable income and expenses and specific limits on the use of any
unused tax loss. Unrecognized deferred tax assets are re-assessed at each reporting date and are
recognised to the extent that it has become probable that future taxable profits will allow the deferred
tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date. The measurement of deferred tax reflects the
tax consequences that would follow from the manner in which the Company expects, at the reporting
date to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and
liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it
is intended to realize the asset and settle the liability on a net basis or simultaneously. Deferred tax
relating to items recognised outside statement of profit and loss is recognised outside statement of
profit or loss (either in other comprehensive income or in equity).

Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and
deferred tax are also recognised in other comprehensive income or directly in equity respectively

n) Earnings Per Share

Basic earnings per share is computed using the ‘net profit for the year attributable to the shareholders
(Before and After Exceptional Items)’ and weighted average number of equity shares outstanding
during the year.

Diluted earnings per share is computed using the ‘net profit for the year attributable to the shareholder
(Before and After Exceptional Items)’ and weighted average number of equity and potential equity
shares outstanding during the year including share options, convertible preference shares and
debentures, except where the result would be anti-dilutive. Potential equity shares that are converted
during the year are included in the calculation of diluted earnings per share, from the beginning of the
year or date of issuance of such potential equity shares, to the date of conversion.

o) Dividend Distribution:

Annual dividend distribution to the shareholders is recognised as a liability in the period in which the
dividends are approved by the shareholders. Dividend payable and corresponding tax on dividend
distribution is recognised directly in other equity.

p) Employee Benefits

Short term employee benefits are recognised as an expense in the statement of profit and loss of the
year in which the related services are rendered.

Post-employment and other long term employee benefits are charged off in the year in which the
amount is paid to the employee.

q) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. The company recognizes financial assets and financial
liabilities when it becomes a party to the contractual provisions of the financial instrument.

i) Financial Assets

a. Initial recognition and measurement

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, transaction cost that are attributable to
the acquisition of the financial asset. Purchases or sales of financial assets that require
delivery of assets within a time frame established by regulation or convention in the
market place (regular way trades) are recognized on the trade date i.e, the date that the
Company commits to purchase or sell the asset.

b. Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three
categories:

i) Financials Assets at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a
business model whose objective is to hold the asset in order to collect contractual
cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

After initial measurement, debt instruments are subsequently measured at
amortized cost using the effective interest rate method, less impairment, if any.

ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive
income if it is held within a business model whose objective is achieved by both
collecting contractual cash flows and selling financial assets and the contractual
terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding. The
fair value is measured adopting valuation techniques as per prevailing valuation
guidelines, to the extent applicable, as at the reporting date.

iii) Financial assets at fair value through profit or loss

Financial assets which are not classified in any of the above categories are
subsequently fair valued through profit or loss.

c. Financial assets - De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is primarily de-recognized (i.e. removed from the Company’s
statement of financial position) when:

a) The rights to receive cash flows from the asset have expired, or

b) The Company has transferred its rights to receive cash flow from the asset.

d. Impairment of financial assets
Trade receivables

In respect of trade receivables, the Company applies the simplified approach of I nd
AS 109, which requires measurement of loss allowance at an amount equal to lifetime
expected credit losses. Lifetime expected credit losses are the expected credit losses
that result from all possible default events over the expected life of trade receivables.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those
financial assets has increased significantly since initial recognition. If the credit risk has
not increased significantly since initial recognition, the Company measures the loss
allowance at an amount equal to 12-month expected credit losses, else at an amount
equal to the lifetime expected credit losses.

When making this assessment, the Company uses the change in the risk of a default
occurring over the expected life of the financial asset. To make that assessment, the
Company compares the risk of a default occurring on the financial asset as at the balance
sheet date with the risk of a default occurring on the financial asset as at the date of
initial recognition and considers reasonable and supportable information, that is available
without undue cost or effort, that is indicative of significant increases in credit risk since
initial recognition. The Company assumes that the credit risk on a financial asset has not
increased significantly since initial recognition if the financial asset is determined to have
low credit risk at the balance sheet date.

e. Write-offs

Financial assets are written off either partially or in their entirety to the extent that there is
no realistic prospect of recovery. Any subsequent recoveries are credited to impairment
on financial instrument on statement of profit and loss.

ii) Financial Liabilities

a. Initial recognition and measurement

The Company’s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, financial guarantee contracts and derivative
financial instruments.

Financial liabilities are classified, at initial recognition, as at fair value through profit and
loss or as those measured at amortized cost.

b. Subsequent measurement

The subsequent measurement of financial liabilities depends on their classification as
follows:

i. Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit and loss include financial liabilities
held for trading. The Company has not designated any financial liabilities upon
initial recognition at fair value through profit and loss.

ii. Financial liabilities measured at amortized cost

After initial recognition, interest bearing loans and borrowings are subsequently
measured at amortized cost using the effective interest rate method except for
those designated in an effective hedging relationship.

r) Current and non-current classification:

The Company presents assets and liabilities in statement of financial position based on current/non-
current classification.

The Company has presented non-current assets and current assets before equity, non-current
liabilities and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013
notified by MCA.

An asset is classified as current when it is:

a) Expected to be realized or intended to be sold or consumed in normal operating cycle,

b) Held primarily for the purpose of trading & manufacturing.

c) Expected to be realized within twelve months after the reporting period, or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability
for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when it is:

a) Expected to be settled in normal operating cycle,

b) Held primarily for the purpose of trading, & manufacturing.

c) Due to be settled within twelve months after the reporting period, or

d) There is no unconditional right to defer the settlement of the liability for at least twelve
months after the reporting period.

All other liabilities are classified as non-current.

The operating cycle is the time between the acquisition of assets for processing and their realization
in cash or cash equivalents. Deferred tax assets and liabilities are classified as non-current assets
and liabilities. The Company has identified twelve months as its normal operating cycle.

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Mar 31, 2014

A) Basis of Preparation of Financial Statement

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956 except Gratuity expenses, bonus, which is accounted on cash basis if any wherever applicable.

b) Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known / materialized.

c) Change of Accounting Policy

There is no change in accounting policy as compared to last year.

d) Investments

There is no investment except, the capital invested as a partner in a construction firm and the same is reflected at cost at Rs. 36,000/- representing 36% share in the firm M/s. Prescon Developers.

e) Transactions in foreign exchange

Transactions in foreign exchange during the year NIL and previous year NIL

f) Fixed Assets

i) Leased Assets

The Company do not have any lease hold asset as such, hence type of lease, capitalization & depreciation policy of same is not required.

ii) Other Fixed Assets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Written Down Method at the rates provided under Schedule XIV to the Companies Act, 1956.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with reference to the days of addition.

g) Revenue Recognition

Sales and Services are recognized are recorded inclusive of statutory duty, taxes and Labour charges but are net of returns and trade discount.

h) Purchase

There are no purchases during the year.

i) Contingent Liabilities

As explained and informed to us there is no Contingent Liability.

k) Taxes on Income :

i. Income Tax comprises of Current Tax and net changes in Deferred Tax Assets or Liabilities during the year. Current Tax is determined at the amount of tax payable in respect of taxable income for the year as per the Income-tax Act, 1961, based on the estimates of weighted average income tax rate expected for the full financial year.

ii. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences between the book profit and tax profit. Deferred Tax Assets and Liabilities other than on carry forward losses and unabsorbed depreciation under tax laws are recognized when it is reasonably certain that there will be future taxable income.

iii. Net Deferred Tax Liability and/or Assets is recognized on timing differences between accounting income and taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on the Balance Sheet date. Net Deferred Tax liability has been recognized in the Books as required by AS-22 of the Institute of Chartered Accountants of India.

l) In the opinion of the Board, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Loans and advances, Deposits, Sundry Creditors and Unsecured Loans and other personal accounts are subject to confirmations and adjustments, if any.

m) Related Parties Disclosures:

There was not any transaction with Related Party during 2013-14.

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Mar 31, 2013

A) BasisofPreparation ofFinancial Statement

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern.All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956 except Gratuity expenses, bonus, whichisaccountedoncash basis if any wherever applicable.

b) UsesofEstimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognizedinthe year inwhich the results are known/materialized.

c) ChangeofAccountingPolicy

Thereisnochange inaccounting policyas compared tolast year.

d) Investments

There is no investment except, the capital invested as a partner in a construction firm and the same is reflected atcostat Rs..36,000/- representing 36% shareinthe firm M/s. Prescon Developers.

e) Transactionsin foreign exchange

Transactionsinforeign exchange during the year NILand previous year NIL

f) FixedAssets

i) LeasedAssets

The Company do not have any lease hold asset as such, hence type of lease, capitalization & depreciation policyof same isnot required.

ii) Other FixedAssets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Written Down Method at the rates provided under Schedule XIVtothe CompaniesAct, 1956.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with referencetothe daysof addition.

g) RevenueRecognition

Sales and Services are recognized are recorded inclusive of statutory duty, taxes and Labour charges but are net ofreturns and trade discount.

h) Purchase

There arenopurchases during the year.

i) Contingent Liabilities

As explained and informedtousthere isnoContingent Liability.

k) Taxes on Income :

i. Income Tax comprises of Current Tax and net changes in Deferred Tax Assets or Liabilities during the year. Current Tax is determined at the amount of tax payable in respect of taxable income for the year as per the Income-tax Act, 1961, based on the estimates of weighted average income tax rate expected for the full financial year.

ii. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences between the book profit and tax profit. Deferred Tax Assets and Liabilities other than on carry forward losses and unabsorbed depreciation under tax laws are recognized whenitisreasonably certain that there willbefuture taxable income.

iii. Net Deferred Tax Liability and/or Assets is recognized on timing differences between accounting income and taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on the Balance Sheet date. Net Deferred Tax liability has been recognized in the Books as required by AS-22 of the Institute of Chartered Accountantsof India.

l) In the opinion of the Board, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Loans and advances, Deposits, Sundry Creditors and Unsecured Loans and other personal accounts are subject toconfirmations and adjustments,ifany.

ii) Party Paid up Shares - Nil

d) The Company has not proposed dividend for the year ended March 31, 2013.

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Mar 31, 2012

A) Basis of Preparation of Financial Statement

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956 except Gratuity expenses, bonus, which is accounted on cash basis if any wherever applicable.

b) Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known/materialized.

c) Change of Accounting Policy

There is no change in accounting policy as compared to last year.

d) Investments

There is no investment except, the capital invested as a partner in a construction firm and the same is reflected at cost at Rs. 36,000/- representing 36% share in the firm M/s. Prescon Developers.

e) Transactions in foreign exchange

Transactions in foreign exchange during the year NIL and previous year NIL

f) Fixed Assets

i) Leased Assets

The Company do not have any lease hold asset as such, hence type of lease, capitalization & depreciation policy of same is not required.

ii) Other Fixed Assets

a. Fixed Assets including Intangible Assets have been capitalised at Cost of Acquisition and Other Incidental Expenses.

b. Depreciation on Fixed Assets has been computed on the Written Down Method at the rates provided under Schedule XIV to the Companies Act, 1956.

c. Depreciation on the fixed assets added during the year is provided on pro-rata basis with reference to the days of addition.

g) Revenue Recognition

Sales and Services are recognized are recorded inclusive of statutory duty, taxes and Labour charges but are net of returns and trade discount.

h) Purchase

There are no purchase during the year.

i) Contingent Liabilities

As explained and informed to us there is no Contingent Liability.

k) Taxes on Income :

i. Income Tax comprises of Current Tax and net changes in Deferred Tax Assets or Liabilities during the year. Current Tax is determined at the amount of tax payable in respect of taxable income for the year as per the Income-tax Act, 1961, based on the estimates of weighted average income tax rate expected for the full financial year.

ii. Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences between the book profit and tax profit. Deferred Tax Assets and Liabilities other than on carry forward losses and unabsorbed depreciation under tax laws are recognized when it is reasonably certain that there will be future taxable income.

iii. Net Deferred Tax Liability and Assets is recognized on timing differences between accounting income and taxable income for the year and quantified using the tax rates and laws enacted or subsequently enacted as on the Balance Sheet date. Net Deferred Tax liability has been recognized in the Books as required by AS-22 of the Institute of Chartered Accountants of India.

l) In the opinion of the Board, current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Loans and advances, Deposits, Sundry Creditors and Unsecured Loans and other personal accounts are subject to confirmations and adjustments, if any.

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Mar 31, 2011

1. Basis of Preparation of Financial Statement

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956 except Gratuity expenses, bonus, which is accounted on cash basis if any wherever applicable.

2. Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known / materialized.

3. Change of Accounting Policy

There is no change in accounting policy as compared to last year.

4. Fixed Assets

(i) Fixed Assets are carried at cost of acquisition or construction, inclusive of duties, incidental expenses, erection and installation etc., upto the date the asset is put to use.

(ii) The Company provides depreciation at the rate prescribed and in the manner described under Schedule XIV of Companies Act, 1956 on written down method.

5. Investments

There is no investment except, the capital invested as a partner in a construction firm and the same is reflected at cost at Rs. 36,000/- representing 36% share in the firm M/S Prescon Developers.

6. Transactions in foreign exchange

Transactions in foreign exchange during the year NIL and previous year NIL

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Mar 31, 2010

1. Basis of Preparation of Financial Satatement

The financial statements are consistently prepared on the basis of historical cost convention, in accordance with the applicable accounting standards and on the accounting principles of a going concern. All expenses and income to the extent ascertainable with reasonable certainly are accounted for on accrual basis and are in accordance with the requirements of the Companies Act, 1956 except Gratuity expenses, bonus, which is accounted on cash basis if any wherever applicable.

2. Uses of Estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and during the reporting year. Difference between the actual result and estimates are recognized in the year in which the results are known /materialized.

3. Changeof Accounting Policy

There is no change in accounting policy as compared to last year.

4. Fixed Assets

(i) Fixed Assets are carried at cost of acquisition or construction, inclusive of duties, incidental expenses, erection and installation etc.. upto the date the asset is put to use.

(it) The Company provides depreciation at the rate prescribed and in the manner described under Schedule XIV of Companies Act, 1956 on written down method.

5. Investments

There is no investment except, the capital invested as a partner in a construction firm and the same is reflected at cost at Rs. 36,000/- representing 36% share in the firm MIS Prescon Developers.

6. Transactions in foreign exchange

Transactions in foreign exchange during the year NlL and previous year NIL