Accounting Policies of Proto Developers & Technologies Ltd. Company

Mar 31, 2013

(A). Basis of preparation

The financial statements have been prepared on accrual basis under the historical cost convention and in accordance with the applicable accounting standards prescribed by companies (Accounting standards), Rules 2006. The accounting policies have been consistently applied unless otherwise stated.

(B). Use of estimates

The preparation of financial statements is in conformity with generally accepted accounting principles which require the management of the company to make estimates and assumption that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting periods. .Although these estimates are based upon the management''s best knowledge of current events and actions, actual results could differ from those estimates. -

(C). Revenue recognition

- Revenue from the sale of FSI is recognized when the significant risk and rewards of ownership have been transferred to the customer, which coincides with the entering into a legally binding agreement.

Revenue from the sale of UDS on other projects where the risk and rewards on the sale of UDS are not separable from the construction contracts and therefore do not qualify above are recognized on the percentage of completion method.

Contract revenues represent the aggregate amounts of sale price for agreement entered in to and are accrued based on the percentage that the actual construction cost incurred until the reporting date bears to the total estimated construction cost to completion.

The estimates of salable area and contracts cost are reviewed by management periodically and the cumulative effect of the change in the estimates, if any, are recognized in the period in which these changes may be reliably measured.

(D). Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses, cost comprises the purchase price and any cost attributable to bringing the asset to its working condition for its intended use. Expenditure directly relating to expansion is capitalized only if it increases the life of functionality of an asset beyond its original standard of performance.

(E). Depreciation

Depreciation on the fixed assets are provided on the straight-line method, using the rates specified in the schedule XTV to the companies Act 1956, except in the case of shuttering and scaffolding items where the estimated useful life has been determined as five years. Assets individually costing less then Rs 5,000 are fully depreciated in the year of purchase.

(F). Borrowing Costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalized as part of the cost of such assets, in accordance with Accounting Standard 16- "Borrowing Cost". A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing costs are charged to the profit and loss account as incurred.

(G). Advertisement and Promotional expenses

Advertisement and promotional costs in respects of. projects currently being developed and for general corporate purpose are expensed to the profit and loss account as incurred.

(H). Impairment of Assets-

The company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the company estimates the recoverable amount of the assets. If such recoverable amount of the assets or the recoverable amount of die cash generating unit to which die asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication dud if a previously assessed impairment loss no longer exists, die recoverable amount is reassessed and die assets is reflected at the recoverable amount subject to a maximum of depreciated historical cost. However there is no impairment of assets during the year.

(I). Cash and cash equivalents

Cash comprises cash on hand and balances with banks. Cash equivalent are short term, highly liquid investments that are readily convertible into cash and which are subject to insignificant risk of changes in value.

(J). Inventory

Inventory comprises die FSI area which are valued at net realizable value or prevailing market price whichever is lower determined on a "first in first out" basis.

(IQ. Foreign currency transactions

Foreign currency transactions are recorded in the reporting currency by applying to die foreign currency amount the exchange rate between the reporting currency and the foreign currency at die date of the respective transaction. However there is no foreign currency transaction during die year.

(L). Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with Accounting Standard -15 "Employee Benefit".

The company contributes to the statutory provident fund of the Regional Provident Fund Commissioner in accordance with Employee provident fund and miscellaneous Provision Act, 1952.The plan is a defined contribution plan and contribution paid or payable is recognized as an expense in the period in which the employee renders services.

(M). Taxes on income

Tax expenses comprises both current and deferred taxes. The current charge for income taxes is calculated in accordance with the relevant tax regulations. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets are recognized on carry forward of unabsorbed depreciation and tax losses only if there is virtual certainty that such deferred tax assets can be realized against future taxable profits.

Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

(N). Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the number of equity shares outstanding during the year. .

(O). Provisions and contingent liabilities

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources remote no provision or disclosure is made.

(P). Investments

Long term Investments are stated at cost less provision for permanent diminution in value, if any.

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Mar 31, 2011

(A). GENERAL

1. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

2. These accounts have been prepared on the Historical cost basis and on the accounting principles as a going concern.

3. Accounting policies unless specially stated to be otherwise are consistent are in consonance with generally accepted accounting principles.

(B). FIXED ASSETS & DEPRECIATION

Fixed Assets are stated at cost less accumulated depreciation. The Company is following the straight-line method of depreciation. Depreciation is provided at the rates as specified in Schedule XIV of the Companies Act, 1956 on prorata basis. Previous Year figures are regrouped and rearranged when necessary.

(C). REVENUE RECOGNITION

Sale of products and services are recognized when products are dispatched or services are rendered.

(D). INVENTORIES

1. Inventories are valued at cost or Net Realizable ValuefNRV) which ever is less by using First In First Out method.

2. The Raw Material Stores & Spares are valued at lower of cost or estimated net realizable value.

3. The Finished Goods have been valued at lower of cost or net realizable value.

(E). RETIREMENT BENEFITS

Contribution to provident fund is made in accordance with the Provision of The Employees Provident Fund and Miscellaneous Provision Act, 1952. The gratuities are accounted for on cash basis.

(G). CONTINGENT LIABILITIES

An interest amount of Rs 3,75,00000/- is the contingent liabilities due to non listing of preferential share in the stock exchange till date.

TAXATION

Deferred Tax has been recognized as per Accounting Standard 22 issued by The

Institute of Chartered Accountants of India.

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Mar 31, 2010

(A). GENERAL

1. The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis.

2. These accounts have been prepared on the Historical cost basis and on the accounting principles as a going concern.

3. Accounting policies unless specially stated to be otherwise are consistent are in consonance with generally accepted accounting principles.

(B). FIXED ASSETS & DEPRECIATION

Fixed Assets are stated at cost less accumulated depreciation. The Company is following the straight-line method of depreciation. Depreciation is provided at the rates as specified in Schedule XIV of the Companies Act, 1956 on prorata basis. Previous Year figures are regrouped and rearranged when necessary.

(C). REVENUE RECOGNITION

Sale of products and services are recognized when products are dispatched or services are rendered.

(D). INVENTORIES

1. Inventories are valued at cost or Net Realizable Value(NRV) which ever is less by using First In First Out method.

2. The Raw Material Stores & Spares are valued at lower of cost or estimated net realizable value.

3. The Finished Goods have been valued at lower of cost or net realizable value.

(E). RETIREMENT BENEFITS

Contribution to provident fund is made in accordance with the Provision of The Employees Provident Fund and Miscellaneous Provision Act, 1952. The gratuities are accounted for on cash basis.

(G). CONTINGENT LIABILITIES

Contingent Liabilities are disclosed by way of notes to the accounts. No provision is made in respect of these liabilities.

(H) TAXATION

Deferred Tax has been recognized as per Accounting Standard 22 issued by The Institute of Chartered Accountants of India.