Accounting Policies of Shaival Reality Ltd. Company

Mar 31, 2025

Note: 1 SIGNIFICANT ACCOUNTING POLICIES

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance
with Generally Accepted Accounting Principles in India (''Indian GAAP'') to
comply with the Accounting Standards as prescribed under Section 133 of
the Companies Act, 2013 read with Rule 7 of the Companies (Accounts)
Rules, 2014, the provisions of the Companies Act, 2013 (to the extent
notified), provisions of Companies Act, 1956 (to the extent applicable)
(hereinafter together referred to as ''The Act'') and the Schedule III of the Act.
The financial statements have been prepared on the accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those followed in
the previous year unless stated otherwise. Also, Accounts have been
prepared on the assumption of going concern basis.

(2) USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP
requires judgements, estimates and assumptions to be made that affect the
reported amount of assets and liabilities, disclosure of contingent liabilities
on the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Difference between the actual
results and estimates are recognized in the period in which the results are
known / materialised.

(3) CURRENT / NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it is expected to be realized in, or is
intended for sale or consumption in, the company''s normal operating cycle
or it is held primarily for the purpose of being traded or it is expected to be

realized in 12 months after the reporting date or it is cash or cash equivalents
unless it is restricted from being exchanged or expected to be used to settle
a liability for at least 12 months after the reporting date. Current Assets
include the current portion of non-current assets. All other assets are
classified as non-current. In the opinion of Board Directors, the aggregate
value of the current assets, on realization in the ordinary course of business,
will not be less than the amount at which they are stated in the Balance
Sheet.

Liabilities

A liability is classified as current when it is expected to be settled in the
company''s normal operating cycle or it is held primarily for the purpose of
being traded or is due to be settled within 12 months after the reporting
date or the company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting date.
Terms of liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification.
Current Liabilities include the current portion of non-current liabilities. All
other liabilities are classified as non-current.

(4) PROPERTY, PLANT AND EQUIPMENT

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts
and rebates, less accumulated depreciation and impairment loss, if any.

The cost of Tangible Assets comprises its purchase price, borrowing cost and
any cost directly attributable to bringing the asset to its working condition for
its intended use.

Subsequent expenditures related to an item of Tangible Asset are added to
its book value only if they increase the future benefits from the existing asset
beyond its previously assessed standard of performance.

Intangible assets

An intangible asset is a non-physical asset having a useful life greater than
one year. These assets are generally recognized as part of an acquisition,
where the acquirer is allowed to assign some portion of the purchase price to
acquired intangible assets. The company does not possess any intangible
asset.

(5) DEPRECIATION. AMORTISATION AND DEPLETION

Tangible Assets

Pursuant to the enactment of Companies Act 2013, the company has applied
the estimated useful lives as specified in Schedule II. Depreciation on Fixed
Assets is provided to the extent of depreciable amount on the Written down
Value (WDV) Method except in respect of Mould (over its useful life as
technically assessed - 3 Years) where useful life is different than those
prescribed in Schedule II. In respect of assets sold, depreciation is provided
up to the date of disposal.

(6) REVENUE RECOGNITION

Revenue from operations includes renting of property and construction of
Residential Complex under Government Schemes.

i. Revenue earned from Construction Contracts has been recognized as
per AS-7 "Construction Contracts".

ii. Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.

iii. Rent Income is recognized when the right to receive payment is
established.

(7) CONSTRUCTION CONTRACTS

The accounting for the construction division is done as per the percentage
completion method. The contract revenue is recognized as revenue in the
statement of profit and loss in the accounting period in which the work is
completed.

Contract cost are usually recognized as an expense in the statement of profit
and loss in the periods in which, the work to which, they relate is completed.
The contract cost related to unbilled activity is recognized as work in
progress, provided it is probable that they will be recovered.

(8) INVESTMENTS

Investments are classified into non-current investments and current
investments. Investments which are intended to be held for one year or
more are classified as non-current investments and investments which are
intended to be held for less than one year are classified as current
investments.

Non-current Investments are carried at cost less diminution in value which is
other than temporary, determined separately for each investment.

(9) The Company had made an Investment in following entities:

1. KCL SRPL JV - 90% Share of the Company (Unaudited)

2. MCC SRPL JV - 90% Share of the Company (Unaudited)

As per Accounting Standard 27, the investment made in Joint Ventures falls
under Jointly Controlled Entities which is incorporated as a separate entity.
The accounts of the ventures are required to be consolidated in the Financial
Statements of the company as per para 28 of AS 27 which throws light on the
entities to whom the consolidation is not applicable. Since, the entity does
not fall in any of the clause of para 28 of AS 27, consolidation of the same has
to be done. The method to be used for the consolidation is "Proportionate
Method" as prescribed in AS 27.

(10) INVENTORIES

In the case of construction division, for inventory of raw materials, raw
materials received on the sites are treated as consumed in the books of the
Company. There is continuous monitoring of the construction projects and
its consumption. Hence, the question of physical verification of the
inventory conducted at reasonable intervals does not arise.

(11) EMPLOYEE BENEFITS

Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognized as
an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.

Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which
the Company pays specified contributions to a separate entity. The Company
makes specified monthly contributions towards Provident Fund. The
Company''s contribution is recognized as an expense in the Profit and Loss
Statement during the period in which the employee renders the related
service.

ESIC Contribution

The company has not paid any amount to ESIC for the benefit of employees
and the immediate family dependents of employees in case of medical
emergency comprising of sickness, temporary or permanent physical

disablement, and maternity, death due to employment injury thereby
resulting in loss of wages or earning capacity.

(12) EARNING PER SHARE

The Company reports basic earnings per share in accordance with Accounting
Standard 20- "Earnings Per Share" notified under section 133 of the
Companies Act, 2013, read together with paragraph 7 of the Companies
(Accounts) Rules, 2014. Basic earnings per share is computed by dividing the
net profit after tax attributable to equity shareholders by the weighted
average number of equities shares outstanding during the year.

---

Mar 31, 2024

Mote: 1 SIGNIFICANT ACCOUNTING POLICIES

(1) BASIS OF PREPARATION Of FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance
with Generally Accepted Accounting Principles in India (''Indian GAAP''] to
Comply with the Accounting Standards as prescribed under Section 233 of
the Companies Act_r 2013 read with Rule 7 of the Companies (Accounts)
Rules, 2014, the provisions of the Companies Act, 2013 (to the extent
notified),, provisions of Companies Act, 1956 (to the extent applicable)
(hereinafter together referred tD as ''Thu Act’) and the Schedule ill of the Act.

The financial statements have been prepared on the accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the- financial statements are consistent with those followed In
the previous year unless stated otherwise. Also, Accounts have bean
prepared on the assumption of going concern basis.

(2) USE OF ESTIMATES

The preparation of financial statements fn conformity with Indian GAAP
requEres. judgements, estimates and assumptions CP be made that affect the
reported amount of assets and liabilities, disclosure of contingent liabilities
on the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Difference between the actual
results and estimates are recognized Jn the period in which the results are
known / materialised.

{3)CURRENT J NON-CURRENT CLASSIFICATION

AEI assets and liabifities are classified into current and non-current.

Assets

An asset is classified as current when it is expected to be reafiied in, or is
intended for sale or consumption in, the company''s normal oper^f^J^^^v
or it is held primarily for the purpose of being traded or it is

realfred in 12 months after the reporting date ar It is cash or cash equivalents
unless it is restricted from being exchanged or expected to be used to settle
a liability for at least 12 months after the reporting date. Current Assets
Include the current portion of non-current assets. All other assets are
classified as non-current. In the opinion of Board Directors, the aggregate
value ot the current assets, on realization in the ordinary course of business,
uvill not be less than the amount at which they are stated in the Balance
Sheet,

Liabilities

A liability is classified as current when It is expected to be settled in the
company''s normal operating cycle or it is held primarily for the purpose of
being traded or U due to be settled within 12 momhi after the reporting
date or the company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting date.
Terms of liability that could, at the option of the counterparty,. result in its
settlement by the issue of equity instruments do not affect its classification.
Current Liabilities include the current portion of nan-current liabilities. All
other liabilities are classified as non-current,

f4i property, plant and equipment

Tangible Assets

Tangible Assets are stated at cost net of recoverable tanes, trade discounts
and rebates, less accumulated depreciation and impairment loss, if any.

The cost of Tangible Assets comprises its purchase price, borrowing cost and
any cost directly attributable to bringing the asset to its working condition for
its intended use.

Subsequent expenditures related to an Item of Tangible Asset arc added to
its book value only if they increase the future benefits from the e^istins asset
beyond its previously assessed standard of performance.

intangible assets

An Intangible asset is a nOn-physical asset having a useful life greater than
one year. These assets are generally recognized as parr of an acquisition,
where the acquirer Is allowed to assign some portion of the purchase price to
acquired intangible assets. The company does not possess any intangible
asset.

<5] DEPRECIATION, AMORTISATION AND DEPLETION

Tangible Assets

Pursuant to the enactment of Companies Act 2013, the company has applied
the estimated useful lives as specified in Schedule IL Depreciation on Fixed
Assets is provided to the extent of depreciable amount on the Written Down
Value (WDV) Method except in respect of Mould (over its useful life as
technically assessed 3 Years} where useful life is different than those
prescribed in Schedule II- In respect of assets sold, depreciation is provided
up to the date of disposal.

(6) REVENUE RECOGNITION

Revenue from operation: includes renting of property and construction of
Residential Complex under Government Schemes.

L Revenue earned from Construction Contracts has been recognized as
per AS-7 ‘‘Construction Contracts".

if Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the interest rate applicable,
iii. Rent Income is recognized when the right to receive payment is
established.

<7) CONSTRUCTION CONTRACTS

The accounting for the construction division is done as per the percentage
completion method. The contract revenue is recognized a: revenue in the
statement of profit and loss in the accounting period in which the work Is
completed.

Contract cost are usually recognized as an expense in the statement of profit
and loss in the periods In which, the work to which, they relate is completed.
The contract cost related, to unbilled activity is recognized a: work in
progress, provided it is probable that they will be recovered,

(Bl INVESTMENTS

Investments sre classified into non-current investments and current
investments. Investments which are intended to be held for one year or
more are classified as non-current investments and investments which are
intended to be held for less than one year are classified as current
investments.

Non-current investments are carried at cost less diminution In valup^
other than temporary, determined separately for each InvestmenD^f/^

(SI The Company had made an Investment in Foltowing entities:

1, KCL 5RPL JV- 90% Share of the Company (Unaudited)

2, MCC SRPL JV-90%5hare of the Company (Unaudited)

As per Accounting Standard 27, the investment made in Joint Ventures fails
under Jointly Controlled Entitles which is incorporated as a separate entity.

The accounts of the ventures are required to be consolidated fn the Financial
Statements of the company S£ per para 20 of AS 27 which throws tight on the
entities to whom the consolidation Is not applicable. Since, the entity does
not fa if in any of the clause of para 28 of AS 27, consol i nation of the same has
to be done, The method to be used for the consolidation is "Proportionate
Method” a5 prescribed in AS 27.

{10) INVENTORIES

in the case pf construction division, far inventory of raw materials, raw
materials received on the sites are treated as consumed in the books of the
Company, There is continuous monitoring of the construction projects and
its consumption. Hence, the question of physical verification of the
inventory conducted at reasonable intervals does not arise.

(11} EMPLOYEE BENEFITS

gfajrj Term Emgto^ee Benefits

The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recog raized as
an expense during the period when the employees render the services.
These benefits include performance incentive and compensated absences.

Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post-cm ploy merit benefit plan under which
the Company pays specified contributions to a separate entity. The Company
makes specified monthly contributions towards Provident Fund. The
Company''s contribution is recognized as an expense in the Profit and Loss
Statement during the period in which the employee renders the related
service.

£5IC Comrihuhon

The company has not paid any amount to fSIC for the benefit of emnlnyges

and the immediate family dependents oF employees in case

emergency comprising of sickness, temporary or permanerfj^fiysical^A

if^/iUMtDAMDY^W

. L r ¦ II

disablement, maternity, death due to employment injury thereby resulting In
l0i$ of wages or carmine capacity.

{12} EARNING PEft SHARE

The Company reports basic earnings per share in accordance with Accounting
Standard 20- ^Earrings Per Share" notified under section 133 of the
Companies Act, 2013, read together with oaragraph 7 of the Companies
(Accounts) Rules, 2014. A bask earnings per share is computed by dividing
the net profit after tax attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.

(13) ISQftKOWlNG COSTS

Those borrowing costs that are attributable to the acquisition or construction
of qualifying assets have to be eapitaliied as part of the cost of such assets. A
qualifying asset is ore that necessarily takes substantial period of time to get
ready for its intended use. Alt other borrowing costs hays to be Charged to
the Profit and Loss Statement in the period in which they are incurred. The
company has not incurred any borrowing cost in regard to qualifying assets
and thus all borrowing cost incurred during the period are charged to the
Profit and Loss Statement,

(14) FQBfaEN C(lRRENCYTRANSACTIONS

During the period under consideration no amount was remitted in foreign
currency on account of traveling expenditure and no amount was remitted
on account of dividend and there was no earning in foreign currency.

115) SEGMENT REPORTING

According to AS 17 segment informat on needs to be presented Only in
of consolidated financial statements. Although more than 90% of the
revenue. Profit and assets belong to one segment {i.e. ¦Renting Segment}, the
details are provided on the basis of prudence.

The Company has identified two reportable segments on the basis of Business
Segments vie.

Segments have been identified and reported taking into account nature of
products and services, the differing risks and returns and the internal business
reporting systems- The accountⁱⁿS policies adopted for segment reporting are
in line with the accounting policy of the Company with following additional
policies for segment reporting.

a) Revenue end Expenses have been identified to a segment on the basis of
relationship to operating activities of the segment. Revenue and Expenses
which relate to enterprise as a whole and are not allocable to a segment
on reasonable basis have been disclosed as"Unallocable",

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in
respective segments, Investments, tax related assets and other assets and
liabilities that cannot be allocated to a segment on reason able basis have
been disdnsed as "Unallocable",

{]&) TAXATION

Tax expense comprises of current tax (i.e. amount of tax for the year
determined in accordance with the Income Tax Act, 1951), and deferred tax
charge or benefit (I.e. reflecting the tax effect of timing differences between
accounting income and taxable income for the year).

---

Mar 31, 2018

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Companies Act, 2013 (to the extent notified), provisions of Companies Act, 1956 (to the extent applicable) (hereinafter together referred to as ''The Act'') and the Schedule III of the Act. The financial statements have been prepared on the accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless stated otherwise. Also, Accounts have been prepared on the assumption of going concern basis.

(2) USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialised.

(3) CURRENT / NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle or it is held primarily for the purpose of being traded or it is expected to be realized in 12 months after the reporting date or it is cash or cash equivalents unless it is restricted from being exchanged or expected to be used to settle a liability for at least 12 months after the reporting date. Current Assets include the current portion of non-current assets. All other assets are classified as non-current. In the opinion of Board Directors , the aggregate value of the current assets, on realization in the ordinary course of business , will not be less than the amount at which they are stated in the Balance Sheet.

Liabilities

A liability is classified as current when it is expected to be settled in the company''s normal operating cycle or it is held primarily for the purpose of being traded or is due to be settled within 12 months after the reporting date or the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current Liabilities include the current portion of non-current liabilities. All other liabilities are classified as non-current.

(4) FIXED ASSETS

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and impairment loss, if any.

The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets

An intangible asset is a non-physical asset having a useful life greater than one year. These assets are generally recognized as part of an acquisition, where the acquirer is allowed to assign some portion of the purchase price to acquired intangible assets. The company does not possess any intangible asset.

(5) DEPRECIATION, AMORTISATION AND DEPLETION

Tangible Assets

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method except in respect of Mould (over its useful life as technically assessed - 3 Years) where useful life is different than those prescribed in Schedule II. In respect of assets sold, depreciation is provided up to the date of disposal.

(6) REVENUE RECOGNITION

Revenue from operations includes sale of service (transportation of goods), renting of property and construction of Residential Complex under Government Schemes.

i. Revenue earned from transportation business is recognized only when goods are delivered to the customers.

ii. Revenue earned from Construction Contracts has been recognized as per AS-7 "Construction Contracts".

iii. Dividend income is recognized when the right to receive payment is established.

iv. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

v. Rent Income is recognized when the right to receive payment is established.

(7) CONSTRUCTION CONTRACTS

The accounting for the construction division is done as per the percentage completion method. The contract revenue is recognized as revenue in the statement of profit and loss in the accounting period in which the work is completed.

Contract cost are usually recognized as an expense in the statement of profit and loss in the periods in which, the work to which, they relate is completed.

The contract cost related to unbilled activity are recognized as work in progress, provided it is probable that they will be recovered.

(8) INVESTMENTS

Investments are classified into non-current investments and current investments. Investments which are intended to be held for one year or more are classified as noncurrent investments and investments which are intended to be held for less than one year are classified as current investments.

Non-current Investments are carried at cost less diminution in value which is other than temporary, determined separately for each investment.

The Company had made an Investment in Joint Ventures namely KCL - SRPL (JV- Bharuch & Deesa Project) & MCC - SRPL (JV- Palanpur Project) and the share of interest of the company in both the projects is 90 %. The share of the company in KCL- SRPL (JV- Kalol Project) is 40%.

As per Accounting Standard 27, the investment made in Joint Ventures falls under Jointly Controlled Entities which is incorporated as a separate entity. The accounts of the ventures are required to be consolidated in the Financial Statements of the company as per para 28 of AS 27 which throws light on the entities to whom the consolidation is not applicable. Since, the entity does not fall in any of the clause of para 28 of AS 27, consolidation of the same has to be done. The method to be used for the consolidation is "Proportionate Method" as prescribed in AS 27.

(9) INVENTORIES

In the case of construction division, for inventory of raw materials, raw materials received on the sites are treated as consumed in the books of the Company. There is continuous monitoring of the construction projects and its consumption. Hence, the question of physical verification of the inventory conducted at reasonable intervals does not arise. Whereas, the closing stock of work in progress has been valued at cost. For transport services carried out by the company, the company is not required to maintain the inventory.

(10) EMPLOYEE BENEFITS

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-Employment Benefits

Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

ESIC Contribution

The company has paid amount of Rs. 56,035/- (Employer contribution) towards ESIC for the benefit of employees and the immediate family dependents of employees in case of medical emergency comprising of sickness, temporary or permanent physical disablement, maternity, death due to employment injury thereby resulting in loss of wages or earning capacity.

(11) BORROWING COSTS

Those borrowing costs that are attributable to the acquisition or construction of qualifying assets have to be capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs have to be charged to the Profit and Loss Statement in the period in which they are incurred. The company has not incurred any borrowing cost in regards to qualifying assets and thus all borrowing cost incurred during the period are charged to the Profit and Loss Statement.

(12) FOREIGN CURRENCY TRANSACTIONS

During the period under consideration no amount was remitted in foreign currency on account of traveling expenditure and no amount was remitted on account of dividend and there was no earning in foreign currency.

(13) SEGMENT REPORTING

The Company has identified three reportable segments on the basis of Business Segments viz.

Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallocable".

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as "Unallocable".

According to AS 17 segment information needs to be presented only on the basis of the consolidated financial statements.

(*) In the Current financial year, MCC - SRPL JV has subcontracted the Palanpur Project work to Shaival Reality Limited, @95% of Contract value, with Palanpur Nagarpalika.

(15) EARNING PER SHARE

The Company reports basic earnings per share in accordance with Accounting Standard 20- "Earnings Per Share" notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. Basic earnings per share is computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

(16) TAXATION

Tax expense comprises of current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Act, 1961), and deferred tax charge or benefit (i.e. reflecting the tax effect of timing differences between accounting income and taxable income for the year).

Current Tax

Provision for current tax is recognized based on estimated tax liability computed after adjusting for allowances, disallowances and exemptions in accordance with the Income Tax Act, 1961.

Deferred Tax

Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized when there is reasonable certainty that the asset can be realized in future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized to the extent there Is virtual certainty of realization of the assets.

Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain, as the case may be, to be realized.

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Mar 31, 2016

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Companies Act, 2013 (to the extent notified), provisions of Companies Act, 1956 (to the extent applicable) (hereinafter together referred to as ‘The Act’) and the Schedule III of the Act. The financial statements have been prepared on the accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless stated otherwise. Also, Accounts have been prepared on the assumption of going concern basis.

(2) USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(3) CURRENT / NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it is expected to be realized in, or is intended for sale or consumption in, the company’s normal operating cycle or it is held primarily for the purpose of being traded or it is expected to be realized in 12 months after the reporting date or it is cash or cash equivalents unless it is restricted from being exchanged or expected to be used to settle a liability for at least 12 months after the reporting date. Current Assets include the current portion of non-current assets. All other assets are classified as non-current. In the opinion of Board Directors , the aggregate value of the current assets, on realization in the ordinary course of business , will not be less than the amount at which they are stated in the Balance Sheet.

Liabilities

A liability is classified as current when it is expected to be settled in the company’s normal operating cycle or it is held primarily for the purpose of being traded or is due to be settled within 12 months after the reporting date or the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current Liabilities include the current portion of noncurrent liabilities. All other liabilities are classified as non-current.

(4) FIXED ASSETS

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets

An intangible asset is a non-physical asset having a useful life greater than one year. These assets are generally recognized as part of an acquisition, where the acquirer is allowed to assign some portion of the purchase price to acquired intangible assets. The company does not possess any intangible asset.

(5) DEPRECIATION, AMORTISATION AND DEPLETION

Tangible Assets

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method except in respect of Mould (over its useful life as technically assessed - 3 Years) where useful life is different than those prescribed in Schedule II. In respect of assets sold, depreciation is provided up to the date of disposal.

The company has the policy of maintaining asset at Scrap Value of 5%. After the useful life of asset is over, the WDV if is higher than the Scrap value of the asset then the difference is written off to Reserves and Surplus.

As per the requirements of Schedule II to the Companies Act, 2013, the depletion in the value of fixed assets amounting to Rs. 94,94,965/- has been transferred to the Reserves & Surplus.

(6) REVENUE RECOGNITION

Revenue from operations includes sale of service (transportation of goods), renting of property and construction of Residential Complex under Government Schemes.

i. Revenue earned from transportation business is recognized only when goods are delivered to the customers.

ii. Revenue earned from Construction Contracts has been recognized as per AS-7 “Construction Contracts”.

iii. Dividend income is recognized when the right to receive payment is established.

iv. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

v. Rent Income is recognized when the right to receive payment is established.

(7) CONSTRUCTION CONTRACTS

The accounting for the construction division is done as per the percentage completion method. The contract revenue is recognized as revenue in the statement of profit and loss in the accounting period in which the work is completed.

Contract cost are usually recognized as an expense in the statement of profit and loss in the periods in which, the work to which, they relate is completed.

The contract cost related to unbilled activity are recognized as work in progress, provided it is probable that they will be recovered.

(8) INVESTMENTS

Investments are classified into non-current investments and current investments. Investments which are intended to be held for one year or more are classified as non-current investments and investments which are intended to be held for less than one year are classified as current investments.

Non-current Investments are carried at cost less diminution in value which is other than temporary, determined separately for each investment.

During the last year the Company had made an Investment in Joint Ventures namely KCL - SRPL (JV- Bharuch & Deesa Project) & MCC -SRPL (JV- Palanpur Project) and the share of interest of the company in the said projects are 90 % & 10 % respectively. The share of the company in KCL- SRPL (JV- Kalol Project) is 40%.

As per Accounting Standard 27, the investment made in Joint Ventures falls under Jointly Controlled Entities which is incorporated as a separate entity. The accounts of the ventures are required to be consolidated in the Financial Statements of the company as per para 28 of AS 27 which throws light on the entities to whom the consolidation is not applicable.

Since, the entity does not fall in any of the clause of para 28 of AS 27, consolidation of the same has to be done. The method to be used for the consolidation is “Proportionate Method” as prescribed in AS 27.

(9) INVENTORIES

In the case of construction division, for inventory of raw materials, raw materials received on the sites are treated as consumed in the books of the Company. There is continuous monitoring of the construction projects and its consumption. Hence, the question of physical verification of the inventory conducted at reasonable intervals does not arise. Whereas, the closing stock of work in progress has been valued at cost. For transport services carried out by the company, the company is not required to maintain the inventory.

(10) EMPLOYEE BENEFITS

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company’s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

(11) BORROWING COSTS

Those borrowing costs that are attributable to the acquisition or construction of qualifying assets have to be capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs have to be charged to the Profit and Loss Statement in the period in which they are incurred. The company has not incurred any borrowing cost in regards to qualifying assets and thus all borrowing cost incurred during the period are charged to the Profit and Loss Statement.

(12) FOREIGN CURRENCY TRANSACTIONS

During the period under consideration no amount was remitted in foreign currency on account of traveling expenditure and no amount was remitted on account of dividend and there was no earning in foreign currency.

(13) SEGMENT REPORTING

The Company has identified three reportable segments on the basis of Business Segments viz.

Segments have been identified and reported taking into account nature of products and services, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the Company with following additional policies for segment reporting.

a) Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as “Unallocable”.

b) Segment Assets and Segment Liabilities represent Assets and Liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on reasonable basis have been disclosed as “Unallocable”.

According to AS 17 segment information needs to be presented only on the basis of the consolidated financial statements.

(15) EARNING PER SHARE

The Company reports basic earnings per share in accordance with Accounting Standard 20- “Earnings Per Share” notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. Basic earnings per share is computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The calculation of the same is as under:

(16) TAXATION

Tax expense comprises of current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Act, 1961), and deferred tax charge or benefit (i.e. reflecting the tax effect of timing differences between accounting income and taxable income for the year).

Current Tax

Provision for current tax is recognized based on estimated tax liability computed after adjusting for allowances, disallowances and exemptions in accordance with the Income Tax Act, 1961. The company has made no provision for current tax as the Company has no liability as per Income Tax Act, 1961. The Joint Ventures have made the Income Tax Provisions as per the Income Tax Act, 1961.

Deferred Tax

Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized when there is reasonable certainty that the asset can be realized in future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized to the extent there Is virtual certainty of realization of the assets.

Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain, as the case may be, to be realized.

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Mar 31, 2015

(1) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention, except for certain Fixed Assets which are carried at revalued amounts. The financial statements are presented in Indian rupees rounded off to the nearest rupees.

(2) USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

(3) FIXED ASSETS

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

(4) DEPRECIATION. AMORTISATION AND DEPLETION

Tangible Assets

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) Method except in respect of Mold (over its useful life as technically assessed - 3 Years) where useful life is different than those prescribed in Schedule II.

on account of changes in the method of depreciation as per Schedule II to the Companies , , there is depletion in the value of fixed assets amounting to Rs. 69,50,165/- has been transferred to the opening balance of Profit & Loss Account.

(5) INVESTMENTS

Non-Current investments are stated at cost.

During the year the Company has made an Investment in Joint Ventures namely KCL -SRPL (JV) & MCC - SRPL (JV) and their share of interest in it are 90 % &30 % respectively These Joint ventures are incorporated specially for projects as mentioned in JV agreement and they are for shorter period of approx two years.

As per Accounting Standard 27, the investment made in Joint Ventures falls under Jointly Controlled Entities which is incorporated as a separate entity. The accounts of the ventures does not required to be consolidated in the Financial Statements of the company in view of clause 28 (a) of AS 27 which says that accounts of JV does not require to be consolidated when the interest in JV was acquired and held exclusively with a view to its subsequent disposal in the near future. Hence interests in such jointly controlled entities are accounted for as an Investment made in it as per Accounting Standards 13.

(6) INVENTORIES

Inventory of Raw Materials are measured at lower of cost and net realizable value. Inventory of Work in Progress are stated at cost.

(7) REVENUE RECOGNITION

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services, service tax, excise duty and sales during trial run period, adjusted for discounts (net), and gain/loss on corresponding hedge contracts.

Dividend income is recognized when the right to receive payment is established.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

(8) BORROWING COSTS

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Statement in the period in which they are incurred.

(9) INCOME TAXFS

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognized if there is virtual certainty that sufficient future taxable income will be available to realize the same.

Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

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Mar 31, 2014

(1) SIGNIFICANT ACCOUNTING POLICIES.

(A) METHOD OF ACCOUNTING

The accounts of the company are prepared in accordance with the accounting-principles generally accepted by business units. The company follows mercantile system of accounting.

(B) RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized as and when earned and expenditure is accounted for as and when liability is incurred.

(C) FIXED ASSETS

Fixed Assets are stated at cost less Depreciation.

(D) DEPRECIATION

Depreciation on Fixed Assets has been provided on Written Down Value method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

(E)TAXATION

Provision for current tax is not made as the Company has incurred loss. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originate in one period and are capable of reversal in one or more subsequent periods.

(F) Accounts have been prepared on the assumption of going concern basis.

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Mar 31, 2013

(1) SIGNIFICANT ACCOUNTING POLICIES.

(A) METHOD OF ACCOUNTING

The accounts of the company are prepared in accordance with the accounting-principles generally accepted by business units. The company follows mercantile system of accounting.

(B) RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized as and when earned and expenditure is accounted for as and when liability is incurred.

(C) FIXED ASSETS

Fixed Assets are stated at cost less Depreciation.

(D) DEPRECIATION

Depreciation on Fixed Assets has been provided on Written Down Value method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

(E)TAXATION

Provision for current tax is not made as the Company has incurred loss. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originate in one period and are capable of reversal in one or more subsequent periods.

(F) Accounts have been prepared on the assumption of going concern basis.

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Mar 31, 2012

(A) METHOD OF ACCOUNTING

The accounts of the company are prepared in accordance with the accounting-principles generally accepted by business units. The company follows mercantile system of accounting.

(B) RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized as and when earned and expenditure is accounted for as and when liability is incurred.

(C) FIXED ASSETS

Fixed Assets are stated at cost less Depreciation.

(D) DEPRECIATION

Depreciation on Fixed Assets has been provided on Written Down Value method at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

(E)TAXATION

Provision for current tax is made on the basis of MAT provisions applicable to the company as the assessee falls under the MAT criteria for the payment of Income Tax. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originate in one period and are capable of reversal in one or more subsequent periods.

(F) Accounts have been prepared on the assumption of going concern basis.

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Mar 31, 2011

(a) Method of Accounting

The accounts of the company are prepared in accordance with the accounting principles generally accepted by business units. The company follows mercantile system of accounting.

(b) Recognition of Income and Expenditure:

Revenue is recognized as and when earned and expenditure is accounted for as and when liability is incurred for expenses.

(c) Fixed Assets :

Fixed Assets are stated at cost less depreciation.

(d) Depreciation

Depreciation is provided under “written down value” method at the rates prescribed by schedule XIV to the Companies Act 1956.

(e) Taxation

Provision for current tax is made on the basis of MAT Provisions applicable to the company as the assessee falls under the MAT criteria for the payment of Income Tax. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originate in one period and are capable of reversal in one or more subsequent periods.

(f) Accounts have been prepared on the assumption of going concern basis.