1.1 Presentation & Disclosure of Financial Statement
During tht year ended 31st March, 2012, the Revised Schedule IV
notified undei -he Companies. 056 has become applicable to the
company, for preparation and presentation of its financial statements.
The adaptation of Revised Schedule IV does net impact recognition and
measurement principles allowed for preparation of financial Statements.
However, it has significant impact or, the preservation etui d lccves
made in the financial statements. Assets and Liabilities have been
classified as Current and Non - Current as per the Company''s normal
operating cycle and other criteria set out in the Schedule IV of the
companies Act, 1956. Based on the nature of activity carried out by the
company and period between the procurement and realization in cash and
cash equivalents, the Company has ascertained its operating cycle as 5
Years for the purpose of Current - Non Current classification of assets
1.2 Accounting Concepts
The accounts are prepared on historical cost basis and as a going
concern.Company follows mercantile system of accounting and recognizes
income and expenditure-on accrual basis. The expenses are shown net of
recovery where ever there is any recovery against respective expenses.
1.3 Revenue Recognition
The revenues have been booked on accrual basis. No recognized revenue
has been deferred.
Investments are classified into Non - Currernt and Current Investments.
Non - Current Investments are carried at cost, while Current
Investments are carried individually at lower of cost and fair value
and the resultant decline, if any, is charges to revenue.
1.5 Use of Estimates
The Preparation of financial statements in conformity with General
Accepted Accounting Principles required the management to make
estimates and assumptions that affect the reported balances of assets
and liabilities as of the financial statements and reported amounts of
income and expense dring the period. Management believes that the
estimates used in the preparation of financial statements are prudent
1.6 Fixed Assets
Fixed Assets are stated at cost of acquisition including freight,
taxes, duties and other incidental expenses related to acquisition and
instalation, less depreciation.
1.7 Intangible Assets:
All intangible Assets are initially measures at cost and amortised so
as to reflect the pattern in which the assets'' economic benefits are
The Company provides depreciation on straight line method basis at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
1.9 Revenue Recognition
Income from sale of stock is recognized on the transfer of all
significant risk and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exits regarding the amount to considerations. However if,
at the time of transfer, substantial acts are yet to be performed under
the contract, revenue is recognized on proportionate basis as the time
acts are performed, i.e. on the percentage of completion basis.
Revenue from sale of land and other rights are considered upon transfer
of all significant risk and rewards of ownership of such real estate/
property as per the terms of the contract entered into with the buyers,
which is generally with the firmity of the sale contracts! an
Income from long term contracting assignments is also recognized on the
percentage of completion basis As the long term contracts necessarily
extend beyond one Year, revision in cost and revenues estimated during
the course of the contract are reflected in the accounting period in
which the facts requiring the revision become known. Any expected loss
on a project is recognized in the year in which costs incurred together
with balance cost to completion, cost of completion are likely to be
excess of the estimated - revenues from project. Unbilled costs are
carried as construction work - in - progress.
Determination of revenues under the percentage of completion method
necessarily involves making estimates by the company, some of which are
of a technical nature, concerning, where relevant, the percentage of
completion, cost to completion, the expected revenues from the project/
activity and the foreseeable losses to completion
Project management fees receivable on fixed period contracts is
accounted over the tenure of the contract/ agreement. Where the
management fee is linked to the input costs, revenue is recognized as a
proportion of the work complete based on progress claims submitted.
Whether the management fee is linked to the revenue generation from the
project, revenue is recognized on the percentage of completion basis
Income from operation of commercial complexes is recognized over the
tenure of the lease/ service agreement.
Interest income is accounted on an accrual basis at contracted rates
except where there is uncertainty of ultimate collection.
Dividend income is recognized when the right to receive the same is
1.10 Provision for Taxation
Tax expense comprises both current and deferred tax.
Current tax is measured at the amount expected to be paid to the tax
authorities, using the applicable tax rates laws.
Deferred tax assets and liabilities are recognized for futures tax
consequences attributable to the timing difference between taxable
income and accounting income that are capable of reversal in one or
more subsequent periods and are measured using tax rates enacted or
substantively enacted as the Balance Sheet date. Deferred Tax assets
are not recognized unless, in the management judgment, there is virtual
certainty that sufficient future taxable income will be available which
such deferred tax assets can be realized. The carrying amount of
deferred tax is reviewed at each balance sheet date.
1.11 Provisions and Contingent Liabilities
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past event but their existence is confirmed by the
occurrence or non- occurrence of one or more uncertain future events
not wholly within the control of the Company.
1.12 Prior Period Expenditure/ Extraordinary items
Wherever appears, the nature and amount of prior period items/
extraordinary items are separately disclosed in the profit and loss
account in such a manner that their impact on current years'' profit can
be perceived. There is no change in the accounting policy/ accounting
estimates, which has a material effect in the current year or which is
likely to have a material effect in the subsequent periods
1.13 Preliminary Expenses
Amortisation of preliminary expenses has been done as per Section 35-D
of the Income- tax Act over a period of Five years.