Basis of Accounting
In as much as the Project under implementation as undertaken by the
Company does not subsist, the Company has no business or activities for
any assumption or presumption of a going concern, and the financial
statements are prepared under the historical cost convention for
related costs and losses, in accordance with generally accepted
accounting principles and provisions of the Companies Act, 1956.
The aggregate expenditure incurred for the year ending March 31, 2011
amounted to Rs.12.59 Lakhs, also written off towards the Loss of
Fixed Assets, Depreciation, Amortisation
a. Fixed Assets are stated at their cost of acquisition [also refer
Note 1 and 5(e)]
b. Freehold Land is also stated at it cost of acquisition.
c. Depreciation of Fixed Assets was provided on Straight Line Basis at
the rates and in the manner prescribed by Schedule XIV of the Companies
Save and except the above, the Company has no Fixed Assets and
therefore, the accounting policies are restated only to the extent of
Project undertaking costs and losses incorporated in the accounts.
Foreign Currency Transactions
Foreign Currency Transactions were recorded at the exchange rates
existing at the time of transaction. Foreign Currency Loans in respect
of fixed assets were restated at the closing rates prevailing as at the
balance sheet dates and exchange variations arising thereon are
adjusted to the cost of the related assets and/or expenses. However, as
the entire principal foreign currency loan have fallen due, though not
paid as scheduled; the provision or adjustment has been made for all
dues as per recovery proceedings stated in Note 5(d) including any
loss/gain on exchange fluctuation and the corresponding cost of
assets/liabilities/pre-operative expenses pending capitalization up to
the date of such proceedings. Accordingly, no exchange fluctuations
have arisen for the year ending March 31,2011.