1. BASIS OF PREPARATION :
The Financial Statements are prepared under the historical cost
convention in accordance with generally accepted Accounting Principles
(GAAP) and materially comply with the Mandatory Accounting Standards
issued by the Institute of Chartered Accountants of India and the
provision of the Companies Act, 1956. All Income & Expenditure having a
material bearing on the Financial Statements are recognized on Accrual
2. USE OF ESTIMATES :
The preparation of Financial Statement in conformity with GAAP requires
management to make estimates and assumption that affect the reported
amount of Assets & Liabilities, disclosure of Contingent Liabilities at
the date of the Financial Statements and the reported amounts of
revenues and expenses during the reporting period. The actual results
could differ from these estimates.
3. VALUATION OF FIXED ASSETS :
Fixed Assets are stated at the cost of acquisition or Construction less
Depreciation provided thereon.
4. DEPRECIATION :
i) Depreciation on Fixed Assets is provided on S.L.M Method at the
rates as prescribed by Schedule XIV of The Companies Act, 1956.
ii) Depreciation is charged on pro-rata basis for assets Purchased /
Sold during the year.
iii) Land (whether Freehold or leasehold) is not depreciated.
5. BORROWING COSTS :
Borrowing costs that are directly attributable to the production of
qualifying assets (i.e. Commercial Complexes) are capitalized, while
the other borrowing costs are capitalized to Capital Work in progress.
6. INVESTMENTS :
The long-term investments are stated at cost. Temporary decline in the
value of investment (if any) is not recognized.
7. VALUATION OF INVENTORIES :
Closing Stock are as valued, taken and certified by the Director.
i) Stores, Spares, Building Materials, Loose Tools are valued at cost.
ii) Raw Materials are valued at cost.
iii) Project Work in Progress is valued at cost on the basis of
completion of work
8. REVENUE RECOGNITION :-
Revenue from business and other Related Business (Business Conducting
Charges) is recognized on the accrual basis and of percentage of block
9. PERSONAL EXPENSES :
Director has certified that no personal expenses have been charged in
the accounts during the year.