1.1 METHOD OF ACCOUNTING:
The company maintains its accounts on accrual basis. The financial
statements are prepared under the historical cost conversion and on the
accounting principles of a going concern.
1.2 FXED ASSETS:
Fixed Assets are stated at cost less depreciation.
Depreciation of fixed assets put to use have been provided for on the
WDV method at the rates as specified by schedule XIV of the Companies
All investments are considered as long term investments and are stated
1.5 INVENTORY VALUATION:
i) Raw materials and stores are valued at lower of cost or net
ii) Property development projects in progress are valued at lower of
cost and net realisable value (taking into consideration the estimate
cost to complete)
iii) Land (stock in trade) is valued at the lower of cost and net
1.6 REVENUE RECOGNITION:
i) The company follows the mercantile system of accounting and
Income and expenditure on accrual basis.
ii) Turnover on property development projects:
The company follows the percentage of completion method.
1.7 RETIRMENT BENEFITS:
a) Contribution to provident fund is made on actual liability and
accounted for on accrual basis. No provision has been made for the
retirement benefits of the employees.
b) Provisions of payment of Gratuity Act applies to the company. Even
though there are employees who have put in qualifying service to be
eligible for Gratuity, provision against liability was not made in the
c) Provisions of payment of Bonus Act are applicable to the company.
Hence as per the Act, Bonus @ of 8.33% amount of Rs.2,37,001/- and the
same was not provided in the accounts.
No dividend has been recommended by the board.