1. Since the company is trading on land and there is no income from
financial transactions or public deposits, the audit report applicable
to Manufacturing and trading companies is adopted.
2. The financial statement have been prepared under the historical cost
convention and on the basis of going concern and the system of
accounting followed is Mercantile system in accordance with the
generally accepted accounting principles and the provisions of the
Companies Act, 1956 as adopted consistently by the company. Accounting
policies not specifically referred to are consistent with generally
accepted principles followed by the company.
Long Term Investments are stated at cost without providing any
diminution in values as required by AS -13 Accounting Standard issued
by ICAI. In our opinion, investment in shares to the extent of Rs.
30,05,000 requires provision.
Income is recognized at the point of sales of land.
All expenses are accounted on accrual basis.
E. Sundry Debtors, Creditors, Loans and Advances are subject to
F. Sundry debtors to the extent of Rs.22,63,044/- outstanding for more
than 3 years considered bad and doubtful for recovery is written off as
bad debts by the management.
G. Sundry Crditors does not contain any SSI outstanding for more than