Labh Construction & Industries Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2014

I. DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared under historical cost convention on accrual basis, in accordance with generally accepted accounting principles in compliance with applicable accounting standards, as per the provisions of Companies Act, 1956, unless stated otherwise.

The accounts are maintained on "accrual" basis except in certain cases where the relevant items are accounted for on cash basis, more specifically in the case of income by way of Insurance Claim, income on Investment/ deposits, sale of parking slots, escalation claim and expenses in the nature of penalty for delayed/deficient work of the contracts as well as those payable due to delayed payment to its suppliers/contractors.

II. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

III. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. Cost includes purchase price and all other attributable costs of bringing the asset to working condition to intended use.

IV. IMPAIRMENT OF ASSETS

As per a preliminary assessment carried out by the management as on the balance sheet date, there is no indication of any substantial loss on account of impairment in the value of the assets. In the opinion of the management the assets are likely to recover the value at which these are stated in the accounts, on an overall basis. Hence no provision has been made for impairment loss of assets. However the company has initiated steps to identify impairment loss arising in case of each of the assets where recoverable amount is lower than the amount carried in the accounts. The provision for any loss arising on the same shall be provided in the accounts after completion of the exercise.

V. INVESTMENTS

Long term investments are carried at cost of acquisition thereof, except in case of one company whose net worth has been totally eroded and where management is not confident of recovery; such investment has been written off.

VI. DEPRECIATION

a) Depreciation on fixed assets, has been provided on written down value at the rates specified under Schedule-XIV of Companies Act, 1956. However the assets comprised in Plant, Machinery, equipments and Commercial vehicles could not be used for the purpose of business of the company during the year. However depreciation has been charged thereupon in view of normal wear and tear of such assets.

b) Depreciation on additions to /deduction from the assets, during the year is provided on pro-rata basis.

VII. CASH FLOW STATEMENTS

Cash flow statement giving summary of cash receipts and payments by the company duly classified into operating activities, financing activities and investing activities have been annexed to the notes forming part of balance sheet.

VIII. REVENUE RECOGNITION

1 The company did not have any project under development or contractual assignment during the year

2 Revenue of sale of real estate assets held as stock in trade have been recognised upon sale thereof Revenue by way of sale of parking slots/extra work in the projects developed by the company is being accounted for on receipt basis

IX. PRIOR PERIOD ITEMS

Material items of income and expenditure pertaining to earlier years, to the extent distinctly identifiable, are separately disclosed in the Profit & Loss account.

X. EVENTS OCCURRING AFTER BALANCE SHEET DATE AND EXTRA-ORDINARY ITEMS

Extra-ordinary items materially affecting operation of company are being separately disclosed by way of specific notes.

XI. RETIREMENT BENEFITS AND PROVIDENT FUND

Retirement benefits payable to the employees including, gratuity and leave encashment are accounted for on cash basis.

XII. RELATED PARTY DISCLOSURES

The disclosure of all related party transactions giving name of the related party, nature of relation, nature of transactions, volume of transactions, and their balances as at the balance sheet date have been annexed to the notes forming part of the balance sheet. The disclosure in that respect being made by, the management has been accepted by the auditor.

XIII. PROVISIONS AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities existing on the date of balance sheet as well as events subsequent thereto, which in the opinion of the management have material impact on the affairs of company, as at the date of balance sheet, are disclosed by way of notes.

XIV. ACCOUNTING FOR TAXES

a) Deferred Tax Liability is recognized for timing difference between the accounting income and taxable income for the year that originates in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates enacted as on the balance sheet date. However, deferred tax asset in respect of the brought forward losses and other set off claims has not been recognised in view of uncertainty with regard to the availability of sufficient future income against which such deferred tax asset can be realized.

b) No provision for current tax has been made during the year, in view of loss.

XV. EARNING PER SHARE

Earning per share of issued, subscribed and paid-up capital of Company is disclosed by way of notes.

XVI. SEGMENT REPORTING

As the company has not conducted business during the year, it has not identified any reportable business segments.

XVII. BORROWING COSTS

Borrowing cost directly attributable to the acquisition of a qualifying asset till the time such asset is put to use of the business, is considered as a part of cost of that asset. Other borrowing costs are recognized as expenditure in the year in which they are incurred.

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Mar 31, 2013

I DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared under historical cost convention on accrual basis, in accordance with generally accepted accounting principles in compliance with applicable accounting standards, as per the provisions of Companies Act, 1956, unless stated otherwise.

The accounts are maintained on "accrual" basis except in certain cases where the relevant items are accounted for on cash basis, more specifically in the case of income by way of Insurance Claim, income on Investment/ deposits, escalation claim and expenses in the nature of penalty for delayed/deficient work of the contracts as well as those payable due to delayed payment to its suppliers/contractors.

II. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

III. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. Cost includes purchase price and all other attributable costs of bringing the asset to working condition to intended use.

IV. IMPAIRMENT OF ASSETS

As per a preliminary assessment carried out by the management as on the balance sheet date, there is no indication of any substantial loss on account of impairment in the value of the assets. In the opinion of the management the assets are likely to recover the value at which these are stated in the accounts, on an overall basis. Hence no provision has been made for impairment loss of assets. However the company has initiated steps to identify impairment loss arising in case of each of the assets where recoverable amount is lower than the amount carried in the accounts. The provision for any loss arising on the same shall be provided in the accounts after completion of the exercise.

V. INVESTMENTS

Long term investments are carried at cost of acquisition thereof, except in case of one company whose net worth has been totally eroded and where management is not confident of recovery; such investment has been written off.

VI. DEPRECIATION

a) Depreciation on fixed assets, has been provided on written down value at the rates specified under Schedule- XIV of Companies Act, 1956.

b) Depreciation on additions to /deduction from the assets, during the year is provided on pro-rata basis.

VII. CASH FLOW STATEMENTS

Cash flow statement giving summary of cash receipts and payments by the company duly classified into operating activities, financing activities and investing activities have been annexed to the notes forming part of balance sheet.

VIII. REVENUE RECOGNITION

1 The company did not have any project under development or contractual assignment during the year

2 Revenue of sale of real estate assets held as stock in trade have been recognised upon sale thereof

3 Revenue by way of sale of parking slots/extra work in the projects developed by the company is being accounted for on receipt basis

IX. PRIOR PERIOD ITEMS

Material items of income and expenditure pertaining to earlier years, to the extent distinctly identifiable, are separately disclosed in the Profit & Loss account.

X. EVENTS OCCURING AFTER BALANCE SHEET DATE AND EXTRA-ORDINARY ITEMS

Extra-ordinary items materially affecting operation of company are being separately disclosed by way of specific notes.

XI. RETIREMENT BENEFITS AND PROVIDNET FUND

Retirement benefits payable to the employees including, gratuity and leave encashment are accounted for on cash basis.

XII. RELATED PARTY DISCLOSURES

The disclosure of all related party transactions giving name of the related party, nature of relation, nature of transactions, volume of transactions, and their balances as at the balance sheet date have been annexed to the notes forming part of the balance sheet. The disclosure in that respect being made by, the management has been accepted by the auditor.

XIII. PROVISIONS AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities existing on the date of balance sheet as well as events subsequent thereto, which in the opinion of the management have material impact on the affairs of company, as at the date of balance sheet, are disclosed by way of notes.

XIV. ACCOUNTING FOR TAXES

a) Deferred Tax Liability is recognized for timing difference between the accounting income and taxable income for the year that originates in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates enacted as on the balance sheet date. However, deferred tax asset in respect of the brought forward losses and other set off claims has not been recognised in view of uncertainty with regard to the availability of sufficient future income against which such deferred tax asset can be realized.

b) No provision for current tax has been made during the year, in view of set off claim of brought forward loss.

XV. EARNING PER SHARE

Earning per share of issued, subscribed and paid-up capital of Company is disclosed by way of notes.

XVI. SEGMENT REPORTING

As the company has not conducted business during the year, it has not identified any reportable business segments.

XVII. BORROWING COSTS

Borrowing cost directly attributable to the acquisition of a qualifying asset till the time such asset is put to use of the business, is considered as a part of cost of that asset. Other borrowing costs are recognized as expenditure in the year in which they are incurred.

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Mar 31, 2012

I DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared under historical cost convention on accrual basis, in accordance with generally accepted accounting principles in compliance with applicable accounting standards, as per the provisions of Companies Act, 1956, unless stated otherwise.

The accounts are maintained on "accrual" basis except in certain cases where the relevant items are accounted for on cash basis, more specifically in the case of income by way of Insurance Claim, income on Investment/ deposits, escalation claim etc.

II. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

III. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation. Cost includes purchase price and all other attributable costs of bringing the asset to working condition to intended use.

IV. IMPAIRMENT OF ASSETS

As per a preliminary assessment carried out by the management as on the balance sheet date, there is no indication of any substantial loss on account of impairment in the value of the assets. In the opinion of the management the assets are likely to recover the value at which these are stated in the accounts, on an overall basis. Hence no provision has been made for impairment loss of assets. However the company has initiated steps to identify impairment loss arising in case of each of the assets where recoverable amount is lower than the amount carried in the accounts. The provision for any loss arising on the same shall be provided in the accounts after , completion of the exercise.

V. INVESTMENTS

Long term investments are carried at cost of acquisition thereof, except in case of one company whose net worth has been totally eroded and where management is not confident of recovery; such investment has been written off.

VI. DEPRECIATION

a) Depreciation on fixed assets, has been provided on written down value at the rates specified under Schedule- XIV of Companies Act, 1956.

b) Depreciation on additions to /deduction from the assets, during the year is provided on pro-rata basis.

c) Depreciation on revalued amount of an office building is charged to the revenue. Depreciation of another office building not in use for the purpose of business has not been provided.

VII. CASH FLOW STATEMENTS

Cash flow statement giving summary of cash receipts and payments by the company duly classified into operating activities, financing activities and investing activities have been annexed to the notes forming part of balance sheet.

VIII. REVENUE RECOGNITION

1 The company did not have any project under development or contractual assignment during the year

2 Revenue of sale of real estate assets held as stock in trade have been recognised upon sale thereof

3 Revenue by way of sale of parking slots/extra work in the projects developed by the company is being accounted for on receipt basis

IX. PRIOR PERIOD ITEMS

Material items of income and expenditure pertaining to earlier years, to the extent distinctly identifiable, are separately disclosed in the Profit & Loss account.

X. EVENTS OCCURING AFTER BALANCE SHEET DATE AND EXTRA-ORDINARY ITEMS

Extra-ordinary items materially affecting operation of company are being separately disclosed by way of specific notes.

XI. RETIREMENT BENEFITS AND PROVIDNET FUND

Retirement benefits payable to the employees including, gratuity and leave encashment are accounted for on cash basis.

XII. RELATED PARTY DISCLOSURES

The disclosure of all related party transactions giving name of the related party, nature of relation, nature of transactions, volume of transactions, and their balances as at the balance sheet date have been annexed to the notes forming part of the balance sheet.

XIII. PROVISIONS AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized vyhen there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities existing on the date of balance sheet as well as events subsequent thereto, which in the opinion of the management have material impact on the affairs of company, as at the date of balance sheet, are disclosed by way of notes.

XIV. ACCOUNTING FORTAXES

a) Deferred Tax Liability is recognized for timing difference between the accounting income and taxable income for the year that originates in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates enacted as on the balance sheet date. However, deferred tax asset in respect of the brought forward losses and other set off claims has not been recognised in view of uncertainty with regard to the availability of sufficient future income against which such deferred tax asset can be realized.

b) No provision for current tax has been made during the year, in view of set off claim of brought forward loss.

XV. EARNING PER SHARE

Earning per share of issued, subscribed and paid-up capital of Company is disclosed by way of notes.

XVI. SEGMENT REPORTING

Based on activities/of the company during the year, the management has not identified any reportable business segments.

XVII. BORROWING COSTS

Borrowing cost directly attributable to the acquisition of a qualifying asset till the time such asset is put to use of the business, is considered as a part of cost of that asset. Other borrowing costs are recognized as expenditure in the year in which they are incurred.

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Mar 31, 2011

I. DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared under historical cost convention on accrual basis, in accordance with generally accepted accounting principles in compliance with applicable accounting standards, as per the provisions of Companies Act, 1956, unless stated otherwise.

The accounts are maintained on "accrual" basis except in certain cases where the relevant items are accounted for on cash basis, more specifically in the case of income by way of Insurance Claim, income on Investment/ deposits, escalation claim etc.

II. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

III. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation except an office building which is stated at revalued amount. Cost includes purchase price and all other attributable costs of bringing the asset to working condition to intended use.

IV. IMPAIRMENT OF ASSETS

As per a preliminary assessment carried out by the management as on the balance sheet date, there is no indication of any substantial loss on account of impairment in the value of the assets. In the opinion of the management the assets are likely to recover the value at which these are stated in the accounts, on an overall basis. Hence no provision has been made for impairment loss of assets. However the company has initiated steps to identify impairment loss arising in case of each of the assets where recoverable amount is lower than the amount carried in the accounts. The provision for any loss arising on the same shall be provided in the accounts after completion of the exercise.

V. INVESTMENTS

Long term investments are carried at cost of acquisition thereof.

VI. VALUATION OF INVENTORIES

There is no inventory at the beginning of the year or at the end of the year

VII. DEPRECIATION

a) Depreciation on fixed assets, except those comprised in centering materials, has been provided on written down value at the rates specified under Schedule-XIV of Companies Act, 1956. While depreciation on the assets comprised in centering material is provided at rates calculated on the basis of useful life of the asset and its realizable value thereafter, both estimated by the management.

b) Depreciation on additions to /deduction from the assets, during the year is provided on pro-rata basis.

c) Depreciation on revalued amount of an office building is charged to the revenue. Depreciation of another office building not in use for the purpose of business has not been provided.

VIII. CASH FLOW STATEMENTS

Cash flow statement giving summary of cash receipts and payments by the company duly classified into operating activities, financing activities and investing activities have been annexed to the notes forming part of balance sheet.

IX. REVENUE RECOGNITION

The only revenue booked by the company during the year is in respect of extra work/escalation receipts as well as other receipts from members of the projects completed by it in earlier years which is accounted for on cash basis.

X. PRIOR PERIOD ITEMS

Material items of income and expenditure pertaining to earlier years, to the extent distinctly identifiable, are separately disclosed in the Profit & Loss account.

XI. EVENTS OCCURING AFTER BALANCE SHEET DATE AND EXTRA-ORDINARY ITEMS Extra-ordinary items materially affecting operation of company are being separately disclosed by way of specific notes.

XII. RETIREMENT BENEFITS AND PROVIDNET FUND

Retirement benefits payable to the employees including, gratuity and leave encashment are accounted for on cash basis.

XIII. RELATED PARTY DISCLOSURES

The disclosure of all related party transactions giving name of the related party, nature of relation, nature of transactions, volume of transactions, and their balances as at the balance sheet date have been annexed to the notes forming part of the balance sheet.

XIV. PROVISIONS AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities existing on the date of balance sheet as well as events subsequent thereto, which in the opinion of the management have material impact on the affairs of company, as at the date of balance sheet, are disclosed by way of notes.

XV. ACCOUNTING FOR TAXES

a) Deferred Tax Liability is recognized for timing difference between the accounting income and taxable income for the year that originates in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates enacted as on the balance sheet date. However, deferred tax asset in respect of the brought forward losses and other set off claims has not been recognized in view of uncertainty with regard to the availability of sufficient future income against which such deferred tax asset can be realized.

b) No provision for current tax has been made during the year, in view of loss.

XVI. EARNING PER SHARE

Earning per share of issued, subscribed and paid-up capital of Company is disclosed by way of notes.

XVII. SEGMENT REPORTING

Based on activities/risk & reward structure the company has identified following two reportable business segments:

a) Real Estate development activity carried out in respect of residential/commercial projects, which are variable price contracts, and

b) Construction contract activity comprising of, construction carried out on contractual basis, which are fixed price contracts.

Details of turnover, profit, carrying value of assets and liabilities are stated in the statement annexed to the notes forming part of balance sheet.

XVIII. BORROWING COSTS

Borrowing cost directly attributable to the acquisition of a qualifying asset till the time such asset is put to use of the business, is considered as a part of cost of that asset. Other borrowing costs are recognized as expenditure in the year in which they are incurred.

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Mar 31, 2010

I. DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements have been prepared under historical cost convention on accrual basis, in accordance with generally accepted accounting principles in compliance with applicable accounting standards, as per the provisions of Companies Act, 1956, unless stated otherwise.

The accounts are maintained on "accrual" basis except in certain cases where the relevant items are accounted for on cash basis, more specifically in the case of income by way of Insurance Claim, income on Investment/ deposits, escalation claim etc.

II. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

III. FIXED ASSETS

Fixed assets are stated at cost of acquisition less depreciation except an office building which is stated at revalued amount. Cost includes purchase price and all other attributable costs of bringing the asset to working condition to intended use.

IV. IMPAIRMENT OF ASSETS

As per a preliminary assessment carried out by the management as on the balance sheet date, there is no indication of any substantial loss on account of impairment in the value of the assets. In the opinion of the management the assets are likely to recover the value at which these are stated in the accounts, on an overall basis. Hence no provision has been made for impairment loss of assets. However the company has initiated steps to identify impairment loss arising in case of each of the assets where recoverable amount is lower than the amount carried in the accounts. The provision for any loss arising on the same shall be provided in the accounts after completion of the exercise.

V. INVESTMENTS

Long term investments are carried at cost of acquisition thereof.

VI. VALUATION OF INVENTORIES

a) Inventory of building materials is valued 'at cost' on FIFO basis.

b) Since all the significant risks and rewards associated with developmental projects are borne by the company, inventory of Work in Progress in respect of the same is valued in the following manner:

- Valuation of booked premises is done on the basis of booking proceeds realizable proportionate to the work completed on such premises.

- Valuation of unlooked premises is done on the basis of estimated total cost to complete the respective premises, proportionate to the extent of work completed on such premises.

The estimates of extent of work completed, that of total estimated cost and that in respect of booking proceeds realizable upon completion of premises are prepared and certified by the management. Such estimates are periodically revised by the management. The effect of such changes to estimates is recognized in the period such changes are determined.

c) Inventory of work in progress in case of material work being completed in respect of contractual assignments, being fixed price contracts, is valued at realizable value, based upon the contracted rates. However in case where material part of work is not carried out, such inventory is valued at actual cost incurred by the company thereupon. The extent of work completion being technical in nature is determined by the management.

d) In respect of development projects, significant risks and rewards being borne by the company, the inventory of work completed on the premises whether booked or not, is shown as company's inventory until completion of the entire project as well as completion of the formalities of transfer and handing over possession to the respective principals/members. Further, booking advances collected by the company on behalf of its principals in respect of such premises are shown as current liability in the accounts of the company.

VII. DEPRECIATION

a) Depreciation on fixed assets, except those comprised in cantering materials, has been provided on written down value at the rates specified under Schedule-XIV of Companies Act, 1956. While depreciation on the assets comprised in cantering material is provided at rates calculated on the basis of useful life of the asset and its realizable value thereafter, both estimated by the management.

b) Depreciation on additions to /deduction from the assets, during the year is provided on pro-rata basis.

c) Depreciation on revalued amount of an office building is charged to the revenue. Depreciation of another office building not in use for the purpose of business has not been provided.

VIII. CASH FLOW STATEMENTS

Cash flow statement giving summary of cash receipts and payments by the company duly classified into operating activities, financing activities and investing activities have been annexed to the notes forming part of balance sheet.

IX. REVENUE RECOGNITION

a) In respect of development project division, revenue is recognized,

i. During the currency of project, on percentage completion method , as per the Guidance Note on Revenue Recognition by the Real Estate Developers issued by The Institute of Chartered Accountants of India based upon valuation of work-in progress at the year end, as stated in foregoing para of inventory valuation, and,

ii. Final adjustment (revenue/loss) is made, upon realization out of project after its completion, based upon the terms of agreements with respective principals.

iii. Revenue from sale of Development Rights is recognized on transfer of the rights to the buyer.

b) In respect of Construction Contracts division, revenue is recognized upon completion of any particular work, by way of running account bills raised on the principals. In respect of the uncertified and unbilled work at the year end, revenue, if any comprised therein, is recognized based upon valuation of work-in -progress, as stated in foregoing Para of inventory valuation.

c) Income of extra work/escalation receipts as well as any other receipts from members is accounted for on cash basis.

X. PRIOR PERIOD ITEMS

Material items of income and expenditure pertaining to earlier years, to the extent distinctly identifiable, are separately disclosed in the Profit & Loss account.

XI. EVENTS OCCURING AFTER BALANCE SHEET DATE AND EXTRA-ORDINARY ITEMS Extra-ordinary items materially affecting operation of company are being separately disclosed by way of specific notes.

XII. RETIREMENT BENEFITS AND PROVIDNET FUND

Retirement benefits payable to the employees including, gratuity and leave encashment are accounted for on cash basis.

XIII. RELATED PARTY DISCLOSURES

The disclosure of all related party transactions giving name of the related party, nature of relation, nature of transactions, volume of transactions, and their balances as at the balance sheet date have been annexed to the notes forming part of the balance sheet.

XIV. PROVISIONS AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent assets are neither recognized nor disclosed in the financial statements. Contingent Liabilities existing on the date of balance sheet as well as events subsequent thereto, which in the opinion of the management have material impact on the affairs of company, as at the date of balance sheet, are disclosed by way of notes.

XV. ACCOUNTING FOR TAXES

a) Deferred Tax Liability is recognized for timing difference between the accounting income and taxable income for the year that originates in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates enacted as on the balance sheet date. However, deferred tax asset in respect of the brought forward losses and other set off claims has not been recognised in view of uncertainty with regard to the availability of sufficient future income against which such deferred tax asset can be realized.

b) No provision for current tax has been made during the year, in view of loss.

XVI. EARNING PER SHARE

Earning per share of issued, subscribed and paid-up capital of Company is disclosed by way of notes.

XVII. SEGMENT REPORTING

Based on activities/risk & reward structure the company has identified following two reportable business segments:

a) Real Estate development activity carried out in respect of residential/commercial projects, which are variable price contracts, and

b) Construction contract activity comprising of, construction carried out on contractual basis, which are fixed price contracts.

Details of turnover, profit, carrying value of assets and liabilities are stated in the statement annexed to the notes forming part of balance sheet.

XVIII. BORROWING COSTS

Borrowing cost directly attributable to the acquisition of a qualifying asset till the time such asset is put to use of the business, is considered as a part of cost of that asset. Other borrowing costs are recognized as expenditure in the year in which they are incurred.