Univa Foods Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

2 Significant Accounting Policies

2.1 Basis of preparation

The financial statements of the company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies(Indian Accounting Standards)(Amendment) Rules,
2016 and the relevant provisions of the Companies Act, 2013 ("the Act").

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy hitherto in use.

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been
- Derivative financial instruments,

2.2 Summary of significant accounting policies
Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Freehold land

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits

Borrowing costs directly attributable to acquisition of property, plant and equipment which take substantial period of time to get ready for its

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is classified as capital

An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized to
Costs of assets not ready for use at the balance sheet date are disclosed under capital work- in- progress.

Depreciation methods, estimated useful lives and residual value

Depreciation is calculated on written down value basis using the useful lives estimated by the management, which are equal to those
The property, plant and equipment acquired under finance leases is depreciated over the asset''s useful life or over the shorter of the asset''s

The residual values are not more than 5% of the original cost of the asset.

The assets'' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset''s carrying

Intangible assets
Computer software

Costs associated with maintaining software programmes are recognised as an expense as incurred. Development costs that are directly

- it is technically feasible to complete the software so that it will be available for use

- management intends to complete the software and use it

- there is an ability to use the software

- it can be demonstrated how the software will generate probable future economic benefits

- adequate technical, financial and other resources to complete the development and to use the software are available, and

- the expenditure attributable to the software during its development can be reliably measured.

Amortisation methods and periods

Intangible assets comprising of computer software are amortized on a straight line basis over the useful life of five years which is estimated
Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the
Investment properties

Property that is held for long-term rental yields or for capital appreciation or both, and that is not occupied by the company, is classified as

Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the

Investment properties are depreciated using the straight-line method over their estimated useful lives. Investment properties generally have
Investment properties are depreciated using the straight-line method over their estimated useful lives. Investment properties generally have

Impairment of non financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
Impairment losses are recognized in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying
Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the
As a lessee

A lease is classified at the inception date as a finance lease or an operating lease. Leases of property, plant and equipment where the
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as
As a lessor

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee.
Lease income from operating leases where the company is a lessor is recognised in income on a straight-line basis over the lease term unless
Inventories

Direct expenditure relating to real estate activity is inventorised. Other expenditure (including borrowing costs) during construction period is
Construction Work-in-progress: Represents cost incurred in respect of unsold area (including land) of the real estate development projects
Finished goods - Stock of Residential Flats: Valued at cost

Raw materials, components and stores: Valued at lower of cost and net realizable value. Cost is determined based on weighted average
Land stock: Valued at lower of cost and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs
Land

Advances paid by the Company to the seller/intermediary toward outright purchase of land is recognized as land advance under other assets

Foreign currency translation
Functional and presentation currency

Items included in the financial statements of the entity are measured using the currency of the primary economic environment in which the
Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign
Foreign exchange differences regarded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance

Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably
The Company collects taxes such as sales tax/value added tax, service tax, etc on behalf of the Government and, therefore, these are not
The following specific recognition criteria must also be met before revenue is recognized:

Recognition of revenue from real estate development

Revenue from real estate projects is recognized upon transfer of all significant risks and rewards of ownership of such real estate/ property,
Where the Company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards, revenue in
(a) all critical approvals necessary for the commencement of the project have been obtained;

When the outcome of a real estate project can be estimated reliably and the conditions above are satisfied, project revenue (including from
Income from leasing

Rental income receivable under operating leases (excluding variable rental income) is recognized in the income statement on a straight-line
Interest income

Interest income, including income arising from other financial instruments measured at amortized cost, is recognized using the effective
Dividend income

Revenue is recognised when the company''s right to receive the payment is established, which is generally when shareholders approve the
Share in profits of partnership firm investments

The Company''s share in profits from a firm where the Company is a partner, is recognized on the basis of such firm''s audited accounts, as per
Taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive
Deferred tax

Deferred income tax is recognized using the balance sheet approach, deferred tax is recognized on temporary differences at the balance
Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax
Minimum alternate Tax

MAT payable for a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT credit available in the
Financial Instruments

Financial assets and financial liabilities are recognised when a Company becomes a party to the contractual provisions of the instruments.
Initial Recognition

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or
Classification and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other comprehensive income

the entity''s business model for managing the financial assets and
the contractual cash flow characteristics of the financial asset.

(i) Amortised Cost

A financial asset shall be classified and measured at amortised cost if both of the following conditions are met:

- the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on

(ii) Fair Value through other comprehensive income

A financial asset shall be classified and measured at fair value through OCI if both of the following conditions are met:

- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling

- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on

(iii) Fair Value through Profit or Loss

A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the
Classification and Subsequent Measurement: Financial liabilities

Financial liabilities are classified as either financial liabilities at FVTPL or ''other financial liabilities''.

(i) Financial Liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition as FVTPL.

(ii) Other Financial Liabilities:

Other financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the
Impairment of financial assets

Financial assets, other than those at FVTPL, are assessed for indicators of impairment at the end of each reporting period. The Company
Derecognition of financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the
On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration
Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial
Equity investment in subsidiaries, joint ventures and associates

Investment in subsidiaries, joint ventures and associates are carried at cost. Impairment recognized, if any, is reduced from the carrying
Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal
Derivative financial instruments

Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are

Financial liabilities and equity instruments
Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance
Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity
Convertible financial instrument

Convertible instruments are separated into liability and equity components based on the terms of the contract.

On issuance of the convertible instruments, the fair value of the liability component is determined using a market rate for an equivalent non-

The remainder of the proceeds is allocated to the conversion option that is recognised and included in equity since conversion option meets
Transaction costs are apportioned between the liability and equity components of the convertible instrument based on the allocation of

Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the
The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement

(iii) Post-employment obligations

The company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity,

(b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit
The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately
Defined contribution plans

The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no
(vi) Termination benefits

Termination benefits are payable when employment is terminated by the company before the normal retirement date, or when an employee

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Mar 31, 2015

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental ; expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation will be provided on the basis of useful life of assets as specified in Schedule II to the ' Companies Act, 2013.Though during the current year there are no fixed assets on which depreciation need to be calculated.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments were shown at token value of Rs. 1/- by writing off the investment in earlier years. During the previous year the company has sold its stake in subsidiary namely Polar Finance Limited therefore to the extent of sale value the company has written back the investments which has been written off in earlier year.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are' no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of*Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2015 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to interest income from Inter Corporate deposits.

7) Inventories

During the current year there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognized as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i) Provision for the current tax is made on the assessable income at the relevant assessment year. ii) Deferred Tax is recognized, on timing differences, being* the difference between taxable income

and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

iii) Deferred Tax assets are recognized if there is reasonable certainty that there will be sufficient future profits available to realize such assets.

11) Provisions, Contingent Liabilities & Contingent Assets

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 recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

14) Initial Margin for Commodity Instruments Contract

Purchase and sale of commodity transaction is recorded at the price which is fixed between the buyer and the seller at the future date including the contracts open at the balance sheet date. The income is recognized when the contract term expires. The income is classified as other income from commodity gains.

Of the above (a) 99,800 Equity Shares of the face Value of Rs.10/- each were issued as fully-paid shares for consideration other than cash vide Memorandam of Understanding executed on 16-09-91 with M/s. Rugby Hotel, the erstwhile firm which was taken over by the company. (b) 2,940,000 Equity Shares were issued, as fully paid Bonus Shares on 29-9-93 by capitalizing ; revaluation reserve of Rs. 19,621,140/- and Capital reserve of Rs. 9,778,860/-.

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Mar 31, 2014

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided prorata on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments were shown at token value of Rs. 1/- by writing off the investment in earlier years. During the current year the company has sold its stake in subsidiary namely Polar Finance Limited therefore to the extent of sale value the company has written back the investments which has been written off in earlier year.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2014 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to other income during the current year.

7) Inventories

During the current year, there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognised as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i) Provision for the current tax is made on the assessable income at the relevant assessment year.

ii) Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. iii) Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

11) Provisions, Contingent Liabilities & Contingent Assets

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 recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

14) Initial Margin for Commodity Instruments Contract

Purchase and sale of commodity transaction is recorded at the price which is fixed between the buyer and the seller at the future date including the contracts open at the balance sheet date. The income is recognised when the contract term expires. The income is classified as other income from commoditiy gains.

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Mar 31, 2013

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided prorate on monthly basis. (ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments are shown at token value of Rs. 1/- by writing off the investment in earlier years. During the current year the company has sold one subsidiary namely Jai Thacker Land Development therefore to the extent of sale value the company has written back the investments which has been written off in earlier year.(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books. (iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd. The investment in subsidiary Jai Thacker Land development Ltd has been sold as on 30.09.2012(iv) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2013 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to other income during the current year.

7) Inventories

During the current year, there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognized as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset up to date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i) Provision for the current tax is made on the assessable income at the relevant assessment year. ii) Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods. iii) Deferred Tax assets are recognized if there is reasonable certainty that there will be sufficient future profits available to realize such assets.

11) Provisions, Contingent Liabilities & Contingent Assets

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 recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

13) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

14) Initial Margin for Commodity Instruments Contract

Purchase and sale of commodity transaction is recorded at the price which is fixed between the buyer and the seller at the future date including the contracts open at the balance sheet date. The income is recognized when the contract term expires. The income is classified as other income from commodity gains.

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Mar 31, 2012

1) System of Accounting

The Company generally adopts the mercantile system of accounting.

2) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

3) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided Prorate a on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

4) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments are shown at token value of Rs. 1/- by writing off the investment in earlier years.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.

(iv) Any other investment in share & mutual fund held, if any, are for long term period and diminution, if any, is temporary in nature and hence not provided.

5) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities, if any, which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary & The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

6) Sales & Business Segments

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2012 is commenced and therefore segment reporting is not applicable for the current year. The only income is pertaining to other income during the current year.

7) Inventories

During the current year, there are no Purchases & Sales and therefore no inventories are held.

8) Revenue Recognition

The revenue is recognised as and when it is accrued.

9) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

10) Accounting for Taxes on Income

i)Provision for the current tax is made on the assessable income at the relevant assessment year.

ii) Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

iii) Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

11) Provisions, Contingent Liabilities & Contingent Assets

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 recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

12) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

14) Cash Flow Statement

Cash flow Statement is prepared under the Indirect Method.

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Mar 31, 2011

(a) System of Accounting

The Company generally adopts the mercantile system of accounting.

(b) Fixed Assets

(i) The fixed assets acquired, if any, during the current year are stated at cost plus incidental expenses relating to the same.

(ii) The Major part of the fixed assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the previous years. Since all the fixed assets have been sold therefore the going concern concepts of the business has been affected.

(c) Depreciation

(i) Depreciation is provided under the Straight Line Method at the rate specified in Schedule XIV to the Companies Act, 1956. Depreciation on additions is provided prorata on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold/ disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.

(d) Investments

(i) The investments in unquoted and quoted shares (except in subsidiaries) are stated at cost. The subsidiaries investments are shown at token value of Rs. 1/- by writing off the investment in earlier years.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books.

(iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.

(iv) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

(e) Retirement Benefits

Since the last few years there are no major operations in the company and also there are no employees in the company and therefore other than any old liabilities if any which is not known, the provisions of The Payment of Gratuity Act, 1972, Leave Salary &The Employees Provident Fund & Miscellaneous Provision Act, 1952 are not applicable.

(f) Sales

The company has no sales from business of food or catering or hotel and no other new activity during the current year ended 31st March 2011 is commenced and therefore segment reporting is not applicable for the current year.

(g) Inventories:

During the current year, there are no Purchases & Sales and therefore no inventories are held.

(h) Revenue Recognition Timeshare Units sold

The company has sold the Hotel at Matheran during the previous years and correspondingly decided to settle all Timeshare deposit holder's amount. No revenue effect on account of Timeshare sale is therefore applicable during the current year.

(i) Borrowing Costs

Borrowing costs attributable to construction of asset are capitalized as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

(j) Accounting for Taxes on Income

Provision for the current tax is made on the assessable income at the relevant assessment year.

Deferred Tax is recognised, on timing differences, being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods.

Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

(k) Business Segments

Till the previous years, the company was engaged in the business of hoteliring, providing catering services and preparing and selling of sweet and savories. Hence the reportable business segments are Hotel, Catering Services and Sweet business. Since last few years there is no business segment except company is earning other income.

(l) Provisions, Contingent Liabilities & Contingent Assets

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 recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized, nor disclosed in the financial statements.

(m) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes } by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(n) Cash Flow Statement:

Cash flow Statement is prepared under the Indirect Method.

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Mar 31, 2010

(a) System of Accounting

The Company generally adopts the mercantile system of accounting.

(b) Fixed Assets

(i) The fixed assets acquired, if any, during the current period are stated at cost plus incidental expenses relating to the same. (ii) The Major part of the fixed, assets has been transferred/sold/disposed off during the year 2007 itself and the balance fixed assets are also sold during the current year. Since all the fixed assets have been sold off therefore the going concern concepts of the business has been affected.

(c) Depreciation

(i) Depreciation is provided under the Straight Line. Method at the rate specified in Schedule XIV to the Companies Act, 1956 Depreciation on additions is provided prorata on monthly basis.

(ii) The Gross Block & Corresponding depreciation is shown as deduction wherever assets are sold / disposed off during the year with Profit/ Loss adjusted to Profit & Loss A/c.



(d) Investments

(i) Original investments are stated at cost except that bonus shares received on investments have been capitalised at face value by crediting capital reserve account in earlier years and the said capitalisation is reversed in the year 30th September, 2005 by debiting Profit &Loss a/c.

(ii) Any depreciation or fall in investment value unless otherwise held for long term is provided in the books. AN the investments in subsidiaries have been brought down to Rs.1/- in earlier years.

(iii) The Company is currently having investment in subsidiaries namely, Polar Finance Ltd and Jai Thacker Land Development Ltd.

(iv) Any other investment in share & mutual fund held if any are for long term period and diminution, if any, is temporary in nature and hence not provided.

(e) Retirement Benefits

i. Till the previous period ended 31st December 2007, company was accounting gratuity on payment basis which was not in accordance with AS15, but during the current period ended 31st March 2010, there are currently no employees working with the company as explained by the management. As per management, the company has paid and discharged all the gratuity liability determined by the company during the previous periods. But in absence of actuarial valuation certificate, relating to previous period it is unascertained that whether the full gratuity liability is discharged or not.

ii.Though there are no employee but Leave Salary encashment if any relation to past employee is not provided & the amount is unascertained.

(f) Sales

The company has no sales from business of food or catering or hotel and no other new activity during the current period ended 31st March 2010 is commenced and therefore segment reporting is not applicable for the current year.

(g) Inventories:

During the current period, there are no Purchases & Sales and therefore no inventories are held.

(h) Revenue Recognition Timeshare Units sold

The company has sold the Hotel at Matheran during the last period and correspondingly decided to settle all Timeshare deposit holders amount. No revenue effect on account of Timeshare sale is therefore applicable during the current period.

(i) Borrowing Costs

Borrowing costs attributable to construction of asset are capatalised as a part of the cost of such asset upto date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Account.

(j) Accounting for Taxes on Income

Provision for the current tax is made on the assessable income at the Relevant assessment year. Deferred Tax is recognised, on timing differences, being the Difference between taxable income and accounting income that Originate in one period and capable of reversal in one or more Subsequent periods.

Deferred Tax assets are recognised if there is reasonable certainty that there will be sufficient future profits available to realise such assets.

(k) Business Segments

Till the previous years, the company was engaged in the business of hotelirirtg, providing catering services and preparing and selling of sweet and savories. Hence the reportable business segments are Hotel, Catering Services and Sweet business. Since last two years there is no business segment except company is earning other income.

(I) Provisions, Contingent Liabilities & Contingent Assets

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 recourses. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

(m) Earning per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes ) by the weighted average number of equity shares outstanding during the year, for the purpose of calculating diluted earning per shares, the net profit or loss for the year attributable to equity per shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

(n) Cash Flow Statement:

Cash flow Statement is prepared under the Indirect Method.