| a) Accounting Convention
The financial statements have been prepared on historical cost
convention and on accrual basis. The financial statements have been
prepared in accordance with the Accounting Standards as prescribed in
section 129 and 133 of Companies Act, 2013.
b) Use of Estimates
The preparation of the financial statements in conformity with the
Generally Accepted Accounting Principles applicable in India and the
provisions of the Companies Act, 2013 requires that the Management
makes estimates and assumptions that affect the reported amounts of the
assets and liabilities, disclosure of the contingent liabilities as at
the date of the Financial Statements and reported amount of the revenue
and expenses during the reported year. Actual results could defer from
those Estimates.
c) Fixed Assets
All fixed assets are stated at cost of acquisition, including any
attributable cost for bringing the assets to its working condition for
its intended use, less accumulated depreciation.
d) Depreciation, Amortisation and Impairment
Depreciation on fixed assets is charged on straight line method as per
the rates prescribed under Schedule II to the Companies Act, 2013
except that depreciation on fixed assets at the Business Centre at the
rate of 33'A per cent on the straight line method.
Impairment of assets is ascertained at each balance sheet date in
respect of the Company's fixed assets. An impairment loss is recognised
whenever carrying amount of an asset exceeds its recoverable amount.
The recoverable amount is the greater of the net selling price and
value in use, the estimated future cash flows are discounted to their
present value based on an appropriate discount factor.
e) Borrowing Costs
Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalised as a part of such assets. All other
borrowing costs are charged to revenue in the year in which they are
incurred.
f) Investments
Long term investments are stated at cost. Provision for diminution is
made to recognise a decline, other than temporary, in value of long
term investments where applicable.
Current investments are stated at lower of cost or Net Asset Value.
g) Cash and Cash Equivalents
Cash and cash equivalents in the Balance Sheet comprise cash at bank,
cheques on hand, cash in hand and demand deposits with an original
maturity of three months or less.
h) Revenue Recognition
Revenue from the Services to Occupants are accounted on accrual basis
per terms of contract (Excluding Service tax). Revenue in respect of
insurance / other claims, interest, commission etc. are recognised only
when there is reasonably certainty on accrual.
i) Employee Benefits
1. Short term employee benefits are recognised as an expense at the
undiscounted amount in the statement of profit and loss of the year in
which the related service is rendered.
2. Long -Term benefit
(i) Defined Contribution Plan: a. Provident Fund :
The eligible employee of the Company is entitled to receive post
employment benefits in respect of provident fund, in which both
employee and the Company make monthly contribution at a specified
percentage of the employee's eligible salary. (Currently 12% of
employee's eligible salary) The contribution is made to Employees
Provident Fund Organisation. Provident Fund is classified as Defined
Contribution Plan as the Company has no further obligation beyond
making the contribution. The Company contribution to Defined
Contribution Plan is charged to statement of Profit and Loss account.
j) Taxes on Income
a) Current Tax
Provision for Income Tax is determined in accordance with the
provisions the Income Tax Act, 1961.
b) Deferred Tax
Deferred tax is recognised on timing difference being the differences
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent period(s).
k) Provisions and Contingent Liabilities
a) A provision is recognised when there is present obligation as a
result of past event and it is obligation probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimate.
b) A disclosure for a contingent liability is made when there is a
possible or present obligation that may, but probably will not require
an outflow of resources. When there is a possible obligation in respect
of which the likelihood of out flow of resources is remote, no
provision or disclosure is made.
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