NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016 1. Company Overview Ritesh Properties & Industries Ltd (the company) is a public limited company incorporated in India under the provisions of Companies Act, 1956. Its share is listed on Bombay Stock Exchange, Mumbai. The company is engaged in the development of Integrated Industrial Park on the land situated at Ludhiana Chandigarh Road, Ludhiana. 2. Significant Accounting Policies: (a) Accounting Convention The financial statements have been brpared under the historical cost convention in accordance with the generally accepted accounting principles and in accordance with the Accounting Standards applicable in India and the provisions of the Companies Act, 1956 as adopted consistently by the Company. (b) Fixed Assets All fixed assets are stated at cost less accumulated debrciation. Cost of the acquisition of new assets is inclusive of taxes and other incidental expenses. (c) Inventories The inventories have been determined on the basis of FIFO method and the basis of determining cost for various categories of inventories are as follows:- Stock (Real Estate) At Cost (d) Revenue Recognition 1) Sales are recognized to the extent of project completion basis. During the year, the management has certified that the development of Project has been completed to the extent of 95% till 31.03.2015 (Previous Year 90%) on mercantile basis. Accordingly the revenue has been recognized. 2) Foreign currency fluctuations during the year are accounted for on receipt basis during the year (Previous year NIL). 3) Vat tax liability is accounted for on the basis of sales/Vat tax returns filed and tax deposited by the Company. Additional liability, if any, arises at the time of assessment, will be accounted for in the year of finalization of assessment. (e) Foreign Exchange Transaction During the year the company has received old payment from foreign buyer. The difference between the amount receivable as per books and amount received has been credited to Fluctuation Account as income (Previous year NIL) (f) Debrciation Debrciation on fixed assets is provided using the straight-line-method with reference to the estimated economic lives of the fixed assets as brscribed by the Schedule II to the Companies Act, 2013. (g) Retirement Benefits Gratuity liability has been accounted for on accrual basis. Contribution to Provident Fund, Family Pension Scheme and E.S.I. are accounted for on accrual basis and charged to Profit & Loss Account accordingly. (h) Investment Investments are valued at cost. (i) Accounting of Taxes on Income No provision for current tax/Deferred Tax is made on the basis of estimated taxable income for the current accounting year, in accordance with the provision of Income Tax Act, 1961. The deferred tax for timing difference between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. Deferred tax asset arising from timing difference are recognized to the extent there is reasonable certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying value at each Balance Sheet date. (j) Use of Estimates The brparation of financial statements in conformity with generally accepted accounting policies in India requires management to make estimates and assumption that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. The Management believes that the estimates made in the brparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision of accounting estimates will be recognized prospectively in future periods. (k) Impairment of Assets The Company assesses at each balance sheet whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the Profit and Loss Statement. If at the balance sheet date there is an indication that a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at recoverable amount subject to a maximum of debrciated historical cost and is accordingly reversed in the Profit and Loss Statement. 3. Contingent Liabilities Bank Guarantee Rs. 110.00 Lacs (Previous Year Rs.2.00 Lacs) 4. Debit & Credit balances of the parties are subject to confirmation & reconciliation. 5. In the opinion of the Board, all the Current Assets, Loans & Advances have a value on realization in the ordinary course of business equivalent to the amount at which they are stated except as exbrssly stated otherwise. 6. Segment Reporting Segment reporting is not given as the company deals mainly in one segment and the disclosure requirements of Accounting Standards (AS)-17 on "Segment Reporting", issued by The Institute of Chartered Accountants of India are not applicable. 7. The Udyog Sahayak, Chandigarh has allotted 40 Acres of Land vide Letter No. US/337-U Dt. 22/04/94 in the name of the company. The sale deeds & possession of the above said land is with the company and its associate companies. The Hon'ble Subrme Court vide its order dated 25.03.2015 has decided the price enhancement cases and fixed the basic compensation of Rs.6.70 Lacs per Acre as decided by the Hon'ble High Court of Punjab and Haryana. Collector Land Acquisition, Department of Industries and Commerce, Punjab, Chandigarh. As soon as the demand will be raised against the company by the Collector Land Acquisition, Punjab, it shall be accounted for in the Books of Accounts. 8. Expenditure in Foreign Currency on Travelling is Rs. 1,99,861/- (P.Y Rs. 83,189/-). 9. Corresponding figures of brvious year have been regrouped / rearranged wherever deemed necessary. Signature to Notes 1 to 37 On Behalf of the Board Ritesh Properties and Industries Limited For S. M. Mathur& Co., Chartered Accountants (Firm Registration No. 006588N) sd/- (S.M. Mathur) Prop. M.No. 013066 sd/- (Sanjeev Arora) DIN - 00077748 Chairman-Cum- Managing Director sd/- (Kavya Arora) DIN - 02794500 Executive Director & CFO sd/- (Roop Kishore Fatehpuriya) DIN - 00887774 Executive Director sd/- (Tarandeep Kaur) ACS42144 Company Secretary |