NOTES TO ACCOUNT AND OTHER DISCLOUSURE 1 Contingent Liability not provided for:- a) Bill discounted with the Bank Rs.: - Nil b) Bank guaranty outstanding as on 31-03-2015 Rs.:- Nil 2 a) The balance of some accounts in Long Term Loans & Advances given, Trade Receivable, Long Term Liabilities, Long Term Borrowings, Short Term Borrowings, Trade Payable and Other Current Liabilities are subject to reconciliation/confirmation and have been shown as per values appearing in the books of accounts as good for recovery/payment unless specifically provided for. b) In the opinion of the Board, the Current Assets and Loans & Advances would be,in the ordinary courses of business realize not less than the value stated in the balance sheet. c) The TDS receivable and Brokerage income are subject to reconciliation with the 26AS of income tax. d) Lease Hold Land: The company had purchased a residential plot in NOIDA.The matter is in dispute regarding ownership and allotment. The company is taking suitable legal action for this and the case is pending at Allahabad High Court . The amount had been shown as fixed assets in the Balance Sheet . 3 The company had invested Rs.465,000/- with Sahil and Elite Stock Broking Pvt.Ltd - for share allotment money in the year 19971998 but the shares were not alloted till date and amount shown under the share application money (Pending for allotment). No business was done in the company for last many years. 4 The Company has not received any information from parties, whether they are covered under the MICRO, Small and Medium Enterprises (Development) Act, 2006. Disclosure relating to amount unpaid at the year-end together with interest payable, if any, as required under the said Act are not ascertainable. 5 Previous year's figures have been regrouped/reclassified, wherever necessary, to correspond with the current year's classification / disclosure. 6 Significant accounting policies and practices adopted by the Company are disclosed in the statement annexed to these financial statements as Annexure I. NOTES AND ACCOUNTING POLICIES FORMING PART OF FINANCIAL STATEMENTS 1. CORPORATE INFORMATION Brand Realty Services Limited is a public company domiciled in India and incorporated under the provisions of The Indian Companies Act,1956. Its shares are listed on Bombay Stock Exchanges. Brand Realty Services Limited is primarily engaged in the business of Real Estate and it has started a new business acitivity as publishing of newspaper in the field of real estate segment. 2. SIGNIFICANT ACCOUNTING POLICIES a) BASIS OF brPARATION OF FINANCIAL STATEMENTS: i) The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP). The company has brpared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies(Accounts) Rules, 2014. ii) The accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year, except for the change in accounting policy. b) FIXED ASSETS AND DEbrCIATION: (i) Valuation of fixed assets Fixed assets are maintained at cost less accumulated debrciation. (ii) Debrciation and amortization Debrciation is calculated on straight line method on all other assets except the land as mentioned in under para , based on useful life of various assets, as specified in Schedule II to Companies Act, 2013, as amended from time to time. Debrciation for day to day is calculated when any asset is first put to use on any day during that month. Lease hold Land: The company had purchased a residential plot in NOIDA. The matter is in dispute regarding ownership and allotment. The company is taking suitable legal action for this and the case is pending at Allahabad High Court. The amount had been shown as fixed assets in the Balance Sheet and debrciation has not been provided for. (iii) Write-off losses on assets All assets dismantled/discarded are written off assuming that scrap value for the same is Nil. If and when such discarded assets are disposed off partially or fully, the amounts realized during the year on account of sale are credited to profit and loss account of that year. (iv) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortised on a straight line basis over their estimated useful economic life. The following are the acquired intangible assets: Software Cost of software is amortized over its useful life of 10 years starting from the year of project implementation. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized. c) FOREIGN EXCHANGE TRANSACTION: N. A. d) REVENUE RECOGNITION: i) Revenue/Income and Cost/Expenditure are being accounting on accrual basis, as they are earned or incurred. ii) Dividend income is recognised when the right to receive payment is established. iii) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable. e) EMPLOYEES RETIREMENT BENEFITS : • Provident Fund:- Contribution towards provident fund is made to the regulatory authorities. Such benefits are classified as defined contribution schemes as the Company does not carry any further obligations, apart from the contribution made on a monthly basis. • Gratuity: - The Company provides for gratuity, a defined Benefit plans (the "Gratuity Plan") covering eligible employees in accordance with the payment of Gratuity Act, 1972. The Gratuity plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the nature of employment.The Company's liability is actuarially determined at the end of each year. Actuarial losses / gains are recognized in the statement of Profit and Loss account in the year in which they arise. f) INVESTMENTS: Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Non-current investments are carried at cost and includes interest on the specific borrowings for the purposes of investment. g) INVENTORIES: Closing stock of properties have been valued at lower of cost or market value. h) CASH FLOW STATEMENT : The Cash Flow Statement is brpared by the indirect method set out in Accounting Standard 3 on Cash Flow Statement and brsents the cash flows by operating, investing and financing activities of the Company. Cash and Cash equivalents brsented in the Cash Flow Statement consist of cash on hand and demand deposits with banks. i) USE OF ESTIMATES: The brparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. j) SEGMENT REPORTING: The segments of the company have been identified in line with the Accounting Standard on segment reporting (AS17) taking into account the organisation structure as well as the differential risks and returns of these segments. The company's reportable operating segments consist of the following business group : * Real Estate/Publishing of Newspaper/Shares sale purchase business and Miscellaneous income Segment revenues, results and capital employed include the respective amounts identifiable to each of the segments. Other unallocable expenditure includes expenses incurred on common services provided to the segments which are not directly identifiable. • The expenses of employee benefits expenses has been bifurcated on the basis of revenue generated in each segment and the same has been shown as other administrative expenses in the segment of Publishing of News Paper. k) IMPAIRMENT OF FIXED ASSETS: An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the period in which an assets is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. l) EARNING PER SHARE: Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting Attributable taxes ) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. m) TAXATION : Tax expense for the period, comprises current tax and deferred tax for determining the net Profit/(Loss) for the year. Current tax is determined on the basis of tax liability on the total income computed under the provision of Income Tax Act, 1961, or tax for the year. Deferred Tax is recognised as timing difference. Deferred Tax charges is recognized by using current tax rates where there is unabsorbed debrciation or carry forward losses, deferred tax assets are recognized if there is virtual certainty of realization of such assets. Other deferred tax assets are recognised only to extent if there is reasonable certainty of realization of a such assets. Such assets reviewed at the end of each are Balance Sheet to reassess realization. FOR R. RASTOGI & CO. For and on behalf of the Board Chartered Accountants (Firm Registration No. 007527N) Sd/- RAJESH RASTOGI (Proprietor) M.No.86270 Sd/- NIKHIL AGARWAL (Chief Financial Officer) Sd/- KAMAL MANCHANDA (Whole Time Director) DIN 00027965 Sd/- ARUNA MANCHANDA (Director) DIN 00027965 Place : Delhi Date : 29-05-2015 |