NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2015 Company Overview: Coral India Finance & Housing Limited is a public company incorporated in India. Company is engaged in business of construction, development & maintenance of properties. NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES A. Basis of Accounting The Financial statements are brpared under the historical cost convention, on the accrual basis of accounting in accordance with applicable accounting standards and the provisions of the Companies Act, 2013. The company has brpared these financial statements to comply in all material respects with the Companies (Accounts) Rules 2014 and the relevant provisions of the Companies Act, 2013. B. Use of Estimates Preparation of Financial Statement is in conformity with Generally Accepted Accounting Principles which requires Company Management to make estimates and assumptions that affect reported balance of Assets & Liabilities and disclosures relating to Contingent Assets & Liabilities as on the date of Financials and reported amounts of income & expenses during the period. Examples of such estimate include profits expected to be earned on projects carried on by the Company, Contract Costs expected to be incurred to completion of project, provision for Doubtful Debts, Income Taxes, etc. Actual results could differ from these estimates. Differences, if any, between the actual result and estimates are recognized in the period in which the result are known or materialized. C. Fixed Assets Fixed Assets are shown at cost including directly attributable cost for bringing the assets to its working conditions for the intended use, less accumulated debrciation. D. Intangible Assets Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization / depletion. E. Impairment of Assets An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss, if any, is recognized in Statement of Profit & Loss Account to the extent of reduction. The impairment loss recognized in brvious accounting period, if any, is reversed if there is any change in estimate of the recoverable amount. F. Debrciation Debrciation on tangible assets is provided on written down value method over the useful life of assets as brscribed under Part C of Schedule II of the Companies Act, 2013. Debrciation for assets purchased /sold during a period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on written down value method, commencing from the date the asset is available to the Company for its use. G. Inventories Stock in trade comprises of the unsold residential units. The units are valued at total cost of construction including land, construction expenses and overheads directly attributable to the project. H. Investments Investments are classified into Current & Non-Current Investments. Current investments are stated at lower of cost/fair value. Non-Current investments are stated at cost. Provision for diminution in value is made only if such diminution is other than temporary. I. Revenue Recognition a) The revenue recognition for the construction activity is based on the percentage completion method in accordance with the relevant Guidance Notes & Accounting Standards. b) The Revenue from Sales is recognized net of Service Tax and VAT. c) In respect of Fund based activities, interest is accrued in respect of loans/advances where the accounts are regular. d) Share Investment profit is accounted on sale of shares. e) Dividend income is recognized as and when right to receive payment is established. f) Rental income / lease rentals are recognized on accrual basis in accordance with the terms of agreement. J. Provision for Tax and Deferred Tax Provision for tax is made after considering the benefits available under the provisions of The Income Tax Act 1961. Deferred Taxis accounted by computing the tax effect of timing difference which arises during the year and reversed in sub sequent year. K. Events Occurring after the date of Balance Sheet Material events occurring after the date of Balance Sheet are taken into cognizance. L. Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events and it is possible that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. M. Cash & Cash Equivalents Cash and cash equivalents comprise cash and deposit with banks and corporations. The company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. NOTE 2 During the year under review, the certificate of registration, granted to the company to carry business as Non-Banking Financial Institution (NBFC), has been cancelled by the Reserve Bank of India w.e.f. 26th August 2014. NOTE 3-Taxation a) Provision of Current Income Tax is made on after considering the effect of deduction under section 80IB of the Income Tax Act, 1961. b) Deferred Taxation: The deferred tax liabilities comprises of tax effect of timing differences mainly on account of debrciation. Deferred tax is recognized, subject to the consideration of prudence, on time differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. NOTE 4 - Previous year's figures have been recast / re-stated wherever necessary. For M. A. Parekh & Associates Chartered Accountants FRN : 121973W sd/- Manish Parekh Proprietor M. No. 044911 For and on behalf of the Board sd/- MR. NAVIN B. DOSHI Managing Director sd/- MR. SACHIN N. DOSHI Director & CFO sd/- MS. MANORAMA A. YADAV Company Secretary Place : Mumbai Date : 27th May 2015. |