Balaji Hotels and Enterprises Ltd. कंपली की लेखा नीति

Mar 31, 2014

A. BASIS OF ACCOUNTING:

Financial statements are prepared under the historical cost convention and as a going concern, on accrual basis and in accordance with the normally accepted accounting standards.

b. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, taxes and any directly attributable cost of bringing the assets to their working condition for intended use.

c. DEPRECIATION:

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. However, for Assets given on Lease, Depreciation has been charged equally over the lease period.

d. INVENTORIES:

As the Operations in Distillery Division at Goa have been suspended for the past eleven years, the stocks maintained were unusable for commercial purpose and hence have been fully written off.

e. INVESTMENTS:

Investments are long term and stated at cost. Provision has been created in the accounts for permanent diminution in the value of Investments.

f. FOREIGN CURRENCY TRANSACTIONS:

All foreign currency transactions are accounted for at the rates prevailing on the dates of the transaction. Foreign currency liabilities are converted at the year end rates as applicable.

The exchange difference on settlement / conversion is adjusted to a) cost of fixed assets, if the foreign currency liability relates to fixed assets and b) Profit and Loss account in all other cases.

g. REVENUE RECOGNITION:

Revenue is recognised at agreed rates on transfer of property in goods. With respect to operating lease, lease rentals are accounted as and when due.

h. RETIREMENT BENEFITS:

Contribution to Provident Fund, Family Pension Fund and approved LIC Group Gratuity Scheme are charged in the year in which they are incurred. Provisions for Leave Encashment have been made as per the eligibility of the employees as at the end of the year on actual basis.

i. TAXES ON INCOME:

Tax on Income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act 1961.

Deferred Tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws that are enacted or substantially enacted as on the Balance Sheet date, where there is a carry forward loss or depreciation. Deferred tax asset is recognised in books of accounts only when there is reasonable certainty with respect to the future profits.

j. BORROWING COSTS:

Borrowing costs that are attributable to construction of qualifying assets are capitalised as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

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Mar 31, 2012

A. BASIS OF ACCOUNTING:

Financial statements are prepared under the historical cost convention and as a going concern, on accrual basis and in accordance with the normally accepted accounting standards.

b. FIXED ASSETS:

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, taxes and any directly attributable cost of bringing the assets to their working condition for intended use.

c. DEPRECIATION:

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. However, for Assets given on Lease, Depreciation has been charged equally over the lease period.

d. INVENTORIES:

As the Operations in Distillery Division at Goa have been suspended for the past eleven years, the stocks maintained were unusable for commercial purpose and hence have been fully written off.

e. INVESTMENTS:

Investments are long term and stated at cost. Provision has been created in the accounts for permanent diminution in the value of Investments.

f. FOREIGN CURRENCYTRANSACTIONS:

All foreign currency transactions are accounted for at the rates prevailing on the dates of the transaction. Foreign currency liabilities are converted at the year end rates as applicable.

The exchange difference on settlement / conversion is adjusted to a) cost of fixed assets, if the foreign currency liability relates to fixed assets and b) Profit and Loss account in all other cases.

g. REVENUE RECOGNITION:

Revenue is recognised at agreed rates on transfer of property in goods. With respect to operating lease, lease rentals are accounted as and when due.

h. RETIREMENT BENEFITS:

Contribution to Provident Fund, Family Pension Fund and approved LIC Group Gratuity Scheme are charged in the year in which they are incurred. Provisions for Leave Encashment have been made as per the eligibility of the employees as at the end of the year on actual basis.

i. TAXES ON INCOME:

Tax on Income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of I ncome Tax Act 1961.

Deferred Tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws that are enacted or substantially enacted as on the Balance Sheet date, where there is a carry forward loss or depreciation. Deferred tax asset is recognised in books of accounts only when there is reasonable certainty with respect to the future profits.

j. BORROWING COSTS:

Borrowing costs that are attributable to construction of qualifying assets are capitalised as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.

a. Alpic Finance Ltd: The Company has accepted the OTS for the said amount, which was payable by 30.09.2002. However, the Company has not complied with the terms of OTS.

b. East India Hotels Ltd: This amount is payable on account of termination of technical services agreement

with the party, and the said amount is payable by the Company by 31.12.2002 vide agreement dated 04.02.2002. The Company has made default in repaying the amount along with interest.

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Mar 31, 2011

1 a) OPERATIONS

The commercial complex and hotel projects were sold out under SARFAESI Act during the financial year 2007-08. There have been no operations during the year.

1 b) GOING CONCERN

The Company is also looking at the option of getting back into liquor trading operations subject to obtaining necessary government approvals. The Company is exploring the possibility of tying up with strategic partners and / or infusion of funds by investors into the Company to take up distillery operations in which it has experience. The Company is also looking at possibilities of merger and restructuring which will result in synergies.

2. SIGNIFICANT ACCOUNTING POLICIES

(i) BASIS OF ACCOUNTING

Financial statements are prepared under the historical cost convention and as a going concern, on accrual basis and in accordance with the normally accepted accounting standards.

(ii) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, taxes and any directly attributable cost of bringing the assets to their working condition for intended use.

(iii) DEPRECIATION

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. However, for Assets given on Lease, Depreciation has been charged equally over the lease period.

(iv) INVENTORIES:

As the Operations in Distillery Division at Goa have been suspended for the past ten years, the stocks maintained were unusable for commercial purpose and hence have been fully written off.

(v) INVESTMENTS:

Investments are long term and stated at cost. Provision has been created in the accounts for permanent diminution in the value of Investments.

(vii) REVENUE RECOGNITION:

Revenue is recognised at agreed rates on transfer of property in goods. With respect to operating lease, lease rentals are accounted as and when due.

(viii) CAPITAL WORK IN PROGRESS:

The capital work in progress of Rs.45971790/- represents assets acquired under hire purchase from M/s. Alpic Finance Ltd and the same are under mortgage with the Lender. Pending resolution of dispute with M/s. Alpic Finance Ltd, and in view of passage of time and obsolescence, provision towards loss in value due to impairment, has been provided in the accounts.

(ix) RETIREMENT BENEFITS:

Contribution to Provident Fund, Family Pension Fund and approved LIC Group Gratuity Scheme are charged in the year in which they are incurred. Provisions for Leave Encashment have been made as per the eligibility of the employees as at the end of the year on actual basis.

(x) TAXES ON INCOME:

Tax on Income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act 1961.

Deferred Tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws that are enacted or substantially enacted as on the Balance Sheet date, where there is a carry forward loss or depreciation. Deferred tax asset is recognised in books of accounts only when There is reasonable certainty with respect to the future profits.

(xi) BORROWING COSTS:

Borrowing costs that are attributable to construction of qualifying assets are capitalised as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

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Mar 31, 2010

(i) BASIS OF ACCOUNTING

Financial statements are prepared under the historical cost convention and as a going concern, on accrual basis and in accordance with the normally accepted accounting standards.

(ii) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties, taxes and any directly attributable cost of bringing the assets to their working condition for intended use.

(iii) DEPRECIATION

Depreciation is provided on Straight Line Method at the rates specified in Schedule XIV of the Companies Act, 1956 on pro-rata basis. However, for Assets given on Lease, Depreciation has been charged equally overthe lease period.

(iv) INVENTORIES

As the Operations in Distillery Division at Goa have been suspended for the past nine years, the stocks maintained were unusable for commercial purpose and hence have been fully written off.

(v) INVESTMENTS

Investments are long term and stated at cost. Provision has been created in the accounts for permanent diminution in the value of Investments.

(vi) FOREIGN CURRENCY TRANSACTIONS

All foreign currency transactions are accounted for at the rates prevailing on the dates of the transaction. Foreign currency liabilities are converted at the year end rates as applicable.

The exchange difference on settlement / conversion is adjusted to a) cost of fixed assets, if the foreign currency liability relates to fixed assets and b) Profit and Loss account in all other cases.

(vii) REVENUE RECOGNITION

Revenue is recognised at agreed rates on transfer of property in goods. With respect to operating lease, lease rentals are accounted as and when due.

(viii) CAPITALWORKIN PROGRESS:

The capital work in progress of Rs.45971790/- represents assets acquired under hire purchase from M/s.Alpic Finance Ltd and the same are under mortgage with the Lender. Pending resolution of dispute with M/s.Alpic Finance Ltd, and in view of passage of time and obsolescence, provision towards loss in value due to impairment, has been provided in the accounts.

(ix) RETIREMENT BENEFITS

Contribution to Provident Fund, Family Pension Fund and approved LIC Group Gratuity Scheme are charged in the year in which they are incurred. Provisions for Leave Encashment have been made as per the eligibility of the employees as at the end of the year on actual basis.

(x) TAXES ON INCOME

Tax on Income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of Income Tax Act 1961.

Deferred Tax is recognised on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws that are enacted or substantially enacted as on the Balance Sheet date, where there is a carry forward loss or depreciation. Deferred tax asset is recognised in books of accounts only when there is reasonable certainty with respect to the future profits.

(xi) BORROWING COSTS

Borrowing costs that are attributable to construction of qualifying assets are capitalised as part of cost of such assets till such time the asset is ready for its intended use. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use. All other borrowing costs are recognised as an expense in the period in which they are incurred.