KDJ Holidayscapes and Resorts Ltd. कंपली की लेखा नीति

Mar 31, 2015

A . General :

i) The accounts have been prepared on accrual basis of accounting and are in accordance with the historical cost convention principles.

B . Uses of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting principles requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income & expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable.

Difference between actual results and estimates are recognized in the periods in which the results materialize.

C . Revenue recognition

i) Entitlement fee , which entitles the member to own vacation facilities over the membersip usage period, is recognised as income at the time of sale of membership.

Hitherto , the Company was recognising the same as income over the entitled vacation period.

To align with the new accouting policy , the Entitlement fees for membership sold during the earlier periods for the unexpired vacation period , has also been recognised as income of the year.

Due to this change in accounting policy, the Profits for the year are higher by Rs. 3,69,67,861/- with the consequential effect on the Reserves.

ii) Annual subscription fee dues from members are recognised as income on an accrual basis.

iii) Income from resorts includes income from room rentals, food and beverages, etc. and is recognised when sold or services are rendered.

iv) Interest Income from loans is accounted on time proportion basis.

v) Dividend income from investments is accounted as and when right to receive the payment is established.

vi) Commission income is recognised on accrual basis as per the terms of the agreements.

D . Inventories

Inventories are carried at lower of cost and net realisable value.

E . Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprise the Purchase price and any attributable cost of bringing the assets into working condition for its intended use.

F . Depreciation :

Tangible Assets

Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing from April 1, 2014, the Company has realigned the remaining useful lives of its tangible fixed assets in accordance with the provisions prescribed under Schedule II to the Act.

In case of tangible fixed assets which have completed their useful lives, the carrying value (net of residual value) as at April 1, 2014 amounting to Rs. 54,890/- has been debited to the "Surplus in the Statement of Profit and Loss" and in case of other tangible fixed assets, the carrying value (net of residual value) is being depreciated over the revised remaining useful lives.

In case of the Assets having balance useful lives as on April 01 , 2014 , the Depreciation is provided for on Written Down Value Method as per balance useful lives of such assets in accordance with the provisions prescribed under Schedule II to the Act.

Hitherto, Depreciation was provided for on Written Down Value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act,1956.

Due to the realignment of the remaining useful lives of the assets , as aforesaid , the Depreciation expense for the Year Ended 31st March 2015 is higher by Rs. 2,98,609/- with the consequential effects on reserves & surplus of the company

Intangible Assets

Trade Marks are amortised on Straight Line method over a period of 5 years.

G . Investments

Investments that are intended to be held for more than a year, from the date of acquisition are classified as long term investments i.e. non current investments and are carried at cost less any provision for permanent diminution in the value.

Investments other than long term are valued at cost and market value whichever is lower.

H . Borrowing Costs

Borrowing costs are charged to revenue unless they are attributable to the acquisition or construction of Fixed assets. In case the borrowing costs are attributable to acquisition or construction of fixed assets , the costs incurred upto the date of the completion of acquisition or construction are capitalised.

I . Provision for current and deferred tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between books and taxable profit is accounted for using the rates and laws that have been enacted or substantively enacted as on the balance sheet date . The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

J . Employee Benefits

The Company is accounting for Gratuity and Leave Encashment in the year of payment.

No provision has been made for accrued gratuity liability. No actuarial valuation has been done for accrued gratuity liability till the year end

K . Bonus

Customary Bonus to the employees of the Company is being accounted for in the year of payment.

L . Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.

An impairment loss is charged to the Profit & Loss a/c in the year in which an asset is identified as impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

M . Deferred revenue expenditure are being amortised over a period of 10 years from the date of commencement of business.

N . Pre-operative expenses are being amortised over a year of 5 years from the date of commencement of business.

O . Certain types of income such as Royalty, Insurance Claim, Customer Claims etc. have been considered to the extent of amount ascertainable / accepted by the parties.

P . Additional liability if any arising pursuant to assessment under various fiscal statutes shall be accounted for in the year of respective assessment.

Q . In the opinion of Board of Directors; the Current Assets, Loans & Advances are realizable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet.

The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

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Mar 31, 2014

A. General:

i) The accounts have been prepared on accrual basis of accounting and are in accordance with the historical cost convention principles.

ii) The name of the company was changed to KDJ HOLIDAY SCAPES AND RESORTS LIMITED during the year under review.

B. Uses of Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting principles requires the management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income & expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Difference between actual results and estimates are recognized in the periods in which the results are materialize.

C. Revenue recognition

i) The company’s business is to sell Vacation ownership and provide holiday facilities to members for a specified period each year, over a number of years, for which membership fee is collected either in full up front, or on a deferred payment basis. The membership fee is divided in to two parts viz. Admission Fee and Entitlement Fee.

ii) Admission fee is recognised as income on receipt of minimum subscription fees.

iii) Entitlement fee which entitles the vacation ownership member for the vacation ownership facilities over the membership usage period, is recognised as income over the entitled vacation period.

iv) Annual subscription fee dues from members are recognised as income on an accrual basis.

v) Income from resorts includes income from room rentals, food and beverages, etc. and is recognised when sold or services are rendered.

vi) Interest Income from loans is accounted on time proportion basis.

vii) Dividend income from investments is accounted as and when right to receive the payment is established.

viii) Commission income is recognised on accrual basis as per the terms of the agreements.

D. Inventories

Inventories are carried at lower of cost or net realisable value.

E. Fixed Assets

Fixed Assets are stated at cost less depreciation. Cost comprise the Purchase price and any attributable cost of bringing the assets into working condition for its intended use.

F. Depreciation :

Tangible Assets

Depreciation has been provided on Written Down Value method at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

Intangible Assets

Trade Marks are amortised on Straight Line method over a period of 5 years.

G. Investments

Investments that are intended to be held for more than a year, from the date of acquisition are classified as long term investments i.e. non current investments and are carried at cost less any provision for permanent diminution in the value. Investments other than long term are valued at cost or fair value whichever is lower.

H. Borrowing Costs

Borrowing costs are charged to revenue unless they are attributable to the acquisition or construction of Fixed assets. In case the borrowing costs are attributable to acquisition or construction of fixed assets, the costs incurred upto the date of the completion acquisition or construction are capitalised and thereafter charged to revenue.

I. Provision for current and deferred tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between books and taxable profit is accounted for using the rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

J. Employee Benefits

The Company is accounting for Gratuity and Leave Encashment in the year of payment. No provision has been made for accrued gratuity liability. No actuarial valuation has been done for accrued gratuity liability till the year end

K. Bonus

Customary Bonus to the employees of the Company is being accounted for in the year of payment.

L. Provisions & contingencies

i) Provisions are recognized in terms of Accounting Standard 29 " Provisions, Contingent Liabilities and Contingent Assets notified by the Companies (Accounting Standards) Rules, 2006 when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which reliable estimate can be made.

ii) Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence & non occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimates of the obligation cannot be made Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent liabilities are disclosed by way of notes.

M. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit & Loss a/c in the year in which an asset is identified as impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

N. Deferred revenue expenditure are being amortised over a period of next 10 years depending upon their future benefits

O. Pre-operative expenses are being amortised over a year of 5 years depending upon their future benefits.

P. Certain types of income such as Royalty, Insurance Claim, Customer Claims etc. have been considered to the extent of amount ascertainable / accepted by the parties.

Q. Additional liability if any arising pursuant to assessment under various fiscal statutes shall be accounted for in the year of respective assessment.

R. In the opinion of Board of Directors; the Current Assets, Loans & Advances are realizable in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

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Mar 31, 2013

A Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 to the extent applicable and in accordance with the relevant provisions of the Companies Act, 1956.

B Use of Estimates:

The preparation of fi nancial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the fi nancial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

C Revenue Recognition

i) Admission fee is recognised as income on receipt of minimum subscription fees.

ii) Entitlement fee which entitles the vacation ownership member for the vacation ownership facilities over the membership usage period, is recognised as income equally over the entitled vacation period.

iii) Annual subscription fee dues from members are recognised as income on an accrual basis.

iv) Income from resorts includes income from room rentals, food and beverages, etc. and is recognised when services are rendered.

v) Interest income from loans is accounted on time proportion basis.

vi) Dividend income from investments is accounted as and when right to receive the payment is established.

vii) Commission Income is recognised on accrual basis as per the terms of the agreements.

D Inventory:

Inventories are carried at lower of cost and net realisable value.

E Fixed Assets:

Fixed Assets are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

F Depreciation:

Tangible Asset

Depreciation on Fixed Assets has been provided on ‘Written Down Value’ as per the rates and in the manner specifi ed in Scheduled XIV of the Companies Act, 1956.

Intangible Asset

Trademarks is amortised on Straight Line Method over a period of fi ve years.

G Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classifi ed as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

H Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Profi t and Loss Account.

I Accounting for Taxes of Income:- Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income-tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profi ts offered for income taxes and the profi ts as per the fi nancial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred tax assets are reviewed as at each Balance Sheet date.

J Employee Benefi ts :

Gratuity & Leave Encashment is accounted for in the year of payment.

K Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets notifi ed by the Companies (Accounting Standard) Rules 2006, when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outfl ow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outfl ow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

L Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profi t and Loss Account in the year in which an asset is identifi ed as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

M Deferred Revenue Expenditure are being amortized over next 10 years, depending upon their future benefi ts.

N Pre-operative expenses are being amortized over next 5 years, depending upon their future benefi ts.

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Mar 31, 2012

A Basis of Accounting:

The Financial Statements have been prepared under the historical cost convention, on an accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles in India and comply with the Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 to the extent applicable and in accordance with the relevant provisions of the Companies Act, 1956.

B Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

D Revenue Recognition

i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection

ii) Dividend income is recognised when right to receive the payment is established.

iii) In respect of other heads of income the Company follows the practice of accounting on accrual basis.

E Investments:

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for permanent diminution in value. Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.

F Accounting for Taxes of Income:-

Current Taxes

Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

Deferred Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

G Employee Benefits :

Gratuity & Leave Encashment is accounted for in the year of payment.

H Provisions and Contingent Liabilities:

i) Provisions are recognized in terms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets issued by The Institute of Chartered Accountants of India (ICAI), when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabilities are disclosed by way of notes.

The members of the Company through Postal Ballot held on 20th day of August, 2011 has increased its authorised share capital from Rs.50,000,000 divided into 5,000,000 equity shares of Rs.10 each to Rs.110,000,000 divided into 11,000,000 equity shares of Rs.10 each.

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Mar 31, 2010

GENERAL

The financial statements are prepared under the historical cost convertion, on the actual basis of accounting, in accordance with the generally accepted accounting principles in India, the Accounting Standards presecribed in Ihe companies (Accounting Standard) Rules, 2006 and the relevant provisions of the Companies Act. 1956- The accounts; have been prepared on principal applicable to a "Going Concern" despite viability of restarting and continuing future operations remaining in question / doubt

INVENTORY OF SECURTTES

Inventory is stated at cost. No provision is made for depredation in realisable value

CONTINGENT LIABILITIES AMD PROVISIONS

Contingent liabilities, it any, are disclosed in notes of accounts below

FIXED ASSETS AND DEPRECIATION

Not applicable, since no fixed assets are held.

REVENUE RECOGNITON

Income from Hire Purchase Finance Charges is accounted on accrual basis. Expenses

are also accounted on accrual basis.

TAXES ON INCOME

No provision is made tor current tax in view of losses. Provision is made for admitted liabilities of tax and penalty dues for prior years. No Provision is made lor deterred lax asstes though the company has accumlated losses of prior years, as in the opinion of management there is no virtual certainity of taxable income in near future.