Accounting Policies of Cvil Infra Ltd. Company

Mar 31, 2011

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956. A summary of important accounting policies applied, are set out below.

1) Convention:

The accounts are prepared under historical cost convention and on going concern basis.

2) Revenue Recognition:

All Income & Expenses are accounted for on accrual basis.

3) Fixed Assets: All the Fixed Assets have been stated at historical cost less accumulated depreciation but during the Company has not owned any fixed assets.

4) Depreciation:

Depreciation on Fixed Assets has been provided on written down value method at the rates prescribed in schedule XIV of the companies Act. 1956 and depreciation on the assets purchased/ sold during the period has been charged on pro-rata basis.

5) Inventories:

Company has not owned any inventories.

6) Foreign Exchange Transactions:

The Company has not dealt with foreign exchange transactions during the year.

7) Income Tax:

Provision is made for Income Tax on a yearly basis, under the tax payable method, based on the tax liability as computed after taking credit for allowances and exemptions.

8) Retirement Benefits:

a) No Provision for Gratuity has been made as no employee has yet put in the qualifying period of services for entitlement of this benefit.

9) Provision, contingent liabilities & contingent assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of past event

b) a probable outflow of resources is expected to settle the obligation &

c) the amount of obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) A possible obligation, of which the probability of outflow of resources is remote. Provisions, Contingent Liabilities & Contingent Assets are reviewed at each Balance Sheet date. Contingent Assets are neither recognized nor disclosed.

c) Contingent liabilities :- The company has filled appeal in the tribunal for assessment year 1998-99 for Rs. 85.42 lacs. There are no other contingent liabilities informed by the management to us.

10) DEFERRED TAX

No provision has been for made Deferred Tax Liabilities.

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Mar 31, 2010

1) Convention:

The accounts are prepared under historical cost convention and on going concern basis.

2) Revenue Recognition:

All Income & Expenses are accounted for on accrual basis.

3) Fixed Assets:

All the Fixed Assets have been stated at historical cost less accumulated depreciation but during the current financial year all the fixed assets sold

4) Depreciation:

Depreciation on Fixed Assets has been provided on written down value method at the rates prescribed in schedule XIV of the companies Act. 1956 and depreciation on the assets purchased/ sold during the period has been charged on pro-rata basis.

5) Inventories:

Inventories are valued at cost or market price whichever is lower.

6) Foreign Exchange Transactions:

The Company has not dealt with foreign exchange transactions during the year.

7) Income Tax:

Provision is made for Income Tax on a yearly basis, under the tax payable method, based on the tax liability as computed after taking credit for allowances and exemptions.

8) Retirement Benefits:

a) No Provision for Gratuity has been made as no employee has yet put in the qualifying period of services for entitlement of this benefit.

9) Provision, contingent liabilities & contingent assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of past event

b) a probable outflow of resources is expected to settle the obligation &

c) the amount of obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) A possible obligation, of which the probability of outflow of resources is remote.

Provisions, Contingent Liabilities & Contingent Assets are reviewed at each Balance Sheet date. Contingent Assets are neither recognized nor disclosed.

c) Contingent liabilities :- The company has filled appeal in the tribunal for assessment year 1998-99 for Rs. 85.42 lacs. There are no other contingent liabilities informed by the management to us.

10) DEFERRED TAX

No provision has been for made Deferred Tax Liabilities.

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Mar 31, 2009

1) Accounting Convention:

The financial statements have been prepared under the historical cost convention in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956.

2) Fixed Assets:

All the Fixed Assets have been stated at historical cost less accumulated depreciation. Cost includes excise duty, taxes, expenditures incurred on the acquisition, erection, installation and other incidental expenses incurred before the commencement of production.

3) Depreciation:

Depreciation on Fixed Assets has been provided on written down value method at the rates prescribed in schedule XIV of the companies Act. 1956 and depreciation on the assets purchased/ sold during the period has been charged on pro-rata basis.

4) Impairment of Assets:

At each Balance sheet date, the company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount. If the carryings amount of the assets exceeds its recoverable amount, an impairment loss is recognised in the profit & loss Account to the extent the carrying accounts of the company.

5) Foreign Currency Transactions:

No foreign currency transactions were carried out during the currency of Financial Year 2008-2009.

6) Retirement Benefits:

The Retirement Benefits are accounted for on the occurrence of retirement and as such no provision in respect thereto has been provided in the books of accounts of the company.

7) Provision, contingent liabilities & contingent assets:

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) the company has a present obligation as a result of past event

b) a probable outflow of resources is expected to settle the obligation &

c) the amount of obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in the case of

a) a present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) A possible obligation, of which the probability of outflow of resources is remote. Provisions, Contingent Liabilities & Contingent Assets are reviewed at each Balance Sheet date. Contingent Assets are neither recognized nor disclosed.

c) Contingent liabilities: - The Company has filled appeal in the tribunal for assessment year 1998-99 for Rs. 85.42 lacs. There are no other contingent liabilities informed by the management to us.

8) DEFERRED TAX

No provision has been made for Deferred Tax Liabilities.