THE HANUMAN ESTATES LTD,

SCHEDULE M : Significant Accounting Policies & Notes to Accounts

A) SIGNIFICANT ACCOUNTING POLICIES: -

1. Basis of Accounting: Accounts have been prepared on a Going Concern basis to

comply with all material respects with the relevant provisions of the Companies Act
1956 and the Accounting Standards issued by the Institute of Chartered Accountants
of India.

2. Revenue Recognition: Income and expenditure is generally recognised on accrual

basis. Sales excludes amount recovered towards sales tax and other receipts

3. Fixed Assets: Fixed assets are stated at cost less depreciation. Cost includes purchase
price and any other attributable cost of bringing the asset to the location and condition
for its intended use.

4. Depreciation: Depreciation is provided on Written Down Value basis at the following

rates prescribed in the Income-tax Rules 1962. No depreciation is charged on assets
whose W.D.V. as at the beginning of the year is less that 5% of its gross value

ASSET RATE OF
DEPRECIATION
(a) Free hold land at Podra & Domjur No depreciation is charged
(b) Building (including land) 10%
(c) Furniture & Fittings 10%
(d) Tube Well (treated as part of Building) 10%
(e) Electric Installation (treated as part of Building) 10%
(f) Lift (treated as part of Building) 10%
(g) Office Equipment 15%

5. Investments: Investments are considered as long term in nature and value at cost.
Provision for diminution in value of such investments is made only if the diminution
is not temporary in view of the management.

6. Inventory: Inventory is normally valued at lower of cost or net realisable value.

However the Company has no inventory as at the year end

7. Retirement Benefits: The Company has taken an LIC policy to meet its gratuity
liability, the premium for which is debited to Profit & Loss Account. Leave
encashment due to employees is not provided for and is charged to the accounts as
and when it is paid.

8. Taxes on Income: Provision for Income tax and Fringe Benefit Tax is made in
accordance with the applicable provisions of the Income-tax Act 1961.
 Deferred tax is accounted for based on the timing difference in recognition of
accounting taxable income that arises in one period and is capable of reversal in one
or more subsequent periods. Deferred tax liability is not accounted for so far it is, in
view of the management, material in nature. Deferred tax assets are not accounted for
unless there is certainty of their realization in future.

9. Contingent Liabilities & Events occurring after the balance sheet date: These
have been disclosed, where necessary, at appropriate places in the notes to accounts.

B) NOTES TO ACCOUNTS: -

1. Contingent liabilities not provided for- Commercial surcharge on Municipal tax is in

dispute since 01.04.1984, the exact amount for which the Company is liable is not
ascertainable. Further notices have been received from the Kolkata Municipal
Corporation for assessment of Municipal tax on a higher valuation of the building for
the period 01/84-85 to 01/ 02-03. The Company has filed objections before the
Municipal Assessment Officer challenging the higher valuation, which are pending.
The Company is meanwhile depositing regularly the admitted amount in suspense
account as per receipts issued by KMC. However till final disposal of the said
objections, the exact liability on account of the higher valuations is not ascertainable.

2. The Company has taken an LIC policy to cover its gratuity liability. During the year
premium amounting to Rs. 20,000/- (Rs.70,000/-) has been paid and debited to the
Profit & Loss Account.

3. Earnings per Share (EPS) - In accordance with the Accounting Standard 20 on

Earnings per Share issued by the Institute of Chartered Accountants of India, the
EPS is worked out as follows:

2008-09 2007-08

Net profit after tax (in Rs.) 1824449 630195

Avg. No. of Equity Shares 101158 94500
Nominal Value per share (in Rs.) 10/- 10/-
Earnings per Share (in Rs.) 18.03 6.67
[Basic/ Diluted]

4. Sundry Creditors include dues to SSI Units Rs. NIL (Rs. NIL) in accordance with the
information regarding its suppliers available with the Company.

5. Deferred tax- No deferred tax is accounted for since in the company had no material
deferred tax assets or liabilities as at the year end in accordance with Accounting
Standard 22.

6. Balances of Sundry Debtors & Sundry creditors are subject to confirmation by

respective parties
7. Title deeds of the Companys property at 19 R.N.Mukherjee Road, are not in the
possesion of the Company as the same are lying in the Calcutta High Court in the
matter of United Bank of India.

8. Previous years figures have been regrouped/ rearranged where necessary. Figures in
brackets where disclosed show previous years figures.

_____________________________________________________________________________________

In terms of our Report of even date

For & on behalf of For & on behalf of the Board

S.B.Dandeker & Co.
Chartered Accountants
D
I
R
(Kedarashish Bapat) E
Partner C
M. N. 057903 T

O
R
Place: Kolkata S
Date :5th June, 2009