Mar 31, 2018
1. Significant accounting policies
A. Property, plant and equipment
Property, plant and equipment are stated at original cost net of tax/ duty credit availed, less accumulated depreciation and accumulated impairment losses, when significant part of the property, plant and equipment are required to replace at intervals, the company derecognized the replaced part and recognized the new parts with its own associated useful life and it deprecated accordingly. Likewise when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance cost are recognized in the statement of the profit and loss as incurred. The present value of the expected cost for the decommissioning of the asset after its use is included in the cost of the respective asset if the recognition criteria for a provision are met.
Internally manufactured property, plant and equipment are capitalised at factory cost including excise duty whatever is applicable.
Capital work in progress including property plant & equipment under installation/under development as at the balance sheet date.
Capital expenditure on tangible assets for research and development is classified under property and equipment and is depreciated on the same basis as other property, plant and equipment.
Property, plant and equipment are derecognised from the financial statement, either on disposal or when no economic benefits are expected from it''s use or disposal. Losses arising in the case of retirement of property, plant and equipment and gain or losses arising from disposal of property, plant and equipment are a recognized in the statement of profit and loss in the year of occurrence.
B. Investment properties
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognized in the statement of profit & loss as& when incurred.
Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer.
Investment properties are derecognized either when they have been disposed off or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in statement of profit & loss in the period of de-recognition.
C. Intangible assets
Capital expenditure on purchase and development of identifiable assets without physical substance is recognized as intangible assets in accordance with principles given under Ind AS-38 - Intangible Assets.
The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the assets are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. Expenses Incurred during construction period,preliminary project expenditure, capital expenditure, indirect expenditure incidental and related to construction / implementation, interest on borrowings to finance fixed assets and expenditure on startup / commissioning of assets forming part of a composite project are capitalized up to the date of commissioning of the project as the cost of respective assets.
D. Depreciation and amortization
The assets'' residual values, useful lives and methods of deprecation are reviewed each financial year end and adjusted prospectively, if applicable.
Depreciation on Property, Plant and Equipment is provided over the useful life of assets as specified in schedule II to the Act. Property, Plant and Equipment which are added / disposed off during the year, deprecation is provided pro-rata basis with reference to the month of addition / deletion.
Depreciation on property, plant and equipment is calculated on a written down basis.
E. Capital work-in-progress
Capital work-in-progress/intangible assets under development are carried at cost, comprising direct cost, related incidental expenses and attributable borrowing cost.
F. Impairment of Non-financial assets
Property, plant and equipment, intangible assets and assets classified as investment property with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset belongs.
If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset (or CGU) is reduced to its recoverable amount. An impairment loss is recognized in the statement of profit or loss.
An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.
Impairment losses on continuing operations, including impairment on inventories are recognized in the statement of profit and loss, except for properties previously revalued with the revaluation taken to other comprehensive income. For such properties, the impairment is recognized in OCI up to the amount of any previous revaluation surplus.
G. Inventories
Inventories are valued as under:-
i. Building materials, stores, spare parts At weighted average cost
ii. Shuttering & scaffolding materials At depreciated cost
iii. Apartments / houses / shops/ flats At lower of cost or net realisable value
iv. Projects in progress It represents land acquired for future development
and construction, and is stated at cost including the
cost of land, the related costs of acquisition,
construction costs, borrowing costs incurred to get
the properties ready for their intended use.
Cost is calculated on weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and costs required to make the sale.
H. Cash and cash equivalents
Cash and cash equivalents includes cash on hand and at bank, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
For the purpose of the Statement of Cash Flows, cash and cash equivalents consists of cash and short term deposits, as defined above, net of outstanding bank overdraft as they being considered as integral part of the Company''s cash management.
I. Leases
The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.
For arrangements entered into prior to 1 April 2015, the company has determined whether the arrangement contain lease on the basis of facts and circumstances existing on the date of transition.
Where the Company is the lessee
Finance leases are capitalized as assets at the commencement of the lease, at an amount equal to the fair value of leased asset or present value of the minimum lease payments, whichever is lower, valued at the inception date. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the statement of profit and loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the company''s general policy on borrowing cost. A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
Operating lease payments are recognized as an operating expense in the statement of profit and loss on a straight-line basis over the lease term.
Where the Company is the lessor
Rental Income from operating leases is recognized on a straight-line basis over the term of the relevant lease, costs including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs incurred in negotiating and arranging an operating lease are recognized immediately in the statement of profit and loss.
J. Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all potential dilutive equity shares.
K. Provisions, contingent liabilities and contingent assets
GENERAL
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that the outflow of resources embodying economic benefits will be required to settled the obligation in respect of which reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the expense relating to provision presented in the statement of profit & lossisnet of any reimbursement.
If the effect of the time value of money is material, provisions are disclosed using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as finance cost.
Contingent liability is disclosed in the notes incase of:
- There is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.
- A present obligation arising from past event, when it is not probable that as outflow of resources will be required to settle the obligation
- A present obligation arises from the past event, when no reliable estimate is possible
- A present obligation arises from the past event, unless the probability of outflow are remote.
Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date. Onerous contracts
A provision for onerous contracts is measured at the present value of the lower expected costs of terminating the contract and the expected cost of continuing with the contract. Before a provision is established, the Company recognizes impairment on the assets with the contract.
Contingent assets
Contingent assets are not recognized in the financial statements.
L. Interest in Joint Ventures and associates
Investments in equity shares of Subsidiaries, Joint Ventures &Associates are recorded at cost and reviewed for impairment at each balance sheet date.
M. Taxes
Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-Tax Act, 1961 enacted in India. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Current income tax relating to items recognized directly in equity is recognised in equity and not in the statement of profit and loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Minimum alternate tax
Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as âMAT Credit Entitlement.â The Company reviews the âMAT credit entitlementâ asset at each reporting date and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.
Deferred tax
Deferred tax is provided using the balance sheet approach on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purpose at reporting date. Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized.
The carrying amount of deferred tax assets are reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow deferred tax assets to be recovered.
The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
N. Advances to subsidiaries, associates and others for purchase of land
Advances given to subsidiary and land holding companies for acquiring land are initially classified as ''Advances'' for purchase of land under âOther non- current/ current assetsâ. On obtaining the license for a land, the full cost of the land is transferred to cost of land, an item of cost of construction, from ''advance against land''.
O. Revenue recognition
i. The Company follows âpercentage of completion methodâ of accounting for contracts and constructed residential, institutional and commercial properties. As per this method, the revenue is recognized in proportion to the actual costs incurred as against the total estimated cost of the projects under execution subject to actual cost being 30% or more of the total estimated cost.
Effective April 1, 2016, in accordance with the âguidance note on accounting for real estate transactions (for entities to whom IND AS is applicable)â construction revenue on all projects have been recognized on percentage of completion method provided the following thresholds have been met.
(a) All critical approvals necessary for the project commencement have been obtained.
(b) The expenditure incurred on construction and development cost (excluding land costs) is not less than 25% of the total estimated construction and development costs.
(c) At least 25% of the saleable project area is secured by agreements with buyers; and
(d) At least 10% of the sale proceeds relating to agreements secured are realized at the reporting date in respect of such contracts.
ii. Income from know how fee is recognized as per the terms of the agreement with the recipient of know how.
iii. The estimates relating to saleable area, sale value, estimated costs etc., are revised and updated periodically by the management and necessary adjustments are made in the accounts in the year in which the estimates are revised.
iv. Indirect costs are treated as âperiod costsâ and are charged to the statement of profit & loss in the year in which they are incurred.
v. Surrender of flats by buyers are valued at cost and accounted for as surrender of rights under ''cost of construction'' in the case of projects in progress and once sold, proceeds are treated as ''Sales''.
vi. For recognizing income and working out related cost of construction, in case of developed land, flats / shops/ houses/ farms etc., major self-contained residential township projects are divided into various schemes such as plotted area, constructed houses, commercial area, malls etc.
vii. Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by customers against dues and holding charges, interest claims for delay in projects and assured returns to customers are taken into account on realization or payment owing to practical difficulties and uncertainties involved.
viii. Income from windmill is accounted for on the basis of power supplied to the customer as per the terms of the Power Purchase Agreement with the respective party.
ix. Interest income on fixed deposits with banks is recognized on time proportion basis taking into account the amount outstanding and the rates applicable.
x. Dividend income from investments is recognized when the company''s right to receive payment is established.
P. Foreign currency translation/conversion
Standalone financial statements have been presented in Indian Rupees (Rs.), which is the Company''s functional and presentation currency.
- Initial recognition
Foreign currency transactions are recorded on initial recognition in the functional currency, using the
- Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.
- Exchange differences
The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively).
Q. Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in the statement of profit or loss as other gains/(losses).
R. Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Borrowing costs that are directly attributable to the projects are charged to the respective project on the basis of expenditure incurred net of customer collections.
Other borrowing costs are expensed in the period in which they are incurred.
S. Employee benefits
Expenses and liabilities in respect of employee benefits are recorded in accordance with Indian Accounting Standard (Ind AS)-19 - ''Employee Benefits''.
Defined contribution plan:
Retirement benefits in the form of provident fund and superannuation scheme are a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the provident fund/trust.
Defined benefit plan:
The Company''s liabilities on account of gratuity and earned leaves on retirement of employees are determined at the end of each financial year on the basis of actuarial valuation certificates obtained from registered actuary in accordance with the measurement procedure as per Indian Accounting Standard (INDAS)-19- ''Employee Benefits''. Gratuity liability is funded on year-to-year basis by contribution to respective fund. The costs of providing benefits under these plans are also determined on the basis of actuarial valuation at each year end. Actuarial gains and losses for defined benefit plans are recognized through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
Accumulated leaves, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method at the year-end.
T. Financial Instruments
(a) Financial Assets
i. Classification
The company classified financial assets as subsequently measured at amortised cost, fair value though other comprehensive income or fair value through profit or loss on the basis of its business model for managing the financial assets and contractual cash flow characteristics of the financial asset.
ii. Initial Recognition and Measurement
The company recognizes financial assets when it becomes a party to the contractual provisions of the instrument. All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of financial assets.
iii. Subsequent Measurement
For the purpose of subsequent measurement the financial assets are classified in three categories:
- Debt instruments at amortised cost
- Debt instrument at fair value through profit or loss
- Equity investments
iv. Debt instrument at amortised cost
A âdebts instrumentâ is measured at the amortised cost amortised cost if both the following condition are met.
- The assets is held within a business model whose objective is to hold assets for collecting contractual cash flow, and
- Contractual terms of the assets give rise on specified dates to cash flows that are solely payments of principle and interest (SPPI) on the principle amount outstanding.
After initial measurement, such financial assets are subsequently measurement at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount and premium and fee or costs that are an integral part of an EIR. The EIR amortisation is included in finance income in the statement of profit and loss. The losses arising from impairment are recognised in the statement of profit and loss.
v. Debt instrument at Fair value through Profit or loss
Debt instruments included within the fair value through profit or loss (FVTPL) category are measured at fair value with all changes recognised in the statement of profit and loss.
vi. Equity investments
All equity investments other than investment in subsidiaries, joint venture and associates are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the company decides to classify the same either as at fair value through other comprehensive income (FVTOCI) or FVTPL. The company makes such election on an instrument-by- instrument basis. The classification is made on initial recognition and is irrevocable.
If the company decides to classify an equity instrument as at FVTOCI, then fair value changes on the instrument, excluding dividends, are recognised in other compressive income (OCI). There is no recycling of the amounts from OCI to statement of profit or loss, even on sale of such investments.
Equity instrument includes within the FVTPL category are measured at fair value with all changes recognised in the Statement of profit or loss.
vii. Derecognition
A financial assets (or, where applicable, a part of a financial asset) is primarily derecognised when:
- The right to receive cash flows from the assets have expired or
- The company has transferred substantially all the risks and rewards of the assets, or
- The company has neither transferred nor retained substantially all the risks and rewards of the assets, but has transferred control of the assets.
viii. Impairment of financial assets
The company applies ''simplified approach'' measurement and recognition of impairment loss on the following financial assets and credit risk exposure:
- Financial assets that are debt instrument and are measured at amortised cost e.g. loans, debt securities, deposits, and bank balance.
- Trade receivables
The application of simplified approach does not require the company to track changes in credit risk. Rather, it recognised impairment loss allowance based on lifetime expected credit loss at each reporting date, right from its initial recognition.
(b) Financial liabilities
i. Classification
The company classifies all financial liabilities as subsequently measured at amortised cost
ii. Initial recognition and measurement
All financial liabilities are recognised initially at fair value and, in the case of loan and borrowings and payables net of directly attributable transaction costs.
iii. Loan and borrowings
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the Effective Interest Rate (EIR) Method. Gain and losses are recognised in statement of profit and loss when the liabilities are derecognised.
Amortised cost is calculated by taking into account any discount or premium on acquisition and transaction cost. The EIR amortization is included as finance cost in the statement of profit and loss.
This category generally applies to loans& Borrowings.
iv. Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lander on substantially different terms, or the terms of an existing liability are, substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amount recognised in the Statement of Profit and loss.
v. Offsetting of financial instrument
Financial Assets and Financial Liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously
(c) Share capital
i. Ordinary equity shares
Incremental cost directly attributable to the issue of ordinary equity shares are recognised as a deduction from equity.
U. Segment accounting and reporting
The chief operational decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit and loss and is measured consistently with profit and loss in the financial statements.
The Operating Segments have been identified on the basis of the nature of products/ services.
i. Segment Revenue includes sales and other income directly identifiable with/ allocable to the segment including inter- segment revenue.
ii. Expenses that are directly identifiable with/ allocable to the segments are considered for determining the segment result. Expenses not allocable to segments are included under unallocable expenditure.
iii. Income not allocable to the segments is included in unallocable income
iv. Segment results includes margin on inter segment and sales which are reduced in arriving at the profit before tax of the company.
v. Segment assets and Liabilities include those directly identifiable with the respective segments. Assets and liabilities not allocable to any segment are classified under unallocable category.
Mar 31, 2016
1. CORPORATE INFORMATION
Ansal Properties and Infrastructure Ltd. (âAPILâ or the âCompanyâ), was incorporated in 1967. The Company''s main business is real estate promotion and development in residential and commercial segment. This prestigious company deals in residential, commercial and retail properties located in the areas of Delhi NCR, U.P, Haryana, Punjab, Rajasthan, etc.
The company is listed on the National Stock Exchange of India Ltd., BSE Ltd. and Delhi Stock Exchange. These financial statements are presented in Indian Rupees.
2. SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Preparation of Accounts
The Financial Statement of the company have been prepared in accordance with generally accepted accounting principles in India. The company has prepared these financial statements to comply with the accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent applicable, as adopted consistently by the Company. The financial statements have been prepared under the historical cost convention, on the basis of going concern and on an accrual basis except as stated otherwise.
B. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.
C. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any cost attributable to bringing the asset to its working condition for its intended use. Some of the building properties owned by the Company which have been revalued are stated at revalued amounts less accumulated depreciation.
Intangible Assets are recognized on the basis of recognition criteria as set out in Accounting Standard - (AS-26) âIntangible Assetsâ. Bought out softwares are recognized at cost of purchase.
Expenditure related to and incurred on implementation of new/ expansion of projects is included under capital work-in-progress and the same is allocated to the respective tangible asset on completion of its construction/erection.
Cost is calculated on weighted average basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and costs required to make the sale.
E. DEPRECIATION
Depreciation on fixed assets other than Plant and Machinery relating to Windmill is provided on Written down value method over the estimated useful life as prescribed under Schedule II of the Companies Act, 2013. Pursuant to this policy, depreciation is provided at the following rates which are in line with the corresponding useful life prescribed in Schedule II of the Companies Act, 2013:-
i. Cost of Leasehold land is amortized over the period of lease.
ii. Assets costing up to Rs.5,000/- are fully depreciated in the year of purchase.
iii. Amortization of intangible assets has been done on Straight- line basic over a period of five years, which in the opinion of the management represents the best estimate of useful life of these assets.
F. INVESTMENTS
Investments intended to be held for more than a year are classified as long term investments. All other investments are classified as current investments. Current investments are stated at lower of cost or market/fair value. Long term investments are stated at cost. Decline in value of long term investments is recognized, if considered other than temporary.
G. REVENUE RECOGNITION
i. The Company follows âpercentage of completion methodâ of accounting for contracts and constructed residential, institutional and commercial properties. As per this method, the revenue is recognized in proportion to the actual costs incurred as against the total estimated cost of the projects under execution subject to actual cost being 30% or more of the total estimated cost.
Effective 1st April 2012, in accordance with the âguidance note on accounting for real estate transactions (revised 2012)â (guidance note) all projects commencing on or after the said date or projects where revenue is recognized for the first time after the above date, construction revenue on such projects have been recognized on percentage of completion method provided the following thresholds have been met in addition to the existing conditions.
(a) All critical approvals necessary for the project commencement have been obtained.
(b) The expenditure incurred on construction and development cost(excluding land costs) is not less than 25% of the total estimated construction and development costs.
(c) At least 25% of the saleable project area is secured by agreements with buyers; and
(d) At least 10% of the sale proceeds relating to agreements secured are realized at the reporting date in respect of such contracts.
ii. Income from know how fee is recognized as per the terms of the agreement with the recipient of know how.
iii. The estimates relating to saleable area, sale value, estimated costs etc., are revised and updated periodically by the management and necessary adjustments are made in the accounts in the year in which the estimates are revised.
iv. Indirect costs (Note no. 24,25,26,27) are treated as âperiod costsâ and are charged to the Statement of profit & loss in the year in which they are incurred.
v. Surrender of flats by buyers are valued at cost and accounted for as surrender of rights under ''cost of construction'' in the case of projects in progress and once sold, proceeds are treated as ''Sales''.
vi. For recognizing income and working out related cost of construction, in case of developed land, flats / shops/ houses/ farms etc., major self contained residential township projects are divided into various schemes such as plotted area, constructed houses, commercial area, malls etc.
vii. Whereas all income and expenses are accounted for on accrual basis, interest on delayed payments by customers against dues and holding charges, interest claims for delay in projects and assured returns to customers are taken into account on realization or payment owing to practical difficulties and uncertainties involved.
viii. Income from Windmill is accounted for on the basis of power supplied to the Customer as per the terms of the Power Purchase Agreement with the respective party.
ix. Interest income on fixed deposit with banks is recognized on time proportion basis taking into account the amount outstanding and the rates applicable.
x. Dividend income from investments is recognized when the company''s right to receive payment is established.
H. ADVANCES TO SUBSIDIARIES, ASSOCIATESAND OTHERS FOR PURCHASE OF LAND
Advances given to subsidiary and land holding companies for acquiring land are initially classified as ''Advances'' for purchase of land under Loans & Advances. On obtaining the license for a land, the full cost of the land is transferred to cost of land, an item of cost of construction, from ''advance against land''.
I. RETIREMENT AND OTHER BENEFITS
i. Contribution to the provident fund is charged to the revenue each year.
ii. Provisions for gratuity and leave encashment are made on the basis of actuarial valuation at the year-end in accordance with accounting standard (AS-15)''employee benefits''. The actuarial valuation is done as per projected unit credit method (PUCM). Actuarial gains/(losses) are immediately taken to Statement of profit & Loss in the year in which such gains or losses arise.
J. FOREIGN CURRENCY TRANSLATION/ CONVERSION
Transactions in foreign currency are recorded at the exchange rate prevailing on the date of transactions. Gains / Losses arising due to fluctuations in the exchange rates are recognized in the Statement of Profit & Loss in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to translation of monetary items at the year-end are accounted for in the Statement of profit & loss.
K. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are considered as part of cost of that asset. In accordance with Accounting Standard (AS-16) - âBorrowing Costsâ, a qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Other borrowing costs are expensed as period costs.
Borrowing costs that are directly attributable to the projects are charged to the respective project on the basis of expenditure incurred net of customer collections.
L. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22, âAccounting for Taxes on Incomeâ, as stated below:
i. Provision for current tax is made based on taxable income for the year computed in accordance with provisions of the Income Tax Act, 1961.
ii. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
iii. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws.
iv. Deferred tax asset is recognized and carried forward to the extent that there is a reasonable certainty of realization. In the case of unabsorbed depreciation and carry forward tax losses deferred tax asset is recognized, to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
M. SEGMENT POLICIES
The Company''s reportable segments are identified based on activities/products, risk and reward structure, organization structure and internal reporting systems.
N. ACCOUNTING FOR JOINT VENTURES
i. Jointly controlled operations - The Company''s share of revenue, expenses, assets and liabilities are included in the financial statements as revenue, expenses, assets and liabilities respectively.
ii. Jointly controlled entities - The Company''s investment in jointly controlled entities is reflected as investment and accounted for in accordance with the Company''s accounting policy of Investments. (See Note No. 2(F) above)
O. IMPAIRMENT
At each balance sheet date, the management reviews the carrying amounts of fixed assets to determine whether there is any indication that these assets suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss and necessary provisions are made against such impairment. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. Reversal of impairment loss is recognized as income in the Statement of profit & loss to the extent of impairment loss previously recognized.
P. LEASES
When the Company is the Lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of profit and loss over the lease term.
When the Company is the Lessor
Assets subject to operating leases are included in fixed assets. Lease income is recognized in the Statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the Statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the Statement of profit and loss.
Q. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are shown by way of note in the notes to accounts in respect of obligations where based on the evidence available, their existence at the balance sheet date is considered not probable. Contingent assets are neither recognized in the accounts nor disclosed.
R. EARNING PER SHARE
Basic earning per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all potential dilutive equity shares.
S. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank, cash/ cheques in hand and fixed deposits with banks with maturity period of three months or less.
Mar 31, 2015
A. NATURE OF OPERATIONS
Ansal Properties and Infrastructure Ltd. ("APIL" or the "Company''),
was incorporated in 1967. The Company's main business is real estate
promotion and development in residential and commercial segment.
B. BASIS OF PREPARATION OF ACCOUNTS
The Financial Statement of the company have been prepared in accordance
with generally accepted accounting principles in India. The company has
prepared these financial statements to comply with the Accounting
Standards specified under Section 133 of the Companies Act, 2013, read
with Rule 7 of the Companies (Accounts) Rules, 2014, to the extent
applicable, as adopted consistently by the Company. The Financial
Statements have been prepared under the historical cost convention, on
the basis of going concern and on an accrual basis except as stated
otherwise.
C. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
D. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any cost attributable to bringing the
asset to its working condition for its intended use. Some of the
building properties owned by the Company which have been revalue are
stated at revalue amounts less accumulated depreciation.
Intangible Assets are recognised on the basis of recognition criteria
as set out in Accounting Standard  (AS-26) "Intangible Assets". Bought
out softwareÂs are recognised at cost of purchase.
E. INVENTORIES
Inventories are valued as under:-
i. Building Materials, Stores, Spare Parts at weighted average cost
ii. Shuttering & Scaffolding Materials at depreciated cost
iii. Apartments / Houses / Shops/ Flats at lower of cost or net
realization value
iv. Projects in Progress It represents land acquired for future
development and construction, and is stated at cost including the cost
of land, the related costs of acquisition, construction costs,
borrowing costs incurred to get the properties ready for their intended
use.
Cost is calculated on weighted average basis.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and costs
required to make the sale.
F. DEPRECIATION
All fixed assets (including intangible assets) are stated at historical
cost less any accumulated depreciation/ amortisation. Cost includes
original cost of acquisition including incidental expenses related to
such acquisition.
Depreciation on fixed assets other than Plant and Machinery relating to
Windmill is provided on Written down value method over the estimated
useful life as prescribed under Schedule II to the Companies Act, 2013.
Pursuant to this policy, depreciation is provided at the following
rates which are in line with the corresponding useful life prescribed
in Schedule II to the Companies Act, 2013:-
Office & Residential Premises 60 years
Plant & Machinery (Computers) 3 years
Plant & Machinery (Others) 15 years
Furniture & Fixtures 10 years
Office Equipments 5 years
Air Conditioning Plant & Air Conditioners 15 years
Vehicles 10 years
i. Cost of Leasehold land is amortized over the period of lease.
ii. Assets costing up to Rs.5,000/- are fully depreciated in the year
of purchase.
iii. Amortisation of intangible assets has been done on straight-line
basis over a period of five years, which in the opinion of the
management represents the best estimate of useful life of these assets.
G. INVESTMENTS
Investment intended to be held for more than a year are classified as
long term investments. All other investments are classified as current
investments. Current investments are stated at lower of cost and
market/fair value. Long term investments are stated at cost. Decline in
value of long term investments is recognized, if considered other than
temporary.
H. REVENUE RECOGNITION
i. The Company follows "Percentage of Completion Method" of accounting
for contracts and constructed residential, institutional and commercial
properties. As per this method, the revenue is recognized in proportion
to the actual costs incurred as against the total estimated cost of the
projects under execution subject to actual cost being 30% or more of
the total estimated cost.
Effective 1 April 2012, in accordance with the "Guidance Note on
Accounting for Real Estate Transactions (Revised 2012)" (Guidance note)
all projects commencing on or after the said date or projects where
revenue is recognized for the first time on after the above date,
construction revenue on such projects have been recognized on
percentage of completion method provided the following thresholds have
been met in addition to the existing conditions.
(a) All critical approvals necessary for the project commencement have
been obtained.
(b) The expenditure incurred on construction and development cost
(excluding land costs) is not less than 25% of the total estimated
construction and development costs.
(c) At least 25% of the saleable project area is secured by agreements
with buyers; and
(d) at least 10% of the sale proceeds relating to agreements secured
are realized at the reporting date in respect of such contracts.
ii. Income from know how fee is recognized as per the terms of the
agreement with the recipient of know how.
iii. The estimates relating to saleable area, sale value, estimated
costs etc., are revised and updated periodically by the management and
necessary adjustments are made in the accounts in the year in which the
estimates are revised.
iv. Indirect costs (Note no. 23,24,25,26) are treated as "Period Costs"
and are charged to the Statement of Profit & Loss in the year in which
they are incurred.
v. Surrender of fats by buyers are valued at cost and accounted for as
surrender of rights under 'Cost of Construction' in the case of
projects in progress and once sold, proceeds are treated as 'Sales'.
vi. For recognizing income and working out related cost of
construction, in case of developed land, fats / shops/ houses/ farms
etc., major self contained residential township projects are divided
into various schemes such as plotted area, constructed houses,
commercial area, malls etc.
vii. Whereas all income and expenses are accounted for on accrual
basis, interest on delayed payments by customers against dues and
holding charges, interest claims for delay in projects and assured
returns to customers are taken into account on realization or payment
owing to practical difficulties and uncertainties involved.
viii. Income from Windmill is accounted for on the basis of power
supplied to the Customer as per the terms of the Power Purchase
Agreement with the respective party.
ix. Interest income on fixed deposit with banks is recognized on time
proportion basis taking into account the amount outstanding and the
rates applicable.
x. Dividend income from investments is recognized when the Company's
right to receive payment is established.
I. ADVANCES TO SUBSIDIARIES, ASSOCIATES AND OTHERS FOR PURCHASE OF
LAND
Advances given to subsidiary and land holding companies for acquiring
land are initially classified as 'Advances' for purchase of land under
Loans & Advances. On obtaining the license for a land, the full cost of
the land is transferred to cost of land, an item of cost of
construction, from 'Advance against land'.
J. RETIREMENT AND OTHER BENEFITS
i. Contribution to the Provident Fund is charged to the revenue each
year.
ii. Provisions for Gratuity and leave encashment are made on the basis
of actuarial valuation at the year-end in accordance with Accounting
Standard (AS-15) 'Employee Benefits'. The actuarial valuation is done
as per Projected Unit Credit Method (PUCM). Actuarial gains/losses are
immediately taken to Statement of profit & Loss in the year in which
such gains or losses arise.
K. FOREIGN CURRENCY TRANSLATION / CONVERSION
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transactions. Gains / Losses arising due to
fluctuations in the exchange rates are recognized in the Statement of
Profit & Loss in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to
translation of monetary items at the year-end are accounted for in the
Statement of Profit & Loss.
L. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are considered as part of cost of
that asset. In accordance with Accounting Standard (AS-16) Â "
Borrowing Costs", a qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. Other
borrowing costs are expensed as period costs.
Borrowing costs that are directly attributable to the projects are
charged to the respective Project on the basis of expenditure incurred
net of customer collections.
M. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22,
"Accounting for Taxes on Income", as stated below:
i. Provision for current tax is made based on taxable income for the
year computed in accordance with provisions of the Income Tax Act,
1961.
ii. Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
iii. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws.
iv. Deferred tax asset is recognized and carried forward to the extent
that there is a reasonable certainty of realization. In the case of
unabsorbed depreciation and carry forward tax losses deferred tax asset
is recognized, to the extent there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
N. SEGMENT POLICIES
The Company's reportable segments are identified based on
activities/products, risk and reward structure, organization structure
and internal reporting systems.
O. ACCOUNTING FOR JOINT VENTURES
i. Jointly controlled operations  The Company's share of revenue,
expenses, assets and liabilities are included in the financial
statements as revenue, expenses, assets and liabilities respectively.
ii. Jointly controlled entities  The Company's investment in jointly
controlled entities is reflected as investment and accounted for in
accordance with the Company's accounting policy of Investments. (See
Note No. 1(G) above)
P. IMPAIRMENT
At each Balance Sheet date, the management reviews the carrying amounts
of Fixed Assets to determine whether there is any indication that these
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of impairment loss and necessary provisions are made against
such impairment. The recoverable amount is the greater of the asset's
net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at
the weighted average cost of capital. Reversal of impairment loss is
recognized as income in the Statement of Profit & Loss to the extent of
impairment loss previously recognized.
Q. LEASE
When the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
When the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognised in the Statement of Profit and Loss on a
straight-line basis over the lease term. Costs, including depreciation
are recognised as an expense in the Statement of Profit and Loss.
Initial direct costs such as legal costs, brokerage costs, etc. are
recognised immediately in the Statement of Profit and Loss.
R. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are shown by way of note in the Notes to
Accounts in respect of obligations where based on the evidence
available, their existence at the balance sheet date is considered not
probable. Contingent assets are neither recognized in the accounts nor
disclosed.
S. EARNINGS PER SHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all potential dilutive equity shares.
T. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank, cash/ cheques in hand
and fixed deposits with banks with maturity period of three months or
less.
Mar 31, 2014
A. NATURE OF OPERATIONS
Ansal Properties and Infrastructure Ltd. ("APIL" or the "Company"), was
incorporated in 1967. The Company''s main business is real estate
promotion and development in residential and commercial segment.
B. BASIS OF PREPARATION OF ACCOUNTS
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Stan- dards notified by the
Central Government as per the Companies (Accounting Standards) Rules,
2006(as amended) read with the Circular No.15/2013 dated September 13,
2013 and General Circular No. 8/2014 dated 4th April 2014 issued by the
Ministry of Corporate Affairs and the relevant provisions of the
Companies Act, 1956. The Financial Statements have been prepared under
the historical cost convention, on the basis of going concern and on an
accrual basis except as stated otherwise.
C. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires man- agement to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
peri- od. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
D. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any cost at- tributable to bringing
the asset to its working condition for its intended use. Some of the
flats owned by the Company which have been revalued are stated at
revalued amounts less accumulated depreciation.
Intangible Assets are recognised on the basis of recognition criteria
as set out in Accounting Standard - (AS-26) "Intangible Assets". Bought
out softwares are recognised at cost of purchase.
E. INVENTORIES
Inventories are valued as under:-
i. Building Materials, Stores, Spare Parts at weighted average cost
ii. Shuttering & Scaffolding Materials at depreciated cost
iii. Apartments / Houses / Shops/ Flats at lower of cost or net
realisable value
iv Projects in Progress It represents land acquired for future
development and con
struction, and is stated at cost including the cost of land, the
related costs of acquisition,Construction costs, borrowing costs
incurred to get the properties ready for their intended use.
Cost is calculated on weighted average basis.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of comple- tion and costs
required to make the sale.
F. DEPRECIATION
i. Depreciation on Plant and Machinery relating to Windmill is provided
on Straight Line Method and in respect of remaining fixed assets, on
Written Down Value Method at the rates and in the manner prescribed in
Schedule -XIV to the Companies Act, 1956.
ii. Cost of Leasehold land is amortized over the period of lease.
iii. Assets costing up to Rs.5,000/- are fully depreciated in the year
of purchase.
iv. Intangible Assets are amortized over the expected duration of
benefits not exceeding ten years.
G. INVESTMENTS
Investment intended to be held for more than a year are classified as
long term investments. All other investments are
classified as current investments. Current investments are stated at
lower of cost and market/fair value. Long term
investments are stated at cost. Decline in value of long term
investments is recognized, if considered other than tern
porary
H. REVENUE RECOGNITION
i. The Company follows "Percentage of Completion Method" of accounting
for contracts and constructed residen- tial, institutional and
commercial properties. As per this method, the revenue is recognized in
proportion to the actual costs incurred as against the total estimated
cost of the projects under execution subject to actual cost being 30%
or more of the total estimated cost.
Effective 1 April 2012, in accordance with the "Guidance Note on
Accounting for Real Estate Transactions (Revised 2012)" (Guidance note)
all projects commencing on or after the said date or projects where
revenue is recognized for the first time on after the above date,
construction revenue on such projects have been recog- nized on
percentage of completion method provided the following thresholds have
been met in addition to the existing conditions.
(a) All critical approvals necessary for the Project commencement have
been obtained.
(b) The expenditure incurred on construction and development cost
(excluding land costs) is not less than 25% of the total estimated
construction and development costs.
(c) At least 25% of the saleable project area is secured by agreements
with buyers; and
(d) at least 10% of the sale proceeds relating to agreements secured
are realized at the reporting date in respect of such contracts.
ii. Income from know how fee is recognized as per the terms of the
agreement with the recipient of know how.
iii. The estimates relating to saleable area, sale value, estimated
costs etc., are revised and updated periodically by the management and
necessary adjustments are made in the accounts in the year in which the
estimates are revised.
iv. Indirect costs (Note no. 23,24,25,26) are treated as "Period Costs"
and are charged to the Statement of Profit & Loss in the year in which
they are incurred.
v. Surrender of flats by buyers are valued at cost and accounted for as
surrender of rights under ''Cost of Construction'' in the case of
projects in progress and once sold, proceeds are treated as ''Sales''.
vi. For recognizing income and working out related cost of
construction, in case of developed land, flats / shops/ houses/farms
etc., major self contained residential township projects are divided
into various schemes such as plotted area, constructed houses and
commercial area, malls etc.
vii. Whereas all income and expenses are accounted for on accrual
basis, interest on delayed payments by customers against dues and
holding charges, interest claims for delay in projects and assured
returns to customers are taken into account on realization or payment
owing to practical difficulties and uncertainties involved.
viii. Income from Windmill is accounted for on the basis of power
supplied to the Customer as per the terms of the Power Purchase
Agreement with the respective party.
ix. Interest income on fixed deposit with banks is recognized on time
proportion basis taking into account the amount outstanding and the
rates applicable.
x. Dividend income from investments is recognized when the Company''s
right to receive payment is established.
I. ADVANCES TO SUBSIDIARIES, ASSOCIATES AND OTHERS FOR PURCHASE OF
LAND
Advances given to subsidiary and land holding companies for acquiring
land are initially classified as ''Advances'' for purchase of land under
Loans & Advances. On obtaining the license for a land, the full cost of
the land is transfer- red to cost of land, an item of cost of
construction, from ''Advance against land''.
J. RETIREMENT AND OTHER BENEFITS
i. Contribution to the Provident Fund is charged to the revenue each
year.
ii. Provisions for Gratuity and leave encashment are made on the basis
of actuarial valuation at the year-end in accordance with Accounting
Standard (AS-15) ''Employee Benefits''. The actuarial valuation is done
as per Projected Unit Credit Method (PUCM). Actuarial gains/(losses)
are immediately taken to Statement of profit & Loss in the year in
which such gains or losses arise.
K. FOREIGN CURRENCY TRANSLATION / CONVERSION
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transactions. Gains Losses arising due to
fluctuations in the exchange rates are recognized in the Statement of
Profit & Loss in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to
translation of monetary items at the year-end are accounted for in the
Statement of Profit & Loss.
L. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are considered as part of cost of
that asset. In accordance with Accounting Standard (AS-16)-" Borrowing
Costs", a qualifying asset is one that necessarily takes a substantial
period of time to get ready for its intended use. Other borrowing costs
are expensed as period costs.
Borrowing costs that are directly attributable to the projects are
charged to the respective Project on the basis of expenditure incurred
net of customer collections.
M. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22,
"Accounting for Taxes on Income", as stated be- low:
i. Provision for current tax is made based on taxable income for the
year computed in accordance with provisions of the Income Tax Act,
1961.
ii. Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
iii. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the bal- ance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws.
iv Deferred tax asset is recognized and carried forward to the extent
that there is a reasonable certainty of reali- zation. In the case of
unabsorbed depreciation and carry forward tax losses deferred tax asset
is recognized, to the extent there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
N. SEGMENT POLICIES
The Company''s reportable segments are identified based on
activities/products, risk and reward structure, organization structure
and internal reporting systems.
O. ACCOUNTING FOR JOINT VENTURES
i. Jointly controlled operations - The Company''s share of revenue,
expenses, assets and liabilities are included in the financial
statements as revenue, expenses, assets and liabilities respectively.
ii. Jointly controlled entities - The Company''s investment in jointly
controlled entities is reflected as investment and accounted for in
accordance with the Company''s accounting policy of Investments. (See
Note No. 1(G) above)
P. IMPAIRMENT
At each Balance Sheet date, the management reviews the carrying amounts
of Fixed Assets to determine whether there is any indication that these
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of impairment loss and necessary provisions are made against
such impairment. The recoverable amount is the greater of the asset''s
net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at
the weighted average cost of capital. Reversal of impairment loss is
recognized as income in the Statement of Profit & Loss to the extent of
impairment loss previously recognized.
Q. LEASES
When the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
When the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognised in the Statement of Profit and Loss on a
straight-line basis over the lease term. Costs, including depreciation
are recognised as an expense in the Statement of Profit and Loss.
Initial direct costs such as legal costs, brokerage costs, etc. are
recognised imme- diately in the Statement of Profit and Loss.
R. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are shown by way of note in the Notes to
Accounts in respect of obligations where based on the evidence
available, their existence at the balance sheet date is considered not
probable. Contingent assets are neither recognized in the accounts nor
disclosed.
S. EARNING PER SHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity sharehold- ers by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all potential dilutive equity shares.
T. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank, cash/ cheques in hand
and fixed deposits with banks with matu- rity period of three months or
less.
b. Terms/rights attached to Equity Shares
The Company has only one class of Equity Shares having a nominal value
of Rs.5/- each. Each holder of Equity Shares is entitled to one vote
per share. The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General
Meeting. In the event of liquidation of the company , the holders of
Equity Shares will be entitled to receive remaining assets of the
company , after distribution of all preferential amounts. The
distribution will be in proportion to the number of Equity Shares held
by the Shareholders.
Nature of Security and Terms of Repayment for Secured Borrowings
a. Debentures
(i) 2,073,770 Debentures of face value of Rs. 100 with the issue price
of Rs.305 per debenture aggregating to Rs.6,325 lacs carrying a coupon
rate of 16.50% p.a, issued to HDFC Venture Trustee Company Limited on
August 26,2008, were due for redemption on February 27,2010. The
redemption was subsequently extended upto October 31,2010 and upto June
15,2013. Out of total value of debentures amounting Rs. 6,325 lacs, the
Company has repaid Rs. 4,893 lacs till March 31, 2013 and the balance
outstanding debentures had been repaid during the current financial
year . Out of balance outstanding Debentures of Rs. 1,195.25 lacs.Rs.
819.66 lacs were classified as secured against the security of flats
belonging to the Company.
b. Term Loans
(i) The outstanding balance of Rs.294.34 lacs as on March
31,2014(Previous year Rs. 55.34 lacs), from banks/ corporate bodies
against Vehicle / Equipment loans are secured by hypothecation of
vehicles and equipments. The outstanding balance as on March 31,2014 is
repayable in 31 monthly installments ranging from Rs. 0.29 lacs to Rs.
2.18 lacs.
(ii) The outstanding balance of Rs.9772.47 lacs as on March 31,2014
(Previous year Rs. 17,450.52 lacs), These loan are secured by way of
first mortgage / charge on the immovable property located at Lucknow,
Ansal Plaza (Khel Gaon New Delhi, Gurgaon and Greater Noida), Greater
Noida, Sonepat, Badshahpur (Gurgaon). In addition,
-ii n . i_t- iuiul uui i njuuti jv niinuai i c|_»ji i l.j j- i t
secured by exclusive charge on Project assets and receivables and by
Personal Guarantee of two Promoter Directors. The outstanding balance
as on March 31,2014 is repayable in 108 monthly/quarterly installments
ranging from Rs. 2.86 lacs to Rs. 1,250 lacs.
(iii) The outstanding balance of Rs. Nil as on March 31,2014(Previous
year Rs. 4867 lacs), out of sanctioned loan of Rs. 13,000 lacs is
secured byway of first mortgage/charge on the immovable property
located atPanipat, Lucknow (Uttar Pradesh) and units of Ansal Bhawan
located at New Delhi. In addition, secured by exclusive charge on
Project assets, receivables, Pledge of shares of the Company owned by
Promoters and by Personal Guarantees of two Promoter Directors.
(iv) The outstanding balance of Rs.9985 lacs as on March
31,2014(Previous year Rs. 6,000 lacs), out of sanctioned loan of Rs.
18500 lacs is secured by way of first mortgage / charge on the
immovable property located at Lucknow, Panipat and units of Ansal
Bhawan located at New Delhi. In addition, secured by exclusive charge
on three Group Housing Projects, EWS/LIG projects assets and
receivables , receivables, Pledge of shares of the Company owned by
Promoters and by Personal Guarantees of two Promoter Directors. The
outstanding balance as on March 31,2014 is repayable in 28 quarterly
installments ranging from Rs 417 Lacs to Rs. 750 lacs each.
(v) The outstanding balance of Rs. 2,000 lacs as on March
31,2014(Previous year Rs. 2,800 lacs), out of sanctioned loan of Rs.
5,000 lacs is secured by way of exclusive charge on the machineries of
Wind power Project located at Gujarat. In addition, secured by
exclusive charge on project receivables and documents and by Personal
Guarantees of two Promoter Directors. The outstanding balance as on
March 31,2014 is repayable in 8 quarterly installments of Rs.250 lacs
each.
(vi) The outstanding balance of Rs. 2,500.00 lacs as on March 31,2014
(Previous year Rs.4,100), out of sanctioned loan of Rs. 5,000 lacs is
secured by way of first mortgage /charge on the immovable property
located at Kurukshetra and Mohali. In addition, secured by exclusive
charge on Project assets and receivables and by Personal Guarantees of
two Promoter Directors. The outstanding balance as on March 31,2014 is
repayable in 4 quarterly installments ranging from Rs. 550 lacs to Rs.
850 lacs.
(vii) The outstanding balance of Rs. 1,200.00 lacs as on March
31,2014(Previous year Rs.2000), out of sanctioned loan of Rs. 2,500
lacs is secured by way of first mortgage / charge on the immovable
property located at Yamuna Nagar and Mohali. In addition, secured by
exclusive charge on Project assets and receivables and by Personal
Guarantees of two Promoter Directors. The outstanding balance as on
March 31,2014 is repayable in 4 quarterly installments of Rs. 300 lacs.
(viii) The outstanding balance of Rs. Nil as on March 31,2014(Previous
year Rs. 4,603.52 lacs), out of sanctioned loan of Rs. 17,500 lacs is
secured by way of first mortgage / charge on the immovable property
located at Agra, Sonepat and Mohali. In addition, secured by exclusive
charge on Project assets and receivables and by Personal Guarantees of
Promoter Director.
(ix) The outstanding balance of Rs. 2,058.13 lacs as on March
31,2014(Previous year Rs. 3,835.22 lacs), out of sanctioned loan of
Rs.7,500 lacs is secured by way of first mortgage / charge on the
immovable property located at Lucknow. In addition, secured by
exclusive charge on Jaipur Phase-ll Project receivables and by Personal
Guarantees of two Promoter Directors. The outstanding balance as on
March 31,2014 is repayable in 5 quarterly installments of Rs. 383.52
lacs each.
(x) The outstanding balance of Rs. Nil as on March 31,2014(Previous
year Rs. 1,500 lacs), out of sanctioned loan of Rs. 6,000 lacs is
secured by way of first mortgage / charge on the immovable property
located at Sonepat. In addition, secured by exclusive charge on
Project receivables and assets and by Personal Guarantees of two
Promoter Directors.
(xi) The outstanding balance of Rs.2,000.00 lacs as on March 31,2014
(Previous year Rs. 1100), out of sanctioned loan of Rs. 2,600 lacs is
secured by way of mortgage of land admeasuring 19.79 acres situated at
Sushant Golf Link City, Lucknow alongwith proposed projects namely
Jeewan Enclave and Media Enclave to be constructed on this land and by
Personal Guarantee of two Promoter Directors. The outstanding balance
as on 31st March,2014 is repayable in 10 Quarterly insallment of Rs.
260 lacs each starting from November 14
(xii) The outstanding balance of Rs.5,000 lacs as on March 31,2014
(Previous year Rs. Nil), out of sanctioned loan of Rs. 7,200 lacs is
secured by way of mortgage of land admeasuring 30.65 acres and building
theiron situated at Sonipat and by Personal Guarantee of two Promoter
Directors. The outstanding balance as on 31st March,2014 is repayable
in 11 Quarterly insallment of Rs. 604 lacs each from September 14 to
March,2017 and last instalment of Rs.606 lacs in June, 2017
(xiii) The outstanding balance of Rs.9,900 lacs as on March 31,2014
(Previous year Rs. Nil ), out of sanctioned loan of Rs. 1,500 lacs is
secured by way of Mortagage of land admeasuring 13.05 acre in ETA II
and construction thereon and by Personal Guarantee of two Promoter
Directors. The outstanding balance as on 31st March,2014 is repayable
in 16 Quarterly insallment of Rs. 938 lacs each from March, 2015.
(xiv) The outstanding balance of Rs. Nil as on March 31,2014(Previous
year Rs.230 Lacs), out of sanctioned loan of Rs.230 lacs is secured by
lien over Fixed Deposits of the Company.
The Interest on above term loans from banks and corporate bodies are
linked to the respective Banks/ Institutions base rates which are
floating in nature. Interest rates during the year varied from 8.16% to
18.00% per annum.
c. Deposits
Deposits from Shareholder and Public carry interest rate from 11.50% to
12.50% and are repayable in one yearto three years.
a. The outstanding balance of Rs. 5,561.76 lacs as on March 31,2014
(Previous year Rs. 6,808.46 lacs), out of sanctioned limit of Rs.6,735
lacs is secured by way of first mortgage / charge on the immovable
property located at Palam Vihar, Sonepat, Panipat and Revolving
Restaurant-Antriksh Bhawan of the company and one individual property.
In addition, secured by exclusive charge on Project assets and
receivables and by Personal Guarantees of two Promoter Directors.
b. The outstanding balance Rs. 1,563.61 lacs as on March 31,2014
(Previous year Rs. 3.396.65 lacs) , out of sanctioned limit of Rs. 6700
lacs is secured by way of first mortgage / charge on the immovable
property located at Panipat and Badshahpur (Gurgaon) of the company. In
addition, secured by exclusive charge on Project assets and receivables
and by Personal Guarantees of two Promoter Directors. The outstanding
balance as on March 31,2014 is repayable in monthly installments
ranging from Rs.100 lacs to Rs.200 lacs.
c. The outstanding balance Rs. 1,570.84 lacs as on March 31,2014
(Previous year Rs. 1,569.86 lacs), out of sanctioned loan of Rs. 1,550
lacs is secured by way of first mortgage / charge on the immovable
property located at Sonepat of the company. In addition, secured by
exclusive charge on Project assets and receivables of the company .
d. Fixed Deposits from Shareholder and Public carry interest rate from
11.50% to 12.50% and are repayable in six months to one year.
e. The Interest on above loans from banks are linked to the respective
Banks base rates which are floating in nature. Interest rates during
the year varied from 15.50% to 16.25% per annum.
# The outstanding amount of Rs.900 Lacs (Previous Year Rs.510.03 Lacs
Jagainst bills discounted from IDBI Bank Limited against sanctioned
limit of Rs.2500.00 lacs.This is secured primarily against accepted and
Co- accepted bills of Exchange / PDC in respect of bills drawn on the
company . Further, it is collaterally secured with Corporate Guarantee
of Ansal Properties and Infrastructure Limted (Holding Company) and
Personal Guarantees of Mr. Sushil Ansal and Mr. Pranav Ansal.
* There are no amounts due and outstanding to be credited to the
Investor Education & Protection Fund.
** Represents advances adjustable against sale consideration of
Plots/Flats/Houses net of debtors adjustable against
sale consideration of Plots/Flats/Houses etc. and are generally not
refundable.
Mar 31, 2013
A. NATURE OF OPERATIONS
Ansal Properties and Infrastructure Ltd. ("APIL" or the "Company''''),
was incorporated in 1967. The Company''s main business is real estate
promotion and development in residential and commercial segment.
B. BASIS OF PREPARATION OF ACCOUNTS
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Standards notified by the
Central Government as per the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956. The
Financial Statements have been prepared under the historical cost
convention, on the basis of going concern and on an accrual basis
except as stated otherwise.
C. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
D. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any cost attributable to bringing the
asset to its working condition for its intended use. Some of the flats
owned by the Company which have been revalued are stated at revalued
amounts less accumulated depreciation.
Intangible Assets are recognised on the basis of recognition criteria
as set out in Accounting Standard  (AS-26) "Intangible Assets". Bought
out softwares are recognised at cost of purchase.
E. INVENTORIES
Inventories are valued as under:- i. Building Materials, Stores, Spare
Parts at weighted average cost ii. Shuttering & Scaffolding Materials
at depreciated cost iii. Apartments / Houses / Shops/ Flats at lower
of cost or net realization value
iv. Projects in Progress It represents land acquired for future
development and construction, and is stated at cost including the cost
of land, the related costs of acquisition, construction costs,
borrowing costs incurred to get the properties ready for their intended
use.
Cost is calculated on weighted average basis.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and costs
required to make the sale.
F. DEPRECIATION
i. Depreciation on Plant and Machinery relating to Windmill is provided
on Straight Line Method and in respect of remaining fixed assets, on
Written Down Value Method at the rates and in the manner prescribed in
Schedule ÂXIV to the Companies Act, 1956.
ii. Cost of Leasehold land is amortized over the period of lease.
iii. Assets costing up to Rs.5,000/- are fully depreciated in the year
of purchase.
iv. Intangible Assets are amortized over the expected duration of
benefits not exceeding ten years.
G. INVESTMENTS
Investment intended to be held for more than a year are classified as
long term investments. All other investments are classified as current
investments. Current investments are stated at lower of cost and
market/fair value. Long term investments are stated at cost. Decline in
value of long term investments is recognized, if considered other than
temporary.
H. REVENUE RECOGNITION
i. The Company follows "Percentage of Completion Method" of accounting
for contracts and constructed residential, institutional and commercial
properties. As per this method, the revenue is recognized in proportion
to the actual costs incurred as against the total estimated cost of the
projects under execution subject to actual cost being 30% or more of
the total estimated cost.
Effective 1 April 2012, in accordance with the "Guidance Note on
Accounting for Real Estate Transactions (Revised 2012)" (Guidance note)
all projects commencing on or after the said date or projects where
revenue is recognized for the first time on after the above date,
construction revenue on such projects have been recognized on
percentage of completion method provided the following thresholds have
been met in addition to the existing conditions.
(a) All critical approvals necessary for the project commencement have
been obtained.
(b) The expenditure incurred on construction and development cost
(excluding land costs) is not less than 25% of the total estimated
construction and development costs.
(c) At least 25% of the saleable project area is secured by agreements
with buyers; and
(d) at least 10% of the sale proceeds relating to agreements secured
are realized at the reporting date in respect of such contracts.
ii. Income from know how fee is recognized as per the terms of the
agreement with the recipient of know how.
iii. The estimates relating to saleable area, sale value, estimated
costs etc., are revised and updated periodically by the management and
necessary adjustments are made in the accounts in the year in which the
estimates are revised.
iv. Indirect costs (Note no. 23, 24, 25 & 26) are treated as "Period
Costs" and are charged to the Statement of Profit & Loss in the year in
which they are incurred.
v. Surrender of flats by buyers are valued at cost and accounted for as
surrender of rights under ''Cost of Construction'' in the case of
projects in progress and once sold, proceeds are treated as ''Sales''.
vi. For recognizing income and working out related cost of
construction, in case of developed land, flats / shops/ houses/ farms
etc., major self contained residential township projects are divided
into various schemes such as plotted area, constructed houses and
commercial area, malls etc.
vii. Whereas all income and expenses are accounted for on accrual
basis, interest on delayed payments by customers against dues and
holding charges, interest claims for delay in projects and assured
returns to customers are taken into account on realization or payment
owing to practical difficulties and uncertainties involved.
viii. Income from Windmill is accounted for on the basis of power
supplied to the Customer as per the terms of the Power Purchase
Agreement with the respective party.
ix. Interest income on fixed deposit with banks is recognized on time
proportion basis taking into account the amount outstanding and the
rates applicable.
x. Dividend income from investments is recognized when the Company''s
right to receive payment is established.
I. ADVANCES TO SUBSIDIARIES, ASSOCIATES AND OTHERS FOR PURCHASE OF
LAND
Advances given to subsidiary and land holding companies for acquiring
land are initially classified as ''Advances for purchase of land'' under
Loans & Advances. On obtaining the license for a land, the full cost of
the land is transferred to cost of land, an item of cost of
construction, from ''Advance against land''.
J. RETIREMENT AND OTHER BENEFITS
i. Contribution to the Provident Fund is charged to the revenue each
year.
ii. Provisions for Gratuity and leave encashment are made on the basis
of actuarial valuation at the year-end in accordance with Accounting
Standard (AS-15) ''Employee Benefits''. The actuarial valuation is done
as per Projected Unit Credit Method (PUCM). Actuarial gains/ (losses)
are immediately taken to Statement of Profit & Loss in the year in
which such gains or losses arise.
K. FOREIGN CURRENCY TRANSLATION / CONVERSION
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transactions. Gains / Losses arising due to
fluctuations in the exchange rates are recognized in the Statement of
Profit & Loss in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to
translation of monetary items at the year-end are accounted for in the
Statement of Profit & Loss.
L. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are considered as part of cost of
that asset. In accordance with Accounting Standard (AS-16) Â "
Borrowing Costs", a qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. Other
borrowing costs are expensed as period costs.
Borrowing costs that are directly attributable to the projects are
charged to the respective Project on the basis of expenditure incurred
net of customer collections.
M. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22,
"Accounting for Taxes on Income", as stated below:
i. Provision for current tax is made based on taxable income for the
year computed in accordance with provisions of the Income Tax Act,
1961.
ii. Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
iii. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws.
iv. Deferred tax asset is recognized and carried forward to the extent
that there is a reasonable certainty of realization. In the case of
unabsorbed depreciation and carry forward tax losses, deferred tax
asset is recognized, to the extent there is virtual certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
N. SEGMENT POLICIES
The Company''s reportable segments are identified based on
activities/products, risk and reward structure, organization structure
and internal reporting systems.
O. ACCOUNTING FOR JOINT VENTURES
i. Jointly controlled operations  The Company''s share of revenue,
expenses, assets and liabilities are included in the financial
statements as revenue, expenses, assets and liabilities respectively.
ii. Jointly controlled entities  The Company''s investment in jointly
controlled entities is reflected as investment and accounted for in
accordance with the Company''s accounting policy of Investments. (See
Note No. 1(G) above)
P. IMPAIRMENT
At each Balance Sheet date, the management reviews the carrying amounts
of fixed assets to determine whether there is any indication that these
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of impairment loss and necessary provisions are made against
such impairment. The recoverable amount is the greater of the asset''s
net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at
the weighted average cost of capital. Reversal of impairment loss is
recognized as income in the Statement of Profit & Loss to the extent of
impairment loss previously recognized.
Q. LEASE
When the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit & Loss on a straight-line basis over the
lease term.
When the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognised in the Statement of Profit and Loss on a
straight-line basis over the lease term. Costs, including depreciation
are recognised as an expense in the Statement of Profit & Loss. Initial
direct costs such as legal costs, brokerage costs, etc. are recognised
immediately in the Statement of Profit & Loss.
R. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are shown by way of note in the Notes to
Accounts in respect of obligations where based on the evidence
available, their existence at the balance sheet date is considered not
probable. Contingent assets are neither recognized in the accounts nor
disclosed.
S. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all potential dilutive equity shares.
T. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank, cash/ cheques in hand
and fixed deposits with banks with maturity period of three months or
less.
Mar 31, 2012
A. NATURE OF OPERATIONS
Ansal Properties and Infrastructure Ltd. ("APIL" or the
"Company"), was incorporated in 1967. The Company's main business is
real estate promotion and development in residential and commercial
segment.
B. BASIS OF PREPARATION OF ACCOUNTS
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Standards notified by the
Central Government as per the Companies (Accounting Standards) Rules,
2006 and the relevant provisions of the Companies Act, 1956. The
Financial Statements have been prepared under the historical cost
convention, on the basis of going concern and on an accrual basis
except as stated otherwise.
C. USE OF ESTIMATES
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
period. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
D. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any cost attributable to bringing the
asset to its working condition for its intended use. Some of the flats
owned by the Company which have been revalued are stated at revalued
amounts less accumulated depreciation.
Intangible Assets are recognised on the basis of recognition criteria
as set out in Accounting Standard (AS-26) "Intangible Assets".
Bought out softwares are recognised at cost of purchase.
E. INVENTORIES
Inventories are valued as under:-
i. Building Materials, Stores, Spare Parts at weighted average cost
ii. Shuttering & Scaffolding Materials at depreciated cost
ii. Apartments / Houses / Shops/ Flats at lower of cost or net
realization value
iv. Projects in Progress It represents land acquired for future
development and construction, and is stated at cost including the cost
of land, the related costs of acquisition, borrowing costs incurred to
get the properties ready for their intended use.
Cost is calculated on weighted average basis.
Net relisable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and costs
required to make the sale.
F. DEPRECIATION
i. Depreciation on Plant and Machinery relating to Windmill is
provided on Straight Line Method and in respect of remaining fixed
assets, on Written Down Value Method at the rates and in the manner
prescribed in Schedule- XIV to the Companies Act, 1956.
ii. Cost of Leasehold land is amortised over the period of lease.
iii. Assets costing upto Rs.5,000/-are fully depreciated in the year of
purchase.
iv. Intangible Assets are amortised over the expected duration of
benefits not exceeding ten years.
G. INVESTMENTS
Investment intended to be held for more than a year are classified as
long term investments. All other investments are classified as current
investments. Current investments are stated at lower of cost and market
value. Long term investments are stated at cost. Decline in value of
long term investments is recognized, if considered other than
temporary.
H. REVENUE RECOGNITION
i. The Company follows "Percentage of Completion Method" of
accounting for contracts and constructed residential, institutional and
commercial properties. As per this method, the revenue is recognized in
proportion to the actual costs incurred as against the total estimated
cost of the projects under execution subject to actual cost being 30%
or more of the total estimated cost.
In case of FSI sale, revenue is recognized to the extent of-
a. 50% if the sale consideration received is at Ieast20 %,
b. 100% if the sale consideration received is more than 50 %.
ii. Income from know how fee is recognized as per the terms of the
agreement with the recipient of know how.
iii. The estimates relating to saleable area, sale value, estimated
costs etc., are revised and updated periodically by the management and
necessary adjustments are made in the accounts in the year in which the
estimates are revised.
iv. Indirect costs (Note No. 22,23,24 & 25) are treated as "Period
Costs" and are charged to the Statement of Profit & Loss in the year
in which they are incurred.
v. Surrender of flats by buyers are valued at cost and accounted for
as surrender of rights under 'Cost of Construction1 in the case of
projects in progress and once sold, proceeds are treated as 'Sales'.
vi. For recognizing income and working out related cost of
construction, in case of developed land, flats / shops/ houses/farms
etc., major self contained residential township projects are divided
into various schemes such as plotted area, constructed houses and
commercial area, malls etc.
vii. Whereas all income and expenses are accounted for on accrual
basis, interest on delayed payments by customers against dues and
holding charges, interest claims for delay in projects and assured
returns to customers are taken into account on realization or payment
owing to practical difficulties and uncertainties involved.
viii. Income from Windmill is accounted for on the basis of power
supplied to the Customer as per the terms of the Power
Purchase Agreement with the respective party.
ix. The maintenance and other expenses incurred subsequent to
completion of projects are charged off to the Statement of Profit &
Loss under the head "Expenditure on Completed Projects".
x. Interest income on fixed deposit with banks is recognized on time
proportion basis taking into account the amount outstanding and the
rates applicable.
xi. Dividend income from investments is recognized when the Company's
right to receive payment is established.
I. ADVANCES TO SUBSIDIARIES, ASSOCIATES AND OTHERS FOR PURCHASE OF
LAND.
Advances given to subsidiary and land holding companies for acquiring
land are initially classified as 'Advances' for purchase of land under
Loans & Advances. On obtaining the license for a land, the full cost of
the land is transferred to cost of land, an item of cost of
construction, from 'Advance against land'.
J. RETIREMENT AND OTHER BENEFITS
i. Contribution to the Provident Fund is charged to the revenue each
year.
ii. Provisions for Gratuity and leave encashment are made on the basis
of actuarial valuation at the year-end in accordance with Accounting
Standard AS 15 on 'Employee Benefits'. The actuarial valuation is done
as per Projected Unit Credit Method (PUCM). Actuarial gains/(losses)
are immediately taken to Statement of profit & Loss in the year in
which such gains or losses arise.
K. FOREIGN CURRENCY TRANSLATION / CONVERSION
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transactions. Gains / Losses arising due to
fluctuations in the exchange rates are recognized in the Statement of
Profit & Loss in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to
translation of monetary items at the year-end are accounted for in the
Statement of Profit & Loss.
L. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are considered as part of cost of
that asset. In accordance with Accounting Standard (AS-16) "
Borrowing Costs", a qualifying asset is one that necessarily takes a
substantial period of time to get ready for its intended use. Other
borrowing costs are expensed as period costs.
Borrowing costs that are directly attributable to the projects are
charged to the respective Project on the basis of expenditure incurred
net of customer collections.
M. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22,
"Accounting for Taxes on Income", as stated below:
i. Provision for current tax is made based on taxable income for the
year computed in accordance with provisions of the Income Tax Act, 1961.
ii. Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
iii. Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets and deferred tax liabilities are offset, if a legally
enforceable right exists to set off current tax assets against current
tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws.
iv. Deferred tax asset is recognized and carried forward to the extent
that there is a reasonable certainty of realization. In the case of
unabsorbed depreciation and carry forward tax losses deferred tax asset
is recognized, to the extent there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
N. SEGMENT POLICIES
The Company's reportable segments are identified based on
activities/products, risk and reward structure, organization structure
and internal reporting systems.
O. ACCOUNTING FORJOINT VENTURES
i. Jointly controlled operations - The Company's share of revenue,
expenses, assets and liabilities are included in the financial
statements as revenue, expenses, assets and liabilities respectively.
ii. Jointly controlled entities - The Company's investment in jointly
controlled entities is reflected as investment and accounted for in
accordance with the Company's accounting policy of Investments. (See
Note No. 1(G) above)
P. IMPAIRMENT
At each Balance Sheet date, the management reviews the carrying amounts
of Fixed Assets to determine whether there is any indication that these
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of impairment loss and necessary provisions are made against
such impairment. The recoverable amount is the greater of the asset's
net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at
the weighted average cost of capital. Reversal of impairment loss is
recognized as income in the Statement of Profit & Loss to the extent of
impairment loss previously recognized.
Q. LEASE
When the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the Statement of Profit & Loss on a straight-line basis over the
lease term.
When the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognised in the Statement of Profit & Loss on a
straight-line basis over the lease term. Costs, including depreciation
are recognised as an expense in the Statement of Profit & Loss. Initial
direct costs such as legal costs, brokerage costs, etc. are recognised
immediately in the Statement of Profit & Loss.
R. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are shown byway of note in the Notes to Accounts
in respect of obligations where based on the evidence available, their
existence at the balance sheet date is considered not probable.
Contingent assets are neither recognized in the accounts nor disclosed.
S. EARNING PERSHARE
Basic earning per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all potential dilutive equity shares.
T. CASH AND CASH EQUIVALENTS
Cash and cash equivalents comprise cash at bank, cash/ cheques in hand
and fixed deposits with banks with maturity period of three months or
less.
Mar 31, 2011
1. NATURE OF OPERATIONS
Ansal Properties and Infrastructure Ltd. ("APIL" or the "Company''),
was incorporated in 1967. The Company's main business is real estate
promotion and development in residential and commercial segment.
2. BASIS OF PREPARATION OF ACCOUNTS
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Standards notified by the
Central Government as per the Companies Accounting Standard Rules, 2006
and the relevant provisions of the Companies Act, 1956. The Financial
Statements have been prepared under the historical cost convention, on
the basis of going concern and on an accrual basis except as stated
otherwise.
3. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the results of operations during
the reporting period. Although these estimates are based upon
management's best knowledge of current events an actions, actuals
results could differ from these estimates. Difference between the
actual result and estimates are recognised in the period in which the
results are known / materialised.
4. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Some of
the flats owned by the Company which have been revalued are stated at
revalued amounts less depreciation.
5. INVENTORIES
Inventories are valued as under:-
i) Building Materials, Stores, Spare Parts at weighted average cost
ii) Shuttering & Scaffolding Materials at depreciated cost
iii) Apartments / Houses / Shops/ Flats at lower of cost or market
value
iv) Projects in Progress at cost
6. DEPRECIATION
a) Depreciation on Plant and Machinery relating to Windmill is provided
on Straight Line Method and in respect of remaining fixed assets, on
Written Down Value Method at the rates and the manner prescribed in
Schedule ÃXIV to the Companies Act, 1956.
b) Cost of Leasehold land is amortised over the period of lease.
c) Assets costing up to Rs.5,000/- are fully depreciated in the year of
purchase
7. INVESTMENTS
Current investments are stated at lower of cost and market value. Long
term investments are stated at cost. Decline in value of long term
investments is recognized, if considered other than temporary.
8. REVENUE RECOGNITION
a) The Company follows "Percentage of Completion Method" of accounting
for contracts and constructed residential, Institutional and commercial
properties. As per this method, the revenue is recognized in proportion
to the actual costs incurred as against the total estimated cost of the
projects under execution subject to actual cost being 30% or more of
the total estimated cost.
In case of FSI sale, revenue is recognized to the extent of -
- 50% if the sale consideration received is at least 20 %,
- 100% if the sale consideration received is more than 50 %.
b) Income from know how fee is recognized as per the terms of the
agreement with the recipient of know how.
c) The estimates relating to saleable area, sale value, estimated costs
etc., are revised and updated periodically by the management and
necessary adjustments are made in the current year's accounts.
d). Indirect costs (as detailed in Schedule 16) are treated as "Period
Costs" and are charged to the Profit & Loss Account in the year in
which they are incurred.
e). Surrender of flats by buyers are valued at cost and accounted for
as surrender of rights under `Cost of Construction' in the case of
projects in progress and once sold, proceeds are treated as `Sales'.
f). For recognizing income and working out related cost of
construction, in case of developed land, flats / shops/ houses/ farms
etc., major self contained residential township projects are divided
into various schemes such as plotted area, constructed houses and
commercial area, malls etc.
g). Whereas all income and expenses are accounted for on accrual
basis, interest on delayed payments by customers against dues and
holding charges, interest claims for delay in projects and assured
returns to customers are taken into account on realization or payment
owing to practical difficulties and uncertainties involved.
h). Income from Windmill is accounted for on the basis of power
supplied to the Customer as per the terms of the Power Purchase
Agreement with the respective party.
i). The maintenance and other expenses incurred subsequent to
completion of projects are charged off to the Profit & Loss Account
under the head "Expenditure on Completed Projects".
j) Interest income on fixed deposit with bank is recognised on time
proportion basis taking into account the amount outstanding and the
rate applicable.
k) Dividend income from investments is recognised when the Company's
right to receive payment is established.
9. ADVANCES TO SUBSIDIARIES, ASSOCIATES AND OTHERS FOR PURCHASE OF
LAND.
Advances given to subsidiary and land holding companies for acquiring
land are initially classified as 'Advances' for purchase of land under
Loans & Advances. On obtaining the license for a land, the full cost of
the land is transferred to cost of land, an item of cost of
construction, from 'Advance against land'.
10. RETIREMENT AND OTHER BENEFITS
a) Contribution to the Provident Fund is charged to the revenue each
year.
b) Provisions for Gratuity and leave encashment are made on the basis
of actuarial valuation at the year-end in accordance with Accounting
Standard AS 15 (Revised 2005) on 'Employee Benefits'.
11. FOREIGN CURRENCY TRANSLATION / CONVERSION
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transactions. Gains / Losses arising due to
fluctuations in the exchange rates are recognized in the Profit & Loss
Account in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to
monetary items at the year-end are accounted for in the Profit & Loss
Account.
12. BORROWING COSTS
Borrowing costs that are attributable to the projects are charged to
the respective Project on the basis of net cash inflows. Other
borrowing costs are expensed as period costs.
13. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22,
Accounting for Taxes on Income, as stated below:
a) Provision for current tax is made based on taxable income for the
year computed in accordance with provisions of the Income Tax Act,
1961.
b) Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
c) Deferred tax asset is recognized and carried forward to the extent
that there is a reasonable certainty of realization. In the case of
unabsorbed depreciation and carry forward losses deferred tax asset is
recognized, to the extent there is virtual certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
14. IMPAIRMENT
At each Balance Sheet date, the management reviews the carrying amounts
of Fixed Assets to determine whether there is any indication that these
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of impairment loss and necessary provisions are made against
such impairment. Reversal of impairment loss is recognized as income in
the Profit & Loss Account to the extent of impairment loss previously
recognized.
15. LEASE
When Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Profit and Loss account on a straight-line basis over the lease
term.
When the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognised in the Profit and Loss Account on a straight-line
basis over the lease term. Costs including depreciation are recognised
as an expenses in thew Profit and Loss Account .Initial direct costs
such as legal costs, brokerage costs, etc. are recognised immediately
in the Profit and Loss Account.
16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions for expenses are recognized for liabilities that can be
measured by using a substantial degree of estimation, if
a) the Company has a present obligation as a result of past events.
b) a probable outflow of resources is expected to settle the
obligation, and
c) the amount of the obligation can be reliably estimated.
Contingent liability is disclosed in the case of
a) A present obligation arising from a past event when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of outflow of
resources is remote. Contingent assets are neither recognized nor
disclosed.
17. CASH AND CASH EQUIVALENTS
Cash and cash equivalents in the cash flow statement comprise cash at
bank cash / cheques in hand and fixed deposits with banks.
Mar 31, 2010
1. BASIS OF PREPARATION OF ACCOUNTS
The Financial Statements have been prepared to comply in all material
respects with the mandatory Accounting Standards notified by the
Central Government as per the Companies Accounting Standard Rules, 2006
and the relevant provisions of the Companies Act, 1956. The Financial
Statements have been prepared under the historical cost convention, on
the basis of going concern and on an accrual basis except as stated
elsewhere.
2. USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses forthe year presented.Actual results could differfrom
these estimates.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation. Some of
the flats owned by the Company which have been revalued are stated at
revalued amounts less depreciation.
4. INVENTORIES
Inventories are valued as under:-
i) Building Materials, Stores, Spare Parts at weighted average cost
ii) Shuttering & Scaffolding Materials at depreciated cost
iii) Apartments / Houses / Shops/ Flats at lower of cost or market
value
iv) Projects in Progress at cost
5. DEPRECIATION
a) Depreciation on Plant and Machinery relating to Windmill is provided
on Straight Line Method and in respect of remaining fixed assets, on
Written Down Value Method at the rates and the manner prescribed in
Schedule XIV to the Companies Act, 1956.
b) Cost of Leasehold land is amortised over the period of lease.
c) Assets costing up to Rs. 5,000/-are fully depreciated in the year of
purchase
6. INVESTMENTS
Current investments are stated at lower of cost and market value. Long
term investments are stated at cost. Decline in value of long term
investments is recognized, if considered otherthan temporary.
7. REVENUE RECOGNITION
a) The Company follows "Percentage of Completion Method" of accounting
for contracts and constructed residential, Institutional and commercial
properties. As per this method, the revenue is recognized in proportion
to the actual costs incurred as against the total estimated cost of the
projects under execution subject to actual cost being 30% or more of
the total estimated cost.
b) The revenue on sale of residential, institutional and commercial
plots is recognized on a proportionate basis when 30%, of the progress
has been achieved as measured in terms of the actual cost incurred to
the total estimated cost.
In case of FSI sale, revenue is recognized to the extent of-
- 50% if the sale consideration received is at Ieast20 %,
-100% if the sale consideration received is more than 50 %.
c). Income from know how fee is recognized as per the terms of the
agreement with the recipient of know-how.
d). The estimates relating to saleable area, sale value, estimated
costs etc., are revised and updated periodically by the management and
necessary adjustments are made in the current years accounts.
e). Indirect costs (as detailed in Schedule 16) are treated as "Period
Costs" and are charged to the Profit & Loss Account in the year in
which they are incurred.
f). Surrender of flats by buyers are valued at cost and accounted for
as Cost of Construction in the case of projects in progress and once
sold, proceeds are treated as Sales.
g). For recognizing income and working out related cost of
construction, in case of developed land, flats / shops/ houses/farms
etc., major self contained residential township projects are divided
into various schemes such as plotted area, constructed houses and
commercial area, malls etc.
h). Whereas all income and expenses are accounted for on accrual basis,
interest on delayed payments by customers against dues and holding
charges, interest claims for delay in projects and assured returns to
customers are taken into account on realization or payment owing to
practical difficulties and uncertainties involved.
i). Income from Windmill is accounted for on the basis of power
supplied to the Customer as per the terms of the Power Purchase
Agreement with the respective party.
j). The maintenance and other expenses incurred subsequent to
completion of projects are charged off to the Profit & Loss Account
under the head "Expenditure on Completed Projects".
8. ADVANCE STOSUB SIDIARIES.ASSOCIA TESA NDOT HERS FOR PURCHASEOF LAND.
Advances given to subsidiary and land holding companies for acquiring
land are initially classified as Advances for purchase of land under
Loans & Advances. On obtaining the license for a land, the full cost of
the land is transferred to cost of land.an item of cost of
constnjction.from-Advance against land1.
9. RETIREMENT AND OTHER BENEFITS
a) Contribution to the Provident Fund is charged to the revenue each
year.
b) Provisions for Gratuity and leave encashment are made on the basis
of actuarial valuation at the year-end in accordance with Accounting
Standard AS 15 (Revised 2005) on Employee Benefits.
10. FOREIGN CURRENCYTRANSLATION/CONVERSION
Transactions in foreign currency are recorded at the exchange rate
prevailing on the date of transactions. Gains / Losses arising due to
fluctuations in the exchange rates are recognized in the Profit & Loss
Account in the period in which they arise.
Gains / Losses on foreign exchange rate fluctuations relating to
monetary items at the year-end are accounted for in the Profits Loss
Account.
11. BORROWING COSTS
Borrowing costs that are attributable to the projects are charged to
the respective Project on the basis of net cash inflows. Other
borrowing costs are expensed as period costs.
12. TAXES ON INCOME
Income tax expense is accounted for in accordance with AS-22,
Accounting for Taxes on Income, as stated below:
a) Provision for current tax is made based on taxable income for the
year computed in accordance with provisions of the Income Tax Act,
1961.
b) Deferred tax is recognized, subject to the consideration of
prudence, on timing differences, being the difference between taxable
income and accounting income that originate in one period and are
capable of reversal in one or more subsequent periods.
c) Deferred tax asset is recognized and carried forward to the extent
that there is a reasonable certainty of realization. In the case of
unabsorbed depreciation and carryforward losses deferred tax asset is
recognized, to the extent there is virtual certainty that sufficient
future taxable income will be available against which such deferred
tax assets can be realized.
13. IMPAIRMENT
At each Balance Sheet date, the management reviews the carrying amounts
of Fixed Assets to determine whether there is any indication that these
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the
extent of impairment loss and necessary provisions are made against
such impairment. Reversal of impairment loss is recognized as income in
the Profit & Loss Account to the extent of impairment loss previously
recognized.
14. LEASE RENTALS
Rentals in respect of leased equipment are charged to the Profit and
Loss Account as per respective lease agreements.
15. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions for expenses are recognized for liabilities that can be
measured by using a substantial degree of estimation, if
a) the Company has a present obligation as a result of past events.
b a probable outflow of resources is expected to settle the obligation,
and
c) the amount of the obligation can be reliably estimated.
Contingent liability is disclosed in the case of
a) A present obligation arising from a past event when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) A possible obligation, unless the probability of out flow of
resource sisremote.
Contingent assets are neither recognized nordisclosed.
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