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Accounting Policies of Ansal Properties & Infrastructure Ltd. Company

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 software’s 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) – " 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,

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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 –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 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) – " 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, 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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