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Accounting Policies of Ashiana Housing Ltd. Company

Mar 31, 2015

A) BASIS OF ACCOUNTING :

The Financial Statements are prepared on accrual basis under historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 and the provisions of the Companies Act, 201 3.

All assets and liabilities have been classified as current or non-current, wherever applicable, as per the normal operating cycle of the Company as set out in the Schedule III to the Companies Act, 2013.

b) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates / assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/materialized. c)

c) FIXED ASSETS :

i) Fixed assets are valued at cost less depreciation/amortization.

ii) Capital work-in-progress is valued at cost.

iii) Intangible Assets under Development is valued at cost.

Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

d) DEPRECIATION AND AMORTIZATION :

i) Depreciation on tangible fixed assets is provided on Straight Line Method (SLM) at the rate s determined based on useful life of the asset as estimated by the management, or those prescribed under Schedule II to the Companies Act, 2013. The life considered for the major tangible fixed assets are as under :

Class of F ixe d Assets Useful Life (Years)

Buildings 60

Plant & Machinery 5 - 15

Furniture & Fixtures 8 - 10

Electrical Installations 10

Equipments and Facilities 5

Computer Hardwares 3

Vehicles 5 - 10

ii) Intangible assets are amortized over the period of useful life of the assets as estimated by the management.

e) INVESTMENTS :

i) Long term investments are carried at acquisition cost. Provision for diminution, if any, in the value of long term investments is made to recognize a decline, other than of a temporary nature.

ii) Investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value.

iii) Value of Intangible capital rights created in favor of the Company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts.

f) INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable Hotel & Club consumables value. However, materials and other items are not written down below cost if the constructed units/ food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold/Freehold Land and At Lower of cost and net realizable Development Rights value.

Unsold Completed Construction and At Lower of cost and net work in Progress realizable value. Cost includes direct materials, labour and project specific direct and indirect expenses and pro-rata unrealized cost from development of EWS/LIG units.

g) PRELIMINARY EXPENSES

Preliminary Expenses are written off over a period of five years beginning from the year in which new venture commences operation.

h) REAL ESTATE PROJECTS

i) Revenue in respect of the projects undertaken on or after 1st April, 2011 and the projects undertaken between 1st April, 2006 and 31st March, 2011 , which did not reach the level of completion as considered appropriate by the management within 31st March, 2011 , as discussed in (b) below, is accounted for (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion or (iii) on physical possession for fitout, as considered appropriate by the management based on circum stantial status of the project.

ii) Revenue in respect of projects underta ken between 1" April, 2006 and 31" March, 2011 , which did not reach the level of construction as considered appropriate by the management within 31" March, 2011 is recognized on the Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount at the close of the year appears under Current Liabilities as deduction from Advance fro m customers .

The estimates of saleable area and Construction cost are reviewed periodically by the management and effect of any change in estimates is recognized in the period such changes are determined.

iii) Selling Expenses related to specific Projects/U nits are being charged to Profit and Loss Account in the year in which Sale thereof is offered for taxation.

iv) Interest on delayed payments and other charges are accounted for on certainty of realization.

i) HOTEL & CLUB

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering of the services.

j) OTHER INCOME

Other income is accounted on accrual basis except where the receipt of income is uncertain.

k) FOREIGN CURRENCY TRANSACTIONS

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions. All payables and receivables related to foreign currency transactions outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognized in the Profit & Loss Account.

l) EMPLOYEE BENEFITS

i) Short term employee benefits:

All employee benefits payable within twelve months of rendering the service are classified as short term employee benefits. Such short term employee benefits are recognized at actual amounts due in the period in which the employee renders the related service.

ii) Post-employment benefits:

a) Defined Contribution Plans:

Payments made to defined contribution plans such as Provident Fund are charged as an expense as they fall due.

b) Defined Benefit Plans:

Provision for Gratuity and Leave Pay is determined on the actuarial valuation carried out at the balance sheet date in accordance with the provisions of Accounting Standard 1 5. Actuarial gains and losses are recognized in the Statement of Profit & Loss.

m) BORROWING COST

i) Interest and other financial charges incurred in connection with borrowing of funds, which are incurred for specific projects of the Company are charged to Work in Progress as a part of the cost of such projects.

ii) Other borrowing cost are recognized as expense in the Profit and Loss Account.

n) TAXES ON INCOME

i) Current Tax is determined as the amount of tax payable in respect of taxable inco me for the year.

ii) Deferred Tax is recognized, subject to consideration of prudence, in respect of deferred tax Assets/Li abilities arising 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 period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognized.

o) EARNINGS PER SHARE

The Basic earnings per share ("EPS") is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

p) IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in Accounting Standard - 28 is recognized whenever carrying value of such assets exceeds the market value or value in use, which ever is higher.

q) PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognized when the Company has a present obligation as a result of past results and it is probable that an outflow of resources em bodying economic benefits will be required to settle the obligation. Provisions are recognized at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.




Mar 31, 2013

SYSTEM OF ACCOUNTING:

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS :

1. Fixed assets are valued at cost less depreciation/amortization.

2. Capital work-in-progress is valued at cost.

3. Intangible assets under development is valued at cost.

DEPRECIATION AND AMORTIZATION :

1. Depreciation on tangible assets is provided on straight line basis in accordance with the provisions of Schedule XIV of the Companies Act, 1956.

2. Intangible assets are amortized over the period of useful life of the assets as estimated by the management.

INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable value. However, materials and other items are not written Hotel&Club consumables down below cost if the constructed units/food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land At Lower of cost and net realizable value.

Unsold Completed Construction At Lower of cost and net realizable value. Cost includes direct materials, labor and project and workin Progress specific directand indirect expenses.

REAL ESTATE PROJECTS :

a) Revenue in respect ofthe projects undertaken before 31st March, 2006 and the projects which have not reached the level of completion as considered appropriate by the management within 31 st March, 2011, as discussed in [b) below, is accounted for [i] on delivery of absolute physical possession ofthe respective units on completion, or [ii] on deemed possession ofthe respective units on completion or [iii] on physical possession for fitout, as considered appropriate by the management based on circumstantial status ofthe project.

b) Revenue in respect of projects undertaken on or after 1st April, 2006 which have reached the level of construction as considered appropriate by the management within 31 st March, 2011 is recognized on the " Percentage of Completion Method" [POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount atthe close ofthe year appears under'' Current Liabilities'' as deduction from "Advance from customers'' . The estimates of saleable area and Construction costare reviewed periodically by the management and effect of any change in estimates is recognized in the period such changes are determined.

c) Selling Expenses related to specific Projects/Units are being charged to Profit and Loss Account in the year in which Sale thereof is offered for taxation.

d) Intereston delayed paymentsand otherchargesareaccountedforon certainty of realization.

HOTELS CLUB:

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering ofthe services.

OTHER INCOME:

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME:

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred Taxis recognized, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising 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 period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognized.

INVESTMENTS:

a) Long term investments are carried at acquisition costand investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution intheirvalueare revalued attheircurrentvalue.

b) Value of Intangible capital rights created in favor ofthe company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts

FOREIGN CU RRENCY TRANSACTIONS:

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions. All payables and receivables related to foreign currency transactions outstanding atthe year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognized in the Profit & Loss Account.

EMPLOYEE BENEFITS:

a) Shortterm employee benefits are charged off atthe undiscounted amount in the year in which the related service is rendered.

b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized atthe present value ofthe amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates/ assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

IMPAIRMENT OF ASSETS:

Impairment Loss in the value of assets, as specified in Accounting Standard -28 is recognized whenever carrying value of such assets exceeds the market value orvaluein use, whichever is higher.


Mar 31, 2012

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS :

1. Fixed assets are valued at cost less depreciation/amortization.

2. Capital work-in-progress is valued at cost.

DEPRECIATION AND AMORTIZATION :

1. Depreciation on tangible assets is provided on straight line basis in accordance with the provisions of Schedule XIV of the Companies Act, 1956.

2. Intangible assets are amortized over the period of useful life of the assets as estimated by the management except that depreciation on intangible assets held by Ashiana Amar Developers, is provided at the rate as specified as Income Tax Rule,1962.

INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable value. However, materials and other items

Hotel & Club consumables are not written down below cost if the constructed units/food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land, At Lower of cost and net realizable value.

Unsold Completed Construction Cost includes direct materials, labour and construction overheads, and Work in Progress

REAL ESTATE PROJECTS:

a) Revenue in respect of the projects undertaken before March 31, 2006 and the projects which have not reached the level of completion as considered appropriate by the management within March 31, 2011, as discussed in (b) below, is accounted for (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion or (iii) on physical possession for fit out, as considered appropriate by the management based on circumstantial status of the project.

b) Revenue in respect of projects undertaken on or after April 01, 2006 which have reached the level of construction as considered appropriate by the management within March 31, 2011 is recognized on the " Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount at the close of the year appears under "Current Liabilities" as deduction from "Advance from customers".

The estimates of saleable area and Construction cost are reviewed periodically by the management and effect of any change in estimates is recognized in the period such changes are determined.

c) Interest on delayed payments and other charges are accounted for on certainty of realization.

HOTEL & CLUB

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering of the services.

OTHER INCOME

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME:

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred Tax is recognized, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising 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 period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognized.

INVESTMENTS:

a) Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

b) Value of intangible capital rights created in favor of the company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts.

FOREIGN CURRENCY TRANSACTIONS:

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions.

EMPLOYEE BENEFITS:

a) Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES:

The preparation of financial statements in conformist with generally accepted accounting principles requires estimates/ assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/ materialized.

IMPAIRMENT OF ASSETS:

Impairment Loss in the value of assets, as specified in Accounting Standard -28 is recognized whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.


Mar 31, 2010

SYSTEM OF ACCOUNTING:

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS AND DEPRECIATION :

(a) Fixed assets are valued at cost and depreciation is provided on straight line basis in accordance with the provisions of Schedule XIV to the Companies Act, 1956.

(b) Capital work in progress is valued at cost.

INVENTORIES:

Inventories are valued as follows:

Construction Material: At Lower of cost and net realizable value. However, materials and other items are not written down below cost if the constructed units in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land, Unsold Completed Construction and Work in Progress: At Lower of cost and net realizable value. Cost includes direct materials, labourand construction overheads.

REAL ESTATE PROJECTS:

(a) Revenue in respect of projects undertaken before March 31, 2006, is accounted for on the basis of date of delivery of physical possession to the respective customers.

(b) Revenue in respect of other projects is recognised on the "Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution upon the project reaches a level as considered appropriate by the management. The corresponding cumulative amount at the close of the year appears under Current Liabilities as deduction from Advance from customers.

The estimates of saleable areas, estimated costs and cost of completion are reviewed periodically by the management and effects of any changes in estimates is recognised in the period such changes are determined.

(c) Interest on delayed payments and other charges are accounted for on realisation.

OTHER INCOME:

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME:

(a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

(b) Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising 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 period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognised.

INVESTMENTS:

(a) Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

(b) Value of Intangible capital rights created in favour of the company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts.

FOREIGN CURRENCY TRANSACTIONS: Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions.

EMPLOYEE BENEFITS:

(a) Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

(b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES:

The preparation of financial statements in confirmity with generally accepted accounting principles requires estimates/assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

IMPAIRMENT OF ASSETS:

Impairment Loss in the value of assets, as specified in Accounting Standard - 28 is recognised whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.

 
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