Home  »  Company  »  DLF Ltd.  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of DLF Ltd. Company

Mar 31, 2015

A) Basis of accounting

The financial statements have been prepared in compliance with the accounting standards as specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). The financial statements have been prepared on going concern basis under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India. The accounting policies have been consistently applied by the Company.

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance 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 the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the fi nancial statements and the results of operations during the reporting periods. Although these estimates are based upon management's knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c) Intangible assets and amortisation

i) Softwares which are not integral part of the hardware are classifi ed as intangibles and are stated at cost less accumulated amortisation. These are being amortised over the estimated useful life of 5 years.

ii) The Company has acquired exclusive usage rights for 30 years under the build, own, operate and transfer scheme of the public private partnership ('PPP') scheme in respect of properties developed as automated multi-level car parking and commercial space and classified them under the "Intangible Assets - Right on Building and Right on Plant & Machinery".

The Company has arrived at the cost of such intangible assets in accordance with provisions of relevant Accounting Standards. The cost of these rights is being amortised over the concession period in the proportion in which the actual revenue received during the accounting year bears to the projected revenue from such intangible assets till the end of concession period in accordance with the manner prescribed in Schedule II to the Companies Act, 2013.

d) Fixed assets and depreciation

i) Fixed assets (gross block) are stated at historical cost less accumulated depreciation and impairment (if any). Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Building/specific identifiable portions of building, including related equipments are capitalised when the construction is substantially complete or upon receipt of the occupancy certificate, whichever is earlier. Depreciation on assets (including buildings and related equipments rented out and included under current assets as inventories) is provided on straight- line method, computed on the basis of useful life prescribed in Schedule II to the Companies Act, 2013, on a pro-rata basis from the date the asset is ready to put to use subject to adjustments arising out of transitional provisions of Schedule II to the Companies Act, 2013.

ii) Capital work-in-progress (including intangible assets under development) represents expenditure incurred in respect of capital projects/intangible assets under development and are carried at cost. Cost includes land, related acquisition expenses, development/ construction costs, borrowing costs and other direct expenditure.

iii) Leasehold land, under perpetual lease, is not amortised. Leasehold land, other than on perpetual lease, are being amortised on time proportion basis over their respective lease periods.

e) Investments

Investments are classified as non-current or current, based on management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Trade investments are the investments made for or to enhance the Company's business interests.

Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.

Profit/loss on sale of investments is computed with reference to the average cost of the investment.

f) Inventories

Inventories are valued as under:

i) Land and plots other than area transferred to construction work-in- progress of constructed properties at the commencement of construction are valued at lower of cost/approximate average cost/as revalued on conversion to stock and net realisable value. Cost includes land (including development rights and land under agreements to purchase) acquisition cost, borrowing cost, estimated internal development costs and external development charges.

ii) Construction work-in-progress of constructed properties other than Special Economic Zone (SEZ) projects includes the cost of land (including development rights and land under agreements to purchase), internal development costs, external development charges, construction costs, overheads, borrowing cost, development/ construction materials and is valued at lower of cost/ estimated cost and net realisable value.

iii) In case of SEZ projects, construction work-in-progress of constructed properties include internal development costs, external development charges, construction costs, overheads, borrowing cost, development/construction materials and is valued at lower of cost/esti mated cost and net realisable value.

iv) Development rights represents amount paid under agreement to purchase land/ development rights and borrowing cost incurred by the Company to acquire irrevocable and exclusive licenses/ development rights in identifi ed land and constructed properties, the acquisition of which is at an advanced stage.

v) Construction/development material is valued at lower of cost and net realisable value.

vi) Rented buildings and related equipments are valued at lower of cost (less accumulated depreciation) and net realisable value.

g) Revenue recognition

i) Revenue from constructed properties for all projects commenced on or before March 31, 2012 and where revenue recognition commenced on or before the above date, is recognised in accordance with the provisions of Accounting Standard (AS) 9 on Revenue Recognition, read with Guidance Note on "Recognition of Revenue by Real Estate Developers". Revenue is computed based on the "percentage of completion method" and on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 per cent or more of the total estimated project cost.

Revenue from constructed properties for all projects commenced on or after April 1, 2012 or project where the revenue is recognised for the first time on or after the above date, is recognised in accordance with the Revised Guidance Note issued by Institute of Chartered Accountants of India ("ICAI") on "Accounting for Real Estate Transactions (Revised 2012)".

As per this Guidance Note, the revenue have been recognised on percentage of completion method and on the percentage of actual project costs incurred thereon to total estimated project cost, provided all of the following conditions are met at the reporting date:

- required critical approvals for commencement of the project have been obtained;

- atleast 25% of estimated construction and development costs (excluding land cost) has been incurred;

- atleast 25% of the saleable project area is secured by the Agreements to sell/ application forms (containing salient terms of the agreement to sell); and

- atleast 10% of the total revenue as per agreement to sell are realized in respect of these agreements.

(a) For projects, other than SEZ projects, revenue is recognised in accordance with the term of duly executed, agreements to sell/ application forms (containing salient terms of agreement to sell). Estimated project cost includes cost of land/ development rights, borrowing costs, overheads, estimated construction and development cost of such properties. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognised in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognised immediately.

(b) For SEZ projects, revenue from development charges is recognised in accordance with the terms of the co- developer agreements/memorandum of understanding ('MOU'), read with addendum, if any. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project. Revenue from lease of land pertaining to such projects is recognised in accordance with the terms of the co-developer agreements/ MOU on accrual basis.

ii) Sale of land and plots (including development rights) is recognised in the fi nancial year in which the agreement to sell/ application forms (containing salient terms of agreement to sell) is executed and there exists no uncertainty in the ultimate collection of consideration from buyers. Where the Company has any remaining substantial obligations as per the agreements, revenue is recognised on the percentage of completion method of accounting, as per (i)(a) above.

iii) Sale of development rights is recognised in the financial year in which the agreements of sale are executed and there exists no uncertainty in the ultimate collection of consideration from buyers.

iv) Revenue from wind power generation is recognised on the basis of actual power sold (net of reactive energy consumed), as per the terms of the power purchase agreements entered into with the respective purchasers.

v) Income from interest is accounted for on time proportion basis taking into account the amount outstanding and the applicable rate of interest.

vi) Dividend income is recognised when the right to receive is established by the reporting date.

vii) Share of profit/ loss from firms in which the Company is a partner is accounted for in the financial year ending on (or immediately before) the date of the balance sheet.

viii) Rental income is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

ix) Service receipts, income from forfeiture of properties and interest from customers under agreement to sell is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

x) Sale of Certified Emission Reductions (CERs) and Voluntary Emission Reductions (VERs) is recognised as income on the delivery of the CERs/VERs to the customer's account and receipt of payment.

h) Unbilled receivables

Unbilled receivables disclosed under note 17 - 'Other Current Assets' represents revenue recognised based on percentage of completion method (as per para no. g (i) and g(ii) above), over and above the amount due as per the payment plans agreed with the customers.

i) Cost of revenue

i) Cost of constructed properties other than SEZ projects, includes cost of land (including cost of development rights/land under agreements to purchase), estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the revenue recognised as per accounting policy no. - g (i)(a) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

For SEZ projects, cost of constructed properties includes estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profi t and loss based on the revenue recognised as per accounting policy no. - g (i)(b) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

ii) Cost of land and plots includes land (including development rights) acquisition cost, estimated internal development costs and external development charges, which is charged to the statement of profit and loss based on the percentage of land/ plotted area in respect of which revenue is recognised as per accounting policy no. g(ii) above to the saleable total land/ plotted area of the scheme, in consonance with the concept of matching cost and revenue. Final adjustment is made upon completion of the specific project.

iii) Cost of development rights is recognised at the rate at which the same have been purchased from the Land Owning Companies (LOCs) as per the agreement.

j) Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised as part of the cost of such assets, in accordance with notified Accounting Standard 16 'Borrowing Costs'. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary, interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

k) Taxation

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

l) Foreign currency transactions

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate. Income and expenditure of the overseas liaison office is translated at the yearly average rate of exchange. The exchange differences arising on such conversion and on settlement of the transactions are recognised in the statement of profit and loss.

In terms of the clarification provided by Ministry of Corporate Affairs ('MCA') vide a notifi cation no. G.S.R.913(E) on Accounting Standard - 11 'The Effects of Changes in Foreign Exchange Rates', the exchange gain/loss on long-term foreign currency monetary items is adjusted in the cost of depreciable capital assets/accumulated in 'Foreign Currency Monetary Item Translation Difference Account' (FCMITDA) and amortised over the balance period of long-term monetary items. The other exchange gains/losses have been recognised in the statement of profit and loss.

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense for the year.

m) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notifi ed Accounting Standard 15 - Employee Benefits.

i) Provident fund

The Company makes contribution to statutory provident fund in accordance with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS-15, issued by the Accounting Standards Board of the ICAI, the provident fund trust set-up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. Accordingly, the contribution paid or payable and the interest shortfall, if any is recognised as an expense in the period in which services are rendered by the employee.

ii) Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profi t and loss in the year in which such gains or losses are determined.

iii) Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profi t and loss in the year in which such gains or losses are determined.

iv) Employee Shadow Option Scheme (Cash Settled Options)

Accounting value of Cash Settled Options granted to employees under the "Employee Shadow Option Scheme" is determined on the basis of intrinsic value representing the excess of the average market price, during the month before the reporting date, over the exercise price of the shadow option. The same is charged as employee benefits over the vesting period, in accordance with Guidance Note 18 "Accounting for Employee Share-based Payments", issued by the ICAI.

v) Other short-term benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee. Contribution made towards Superannuation Fund (funded by payments to Life Insurance Corporation of India (LIC)) is charged to the statement of profit and loss on accrual basis.

n) Leases

Assets subject to operating leases are included under fixed assets or current assets as appropriate. Rent (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.

o) Employee Stock Option Plan (ESOP)

Accounting value of stock options is determined on the basis of 'intrinsic value' representing the excess of the market price on the date of grant over the exercise price of the options granted under the 'Employee Stock Option Scheme' of the Company and is being amortised as 'Deferred employee compensation' on a straight-line basis over the vesting period in accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Guidance Note 18 'Share Based Payments' issued by the ICAI.

p) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

q) Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, demand deposits with banks/ corporations and short-term highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of change in value.

r) Contingent liabilities and provisions

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect of statutory dues disputed and contested by the Company, contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made.Possible future or present obligations that may but will probably not require outfi ow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the financial statements.

s) Earnings per equity share

Basic earnings per share is 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. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profi t 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 dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.


Mar 31, 2014

A) Basis of accounting

The financial statements have been prepared to comply with the Accounting Standards referred to in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of Section 642 and relevant provisions of the Companies Act, 1956 (the Act'') read with the General Circular 15/ 2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. The financial statements have been prepared on a going concern basis under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles in India. The accounting policies have been consistently applied by the Company.

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c) Intangible assets and amortisation

i) Softwares which are not integral part of the hardware are classified as intangibles and are stated at cost less accumulated amortisation. These are being amortised over the estimated useful life of 5 years, as determined by the management.

ii) The Company has acquired exclusive usage rights for 30 years under the build,

own, operate and transfer scheme of the public private partnership (''PPP'') scheme in respect of properties developed as automated multi-level car parking and commercial space and classified them under the "Intangible Assets-Right on Building and Right on Plant & Machinery". The Company has arrived at the cost of such intangible assets in accordance with provisions of relevant Accounting Standards. The cost of these rights is being amortised over the concession period in the proportion in which the actual revenue received during the accounting year bears to the projected revenue from such intangibles till the end of concession period in accordance with the notification no. G.S.R. 298 (E) dated April 17, 2012 as notified by Ministry of Corporate Affairs ("MCA") on the Intangible Assets of Schedule XIV of the Companies Act, 1956.

d) Fixed assets and depreciation

i) Fixed assets (gross block) are stated at historical cost less accumulated depreciation and impairment (if any). Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Building/specific identifiable portions of building, including related equipments are capitalised when the construction is substantially complete or upon receipt of the occupancy certificate, whichever is earlier.

Depreciation on assets (including buildings and related equipments rented out and included under current assets as inventories) is provided on straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Capital work-in-progress (including intangible assets under development) represents expenditure incurred in respect of capital projects/intangible assets under development and are carried at cost. Cost includes land, related acquisition expenses, development/ construction costs, borrowing costs and other direct expenditure.

iii) Leasehold land, under perpetual lease, is not amortised. Leasehold lands, other than on perpetual lease, are being amortised on time proportion basis over their respective lease periods.

e) Investments

Investments are classified as non-current or current, based on management''s intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Trade investments are the investments made for or to enhance the Company''s business interests.

Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.

Profit/loss on sale of investments is computed with reference to the average cost of the investment.

f) Inventories

Inventories are valued as under:

i) Land and plots other than area transferred to constructed properties at the commencement of construction are valued at lower of cost/approximate average cost/ as revalued on conversion to stock and net realisable value. Cost includes land (including development rights and land under agreements to purchase) acquisition cost, borrowing cost, estimated internal development costs and external development charges.

ii) Constructed properties other than Special Economic Zone (SEZ) projects includes the cost of land (including development rights and land under agreements to purchase), internal development costs, external development charges, construction costs, overheads, borrowing cost, development/ construction materials and is valued at lower of cost/ estimated cost and net realisable value.

iii) In case of SEZ projects, constructed properties include internal development costs, external development charges, construction costs, overheads, borrowing cost, development/construction materials, and is valued at lower of cost/estimated cost, and net realisable value.

iv) Development rights represents amount paid under agreement to purchase land/ development rights and borrowing cost incurred by the Company to acquire irrevocable and exclusive licenses/ development rights in identified land and constructed properties, the acquisition of which is at an advanced stage.

v) Construction/development material is valued at lower of cost and net realisable value.

vi) Rented buildings and related equipments are valued at lower of cost (less accumulated depreciation) and net realisable value.

g) Revenue recognition

i) Revenue from constructed properties for all projects commenced on or before March 31, 2012 and where revenue recognition commenced on or before the above date, is recognized in accordance with the provisions of Accounting Standard (AS) 9 on Revenue Recognition, read with Guidance Note on "Recognition of Revenue by Real Estate Developers". Revenue is computed based on the "percentage of completion method" and on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 percent or more of the total estimated project cost. Revenue from constructed properties for all projects commenced on or after April 1, 2012 or project where the revenue is recognized for the first time on or after the above date, is recognized in accordance with the Revised Guidance Note issued by the Institute of Chartered Accountants of India ("ICAI") on "Accounting for Real Estate Transactions (Revised 2012)."

As per this Guidance Note, the revenue have been recognized on percentage of completion method provided all of the following conditions are met at the reporting date.

- required critical approvals for commencement of the project have been obtained,

- atleast 25% of estimated construction and development costs (excluding land cost) has been incurred,

- atleast 25% of the saleable project area is secured by the Agreements to sell/application forms (containing salient terms of the agreement to sell); and

- atleast 10% of the total revenue as per agreement to sell are realized in respect of these agreements.

(a) For projects, other than SEZ projects, revenue is recognised in accordance with the term of duly executed, agreements to sell/application forms (containing salient terms of agreement to sell). Estimated project cost includes cost of land/ development rights, borrowing costs, overheads, estimated construction and development cost of such properties. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognised in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognised immediately.

(b) For SEZ projects , revenue from development charges is recognised in accordance with the terms of the co- developer agreements/Memorandum of Understanding (''MOU''), read with addendum, if any. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project. Revenue from lease of land pertaining to such projects is recognised in accordance with the terms of the co-developer agreements/MOU on accrual basis.

ii) Sale of land and plots (including development rights) is recognized in the financial year in which the agreement to sell/ application forms (containing salient terms of agreement to sell) is executed and there exists no uncertainty in the ultimate collection of consideration from buyers. Where the Company has any remaining substantial obligations as per the agreements, revenue is recognised on the percentage of completion method of accounting, as per (i) (a) above.

iii) Sale of development rights is recognized in the financial year in which the agreements of sale are executed and there exists no uncertainty in the ultimate collection of consideration from buyers.

iv) Revenue from wind power generation is recognised on the basis of actual power sold (net of reactive energy consumed), as per the terms of the power purchase agreements entered into with the respective purchasers.

v) Income from interest is accounted for on time proportion basis taking into account the amount outstanding and the applicable rate of interest.

vi) Dividend income is recognised when the right to receive is established by the reporting date.

vii) Share of profit/ loss from firms in which the Company is a partner is accounted for in the financial year ending on (or immediately before) the date of the balance sheet.

viii) Rent, service receipts, income from forfeiture of properties and interest from customers under agreement to sell is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

ix) Sale of Certified Emission Reductions (CERs) and Voluntary Emission Reductions (VERs) is recognised as income on the delivery of the CERs/VERs to the customer''s account and receipt of payment.

h) Unbilled receivables

Unbilled receivables disclosed under Note No.

19 - "Other Current Assets" represents revenue recognised based on percentage of completion method (as per para no. g(i) and g(ii) above), over and above the amount due as per the payment plans agreed with the customers.

i) Cost of revenue

i) Cost of constructed properties other than SEZ projects, includes cost of land (including cost of development rights/ land under agreements to purchase), estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/construction materials, which is charged to the statement of profit and loss based on the revenue recognised as per accounting policy no. - g(i)(a) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

For SEZ projects, cost of constructed properties includes estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the revenue recognised as per accounting policy no.- g(i)(b) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

ii) Cost of land and plots includes land (including development rights) acquisition cost, estimated internal development costs and external development charges, which is charged to the statement of profit and loss based on the percentage of land/plotted area in respect of which revenue is recognised as per accounting policy no. - g(ii) above to the saleable total land/ plotted area of the scheme, in consonance with the concept of matching cost and revenue. Final adjustment is made upon completion of the specific project.

iii) Cost of development rights is measured at the rate at which the same have been purchased from the Land Owning Companies (LOCs) as per the agreement.

j) Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised as part of the cost of such assets, in accordance with notified Accounting Standard 16 "Borrowing Costs". A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary, interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

k) Taxation

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period, and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

l) Foreign currency transactions

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate. Income and expenditure of the overseas liaison office is translated at the yearly average rate of exchange. The exchange differences arising on such conversion and on settlement of the transactions are recognised in the statement of profit and loss.

In terms of the clarification provided by Ministry of Corporate Affairs ("MCA") vide a notification no. G.S.R.913(E) on AS-11 "Changes in

Foreign Exchange Rates", the exchange gain/ loss on long-term foreign currency monetary items is adjusted in the cost of depreciable capital assets/accumulated in ''Foreign Currency Monetary Item Translation Difference Account '' (FCMITDA) and amortised over the balance period of long- term monetary items. The other exchange gains/ losses have been recognised in the statement of profit and loss.

The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognised as income or as expense for the year.

m) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notified Accounting Standard 15 - Employee Benefits.

(i) Provident fund

The Company makes contribution to statutory provident fund in accordance with the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS-15, issued by the Accounting Standards Board of the ICAI, the provident fund trust set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. Accordingly, the contribution paid or payable and the interest shortfall, if any is recognised as an expense in the period in which services are rendered by the employee.

(ii) Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.

(iii) Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.

(iv) Employee Shadow Option Scheme (Cash Settled Options)

Accounting value of Cash Settled Options granted to employees under the "Employee Shadow Option Scheme" is determined on the basis of intrinsic value representing the excess of the average market price, during the month before the reporting date, over the exercise price of the shadow option. The same is charged as employee benefits over the vesting period, in accordance with Guidance Note 18 "Share Based Payments", issued by the ICAI.

(v) Other short-term benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

Contribution made towards

Superannuation Fund (funded by payments to Life Insurance Corporation of India (LIC)) is charged to the statement of profit and loss on accrual basis.

n) Leases

Assets subject to operating leases are included under fixed assets or current assets as appropriate. Rent (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.

o) Employee Stock Option Plan (ESOP)

Accounting value of stock options is determined on the basis of "intrinsic value" representing the excess of the market price on the date of grant over the exercise price of the options granted under the "Employee Stock Option Scheme" of the Company, and is being amortised as "Deferred employee compensation" on a straight-line basis over the vesting period in accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Guidance Note 18 "Share Based Payments" issued by the ICAI.

p) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

q) Contingent liabilities and provisions

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect of statutory dues disputed and contested by the Company, contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made. Possible future or present obligations that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the Financial Statements.

r) Earnings per share

Basic earnings per share is 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. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares).

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 dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.

2. SHARE CAPITAL

b) Rights/preferences/restrictions attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except interim dividend. 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, if any. The distribution will be in proportion to the number of equity shares held by the shareholders.During the year ended March 31, 2014, the amount of proposed final dividend recognized as distributions to equity shareholders is Rs. 2 per share (March 31, 2013 : Rs. 2 per share).

d) Aggregate number of shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the date March 31, 2014

i) Shares bought back during the financial year 2009-10 to 2013-14

15,000 (during FY 2008-09 to 2012-13: 7,638,567) equity shares of Rs. 2 each bought back pursuant to Section 77A of the Companies Act, 1956. ii) Shares issued under Employee Stock Option Plan (ESOP) during the financial year 2009-10 to 2013-14

The Company has issued total 3,282,457 equity shares of Rs. 2 each (during FY 2008-09 to 2012-13: 1,568,644 equity shares) during the period of five years immediately preceding March 31, 2014 on exercise of options granted under the Employee Stock Option Plan (ESOP).

e) Shares reserved for issue under options

For details of shares reserved for issue under the Employee Stock Option Plan (ESOP) of the Company, refer note 38.

1 Repayment terms (excluding current maturities) and security for the outstanding long-term borrowings as on March 31, 2014:

Listed, Secured, Redeemable, Non-convertible Debentures of Rs. 50,000,000 each referred above to the extent of:

(i) Rs. 75,000 lac are secured by way of pari passu charge on the immovable property situated at New Delhi, owned by the subsidiary company. Coupon rate of these debentures is 12.50% and repayment in 4 equal annual installments starting from April 30, 2015 and date of final redemption is April 30, 2018.

From banks:

Secured INR borrowings

(a) Facility ofRs. 20,833.33 lac, balance amount is repayable in 10 equal quarterly installments starting from May, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(b) Facility of Rs. 25,246.62 lac, balance amount is repayable in 84 equated monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at New Delhi, owned by the Company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the Company.

(iii) Exclusive charge on immovable property situated at Gurgaon, owned by the subsidiary company.

(iv) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(c) Facility ofRs. 8,330.00 lac, balance amount is repayable in 25 equal monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the Company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(d) Facility of Rs. 6,171.43 lac, balance amount is repayable in 72 equal monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by the Company/ subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the Company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(e) Facility of Rs. 18,055.56 lac, balance amount is repayable in 26 equal monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by the subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the subsidiary company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(f) Facility of Rs. 6,250.00 lac, balance amount is repayable in 15 equal monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by the subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by the subsidiary company.

(iii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(g) Facility of Rs. 81,998.11 lac, balance amount is repayable in 72 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon and New Delhi, owned by subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary companies.

(iii) Corporate guarantees provided by subsidiary companies owning the aforesaid immovable properties.

(h) Facility of Rs. 27,542.50 lac, balance amount is repayable in 24 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.

(i) Facility of Rs. 4,000.00 lac, balance amount is repayable in October, 2015.

(j) Facility of Rs. 2,999.99 lac, balance amount is repayable in October, 2015.

The aforesaid term loans are secured by way of

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by a subsidiary company.

(ii) Negative lien over immovable properties and assignment of lease rentals in respect of certain immovable properties situated at New Delhi and Gurgaon owned by the Company.

(iii) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable properties.

(k) Facility of Rs. 900.00 lac, balance amount is repayable in October, 2015.

(l) Facility of Rs. 1,100.00 lac, balance amount is repayable in December, 2015.

The aforesaid term loans are secured by way of

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by a subsidiary company.

(ii) Negative lien over immovable properties and assignment of lease rentals in respect of certain immovable properties situated at New Delhi and Gurgaon owned by the Company.

(m) Facility of Rs. 748.57 lac, balance amount is repayable in 2 equal quarterly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

(ii) Corporate guarantees provided by the subsidiary company owning the aforesaid immovable property.

(n) Facility of Rs. 29,743.65 lac, balance amount is repayable in 33 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary company.

(o) Facility of Rs. 27,624.37 lac, balance amount is repayable in 36 monthly installments starting from January, 2016. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

From others

Secured INR borrowings

(a) Facility of Rs. 15,000.00 lac, balance amount is repayable in 3 equal annual installments starting from August, 2016. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, Hyderabad and Chennai, owned by Company/subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurgaon owned by the Company.

(b) Facility of Rs. 29,000.00 lac, balance amount is repayable in 18 quarterly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable properties.

(c) Facility of Rs. 4,375.00 lac, balance amount is repayable in 7 equal monthly installments starting from April, 2015. The loan is secured by way of :

Equitable mortgage of immovable properties situated at Gurgaon owned by a subsidiary company.

(d) Facility of Rs. 29,788.00 lac, balance amount is repayable in 26 equal monthly installments starting from April, 2015. The loan is secured by way of :

Equitable mortgage of immovable properties situated at Gurgaon owned by a subsidiary company.

(e) Facility of Rs. 34,441.75 lac, balance amount is repayable in 76 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.

(f) Facility of Rs. 55,466.18 lac, balance amount is repayable in 33 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by subsidiary company.

(g) Facility of Rs. 88,000.00 lac, balance amount is repayable in 41 installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, Hyderabad and Chennai, owned by Company/subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurgaon owned by the Company.

(h) Facility of Rs. 42,300.00 lac, balance amount is repayable in 45 installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, Hyderabad and Chennai, owned by Company/subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable property at Gurgaon owned by the Company.

(i) Facility of Rs. 3,000.00 lac, balance amount is repayable in October, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable properties situated at Gurgaon, owned by a subsidiary company.

(ii) Negative lien over immovable properties and assignment of lease rentals in respect of certain immovable properties situated at New Delhi and Gurgaon owned by the Company.

(j) Facility of Rs. 428.57 lac, balance amount is repayable in 3 equal monthly installments starting from April, 2015. The loan is secured by way of :

First and exclusive charge by way of hypothecation on assets viz Helicopter and Aircraft owned by the Company.

(k) Facility of Rs. 142.73 lac, balance amount is repayable in 2 equal monthly installments starting from April, 2015. The loan is secured by way of :

First and exclusive charge by way of hypothecation on assets viz Helicopter owned by the Company.

(l) Facility of Rs. 18,707.55 lac, balance amount is repayable in 97 monthly installments starting from April, 2015.

(m) Facility of Rs. 8,764.72 lac, balance amount is repayable in 108 monthly installments starting from April, 2015.

(n) Facility of Rs. 5,608.97 lac, balance amount is repayable in 104 monthly installments starting from April, 2015.

(o) Facility of Rs. 4,300.21 lac, balance amount is repayable in 104 monthly installments starting from April, 2015.

(p) Facility of Rs. 3,015.82 lac, balance amount is repayable in 108 monthly installments starting from April, 2015.

(q) Facility of Rs. 2,991.45 lac, balance amount is repayable in 104 monthly installments starting from April, 2015.

(r) Facility of Rs. 1,071.79 lac, balance amount is repayable in 104 monthly installments starting from April, 2015.

The aforesaid term loans are secured by way of

(i) Equitable mortgage of immovable properties situated at New Delhi and Gurgaon, owned by subsidiary/group companies.

(ii) Negative lien on rights under the concession agreements pertaining to certain immovable properties situated at New Delhi.

(iii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies/ group companies.

(iv) Corporate guarantees provided by the subsidiary/ group companies owning the aforesaid immovable properties.

(s) Facility of Rs. 22,152.78 lac, balance amount is repayable in 29 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by the Company.

(ii) Charge on receivables and other current assets of the aforesaid immovable property owned by the Company.

(t) Facility of Rs. 5,925.76 lac, balance amount is repayable in 24 monthly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at Gurgaon, owned by subsidiary company.

(ii) Charge on receivables pertaining to the aforesaid immovable property owned by subsidiary company.

(u) Facility of Rs. 2,821.43 lac, balance amount is repayable in 2 equal quarterly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

(v) Facility of Rs. 1,430.00 lac, balance amount is repayable in 2 quarterly installments starting from April, 2015. The loan is secured by way of :

(i) Equitable mortgage of immovable property situated at New Delhi, owned by subsidiary company.

(ii) Corporate guarantee provided by the subsidiary company owning the aforesaid immovable property.

2 Rate of interest - The Company''s borrowings from banks and others have a effective weighted average rate of interest of 12.08 % p.a. (previous year 12.40% p.a.) calculated using the interest rates effective as on March 31, 2014 for the respective borrowings.

3. SHORT-TERM BORROWINGS

Security for the short-term borrowings:

(i) Equitable mortgage of immovable properties situated at New Delhi, Goa and Gurgaon, owned by the Company/subsidiary companies.

(ii) Charge on receivables pertaining to the aforesaid immovable properties owned by the Company/ subsidiary companies.

(iii) Corporate guarantees provided by the subsidiary companies owning the aforesaid immovable properties.


Mar 31, 2013

A) Basis of accounting

The Financial Statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956 (the "Act").

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management''s knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c) Intangible assets and amortisation

i) Softwares which are not integral part of the hardware are classified as intangibles and are stated at cost less accumulated amortisation. These are being amortised over the estimated useful life of 5 years, as determined by the management.

ii) The Company has acquired exclusive usage rights for 30 years under the build, own, operate and transfer scheme of the public private partnership (''PPP'') scheme in respect of properties developed as automated multi-level car parking and commercial space and classified them under the "Intangible Assets - Right on Building and Right on Plant & Machinery". The Company has arrived at the cost of such intangible assets in accordance with provisions of relevant Accounting Standards. The cost of these rights is being amortised over the concession period in the proportion in which the actual revenue received during the accounting year bears to the Projected Revenue from such Intangibles till the end of concession period in accordance with the notification no. G.S.R. 298 (E) dated April 17, 2012 as notified in Ministry of Corporate Affairs ("MCA") on the Intangible Assets of Schedule XIV of the Companies Act, 1956.

d) Fixed assets and depreciation

i) Fixed assets (gross block) are stated at historical cost less accumulated depreciation and impairment (if any). Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Building / specific identifiable portions of building, including related equipments are capitalised when the construction is substantially complete or upon receipt of the occupancy certificate, whichever is earlier.

Depreciation on assets (including buildings and related equipment''s rented out and included under current assets as invetories) is provided on straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii) Capital work-in-progress (including intangible assets under development) represents expenditure incurred in respect of capital projects / intangible assets under development and are carried at cost. Cost includes land, related acquisition expenses, development / construction costs, borrowing costs and other direct expenditure.

iii) Leasehold land, under perpetual lease, is not amortised. Leasehold lands, other than on perpetual lease, are being amortised on time proportion basis over their respective lease periods.

e) Investments

Investments are classified as non-current or current, based on management''s intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Trade investments are the investments made for or to enhance the Company''s business interests.

Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.

Profit/loss on sale of investments is computed with reference to the average cost of the investment.

f) Inventories

Inventories are valued as under:

i) Land and plots other than area transferred to constructed properties at the commencement of construction are valued at lower of cost/ approximate average cost/ as revalued on conversion to stock and net realisable value. Cost includes land (including development rights and land under agreements to purchase) acquisition cost, borrowing cost, estimated internal development costs and external development charges.

ii) Constructed properties other than Special Economic Zone (SEZ) projects includes the cost of land (including development rights and land under agreements to purchase), internal development costs, external development charges, construction costs, overheads, borrowing cost, development/ construction materials and is valued at lower of cost/ estimated cost and net realisable value.

iii) In case of SEZ projects, constructed properties include internal development costs, external development charges, construction costs, overheads, borrowing cost, development/ construction materials, and is valued at lower of cost/ estimated cost and net realisable value.

iv) Development rights represents amount paid under agreement to purchase land/ development rights and borrowing cost incurred by the Company to acquire irrevocable and exclusive licenses/ development rights in identified land and constructed properties, the acquisition of which is at an advanced stage.

v) Construction/ development material is valued at lower of cost and net realisable value.

vi) Rented buildings and related equipments are valued at lower of cost (less accumulated depreciation) and net realisable value.

g) Revenue recognition

i) Revenue from constructed properties is recognized in accordance with the provisions of Accounting Standard (AS) 9 on Revenue Recognition, read with Guidance Note on "Recognition of Revenue by Real Estate Developers". Revenue is computed based on the "percentage of completion method" and on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 per cent or more of the total estimated project cost .

(a) For projects, other than SEZ projects, Revenue is recognised in accordance with the term of duly executed, agreements to sell / application forms (containing salient terms of agreement to sell). Estimated project cost includes cost of land/ development rights, borrowing costs, overheads, estimated construction and development cost of such properties. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognised in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognised immediately.

(b) For SEZ projects, Revenue from development charges is recognised in accordance with the terms of the Co- developer Agreements / Memorandum of Understanding (''MOU''), read with addendum, if any. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project. Revenue from Lease of land pertaining to such projects is recognised in accordance with the terms of the Co-developer Agreements/ MOU on accrual basis.

With effect from April 1, 2012 in accordance with the Revised Guidance Note issued by Institute of Chartered Accountants of India ("ICAI") on "Accounting for Real Estate Transactions (Revised 2012)", the Company revised its Accounting Policy of revenue recognition for all projects commencing on or after April 1, 2012 or project where the revenue is recognized for the first time on or after the above date. As per this Guidance Note, the revenue have been recognized on percentage of completion method provided all of the following conditions are met at the reporting date.

- atleast 25% of estimated construction and development costs (excluding land cost) has been incurred;

- atleast 25% of the saleable project area is secured by the Agreements to sell/ application forms (containing salient terms of the agreement to sell); and

- atleast 10% of the total revenue as per agreement to sell are realized in respect of these agreements.

ii) Sale of land and plots (including development rights) is recognised in the financial year in which the agreement to sell/ application forms (containing salient terms of agreement to sell) is executed. Where the Company has any remaining substantial obligations as per the agreements, revenue is recognised on the percentage of completion method of accounting, as per (i) (a) above.

iii) Sale of development rights is recognized in the financial year in which the agreements of sale are executed and there is no uncertainty in the ultimate collections.

iv) Revenue from wind power generation is recognised on the basis of actual power sold (net of reactive energy consumed), as per the terms of the power purchase agreements entered into with the respective purchasers.

v) Income from interest is accounted for on time proportion basis taking into account the amount outstanding and the applicable rate of interest.

vi) Dividend income is recognised when the right to receive is established by the reporting date.

vii) Share of profit/ loss from firms in which the Company is a partner is accounted for in the financial year ending on (or immediately before) the date of the balance sheet.

viii) Rent, service receipts and interest from customers under agreement to sell is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

ix) Sale of Certified Emission Reductions (CERs) and Voluntary Emission Reductions (VERs) is recognised as income on the delivery of the CERs/VERs to the customer''s account and receipt of payment.

h) Unbilled receivables

Unbilled receivables disclosed under Note No. 19 - "Other Current Assets" represents revenue recognised based on Percentage of Completion Method (as per para no. g (i) and g(ii) above), over and above the amount due as per the payment plans agreed with the customers.

i) Cost of revenue

i) Cost of constructed properties other than SEZ projects, includes cost of land (including cost of development rights/ land under agreements to purchase), estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognised as per accounting policy no. g (i)(a) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

For SEZ projects, cost of constructed properties includes estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognised as per accounting policy no. g (i)(b) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

ii) Cost of land and plots includes land (including development rights) acquisition cost, estimated internal development costs and external development charges, which is charged to statement of profit and loss based on the percentage of land/ plotted area in respect of which revenue is recognised as per accounting policy no. g (ii) above to the saleable total land/ plotted area of the scheme, in consonance with the concept of matching cost and revenue. Final adjustment is made upon completion of the specific project.

iii) Cost of development rights is measured at the rate at which the same have been purchased from the Land Owning Companies (LOCs) as per the agreement.

j) Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised as part of the cost of such assets, in accordance with notified Accounting Standard 16 "Borrowing Costs". A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary, interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

k) Taxation

Tax expense for the year comprises current income tax and deferred tax. Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period, and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

l) Foreign currency transactions

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate. Income and expenditure of the overseas liaison office is translated at the yearly average rate of exchange.

The exchange differences arising on such conversion and on settlement of the transactions are recognised in the statement of profit and loss.

In terms of the clarification provided by Ministry of Corporate Affairs ("MCA") vide a notification no. G.S.R.913(E) on Accounting Standard - 11 "Changes in Foreign Exchange Rates", the exchange gain/loss on long term foreign currency monetary items is adjusted in the cost of depreciable capital assets. The other exchange gains/ losses have been recognised in the statement of profit and loss.

m) Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notified Accounting Standard 15 - Employee Benefits.

(i) Provident fund

The Company makes contribution to statutory provident fund in accordance with the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS - 15, issued by the Accounting Standards Board of the ICAI, the provident fund trust set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. Accordingly, the contribution paid or payable and the interest shortfall, if any is recognised as an expense in the period in which services are rendered by the employee.

(ii) Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/ obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.

(iii) Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.

(iv) Employee Shadow Option Scheme (Cash Settled Options)

Accounting value of Cash Settled Options granted to employees under the "Employee Shadow Option Scheme" is determined on the basis of intrinsic value representing the excess of the average market price, during the month before the reporting date, over the exercise price of the shadow option. The same is charged as employee benefits over the vesting period, in accordance with Guidance Note 18 "Share Based Payments", issued by the ICAI.

(v) Other short-term benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

Contribution made towards

Superannuation Fund (funded by payments to Life Insurance Corporation of India (LIC)) is charged to the statement of profit and loss on accrual basis.

n) Leases

Assets subject to operating leases are included under fixed assets or current assets as appropriate. Rent (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.

o) Employee Stock Option Plan (ESOP)

Accounting value of stock options is determined on the basis of "intrinsic value" representing the excess of the market price on the date of grant over the exercise price of the options granted under the "Employee Stock Option Scheme" of the Company, and is being amortised as "Deferred employee compensation" on a straight-line basis over the vesting period in accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Guidance Note 18 "Share Based Payments" issued by the ICAI.

p) Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

q) Contingent liabilities and provisions

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect of statutory dues disputed and contested by the Company, contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made. Possible future or present obligations that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the Financial Statements.

r) Earnings per share

Basic earnings per share is 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. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares).

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 dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.


Mar 31, 2012

A. Basis of accounting

The Financial Statements are prepared under historical cost convention, on accrual basis, in accordance with the generally accepted accounting principles in India and to comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government in exercise of the power conferred under sub-section (1)(a) of Section 642 and the relevant provisions of the Companies Act, 1956 (the "Act").

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the results of operations during the reporting periods. Although these estimates are based upon management's knowledge of current events and actions, actual results could differ from those estimates and revisions, if any, are recognised in the current and future periods.

c. Intangible assets and amortisation

i. Softwares which are not integral part of the hardware are classified as intangibles and are stated at cost less accumulated amortisation. These are being amortised over the estimated useful life of 5 years, as determined by the management.

ii. The Company has acquired exclusive usage rights for 30 years under the build, own, operate and transfer scheme of the Public Private Partnership ('PPP') Scheme in respect of properties developed as automated multi-level car parking and commercial space and classified them under the "Intangible

Assets - Right on Building and Right on Plant & Machinery". The Company has arrived at the cost of such intangible assets in accordance with provisions of relevant Accounting Standards. The cost of these rights is being amortised over the concession period in the proportion in which the actual revenue received during the accounting year bears to the Projected Revenue from such Intangibles till the end of concession period in accordance with the notification No. G.S.R. 298 (E) dated April 17, 2012 as notified in Ministry of Corporate Affairs ("MCA") on the Intangible Assets of Schedule XIV of the Companies Act, 1956.

d. Fixed assets and depreciation

i. Fixed assets (gross block) are stated at historical cost less accumulated depreciation and impairment (if any). Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Building/specific identifiable portions of building, including related equipments are capitalised when the construction is substantially complete or upon receipt of the occupancy certificate, whichever is earlier.

Depreciation on assets (including buildings and related equipment's rented out and included under current assets as inventories) is provided on straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

ii. Capital work-in-progress (including intangible assets under development) represents expenditure incurred in respect of capital projects/intangible assets under development and are carried at cost. Cost includes land, related acquisition expenses, development/ construction costs, borrowing costs and other direct expenditure.

iii. Leasehold land, under perpetual lease, is not amortised. Leasehold land, other than on perpetual lease, are being amortised on time proportion basis over their respective lease periods.

e. Investments

Investments are classified as non-current or current, based on management's intention at the time of purchase. Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Trade investments are the investments made for or to enhance the Company's business interests.

Current investments are stated at lower of cost and fair value determined on an individual investment basis. Non-current investments are stated at cost and provision for diminution in their value, other than temporary, is made in the financial statements.

Profit/loss on sale of investments is computed with reference to the average cost of the investment.

f. Inventories

Inventories are valued as under:

i) Land and plots other than area transferred to constructed properties at the commencement of construction are valued at lower of cost/ approximate average cost/ as revalued on conversion to stock and net realisable value. Cost includes land (including development rights and land under agreements to purchase) acquisition cost, borrowing cost, estimated internal development cost and external development charges.

ii. Constructed properties other than Special Economic Zone (SEZ) projects includes the cost of land (including development rights and land under agreements to purchase), internal development costs, external development charges, construction costs, overheads, borrowing cost, development/ construction materials and is valued at lower of cost/ estimated cost and net realisable value.

iii. In case of SEZ projects, constructed properties include internal development costs, external development charges, construction costs, overheads, borro- wing cost, development / construction materials, and is valued at lower of cost/ estimated cost, and net realisable value.

iv. Development rights represents amount paid under agreement to purchase land/ development rights and borrowing cost incurred by the Company to acquire irrevocable and exclusive licenses/ development rights in identified land and constructed properties, the acquisition of which is at an advanced stage.

v. Construction / development material is valued at lower of cost and net realisable value.

vi. Rented buildings and related equipments are valued at lower of cost (less accumulated depreciation) and net realisable value.

g. Revenue recognition

i. Revenue from constructed properties:

(a) Revenue from constructed properties, other than SEZ projects, is recognised on the "percentage of completion method". Total sale consideration as per the duly executed, agreements to sell/application forms (containing salient terms of agreement to sell), is recognised as revenue based on the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 per cent or more of the total estimated project cost. Estimated project cost includes cost of land/ development rights, borrowing costs, overheads, estimated construction and development cost of such properties. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognised in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognised immediately.

(b) For SEZ projects, revenue from development charges is recognised on the percentage of completion method in accordance with the terms of the Co-developer Agreements/ Memorandum of Understanding ('MOU'), read with addendum, if any. The total development charges is recognised as Revenue on the percentage of actual project cost incurred thereon to total estimated project cost, subject to such actual cost incurred being 30 percent or more of the total estimated project cost. The estimated project cost includes construction cost, development and construction material, internal development cost, external development charges, borrowing cost and overheads of such project. Revenue from Lease of land pertaining to such projects is recognised in accordance with the terms of the Co-developer Agreements / MOU on accrual basis.

ii. Sale of land and plots (including development rights) is recognised in the financial year in which the agreement to sell/ application forms (containing salient terms of agreement to sell) is executed. Where the Company has any remaining substantial obligations as per the agreements, revenue is recognised on the percentage of completion method of accounting, as per (i)(a) above.

iii. Sale of development rights is recognized in the financial year in which the agreements of sale are executed and there is no uncertainty in the ultimate collections.

iv. Revenue from wind power generation is recognised on the basis of actual power sold (net of reactive energy consumed), as per the terms of the power purchase agreements entered into with the respective purchasers.

v. Income from interest is accounted for on time proportion basis taking into account the amount outstanding and the applicable rate of interest.

vi. Dividend income is recognised when the right to receive is established by the reporting date.

vii. Share of profit/ loss from firms in which the Company is a partner is accounted for in the financial year ending on (or immediately before) the date of the balance sheet.

viii. Rent, service receipts and interest from customers under agreement to sell is accounted for on accrual basis except in cases where ultimate collection is considered doubtful.

ix. Sale of Certified Emission Reductions (CERs) and Voluntary Emission Reductions (VERs) is recognised as income on the delivery of the CERs/VERs to the customer's account and receipt of payment.

h. Unbilled receivables

Unbilled receivables disclosed under Note No. 19 - "Other Current Assets" represents revenue recognised based on Percentage of completion method [as per para no. g (i) and g(ii) above], over and above the amount due as per the payment plans agreed with the customers.

i. Cost of revenue

i. Cost of constructed properties other than SEZ projects, includes cost of land (including cost of development rights/ land under agreements to purchase), estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development / construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognised as per accounting policy no. - g (i) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

For SEZ projects, cost of constructed properties includes estimated internal development costs, external development charges, borrowing costs, overheads, construction costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognised as per accounting policy no. - g (i) above, in consonance with the concept of matching costs and revenue. Final adjustment is made upon completion of the specific project.

ii. Cost of land and plots includes land (including development rights) acquisition cost, estimated internal development costs and external development charges, which is charged to statement of profit and loss based on the percentage of land/ plotted area in respect of which revenue is recognised as per accounting policy no- g

(ii) above to the saleable total land/ plotted area of the scheme, in consonance with the concept of matching cost and revenue. Final adjustment is made upon completion of the specific project.

iii. Cost of development rights is measured at the rate at which the same have been purchased from the Land Owning Companies (LOCs) as per the agreement.

j. Borrowing costs

Borrowing costs that are attributable to the acquisition and/or construction of qualifying assets are capitalised as part of the cost of such assets, in accordance with notified Accounting Standard 16 "Borrowing Costs". A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use. Capitalisation of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

k. Taxation

Tax expense for the year comprises current income tax and deferred tax Current income tax is determined in respect of taxable income with deferred tax being determined as the tax effect of timing differences representing the difference between taxable income and accounting income that originate in one period, and are capable of reversal in one or more subsequent period(s). Such deferred tax is quantified using rates and laws enacted or substantively enacted as at the end of the financial year.

l. Foreign currency transactions

Transactions in foreign currency are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate. Income and expenditure of the overseas liaison office is translated at the yearly average rate of exchange.

The exchange differences arising on such conversion and on settlement of the transactions are recognised in the statement of profit and loss.

In terms of the clarification provided by Ministry of Corporate Affairs ("MCA") vide a notification no. G.S.R.913(E) on Accounting Standard - 11 "Changes in Foreign Exchange Rates", the exchange gain/loss on long-term foreign currency monetary items is adjusted in the cost of depreciable capital assets. The other exchange gains/ losses have been recognised in the statement of profit and loss.

m. Employee benefits

Expenses and liabilities in respect of employee benefits are recorded in accordance with the notified Accounting Standard 15 - Employee Benefits.

i. Provident fund

The Company makes contribution to statutory provident fund in accordance with the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. In terms of the Guidance on implementing the revised AS - 15, issued by the Accounting Standards Board of the ICAI, the provident fund trust set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. Accordingly, the contribution paid or payable and the interest shortfall, if any is recognised as an expense in the period in which services are rendered by the employee.

ii. Gratuity

Gratuity is a post-employment benefit and is in the nature of a defined benefit plan. The liability recognised in the balance sheet in respect of gratuity is the present value of the defined benefit/obligation at the balance sheet date, together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined benefit/obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.

iii. Compensated absences

Liability in respect of compensated absences becoming due or expected to be availed within one year from the balance sheet date is recognised on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method.

Actuarial gains and losses arising from past experience and changes in actuarial assumptions are credited or charged to the statement of profit and loss in the year in which such gains or losses are determined.

iv. Employee Shadow Option Scheme (Cash Settled Options)

Accounting value of Cash Settled Options granted to employees under the "Employees Shadow Option Scheme" is determined on the basis of intrinsic value representing the excess of the average market price, during the month before the reporting date, over the exercise price of the shadow option. The same is charged as employee benefits over the vesting period, in accordance with Guidance Note No. 18 "Share Based Payments", issued by the ICAI.

v. Other short-term benefits

Expense in respect of other short-term benefits is recognised on the basis of the amount paid or payable for the period during which services are rendered by the employee.

Contribution made towards Superannuation Fund [funded by payments to Life Insurance Corporation of India (LIC)] is charged to the statement of profit and loss on accrual basis.

n. Leases

Assets subject to operating leases are included under fixed assets or current assets as appropriate. Rent (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.

o. Employees Stock Option Plan (ESOP)

Accounting value of stock options is determined on the basis of "intrinsic value" representing the excess of the market price on the date of grant over the exercise price of the options granted under the "Employees Stock Option Scheme" of the Company, and is being amortised as "Deferred employee compensation" on a straight-line basis over the vesting period in accordance with the SEBI (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 and Guidance Note No. 18 "Share Based Payments" issued by the ICAI.

p. Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

q. Contingent liabilities and provisions

Depending upon the facts of each case and after due evaluation of legal aspects, claims against the Company are accounted for as either provisions or disclosed as contingent liabilities. In respect of statutory dues disputed and contested by the Company, contingent liabilities are provided for and disclosed as per original demand without taking into account any interest or penalty that may accrue thereafter. The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of obligation can be made. Possible future or present obligations that may but will probably not require outflow of resources or where the same cannot be reliably estimated, is disclosed as contingent liability in the Financial Statements.

r. Earnings per share

Basic earnings per share is 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. The weighted average numbers of equity shares outstanding during the period are adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares).

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 ofshares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The period during which, number of dilutive potential equity shares change frequently, weighted average number of shares are computed based on a mean date in the quarter, as impact is immaterial on earnings per share.

 
Subscribe now to get personal finance updates in your inbox!