Mar 31, 2015
1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
section 133 of the Companies Act, 2013 read with rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 (The Act). The financial statements have been
prepared on accrual basis under the historical cost convention. The
accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year.
Assets and liabilities are classified as current if it is expected to
realise or settle within 12 months after balance sheet date.
2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) as of the date of the financial statements and
the reported income and expenses during the reporting period.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could
differ from these estimates.
3 Revenue Recognition
(a) Revenue from real estate projects is recognized on the Percentage
of Completion Method. Revenue is recognised in relation to the areas
sold, on the basis of percentage of actual costs incurred as against
the total estimated costs of the project under execution, subject to
such actual costs being 25 percent or more of the total estimated
costs. Land costs are not included for the purpose of computing the
percentage of completion. When it is probable that total estimated
costs will exceed total project revenues, the expected loss is
recognised as an expense immediately. The estimates of saleable area
and costs are revised periodically by the Management. The effect of
such changes in estimates is recognised in the period in which such
changes are determined.
(b) Fees are accounted as per the terms of contract with the customers.
(c) Interest on fixed deposits and loans is accounted on time
proportion basis.
(d) Dividend income is accounted when the right to receive is
established.
(e) Share of profit/loss from the partnership firms, in which the
Company is a partner, is based on the audited financial statements of
the partnership firms.
4 Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost comprises of the purchase price and any other
attributable cost of bringing the asset to its working condition for
its intended use.
5 Depreciation and amortisation
(a) Depreciation on tangible fixed assets has been provided on the
written down value method at the rates determined based on the useful
life prescribed in Schedule II to the Companies Act, 2013.
(b) Depreciation on additions to fixed assets is provided for the full
year irrespective of the date of addition. No depreciation is provided
in the year of deletions of fixed assets.
(c) Intangible assets are amortised over their estimated useful life as
follows.
Computer Software 2-5 years
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation method is revised to reflect the changed pattern.
6 Inventories
Inventories are valued at lower of cost and net realisable value.
Construction material cost is determined on a First In First Out basis.
Construction work in progress comprises premium for development rights
and balance expenditure relating to construction after ascertaining the
cost of sales which is determined based on the total area sold as at
the Balance Sheet date.
7 Investments
Long Term Investments are valued at cost unless there is a diminution
in value, other than temporary for which provision is made. Current
investments are carried individually, at the lower of cost and fair
value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
8 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
9 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
10 Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present values and are determined
based on management estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current management estimates. Contingent
liabilities are disclosed in the Notes. Contingent assets are not
recognised nor disclosed in the financial statements.
11 Taxation
Tax expense comprises current and deferred tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. Deferred tax is recognised on timing
differences, being the differences between the taxable income and the
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred tax is measured
using the tax rates and tax laws enacted or substantially enacted by
the Balance Sheet date.
Deferred tax liabilities are recognised for all timing differences.
Deferred tax assets other than on carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
Deferred tax assets on account of carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
Deferred tax assets are reviewed at each balance sheet date for their
realisability.
12 Employee benefits
(a) Short term employee benefits:
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service.
(b) Long term employee benefits:
1. Defined Contribution Plan:
The Company''s contribution to provident fund, superannuation fund and
employee state insurance scheme are considered as defined contribution
plans and are charged as an expense based on the amount of contribution
required to be made and when services are rendered by the employees.
2. Defined Benefit Plan:
i) Gratuity
For defined benefit plan in the form of gratuity, the cost of providing
benefits is determined using the Projected Unit Credit method, with
actuarial valuations being carried out at each balance sheet date.
Actuarial gains and losses are recognised in the Statement of Profit
and Loss in the period in which they occur. Past service cost is
recognised immediately to the extent that the benefits are already
vested and otherwise is amortised on a straight-line basis over the
average period until the benefits become vested. The retirement benefit
obligation recognised in the Balance Sheet represents the present value
of the defined benefit obligation as adjusted for unrecognised past
service cost, as reduced by the fair value of plan assets. Any asset
resulting from this calculation is limited to past service cost, plus
the present value of available refunds and reductions in future
contributions to the plan.
ii) Compensated absenses
Compensated absences which are not expected to occur within twelve
months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of
the defined benefit obligation as at the balance sheet date less the
fair value of the plan assets out of which the obligations are expected
to be settled.
13 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised for the period until
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes substantial period of time to get ready for its
intended use. Other borrowing costs are recognised as an expense in the
period in which they are incurred. Capitalisation of borrowing costs is
suspended and charged to the Statement of Profit and Loss during
extended periods when active development activity on the qualifying
assets is interrupted.
14 Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
15 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of
equity shares considered for deriving basic earnings per share and the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
16 Impairment of assets
The carrying values of assets / cash generating units at each balance
sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
17 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
reasonable uncertainty in availing / utilising the credits.
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements are prepared under historical cost convention,
on an accrual basis and are in accordance with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply with the
Accounting Standards notified under Section 211(3C) of the Companies
Act, 1956 ("the 1956 Act") (which continue to be applicable in
respect of Section 133 of the Companies Act, 2013 ("the 2013 Act")
in terms of General Circular 15/2013 dated 13 September, 2013 of the
Ministry of Corporate Affairs) and the relevant provisions of the 1956
Act/2013 Companies Act, as applicable. The accounting policies adopted
in the preparation of the financial statements are consistent with
those followed in the previous year. Assets and liabilities are
classified as current if it is expected to realise or settle within 12
months after balance sheet date.
2.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) as of the date of the financial statements and
the reported income and expenses during the reporting period.
Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could
differ from these estimates.
2.3 Revenue Recognition
(a) Revenue from real estate projects is recognized on the Percentage
of Completion Method. Revenue is recognised in relation to the areas
sold, on the basis of percentage of actual costs incurred as against
the total estimated cost of the project under execution, subject to
such actual costs being 25 percent or more of the total estimated cost.
Land costs are not included for the purpose of computing the percentage
of completion. The estimates of saleable area and costs are revised
periodically by the Management. The effect of such changes in estimates
is recognised in the period in which such changes are determined.
(b) Fees are accounted as per the terms of contract with the customers.
(c) Interest on fixed deposits and loans is accounted on time
proportion basis.
(d) Dividend income is accounted when the right to receive is
established.
(e) Share of profit/loss from the partnership firms, in which the
Company is a partner, is based on the audited financial statements of
the partnership firms.
2.4 Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost comprises of the purchase price and any other
attributable cost of bringing the asset to its working condition for
its intended use.
2.5 Depreciation and amortisation
(a) Depreciation on fixed assets is provided on the written down value
basis at the rates prescribed in Schedule XIV to the Companies Act,
1956.
(b) Depreciation on additions to fixed assets is provided for the full
year irrespective of the date of addition. No depreciation is provided
in the yearofdeletions offixed assets.
(c) Intangible assets are amortised over their estimated useful life as
follows.
Computer Software 2-5 years
The estimated useful life of the intangible assets and the amortisation
period are reviewed at the end of each financial year and the
amortisation method is revised to reflect the changed pattern.
2 Significant Accounting Policies (Contd.)
2.6 Inventories
Inventories are valued at lower of cost and net realisable value.
Construction material cost is determined on a First In First Out basis.
Construction work in progress comprises premium for development rights
and balance expenditure relating to construction after ascertaining the
cost of sales which is determined based on the total area sold as at
the Balance Sheet date.
2.7 Investments
Long Term Investments are valued at cost unless there is a diminution
in value, other than temporary for which provision is made. Current
investments are carried individually, at the lower of cost and fair
value. Cost of investments include acquisition charges such as
brokerage, fees and duties.
2.8 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
2.9 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.10 Provisions and contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present values and are determined
based on management estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current management estimates.Contingent
liabilities are disclosed in the Notes. Contingent assets are not
recognised nor disclosed in the financial statements.
2.11 Taxation
Tax expense comprises current and deferred tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. Deferred tax reflects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years. Deferred tax is measured based on the tax rate and tax laws
enacted or substantially enacted at the Balance Sheet date.
Deferred tax assets other than on carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
Deferred tax assets on account of carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
Deferred tax assets are reviewed at each balance sheet date for their
realisability.
2.12 Employee benefits
(a) Short term employee benefits:
The undiscounted amount of short-term employee benefits expected to be
paid in exchange for the services rendered by employees are recognised
during the year when the employees render the service. These benefits
include performance incentive and compensated absences which are
expected to occur within twelve months after the end of the period in
which the employee renders the related service.
(b) Long term employee benefits:
1. Defined Contribution Plan:
The Company''s contribution to provident fund, superannuation fund and
employee state insurance scheme are considered as defined contribution
plans and are charged as an expense based on the amount of contribution
required to be made and when services are rendered by the employees.
2.12 Employee benefits (Contd.)
(b) Long term employee benefits: (Contd.)
2. Defined Benefit Plan:
i) Gratuity
For defined benefit plans in the form of gratuity fund and
post-employment medical benefits, the cost of providing benefits is
determined using the Projected Unit Credit method, with actuarial
valuations being carried out at each balance sheet date. Actuarial
gains and losses are recognised in the Statement of Profit and Loss in
the period in which they occur. Past service cost is recognised
immediately to the extent that the benefits are already vested and
otherwise is amortised on a straight-line basis over the average period
until the benefits become vested. The retirement benefit obligation
recognised in the Balance Sheet represents the present value of the
defined benefit obligation as adjusted for unrecognised past service
cost, as reduced by the fair value of scheme assets. Any asset
resulting from this calculation is limited to past service cost, plus
the present value of available refunds and reductions in future
contributions to the schemes.
ii) Compensated absenses
Compensated absences which are not expected to occur within twelve
months after the end of the period in which the employee renders the
related service are recognised as a liability at the present value of
the defined benefit obligation as at the balance sheet date less the
fair value of the plan assets out of which the obligations are expected
to be settled. Long Service Awards are recognised as a liability at the
present value of the defined benefit obligation as at the balance sheet
date.
2.13 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised for the period until
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes substantial period of time to get ready for its
intended use. Other borrowing costs are recognised as an expense in the
period in which they are incurred. Capitalisation of borrowing costs is
suspended and charged to the Statement of Profit and Loss during
extended periods when active development activity on the qualifying
assets is interrupted.
2.14 Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Statement of Profit and Loss on a straight-line basis over the
lease term.
2.15 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating to the
dilutive potential equity shares, by the weighted average number of
equity shares considered for deriving basic earnings per share and the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
2.16 Impairment of assets
The carrying values of assets / cash generating units at each balance
sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
2.17 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
reasonable uncertainty in availing / utilising the credits.
(a) Reconciliation of the number of shares and amount outstanding at
the beginning and at the end of the reporting period:
(i) Equity Shares
There is no movement in the number of shares and amount outstanding of
Equity shares in current as well as previous year.
(b) Rights, preferences and restrictions attached to equity shares
The Company has only one class of equity shares having a par value ofRs.
10 per share. Each holder of equity shares is entitled to one vote per
share. The dividend, if any, proposed by the Board of Directors is
subject to the approval of the shareholders in the ensuing Annual
General Meeting.
In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the Company,
after payment of all claims / liabilities.
(c) Rights, preferences and restrictions attached to Preference shares
The holder of the Preference Shares shall be entitled to receive
cumulative dividend @12% per annum from the date of allotment till the
date of redemption. The Preference Shares shall rank for capital and
dividend (including all dividends undeclared upto the commencement of
winding up) and for repayment of capital in a winding up pari pasu
inter se and in priority to the Equity Shares of the Company, but shall
not confer any further or other right to participate either in profits
or assets. The Preference Shares shall be redeemable at the end of
seventh year from the date of allotment at the rate of Rs. 85/- per share
(including redemption premium ofRs. 75/- per share). The Company shall
have the option to redeem, all or any part thereof, of the said
Preference Shares, in one or more tranches, at the rate ofRs. 65/- per
share (including redemption premium ofRs. 551- per share ) at the end of
third year and/or at the rate ofRs. 75/- per share (including redemption
premium ofRs. 65/- per share) at the end of fifth year. Every Preference
shareholder of the Company has the right to vote only on resolution
placed before the General Meeting which directly affect the rights
attached to his Preference Shares.
Arrears of fixed cumulative dividends on preference shares as at 31
March, 2014Rs.10,389,156 (As at 31 March, 2013 Rs. 561,576)
(d) Shares held by the holding company Equity
Out of total 4,990,900 (previous year 4,990,900) Equity shares,
3,580,347 (previous year 3,580,347) Equity shares are held by the
holding company, Industrial Investment Trust Limited.
12% Non Convertible Cumulative Redeemable Preference Shares
All 7,000,000 preference shares (previous year 7,000,000) are held by
the holding company, Industrial Investment Trust Limited.
Mar 31, 2013
1.1 Basis of accounting
The fnancial statements are prepared under historical cost convention,
on an accrual basis and are in accordance with the requirements of the
Companies Act, 1956 and comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the said Act. The preparation
of fnancial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
fnancial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the fnancial statements are prudent and reasonable.
Future results could differ from these estimates.
1.2 Revenue Recognition
(a) Revenue from real estate projects is recognized on the Percentage
of Completion Method. Revenue is recognised in relation to the areas
sold, on the basis of percentage of actual costs incurred as against
the total estimated cost of the project under execution, subject to
such actual costs being 25 percent or more of the total estimated cost.
Land costs are not included for the purpose of computing the percentage
of completion.
The estimates of saleable area and costs are revised periodically by
the Management. The effect of such changes in estimates is recognised
in the period such changes are determined.
(b) Fees are accounted as per the terms of contract with the customers.
(c) Interest on fxed deposits and loans is accounted on time
proportionate basis.
(d) Dividend income is accounted when the right to receive is
established.
(e) Share of proft/loss from the partnership frms, in which the Company
is a partner, is based on the audited fnancial statements of the
partnership frms.
1.3 Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost comprises of the purchase price and any other
attributable cost of bringing the asset to its working condition for
its intended use.
1.4 Depreciation
(a) Depreciation on fxed assets is provided on the written down value
basis at the rates prescribed in Schedule XIV to the Companies Act,
1956.
(b) Depreciation on additions to fxed assets is provided for the full
year irrespective of the date of addition. No depreciation is provided
on deletions to fxed assets in the year of sale.
1.5 Inventories
Inventories are valued at lower of cost and net realisable value.
Construction material cost is determined on a First In First Out basis.
Construction work in progress comprises premium for development rights
and balance expenditure relating to construction after ascertaining the
cost of sales based on percentage completion method.
1.6 Investments
Long Term Investments are valued at cost unless there is a diminution
in value, other than temporary for which provision is made.
1.7 Provisions
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outfow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefts) are not discounted to their present values and are determined
based on the best estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to refect the current best estimates. Contingent liabilities
are disclosed in the Notes. Contingent assets are not recognised in the
fnancial statements.
NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST
MARCH, 2013 (Contd.) 1 Signifcant Accounting Policies (Contd.)
1.8 Taxation
Tax expense comprises current and deferred tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. Deferred tax refects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years. Deferred tax is measured based on the tax rate and tax laws
enacted or substantially enacted at the Balance Sheet date.
Deferred tax assets other than on carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is reasonable
certainty that suffcient future taxable income will be available
against which such deferred tax assets can be realised.
Deferred tax assets on account of carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty supported by convincing evidence that suffcient future
taxable income will be available against which such deferred tax assets
can be realised.
1.9 Employee benefts
(a) Short term employee benefts:
Short term employee benefts are recognised as an expense at the
undiscounted amount in the Statement of Proft and Loss of the year in
which the related service is rendered.
(b) Long term employee benefts:
1. Defned Contribution Plan:
The eligible employees of the Company are entitled to receive post
employment benefts in respect of provident and family pension fund, in
which both employees and the Company makes monthly contributions at a
specifed percentage of the employees'' eligible salary (currently 12% of
employees'' eligible salary). The contributions are made to Employees
Provident Fund Organisation. Provident Fund and Family Pension Fund are
classifed as Defned Contribution Plans as the Company has no further
obligation beyond making the contribution. The Company''s contributions
to Defned Contribution Plan are charged to the Statement of Proft and
Loss as incurred.
2. Defned Beneft Plan:
i. Gratuity
The Company has an obligation towards gratuity, a defned beneft
retirement plan covering eligible employees. The plan provides a lump
sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to
15 days salary payable for each completed year of service. Vesting
occurs upon completion of fve years of service. The Company makes
contribution to LIC of India based on an independent actuarial
valuation made at the year-end. Actuarial gains and losses are
recognised in the Statement of Proft and Loss.
ii. Compensated absences
The Company provides for the encashment of leave or leave with pay
subject to certain rules. The Employees are entitled to accumulate
leave subject to certain limits for future encashment/availment. The
Company makes provision for compensated absences based on an actuarial
valuation carried out at the end of the year. Actuarial gains and
losses are recognised in the Statement of Proft and Loss.
1.10 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised for the period until
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes substantial period of time to get ready for its
intended use. Other borrowing costs are recognised as an expense in the
period in which they are incurred.
1.11 Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefts of ownership of the leased assets, are classifed as
operating leases. Operating lease payments are recognised as an expense
in the Statement of Proft and Loss on a straight-line basis over the
lease term.
Mar 31, 2012
1.1 Basis of accounting
The financial statements are prepared under historical cost convention,
on an accrual basis and are in accordance with the requirements of the
Companies Act, 1956 and comply with the Accounting Standards referred
to in sub- section (3C) of section 211 of the said Act. The preparation
of financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates.
1.2 Revenue Recognition
(a) Revenue from real estate projects is recognized on the Percentage
of Completion Method. Revenue is recognised in relation to the areas
sold, on the basis of percentage of actual costs incurred as against
the total estimated cost of the project under execution, subject to
such actual costs being 25 percent or more of the total estimated cost.
Land costs are not included for the purpose of computing the percentage
of completion.
The estimates of saleable area and costs are revised periodically by
the Management. The effect of such changes in estimates is recognised
in the period such changes are determined.
(b) Fees are accounted as per the terms of contract with the customers.
(c) Interest on fixed deposits and loans is accounted on time
proportionate basis.
(d) Dividend income is accounted when the right to receive is
established.
(e) Share of profit from the partnership firms, in which the Company is
a partner, is as per the financial statements of the partnership firms.
1.3 Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost comprises of the purchase price and any other
attributable cost of bringing the asset to its working condition for
its intended use.
1.4 Depreciation
(a) Depreciation on fixed assets is provided on the written down value
basis at the rates prescribed in Schedule XIV to the Companies Act,
1956.
(b) Depreciation on additions to fixed assets is provided for the full
year irrespective of the date of addition. No depreciation is provided
on deletions to fixed assets in the year of sale.
1.5 Inventories
Inventories are valued at lower of cost and net realisable value.
Construction material cost is determined on a First In First Out basis.
Construction work in progress comprises premium for development rights
and expenditure relating to construction.
1.6 Investments
Long Term Investments are valued at cost unless there is a diminution
in value, other than temporary for which provision is made.
1.7 Accounting for Joint Ventures
The Company's investments in jointly controlled entities is reflected
as investment and accounted for in accordance with the Company's
accounting policy of Investments (Refer Note 1.6 above).
1.8 Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
their present values and are determined based on management estimate
required to settle the obligation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.
1.9 Taxation
Tax expense comprises current and deferred tax. Current tax is measured
at the amount expected to be paid to the tax authorities in accordance
with the Income-tax Act, 1961. Deferred tax reflects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years. Deferred tax is measured based on the tax rate and tax laws
enacted or substantially enacted at the Balance Sheet date.
Deferred tax assets other than on carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
Deferred tax assets on account of carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
1.10 Employee benefits
(a) Short term employee benefits:
Short term employee benefits are recognised as an expense at the
undiscounted amount in the statement of profit and loss of the year in
which the related service is rendered.
(b) Long term employee benefits:
1. Defined Contribution Plan:
The eligible employees of the Company are entitled to receive post
employment benefits in respect of provident and family pension fund, in
which both employees and the Company makes monthly contributions at a
specified percentage of the employees' eligible salary (currently 12%
of employees' eligible salary). The contributions are made to Employees
Provident Fund Organisation. Provident Fund and Family Pension Fund are
classified as Defined Contribution Plans as the Company has no further
obligation beyond making the contribution. The Company's contributions
to Defined Contribution Plan are charged to the statement of profit and
loss as incurred.
2. Defined Benefit Plan:
i. Gratuity
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering eligible employees. The plan provides a lump
sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to
15 days salary payable for each completed year of service. Vesting
occurs upon completion of five years of service. The Company makes
contribution to LIC of India based on an independent actuarial
valuation made at the year-end. Actuarial gains and losses are
recognised in the statement of profit and loss.
ii. Compensated absences
The Company provides for the encashment of leave or leave with pay
subject to certain rules. The Employees are entitled to accumulate
leave subject to certain limits for future encashment/ availment. The
Company makes provision for compensated absences based on an actuarial
valuation carried out at the end of the year. Actuarial gains and
losses are recognised in the statement of profit and loss.
1.11 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised for the period until
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes substantial period of time to get ready for its
intended use. Other borrowing costs are recognised as an expense in the
period in which they are incurred.
1.12 Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the statement of profit and loss on a straight-line basis over the
lease term.
Mar 31, 2010
I. Basis of accounting
The financial statements are prepared under historical cost convention
on an accrual basis and are in accordance with the requirements of the
Companies Act, 1956 and comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the said Act. The preparation
of financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates.
ii. Fixed assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation. Cost comprises of the purchase price and any other
attributable cost of bringing the asset to its working condition for
its intended use.
iii. Depreciation
a) Depreciation is provided on the written down value basis at the
rates prescribed in Schedule XIV to the Companies Act, 1956.
b) Depreciation on additions to fixed assets is provided for the full
year irrespective of the date of addition. No depreciation is provided
on deletions to fixed assets in the year of sale.
iv. Revenue recognition
a) Fees are accounted as per the terms of contract with the customer.
b) Interest on fixed deposits and inter-corporate deposits is accounted
on accrual basis.
c) Dividend income is accounted when the right to receive payment is
established and known.
v. Inventories
Inventories are valued at lower of cost and net realisable value.
Construction work in progress comprises premium for development rights
and expenditure relating to construction.
vi. Investments
Long term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of long
term investments.
Current investments are stated at lower of cost and fair value.
vii. Taxation
Tax expense comprises of current, deferred and fringe benefit tax.
Current income tax and fringe benefit tax are measured at the amount
expected to be paid to the tax authorities in accordance with the
Income-tax Act, 1961. Deferred income taxes reflect the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years. Deferred tax is measured based on the tax rate and the tax laws
enacted or substantially enacted at the balance sheet date.
Deferred tax assets other than on carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
Deferred tax asset on account of carried forward losses and unabsorbed
depreciation are recognised only to the extent that there is virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
viii. Provision
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
their present values and are determined based on management estimate
required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current
management estimates.
ix. Employee Benefits
(a) Short term employee benefits:
Short term employee benefits are recognised as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
(b) Long term employee benefits:
(i) Defined Contribution plan:
The eligible employees of the Company are entitled to receive post
employment benefits in respect of provident fund and family pension
fund, in which both employees and the Company make monthly
contributions at a specified percentage of employees eligible salary
(currently 12% of employees eligible salary). The contributions are
made to Employees Provident Fund Organisation. Provident Fund and
Family Pension Fund are classified as Defined Contribution Plans as the
Company has no further obligation beyond making the contribution. The
Companys contributions to Defined Contribution Plan are charged to
Profit and Loss Account as incurred.
(ii) Defined benefit plan: 1. Gratuity
The Company has an obligation towards gratuity, a defined benefit
retirement plan covering eligible employees. The plan provides a lump
sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to
15 days salary payable for each completed year of service. Vesting
occurs upon completion of five years of service. The Company makes
provision for gratuity based on an actuarial valuation carried out at
the end of the year. Actuarial gains and losses are recognised in the
Profit and loss Account.
2. Compensated absences
The Company provides for the encashment of leave or leave with pay
subject to certain rules. The Employees are entitled to accumulate
leave subject to certain limits for future encashment/availment. The
Company makes provision for compensated absences based on an actuarial
valuation carried out at the end of the year. Actuarial gains and
losses are recognised in the Profit and Loss Account.
x. Borrowing costs
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalised for the period until
the asset is ready for its intended use. A qualifying asset is an asset
that necessarily takes substantial period of time to get ready for its
intended use. Other borrowing costs are recognised as an expense in the
period in which they are incurred.
xi. Operating Lease
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased assets, are classified as
operating leases. Operating lease payments are recognised as an expense
in the Profit and Loss Account on a straight-line basis over the lease
term.