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Accounting Policies of Indiabulls Real Estate Ltd. Company

Mar 31, 2016

1 Company overview

India bulls Real Estate Limited ("the Company") was incorporated on April 04, 2006 with the main objects of carrying on the business of real estate project advisory, project marketing, maintenance of completed projects, engineering, industrial and technical consultancy, construction and development of real estate properties and other related and ancillary activities. The Company''s primary business segment is reflected based on principal business activities carried on by the Company. As per Accounting Standard (AS - 17) Segment Reporting as specified under section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended), the Company operates in one reportable business segment i.e. project advisory which inter alia includes real estate/infrastructure/other projects advisory and construction and development of infrastructure/real estate projects and is primarily operating in India and hence, considered as single geographical segment.

2 Basis of preparation of financial statements

i Basis of accounting

The financial statements have been prepared on a going concern basis under the historical cost basis, in accordance with the generally accepted accounting principles in India and in compliance with the applicable accounting standards as specified under section 133 of Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Companies Act 2013.

ii Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities, if any, 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 recognized in the current and future periods.

3 Significant accounting policies a Fixed assets

Recognition and measurement

Tangible assets are stated at cost; net of tax or duty credits availed, less accumulated depreciation and impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

Intangible assets are stated at cost, net of tax or duty credits availed, less accumulated amortization and impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition. Depreciation and amortization

Till the year ended March 31, 2014, depreciation rates prescribed under Schedule XIV of Companies Act, 1956 were used for charging depreciation. From the year ended March 31, 2015, schedule XIV has been replaced by Schedule

II of Companies Act, 2013. Schedule II of Companies Act, 2013 prescribed the useful lives of fixed asset which, in many cases, are different from lives prescribed under Schedule XIV.

Depreciation on fixed assets is provided on the 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.

Intangible assets are amortized over the expected useful life from the date the assets are available for use, as mentioned below:

Description of asset : Computer software’s Estimated life : 4 years Capital work-in-progress Fixed assets under construction are disclosed under capital work-in-progress. Advances paid towards acquisition or construction of fixed assets are included as capital advances under long-term loans and advances.

b Inventories

Land other than that transferred to real estate projects under development is valued at lower of cost or net realizable value.

Real estate project under development includes cost of land under development, internal and external development costs, construction costs, and development/construction materials, borrowing costs and related overhead costs and is valued at lower of cost or net realizable value.

c Investments

Investments are classified as non-current or current investments, based on management''s intention. Investments that are readily realizable 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.

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

d Revenue recognition

i) Income from real estate projects advisory services is recognized on accrual basis. Marketing and lease management income are accounted for when the underline contracts are duly executed, on accrual basis when the services are completed, except in cases where ultimate collection is considered doubtful.

ii) Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

iii) Dividend income is recognized when the right to receive payment is established, at the balance sheet date.

iv) Profit/(loss) on sale of investment is recognized on the date of its sale and is computed as excess of sale proceeds over its carrying amount as at the date of sale.

v) Revenue from real estate projects under development is computed on the percentage of completion method. Revenue is recognized in the financial year in which the agreement to sell or application forms (containing salient terms of agreement to sell) is executed, on the percentage of completion method which is applied on a cumulative basis in each accounting year to the current estimate of contract revenue and related project costs, when the stage of completion of each project reaches a significant level which is estimated to be at least 25% of the total estimated construction cost of the respective projects. Revenue from real estate projects under development 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)."

The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognized in the period such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately.

e Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized 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 substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss as incurred.

f Impairment of assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If, at the reporting 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. Impairment losses previously recognized are accordingly reversed in the statement of profit and loss.

g Employee benefits

The Company''s contribution to provident fund and employee state insurance schemes is charged to the statement of profit and loss or inventoried as a part of real estate project under development, as the case may be. The Company has unfunded defined benefit plans namely compensated absences and gratuity for its employees, the liability for which is determined on the basis of actuarial valuation, conducted annually, by an independent actuary using projected unit credit method, in accordance with notified Accounting Standard 15 (Revised 2005) - ''Employee Benefits''.

Actuarial gains and losses are either recognized in the statement of profit and loss or inventoried as a part of real estate project under development, as the case may be.

h Stock based compensation

Stock based compensation expense are recognized in accordance with the guidance note on ''Accounting for employee share based payments'' issued by the Institute of Chartered Accountants of India (''ICAI''), which establishes financial accounting and reporting principles for employee share based payment plans. Employee stock compensation costs are measured based on intrinsic value of the stock options on the grant date. The compensation expense is amortized over the vesting period of the options.

i Leases

Lease payments under operating leases are recognized as expense in the Statement of Profit and Loss over the lease term.

j Foreign currency transactions

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the exchange rate between the reporting currency and the foreign currency at the date of the transaction to the foreign currency amount. Conversion

Foreign currency monetary items are converted to reporting currency using the closing rate. Non monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or any other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange differences

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognized in the statement of profit and loss in the year in which they arise except those arising from investments in non-integral operations.

Exchange differences arising on monetary items that in substance forms part of the Company''s net investment in a non-integral foreign operation are accumulated in a foreign currency translation reserve in the financial statements until the disposal of the net investment, at which time they are recognized in the statement of profit and loss.

k Taxes on income

Current tax

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

Minimum alternate tax (''MAT'') credit entitlement is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonably certain that the Company will pay normal income tax during the specified period.

Deferred tax

Deferred tax resulting from timing differences between taxable income and accounting income is accounted for at the current rate of tax or substantively enacted tax rates as at reporting date, to the extent that the timing differences are expected to crystallize.

Deferred tax assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that such deferred tax assets will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date.

l Provisions, contingent liabilities and contingent assets

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for:

- Possible obligations which will be confirmed only by future events not wholly within the control of the Company or,

- Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

m Earnings per equity share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.

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.

iv During the year, pursuant to approval of shareholders at the general meeting held on July 20, 2015, and in accordance with the provisions of section 42 and 62 of the Companies Act, 2013 and requirement contained in SEBl (Issue of Capital and Disclosure Requirements) Regulations 2009, the Company, on July 22, 2015, issued and allotted an aggregate of 36.700.000 equity shares of face value of '' 2 each at the issue price of Rs. 67 (including a premium of Rs. 65) per equity share to SG Infralands Private Limited and SG Devbuild Private Limited (''promoter group entities'').

During the year, the Company has received Rs. 2,921,200,000, towards 43,600,000 share warrants issued to promoter group entities on preferential allotment basis. Subsequent to the year end, the Company has, upon conversion of 43.600.000 share warrants, allotted 43,600,000 equity shares of face value of Rs. 2 each at the issue price of Rs. 67 (including a premium of Rs. 65) per equity share held by promoter group entities.

v Rights, preferences and restrictions attached to equity shares

The holders of equity shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at meetings of the Company. In the event of liquidation of the Company, all preferential amounts, if any, shall be discharged by the Company. The remaining assets of the Company shall be distributed to the holders of equity shares in proportion to the number of shares held to the total equity shares outstanding as on that date. All shares rank equally with regard to the Company''s residual assets, except that holders of preference shares participate only to the extent of the face value of the shares.

vii Aggregate number of shares issued for consideration other than cash

During the year ended March 31, 2012, Pursuant to and in terms of the court approved scheme of arrangement under section 391 to 394 of the Companies Act, 1956, by and among India bulls Real Estate Limited (the Company), Rattan India Infrastructure Limited, India bulls Builders Limited (IBL), Rattan India Power Limited and Poena Power Supply Limited (PPSL) and their respective shareholders and creditors (Scheme-II), which had been approved by the Hon''ble High Court of Delhi, IBL a wholly owned subsidiary of the Company got merged with the Company as a going concern and in consideration of which 42,500,000 fully paid equity shares were allotted by the Company in favor of IBREL-IBL Scheme Trust, the shareholder of IBL as on the effective date of the Scheme II for the sole benefit of India bulls Real Estate Limited.

Further to the Scheme II , the warrants issued on August 26, 2010 and remaining outstanding as on the effective date of the Scheme, were converted into 28,700,000 partly paid equity shares of the Company. The Promoter group companies and directors of the Company, who were allotted partly paid shares had paid the final call money as specified in the scheme except for one of the warrant holder, to whom 100,000 partly paid up equity shares (Rs. 0.50 per share paid) were allotted had been forfeited due to nonpayment of call money and accordingly 28,600,000 equity shares had become fully paid up shares.

viii Aggregate number of shares bought back

During the year ended March 31, 2013, 50,000,000 equity shares were bought back at an average price of Rs. 54.64 per share from the open market through stock exchanges using electronic trading facilities of BSE Limited (''BSE'') and National Stock Exchange of India Limited (''NSE'') in accordance with section 77A, 77AA and 77B of the erstwhile Companies Act, 1956 and SEBI Regulation 1998.

ix 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 24.

i Repayment terms (including current maturities) and security details for non-convertible debentures:

a On March 18, 2016, the Company had issued and allotted 100 secured redeemable non-convertible debentures (''NCDs'') of face value of '' 1,000,000 each carrying interest rate of 10.75% payable on yearly basis, aggregating Rs. 100,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of five years from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

b On March 18, 2016, the Company had issued and allotted 200 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 10.75% payable on yearly basis, aggregating Rs. 200,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of five years from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

c On August 21, 2015, the Company had issued and allotted 150 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.50% payable on yearly basis, aggregating Rs. 150,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (Debenture Trustee''). These NCDs are redeemable at the end of five years from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

d On August 21, 2015, the Company had issued and allotted 200 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.50% payable on yearly basis, aggregating Rs. 200,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company''s and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of five years from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

e On June 06, 2014, the Company had issued and allotted 9,000 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.10% payable quarterly basis, aggregating Rs. 9,000,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Gurgaon, Panvel, Chennai, Savroli and Chawne held and owned by the Company and its certain subsidiary companies by way of charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are due for 50% redemption at end of fourth year and balance 50% redemption at the end of fifth year from the date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of National Stock Exchange of India Limited.

f On March 11, 2016, the Company had issued and allotted 3,000 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.00% payable on yearly basis, aggregating Rs. 3,000,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel, Raigad and Indore held and owned by the Company and its certain subsidiary companies by way of charge in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of third year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

g On August 21, 2015, the Company had issued and allotted 50 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.80% payable on yearly basis, aggregating Rs. 50,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of three years from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

h On March 28, 2016, the Company had issued and allotted 200 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 10.50% payable on yearly basis, aggregating Rs. 200,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of twenty five months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

i On March 28, 2016, the Company had issued and allotted 150 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 10.50% payable on yearly basis, aggregating Rs. 150,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of twenty five months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

j On March 18, 2016, the Company had issued and allotted 200 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 10.50% payable on yearly basis, aggregating Rs. 200,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of twenty five months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

k On December 31, 2015, the Company had issued and allotted 2,500 secured redeemable non-convertible debentures (''NCDs'') of face value of '' 1,000,000 each carrying interest rate of 10.50% payable on yearly basis, aggregating Rs. 2,500,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company''s and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of second year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

l On September 26, 2014, the Company had issued and allotted 500 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.25% payable on yearly basis, aggregating Rs. 500,000,000 on private placement basis for part finance of various projects undertaken by Company and its subsidiary company. These NCDs are secured by mortgage on immovable properties situated at Gurgaon and Panvel held and owned by the Company and its subsidiary company by way of charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of third year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of National Stock Exchange of India Limited.

m On August 21, 2015, the Company had issued and allotted 50 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.75% payable on yearly basis, aggregating Rs. 50,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of two years from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

n On May 22, 2015, the Company had issued and allotted 850 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 12.00% payable on yearly basis, aggregating Rs. 850,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel, Gurgaon and Chennai held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created on property situated at Panvel and Gurgaon and exclusive charge on property situated at Chennai in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of second year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

o On May 22, 2015, the Company had issued and allotted 2,650 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 12.00% payable on yearly basis, aggregating Rs. 2,650,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel, Gurgaon and Chennai held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created on property situated at Panvel and Gurgaon and exclusive charge on property situated at Chennai in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of second year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

p On March 18, 2016, the Company had issued and allotted 150 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 10.50% payable on yearly basis, aggregating Rs. 150,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of thirteen months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

q On March 17, 2016, the Company had issued and allotted 700 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.00% payable on yearly basis, aggregating Rs. 700,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel, Khalapur and Alibagh held and owned by the Company and its certain subsidiary companies by way of charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of thirteen months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

r On March 06, 2014, the Company had issued and allotted 1,000 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 11.40% payable on yearly basis, aggregating Rs. 1,000,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are to be secured by mortgage on immovable properties situated at Panvel held and owned by the Company and its certain subsidiary companies respectively by way of first charge to be created in favor of IDBI Trusteeship Services Limited (‘Debenture Trustee''). These NCDs are redeemable at the end of third year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of National Stock Exchange of India Limited.

s On December 29, 2014, the Company had issued and allotted 2,500 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each carrying interest rate of 10.20% payable on yearly basis, aggregating Rs. 2,500,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel, Gurgaon, Dhamni and Waishet held and owned by the Company and its certain subsidiary companies respectively by way of charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of second year from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

t On August 21, 2015, the Company had issued and allotted 50 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each repayable at premium of Rs. 149,590 per debenture, aggregating Rs. 50,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of fifteen months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

u On August 19, 2015, the Company had issued and allotted 250 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each repayable at premium of Rs. 149,590 per debenture, aggregating Rs. 250,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company''s and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of fifteen months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.

v On August 19, 2015, the Company had issued and allotted 250 secured redeemable non-convertible debentures (''NCDs'') of face value of Rs. 1,000,000 each repayable at premium of Rs. 128,440 per debenture, aggregating Rs. 250,000,000 on private placement basis for part finance of various projects undertaken by the Company and its subsidiary companies. These NCDs are secured by mortgage on immovable properties situated at Panvel and Savroli held and owned by the Company and its certain subsidiary companies by way of pari-passu charge created in favor of IDBI Trusteeship Services Limited (''Debenture Trustee''). These NCDs are redeemable at the end of thirteen months from date of allotment. These NCDs are listed on Wholesale Debt Market (WDM) segment of BSE Limited.


Mar 31, 2014

A Revenue recognition

(i) Revenue from real estate development projects and plots under development is recognized in the financial year in which the agreement to sell or application forms (containing salient terms of agreement to sell) is executed, on the percentage of completion method which is applied on a cumulative basis in each accounting year to the current estimate of contract revenue and related project costs, when the stage of completion of each project reaches a significant level which is estimated to be at least 25% of the total estimated construction cost of the respective projects.

(ii) Revenue and related expenditures in respect of short term works contracts that are entered into and completed during the year are accounted for on accrual basis as they are earned or incurred though revenue and related expenditures in respect of Long term works contracts are accounted for on the basis of "Percentage of Completion Method".

iii) Income from project advisory services is recognized on accrual basis.

iv) Marketing and lease management income are accounted for when the underline contracts are duly executed, on accrual basis.

v) Interest income from deposits,loans & advances and debentures is recognized on accrual basis.

vi) Dividend income is recognized when the right to receive the dividend is unconditionally established.

vii) Profit/(loss) on sale of investments is recognized on the date of the transaction of sale and is computed with reference to the carrying amount of investments.

viii) Incomes from sale of goods are recongised on dispatch of goods. Gross sale value are stated at contractual realizable values and net of sale tax and trade discounts.

b Inventories

Land other than that transferred to real estate projects under development is valued at lower of cost or net realisable value.

Cost includes cost of acquisition and internal and external development costs, construction costs, and development/ construction materials. Inventory work-in-progress represents land under development, cost incurred directly in respect of construction activity and indirect construction cost to the extent to which the expenditure is related to the construction or incidental thereto on unsold real estate projects and land held for development is valued at cost.

Construction materials, stores and spares, tools and consumable are valued at lower of cost or net realisable value, on the basis of first-in first-out method.

c Fixed assets

Recognition and measurement

Tangible fixed assets are stated at cost, net of tax or duty credits availed, less accumulated depreciation and accumulated impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

Intangible assets are stated at cost, net of tax or duty credits availed, less accumulated amortization and accumulated impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition.

Depreciation and Amortization

Depreciation on fixed assets is provided on the straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis from the date the asset is ready to put to use till the end of its useful life or till the asset is discarded, whichever is earlier. Individual assets costing up to Rs. 5,000 per item are fully depreciated in the year of purchase. Temporary structures are depreciated over a period of twelve months, on a pro-rata basis, from the date it is ready to put to use.

Intangible assets are amortized over the expected useful life from the date the assets are available for use, as mentioned below:

Description of asset Estimated useful life

computer software 4 years

Capital work-in-progress

Costs of fixed assets under construction are disclosed under capital work-in-progress. Advances paid towards acquisition or construction of fixed assets or intangible assets is included as capital advances under long term loans and advances.

d Borrowing costs

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalised as part of cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to statement of profit and loss.

e Investments

Investments are classified as long term or current investments. Long term investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or fair value.

f Impairment of assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If, at the reporting 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. Impairment losses previously recognized are accordingly reversed.

g Employee benefits

The Company''s contribution to provident fund and employee state insurance schemes is charged to the statement of profit and loss or inventorized as a part of real estate project under development, as the case may be. The Company has unfunded defined benefit plans namely compensated absences and gratuity for its employees, the liability for which is determined on the basis of actuarial valuation, conducted annually, by an independent actuary, in accordance with Accounting Standard 15 (Revised 2005) - ''Employee Benefits'', notified under the Companies (Accounting Standards) Rules, 2006, as amended.

Actuarial gains and losses are recognized in the statement of profit and loss or inventorized as a part of real estate project under development, as the case may be.

h Stock based compensation expense

Stock based compensation expense are recognized in accordance with the guidance note on ''Accounting for employee share based payments'' issued by the Institute of Chartered Accountants of India, which establishes financial accounting and reporting principles for employee share based payment plans. Employee stock compensation costs are measured based on the estimated intrinsic value of the stock options on the grant date. The compensation expense is amortized over the vesting period of the options.

i Leases

In case of assets taken on operating lease, the lease rentals are charged to the statement of profit and loss in accordance with Accounting Standard 19 (AS 19) - ''Leases'', as notified under the Companies (Accounting Standards) Rules, 2006, as amended.

j Foreign currency transactions

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency at the date of the transaction to the foreign currency amount. Conversion

Foreign currency monetary items are converted to reporting currency using the closing rate of reporting date. Non monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or any other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognized in the statement of profit and loss in the year in which they arise except those arising from investments in non-integral operations.

Exchange differences arising on monetary items that in substance forms part of the Company''s net investment in a non-integral foreign operation are accumulated in a foreign currency translation reserve in the financial statements until the disposal of the net investment, at which time they are recognized in the statement of profit and loss.

k Taxes on income

Current tax

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

Deferred tax

Deferred tax resulting from timing differences between taxable income and accounting income is accounted for at the current rate of tax or substantively enacted tax rates as at reporting date, to the extent that the timing differences are expected to crystallize.

Deferred tax assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that such deferred tax assets will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date.

l Provisions, contingent liabilities and contingent assets

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or,

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

m Earnings per equity share

Basic earnings per share is computed by dividing profit available to equity shareholders by weighted average number equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year.

n Share issue/Buyback expenses

Share issue/Buyback expenses are adjusted against securities premium account to the extent of balance available and thereafter, the balance portion is charged off to statement of profit and loss, as incurred.

o Preliminary expenses

Preliminary expenses are adjusted against securities premium account (net of tax) to the extent of balance available and thereafter, the balance portion is charged off to the statement of profit and loss, as incurred.


Mar 31, 2012

A) Revenue recognition

i) Revenue from real estate development projects and plots under development is recognized in the financial year in which the agreement to sell or application forms (containing salient terms of agreement to sell) is executed, on the percentage of completion method which is applied on a cumulative basis in each accounting year to the current estimate of contract revenue and related project costs, when the stage of completion of each project reaches a significant level which is estimated to be at least 25% of the total estimated construction cost of the respective projects.

ii) Revenue and related expenditures in respect of short term works contracts that are entered into and completed during the year are accounted for on accrual basis as they are earned or incurred though revenue and related expenditures in respect of Long term works contracts are accounted for on the basis of "Percentage of Completion Method".

iii) Income from project advisory services is recognized on accrual basis.

iv) Marketing and lease management income are accounted for when the underline contracts are duly executed, on accrual basis.

v) Interest income from deposits is recognized on accrual basis.

vi) Dividend income is recognized when the right to receive the dividend is unconditionally established.

vii) Profit/(loss) on sale of investments is recognized on the date of the transaction of sale and is computed with reference to the carrying amount of investments.

viii) Incomes from sale of goods are recognized on dispatch of goods. Gross sale are stated at contractual realizable values and net of sale tax and trade discounts.

b) Inventories

Land other than that transferred to real estate projects under development is valued at lower of cost or net realizable value.

Cost includes cost of acquisition and internal and external development costs, construction costs, and development/ construction materials. Inventory work-in-progress represents land under development, cost incurred directly in respect of construction activity and indirect construction cost to the extent to which the expenditure is related to the construction or incidental thereto on unsold real estate projects is valued at cost.

Construction materials, stores and spares, tools and consumable are valued at lower of cost or net realizable value, on the basis of first-in first-out method.

c) Fixed assets

Recognition and measurement

Tangible fixed assets are stated at cost, net of tax or duty credits availed, less accumulated depreciation and accumulated impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

Intangible assets are stated at cost, net of tax or duty credits availed, less accumulated amortization and accumulated impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition.

Depreciation and Amortization

Depreciation on fixed assets is provided on the straight-line method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, on a pro-rata basis from the date the asset is ready to put to use till the end of its useful life or till the asset is discarded, whichever is earlier. Individual assets costing up to Rs. 5,000 per item are fully depreciated in the year of purchase. Temporary structures are depreciated over a period of twelve months, on a pro-rata basis, from the date it is ready to put to use.

Intangible assets are amortized over the expected useful life from the date the assets are available for use, as mentioned below:

Description of asset Estimated useful life

computer software 4 years

Capital work-in-progress

Costs of fixed assets under construction are disclosed under capital work-in-progress. Advances paid towards acquisition or construction of fixed assets or intangible assets is included as capital advances under long term loans and advances.

d) Borrowing costs

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as part of cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss.

e) Investments

Investments are classified as long term or current investments. Long term investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management. Current investments are stated at lower of cost or fair value.

f) Impairment of assets

At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If, at the reporting 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. Impairment losses previously recognized are accordingly reversed.

g) Employee benefits

The Company's contribution to provident fund and employee state insurance schemes is charged to the Statement of Profit and Loss or inventorized as a part of real estate project under development, as the case may be. The Company has unfunded defined benefit plans namely compensated absences and gratuity for its employees, the liability for which is determined on the basis of actuarial valuation, conducted semi-annually, by an independent actuary, in accordance with Accounting Standard 15 (Revised 2005) - 'Employee Benefits', notified under the Companies (Accounting Standards) Rules, 2006, as amended.

Actuarial gains and losses are recognized in the Statement of Profit and Loss or inventoried as a part of real estate project under development, as the case may be.

h) Stock based compensation expense

Stock based compensation expense are recognized in accordance with the guidance note on 'Accounting for employee share based payments' issued by the Institute of Chartered Accountants of India, which establishes financial accounting and reporting principles for employee share based payment plans. Employee stock compensation costs are measured based on the estimated intrinsic value of the stock options on the grant date. The compensation expense is amortized over the vesting period of the options.

i) Leases

In case of assets taken on operating lease, the lease rentals are charged to the Statement of Profit and Loss in accordance with Accounting Standard 19 (AS 19) -'Leases', as notified under the Companies (Accounting Standards) Rules, 2006, as amended.

j) Foreign currency transactions Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency at the date of the transaction to the foreign currency amount.

Conversion

Foreign currency monetary items are converted to reporting currency using the closing rate. Non monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or any other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

Exchange Differences

Exchange differences arising on monetary items on settlement, or restatement as at reporting date, at rates different from those at which they were initially recorded, are recognized in the Statement of Profit and Loss in the year in which they arise except those arising from investments in non-integral operations.

Exchange differences arising on monetary items that in substance forms part of the Company's net investment in a non-integral foreign operation are accumulated in a foreign currency translation reserve in the financial statements until the disposal of the net investment, at which time they are recognized in the Statement of Profit and Loss.

k) Taxes on income

Current tax

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

Deferred tax

Deferred tax resulting from timing differences between taxable income and accounting income is accounted for at the current rate of tax or substantively enacted tax rates as at reporting date, to the extent that the timing differences are expected to crystallize.

Deferred tax assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that such deferred tax assets will be realized. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date.

I) Provisions, contingent liabilities and contingent assets

Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for:

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the Company or,

(ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

m) Earnings per equity share

Basic earnings per share is computed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year.

n) Share issue expenses

Share issue expenses are adjusted against securities premium account to the extent of balance available and thereafter, the balance portion is charged off to Statement of Profit and Loss, as incurred.

o) Preliminary expenses

Preliminary expenses are adjusted against securities premium account (net of tax) to the extent of balance available and thereafter, the balance portion is charged off to the Statement of Profit and Loss, as incurred.


Mar 31, 2010

A) Basis of Accounting:

The fnancial statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and in compliance with the ap- plicable accounting standards as notifed under the Companies (Accounting Standards) Rules, 2006, as amended.

b) Use of Estimates:

The presentation of fnancial statements in con- formity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the fnancial statements and the reported amount of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognised in the year in which the results are known / materialised.

c) Revenue Recognition:

i) Income from Real Estate Project Advisory is recognised on accrual basis.

ii) Revenue and related expenditures in respect of short term works contracts that are entered into and completed during the year are accounted for on accrual basis as they are earned or incurred.

iii) Interest income from deposits is recognised on accrual basis.

iv) Dividend income is recognised when the right to receive the dividend is unconditionally established.

v) Proft on sale of investments is recognised on the date of the transaction of sale and is computed with reference to the cost of invest- ments.

vi) Incomes from sale of goods are recongised on dispatch of goods. Gross sale are stated at contractual realisable values and net of sale tax and trade discounts.

d) Fixed Assets:

Tangible Fixed Assets are stated at cost, net of tax / duty credits availed, less accumulated depreciation / impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation. Intangible assets are stated at cost, net of tax / duty credits availed, less accumulated amortisation / impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition.

e) Depreciation / Amortisation:

Depreciation on Fixed Assets is provided on the straight-line method at the rates and as per the manner prescribed in Schedule XIV of the Compa- nies Act, 1956.

Depreciation on additions / deletions to fxed assets is provided on pro-rata basis from/till the date the asset is put to use / discarded. Individual assets costing less than Rs. 5,000 are fully depreciated in the year of purchase.

Intangible assets are amortised over the expected useful life from the date the assets are available for use, as mentioned below:

Description of asset Estimated useful life

Software Four years

f) Impairment of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company esti- mates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carry- ing amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Proft and Loss Account. 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 impairment losses previously recognised are ac- cordingly reversed.

g) Borrowing Costs:

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalised as part of cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

h) Investments:

Investments are classifed as long term or current investments. Long term investments are stated at cost and provision for diminution in their value, other than temporary, is recorded in the books of account. Current investments are stated at the lower of cost or fair value.

i) Taxes on Income:

Current Tax is determined as the tax payable in respect of taxable income for the year and is com- puted in accordance with relevant tax regulations. Deferred Tax resulting from timing differences between taxable income and accounting income is accounted for at the current rate of tax / substan- tively enacted tax rates as on the Balance Sheet date, to the extent that the timing differences are expected to crystallise.

Deferred Tax Assets are recognised where reali- sation is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, Deferred Tax Assets are recognised only if there is virtual certainty supported by convincing evidence that such deferred tax assets will be realised. Deferred Tax Assets are reviewed for the appropri- ateness of their respective carrying values at each Balance Sheet data.

j) Leases:

In case of assets taken on operating leases, lease rentals are charged to the proft and loss account in accordance with Accounting Standard 19 (AS 19) - Leases as notifed under the Companies (Account- ing Standards) Rules, 2006, as amended.

k) Foreign Currency Transactions:

As stipulated in Accounting Standard 11, The Effects of Changes in Foreign Exchange Rates, noti- fed under the Companies (Accounting Standards) Rules, 2006, as amended, foreign currency opera- tions of the Company are classifed as (a) Integral Operations and (b) Non Integral Operations. Overseas subsidiaries are treated as Non Integral Operations.

i). Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign cur- rency at the date of the transaction to the foreign currency amount.

ii). Conversion

Foreign currency monetary items are converted to reporting currency using the closing rate. Non monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transac- tion; and non-monetary items which are carried at fair value or any other similar valuation denomi- nated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii). Exchange Differences

Exchange differences arising on the settlement/ conversion of monetary items or on reporting, the companys monetary items at rates different from those at which they were initially recorded, are rec- ognised as income or expense in the year in which they arise except those arising from investments in non-integral operations.

Exchange differences arising on monetary items that in substance forms part of the Companys net investment in a non-integral foreign operation are accumulated in a foreign currency translation re- serve in the balance sheet until the disposal of the net investment, at which time they are recognised as income or expenses.

l) Employee Benefts:

Short-term employee benefts are recognised as an expense at the undiscounted amount in the proft and loss account for the year in which the related service is rendered. The Companys contribution to Provident Fund and Employee State Insurance Schemes (defned contribution schemes) is charged to the Proft and Loss Account Post employment and other long term employee benefts for its eligible employees are recognised as an expense in the proft and loss account, for the year in which the employee has rendered services. The Company has unfunded defned beneft plans, namely compensated absences and gratuity the liability for which is determined on the basis of actuarial valuation, conducted semi-annually, by an independent actuary, in accordance with Account- ing Standard 15 (AS 15) - Employee Benefts, noti- fed under the Companies (Accounting Standards) Rules, 2006, as amended. The expense is recogn- ised at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses are recognised in the Proft and Loss account as income or expenses.

m) Deferred Employee Stock Compensation Costs:

Deferred Employee Stock Compensation Costs are recognised in accordance with the Guidance Note on Accounting for Employee Share Based Payments issued by the Institute of Chartered Accountants of India, which establishes fnancial accounting and reporting principles for employee share based pay- ment plans. Employee stock compensation costs are measured based on the estimated intrinsic or fair value (as elected by the Company in respect of its different Employees Share Based Payment Plans) of the stock options on the grant date. The compensation expense is amortised over the vest- ing period of the options.

n) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised only when there is a pres- ent obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made. Contingent liability is disclosed for:

i) Possible obligations which will be confrmed only by future events not wholly within the control of the Company or,

ii) Present obligations arising from past events where it is not probable that an outfow of resources will be required to settle the obliga- tion or a reliable estimate of the amount of the obligation cannot be made.

Contingent Assets are not recognised in the fnan- cial statements since this may result in the recogni- tion of income that may never be realised.

o) Share Issue Expenses:

Share Issue Expenses are adjusted against Securi- ties Premium Account to the extent of balance available and thereafter, the balance portion is charged off to the proft and loss account, as incurred.

p) Earnings Per Share:

Basic Earnings per Share is computed using the weighted average number of equity shares outstanding during the year. Diluted Earnings per Share is computed using the weighted average number of equity and dilutive potential equity shares outstanding during the year.

q) Preliminary Expenses:

Preliminary Expenses are adjusted against Securi- ties Premium Account (net of tax) to the extent of balance available and thereafter, the balance por- tion is charged off to the proft and loss account, as incurred.


Mar 31, 2009

A. Basis of Accounting:

The financial statements are prepared underthe historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles in India and in compliance with the applicable accounting standards as notified under the Companies (Accounting Standards)Rules2006,asamended.

b. Use of Estimates:

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

c. Revenue Recognition:

i. Incomefrom Real Estate Project Advisory is recognized on accrual basis.

ii. Interest income from deposits is recognized on accrual basis.

iii. Dividend income is recognized when the right to receive the dividend is unconditionally established.

iv. Profit on sale of investments is recognized on the date of the transaction of sale and is computed with reference to the cost of investments.

d. Fixed Assets:

Tangible Fixed Assets are stated at cost, netof tax/duty credits availed, less accumulated depreciation/impairment losses, if any. Cost includes original cost of acquisition, including incidental expenses related to such acquisition and installation.

Intangible assets are stated at cost, net of tax / duty credits availed, less accumulated amortisation / impairment losses, if any. Cost includes origin alcost of acquisition including incidental expenses related to such acquisition.

e. Depreciation/Amortisation:

Depreciation on Fixed Assets is provided on the straight-line method at the rates and as per the manner prescribed in Schedule XIV of the CompaniesAct,1956.

Depreciation on additions / deletions to fixed assets is provided on pro-rata basis from/till the date the asset is put to use / discarded. Individual as sets costing lessthan Rs.5,000 are fully depreciated in the year of purchase.

Intangible assets are amortized over the expected usefull if from the date the assets are available for use as mentioned below:

Description of asset Estimated useful life

Softie Four years

f. Impairment of Assets:

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the Profit and Loss Account. 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 reassessed recoverable amount Impairment losses previously recognized are accordingly reversed.

g. Borrowing Cost:

Borrowing costs attribut able to the acquisition,construction or production of qualifying as sets are capitalised as part of cost of the asset.A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to revenue.

h. Investments:

Investments are classified as long term or current investments. Long term investments are stated at cost and provision for diminution in their value. other than temporary is recorded in the books of account Current investments are stated at the lower of cost or fair value.

i.Taxes on Income:

Current Tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

Deferred Tax resulting from timing differences between taxable income and accounting income is accounted for at the current rate of tax / substant -ively enacted tax rates as on the Balance Sheet date to the extent that the timing differences are expected to crystallize.

Deferred Tax Assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, Deferred Tax Assets are recognized only ifthere is virtual certainty supported by convincing evidence that such deferred tax assets will be realised.

Deferred Tax Assets are reviewed for the appropriateness of their Lpective carrying values at each Balance Sheet date.

j.Fringe Benefits Tax:

Fringe Benefits Tax is calculated in accordance with the provisions of the Income TaxAct, 1961.

k. Leases:

In case of assets taken on operating leases, lease rentals are charged to the profit and loss account in accordance with Accounting Standard 19 (AS 19) - Leases as notified underthe Companies (Accounting Standards) Rules, 2006, as amended.

l. Foreign Currency Transactions:

As stipulated in Accounting Standard 11, The Effects of Changes in Foreign Exchange Rates, notified underthe Companies (Accounting Standards) Rules, 2006, as amended, foreign currency operations of the Company are classified as (a) Integral Operations and (b) Non Integral Operations Overse as subsidiaries are treated as Non Integral Operations.

i. Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency at the date of the transaction to the foreign currency amount.

ii. Conversion

Foreign currency monetary items are converted to reporting currency using the closing rate. Non monetary items denominated in a foreign currency which are carried at historical cost are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or any other similar valuation denominated inaforeign currency are reported using the exchange rates that existed when the values were determined.

iii. Exchange Differences

Exchange differences arising on the settlement of monetary items or on reporting companys monetary items at rates different from those at which they were initially recorded, are recognized as income or expense in the year in which they arise except those arising from investments in non- integral operations.

Exchange differences arising on monetary items that in substance forms part of the Companys net investment in a non-integral foreign operation are accumulated in a foreign currency translation reserve in the balance sheet.

m.Employee Benefits:

The Companys contribution to Provident Fund and Employee State Insurance Schemes is charged to the profit and loss account. The Company has unfunded defined benefit plans namely compensated absences and gratuity for its employees, the liability for which is determined on the basis of actuarial valuation, conducted semi-annually, by an independent actuary in accordance with Accounting Standard 15 (Revised 2005) - Employee Benefits, notified underthe Companies (Accounting Standards) Rules, 2006, as amended.

Actuarial gains and losses are recognized in profit and loss account as income or expenses.

n.Deferred Employee Stock Compensation Costs:

Deferred EmployeeStock Compensation Costsare recognized inaccordance with the Guidance Note on Accounting for Employee Share Based Payments issued by the Institute of Chartered Accountants of India, which establishes financial accounting and reporting principles for employee share based payment plans. Employee stock compensation costs are measured based on the estimated intrinsic or fair value(as elected by the Co The compens ation expense is a mortized over the vesting period of the options.

o. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized only when there is a present obligation as a result of past events.and when are liable estimate of the amount of obligation can be made. Contingent liability is disclosed for:

i.Possible obligations which will be confirmed only by future events not wholly within the control of the Company or,

ii. Present obligations arising from past events when or are liable estimate of the amount of the obligation cannot be made.

Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

p. Share Issue Expenses:

Share Issue Expenses are adjusted against Securities Premium Account to the extent of balance available and thereafter, the balance portion is charged off to the profit and loss account,as incurred.

q. Earnings Per Share:

Basic Earnings per Share is computed using the weighted a verage number of equity shares outstanding during the year.Diluted Earnings per Share is computed using the weighted a ver age number of equity and dilutive potential equity shares outstanding during

r. Preliminary Expenses:

Preliminary Expenses are adjusted against Securities Premium Account (net of tax) to the extent of balance available and thereafter, the balance portion is charged off to the profitand loss account, as incurred.