Accounting Policies of Manjeera Constructions Ltd. Company

Mar 31, 2018

1 Significant accounting policies:

1.1 Statement of compliance:

These financial statements have been prepared in accordance with Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) Amendment Rules, 2016 and Companies (Indian Accounting Standards) Amendment Rules, 2017 as applicable.

Up to the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the first Ind AS financial statements and the date of transition to Ind AS is April 1, 2016. Reconciliations and description of the effect of the transition to Ind AS from Indian GAAP is given in Note 41.

2.2 Basis of preparation and presentation:

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, Companies (Indian Accounting Standards) Amendment Rules, 2016 and companies (Indian Accounting Standards) Amendment Rules, 2017 Historical cost is generally based on the fair value of the consideration given in exchange for goods and service.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and / or disclosure purposes in these financial statements is determined on such a basis, except leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as a net realisable value in Ind AS 2 or value in use in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

- Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

- Level 2 inputs are other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

- Level 3 inputs are unobservable inputs for the asset or liability.

2.3 Use of estimates:

The preparation of financial statements is in conformity with generally accepted Indian Accounting Standards (Ind AS) principles which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon managements''s best knowledge of current events and actions, actual results could differ from these estimates.

2.4 Standards not yet effective and have not been adopted early by the Company Ind AS 115 - Revenue from contracts with customers

Ministry of Corporate Affairs (MCA) has notified Ind AS 115 - Revenue from contracts with customer, mandatorily applicable from April 1, 2018. The standard requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is evaluating the requirements of the new standard and the effect on the financial statements is being evaluated.

2.5 Current Versus Non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

i) An asset is treated as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

ii) All other assets are classified as non-current.

iii)A liability is classified as current when:

- It is expected to be settled in normal operating cycle.

- It is held primarily for the purpose of trading.

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

iv All other liabilities are classified as non-current.

v) Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.6 Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the collectability is reasonably assured.

2.6.1 Real estate sales

Revenue from real estate projects including revenue from sale of undivided share of land is recognized upon transfer of all significant risks and rewards of ownership of such real estate or property, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/agreements, where the Company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards, revenue in such cases is recognized by applying the percentage of completion method, only if the following thresholds have been met:

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

- the expenditure incurred on construction and development costs (excluding land cost) is not less than 25% of the total estimated construction and development costs;

- atleast 25% of the saleable project area is secured by the contracts/agreements with the buyer; and

- atleast 10% of the contracts/agreements value are realized at the reporting date in respect of such contracts/agreements.

When the outcome of a real estate project can be estimated reliably and the conditions above are satisfied, project revenue (including from sale of undivided share of land) and project costs associated with the real estate project are recognised as revenue and expense by reference to the stage of completion of the project activity at the reporting date arrived at with reference to contract costs incurred for work performed up to the reporting date bearing to the estimated total contract costs (including land costs).

2.6.2 Interest income

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

2.6.3 On Construction Contracts (Undertaken as Contractors)

The Company follows percentage completions methods for acounting of Constructions Contracts undertaken

2.6.4 Windmill energy sales are accounted on sales accured

2.6.5 Price escalation is carried out in the year of settlement of claims/ bills.

2.6.6 Dividend income is accounted when the right to receive dividend is established.

2.6.7 Rental income

Rental income from leases with scheduled rent increases, incentives, and other rent adjustments is recognized on a straight-line basis over the respective lease term. Amounts recognized as income in the current year and expected to be received in later years is disclosed as “Accrued rental income”. Amounts received in the current year but recognized as income in future years, are disclosed as “Unearned rental income”. Recognition of rental income is commenced from the date determined based on terms of lease agreements.

2.7 Inventories:

Inventory comprises properties under development

Properties under development consists of cost of land, land development expenses, construction cost, interest and financial charges and other expenses and is valued at lower of cost and net realizable value.

2.8 Employee Benefits:

Employee benefits include provident fund, gratuity fund and compensated absences.

2.8.1 Provident Fund

Retirement benefit in the form of a provident fund is a defined contribution scheme and contributions are charged to the Statement of Profit and Loss of the Year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective authorities.

2.8.2 Gratuity

Gratuity is a post - employment defined benefit obligation

Liability on account of gratuity is determined using the projected unit credit method, with actuarial valuations being carried out at each balance sheet date and charged to Statement of Profit and Loss. Actuarial gains and losses are recognized in the Statement of Profit and Loss - Other Comprehensive Income, in the period in which such gains or losses arises.

2.8.3 Compensated Absences

Accumulated leave, which is expected to be utilized within the next twelve months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year- end. Actuarial gains and losses are immediately taken to the Statement of Profit and Loss.

2.9 Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets that necessarily takes a substantial period of time to get ready for their intended use are capitalized as part of the cost of such assets. Interest income earned on the temporary investment of specific borrowings pending its expenditure on qualifying assets is deducted from the costs of qualifying assets. Other borrowing costs are recognised as an expense, in the period in which they are incurred.

2.10 Taxation

Income tax expense represents sum of the tax currently payable and deferred tax

2.10.1 Current Tax: Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India.

2.10.2 Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

2.10.3 Minimum alternative tax

Minimum Alternative Tax (MAT) credit 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 the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the ICAI, 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 there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

2.10.4 Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

2.11 Property, plant and equiptment:

Property, plant and equipment are carried at cost of acqusition less accumulated depreciation and impairment losses, if any. The cost of Property, plant and equipment comprises of purchase price, applicable duties and taxes, any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets, upto the date the asset is ready for its intended use.“The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is required to be included in the cost of the respective item of property plant and equipment” and “Cost of major inspections is recognised in the carrying amount of property, plant and equipment as a replacement, if recognition criteria are satisfied and any remaining carrying amount of the cost of previous inspection is derecognised”

Property, Plant and equipment retired from active use and held for sale are stated at the lower of their net book value and net realizable value and are disclosed separately.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipement is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

2.12 Investment Property:

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured in accordance with the Ind AS16''s requirement for cost model.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no further economic benefits expected from disposal. Any gain or loss arising on derecognition of the property is included in profit or loss in the period in which the property is derecognised.

2.13 Depreciation and Amortisation:

2.13.1 Depreciable amount for assets is the cost of an asset, or other amount substituted for cost less its estimated residual value. Depreciation on Property, Plant and equipment and Investment Property has been provided on the straight line method as per the useful life prescribed in Schedule II to the Companies Act, 2013

2.13.2 Intangible assets acquired separately are measured on initial recognition cost and are amortized on Written Down Value Method based on the estimated useful economic life.

The amortized period and amortization method are reviewed at each financial year end.

2.14 Impairment of Assets:

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the statement of profit and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

2.15 Foreign currency transactions and translation Initial recognition

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

Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or 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 the settlement of monetary items or on the reporting of monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as gains or losses in the year in which they arise.

2.16 Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprise of cash at bank and on hand and include short term investments with an original maturity of three months or less.

2.17 Segment reporting Identification of segments

The Company is primarily engaged in the business of real estate development which as per Ind AS 108 on ''Operating Segments'' is considered to be the only reportable business segment. The Company is operating in India which is considered as single geographical segment.

2.18 Earnings Per Share

Basic earnings per equity share is computed by dividing the net profit for the year attributable to the Equity Shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit for the year, adjusted for the effects of dilutive potential equity shares, attributable to the Equity Shareholders by the weighted average number of the equity shares and dilutive potential equity shares outstanding during the year except where the results are anti-dilutive.

2.19 Provisions, Contingent Liabilities and Contingent Assets:

The Company recognises provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent assets are disclosed in the financial statements when flow of economic benefit is probable.

2.20 Financial instruments:

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

2.21.1 Financial assets

Financial asset is

1. Cash / Equity Instrument of another Entity,

2. Contractual right to -

a) receive Cash / another Financial Asset from another Entity, or

b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially favourable to the Entity.

2.21.1.a. Subsequent measurement of the financial assets

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Further, in case where the company has made an irrevocable selection based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(iv) The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in statement of profit or loss.

2.21.2 Financial liabilites

Financial liability is Contractual Obligation to:

a) deliver Cash or another Financial Asset to another Entity, or

b) exchange Financial Assets or Financial Liabilities with another Entity under conditions that are potentially unfavourable to the Entity.

2.21.2.a Subsequent measurement of the financial liabilites

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate the fair value due to the short maturity of these instruments.

2.21.3 Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the Company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.21.4 Fair value of financial instruments

In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each reporting date. The methods used to determine fair value include discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing fair value result in general approximation of value, and such value may or may not be realized.

2.21.5 Fair value measurement

The Company measures certain financial instruments at fair value at each reporting date. Fair value is the price that would be received on sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

a. In the principal market for the asset or liability, or

b. In the absence of principal market, in the most advantageous market for the asset or liability.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

2.22 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.

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.

2.23 Critical judgements in applying accounting policies: The following are the critical judgements, apart from those involving estimations, that the directors have made in the process of applying the Company''s accounting policies and that have the most significant effect on the amounts recognised in the financial statement.

Key sources of estimation uncertainty: The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2.24 Exceptional Items:

Exceptional Items represents the nature of transactions which are not in recurring nature during the ordinary course of business but lead to increase / decrease in profit / loss for the year.

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Mar 31, 2016

1. Corporate Information

Manjeera Constructions Limited is mainly engaged in property development, civil construction contracts and infrastructure projects development.

2. SIGNIFICANT ACCOUNTING POLICIES

A. 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 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 except to the extent disclosed.

B. Use of estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities and the reported amount of income and expenses during the year. Difference between the actual results and estimates are recognized in the period in which the results are known/materialize.

C. Fixed assets Tangible Assets

a. Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its intended use.

b. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

c. Projects under which are assets are not ready for their intended use are shown as Capital work-in-progress. Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition.

D. Depreciation and amortization

(i) Tangible assets

Depreciation has been provided on the useful life of its tangible assets as per the useful life prescribed in Schedule II to the Companies Act, 2013.

(ii) Intangible assets

Intangibles which were acquired under an agreement are amortised on a straight line basis over period of five years from the date of the agreement.

E. Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F. Investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

G. Inventories

Properties under development represent costs incurred in respect of unsold area of properties under development and costs incurred on projects/ portion of projects when revenue is yet to be recognized. Such costs include cost of land, development rights, direct materials, labour, borrowing costs and an appropriate portion of construction overheads based on normal operating capacity. Borrowing costs directly attributable

to properties under development which necessarily take a substantial period of time to get ready for sale are considered. Any expected loss on real estate projects is recognized as an expense when it is certain that the total cost will exceed the total revenue.

Building materials and consumables are valued at cost. Cost of building materials and consumables comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location and condition.

H. Foreign currency transactions

i. Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

ii. Monetary items denominated in foreign currencies at the year-end are restated at year end rates.

iii. Non-monetary foreign currency items are carried at cost.

iv. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

I. Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the collectability is reasonably assured.

i) A) Projects where revenues are recognized before 1 April 2012:

Revenue from sale of real estate under development is recognized upon transfer of all significant risks and rewards of ownership of such real estate, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/agreements, except for contracts where the Company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards in accordance with erstwhile Guidance Note on Recognition of Revenue by Real Estate Developers issued by the Institute of Chartered Accountants of India (ICAI) in 2006. In such cases, the revenue is recognized on percentage of completion method, when the stage of completion of each project reaches a reasonable level of progress. Revenue is recognized in proportion to the contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. All the projects of the Company have been commenced prior to 1 April 2012 and there have been no projects during the year where revenue has been recognized for the first time after 1 April 2012.

B) Projects where revenues are recognized for the first time on or after 1 April 2012

Revenue from real estate projects including revenue from sale of undivided share of land is recognized upon transfer of all significant risks and rewards of ownership of such real estate/property, as per the terms of the contracts entered into with buyers, which generally coincides with the firming of the sales contracts/ agreements. Where the Company still has obligations to perform substantial acts even after the transfer of all significant risks and rewards, revenue in such cases is recognized by applying the percentage of completion method only if the following thresholds have been met:

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

- the expenditure incurred on construction and development costs (excluding land cost) is not less than 25% of the total estimated construction and development costs;

- at least 25% of the saleable project area is secured by the contracts/agreements with the buyer; and

- at least 10% of the contracts/agreements value are realized at the reporting date in respect of such contracts/agreements.

When the outcome of a real estate project can be estimated reliably and the conditions above are satisfied, project revenue (including from sale of undivided share of land) and project costs associated with the real estate project are recognized as revenue and expense by reference to the stage of completion of the project activity at the reporting date arrived at with reference to contract costs incurred for work performed up to the reporting date bearing to the estimated total contract costs (including land costs).

ii. On construction contracts (undertaken as contractors)

The Company follows percentage completion method for accounting of Construction contracts undertaken.

iii. Price escalation is carried out in the year of settlement of claims/bills.

iv. Rent Receipts are recognized on accrual basis.

v. Interest on deployment of funds is recognized using the time-proportion method, based on interest rates implicit in the transaction.

vi. Property management services are recognized on rendering services and billing thereof.

vii. Dividend income is accounted when the right to receive dividend is established.

J. Employee benefits

i. Regular monthly contribution to Employees'' Provident Fund Scheme which is in the nature of defined contribution plan is charged against revenue when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the fund.

ii. The Company provides for gratuity, a defined benefit plan covering eligible employees. In accordance with the Payment of Gratuity Act,1972, the Gratuity provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the projected unit credit method, which recognizes each year of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation is measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation is based on the market yield on government securities as at the balance sheet date. Actuarial gains/losses are recognized immediately in the statement of profit and loss.

The Liability with respect to the Gratuity Plan is determined based on actuarial valuation done by an independent actuary at the year end and any differential between the fund amount as per the insurer and actuarial valuation is charged to the statement of profit and loss.

iii. Earned Leave encashment liability which is in the nature of defined benefit obligation are provided for on actuarial basis, based on independent actuarial valuation on Projected Unit Credit Method on the date of the financial statements as per the requirements of Accounting Standard-15 on "Employee Benefits". Actuarial gains/losses are recognized immediately in the Statement of Profit and Loss.

K. Taxes on income

Tax expense comprises current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes 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 rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized 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 realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses the unrecognized deferred tax assets. It recognizes the unrecognized deferred tax assets to the extent that it is reasonably certain that sufficient future taxable income will be available against which such deferred tax assets can be realized.

L. Provisions, contingent liabilities and contingent assets

Provision recognized in the accounts when there is a present obligation as a result of past event(s), and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

M. 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 reasonable certainty in availing / utilizing the credits.

N. Earnings per share

''Basic'' earnings per share are calculated by dividing the net profit or loss for the period attributable to the shareholders by the weighted average number of the equity shares outstanding at the year end.

''Diluted'' earnings per share using the weighted average numbers of equity shares and dilutive potential equity shares outstanding at the year end, except when the result would be anti-dilutive.

O. 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.

P. Barter transactions

Barter transactions are recognized at the fair value of consideration receivable or payable. When the fair value of the transactions cannot be measured reliably, the revenue/expense is measured at the fair value of the goods/services provided/received adjusted by the amount of cash or cash equivalent transferred.

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Mar 31, 2014

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 (GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of Companies Act, 1956. The financial statements have been prepared on accrual basis under historical convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Use of estimates

The Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual results and the estimates are recognized in the periods in which the results are known / materialise.

3. Fixed assets

Fixed assets are carried at cost of acquisition less accumulated depreciation and impairment losses, if any.

4. Depreciation and amortisation

Depreciation on fixed assets has been provided on written down value method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Borrowing costs

a. Borrowing costs specifically for the purpose of acquisition and construction of qualifying assets that are directly attributable to the qualifying asset, is capitalized as part of the cost of the asset.

b. Borrowing costs not attributable to the acquisition of any qualifying asset are recognised as expense in the period in which they are incurred.

6. Impairment of Assets

The carrying value of assets, other than inventory, is reviewed at each balance sheet date for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

7. Investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

8. Inventories

Properties under development represent costs incurred in respect of unsold area of properties under development and costs incurred on projects/ portion of projects when revenue is yet to be recognised. Such costs include cost of land, development rights, direct materials, labour, borrowing costs and an appropriate portion of construction overheads based on normal operating capacity. Borrowing costs directly attributable to properties under development which necessarily take a substantial period of time to get ready sale. Any expected loss on real estate projects is recognised as an expense when it is certain that the total cost will exceed the total revenue.

Building materials and consumables are valued at cost. Cost of building materials and consumables comprises of all costs of purchase and other costs incurred in bringing the inventories to their present location and condition.

9. Foreign currency transactions

Foreign currency transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference arising on foreign currency transactions settled during the year is recognized in the profit and loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forwarded exchange contracts are translated at year-end rates. The resultant exchange difference is recognized in the profit and loss account. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.

10. Revenue recognition

i. On property and infrastructure development projects

a. Recognized on the ''Percentage of Completion Method'' of accounting. Revenue comprises the aggregate amounts of sale price in terms of the agreements entered into and is recognized on the basis of percentage of actual costs incurred thereon, including proportionate land cost and total estimated cost of the projects under execution, subject to such actual costs being 30 percent or more of the total estimated cost.

b. Where aggregate of the payment received provide insufficient evidence of buyers commitment to make the complete payment, revenue is recognized only to the extent of realization.

c. The estimates of the saleable areas and costs are reviewed periodically by the management and any effect of changes in 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.

ii. On construction contracts (undertaken as contractors) The Company follows percentage completion method for accounting of construction contracts undertaken.

iii. Price escalation is carried out in the year of settlement of claims/bills

iv. Rent receipts are recognised on accrual basis.

v. Interest on deployment of funds is recognised using the time-proportion method, based on interest rates implicit in the transaction.

vi. Property management services are recognised on rendering services and billing thereof.

vii. Dividend income is accounted when the right to receive dividend is established.

11. Revenue receipts on joint venture contracts

In work sharing joint venture agreements revenues, expenses, assets and liabilities are accounted in the Company''s books to the extent work is executed by the Company.

12. Income tax

i. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax act, 1961.

ii. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance sheet when it is probable that future economic benefit associated with it will flow to the Company.

iii. Deferred tax is recognized on timing differences being the differences between Taxable income and 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 the tax laws enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

13. Employee benefits Defined contribution plans

The Company makes specified monthly contribution towards employee provident fund to Government administered provident fund scheme, which is a defined contribution scheme. The Company''s contribution is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

Defined benefits plan

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. Gratuity is a non-funded liability. The liability recognised in the Balance Sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the Balance Sheet date. The calculation of the Company''s obligation under the plan is performed annually by qualified independent actuary using the projected unit credit method. Actuarial gains and losses arising during the year are immediately recognised in the statement of profit and loss.

Compensated absences

Compensated absences, is a long-term employee benefit, and accrued based on an actuarial valuation done as per projected unit credit method as at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses arising during the year are immediately recognised in the statement of profit and loss

14. Earning Per Share (EPS)

In arriving at the EPS, the Company''s net profit after tax, computed in terms of the GAAP, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as ''Basic EPS''. To arrive at the diluted EPS the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares. The date/s of issue of such potential shares determine the amount of the weighted average number potential equity shares.

15. Prior period items

Prior period items are included in the respective heads of account and material items are disclosed by way of notes to accounts.

16. Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of past event that probably requires an out flow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingency liability as made when there is a possible obligation or a present obligation that may, but probability will not, require an out flow of resources. Where there is possible obligation or a present obligation in respect of which the likely hood of outflow of resources is remote, no provision or disclosure is made.

Provision for onerous contracts, i.e., contracts where the expected unavoidable costs of meeting the obligation under the contact exceeds the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on reliable estimate of such obligation.

17. Leases

Operating lease payments are recognized as an expense in the profit and loss account on the basis of lease agreement.

18. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before 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 available information.

19. 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 uncertainty in availing / utilizing the credits.

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Mar 31, 2013

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 (GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of Companies Act, 1956. The financial statements have been prepared on accrual basis under historical convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2. Use of estimates

The Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual results and the estimates are recognized in the periods in which the results are known / materialise.

3. Fixed assets

Fixed assets are carried at cost of acquisition less accumulated depreciation and impairment losses, if any.

4. Depreciation and amortisation

Depreciation on fixed assets has been provided on written down value method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Borrowing costs

a. Borrowing costs specifically for the purpose of acquisition and construction of qualifying assets that are directly attributable to the qualifying asset, is capitalized as part of the cost of the asset.

a. Borrowing costs not attributable to the acquisition of any qualifying asset are recognised as expense in the period in which they are incurred.

6. impairment of Assets

The carrying value of assets, other than inventory, is reviewed at each balance sheet date for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

7. investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

8. inventories

Inventories are valued at the lower of cost and the net realisable value after providing other losses, wherever considered necessary. Property and infrastructure development projects under development are valued at cost. Cost includes direct development expenditure, borrowing cost, appropriate overheads and all charges in bringing the inventory to the point of sale.

9. Foreign currency transactions

Foreign currency transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference arising on foreign currency transactions settled during the year is recognized in the profit and loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forwarded exchange contracts are translated at year-end rates. The resultant exchange difference is recognized in the profit and loss account. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.

10. Revenue recognition

i. on property and infrastructure development projects

a. Recognized on the ''Percentage of Completion Method'' of accounting. Revenue Comprises the aggregate amounts of sale price in terms of the agreements entered Into and is recognized on the basis of percentage of actual costs incurred thereon, Including proportionate land cost and total estimated cost of the projects under Execution, subject to such actual costs being 30 percent or more of the total estimated cost.

b. Where aggregate of the payment received provide insufficient evidence of buyers commitment to make the complete payment, revenue is recognized only to the extent of realization.

b. The estimates of the saleable areas and costs are reviewed periodically by the management and any effect of changes in 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.

ii. On construction contracts (undertaken as contractors) The Company follows percentage completion method for accounting of Construction contracts undertaken.

iii. Price escalation is carried out in the year of settlement of claims/bills

iv. Rent Receipts are recognised on accrual basis.

v. Interest on deployment of funds is recognised using the time-proportion method, based on interest rates implicit in the transaction.

vi. Property management services are recognised on rendering services and billing thereof.

vii. Dividend income is accounted when the right to receive dividend is established.

11. Revenue receipts on joint venture contracts

In work sharing joint venture agreements revenues, expenses, assets and liabilities are accounted in the Company''s books to the extent work is executed by the Company.

12. income tax

i. Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax act, 1961.

ii. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance sheet when it is probable that future economic benefit associated with it will flow to the Company.

iii. Deferred tax is recognized on timing differences being the differences between Taxable income and 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 the tax laws enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets.

13. Employee benefits

a. Short Term Employee Benefits:

All employees'' benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service.

b. Long Term and Post-employment benefits:

1. Defined contribution plans: Defined contribution plans are post employment benefit plans under which the Company pays fixed contributions into separate entities (funds) or to financial institutions or state managed benefit schemes. The Company contributions to defined contribution plans are recognized in the Statement of Profit and Loss in the financial year to which they relate. The Company makes specified monthly contributions towards Employee Provident Fund Scheme and Employee State Insurance Scheme.

2. Defined Benefit obligation: Gratuity liability is defined obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit method made at the end of each financial year.

14. Earning Per Share (EPS)

In arriving at the EPS, the Company''s net profit after tax, computed in terms of the GAAP, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as ''Basic EPS''. To arrive at the diluted EPS the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares. The date/s of issue of such potential shares determine the amount of the weighted average number potential equity shares.

15. Prior period items

Prior period items are included in the respective heads of account and material items are disclosed by way of notes to accounts.

16. Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of past event that probably requires an out flow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingency liability as made when there is a possible obligation or a present obligation that may, but probability will not, require an out flow of resources. Where there is possible obligation or a present obligation in respect of which the likely hood of outflow of resources is remote, no provision or disclosure is made.

Provision for onerous contracts, i.e., contracts where the expected unavoidable costs of meeting the obligation under the contact exceeds the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on reliable estimate of such obligation.

17. Leases

Operating lease payments are recognized as an expense in the profit and loss account on the basis of lease agreement.

18. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before 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 available information.

19. 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 uncertainty in availing / utilizing the credits.

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Mar 31, 2012

1.1 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 (GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of Companies Act, 1956. The financial statements have been prepared on accrual basis under historical convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of Estimates

The Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual results and the estimates are recognized in the periods in which the results are known / materialise.

1.3 Fixed Assets

Fixed assets are carried at cost of acquisition less accumulated depreciation and impairment losses, if any.

1.4 Depreciation and Amortisation

Depreciation on fixed assets has been provided on written down value method as per the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

1.5 Borrowing Costs

a) Borrowing costs specifically for the purpose of acquisition and construction of qualifying assets that are directly attributable to the qualifying asset, is capitalized as part of the cost of the asset.

B) Borrowing costs not attributable to the acquisition of any qualifying asset are recognised as expense in the period in which they are incurred.

1.6 Impairment of Assets

The carrying value of assets, other than inventory, is reviewed at each balance sheet date for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

1.7 Investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

1.8 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing other losses, wherever considered necessary. Property and infrastructure development projects under development are valued at cost. Cost includes direct development expenditure, borrowing cost, appropriate overheads and all charges in bringing the inventory to the point of sale.

1.9 Foreign Currency Transactions

Foreign currency transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference arising on foreign currency transactions settled during the year is recognized in the profit and loss account.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forwarded exchange contracts are translated at year-end rates. The resultant exchange difference is recognized in the profit and loss account. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.

1.10 Revenue Recognition

i. On property and infrastructure development projects

a) Recognized on the 'Percentage of Completion Method' of accounting. Revenue comprises the aggregate amounts of sale price in terms of the agreements entered into and is recognized on the basis of percentage of actual costs incurred thereon, including proportionate land cost and total estimated cost of the projects under execution, subject to such actual costs being 30 percent or more of the total estimated cost.

b) Where aggregate of the payment received provide insufficient evidence of buyers commitment to make the complete payment, revenue is recognized only to the extent of realization.

c) The estimates of the saleable areas and costs are reviewed periodically by the management and any effect of changes in 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.

ii. On construction contracts (undertaken as contractors) the Company follows percentage completion method for accounting of construction contracts undertaken.

iii. Price escalation is carried out in the year of settlement of claims/bills

iv. Rent Receipts are recognized on accrual basis.

v. Interest on deployment of funds is recognised using the time-proportion method, based on interest rates implicit in the transaction.

vi. Property management services are recognised on rendering services and billing thereof.

vii. Dividend income is accounted when the right to receive dividend is established.

1.11 Revenue Receipts on Joint Venture Contracts

In work sharing joint venture agreements revenues, expenses, assets and liabilities are accounted in the Company's books to the extent work is executed by the Company.

1.12 Income Tax

a) Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

b) Minium Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly,

MAT is recognized as an asset in the Balance sheet when it is probable that future economic benefit associated with it will flow to the Company.

c) Deferred tax is recognized on timing differences being the differences between taxable income and 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 the tax laws enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized only if there is virtual certainity that there will be sufficient future taxable income available to realize such assets.

1.13 Employee Benefits

i. Short Term Employee Benefits:

All employees' benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service.

ii. Long Term and Post-employment benefits:

a) Defined Contribution Plans

Defined contribution plans are post employment benefit plans under which the Company pays fixed contributions into separate entities (funds) or to financial institutions or state managed benefit schemes. The Company contributions to defined contribution plans are recognized in the Statement of Profit and Loss in the financial year to which they relate. The Company makes specified monthly contributions towards Employee Provident Fund Scheme and Employee State Insurance Scheme.

b) Defined Benefit Obligation

Gratuity liability is defined obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit method made at the end of each financial year.

1.14 Earning Per Share (EPS)

In arriving at the EPS, the Company's net profit after tax, computed in terms of the GAAP, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as 'Basic EPS'. To arrive at the diluted EPS the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares. The date/s of issue of such potential shares determine the amount of the weighted average number potential equity shares.

1.15 Prior Period Items

Prior period items are included in the respective heads of account and material items are disclosed by way of notes to accounts.

1.16 Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of past event that probably requires an out flow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingency liability as made when there is a possible obligation or a present obligation that may, but probability will not, require an outflow of resources. Where there is possible obligation or a present obligation in respect of which the likely hood of outflow of resources is remote, no provision or disclosure is made.

Provision for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligation under the contact exceeds the economic benefits expected to be received under it, are recognized when it is probable that an outflow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on reliable estimate of such obligation.

1.17 Leases

Operating lease payments are recognized as an expense in the profit and loss account on the basis of lease agreement.

1.18 Cash Flow Statement

Cash flows are reported ausing the indirect method, whereby profit / (loss) before 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 available information.

1.19 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 uncertainty in availing / utilizing the credits.

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Mar 31, 2011

1. Basis for preparation of financial statements

The financial statements have been prepared under historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) in conformity with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of Companies Act, 1956 as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis and provision is made for all known losses and liabilities.

2. Use of Accounting estimates

Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statements and amounts of income and expenses during the year of account. Management periodically assesses whether there is an indication that an asset may be impaired and makes provision in the accounts for any impairment losses estimated. Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results could differ from those estimates.

3. Fixed assets

Fixed assets are stated at cost of acquisition less accumulated depreciation thereon.

4. Depreciation

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Borrowing costs

a. Borrowing costs specifcally for the purpose of acquisition and construction of a qualifying asset, that are directly attributable to the qualifying asset, is capitalized as part of the cost of the asset.

b. Borrowing costs not attributable to the acquisition of any qualifying asset are recognised as expense in the period in which they are incurred.

6. Impairment of Assets

The carrying amount of assets, other than inventory is reviewed at each balance sheet date for any indication of impairment and if any, the recoverable amount of assets is estimated. Impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

7. Investments

Long-term investments are stated and carried at cost less provision for permanent diminution, if any, in value of such investments.

8. Inventories

Inventories are valued at lower of cost or net realisable value. Properties under development are valued at cost. Cost includes all direct development expenditure, borrowing cost and appropriate overheads.

9. Miscellaneous expenditure

Preliminary and Rights issue expenses are amortised over a period of five years.

10. Foreign currency transactions

Foreign currency transactions are recorded using the exchange rates prevailing on the date of the respective transactions. Exchange difference arising on foreign currency transactions settled during the year are recognized in the profit and loss account

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date, not covered by forwarded exchange contracts are translated at year-end rates. The resultant exchange difference is recognized in the profit and loss account. Non-monetary assets are recorded at the rates prevailing on the date of the transaction.

11. Revenue recognition

i) (a) On property development projects

i. Recognised on the "Percentage of Completion Method" of accounting. Revenue comprises the aggregate amounts of sale price in terms of the agreements entered into and is recognized on the basis of percentage of actual costs incurred thereon, including proportionate land cost and total estimated cost of the projects under execution, subject to such actual costs being 20 percent or more of the total estimated cost.

ii. Where aggregate of the payment received provide insuffcient evidence of buyers commitment to make the complete payment, revenue is recognized only to the extent of realization.

iii. The estimates of the saleable areas and costs are reviewed periodically by the management and any effect of changes in 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.

(b) On construction contracts (undertaken as contractors)

The Company follows percentage completion method for accounting of construction contracts undertaken.

ii) Rent Receipts are recognised on accrual basis.

iii) Interest on deployment of funds is recognised using the time-proportion method, based on interest rates implicit in the transaction.

iv) Property management services are recognised on rendering services and billing thereof.

v) Dividend income is accounted when the right to receive dividend is established.

12. Revenue receipts on joint venture contracts

In work sharing joint venture agreements revenues, expenses, assets and liabilities are accounted in the Company's books to the extent work is executed by the Company.

13. Income tax

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

b) Deferred tax is recognized, subject to the consideration of prudence, on timing difference being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

14. Employee benefits

A. Short Term Employee benefits

All employees' benefits payable wholly within twelve months of rendering the service are classifed as short term employee benefits and they are recognized in the period in which the employee renders the related service.

B. Long Term and Post-employment benefits

a) Defned contribution plans

Defned contribution plans are post employment benefit plans under which the Company pays fixed contributions into separate entities (funds) or to financial institutions or state managed benefit schemes. The Company contributions to defned contribution plans are recognized in the profit and Loss Account in the financial year to which they relate.

The Company makes specifed monthly contributions towards Employee Provident Fund Scheme and Employee State Insurance Scheme.

b) Defned benefit obligation

Gratuity liability are defned obligation and is provided for on the basis of an actuarial valuation on Projected Unit Credit method made at the end of each financial year.

15. Earning Per Share (EPS)

In arriving at the EPS, the Company's net profit after tax, computed in terms of the GAAP, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as 'Basic EPS'. To arrive at the diluted EPS the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares. The date/s of issue of such potential shares determine the amount of the weighted average number potential equity shares.

16. Prior period items

Prior period items are included in the respective heads of account and material items are disclosed by way of notes to accounts.

17. Provisions and contingent liabilities

The Company creates a provision when there is a present obligation as a result of past event that probably requires an out fow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingency liability as made when there is a possible obligation or a present obligation that may, but probability will not, require an out fow of resources. Where there is possible obligation or a present obligation in respect of which the likely hood of outfow of resources is remote, no provision or disclosure is made.

Provision for onerous contracts, i.e. contracts where the expected unavoidable costs of meeting the obligation under the contact exceeds the economic benefits expected to be received under it, are recognized when it is probable that an outfow of resources embodying economic benefits will be required to settle a present obligation as a result of an obligating event, based on reliable estimate of such obligation.

18. Leases

Operating lease payments are recognized as an expense in the profit and loss account on the basis of lease agreement.

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Mar 31, 2010

1. Basis for preparation of financial statements:

The financial statements have been prepared under historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) in conformity with Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of Companies Act, 1956 as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis and provision is made for all known losses and liabilities.

2. Use of Accounting estimates

Preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the reporting date of the financial statements and amounts of income and expenses during the year of account. Management periodically assesses whether there is an indication that an asset may be impaired and makes provision in the accounts for any impairment losses estimated. Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results could differ from those estimates.

3. Fixed assets

Fixed assets are stated at cost of acquisition less accumulated depreciation thereon.

4. Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

5. Borrowing costs:

a) Borrowing costs specifically for the purpose of acquisition and construction of a qualifying asset, that are directly attributable to the qualifying asset, is capitalized as part of the cost of the asset.

b) Borrowing costs not attributable to the acquisition of any qualifying asset are recognised as expense in the period in which they are incurred.

6. Impairment of Assets

The carrying amount of assets, other than inventory is reviewed at each balance sheet date for any indication of impairment and if any, the recoverable amount of assets is estimated. Impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

7. Investments

Long-term investments are stated and carried at cost less provision for permanent diminution if any, in value of such investments.

8. Inventories:

Inventories are valued at lower of cost or net realisable value. Properties under development are valued at cost. Cost includes all direct development expenditure, borrowing cost and appropriate overheads.

9. Miscellaneous expenditure

Preliminary and Rights issue expenses are amortised over a period of five years.

10. Employee benefits

a) Contributions of Defined Contribution plans such as Provident fund, etc. are charged to the profit and loss account as incurred.

b) Termination benefits are recognised as and when incurred.

11. Revenue recognition

I) (a) On property development projects(own)

Income from property development is recognized upon handing over possession of space/flats to the buyers i.e. property with all significant risks and rewards of ownership are transferred to the buyer and no effective control of the property is retained by the Company and no significant uncertainty exists regarding the consideration derived for such property and it is not unreasonable to expect ultimate collection.

(b) On development projects (Development basis)

Income on development activity is recognised based on project completion method and on handing over developed property to the principals as per the terms of agreement.

(c) On construction contracts (undertaken as contractors)

The Company follows percentage completion method for accounting of construction contracts undertaken.

ii) Rent Receipts are recognised on accrual basis.

iii) Interest on deployment of funds is recognised using the time-proportion method, based on interest rates implicit in the transaction.

iv) Property management services are recognised on rendering services and billing thereof.

v) Dividend income is accounted when the right to receive dividend is established.

12. Revenue receipts on joint venture contracts

In work sharing joint venture agreements revenues, expenses, assets and liabilities are accounted in the Companys books to the extent work is executed by the Company.

13. Income tax

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

b) Deferred tax is recognized, subject to the consideration of prudence, on timing difference being differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

14. Earning Per Share (EPS)

In arriving at the EPS, the Companys net profit after tax, computed in terms of the GAAP, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived at is known as ‘Basic EPS. To arrive at the diluted EPS the net profit after tax, referred above, is divided by the weighted average number of equity shares, as computed above and the weighted average number of equity shares that could have been issued on conversion of shares having potential dilutive effect subject to the terms of issue of those potential shares. The date/s of issue of such potential shares determine the amount of the weighted average number potential equity shares.

15. Prior period items:

Prior period items are included in the respective heads of account and material items are disclosed by way of notes to accounts.

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Mar 31, 2001

1. Basis for preparation of financial statements:

The financial statements are prepared under the historical cost convention, in accordance with generally accepted accounting principles and the provisions of Companies Act, 1956, as adopted consistently by the Company. All income and expenditure having a material bearing on the financial statements are recognised on the accrual basis.

2. Revenue recognition:

Sales of flats recognised progressively based on percentage of completion method. Contract Receipts recognised based on the bills raised on the works completed on percentage of completion method. Rent Receipts recognised on accrual basis. Interest on deployment of surplus funds recognised using the time-proportion method, based on interest rates implicit in the transaction.

Property management services recognised on rendering services and billing thereof.

3. Expenditure:

Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

4. Fixed Assets:

Fixed Assets are stated at cost of acquisition less accumulated depreciation.

5. Depreciation:

Depreciation is provided on written down value method at the rates and in the manner prescribed under Schedule XIV to the Companies Act, 1956.

6. Investments:

Long term investments are stated and carried at cost.

7. Inventories:

Inventories are valued at lower of cost or net realisable value. The cost of project-in-progress, work certified and flats held for sale include direct material cost, direct labour cost and appropriate overheads.

8. Miscellaneous Expenditure:

Preliminary and Public issue expenses are being amortised over a period of ten years.

9. Retirement Benefits:

The gratuity liability is determined on the basis of actuarial valuation but not provided in the accounts.

10. Borrowing costs:

Borrowing costs not attributable to the acquisition of any qualifying asset are recognised as expense in the period in which they are incurred.

11. Pre-operative Expenditure:

Pre-operative expenditure is allocated to fixed assets relating to the concerned project in the year of commencement of the project. The amount to be capitalized is determined in accordance with the accepted accounting principles.