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Accounting Policies of Nila Infrastructures Ltd. Company

Mar 31, 2015

A) Basis of preparation of financial statements:

These financial statements have been prepared in accordance with generally accepted accounting principles in India under historical cost convention on accrual basis. Pursuant to section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects, with Accounting Standards notified under Section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

b) 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 amount of assets and liabilities and the reported income and expenses during the year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise

c) Fixed Assets

(i) Tangible Assets

Fixed assets are stated at cost of acquisition or construction (net of tax / duty credits availed if any) including any cost attributable to bringing the assets to their working condition for their intended use. Fixed assets are valued at cost less accumulated depreciation there on.

(ii) Intangible Assets

All Intangible Assets are initially measured at cost (net of tax / duty credits availed if any) and amortized so as to reflect the pattern in which the assets' economic benefits are consumed. Intangible assets are amortized on a straight-line basis (pro-rata from the date of additions)over estimated useful life of four years.

d) Depreciation

(i) Useful lives

Depreciation is being provided on a pro-rata basis on the 'Straight Line Method' over the estimated useful lives of the assets as prescribed under Schedule II to the Companies Act, 2013, till the year ended March 31, 2014, depreciation was provided in the manner and rates prescribed under Schedule XIV to the Companies Act, 1956.

The management has decided to apply the revised accounting policy prospectively from accounting periods commencing on or after April 1, 2014. The change in accounting policy did not have any material impact on financial statements of the company for the current year.

(ii) Depreciation on assets costing less than Rs. 5,000

Till year ended March 31, 2014, to comply with the requirements of Schedule XIV to the Companies Act, 1956, the company was charging 100% depreciation on assets costing less than Rs. 5,000 in the year of purchase. However, Schedule II to the Companies Act, 2013 applicable from the current year, does not recognize such practice. Hence, to comply with the requirement of Schedule II to the Companies Act, 2013, the company has changed its accounting policy for depreciations of assets costing less than Rs. 5,000. As per the revised policy, the company is depreciating such assets over their useful life as prescribed under Schedule II to the Companies Act, 2013. The management has decided to apply the revised accounting policy prospectively from accounting periods commencing on or after April 1, 2014. The change in accounting for depreciation of assets costing less than Rs. 5,000 did not have any material impact on financial statements of the company for the current year.

e) Impairment of Assets

At each Balance sheet date, the company considers whether there is any indication that an asset may be impaired. If any indication exists the recoverable amount of the asset is estimated. An impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, estimated future Cash Flows are discounted to their present value based on an appropriate discount factor.

f) Investments

Investments are classified into current investments and non-current investment. Investments are further classified as quoted and unquoted investments also. Non-current Investments are stated at cost of acquisition. If there is a decline in the value of non- current investment as on the reporting date other than of temporary in nature, such decline is debited to the statement of profit and loss as "Provision for diminution in value of Investments". Subsequent increase in the realizable value of investment will be credited to the statement of profit and loss to the extent provision made for. Current Investments, if any, are stated at cost or fair value whichever is lower and resultant decline is charged to statement of profit and loss.

g) Taxation

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that company will pay normal income tax. Accordingly, MAT is recognised as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably. The deferred tax impact resulting from timing difference between accounting and taxable profit is accounted by using tax rates and tax laws enacted or subsequently enacted as at the Balance sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

h) Revenue Recognition

(i) Construction and Development of Infrastructures Project

Income from Infrastructure project has been recognized on accrual basis. Revenue has been recognized on the basis of work done and as per the terms of the tender / contract. The company records revenue of its infrastructure projects based on running bill raised. Revenue expenditure is accounted on accrual basis.

(ii) Construction and Development of Real Estate Project

The Company records its revenue of its residential projects confirming to Accounting Standard 9 and also based on Guidance note issued by the ICAI.

The full revenue is recognized on the sale of property

when the company has transferred all significant risks and rewards of ownership to the buyer and when the company is not required to perform any substantial acts to complete the contract.

When the Company is obliged to perform any substantial acts after transfer of all significant risks and rewards of ownership on sale of property to the buyer, the revenue and cost is recognized on proportionate basis by applying the percentage completion method.

(iii) Trading (Land and Land Rights)

Income from Trading is recognized when the Company enters into agreement for sale with the buyer and all significant risks and rewards have been transferred to the buyer and there is no uncertainty regarding realisability of the sale consideration.

(iv) Lease Rental (Income)

Income from leasing of commercial complex is recognized on an accrual basis. The leasing agreements range from 11 months to 10 years generally and are usually cancellable / renewable by mutual consent on the agreed terms.

(v) Interest income is accounted on an accrual basis at contracted rates.

(vi) Dividend income is recognized when the right to receive the same is established.

(vii) Income on investments is recognized based on the terms of the investment. Income from mutual fund scheme having fixed maturity plans is accounted on declaration of dividend or on maturity of such investments.

i) Employee Benefits

Liability for employee benefits, both short and long term, for present and past services which are due as per the terms of employment are recorded in accordance with the Accounting Standard-15 "Employee Benefits" notified under section 211 (3c) of the Companies Act, 2013

(i) Gratuity and Leave Encashment liabilities are provided for on the basis of an actuarial valuation on Projected Unit Credit Method as at the reporting date.

(ii) The company's Contribution to the Provident Fund and Employee State Insurance is charged to the statement of profit and loss for the year. The company has no other obligation other than contribution payable.

j) Borrowing costs

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

k) Inventories

(i) Inventory comprises of Completed property for sale, Land, Transferable development rights

Completed property for sale, land and transferable property rights are valued at lower of cost or net realizable value. Cost includes cost of land, land development rights, acquisition of tenancy rights, materials, services, borrowing cost and other related overhead as the case may be.

In case of acquisition of land for development and construction, the rights are acquired from the owners of the land and the conveyance and registration thereof will be executed between the original owners and the ultimate purchasers as per trade practice. As a result, in the immediate period, generally, the land is not registered in the name of the company.

(ii) Raw materials and stores

Stock of raw materials and stores are valued at the cost or net realizable value whichever is less. Cost is arrived at on Weighted Average Method (WAM) basis.

(iii) Work-in-progress

Construction and Development of Infrastructure Project

Cost of work yet to be certified / billed, as it pertains to contract cost that relates to future activity on the contract, are recognized as work-in-progress provided it is probable that they will be recovered. Work-in-progress is valued at cost or net realizable value whichever is less. Cost includes direct material, labour and proportion of project overhead.

Construction and Development of Real Estate Project

Work-in-progress is valued at cost or net realizable value whichever is less. Cost includes cost of land, land development rights, materials, services, borrowing cost, acquisition of tenancy rights and other related overheads.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion and estimated cost necessary to make the sale.

l) Cash Flow Statement

Cash flow is reported using indirect method, whereby profit / (loss) before extra ordinary 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 available information.

Cash equivalents for the purpose of cash flow statements comprise cash at bank and in hand Cash equivalents are short-term balances that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

m) Earnings Per Share

The company reports basic and diluted earnings per share in accordance with Accounting Standard-20. Basic earning per equity share is calculated 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 calculated by dividing the net profit for the year, adjusted for the effects of dilutive potential equity shares, attributable to the equity shareholders by weighted average number of the equity shares and dilutive potential equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

n) Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if ;

(i) the company has a present obligation as a result of past event

(ii) a probable outflow of resources is expected to settle the obligation and

(iii) the amount of the obligation can be reliably estimated. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received. Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation

(ii) a present obligation arising from past events, when no reliable estimate is possible

(iii) a possible obligation arising from past events where the probability of outflow of resources is not remote.

Contingent assets are neither recognised, nor disclosed. Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

o) General

Accounting policies not specifically referred to are consistent with generally accepted accounting principles.


Mar 31, 2014

A) Basis of preparation of financial statements:

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

b) 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 amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable.

c) Fixed Assets:

a. Tangible Assets

Fixed assets is stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

Fixed assets are valued at cost less accumulated depreciation there on.

b. Intangible Assets

All Intangible Assets are initially measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed.

d) Depreciation:

Company has provided depreciation at the rates and in the manner laid down in Schedule XIV to the Companies

Act, 1956 as per "Straight Line Method" in respect of all the fixed assets.

e) Investments:

Investments are classified into current investments and Non-current investment. Investments are further classified as quoted and unquoted investments also.

Non-current Investments are stated at cost of acquisition. If there is decline in value of non-current investment as on reporting date other than of temporary in nature, such decline is debited to the statement of profit and loss as "Provision for diminution in value of Investments". Subsequent increase in the realizable value of investment will be credited to the statement of profit and loss to the extent provision made for.

Current Investments, if any, are stated at cost or fair value whichever is lower and resultant decline is charged to statement of profit and loss.

f) Taxation:

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that company will pay normal income tax. Accordingly, MAT is recognised as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the company and the asset can be measured reliably.

The deferred tax impact resulting from timing difference between accounting and taxable profit is accounted by using tax rates and tax laws enacted or substantially enacted as at the Balance sheet date. The Deferred Tax Asset is recognized and carried forwarded only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

g) Revenue Recognition:

(i) Infrastructures Development Income

Income from Infrastructure project has been recognized on accrual basis.

(ii) Real Estate Development

The Company records its revenue of its residential projects confirming to Accounting Standard 9 and also based on Guidance note issued by the ICAI.

The full revenue is recognized on sale of property when the company has transferred all significant risk and rewards of ownership to the buyer and when the company is not required to perform any substantial acts to complete contract.

When the Company is obliged to perform any substantial acts after transfer of all significant risks and rewards of ownership on sale of property to the buyer, the revenue and cost is recognized on proportionate basis by applying the percentage completion method.

(iii) Lease

Income from leasing of commercial complex is recognized on an accrual basis.

(iv) Interest income is accounted on an accrual basis at contracted rates.

(v) Dividend income is recognized when the right to receive the same is established.

(vi) Income on investments is recognized based on the terms of the investment. Income from mutual fund scheme having fixed maturity plans is accounted on declaration of dividend or on maturity of such investments.

(vii) Income from Trading Activity is recognized when the seller has transferred to the buyer the property in goods for a consideration or significant risks and rewards of ownership have been transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods.

h) Employee Benefits:

(i) Gratuity and Leave Encashment liabilities are provided for on the basis of an actuarial valuation on Projected Unit Credit Method as at the reporting date.

(ii) Company''s Contribution to Provident Fund and Employee State Insurance is charged to the statement of profit and loss for the year. The company has no other obligation other than contribution payable.

i) Borrowing costs:

Borrowing costs attributable to the acquisition and/or construction of qualifying assets is capitalized to as part of the cost of such assets in accordance with notified

Accounting Standard 16 "Borrowing Costs". A qualifying asset is one that necessarily takes a substantial period of time to get ready for use or sale. Capitalization of borrowing costs is suspended in the period during which the active development is delayed due to, other than temporary interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

j) Inventories:

(i) Land

Land is valued at cost or net realizable value whichever is less.

(ii) Raw materials and stores

Stock of raw materials and stores are valued at cost or net realizable value whichever is less.

(iii) Work-in-progress

Work-in-progress is valued at cost or net realizable value whichever is less.

k) Segment Reporting Policies:

The Company has identified that its operating activity is a single business segment viz., Real Estate and Infrastructure Development from the risk and return point of view. Geographical also company operates under one sagment.

l) Impairment of Assets:

At each Balance sheet date, the company consider whether there is any indication that an asset may be impaired. If any indication exists the recoverable amount of the asset is estimated. An impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, estimated future Cash Flows are discounted to their present value based on an appropriate discount factor.

m) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated. Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities. Contingent Assets are neither recognized nor disclosed in the financial statements.

b. Terms/rights attached to Equity shares

The company has one class of equity shares having a par value of Re.1/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

d. Out of above, 17,20,00,000 equity share of Re. 1/- each fully paid up allotted pursuant to the Scheme of Amalgamation, for consideration other than cash on 24/07/2010.

Nature of security for short term borrowings

*Overdraft facility of Rs. 9,37,72,791/- (P.Y. 6,49,11,613/-) is secured by way of equitable mortgage of properties situated at 7th to 9th floor Sambhaav House, Ahmedabad and personal guarantee of Mr. Manoj Vadodaria & Mr. Kiran Vadodaria.


Mar 31, 2013

A) Basis of preparation of financial statements :

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

b) 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 amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable.

c) Fixed Assets :

(i) Tangible Assets

Fixed assets are stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

Fixed assets are stated at cost less accumulated depreciation there on.

(ii) Intangible Assets

All Intangible Assets are initially measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed.

d) Depreciation and Amortisation :

(i) Company has provided depreciation at the rates and in the manner laid down in Schedule XIV to the Companies Act,1856 as per "Straight Line Method" in respect of all fixed assets.

(ii) Computer software is amortised as per "Straight Line Method" over its useful life, which is estimated as three years.

e) Investments :

Investments are classified into current investments and Non-current investment. Investments are further classified as quoted and unquoted investments also.

Non-current Investments are stated at cost of acquisition. If there is decline in value of non-current investment as on reporting date other than of temporary in nature, such decline is debited to the statement of profit and loss as "Provision for diminution in value of Investments". Subsequent increase in the realizable value of the investment will be credited to the statement of profit and loss to the extent provision made for.

Current Investments, if any, are stated at cost or fair value whichever is lower and resultant decline is charged to statement of profit and loss.

f) Taxation :

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which gives rise to future economic benefit in the form of adjustment of 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 recognised as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

The deferred tax impact resulting from timing difference between accounting and taxable profit is accounted by using tax rates and tax laws enacted or substantially enacted as at the Balance sheet date. The Deferred Tax Asset is recognized and carried forwarded only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

g) Revenue Recognition :

(i) Infrastructures Development Income

Income from Infrastructure project has been recognized on accrual basis.

(ii) Real Estate Development

The Company records revenue of its residential projects confirming to Accounting Standard 9 and also based on Guidance note issued by the ICAI.

The full revenue is recognized on sale of property when the company has transferred all significant risk and rewards of ownership to the buyer and when the company is not required to perform any substantial acts to complete contract.

When the Company is obliged to perform any substantial acts after transfer of all significant risks and rewards of ownership on sale of property to the buyer, the revenue and cost is recognized on proportionate basis by applying the percentage completion method.

(iii) Lease

Income from leasing of commercial complex is recognized on an accrual basis.

(iv) Interest income is accounted on an accrual basis at applicable rates.

(v) Dividend income is recognized when the right to receive the same is established.

(vi) Income on investments is recognized based on the terms of the investment. Income from mutual fund scheme having fixed maturity plans is accounted on declaration of dividend or on maturity of such investments.

(vii) Income from Trading Activity is recognized when the property in the goods has transferred to the buyer for a consideration or significant risks and rewards of ownership have been transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods.

h) Employee Benefits :

(i) Gratuity and Leave Encashment liabilities are provided for on the basis of an actuarial valuation on Projected Unit Credit Method as at the reporting date.

(ii) Company''s Contribution to Provident Fund and Employee State Insurance is charged to the statement of profit and loss for the year. The company has no other obligation other than contribution payable.

i) Borrowing Costs :

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

j) Inventories :

(i) Land

Land is valued at cost or net realizable value whichever is less.

(ii) Raw materials and stores

Stock of raw materials and stores are valued at cost or net realizable value whichever is less.

(iii) Work-in-Progress

Work-in-Progress is valued at cost or net realizable value whichever is less.

k) Segment Reporting Policies :

The Company has identified that its operating activity is a single business segment viz., Real Estate and Infrastructure Development from the risk and return point of view. Geographically also company operates under one segment.

l) Impairment of Assets :

At each Balance sheet date, the company consider whether there is any indication that an asset may be impaired. If any indication exists the recoverable amount of the asset is estimated. An impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, estimated future Cash Flows are discounted to their present value based on an appropriate discount factor.

m) Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated. Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A) Basis of preparation of financial statements:

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

b) 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 amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable.

c) Fixed Assets:

(i). Tangible Assets

Fixed assets are stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

Fixed assets are stated at cost less accumulated depreciation there on.

(ii). Intangible Assets

All Intangible Assets are initially measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed.

d) Depreciation:

Company has provided depreciation at the rates and in the manner laid down in Schedule XIV to the

Companies Act, 1956 as per "Straight Line Method" in respect of all the fixed assets.

e) Investments:

Investments are classified into current investments and Non-current investment. Investments are further classified as quoted and unquoted investments also.

Non-current Investments are stated at cost of acquisition. If there is decline in value of non-current investment as on reporting date other than of temporary in nature, such decline is debited to the statement of profit and loss as "Provision for diminution in value of Investments". Subsequent increase in the realizable value of the investment will be credited to the statement of profit and loss to the extent provision made for.

Current Investments, if any, are stated at cost or fair value whichever is lower and resultant decline is charged to statement of profit and loss.

f) Taxation:

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternative Tax (MAT) paid in accordance to the tax laws, which gives rise to future economic benefit in the form of adjustment of 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 recognised as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably.

The deferred tax impact resulting from timing difference between accounting and taxable profit is accounted by using tax rates and tax laws enacted or substantially enacted as at the Balance sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

g) Revenue Recognition:

(i) Infrastructures Development Income

Income from Infrastructure project has been recognized on accrual basis.

(ii) Real Estate Development

The Company records its revenue of its residential projects confirming to Accounting Standard 9 and also based on Guidance note issued by the ICAI.

The full revenue is recognized on sale of property when the company has transferred all significant risk and rewards of ownership to the buyer and when the company is not required to perform any substantial acts to complete contract.

When the Company is obliged to perform any substantial acts after transfer of all significant risks and rewards of ownership on sale of property to the buyer, the revenue and cost is recognized on proportionate basis by applying the percentage completion method.

(iii) Lease

Income from leasing of commercial complex is recognized on an accrual basis.

(iv) Interest income is accounted on an accrual basis at applicable rates.

(v) Dividend income is recognized when the right to receive the same is established.

(vi) Income on investments is recognized based on the terms of the investment. Income from mutual fund scheme having fixed maturity plans is accounted on declaration of dividend or on maturity of such investments.

(vii) Income from Trading Activity is recognized when the property in the goods has transferred to the buyer for a consideration or significant risks and rewards of ownership have been transferred to the buyer and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods.

h) Employee Benefits:

(i) Gratuity and Leave Encashment liabilities are provided for on the basis of an actuarial valuation on Projected Unit Credit Method as at the reporting date.

(ii) Company's Contribution to Provident Fund and Employee State Insurance is charged to the statement of profit and loss for the year. The company has no other obligation other than contribution payable.

i) Borrowing Costs:

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

j) Inventories:

(i) Land

Land is valued at cost or net realizable value whichever is less.

(ii) Raw materials and stores

Stock of raw materials and stores are valued at cost or net realizable value whichever is less.

(iii) Work-in-Progress

Work-in-Progress is valued at cost or net realizable value whichever is less.

k) Segment Reporting Policies:

The Company has identified that its operating activity is a single business segment viz., Real Estate and Infrastructure Development from the risk and return point of view. Geographically also company operates under one segment.

l) Impairment of Assets:

At each Balance sheet date, the company consider whether there is any indication that an asset may be impaired. If any indication exists the recoverable amount of the asset is estimated. An impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, estimated future Cash Flows are discounted to their present value based on an appropriate discount factor.

m) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in the accounts in respect of present probable obligations, the amount of which can be reliably estimated. Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities. Contingent Assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

(a) Basis of preparation of financial statements:

The financial statements are prepared and presented under the historical cost convention on an accrual basis of accounting in accordance with generally accepted accounting principles in India ("Indian GMP') and are to comply with the Accounting standards prescribed In the Companies (Accounting Standards Rules, 2006 as amended issued by the Central Government in exercise of the power Conferred under sub- section l(a) of section 642 and the relevant provisions of the Companies Act, 1956.

(b) 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 amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable.

(c) Fixed Assets:

i. Tangible Assets

The Gross block of fixed assets is stated at Cost of acquisition Or construction including any cost attribute the bringing the assets to their working condition for their intended use.

Fixed assets are valued at cost less accumulated depreciation there on.

ii. Intangible Assets

All intangible Assets are initially measured at cost and amortized so as to reflect the pattern in which the assets economic benefits are consumed.

d) Depreciation;

Company has provided depreciation at the rates and in the manner laid down in Schedule XIV to the Companies Act. 1956 as per "Straight Line Method' in respect of all the fixed assets.

(e) Investments:

Investments are classified into long term and current investment. Investment are further classified as quoted and unquoted investment also.

Long term investments are stated at cost of acquisition. If there is decline in value of quoted long term investment as on resorting date other than of temporary in nature, such decline is debited to profit and loss account as "Provision for diminution in value of Investments". However, realizable value is increased subsequently; the Increase in value of Investment will be credited to profit and loss account to the extent provision made for.

Current Investments / Short term investments, If any are stated at cost or fair value and resultant decline is charged to revenue.

(F) Provision for Income Tax and Deferred Tax:

Provision for Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the income tax Act 1961.

The deferred tax impact resulting from timing difference between accounting and taxable profit is accounted by using tax rates and tax laws enacted or substantially enacted as at the Balance sheet date, The Deferred tax asset Is recognized and earned forwarded only to the extent where is reasonable certainty that sufficient future taxable Income will be available against which such deferred tax assets can to realized.

(g) Revenue Recognition:

i. Infrastructure Development Income

Income from Infrastructures Project has been recognized on accrual basis,

ii. Real Estate Development

The Company records its revenue of its residential projects confirming to Accounting Standard 9 and also based on guidance note Issued by ICAI.

The full revenue is recognized on sale of property when the Company has transferred all significant risk and rewards of ownership to the buyer when the company is not required do perform any substantial acts to complete contract.

When the Company is obliged to perform any substantial acts after transfer of all significant risks and rewards of ownership on sale of property to the buyer, the revenue and cost is recognized on proportionate basis by applying the percentage completion method,

iii. Lease

Income from leasing of commercial complex is recognized over the tenure of lease or service agreement.

iv. interest income is accounted on an accrual basis at contracted rates.

v. Dividend Income is recognized when the right to receive the same is established.

vi. Income on investments is recognized based on the terms of the investment, Income from mutual fund scheme having fixed maturity plans is accounted on declaration of dividend or on maturity of such investments.

(h) Employee Benefits

1. Gratuity and leave encashment liabilities are provided for on the basis of an actuarial valuation on projected unit credit method as at the reporting date.

ii. Company's Contribution to provident fund and employee state insure nee a recharged to profit and loss account of the year. The company has no other obligation other than contribution payable.

(i) Borrowing costs:

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

(j) Inventories:

i, Land

Land is valued at cost or net realizable value whichever is less.

ii. Raw materials and stores

Stock of raw materials and stores are valued at cost or net realizable value whichever is less.

iii. Work-in-progress

Work-in-progress is valued at cost or net realizable value whichever is less.

(k) Segment Reporting Policies

The Company has identified that operating activity is a single business segment viz., Real Estate & Infrastructure Development from the risks and return point of view and Geographic point of view.

(l) Impairment of Assets:

At each Balance sheet date, the company consider whether there is any indication that an asset may be impaired. If any indication exits the recoverable amount of the asset is estimated. An Impairment loss is recognized immediately whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use, estimated future cash flows are discounted to their present value based on an appropriate discount factor.

(m) Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in the accounts in aspect of present crooablo obligations, the amount of which can be reliably estimated.

Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities.

Contingent Assets are neither recognized nor discloses in the financial statements.


Mar 31, 2009

(a) Basis of preparation of Financial Statements:

The Financial Statements are prepared and presented under the historical cost convention on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles in India ("Indian GAAP") and are in compliance with Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of Companies Act, 1956.

(b) Accounting Convention and Revenue Recognition:

The Company follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

(c) Fixed Assets:

a. Fixed Assets are valued at cost less accumulated depreciation.

b. Cost includes all costs incurred to bring the asset to their working condition and location.

(d) Depreciation:

Company has provided Depreciation at the rates and in the manner laid down in Schedule XIV to the Companies Act, 1956 as per "Straight Line Method" in respect of all assets.

(e) Investments:

Investments are stated at cost of acquisition.

(f) Provision for Income Tax:

Provision of Income tax for the current year is based on the estimated taxable income for the period in accordance with the provisions of the income Tax Act, 1961.

(g) Provision for Deferred Tax

The Deferred Tax resulting from timing difference between accounting & taxable profit is accounted by using tax rates & tax laws that have been enacted or substantively enacted as at the Balance Sheet date. The Deferred Tax Asset is recognized & carried forward only to the extent there is a reasonable certainty that the asset will be realized in the future.

(h) Business Income:

Infrastructure Development Income:

Income from Infrastructure development have been recognized on accrual basis.

Income from Real Estate Development Projects:

(I) The Company records revenue of its residential project - Asmaakam confirming to Accounting Standard - 9 and also based on guidance note issued by The Institute of Chartered Accountants of India.

(ll)The full revenue is recognized on sale of property when the Company has transferred all significant risks & rewards of ownership to the buyer and when the company is not required to perform any substantial acts to complete the contract.

(Ill) When the Company is obliged to perform any substantial acts after transfer of all significant risks and rewards of ownership on sale of property to the buyer, the revenue and cost is recognized on proportionate basis by applying the percentage completion method.

(i) Staff Benefit:

(I) Gratuity liability is provided for on the basis of an actuarial valuation.

(II) Companys contribution to provident fund is charged to profit and Loss Account of the year. The company has no other obligation other than the contribution payable.

(j) Inventories:

(i) Land:

Land is valued at cost.

(ii) Raw Materials:

Stock of Raw Materials is valued at cost.

(iii) Work-in-progress:

Closing stock of work-in-progress is valued at cost.

(k) Contingent Liabilities:

Contingent Liabilities are disclosed by way of notes to the accounts explaining the nature and quantum of such liabilities.

 
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