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Accounting Policies of Orbit Corporation Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles ('GAAP') and in compliance with the Accounting Standards prescribed under the Companies (Accounting Standards) Rules, 2006 and other requirements of the Companies Act, 2013. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in the current and future periods. Wherever changes in presentation are made, comparative figures of the previous Period are regrouped accordingly.

1.2 Revenue Recognition

Income from real estate sales is recognized on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company. Revenue from construction and project related activity is recognized by applying Percentage Completion Method (PCM) to sale of tenements. Percentage of completion is determined as a proportion of cost incurred to date (excluding property acquisition cost) to the total estimated project cost (excluding property acquisition cost). Project becomes eligible for revenue recognition when the percentage of completion of project exceeds 25%.

1.3 Fixed Asset

Fixed assets are capitalized at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use.

Expenditure relating to existing fixed assets is added to the cost of the assets, where it increases the performance / life of the asset as assessed earlier. Fixed assets are eliminated from financial statements either on disposal or when retired from active use. Book value of assets whose useful life is nil as on 1st April 2014 has been adjusted against opening balance of retained earnings.

1.4 Intangible assets and Amortization

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 'Intangible Assets'.

1.5 Investments

Investments are classified into long term and current investments. Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognize a decline, other than of a temporary nature. Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

1.6 Inventories

Inventory of finished tenements are valued at lower of the cost or net realizable value. Inventories of work in progress includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the Company and are valued at cost.

1.7 Depreciation

With effect from 1st April, 2014, depreciation has been computed and provided on the basis of useful life of fixed assets specified in schedule II to the Companied Act,2013.

1.8 Employee Stock Option Scheme

Employee Stock Options are evaluated and accounted on intrinsic value method as per the accounting treatment prescribed by Guidance Note on 'Accounting for Employee Share-based payments' issued by ICAI read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines 1999 issued by SEBI. The excess of market value, if any, of the stock options as on the date of vesting over the exercise price of the options is recognized as deferred employee compensation and is charged to the profit and loss account on vesting basis over the vesting period of the options. The un-amortized portion of the deferred employee compensation, if any, is reduced from Employee Stock Option Outstanding.

1.9 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period over twelve months of time to get ready for its intended use or sale. All other borrowing costs are recognized as expense in the period in which they are incurred.

1.10 Retirement Benefits

Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund and Family Pension. The liability in respect of defined benefit scheme like Gratuity is provided on the basis of actuarial valuation as at the Period end. Provisions for / contributions for leave encashment benefits are made on actual basis.

1.11 Taxes on income

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals. Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

1.12 Provisions, Contingent liabilities and Contingent assets

a Provision are recognized 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.

b Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognized when it is virtually certain that reimbursement will be received if obligation is settled.

c Contingent liability is disclosed in the case of

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

ii. a possible obligation, unless the probability of outflow of resources is remote.

d Contingent assets are neither disclosed nor recognized. e Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date.

1.13 Events occurring after the date of balance sheet

Where material, events occurring after the date of the Balance Sheet are considered up to the date of approval of accounts by the Board of Directors.

1.14 Foreign Currency Transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates the relevant transactions take place. Monetary Assets and Liabilities in foreign currency, outstanding at the close of the Period, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted during the Period.

1.15 Earnings Per Share

The amount considered in ascertaining the Company's earnings per share constitutes the net Profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.

Diluted EPS is calculated on the number of equity shares outstanding as on the balance sheet date and also the dilutive component of employee stock options Dilutive nature have been calculated as difference between fair value i.e. Average six months daily closing price as on 31 March 2015 and actual conversion price for such warrants.

b Terms/ Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs.10/- per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing General Meeting, except interim dividend.

In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets , if any of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d Shares reserved for issue under options

ESOP Scheme 2012

At an Annual General Meeting held on 24th September, 2012 resolution to grant upto 1,200,000 options to employees was approved which entitles the option holders to subscribe to one equity shares of the company of face value of Rs.10 per option granted at grant price on such terms and conditions as may be fixed or determined by the board.

(Refer Note 33 for details)

**The potential equity shares to be issued on account of employee stock options is anti dilutive.


Mar 31, 2014

1.1 Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (''GAAP'') and in compliance with the Accounting Standards prescribed under the Companies (Accounting Standards) Rules, 2006 and other requirements of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the fi nancial statements. Examples of such estimates include the useful lives of fi xed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefi t plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative fi gures of the previous year are regrouped accordingly.

1.2 Revenue Recognition

Income from real estate sales is recognised on the transfer of all signifi cant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no signifi cant uncertainty exists regarding the amount of consideration.

Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company. Revenue from construction and project related activity is recognised by applying Percentage Completion Method (PCM) to sale of tenements. Percentage of completion is determined as a proportion of cost incurred to date (excluding property acquisition cost) to the total estimated project cost (excluding property acquisition cost). Project becomes eligible for revenue recognition when the percentage of completion of project exceeds 25%.

1.3 Fixed Asset

Fixed assets are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use.

Expenditure relating to existing fi xed assets is added to the cost of the assets, where it increases the performance / life of the asset as assessed earlier.

Fixed assets are eliminated from fi nancial statements either on disposal or when retired from active use.

1.4 Intangible assets and Amortisation

Intangible assets are recognised as per the criteria specifi ed in Accounting Standard (AS) 26 ''Intangible Assets''.

1.5 Investments

Investments are classifi ed into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognise a decline, other than of a temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

1.6 Inventories

Inventory of finished tenements are valued at lower of the cost or net realizable value. Inventories of work in progress includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the Company and are valued at cost.

1.7 Depreciation

Depreciation on fixed assets has been provided on written down value, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

1.8 Employee Stock Option Scheme

Employee Stock Options are evaluated and accounted on intrinsic value method as per the accounting treatment prescribed by Guidance Note on ''Accounting for Employee Share-based payments'' issued by ICAI read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines 1999 issued by SEBI. The excess of market value, if any, of the stock options as on the date of vesting over the exercise price of the options is recognised as deferred employee compensation and is charged to the profi t and loss account on vesting basis over the vesting period of the options. The un-amortized portion of the deferred employee compensation, if any, is reduced from Employee Stock Option Outstanding.

1.9 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period over twelve months of time to get ready for its intended use or sale.

All other borrowing costs are recognised as expense in the period in which they are incurred.

1.10 Retirement Benefi ts

Retirement benefi ts to the employees comprise of payments under defi ned contribution plans like Provident Fund and Family Pension. The liability in respect of defi ned benefi t scheme like Gratuity is provided on the basis of actuarial valuation as at the year end. Provisions for / contributions for leave encashment benefi ts are made on actual basis.

1.11 Taxes on income

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the ncome Tax Act, 1961, and based on expected outcome of assessments / appeals.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable ncome and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that suffi cient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax is quantifi ed using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

1.12 Provisions, Contingent liabilities and Contingent assets

a Provision are recognised for liabilities that can be measured only by using a substantial degree of estimation, if the Company has a present obligation as a result of past event,

i. a probable outfl ow of resources is expected to settle the obligation; and

i. the amount of the obligation can be reliably estimated.

b Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual certain that reimbursement will be received if obligation is settled.

c Contingent liability is disclosed in the case of

a present obligation arising from a past event, when it is not probable that an outfl ow of resources will be required to settle the obligation;

i. a possible obligation, unless the probability of outfl ow of resources is remote.

d Contingent assets are neither disclosed nor recognised.

e Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date.

1.13 Events occurring after the date of balance sheet

Where material, events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

1.14 Foreign Currency Transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates the relevant transactions take place.

Monetary Assets and Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted during the year.

1.15 Earnings Per Share

The amount considered in ascertaining the Company''s earnings per share constitutes the net Profi t after tax.

The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.

Diluted EPS is calculated on the number of equity shares outstanding as on the balance sheet date and also the dilutive component of employee stock options. Dilutive nature have been calculated as difference between fair value i.e. Average six months daily closing price as on 31st March 2013 and actual conversion price for such warrants.

b Terms/ Rights attached to Equity Shares

The Company has only one class of Equity Shares having a par value of Rs.10/- per share. Each holder of Equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. T e dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing General Meeting, except interim dividend.

In the event of liquidation of the Company, the holders of Equity shares will be entitled to receive remaining assets , if any of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms/ Rights attached to Preference Shares

If at any time, the share capital by reason of issue of Preference shares or otherwise is divided into different classes of shares, then all or any of the rights and privileges attached to any class, then the rights and restrictions attaching to the Redeemable Preference Shares shall differ from those attaching to Equity Shares as follows:

The Redeemable Preference Shares carry rights to receive dividends.

The holders of Redeemable Preference Shares have no rights to receive notices of, attend or vote at general meetings except in certain limited circumstances affecting their interests & rights.

Subject to the provisions of the Companies Act 1956, the Company shall have the right to redeem the Redeemable Preference Shares at any time on giving not less than seven days'' written notice.

On a distribution of assets of the Company, on a winding-up or other return of capital (subject to certain exceptions), the holders of Redeemable Preference Shares have priority over the holders of Ordinary Shares to receive the capital paid-up on those shares.

d Shares reserved for issue under options

ESOP Scheme 2012

At an Annual General Meeting held on 24th September , 2012 resolution to grant upto 1,200,000 options to employees was approved which entitles the option holders to subscribe to one equity shares of the company of face value of Rs.10 per option granted at grant price on such terms and conditions as may be fixed or determined by the board.

(Refer Note 33 for details)

Term loans and overdraft facilities which are secured by registered mortgages of certain freehold lands / properties of the Company / Subsidiary Companies and / or against future receivables of the Company / Subsidiary Companies and / or directors'' personal guarantee.

Term loans and overdraft facilities which are secured by registered mortgages of certain freehold and leasehold lands / properties of the Company / Subsidiary Companies and / or against future receivables of the Company / Subsidiary Companies and / or directors'' personal guarantee/pledge of shares

*The repayment schedule provides status as on 31st March 2014. However, the same may undergo substantial modifi cation as overdue amount is in various stages of reschdulement with respective banks and Financial institutions.

Potential equity shares on account of employee stock options conversion would decrease loss per share and hence anti dilutive, are ignored in calculating diluted earnings per share.


Mar 31, 2013

1.1 Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (''GAAP'') and in compliance with the Accounting Standards prescribed under the Companies (Accounting Standards) Rules, 2006 and other requirements of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

1.2 Revenue Recognition

ncome from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company. Revenue from construction and project related activity is recognised by applying Percentage Completion Method (PCM) to sale of tenements. Percentage of completion is determined as a proportion of cost incurred to date (excluding property acquisition cost) to the total estimated project cost (excluding property acquisition cost). Project becomes eligible for revenue recognition when the percentage of completion of project exceeds 25%.

1.3 Fixed Asset

Fixed assets are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use.

Expenditure relating to existing fixed assets is added to the cost of the assets, where it increases the performance / life of the asset as assessed earlier.

Fixed assets are eliminated from financial statements either on disposal or when retired from active use.

1.4 Intangible assets and Amortisation

ntangible assets are recognised as per the criteria specified in Accounting Standard (AS) 26 Intangible Assets''.

1.5 Investments

nvestments are classified into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognise a decline, other than of a temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

1.6 Inventories

nventory of finished tenements are valued at lower of the cost or net realizable value. Inventories of work in progress includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the Company and are valued at cost.

1.7 Depreciation

Depreciation on fixed assets has been provided on written down value, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

1.8 Employee Stock Option Scheme

Employee Stock Options are evaluated and accounted on intrinsic value method as per the accounting treatment prescribed by Guidance Note on ''Accounting for Employee Share-based payments'' issued by ICAI read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines 1999 issued by SEBI. The excess of market value, if any, of the stock options as on the date of vesting over the exercise price of the options is recognised as deferred employee compensation and is charged to the profit and loss account on vesting basis over the vesting period of the options. The un-amortized portion of the deferred employee compensation, if any, is reduced from Employee Stock Option Outstanding.

1.9 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantia period over twelve months of time to get ready for its intended use or sale.

All other borrowing costs are recognised as expense in the period in which they are incurred.

1.10 Retirement Benefits

Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund and Family Pension. The liability in respect of defined benefit scheme like Gratuity is provided on the basis of actuarial valuation as at the year end. Provisions for / contributions for leave encashment benefits are made on actual basis.

1.11 Taxes on income

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals.

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

Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

1.12 Provisions, Contingent liabilities and Contingent assets

a. Provision 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 ii. the amount of the obligation can be reliably estimated.

b. Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual certain that reimbursement will be received if obligation is settled.

c. Contingent liability is disclosed in the case of

i. a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation; ii. a possible obligation, unless the probability of outflow of resources is remote.

d. Contingent assets neither disclosed nor recognised.

e. Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date.

1.13 Events occurring after the date of balance sheet

Where material, events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

1.14 Foreign Currency Transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates the relevant transactions take place.

Monetary Assets and Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted during the year.

1.15 Earnings Per Share (EPS)

The amount considered in ascertaining the Company''s earnings per share constitutes the net Profit after tax.

The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.

Diluted EPS is calculated on the number of equity shares outstanding as on the balance sheet date and also the dilutive component of employee stock options. Dilutive nature have been calculated as difference between fair value i.e. Average six months daily closing price as on 31 March 2013 and actual conversion price for such warrants.


Mar 31, 2012

1.1 Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles ('GAAP') and in compliance with the Accounting Standards prescribed under the Companies (Accounting Standards) Rules, 2006 and other requirements of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

1.2 Revenue Recognition

Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company. Revenue from construction and project related activity is recognised by applying Percentage Completion Method (PCM) to sale of tenements. Percentage of completion is determined as a proportion of cost incurred to date (excluding property acquisition cost) to the total estimated project cost (excluding property acquisition cost). Project becomes eligible for revenue recognition when the percentage of completion of project exceeds 25%.

1.3 Fixed Asset

Fixed assets are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use.

Expenditure relating to existing fixed assets is added to the cost of the assets, where it increases the performance / life of the asset as assessed earlier.

Fixed assets are eliminated from financial statements either on disposal or when retired from active use.

1.4 Intangible assets and Amortisation

Intangible assets are recognised as per the criteria specified in Accounting Standard (AS) 26 'Intangible Assets'.

1.5 Investments

Investments are classified into long term and current investments. Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognise a decline, other than of a temporary nature. Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

1.6 Inventories

Inventory of finished tenements are valued at lower of the cost or net realizable value. Inventories of work in progress includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the Company and are valued at cost.

1.7 Depreciation

Depreciation on fixed assets has been provided on written down value, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

1.8 Employee Stock Option Scheme

Employee Stock Options are evaluated and accounted on intrinsic value method as per the accounting treatment prescribed by Guidance Note on 'Accounting for Employee Share-based payments' issued by ICAI read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines 1999 issued by SEBI. The excess of market value, if any, of the stock options as on the date of vesting over the exercise price of the options is recognised as deferred employee compensation and is charged to the profit and loss account on vesting basis over the vesting period of the options. The un-amortized portion of the deferred employee compensation, if any, is reduced from Employee Stock Option Outstanding.

1.9 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period over twelve months of time to get ready for its intended use or sale.

All other borrowing costs are recognised as expense in the period in which they are incurred.

1.10 Retirement Benefits

Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund and Family Pension. The liability in respect of defined benefit scheme like Gratuity is provided on the basis of actuarial valuation as at the year end. Provisions for / contributions for leave encashment benefits are made on actual basis.

1.11 Taxes on income

Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals.

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

Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

1.12 Provisions, Contingent liabilities and Contingent assets

a. Provision 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.

b. Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual certain that reimbursement will be received if obligation is settled.

c. Contingent liability is disclosed in the case of

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

ii. a possible obligation, unless the probability of outflow of resources is remote.

d. Contingent assets neither disclosed nor recognised.

e. Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date.

1.13 Events occurring after the date of balance sheet

Where material, events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

1.14 Foreign Currency Transactions

All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates the relevant transactions take place.

Monetary Assets and Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted during the year.

1.15 Earnings Per Share

The amount considered in ascertaining the Company's earnings per share constitutes the net Profit after tax.

The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving basic earnings per share and also the weighted average number of shares which could have been issued on conversion of all dilutive potential shares.

Diluted EPS is calculated on the number of equity shares outstanding as on the balance sheet date and also the dilutive component of employee stock options. Dilutive nature have been calculated as difference between fair value i.e. Average six months daily closing price as on 31st March 2012 and actual conversion price for such warrants.


Mar 31, 2011

1. Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standards prescribed under the Companies (Accounting Standards) Rules, 2006 and other requirements of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

2. Revenue Recognition

Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company. Revenue from construction and project related activity is recognised by applying Percentage Completion Method (PCM) to sale of tenements. Percentage of completion is determined as a proportion of cost incurred to date (excluding property acquisition cost) to the total estimated project cost (excluding property acquisition cost). Project becomes eligible for revenue recognition when the percentage of completion of project exceeds 25%.

3. Fixed Assets

a. Fixed assets are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use.

b. Expenditure relating to existing fixed assets is added to the cost of the assets, where it increases the performance / life of the asset as assessed earlier.

c. Fixed assets are eliminated from financial statements either on disposal or when retired from active use.

4. Intangible assets and Amortisation

Intangible assets are recognised as per the criteria specified in Accounting Standard (AS) 26 ‘Intangible Assets.

5. Investments

Investments are classified into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognise a decline, other than of a temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

6. Inventories

Inventory of finished tenements are valued at lower of the cost or net realizable value. Inventories of work in progress includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the Company and are valued at cost.

7. Depreciation

Depreciation on fixed assets has been provided on written down value, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

8. Employee Stock Option Scheme

Employee Stock Options are evaluated and accounted on intrinsic value method as per the accounting treatment prescribed by Guidance Note on Accounting for Employee Share-based payments issued by ICAI read with SEBI (Employee Stock Option Scheme & Employee Stock Purchase Scheme) Guidelines 1999 issued by SEBI. The excess of market value, if any, of the stock options as on the date of vesting over the exercise price of the options is recognised as deferred employee compensation and is charged to the profit and loss account on vesting basis over the vesting period of the options. The un-amortized portion of the deferred employee compensation, if any, is reduced from Employee Stock Option Outstanding.

9. Borrowing costs

a. Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period over twelve months of time to get ready for its intended use or sale.

b. All other borrowing costs are recognised as expense in the period in which they are incurred.

10. Retirement Benefits

Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund and Family Pension. The liability in respect of defined benefit scheme like Gratuity is provided on the basis of actuarial valuation as at the year end. Provisions for / contributions for leave encashment benefits are made on actual basis.

11. Taxes on income

a. Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals.

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

c. Deferred tax assets are recognised and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

d. Deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

12. Provisions, Contingent liabilities and Contingent assets

a. Provision 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.

b. Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual certain that reimbursement will be received if obligation is settled.

c. Contingent liability is disclosed in the case of

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

ii. a possible obligation, unless the probability of outflow of resources is remote.

d Contingent assets neither disclosed nor recognised.

e. Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date.

13. Events occurring after the date of balance sheet

Where material, events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

14. Foreign Currency Transactions

a. All transactions in foreign currency are recorded at the rates of exchange prevailing on the date the relevant transactions take place.

b. Monetary Assets and Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted during the year.


Mar 31, 2010

1. Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (’GAAP’) and in compliance with the Accounting Standards prescribed under the Companies (Accounting Standards) Rules, 2006 and other requirements of the Companies Act, 1956. Insurance and other claims are accounted for as and when admitted by the appropriate authorities.

The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful lives of fixed assets, provision for doubtful debts/advances, future obligations in respect of retirement benefit plans, etc. Actual results could differ from these estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. Wherever changes in presentation are made, comparative figures of the previous year are regrouped accordingly.

2. Revenue Recognition

Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company. Revenue from construction and project related activity is recognised by applying Percentage Completion Method (PCM) to sale of tenements. Percentage of completion is determined as a proportion of cost incurred to date (excluding property acquisition cost) to the total estimated project cost (excluding property acquisition cost). Project becomes eligible for revenue recognition when the percentage of completion of project exceeds 25%.

3. Fixed Assets

a. Fixed assets are capitalised at acquisition cost, including directly attributable costs such as freight, insurance and specific installation charges for bringing the assets to working condition for use.

b. Expenditure relating to existing fixed assets is added to the cost of the assets, where it increases the performance / life of the asset as assessed earlier.

c. Fixed assets are eliminated from financial statements either on disposal or when retired from active use.

4. Intangible assets and Amortisation

Intangible assets are recognized as per the criteria specified in Accounting Standard (AS) 26 ‘Intangible Assets’.

5. Investments

Investments are classified into long term and current investments.

Long term investments are carried at cost. Provision for diminution, if any, in the value of each long term investment is made to recognize a decline, other than of a temporary nature.

Current investments are carried individually at lower of cost and fair value and the resultant decline, if any, is charged to revenue.

6. Inventories

Inventory of finished tenements are valued at lower of the cost or net realizable value. Inventories of work in progress includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the Company and are valued at cost.

7. Depreciation

Depreciation on fixed assets has been provided on written down value, at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

8. Borrowing costs

a. Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets till such time as the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily takes a substantial period over twelve months of time to get ready for its intended use or sale.

b. All other borrowing costs are recognized as expense in the period in which they are incurred.

9. Retirement Benefits

Retirement benefits to the employees comprises of payments under defined contribution plans like Provident Fund and Family Pension. The liability in respect of defined benefit scheme like Gratuity is provided on the basis of actuarial valuation as at the year end. Provisions for / contributions for leave encashment benefits are made on actual basis.

10. Taxes on income

a. Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessments / appeals.

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

c. Deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

d. Deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

11. Provisions, Contingent liabilities and Contingent assets

a. Provision 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.

b. Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual certain that reimbursement will be received if obligation is settled.

c. Contingent liability is disclosed in the case of

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

ii. a possible obligation, unless the probability of outflow of resources is remote.

d. Contingent assets neither disclosed nor recognised.

e. Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date.

12. Events occurring after the date of balance sheet

Where material, events occurring after the date of the Balance Sheet are considered upto the date of approval of accounts by the Board of Directors.

13. Foreign Currency Transactions

a. All transactions in foreign currency are recorded at the rates of exchange prevailing on the dates the relevant transactions take place.

b. Monetary Assets and Liabilities in foreign currency, outstanding at the close of the year, are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of Balance Sheet. Resultant gain or loss is accounted during the year.

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