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 ÃIntangible 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 (ÃGAAPÃ) 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 ÃIntangible AssetsÃ.
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.