Mar 31, 2015
A. GENERAL
The financial statements are prepared on historical cost convention and
on mercantile system of accounting in accordance with generally
accepted accounting principles.
b. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the period. Differences between the
actual results and estimates are recognised in the period in which the
results are known / materialised.
c. REVENUE RECOGNITION
The accounts are prepared on accrual basis in accordance with normally
accepted accounting principles. Receipts from fixed price construction
contract recognised as revenue on the percentage of completion measured
by reference to percentage of construction cost incurred up to the
reporting date to the estimated total construction cost for each
project. Cost incurred for the construction contract recognised as
expenditure only when agreement to sale of individual units is entered
into.
d. FIXED ASSETS
(i) TANGIBLE ASSETS
Fixed assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working condition for
its intended use, less accumulated depreciation. Expenses capitalised
also include applicable borrowing costs. In respect of major projects
involving construction, related pre-operational expenses form part of
the value of assets capitalised. All upgradation/enhancements are
generally charged off as revenue expenditure unless they bring similar
significant additional benefits.
(ii) INTANGIBLEASSET:
Intangible assets are stated at cost less accumlated amortisation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intendend use. Amortisation is provided on Straight Line Method
(SLM), which reflect the management's estimate of the useful life of
the intangible assets.
e. DEPRECIATION
Depreciation on fixed assets is provided using the Straight Line method
over the estimated useful life at each assets as determined by the
management. The useful life estimates prescribed in part C of schedule
II of the Companies Act, 2013 are generally adheared to except in
respect of asset classes where, based on technical evaluation, as
different estimate of useful life considered suitable perusal to this
policy the useful life of assets is estimated at:
Asset Categories Useful life Residual
Buildings 60 yrs 2%
Electrical Equipment 10 yrs 2%
Computers 03 yrs 2%
Furniture & Fixtures 10 yrs 2%
Plant and Machinery 15 yrs 2%
Printing Machinery 10 yrs 2%
Vehicles 08 yrs 2%
Intangibles 06 yrs 2%
Assets costing individually Rs.5000/- and below are fully depreciated
in the year of addition
f. IMPAIRMENT OF ASSETS
As at each Balance Sheet date, the carrying amount of assets is tested
for impairment so as to determine:
a)the provision for impairment loss, if any, required; orb)the
reversal, if any, required of impairment loss recognised in previous
periods. Impairment loss is recognised when the carrying amount of an
asset exceeds its recoverable amount.
Recoverable amount is determined:a)In the case of an individual asset,
at the higher of the net selling price and the value in use;b)In the
case of cash generating unit (a group of assets that generates
identified, independent cash flows), at the higher of the cash
generating unit's net selling price and the value in use. (Value in use
is determined as the present values of estimated future cash flows from
the continuing use of an asset from its disposal at the end of its
useful life.)
g. INVESTMENTS
Long Term Investments are stated at cost except where there is a
diminution in value other than temporary, in which case the carrying
value is reduced to recognize the decline. Current investments are
stated at lower of cost or fair market value.
h. ACCOUNTING FORTAXES ON INCOME
Tax expenses comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and tax laws enacted or
substantively enacted at the Balance Sheet date. Deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. In situations where the
Company has no unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognised only if there is virtual cetainty
supported by convincing evidence that they can be realised against
future taxable profits.
The carrying amount of deferred tax assets are reviewed at each Balance
Sheet date. The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
i. RETIREMENT BENEFITS
Provisions for gratuity, pension and leave salary have been made as per
the service conditions and on the basis of actuarial valuation and for
those employees who are on deputation from other organizations as per
the advice received from the respective organizations.
j. FOREIGN CURRENCY TRANSACTIONS
Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion
Foreign Currency monetary items are not reported using the closing
rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency
are reported using the exchange rates that existed when the values were
determined.
Exchange Differences
Exchange Differences arising on the settlement of monetary items or on
reporting Company's monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
k. BORROWING COST
Borrowing Cost attributable to acquisition/construction of qualifying
fixed assets which takes substantial period of time to get ready for
its intended use is capitalised as part of the cost of such fixed
asset. All other borrowing costs are recognised as an expense in the
period in which they are incurred.
l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:A
provision is recognised when an enterprise has a present obligation as
a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present valu and are determined based on best estimate required to
settle obligation at the Balance Sheet date. These are reviewed at
each Balance Sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are not recognised but disclosed by way of notes
to the accounts. Contingent assets are neither recognised nor
disclosed in financial statements.
m. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding for the period are
adjusted for the effects of all dilutive potential equity shares.
n. SEGMENT INFORMATION
The Company has disclosed Business Segment as Primary Segment. Segments
have been identified taking into account the nature of the products,
the differing risks and returns, the organisation structure and
internal reporting system. The Company's operations are predominantly
related to Construction Division. Other Business segments reported are
Service Apartment Division and Printing Division.
The Company's activities are restricted within India and hence no
separate geographical segment disclosure is considered necessary.
For the purpose of reporting, business segment are primary segment and
the geographic segment is a secondary segment. Segment Revenue, Segment
Results, Segment Assets and Segment Liabilities include the respective
amounts identifiable to each of the segments as also amounts allocated
on a reasonable basis.
The net expenses which are not directly attributable to the Business
Segment, are shown as unallocated corporate assets and liabilities
separately.
Details of Business Segment Information is presented.
Mar 31, 2014
A. GENERAL
The financial statements are prepared on historical cost convention and
on mercantile system of accounting in accordance with generally
accepted accounting principles.
b. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the period. Differences between the
actual results and estimates are recognised in the period in which the
results are known / materialised.
c. REVENUE RECOGNITION
The accounts are prepared on accrual basis in accordance with normally
accepted accounting principles. Receipts from fixed price construction
contract recognised as revenue on the percentage of completion measured
by reference to percentage of construction cost incurred up to the
reporting date to the estimated total construction cost for each
project. Cost incurred for the construction contract recognised as
expenditure only when agreement to sale of individual units is entered
into.
d. FIXED ASSETS
(i) TANGIBLE ASSETS
Fixed assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working condition for
its intended use, less accumulated depreciation. Expenses capitalised
also include applicable borrowing costs. In respect of major projects
involving construction, related pre-operational expenses form part of
the value of assets capitalised. All upgradation/enhancements are
generally charged off as revenue expenditure unless they bring similar
significant additional benefits.
(ii) INTANGIBLE ASSETS
Intangible assets are stated at cost less accumlated amortisation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intendend use.
Amortisation is provided on Straight Line Method (SLM), which reflect
the management''s estimate of the useful life of the intangible assets.
e. DEPRECIATION
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in the Schedule XIV of the Companies Act, 1956.
Assets costing individually Rs.5000/- and below are fully depreciated
in the year of addition.
f. IMPAIRMENT OF ASSETS
As at each Balance Sheet date, the carrying amount of assets is tested
for impairment so as to determine:
a) the provision for impairment loss, if any, required; or
b) the reversal, if any, required of impairment loss recognised in
previous periods. Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable amount.
Recoverable amount is determined
a) In the case of an individual asset, at the higher of the net selling
price and the value in use;
b) In the case of cash generating unit (a group of assets that
generates identified, independent cash flows), at the higher of the
cash generating unit''s net selling price and the value in use. (Value
in use is determined as the present values of estimated future cash
flows from the continuing use of an asset from its disposal at the end
of its useful life.)
g. INVESTMENTS
Long Term Investments are stated at cost except where there is a
diminution in value other than temporary, in which case the carrying
value is reduced to recognize the decline. Current investments are
stated at lower of cost or fair market value.
h. ACCOUNTING FOR TAXES ON INCOME
Tax expenses comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and tax laws enacted or
substantively enacted at the Balance Sheet date. Deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. In situations where the
Company has no unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognised only if there is virtual cetainty
supported by convincing evidence that they can be realised against
future taxable profits.
The carrying amount of deferred tax assets are reviewed at each Balance
Sheet date. The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
i. RETIREMENT BENEFITS
Provisions for gratuity, pension and leave salary have been made as per
the service conditions and on the basis of actuarial valuation and for
those employees who are on deputation from other organizations as per
the advice received from the respective organizations.
j. FOREIGN CURRENCY TRANSACTIONS Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion
Foreign Currency monetary items are not reported using the closing
rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of transaction; and non-monetary items which are carried at
fair value or other similar valuation denominated in a foreign currency
are reported using the exchange rates that existed when the values were
determined.
Exchange Differences
Exchange Differences arising on the settlement of monetary items or on
reporting Company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
k. BORROWING COST
Borrowing Cost attributable to acquisition/construction of qualifying
fixed assets which takes substantial period of time to get ready for
its intended use is capitalised as part of the cost of such fixed
asset. All other borrowing costs are recognised as an expense in the
period in which they are incurred.
l. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present valu and are determined based on best estimate required to
settle obligation at the Balance Sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised but disclosed by way of notes
to the accounts. Contingent assets are neither recognised nor
disclosed in financial statements.
m. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding for the period are
adjusted for the effects of all dilutive potential equity shares.
n. SEGMENT INFORMATION
The Company has disclosed Business Segment as Primary Segment. Segments
have been identified taking into account the nature of the products,
the differing risks and returns, the organisation structure and
internal reporting system.
The Company''s operations are predominantly related to Construction
Division. Other Business segments reported are Service Apartment
Division and Printing Division.
The Company''s activities are restricted within India and hence no
separate geographical segment disclosure is considered necessary.
For the purpose of reporting, business segment are primary segment and
the geographic segment is a secondary segment.
Segment Revenue, Segment Results, Segment Assets and Segment
Liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis.
The net expenses which are not directly attributable to the Business
Segment, are shown as unallocated corporate assets and liabilities
separately.
Mar 31, 2013
A. GENERAL
The financial statements are prepared on historical cost convention and
on mercantile system of accounting in accordance with generally
accepted accounting principles.
b. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenues and expenses during the period. Differences between the
actual results and estimates are recognised in the period in which the
results are known / materialised.
c. REVENUE RECOGNITION
The accounts are prepared on accrual basis in accordance with normally
accepted accounting principles. Receipts from fixed price construction
contract recognised as revenue on the percentage of completion measured
by reference to percentage of construction cost incurred up to the
reporting date to the estimated total construction cost for each
project. Cost incurred for the construction contract recognised as
expenditure only when agreement to sale of individual units is entered
into.
d. FIXED ASSETS
(i) TANGIBLE ASSETS
Fixed assets are stated at cost of acquisition, including any
attributable cost for bringing the asset to its working condition for
its intended use, less accumulated depreciation. Expenses capitalised
also include applicable borrowing costs. In respect of major projects
involving construction, related pre-operational expenses form part of
the value of assets capitalised. All upgradation/enhancements are
generally charged off as revenue expenditure unless they bring similar
significant additional benefits.
(ii) INTANGIBLE ASSETS
Intangible assets are stated at cost less accumlated amortisation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the assets to its working condition for
its intended use.
Amortisation is provided on Straight Line Method (SLM), which reflect
the management''s estimate of the useful life of the intangible assets.
e.DEPRECIATION
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in the Schedule XIV of the Companies Act, 1956.
Assets costing individually Rs.5000/- and below are fully depreciated
in the year of addition.
f. IMPAIRMENT OF ASSETS
As at each Balance Sheet date, the carrying amount of assets is tested
for impairment so as to determine:
a) the provision for impairment loss, if any, required; or
b) the reversal, if any, required of impairment loss recognised in
previous periods. Impairment loss is recognised when the carrying
amount of an asset exceeds its recoverable amount.
Recoverable amount is determined
a) In the case of an individual asset, at the higher of the net selling
price and the value in use;
b) In the case of cash generating unit (a group of assets that
generates identified, independent cash flows), at the higher of the
cash generating unit''s net selling price and the value in use.
(Value in use is determined as the present values of estimated future
cash flows from the continuing use of an asset from its disposal at the
end of its useful life.)
g.lNVESTMENTS
Long Term Investments are stated at cost except where there is a
diminution in value other than temporary, in which case the carrying
value is reduced to recognize the decline. Current investments are
stated at lower of cost or fair market value.
h.ACCOUNTING FORTAXES ON INCOME
Tax expenses comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian IncomeTaxAct, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and tax laws enacted or
substantively enacted at the Balance Sheet date. Deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax assets can be realised. In situations where the
Company has no unabsorbed depreciation or carry forward tax losses, all
deferred tax assets are recognised only if there is virtual cetainty
supported by convincing evidence that they can be realised against
future taxable profits.
The carrying amount of deferred tax assets are reviewed at each Balance
Sheet date.The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain,as the case may be, that
sufficient future taxable income will be available.
i. RETIREMENT BENEFITS
Provisions for gratuity, pension and leave salary have been made as per
the service conditions and on the basis of actuarial valuation and for
those employees who are on deputation from other organizations as per
the advice received from the respective organizations.
j. FOREIGN CURRENCYTRANSACTIONS
Initial Recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion
Foreign Currency monetary items are not reported using the closing
rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of transaction; and non- monetary items which are carried
at fair value or other similar valuation denominated in a foreign
currency are reported using the exchange rates that existed when the
values were determined.
Exchange Differences
Exchange Differences arising on the settlement of monetary items or on
reporting Company''s monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
k.BORROWING COST
Borrowing Cost attributable to acquisition/construction of qualifying
fixed assets which takes substantial period of time to get ready for
its intended use is capitalised as part of the cost of such fixed
asset. All other borrowing costs are recognised as an expense in the
period in which they are incurred.
I. PROVISIONS.CONTINGENT LIABILITIES AND CONTINGENT ASSETS
A provision is recognised when an enterprise has a present obligation
as a result of past event; it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle obligation at the Balance Sheet date. These are reviewed at each
Balance Sheet date and adjusted to reflect the current best estimates.
Contingent liabilities are not recognised but disclosed by way of notes
to the accounts. Contingent assets are neither recognised nor disclosed
in financial statements.
m. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit for the period attributable to equity shareholders and the
weighted average number of shares outstanding for the period are
adjusted for the effects of all dilutive potential equity shares.
n.SEGMENT INFORMATION
The Company has disclosed Business Segment as Primary Segment. Segments
have been identified taking into account the nature of the products,
the differing risks and returns, the organisation structure and
internal reporting system.
The Company''s operations are predominantly related to Construction
Division. Other Business segments reported are ServiceApartment
Division and Printing Division.
The Company''s activities are restricted within India and hence no
separate geographical segment disclosure is considered necessary.
For the purpose of reporting, business segment are primary segment and
the geographic segment is a secondary segment.
Segment Revenue,Segment Results, Segment Assets and Segment Liabilities
include the respective amounts identifiable to each of the segments as
also amounts allocated on a reasonable basis.
The net expenses which are not directly attributable to the Business
Segment, are shown as unallocated corporate assets and liabilities
separately.