Home  »  Company  »  Rander Corporati  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Rander Corporation Ltd. Company

Mar 31, 2015

2.1 Basis of preparation

The accompanying financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by Companies (Accounting Standard) Rules, 2006 (to the extent applicable) and issued by the Institute of Chartered Accountants of India (ICAI') to the extent applicable, and are in accordance with the generally accepted accounting principles ('GAAP') in India and the relevant provisions of the Companies Act, 1956, to extent applicable. The financial statement s are presented in Indian rupees.

This is the first year of application of the revised schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduces conceptual changes as well as new disclosures in the financial statements. These include classification of all assets and liabilities into current and non-current. The previous year figures have also undergone a reclassification to comply with the requirements of the revised Schedule VI.

2.2 Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

2.3 Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after thereporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

2.4 Revenue recognition

Revenue from constructed properties is recognised on the "percentage of completion method" net of cost of projects. Cost of project includes cost of land, cost of stores and spares, construction cost, labour cost and other allocable interest, administrative and finance expense net of interest and other finance income.

Interest income is recognized on accrual basis. Dividend is recognised when right to receive is established.

2.5 Fixed assets and depreciation

(a) Fixed assets are stated at historical Cost includes all expenses incidental to acquisition of the assets.

(b) Effective 1st April 2014, the company depreciates its fixed assets over the useful life in manner prescribed in schedule II of the act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the companies act, 1956.

(c) Depreciation is provided from the month of utilisation / purchase of asset.

2.6 Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal / external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to is less than it s carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.7 Investments

Long term investment s are stated at cost less provision for diminution in value other than temporary, if any. Current investment s are stated at lower of cost or fair value in respect of each separate investment.

2.8 Inventories

Inventories are stated at lower of cost and net realisable value. Construction Work-in-progress includes cost of land, construction cost, other allocable interest and administrative expenses incidental to the projects undertaken by the Company.

2.9 Borrowing costs

Borrowing cost that the directly attributable to project are recognised as an expense in the period in which they are incurred as a part of the project cost.

2.10 Foreign exchange transactions

Foreign exchange transactions are recorded using the rate of exchange on the date of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognised in the statement of profit and loss.

2.11 Taxation

a) Current tax: Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year computed in accordance provisions of the income Tax Act, 1961.

b) Deferred tax : Deferred tax arising on account of timing differences between accounting income and taxable income for the period and which are capable of reversal in one or more subsequent period s and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future.

2.12 Provisions and contingencies

The Company creates a provision when there is a present obligation as a result of a past even that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

2.13 Earnings per share

The basic earnings per share is computed by dividing the net profit / loss after tax attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share and also the weighted average number of equity shares, which could have been issued on the conversions of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are included.


Mar 31, 2014

1.1 Basis of preparation

The accompanying financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by Companies (Accounting Standard) Rules, 2006 (to the extent applicable) and issued by the Institute of Chartered Accountants of India (ICAI'') to the extent applicable, and are in accordance with the generally accepted accounting principles (''GAAP'') in India and the relevant provisions of the Companies Act, 1956, to extent applicable. The financial statement s are presented in Indian rupees.

This is the first year of application of the revised schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduces conceptual changes as well as new disclosures in the financial statements. These include classification of all assets and liabilities into current and non-current. The previous year figures have also undergone a reclassification to comply with the requirements of the revised Schedule VI.

2.2 Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

2.3 Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) it is held primarily for the purpose ofbeing traded;

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A Liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

2.4 Revenue recognition

Revenue from constructed properties is recognised on the “percentage of completion method” net of cost of projects. Cost of project includes cost of land, cost of stores and spares, construction cost, labour cost and other allocable interest, administrative and finance expense net of interest and other finance income.

Interest income is recognized on accrual basis. Dividend is recognised when right to receive is established.

2.5 Fixed assets and depreciation

(a) Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all expenses incidental to acquisition of the assets.

(b) Depreciation is provided at rates prescribed in Schedule XIV to the Companies Act, 1956 using written down value method. © Depreciation is provided from the month of utilisation / purchase of asset.

2.6 Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal / external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to is less than it s carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.7 Investments

Long term investment s are stated at cost less provision for diminution in value other than temporary, if any. Current investment s are stated at lower of cost or fair value in respect of each separate investment.

2.8 Inventories

Inventories are stated at lower of cost and net realisable value. Construction Work-in-progress includes cost of land, construction cost, other allocable interest and administrative expenses incidental to the projects undertaken by the Company.

2.9 Borrowing costs

Borrowing cost that the directly attributable to project are recognised as an expense in the period in which they are incurred as a part of the project cost.

2.10 Foreign exchange transactions

F oreign exchange transactions are recorded using the rate of exchange on the date of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognised in the statement of profit and loss.

2.11 Taxation

a) Current tax: Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year computed in accordance provisions of the income Tax Act, 1961.

b) Deferred tax : Deferred tax arising on account of timing differences between accounting income and taxable income for the period and which are capable of reversal in one or more subsequent period s and the corresponding deferred tax liabilties or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future.

2.12 Provisions and contingencies

The Company creates a provision when there is a present obligation as a result of a past even that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a posible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow ofresources would be required to settle the obligation, the provision is reversed.Contingent assets are not recognised in the financial statements. However, contingent assets are assesssed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

2.13 Earnings per share

The basic earnings per share is computed by dividing the net profit / loss after tax attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share and also the weighted average number of equity shares, which could have been issued on the conversions of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are included.


Mar 31, 2013

1.1 Basis of preparation

The accompanying financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by Companies (Accounting Standard) Rules, 2006 (to the extent applicable) and issued by the Institute of CharteredAccountants of India (ICAI'') to the extent applicable, and are in accordance with the generally accepted accounting principles (''GAAP'') in India and the relevant provisions of the Companies Act, 1956, to extent applicable. The financial statement s are presented in Indian rupees.

This is the first year of application of the revised schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduces conceptual changes as well as new disclosures in the financial statements. These include classification of all assets and liabilities into current and non-current. The previous year figures have also undergone a reclassification to comply with the requirements of the revised Schedule VI.

1.2 Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognised prospectively in current and future periods.

1.3 Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company''s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

1.4 Revenue recognition

Revenue from constructed properties is recognised on the "percentage of completion method" net of cost of projects. Cost of project includes cost of land, cost of stores and spares, construction cost, labour cost and other allocable interest, administrative and finance expense net of interest and other finance income.

Interest income is recognized on accrual basis. Dividend is recognised when right to receive is established.

1.5 Fixed assets and depreciation

(a) Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all expenses incidental to acquisition of the assets.

(b) Depreciation is provided at rates prescribed in Schedule XIV to the Companies Act, 1956 using written down value method. © Depreciation is provided from the month of utilisation / purchase of asset.

1.6 Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal / external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to is less than it s carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

1.7 Investments

Long term investment s are stated at cost less provision for diminution in value other than temporary, if any.

Current investment s are stated at lower of cost or fair value in respect of each separate investment.

1.8 Inventories

Inventories are stated at lower of cost and net realisable value. Construction Work-in-progress includes cost of land, construction cost, other allocable interest and administrative expenses incidental to the projects undertaken by the Company.

1.9 Borrowing costs

Borrowing cost that the directly attributable to project are recognised as an expense in the period in which they are incurred as a part of the project cost.

1.10 Foreign exchange transactions

Foreign exchange transactions are recorded using the rate of exchange on the date of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognised in the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognised in the statement of profit and loss.

1.11 Taxation

a) Current tax: Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year computed in accordance provisions of the income Tax Act, 1961.

b) Deferred tax : Deferred tax arising on account of timing differences between accounting income and taxable income for the period and which are capable of reversal in one or more subsequent period s and the corresponding deferred tax liabilties or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future.

1.12 Provisions and contingencies

The Company creates a provision when there is a present obligation as a result of a past even that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a posible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assesssed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

1.13 Earnings per share

The basic earnings per share is computed by dividing the net profit / loss after tax attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share and also the weighted average number of equity shares, which could have been issued on the conversions of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are included.

1.14 Segment Reporting

(a) Segment Revenue and Expense

Revenue and Expense have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

(b) Segment Assets and Liabilities

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on or reasonable basis have been disclosed as "Unallocable"

(c) Accounting Policies

The accounting policies consistently used in the preparation of the financial statements are also applied to item of revenue and expenditure in individual segments.


Mar 31, 2012

1.1 Basis of preparation

The accompanying financial statements are prepared and presented under the historical cost convention, on the accrual basis of accounting and comply with the Accounting Standards prescribed by Companies (Accounting Standard) Rules, 2006 (to the extent applicable) and issued by the Institute of Chartered Accountants of India (ICAI') to the extent applicable, and are in accordance with the generally accepted accounting principles ('GAAP') in India and the relevant provisions of the Companies Act, 1956, to extent applicable. The financial statement s are presented in Indian rupees.

This is the first year of application of the revised schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the Company. The revised Schedule VI introduces conceptual changes as well as new disclosures in the financial statements. These include classification of all assets and liabilities into current and non-current. The previous year figures have also undergone a reclassification to comply with the requirements of the revised Schedule VI.

1.2 Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities on the date of financial statements. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates and assumptions used in preparing the accompanying financial statements. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Current and non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realized in, or is intended for sale or consumption in, the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realized within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets.

All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria :

a) it is expected to be settled in the Company's normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is due to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities.

All other liabilities are classified as non-current.

1.4 Revenue recognition

Revenue from constructed properties is recognized on the "percentage of completion method" net of cost of projects. Cost of project includes cost of land, cost of stores and spares, construction cost, labour cost and other allocable interest, administrative and finance expense net of interest and other finance income.

Interest income is recognized on accrual basis. Dividend is recognized when right to receive is established.

1.5 Fixed assets and depreciation

(a) Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all expenses incidental to acquisition of the assets.

(b) Depreciation is provided at rates prescribed in Schedule XIV to the Companies Act, 1956 using written down value method.

(c) Depreciation is provided from the month of utilization / purchase of asset.

1.6 Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal / external factors. If any such indication exists, the Company estimates the recoverable amount ofthe asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to is less than it s carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

1.7 Investments

Long term investment s are stated at cost less provision for domination in value other than temporary, if any.

Current investment s are stated at lower of cost or fair value in respect of each separate investment.

1.8 Inventories

Inventories are stated at lower of cost and net realizable value. Construction Work-in-progress includes cost of land, construction cost, other allocable interest and administrative expenses incidental to the projects undertaken by the Company.

1.9 Borrowing costs

Borrowing cost that the directly attributable to project are recognized as an expense in the period in which they are incurred as a part of the project cost.

1.10 Foreign exchange transactions

Foreign exchange transactions are recorded using the rate of exchange on the date of the respective transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of profit and loss ofthe year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the statement of profit and loss.

1.11 Taxation

a) Current tax: Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year computed in accordance provisions of the income Tax Act, 1961.

b) Deferred tax : Deferred tax arising on account of timing differences between accounting income and taxable income for the period and which are capable of reversal in one or more subsequent period s and the corresponding deferred tax liabilties or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future.

1.12 Provisions and contingencies

The Company creates a provision when there is a present obligation as a result of a past even that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a posible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assesssed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

1.13 Earnings per share

The basic earnings per share is computed by dividing the net profit / loss after tax attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earnings per share comprises the weighted average number of shares considered for deriving earnings per share and also the weighted average number of equity shares, which could have been issued on the conversions of all dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit / loss per share are included.

1.14 Segment Reporting

(a) Segment Revenue and Expense

Revenue and Expense have been identified to a segment on the basis of relationship to operating activities of the segment. Revenue and Expenses which relate to enterprises as a whole and are not allocable to a segment on a reasonable basis have been disclosed as "Unallocable".

(b) Segment Assets and Liabilities

Segment assets and segment liabilities represent assets and liabilities in respective segments. Investments, tax related assets and other assets and liabilities that cannot be allocated to a segment on or reasonable basis have been disclosed as "Unallocable"

(c) Accounting Policies

The accounting policies consistently used in the preparation of the financial statements are also applied to item of revenue and expenditure in individual segments.


Mar 31, 2010

The financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) applicable in rndia. GAAP comprises of accounting standards notified by the Central Government of India under Section 211 (3C) of the Companies Act. 1956, other pronouncements of the Institute of Chartered Accountants of rndia and the relevant provisions of the Companies Act, 1956 (theAct") The summary of the significant accounting policies is set out below-

2.1 Basis of Preparation

Thefinancial statements havebeen prepared andpresented under the historical cost convention on the accrual basis of accounting and comply with the accounting standards prescribed by Companies (Accounting Standards) Rules, 2006 issued by the Institute of Chartered Accountants of Indiaand the relevant provisions of the Companies Act, 1956,totheextentapphcable.

2.2 Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

2.3 Fixed Assets and .Depreciation

(a) Fixed assets are stated at historical cost less accumulated depreciation. Cost includes all expenses incidental to acquisition of the assets.

(b) Depreciation is provided at rates prescribed in Schedule XIV to the Companies Act,1 956 using written down value method.

(c) Depreciation is provided from the month of utihsation / purchase of asset.

2.4 Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to amaximum of depreciable historical cost.

2.5 Investments

Longterm in vestments are stated at cost less provision for dimunition in value other than temporary, if any Current investments are stated at lower of cost or fair value inrespect of each separate investment.

2.6 Inventories

Inventories are stated at lower of cost and net realisable value. Construction Work-in-Progress includes cost of land, construction cost, other allocated interest and administrative expenses incidental to the projects undertaken by the Company.

2.7 Borrowing costs

Borrowing Costs that are directly attributable to project are recognised an expense in the period in which they are incurred as a part ofthe project cost.

2.8 Revenue Recognition

Revenue from constructed properties is recognised on the "percentage of completion method" net of cost of projects. Merest income is recognized on accrual basis. Dividend is recognised when right to receive is established Cost of project includes cost of land cost of store and spares, construction cost, labour cost other allocated interest, administrative & finance expenses net of interest income and finance income.

2.9 Taxation

(a) Currenttax: Currenttax is determined as the amount of tax payable in respect of estimatedtaxable income for the year computed in accordance with provisions of them come Tax Act, 1961.

(b) Deferred tax: Deferred tax arising on account oftiming differences between accounting income and taxable income for the period and which are capable of reversal in one ormore subsequent periods and the corresponding deferred tax liabilities or Lsets are recognised usmg the tax rates that have been enacted or substantively enactedbythebalancesheetdate. Deferred tax assets are recognised only to the extent there is reasonable certainty that the"assets canbe realised in future.

2.10 Provisions and Contingencies

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

2.11 Earnings Per Share

The basic earnings per share is computed by dividing the net profit /loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reporting period. The number of shares used in computing diluted earning per share comprises the weighted average number of shares considered for deriving earnings per share, and also theweightedaveragenumberofequity shares, which could have been issued on the conversions ofall dilutive potential shares. In computing dilutive earnings per share, only potential equity shares that are dilutive and that reduce profit /loss per share are included.

 
Subscribe now to get personal finance updates in your inbox!