Mar 31, 2015
A) BASIS OF ACCOUNTING
The financial statements are prepared in accordance with the historical
cost convention & applicable accounting standards & generally accepted
accounting principles. These financial statements have been prepared in
compliance with all material aspects of the accounting standards
notified under section 133 and the other relevant provisions of the
Companies Act, 2013. The company follows mercantile system of
accounting generally & recognizes income & expenditure on accrual
basis, unless otherwise specifically provided.
Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles
b) USE OF ESTIMATES
The preparation of financial statement in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amount and assets and
liabilities & disclosure of contingent liabilities at the date of
financial statement and result of the operations during the reporting
period end. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates difference between the actual results and an
estimate is recognized in the period in which the results are known..
c) REVENUE RECOGNITION
Revenue from construction, development and sale of residential,
commercial and other units and projects is to be considered on
percentage of completion method as per the Guidance Notes on Revenue
Recognition issued by the ICAI. Accordingly amount received from the
customers which does not qualify for revenue recognition is accounted
as Current Liability titled as Advance from Customers under the
sub-head of other current liability.
The cost incurred on property development activities are carried as
inventories till such time as the outcome of the project can not be
estimated reliably and certain conditions are fulfilled.
d) FIXED ASSETS & DEPRECIATION
Fixed asset are stated at cost less accumulated depreciation. Cost
includes expenses to put to use of the assets. Depreciation on fixed
assets is provided on SLM method on the basis of the remaining useful
life of each assets as prescribed in Part C of Schedule II of the
Companies Act, 2013. Depreciation on additions during the year have
been provided on pro-rata basis. Further unit of asset having value up
to Rs.5000 have been directly charged to the Profit & Loss Account,
hence not considered for depreciation.
e) INVENTORIES
Inventories comprise finished property and properties under
construction (WEP). Work In Progress comprise the cost of land,
development rights, TDR, Construction & Development Cost, cost of
materials, services and other overheads related to the projects under
construction. Inventory is valued at cost including all incidental cost
or net realizable value whichever is lower.
f) LEASE
In respect of operating leases, lease rentals are expensed with
reference to the term of Lease and other considerations except lease
rentals pertaining to the period upto the assets put to use, which are
capitalized.
g) BORROWING COST
Borrowing costs attributes to fixed assets during construction period
are capitalized. Other borrowing costs a recognized as an expense in
the profit and loss account.
h) EMPLOYEES RETIREMENT BENEFITS
Employer contributions towards PF & ESIC are charged to the P&L
Account. Liabilities on account of retirement benefits such as Gratuity
are charged to the P&L on the basis of Valuation done by independent
actuaries at the close of the year.
Leave encashment calculated at the end of every financial year for the
leave not availed during the year is in cashed and paid off to the
employee as per companies rule.
i) INVESTMENTS
Investments are accounted and valued at cost plus incidental expenses
incurred for acquisition All investments are classified in two
categories t.e. Long term investments and current investments. Further
in case of long term investment diminution, if any, other than
temporary, is provided.
j) IMPAIRMENT
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
profit and loss in the year in which an asset is identified as
impaired. The impairment loss recognized in the prior accounting period
is reversed if there has been a change in the estimate of recoverable
amount.
k) ACCOUNTING FOR TAXES ON INCOME
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of the I. Tax Act,
1961.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference taxable incomes & accounting
incomes that originate in one period & are capable of reversal in one
or more subsequent period.
Minimum Alternate Tax (MAT) paid in a year is charged to the statement
of Profit & Loss as current Tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that Company will pay normal income tax during the specified
period, i.e. the period for which MAT credit is allowed to be carried
forward.
l) Provisions, contingent liabilities & assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of any
past events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognized, but are disclosed in the
notes. Contingent assets are neither recognized, nor disclosed in the
financial statement.
m) Cash Flow Statement:.
Cash flow are reported using the indirect method, whereby profit (loss)
before extra ordinary items is adjusted for the effects of the
transactions on non cash nature. The cash flow from operating,
investing and financing activities of the company are segregated based
on available information.
n) Earnings Per Share
The Earning considered in ascertaining the Company's earning per Shares
(EPS) comprise of the net profit after tax to equity shares holders.
Basic earnings per share are calculated by dividing the Net Profit or
Loss 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
profits attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares, if any.
Mar 31, 2014
A) BASIS OF ACCOUNTING
The financial statements are prepared in accordance with the historical
cost convention & applicable accounting standards & generally accepted
accounting principles. The company follows mercantile system of
accounting generally & recognizes income & expenditure on accrual
basis. Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles
b) USE OF ESTIMATES
The preparation of financial statement in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that effect the reported amount and assets and
liabilities & disclosure of contingent liabilities at the date of
financial statement and result of the operations during the reporting
period end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and an
estimate is recognized in the period in which the results are known.
c) REVENUE RECOGNITION
Revenue from construction, development and sale of residential,
commercial and other units and projects is to be considered on
percentage of completion method as per the Guidance Notes on Revenue
Recognition issued by the ICAI. Accordingly amount received from the
customers which does not qualify for revenue recognition is accounted
as Current Liability titled as Advance from Customers under the
sub-head of other current liability.
The cost incurred on property development activities are carried as
inventories till such time as the outcome of the project can not be
estimated reliably and certain conditions are fulfilled.
d) FIXED ASSETS & DEPRECIATION
Fixed asset are stated at cost less depreciation. The cost is inclusive
of interest and incidental expenses incurred during the construction
period
Depreciation on fixed assets is provided on S.L.M method at the rate
prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on
additions during the year have been provided on pro-rata basis.
e) INVENTORIES
Inventories comprises finished property and properties under
construction (WIP). Work In Progress comprise the cost of land,
development rights, TDR, Construction & Development Cost, cost of
materials, services and other overheads related to the projects under
construction.
Inventory is valued at cost including all incidental cost or net
realizable value whichever is lower.
f) LEASE
In respect of operating leases, lease rentals are expensed with
reference to the term of Lease and other considerations except lease
rentals pertaining to the period up to the assets put to use, are
capitalized.
g) BORROWING COST
Borrowing costs attributes to fixed assets during construction period
are capitalized. Other borrowing costs a recognized as an expense in
the profit and loss account
h) EMPLOYEES RETIREMENT BENEFITS
Employer contributions towards PF & ESIC are charged to the P&L
Account.
Liabilities on account of retirement benefits such as Gratuity is
charged to the P&L on the basis of Valuation done by independent
actuaries at the close of the year.
Leave encashment calculated at the end of every financial year for the
leave not availed during the year is in cashed and paid off to the
employee as per companies rule.
i) INVESTMENTS
Investments are accounted and valued at cost plus incidental expenses
incurred for acquisition All investments are classified in two
categories i.e. Long term investments and current investments. Further
in case of long term investment diminution, if any, other than
temporary, is provided.
j) IMPAIRMENT
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
profit and loss in the year in which an asset is identified as
impaired. The impairment loss recognized in the prior accounting period
is reversed if there has been a change in the estimate of recoverable
amount.
k) ACCOUNTING FOR TAXES ON INCOME
The provision for taxation is ascertained on the basis of assessable
profits computed in accordance with the provision of the I. Tax Act,
1961.
Deferred tax is recognized, subject to the consideration of prudence,
on timing difference, being the difference taxable incomes & accounting
incomes that originate in one period & are capable of reversal in one
or more subsequent period.
Minimum Alternate Tax (MAT) paid in a year is charged to the statement
of Profit & Loss as current Tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that Company will pay normal income tax during the specified
period, i.e. the period for which MAT credit is allowed to be carried
forward.
l) Provisions, contingent liabilities & assets:
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of any
past events and it is probable that there will be outflow of resources.
Contingent liabilities are not recognized, but are disclosed in the
notes. Contingent assets are neither recognized, nor disclosed in the
financial statement.
m) Cash Flow Statement:
Cash flow are reported using the indirect method, whereby profit (loss)
before extra ordinary items is adjusted for the effects of the
transactions on non cash nature. The cash flow from operating,
investing and financing activities of the company are segregated based
on available information.
n) Earnings Per Share
The Earning considered in ascertaining the Company''s earning per Shares
(EPS) comprise of the net profit after tax to equity shares holders.
Basic earnings per share are calculated by dividing the Net Profit or
Loss 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
profits attributable to equity shareholders and the weighted average
number of shares outstanding during the period are adjusted for the
effects of all dilutive potential equity shares, if any.