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Accounting Policies of SV Global Mill Ltd. Company

Mar 31, 2018

1. SIGNIFICANT ACCOUTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing the opening Ind AS Balance Sheet as at 01st April 2016 for the purposes of the transition to Ind AS.

1.1. 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:

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

- It is held primarily for the purpose of being traded;

- It is expected to be realised within 12 months after the reporting date; or

- 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:

- It is expected to be settled in the Company''s normal operating cycle;

- It is held primarily for the purpose of being traded;

- It is due to be settled within 12 months after the reporting date; or

- There is no an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. 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 the current portion of financial liabilities some part of which may be noncurrent. All other liabilities are classified as non-current.

Deferred tax assets are classified as non-current assets.

Operating cycle

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and non-current.

3.2. Property, Plant and Equipment

Recognition and Measurement

Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of taxes, duties, freight, installation allocated incidental expenditure during construction / acquisition, borrowing cost and necessary adjustments in the year of final settlement. The cost of Property, Plant and Equipment also includes the present value of obligations arising, if any, from decommissioning, restoration and similar liabilities related to the same.

The present value of those costs (decommission and/or restoration costs) is capitalised as an asset and depreciated over the useful life of the asset.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located. If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Administration and general overhead expenses attributable to construction of property, plant and equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis to the cost of related assets.

Capital Work-in-Progress

Capital work-in-progress includes assets under construction and cost attributable to construction of assets not ready for use before the year end.

Subsequent Expenditure

Subsequent expenditure are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.

Depreciation

I. Depreciation is provided on the cost of the property, plant and equipment less their estimated residual values over their estimated useful lives, and is recognized in the Statement of Profit and Loss. The company depreciates property, plant and equipment as per guidance set out in Schedule II of the Companies Act, 2013 on written down value (WDV) method except in respect of the assets mentioned (ii) below

II. Assets costing up to INR 5,000 are depreciated fully in the year of purchase.

III. In the year of commissioning/retirement of assets, depreciation is calculated on pro-rata basis, for the period the asset is available for use.

Derecognition

The gain or loss arising from the derecognition of an item of property, plant and equipment is be included in the Statement of Profit and Loss.

3.3. Inventories

Land held as Stock-in-Trade for Property Development is stated at lower of cost and net realizable value.

3.4. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial Asset

Initial Recognition and Measurement

All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets are initially measured at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.

Classification

The company classifies its financial assets in the following categories

- Financial Assets at amortised cost

- Financial Assets measured subsequently at fair value (either through other comprehensive income, or through profit or loss)

The classification depends upon the company''s business model for managing the financial assets and the contractual cash flows of the financial asset.

Debt Instruments

A financial asset being ''debt instrument'' is measured at the amortised cost if both of the following conditions are met:

- The financial asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Assets that do not meet the criteria for amortised cost or Fair Value through Other Comprehensive Income (FVOCI) are measured at Fair Value through Profit or Loss (FVTPL).

Equity Instruments

The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at fair value. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss.

Subsequent Measurement

Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss.

Financial assets at FVOCI or FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in OCI or the statement of profit and loss respectively. Dividends/Interest Income from such investments are recognised in profit or loss as other income when the Company''s right to receive payments is established.

Impairment

The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.

For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance computed using ECL model, is recognised as an impairment gain or loss in the statement of profit and loss.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately. Where the Company elects to measure FVTPL, changes in the fair value of such financial assets are recognised in the statement of profit and loss.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any gain or loss on derecognition is recognised in the statement of profit and loss.

Financial Liability

Recognition and initial measurement

All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.

Classification and subsequent measurement

Financial liabilities are classified as measured at amortised cost. Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expenses are recognised in the statement of profit and loss.

Derecognition

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.

Any gain or loss on derecognition is also recognised in the statement of profit and loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the Balance Sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.

3.5. Investment in subsidiaries / associates:

Investment in subsidiaries / associates are measured at cost less provision for impairment.

3.6. Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

3.7. Impairment of non-financial assets:

The carrying amounts of the Company''s non-financial assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the Company estimates the asset''s recoverable amount..

Impairment losses are provided for Cash Generating Units (CGU) and also for individual assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount and is recognised in the Statement of Profit & Loss

On review of impairment loss at the end of each reporting period any decrease in or non-existence of impairment loss are recognised

3.8. Prior period items, Accounting estimates and effect of change in Accounting Policy

Prior period errors of material nature, are corrected retrospectively by restating the comparative amounts for the prior period(s) presented in which the error occurred or if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.

The effect of change in accounting estimate is recognised prospectively in the Statement of Profit and Loss except where they relate to assets and liabilities, the same is recognised by adjusting the carrying amount of related assets/liability/equity in the period of change.

Changes in accounting policy due to initial application of Ind AS are dealt with in accordance with specific transitional provisions, if any in the Ind AS. In other cases, the changes in accounting policy are recognised retrospectively, the application of such change is limited to the earliest period practicable.

3.9. Events occurring after the balance sheet date

Events occurring after the balance sheet date are those events that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors. Such events are disclosed or given effect to in the financial statements as provided for in Ind AS 10.

3.10. Revenue

Revenue is recognized to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue from sale is recognized when significant risks and rewards of ownership are transferred to the customers. Revenue is measured at the fair value of the consideration received/receivable net of discounts

Revenue from cancellation of contracts

Revenue from cancellation of contracts in the usual course of real estate business is recognised when the compensation/interest/fee payable to the company is determined and agreed between the parties.

Revenue from Rentals

Revenue includes revenue earned through rental of company''s properties invoiced for fixed monthly charges or time proportionate basis.

Interest Income

Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying value of a financial asset. While calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options), but does not consider the expected credit losses.

Dividend

Dividend income is recognized in the Profit and Loss account when the right to receive the same is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be reliably measured.

Others

Sale proceeds of scrap are taken into other non-operating income in the year of sale.

3.11. Borrowing Costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences in respect of long term foreign currency liabilities of the respective asset to the extent regarded as an adjustment to the borrowing costs.

Borrowing costs (net of interest earned on temporary investments) directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Interest is computed on weighted average cost of funds deployed.

All other borrowing costs are expensed in the year in which they occur

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

3.12. Income Taxes

Income tax expense comprises current and deferred tax. It is recognized in profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for:

- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit and loss;

- temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.

Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Minimum Alternate Tax

Minimum Alternative Tax (''MAT'') expense under the provisions of the Income-tax Act, 1961 is recognised as an asset when it is probable that future economic benefit associated with it in the form of adjustment of future income tax liability, will flow to the Company and the asset can be measured reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company becomes liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting date and is written down to reflect the amount that is reasonably certain to be set off in future years against the future income tax liability.

3.13. Earnings per Share

The Company presents basic and diluted earnings/ (loss) per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.

3.14. Provisions and Contingencies Provisions

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation.

Contingent liabilities

Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered as Contingent Liabilities unless converted into demand.

Contingent Assets

Contingent assets are neither recognized nor disclosed in the financial statements.

3.15. Segment Reporting

Information reported to the Board of Directors who is chief operating decision maker (CODM) for the purposes of resources allocation and assessment of segment performance focuses on the types of services provided.

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.

3.16. Leases

Determination whether an arrangement contains a lease

The determination of whether an arrangement is, or contains, a lease is based on the substance of an arrangement at inception date: whether fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.

At inception or on reassessment of the arrangement that contains a lease, the payments and other consideration required by such an arrangement are separated into those for the lease and those for other elements on the basis of their relative fair values.

Where the Company is the lessee

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of profit and loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Property, Plant and Equipment acquired under finance leases is depreciated over the asset''s useful life or over the shorter of the asset''s useful life and the lease term, if there is no reasonable certainty that the Company will obtain ownership at the end of the lease term.

Where the Company is the lessor

Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of the asset are classified as operating leases. Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the Balance Sheet based on their nature.


Mar 31, 2016

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis, in accordance with Generally Accepted Accounting Principles and the applicable Accounting Standards notified under section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014 in the principles of a going concern. The accounting policies adopted in the preparation of the financial statements are consistent with those of the previous year.

2. 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 the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes, requiring a material adjustment in the carrying amounts of assets or liabilities in the future periods. Difference between the actual results and estimates are recognized in the period in which the results are known or materialized.

3. INVENTORIES

Land and Buildings held as Stock-in-Trade for Property Development are stated at lower of cost and net realizable value.

4. REVENUE RECOGNITION

Revenue is recognized to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Sales and other income are accounted on accrual basis. Revenue from sale is recognized when significant risks and rewards of ownership are transferred to the customers. Dividend income is recognized when the right to receive the same is established. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.

5. FIXED ASSETS AND DEPRECIATION

i. Fixed Assets are stated at cost (net of CENVAT / TNVAT wherever applicable) inclusive of expenses directly relating to bringing the asset to its working condition for the intended use, less accumulated depreciation. Interest on borrowing utilized for acquisition of fixed assets is capitalized and considered as cost of the asset concerned if capitalization criteria are met.

ii. Depreciation is provided on Written Down Value method in accordance with Schedule II of the Companies Act, 2013.

6. INVESTMENTS

Long term investments are stated at cost. Diminution in the value of investments other than temporary in nature is provided for.

7. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

8. SEGMENT REPORTING

Property development is the main business of this company and this is the only reportable segment.

9. LEASES

Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Lease rental received in respect of operating lease arrangements are recognized as income in the Statement of Profit and Loss on a straight line basis over the lease term.

10. TAXES ON INCOME

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in the future. In situations where the company has unabsorbed depreciation or carried forward losses for tax purposes, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of 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 realized. 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

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets.

11. MAT CREDIT

Minimum alternate tax (MAT) payable in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as "MAT Credit Entitlement." The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

12. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period

13. IMPAIRMENT OF ASSETS

All assets other than inventories are reviewed for impairment at every balance sheet date for events or changes in circumstances that indicate that the carrying amount may not be recoverable. There is no impairment loss during the year.

14. PROVISION AND CONTINGENCIES

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognized but disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

Terms/Rights attached to various classes of Shareholders

Equity Shareholders:

Every shareholder is entitled to such rights as to attend the meeting of the shareholders, to receive dividend distributed and also has a right in the residual interest in the assets of the Company. Every shareholder is also entitled to right of inspection of documents as provided in the Companies Act, 2013.

Preference Shareholders:

Every shareholder is entitled to the fixed rate of dividend (cumulative) as per the terms of issue. They are entitled to the capital in preference to the equity shareholders in case of liquidation.

Terms of Issue and Redemption of Cumulative Redeemable Preference Shares: (CRPS)


Mar 31, 2014

1. CORPORATE INFORMATION

S V Global Mill Limited was incorporated on 30th October 2007 under the Companies Act, 1956. The company is engaged in the business of property development.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis, in accordance with Generally Accepted Accounting Principles and the applicable Accounting Standards in the principles of a going concern.

3. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known or materialized.

4. INVENTORIES

Land and Buildings held as Stock-in-Trade for Property Development are stated at lower of cost and net realizable value.

5. REVENUE RECOGNITION

Sales and other income are accounted on accrual basis. Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Dividend income is recognized when the right to receive the same is established.

6. FIXED ASSETS AND DEPRECIATION

i. Fixed Assets are stated at cost (net of CENVAT / TNVAT wherever applicable) inclusive of expenses directly relating to installation, less accumulated depreciation. Interest on borrowing utilized for acquisition of fixed assets is capitalized and considered as cost of the asset concerned.

ii. Depreciation is provided on Written Down Value method in accordance with Schedule XIV of the Companies Act, 1956.

7. INVESTMENTS

Long term investments are stated at cost. Diminution in the value of investments other than temporary in nature is provided for. Current investments are stated at cost or fair value, whichever is lower.

8. BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.

9. SEGMENT REPORTING

By virtue of approved scheme of demerger by the High Court of Madras, the Property Division of Binny Limited got demerged and stands transferred to and vested in this company on a going concern basis. The entire operation is from the appointed date, i.e. 01 -01 -2010. Property Development is the main business of this company and this is the only reportable segment.

10. LEASES

Lease rental in respect of operating lease arrangements are credited to income in the Statement of Profit and Loss.

11. TAXES ON INCOME

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realised in the future.

12. IMPAIRMENT OF ASSETS

All assets other than inventories are reviewed for impairment at every balance sheet date for events or changes in circumstances that indicate that the carrying amount may not be recoverable. There is no impairment loss during the year.

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of '' resources. Contingent liabilities are not recognized but disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2013

(i) SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP).The financial statements comply with the applicable mandatory Accounting Standards.

(ii) Revenue Recognition

Revenue is recognized on accrual basis with provision made for known losses and expenses. (iii) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation.

(iv) Depreciation

Depreciation is provided on Written Down Value Method at the rates specified in SCHEDULE XIV to the Companies act, 1956.

(v) Investments

Long Term Investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent.

Land and Buildings held as Stock - in - Trade for Property Development are stated at the lower of cost and net realizable value.

(vi) Foreign Currency Transactions

There are no foreign currency transactions during the period.

(vii) Provision for Taxation

Provision for Current Income Tax is not made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

(viii) Cash Flow Statement

The Cash flow statement is prepared under the indirect method as per accounting standard 3- Cash Flow Statements.

(ix) Earnings per Share

The company reports basic and diluted earnings per share in accordance with the accounting standards 20- Earnings per share.

(x) Segment Reporting

By virtue of approved Scheme of the Demerger, by the High Court of Madras, the Property Division of the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis. The entire operation is from the date of appointed date that is with effect from 01 -01-2010. Property Division of Binny Limited is the main business of this company and this is the only reportable segment.

(xi) Provision and Contingencies

The Company creates a provision when there is 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 obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.


Mar 31, 2012

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP).The financial statements comply with ,, / the applicable mandatory Accounting Standards.

2. Revenue Recognition

Revenue is recognized on accrual basis with" provision made for known losses and expenses.

3." Fixed Assets * -.

"Fixed assets are stated at cost less accumulated depreciation.

4. Depreciation

Depreciation is provided on Written Down Value Method at the rates specified in SCHEDULE XIV to the Companies- act, 1956. .

5. Investments

Long Term investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent. ''

6. Inventories

Land and Buildings held as Stock - in - Trade for Property Development are stated at the lower of cost and net realizable value.

7. Foreign Currency Transactions

There are no foreign currency transactions during the year.

8. Provision for Taxation

Provision for Current Income Tax is pot made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

9. Cash Flow Statement

The Cash flow statement is prepared under the indirect method as per accounting standard 3 -Cash Flow Statements.

10. Earnings per Share

The company reports basic and diluted earnings per share in accordance with the accounting standards 20- Earnings per share.

11. Segment Reporting

By virtue of approved Scheme of the Demerger, by the High Court of Madras, the Property Division of .the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis.The entire operation is from the date of appointed date that is with effect from 01-01- 2010. Property Division of Binny Limited is the main business of this company and this is the only reportable segment.

12. Provision and Contingencies

The Company creates a provision when there is 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 obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will npt require an odtflow of resources or where a reliable estimate of the obligation cannot be made.


Mar 31, 2011

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP). The financial statements comply with the applicable mandatory Accounting Standards.

2. REVENUE RECOGNITION

Revenue is recognized on accrual basis with provision made for known losses and expenses.

3. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

4. DEPRECIATION

Depreciation is provided on Written Down Value method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

5. INVESTMENTS

Long Term Investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent.

6. INVENTORIES

Land and Buildings held as Stock-in-trade for Property Development are stated at the lower of cost and net realizable value.

7. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is not made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

9. CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

10. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

11. SEGMENT REPORTING

By virtue of approved Scheme of the Demerger, by the High Court of Madras, the Property Division of the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis. The entire operation is from the date of Appointed Date i.e. with effect from 01-01- 2010. Property Division of Binny Limited is the main business of this Company and this is the only reportable segment.

12. PROVISION AND CONTINGENCIES

The company creates a provision when there is 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 obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.


Mar 31, 2010

1. SYSTEM OF ACCOUNTING

The financial statements are prepared under the historical cost convention in accordance with Indian Generally Accepted Accounting Principles (GAAP). The financial statements comply with the applicable mandatory Accounting Standards.

2. REVENUE RECOGNITION

Revenue is recognized on accrual basis with provision made for known losses and expenses.

3. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation.

4. DEPRECIATION

Depreciation is provided on Written Down Value method at the rates specified in SCHEDULE XIV to the Companies Act, 1956.

5. INVESTMENTS

Long Term Investment is stated at cost. The diminution in value of investment is not recognized unless it is considered permanent.

6. INVENTORIES

Land and Buildings held as Stock-in-trade for Property Development are stated at the lower of cost and net realizable value.

7. FOREIGN CURRENCY TRANSACTIONS

There are no Foreign currency transactions during the year.

8. PROVISION FOR TAXATION

Provision for Current Income Tax is not made in view of the loss for the current period. Deferred tax assets and liabilities are measured using substantially enacted tax rates as on the Balance Sheet date. The Net Deferred Tax Asset is not recognized as a measure of prudence.

9. CASH FLOW STATEMENT

The Cash flow statement is prepared under the indirect method as per Accounting Standard 3 "Cash Flow Statements".

10. EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with the Accounting Standards - 20-''Earnings per Share''.

11. SEGMENT REPORTING

In terms of Sanctioned Scheme of the Demerger, by the High Court of Madras, the Property Division of the Binny Limited got demerged and stand transferred to and vested in this company on a going concern basis. The entire operation is from the date of Appointed Date i.e. with effect from 01-01- 2010. Presently property division is the only reportable segment.

12. PROVISION AND CONTINGENCIES

The company creates a provision when there is 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 obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

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