Mar 31, 2018
1. Corporate information
Tirupati Sarjan Limited (the ''Companyâ) is a public limited Company incorporated in India with its registered office at A - 11, 12, 13 Satyamev Complex, Opp Gujarat High Court, S.G. Highway, Ahmedabad - 380060, Gujarat. The equity shares of the Company are listed on recognized stock exchange in India. The Company is principally engaged in the civil construction and real estate development business. The Company specialized in developing residential, commercial and government projects across Asia and Africa; in particular India where we have number of projects in development. The company has undertaken many projects of construction of hospitals, colleges and infrastructure development work like road development, canals bridge etc. In a short span of time Tirupati group has curved a niche for itself for providing affordable residential and commercial real estate solutions that offer value for money to its customer.
2. Bases of Preparation
2.1 Statement of Compliance:
The financial statements have been prepared in accordance with Ind AS notified under the Companies (''Indian Accounting Standards) Rules, 2015 as amended and notified under Section 133 of the Companies Act, 2013 (âthe Actâ) and other relevant provisions of the Act and other accounting principles generally accepted in India. These are the Companyâs first Ind AS financial statements.
Up to the financial year ended 31stMarch, 2017, the Company prepared its financial statements in accordance with the requirements of the previous applicable GAAP, which included the Standards notified under the Companies (Accounting Standards) Rules, 2006 notified under Section 133 of the Act and other relevant provisions of the Act.
First-time adoption:
In accordance with Ind AS 101 on First-time adoption of Indian Accounting Standards, the Companyâs first Ind AS financial statements include, three balance sheets viz. the opening balance sheet as at 01stApril, 2016 and balance Sheets as at 31stMarch, 2017 and 2018 and two statements each of profit and loss, cash flows and Changes in equity for the years ended 31stMarch, 2017 and 2018 together with related notes. The same accounting policies have been used for all periods presented, [except where the Company has made use of exceptions or exemptions allowed under Ind AS 101 in the preparation of the opening Ind AS balance sheet which have been disclosed in note2.1.1]
2.2 Basis of Measurement
The Financial Statements have been prepared on the historical cost basis.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
2.3 Functional and presentation currency
Indian rupee is the functional and presentation currency.
2.4 Use of estimates
The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions.
These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.
Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements are:
- Revenue recognition of construction services based on percentage of completion method
- Useful lives of Property, plant and equipment
- Valuation of financial instruments
- Provisions and contingencies
- Income tax and deferred tax
- Measurement of defined employee benefit obligations
3. Significant Accounting Policies
3.1 Revenue recognition
Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
- Contract Revenue :
When the outcome of a fixed price construction contract cannot be estimated reliably, contract revenue is recognized only to the extent of cost incurred that it is probable will be recoverable.
When the outcome of a fixed price contract is ascertained reliably, contract revenue is recognized by reference to the stage of completion of the contract activity at the end of the reporting period.
The outcome of a fixed price construction contract can be estimated reliably when total contract revenue can be measured reliably, it is probable that economic benefits associated with the contract will flow to the company, contract costs to complete the contract and stage of contract completion at the end of the reporting period can be measured reliably and contract cost attributable to the contract can be identified and measured reliably.
Percentage of completion is determined based on the survey of work performed at the end of each year. The effect of a change in the estimate of contract revenue or contract costs, or the effect of a change in the estimate of the outcome of a contract, is accounted for as a change in accounting estimate and the effect of which are recognized in the Statement of Profit and Loss in the period in which the change is made and in subsequent periods.
Contract revenue comprises the initial amount of revenue agreed in the contract, the variations in contract work, claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable of being reliably measured. Contract revenue is measured at the fair value of the consideration received or receivable.
Contract cost associated with contract revenue is recognized as expense by reference to the stage of completion of the contract activity at the end of the reporting period. Contract cost comprises of cost that relate directly to the specific contract, cost that are attributable to contract activity in general and can be allocated to the contract and such other cost as are specifically chargeable to the customer under the terms of the contract.
An expected loss on construction contract is recognized as an expense immediately when it is certain that the total contract costs will exceed the total contract revenue.
- Interest Income :
Interest income is recognized on a time proportion basis taking into account the amount outstanding and applicable interest rate.
Interest income is recognized using effective interest method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through expected life of the financial asset to the gross carrying amount of the financial asset. When calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instrument but does not consider the expected credit loss.
- Dividend Income :
Dividend Income is recognized when right to receive the same is established.
Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises the purchase price, borrowing cost if capitalization criteria are met and any attributable cost of bringing the assets to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.
For transition to Ind AS, the carrying value of Property Plant and Equipment under previous GAAP as on 01 April 2016 is regarded as its cost. The carrying value was original cost less accumulated depreciation and cumulative impairment(if any).
Gain or loss arising from de-recognition of property, plant & equipment are measured as the difference between the net disposal proceeds and carrying amount of the asset and are recognized in the statement of profit and loss when the asset is derecognized.
Depreciation is provided for all Property, Plant and Equipment on straight-line method such as useful life of assets is given under Companyâs Act 2013.
Depreciation is provided for all Property, Plant and Equipment as per the useful life prescribed in the Schedule II of the Companies Act, 2013 except in respect of plant and machineries used other than in mining activity, where less useful life is considered than those prescribed in schedule II.
The residual values, useful lives, and methods of depreciation of Property plant and equipment are reviewed at the end of each reporting period and adjusted prospectively, if appropriate.
The functional currency of the Company is the Indian rupee. These financial statements are presented in Indian rupees.
3.3 Intangible Assets
An Intangible asset is recognized, only where it is probable that future benefits attributable to the asset will accrue to the enterprise and the cost can be measured reliably.
Intangible assets are stated at cost, less accumulated amortization and impairment losses, if any.
Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as intangible assets under development.
Intangible assets are amortized over their estimated useful life. The estimated useful life of the intangible assets and the amortization period are reviewed at the end of each financial year and the amortization method is revised to reflect the changed pattern. Software being Intangible Assets used at Head office and work-shop are amortized over a period of three years and software used at Project sites are amortized over the project completion period.
In respect of intangible assets acquired / purchased during the year, amortization is provided on a pro-rata basis from the date on which such asset is ready to use. As on 31st march 2018 there is no Intangible Assets exists in Balance sheet.
3.4 Financial instruments
3.4.1 Initial Recognition
All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Transaction costs directly attributable to the acquisition of financial assets and financial liabilities at fair value through profit and loss are recognized immediately in statement of profit and loss.
3.4.2 De-recognition
The company de-recognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under Ind AS 109. A financial liability is de-recognized when obligation specified in the contract is discharged or cancelled or expires.
3.5 Income Tax
Income tax expense comprises current tax, deferred tax and MAT Credit.
- Current Tax
Current tax is recognized in statement of profit or loss.
Current tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
Current tax assets and current tax liabilities are offset, where company has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
- Deferred Tax
Deferred tax is recognized in statement of profit or loss.
Deferred tax liabilities are recognized for all taxable temporary differences.
Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax losses and carry forward of unused tax credits to the extent that it is probable that taxable profit will be available against which those temporary differences, losses and tax credit can be utilized, except when deferred tax asset on deductible temporary differences arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit or loss.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the tax rules and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and deferred tax liabilities are offset, where company has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
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 realized.
- MAT Credit
Minimum Alternate Tax (MAT) paid in a year is charged to statement of profit and loss as current Tax. The company recognizes MAT Credit available as an assets only when and 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 âAccounting for Credit Available in respect of Minimum Alternative Tax under Income Tax Act , 1961â , the said assets is created by way of credit to the statement of Profit and loss and shown as âDeferred Taxâ. The Company reviews the âMAT credit entitlementâ asset at each reporting date and writes down the assets to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.
3.6 Borrowing costs
Borrowing cost includes interest and other costs that company has incurred in connection with the borrowing of funds. Borrowing costs 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 capitalized as part of the cost of the respective asset.
All other borrowing costs are expensed in the year they occur.
Investment income earned on temporary investment of specific borrowing pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
3.7 Employee Benefits
Contribution to âDefined Contribution Schemesâ such as Provident Fund is charged to the statement of profit and loss account as incurred. Provident Fund contribution and Employee state insurance are made to the respective Government Administered. Company has no further obligation beyond this contribution charged in financial statement. The company recognizes contribution payable to the provident fund scheme and Employee state insurance as expenditure, when an employee renders the related service.
3.8 Provisions
A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
3.9 Contingent Liability
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.
3.10 Contingent Asset
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only be occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. The company does not recognize a contingent asset but discloses its existence in the financial statements.
3.11 Foreign Currency
a. Initial recognition
Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.
b. Conversion
Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.
c. Exchange difference
The company accounts for exchange differences arising on translation / settlement of foreign currency monetary items as below:
- Exchange differences arising from translation of long term foreign currency monetary items
- Long-term foreign currency monetary items recognized in the financial statements as on March 31, 2018 related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset.
- Other long-term foreign currency monetary items are accumulated in the âForeign Currency Monetary Item Translation Difference Accountâ and amortized over the remaining life of the concerned monetary item.
- Exchange differences on other monetary items
All other exchange differences are recognized as income or as expenses in the year in which they _arise._
3.12 Cash and cash equivalent
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank (including demand deposits) and in hand and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
3.13 Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
3.14 Inventories
Inventories are valued at lower of cost and net realizable value. Cost of materials is determined on first-in-first-out basis. Net realizable value is the estimated selling price less estimated cost necessary to make the sale.
3.15 Segment Reporting
An operating segment is component of the company that engages in the business activity from which the company earns revenues and incurs expenses, for which discrete financial information is available and whose operating results are regularly reviewed by the chief operating decision maker, in deciding about resources to be allocated to the segment and assess its performance. The companyâs chief operating decision maker is the Chief Executive Officer and Managing Director and it is disclosed as per Ind As 108 Segment Reporting.
Mar 31, 2016
1 Accounting Policies
I Background
TIRUPATI SARJAN LTD undertakes civil construction and real estate development business. The company specializes in developing residential, commercial and government projects across Asia and Africa; in particular India where we have number of projects under development. The company has undertaken many projects of construction of Hospitals colleges, and Infrastructural development work like Road development, canals bridges etc. In short span of time, Tirupati Group has curved a niche for itself for providing affordable residential and commercial real estate solutions that offer value for money to its customers.
II Significant Accounting Policies A Basis of Accounting
(i) Accounting Convention
The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and with the provisions of Companies Act ,2013(The Act) including Accounting standards specified under Section 133 of teh Act, read with Rule 7 of teh Companies (Accounts)Rules ,2014.The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
(ii) Use of Estimates
The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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 result and estimates are recognized in the period in which the results are known / materialized.
B Fixed Assets and Depreciation
(i) Fixed Assets :
1. Fixed Assets are stated at cost less accumulated depreciation less impairment losses, if any. Cost is inclusive of all identifiable expenditure incurred to bring the assets to their working condition for intended use.
2. When an asset is disposed off, demolished or destroyed, the cost and related depreciation are removed from the books of accounts and resultant profit or loss is reflected in the Profit & Loss Account.
3. Direct cost as well as related incidental and identifiable expenses incurred on acquisition of fixed assets that are not yet ready for their intended use or put to use as at the Balance Sheet date are stated as Capital Work in Progress.
4 Subsequent Expenditure related to an item of Tangible Assets are added to its book value only if they increase the future benefits from the existing asset beyond it previously assessed standard of performance.
5 Depreciation on Fixed Assets had been provided by Straight Line method on all assets and in the manner as specifies in Schedule-II to the Companies Act,2013
(ii) Depreciation :
Depreciation on fixed assets has been provided on Straight Line Method at the rates and in the manner as specified in Schedule II to the Companies Act, 2013.
(iii) Impairment :
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the current accounting period in which an asset is identified as impaired. The impairment loss recognized in earlier accounting periods is reversed if there has been a change in the estimate of recoverable amount as specified in Accounting Standard (AS 28) on impairment of assets.
C Investments :
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments and are carried at lower of cost and fair value determined on an individual investment basis whereas all other investments are classified as long-term investments and are carried at cost. Provision for diminution in value of long-term investment is made to recognize a decline other than temporary as specified in Accounting Standard (AS 13) on âAccounting for Investmentsâ.
D Inventories :
The management at the year-end verifies inventories of materials. Inventories of material are valued at cost on FIFO basis, and inventories of saleable plots are valued at cost, which include cost of land plus land development cost, if any. Inventories of work in progress at the yearend are valued at cost incurred on each scheme, where ever the work of scheme is not of significant level, which includes cost of land, materials, labour, site development and project expenditure and same is classified as uncertified work. And wherever the work is reached to the significant level the WIP is certified and valued _at the prices (Installment) due from the members for the work stage completed. The significant level is considered on completion of work of at least 25% of the total estimated project cost/assignment value. In the case of acquisition of land for development and construction, the rights are acquired from the owners of the land and the conveyance and registration thereof will be executed between the original owners and the ultimate purchasers as per trade practice.
Up to Preceding year company considered significant level on completion of work of at 40% of the total estimated project cost/assignment value. However from Current Financial Year Company has considered significant level on completion of work at 25% of the total estimated Project Cost/Assignment Value.
E Revenue Recognition
From the Construction business, income has been recognized during the year by certifying the work wherever significant work has been done. Construction work is certified on the basis of Installment due from the member for the work done vis-a-vis the stages of completion of work. When it is probable that total contract cost will exceed the total contract revenue, the expected loss is recognized immediately.
(i) Units in real estate:
(ii) Rent:
Revenue is recognized on accrual basis.
(iii) Interest:
Revenue is recognized on a time proportion basis taking in to account the amount outstanding and rate applicable. Interest due on delayed payments by customers is accounted for receipt basis due to uncertainty of recovery of the
(iv) Dividend:
Revenue is recognized when the shareholders'' right to receive payment is established by balance sheet date.
F Employee Benefits
Defined Contribution Plan:
The Company has defined contribution plans in the form of Provident Fund the contributions are charged to the Profit and Loss Account of the year when the contribution to the respective funds are due. There are no other contributions other than the contributions payable to the respective funds. Company has policy to pay the Gratuity and Leave Encashment on the Payment Basis.
G Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets are capitalized as 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 these are incurred.
H Taxes on Income
Current tax on income for the period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessment / Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance sheet date.
Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realized.. However where there is unabsorbed Depreciation or Carry Forward of Losses under taxation laws, Deferred Tax Assets are recognized only if there is virtual Certainty of Such Assets. Such assets are reviewed at each balance sheet date for reliability.
I Earning Per Share
Basic earnings per share are calculated by dividing the net profit/ (loss) for the year attributable to equity shareholders (after deducting attributable taxes) by average number of equity shares outstanding during the year. The average number of equity shares outstanding during the year is adjusted for event of fresh issue of shares to the public. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
J Foreign currency transaction
Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of transaction. Monetary items denominated in foreign currencies at the yearend are restated at the yearend rates.Non-monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.
K Provisions
A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
L Service Tax Liability:
Service tax liability is created on collection from members at the time of booking, And at the time of sales, liability is created on amount of sales as reduced by the amount of collection on which Service Tax is already paid or provided for on collection.
M Other Accounting Policies
Accounting Policies not specifically referred to, are consistent with the generally accepted accounting practices.
N Previous year''s figures have been regrouped\ rearranged wherever necessary so as to make them comparable with the current year''s figures.
The company has issued the 18003000 equity shares as bonus shares on 14th October,2010 by capitalization of the General Reserves
Mar 31, 2014
A Basis of Accounting
(i) Accounting Convention
The financial statements have been prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles and provisions of the companies Act, 1956 as adopted by the
company.The company generally follows mercantile system of accounting
and recognizes significant items of income and expenditure on accrual
basis.
(ii) Use of Estimates
The presentation of financial statements requires certain estimates and
assumptions. These estimates and assumptions 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 result and estimates are
recognized in the period in which the results are known / materialized.
B Fixed Assets and Depreciation
(i) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation less
impairment losses, if any. Cost is inclusive of all identifiable
expenditure incurred to bring the assets to their working condition for
intended use. When an asset is disposed off, demolished or destroyed,
the cost and related depreciation are removed from the books of
accounts and resultant profit or loss is reflected in the Profit & Loss
Account. Direct cost as well as related incidental and identifiable
expenses incurred on acquisition of fixed assets that are not yet ready
for their intended use or put to use as at the Balance Sheet date are
stated as Capital Work in Progress.Depreciation on fixed assets has
been provided on Straight Line Method at the rates and in the manner as
specified in Schedule XIV to the Companies Act, 1956.
(ii) Depreciation :
Depreciation on fixed assets has been provided on Straight Line Method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
(iii) Impairment:
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the current accounting period in which an
asset is identified as impaired. The impairment loss recognized in
earlier accounting periods is reversed if there has been a change in
the estimate of recoverable amount as specified in Accounting Standard
(AS 28) on impairment of assets.
C Investments:
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments and are carried
at lower of cost and fair value determined on an individual investment
basis whereas all other investments are classified as long-term
investments and are carried at cost. Provision for diminution in value
of long-term investment is made to recognize a decline other than
temporary as specified in Accounting Standard (AS 13) on "Accounting
for Investments".
D Inventories:
The management at the year-end verifies inventories of materials.
Inventories of material are valued at cost on FIFO basis, and
inventories of saleable plots are valued at cost, which include cost of
land plus land development cost, if any. Inventories of work in
progress at the year end are valued at cost incurred on each scheme,
where ever the work of scheme is not of significant level, which
includes cost of land, materials, labour, site development and project
expenditure and same is classified as uncertified work. And wherever
the work is reached to the significant level the WIP is certified and
valued at the prices (Installment) due from the members for the work
stage completed. The significant level is considered on completion of
work of at least 40% of the total estimated project cost/assignment
value.In the case of acquisition of land for development and
construction, the rights are acquired from the owners of the land and
the conveyance and registration thereof will be executed between the
original owners and the ultimate purchasers as per trade practice.
E Revenue Recognition
From the Construction business, income has been recognized during the
year by certifying the work wherever significant work has been done.
Construction work is certified on the basis of Installment due from the
member for the work done
vis-a-vis the stages of completion of work. When it is probable that
total contract cost will exceed the total contract revenue, the
expected loss is recognized immediately.
(i) Units in real estate:
Revenue is recognised when the significant risk and rewards of
ownership of the units in real estate have been passed to the buyer.
(ii) Rent:
Revenue is recognised on accrual basis.
(iii) Interest:
Revenue is recognized on a time proportion basis taking in to account
the amount outstanding and rate applicable. Interest due on delayed
payments by customers is accounted for receipt basisdue to uncertainty
of recovery of the same.
(iv) Dividend:
Revenue is recognised when the shareholders'' right to receive payment
is established by balance sheet date. F Employee Benefits
Defined Contribution Plan:
The Company has defined contribution plans in the form of Provident
Fund, Pension Scheme, EDLI, ESCI and the contributions are charged to
the Profit and Loss Account of the year when the contribution to the
respective funds are due. There are no other contributions other than
the contributions payable to the respective funds.
G Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as 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 these are incurred.
H Taxes on Income
Current tax on income for the period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected
outcome of assessment / appeals.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance sheet
date. Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty that sufficient future
income will be available against which such deferred tax assets can be
realized.
I Earning Per Share
Basic earnings per share are calculated by dividing the net profit/
(loss) for the year attributable to equity shareholders (after
deducting attributable taxes) by average number of equity shares
outstanding during the year. The average number of equity shares
outstanding during the year is adjusted for event of fresh issue of
shares to the public. For the purpose of calculating diluted earnings
per share, the net profit or loss for the year attributable to equity
shareholders and the average number of equity shares outstanding during
the year are adjusted for the effects of all dilutive potential equity
shares.
J Foreign currency transaction
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of transaction.
Monetary items denominated in foreign currencies at the year end are
restated at the year end rates.Non-monetary foreign currency items are
carried at cost. Any income or expense on account of exchange
difference either on settlement or on translation is recongnised in the
profit and loss account.
K Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation.Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognised
but are disclosed in the notes. Contingent assets are neither
recognised nor disclosed in the financial statements.
L Service Tax Liability:
Service tax liability is created on collection from members at the time
of booking,And at the time of sales,liability is created on amount of
sales as reduced by the amount of collection on which Service Tax is
already paid or provided for on collection.
M Other Accounting Policies
Accounting Policies not specifically referred to, are consistent with
the generally accepted accounting practices.
N Previous year''s figures have been regrouped rearranged wherever
necessary so as to make them comparable with the current year''s
figures.
Mar 31, 2013
A Basis of Accounting
(i) Accounting Convention
The financial statements have been prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles and provisions of the companies Act, 1956 as adopted by the
company. The company generally follows mercantile system of accounting
and recognizes significant items of income and expenditure on accrual
basis.
(ii) Use of Estimates
The presentation of financial statements requires certain estimates and
assumptions. These estimates and assumptions 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 result and estimates are
recognized in the period in which the results are known / materialized.
B Fixed Assets and Depreciation
(i) Fixed Assets :
"Fixed Assets are stated at cost less accumulated depreciation less
impairment losses, if any. Cost is inclusive of all identifiable
expenditure incurred to bring the assets to their working condition for
intended use. When an asset is disposed off, demolished or destroyed,
the cost and related depreciation are removed from the books of
accounts and resultant profit or loss is reflected in the Profit & Loss
Account. Direct cost as well as related incidental and identifiable
expenses incurred on acquisition of fixed assets that are not yet ready
for their intended use or put to use as at the Balance Sheet date are
stated as Capital Work in Progress. Depreciation on fixed assets has
been provided on Straight Line Method at the rates and in the manner as
specified in Schedule XIV to the Companies Act, 1956.""
(ii) Depreciation :
Depreciation on fixed assets has been provided on Straight Line Method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
(iii) Impairment :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the current accounting period in which an
asset is identified as impaired. The impairment loss recognized in
earlier accounting periods is reversed if there has been a change in
the estimate of recoverable amount as specified in Accounting Standard
(AS 28) on impairment of assets.
C Investments :
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments and are carried
at lower of cost and fair value determined on an individual investment
basis whereas all other investments are classified as long- term
investments and are carried at cost. Provision for diminution in value
of long-term investment is made to recognize a decline other than
temporary as specified in Accounting Standard (AS 13) on "Accounting
for Investments".
D Inventories :
The management at the year-end verifies inventories of materials.
Inventories of material are valued at cost on FIFO basis, and
inventories of saleable plots are valued at cost, which include cost of
land plus land development cost, if any. Inventories of work in
progress at the year end are valued at cost incurred on each scheme,
where ever the work of scheme is not of significant level, which
includes cost of land, materials, labour, site development and project
expenditure and same is classified as uncertified work. And wherever
the work is reached to the significant level the WIP is certified and
valued at the prices (Installment) due from the members for the work
stage completed. The significant level is considered on completion of
work of at least 40% of the total estimated project cost/assignment
value. In the case of acquisition of land for development and
construction, the rights are acquired from the owners of the land and
the conveyance and registration thereof will be executed between the
original owners and the ultimate purchasers as per trade practice.
E Revenue Recognition
From the Construction business, income has been recognized during the
year by certifying the work wherever significant work has been done.
Construction work is certified on the basis of Installment due from the
member for the work done vis- a-vis the stages of completion of work.
When it is probable that total contract cost will exceed the total
contract revenue, the expected loss is recognized immediately.
(i) Units in real estate:
Revenue is recognised when the significant risk and rewards of
ownership of the units in real estate have been passed to the buyer.
(ii) Rent:
Revenue is recognised on accrual basis.
(iii) Interest:
Revenue is recognized on a time proportion basis taking in to account
the amount outstanding and rate applicable.
Interest due on delayed payments by customers is accounted for receipt
basisdue to uncertainty of recovery of the same.
(iv) Dividend:
Revenue is recognised when the shareholders'' right to receive payment
is established by balance sheet date.
F Employee Benefits
Defined Contribution Plan:
The Company has defined contribution plans in the form of Provident
Fund, Pension Scheme, EDLI, ESCI and the contributions are charged to
the Profit and Loss Account of the year when the contribution to the
respective funds are due. There are no other contributions other than
the contributions payable to the respective funds.
G Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalised as 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 these are incurred.
H Taxes on Income
Current tax on income for the period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected
outcome of assessment / appeals. Deferred tax is recognized on timing
differences between the accounting income and the taxable income for
the year and quantified using the tax rates and laws enacted or
substantively nacted as on the Balance sheet date. Deferred tax assets
are recognized and carried forward to the extent that there is a
reasonable certainty that sufficient future income will be available
against which such deferred tax assets can be realized.
I Earning Per Share
Basic earnings per share are calculated by dividing the net profit/
(loss) for the year attributable to equity shareholders (after
deducting attributable taxes) by average number of equity shares
outstanding during the year. The average number of equity shares
outstanding during the year is adjusted for event of fresh issue of
shares to the public. For the purpose of calculating diluted earnings
per share, the net profit or loss for the year attributable to equity
shareholders and the average number of equity shares outstanding during
the year are adjusted for the effects of all dilutive potential equity
shares.
J Foreign currency transaction
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of transaction. Monetary
items denominated in foreign currencies at the year end are restated at
the year end rates. Non-monetary foreign currency items are carried at
cost. Any income or expense on account of exchange difference either
on settlement or on translation is recongnised in the profit and loss
account.
K Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognised
but are disclosed in the notes. Contingent assets are neither
recognised nor disclosed in the financial statements.
L Service Tax Liability:
Service tax liability is created on collection from members at the time
of booking,And at the time of sales,liability is created on amount of
sales as reduced by the amount of collection on which Service Tax is
already paid or provided for on collection.
M Other Accounting Policies
Accounting Policies not specifically referred to, are consistent with
the generally accepted accounting practices. N Previous year''s figures
have been regrouped rearranged wherever necessary so as to make them
comparable with the current year''s figures.
Mar 31, 2012
(i) Accounting Convention
The financial statements have been prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles and provisions of the companies Act, 1956 as adopted by the
company.The company generally follows mercantile system of accounting
and recognizes significant items of income and expenditure on accrual
basis.
(ii) Use of Estimates
The presentation of financial statements requires certain estimates and
assumptions. These estimates and assumptions 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 result and estimates are
recognized in the period in which the results are known / materialized.
B Fixed Assets and Depreciation
(i) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation less
impairment losses, if any. Cost is inclusive of all identifiable
expenditure incurred to bring the assets to their working condition for
intended use. When an asset is disposed off, demolished or destroyed,
the cost and related depreciation are removed from the books of
accounts and resultant profit or loss is reflected in the Profit & Loss
Account. Direct cost as well as related incidental and identifiable
expenses incurred on acquisition of fixed assets that are not yet ready
for their intended use or put to use as at the Balance Sheet date are
stated as Capital Work in Progress. Depreciation on fixed assets has
been provided on Straight Line Method at the rates and in the manner as
specified in Schedule XIV to the Companies Act, 1956.
(ii) Depreciation :
Depreciation on fixed assets has been provided on Straight Line Method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
(iii) Impairment :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the current accounting period in which an
asset is identified as impaired. The impairment loss recognized in
earlier accounting periods is reversed if there has been a change in
the estimate of recoverable amount as specified in Accounting Standard
(AS 28) on impairment of assets.
C Investments :
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments and are carried
at lower of cost and fair value determined on an individual investment
basis whereas all other investments are classified as long-term
investments and are carried at cost. Provision for diminution in value
of long-term investment is made to recognize a decline other than
temporary as specified in Accounting Standard (AS 13) on "Accounting
for Investments".
D Inventories :
The management at the year-end verifies inventories of materials.
Inventories of material are valued at cost on FIFO basis, and
inventories of saleable plots are valued at cost, which include cost of
land plus land development cost, if any. Inventories of work in
progress at the year end are valued at cost incurred on each scheme,
where ever the work of scheme is not of significant level, which
includes cost of land, materials, labour, site development and project
expenditure and same is classified as uncertified work. And wherever
the work is reached to the significant level the WIP is certified and
valued at the prices (Installment) due from the members for the work
stage completed. The significant level is considered on completion of
work of at least 40% of the total estimated project cost/assignment
value.In the case of acquisition of land for development and
construction, the rights are acquired from the owners of the land and
the conveyance and registration thereof will be executed between the
original owners and the ultimate purchasers as per trade practice.
E Revenue Recognition
From the Construction business, income has been recognized during the
year by certifying the work wherever significant work has been done.
Construction work is certified on the basis of Installment due from the
member
for the work done vis-a-vis the stages of completion of work. When it
is probable that total contract cost will exceed the total contract
revenue, the expected loss is recognized immediately.
(i) Units in real estate:
Revenue is recognised when the significant risk and rewards of
ownership of the units in real estate have been passed to the buyer.
(ii) Rent:
Revenue is recognised on accrual basis.
(iii) Interest:
Revenue is recognized on a time proportion basis taking in to account
the amount outstanding and rate applicable.
Interest due on delayed payments by customers is accounted for receipt
basisdue to uncertainty of recovery of the same.
(iv) Dividend:
Revenue is recognised when the shareholders' right to receive payment
is established by balance sheet date.
F Employee Benefits
Defined Contribution Plan:
The Company has defined contribution plans in the form of Provident
Fund, Pension Scheme, EDLI, ESCI and the contributions are charged to
the Profit and Loss Account of the year when the contribution to the
respective funds are due. There are no other contributions other than
the contributions payable to the respective funds.
G Borrowing Cost
Borrowing costs in relation to acquisition and construction of assets
are capitalized as 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 these are incurred.
H Taxes on Income
Current tax on income for the period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected
outcome of assessment / appeals.
Deferred tax is recognized on timing differences between the accounting
income and the taxable income for the year and quantified using the tax
rates and laws enacted or substantively enacted as on the Balance sheet
date. Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty that sufficient future
income will be available against which such deferred tax assets can be
realized.
I Earning Per Share
Basic earnings per share are calculated by dividing the net profit/
(loss) for the year attributable to equity shareholders (after
deducting attributable taxes) by average number of equity shares
outstanding during the year. The average number of equity shares
outstanding during the year is adjusted for event of fresh issue of
shares to the public. For the purpose of calculating diluted earnings
per share, the net profit or loss for the year attributable to equity
shareholders and the average number of equity shares outstanding during
the year are adjusted for the effects of all dilutive potential equity
shares.
J Foreign currency transaction
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of transaction.
Monetary items denominated in foreign currencies at the year end are
restated at the year end rates.Non-monetary foreign currency items are
carried at cost. Any income or expense on account of exchange
difference either on settlement or on translation is recongnised in the
profit and loss account.
K Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognised
but are disclosed in the notes. Contingent assets are neither
recognised nor disclosed in the financial statements.
L Service Tax Liability:
During the financial year 2010-11, Service tax on construction
activities was introduced w.e.f. 01/07/2010. The Company in absence
ofcertainity to collect the service tax from customers intitialy booked
it as expenses and to be treated as income if collected from members.
The same policy has been discontiuned w.e.f. 01/04/2011. The company
decided to collect the service tax from members except from the scheme
which was launched quite earlier. During the year the policy has been
changed and accordingly the service tax liability is created on
collection from members and at the time of booking sales, liability is
created on amount of sales as reduced by the amount of collection on
which Service Tax is already paid or provided for on collection.
M Other Accounting Policies
Accounting Policies not specifically referred to, are consistent with
the generally accepted accounting practices.
N Previous year's figures have been regrouped rearranged wherever
necessary so as to make them comparable with the current year's
figures.
Mar 31, 2011
1. Basis of Accounting
i Accounting Convention
The financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India ("GAAP") under the
historical cost convention on an accrual basis and comply in all
material aspects with the mandatory Accounting Standards prescribed in
the Companies (Accounting Standards) Rules, 2006 issued by the Central
Government in consultation with the National Advisory Committee on
Accounting Standards. The accounting policies have been consistently
applied by the Company and are consistent with those used in the
previous period.
ii Use of Estimates
The presentation of financial statements requires certain estimates and
assumptions. These estimates and assumptions 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 result and estimates are
recognized in the period in which the results are known / materialized.
2. Fixed assets and depreciation
Fixed Assets are stated at cost less accumulated depreciation less
impairment losses, if any. Cost is inclusive of all identifiable
expenditure incurred to bring the assets to their working condition for
intended use. When an asset is disposed off, demolished or destroyed,
the cost and related depreciation are removed from the books of
accounts and resultant profit or loss is reflected in the Profit & Loss
Account. Direct cost as well as related incidental and identifiable
expenses incurred on acquisition of fixed assets that are not yet ready
for their intended use or put to use as at the Balance Sheet date are
stated as Capital Work in Progress.
Depreciation on fixed assets has been provided on straight-line method
at the rates and in the manner as specified in Schedule XIV to the
Companies Act, 1956.
3. Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. An impairment loss is charged to the
profit and loss account in the current accounting period in which an
asset is identified as impaired. The impairment loss recognized in
earlier accounting periods is reversed if there has been a change in
the estimate of recoverable amount as specified in Accounting Standard
(AS 28) on impairment of assets.
4. Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments and are carried
at lower of cost and fair value determined on an individual investment
basis whereas all other investments are classified as long-term
investments and are carried at cost. Provision for diminution in value
of long-term investment is made to recognize a decline other than
temporary as specified in Accounting Standard (AS 13) on "Accounting
for Investments".
5. Inventories
Inventories are valued as follows:
Inventory comprises of completed property for sale, transferable
development rights and projects in progress.
(i) Completed property for sale and transferable development rights are
valued at lower of cost or net realizable value. Cost includes cost of
land, land development rights, acquisition of tenancy rights,
materials, services, borrowing costs and other related overheads as the
case may be.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs of completion and estimated
costs necessary to make the sale.
(ii) Construction materials, stores and spares are valued at lower of
cost or net realizable value. Cost includes cost of purchase and other
expenses incurred in bringing inventory to their respective present
location and condition. Cost is determined using FIFO method of
inventory valuation.
(iii) Projects in progress are valued at cost. Cost includes cost of
land, land development rights, materials, services, borrowing costs,
acquisition of tenancy rights and other related overheads. Cost
incurred / items purchased specifically for projects are taken as
consumed as and when incurred/received. And wherever the work is
reached to the significant level the work in process is certified and
valued at the prices (instalments ) due from the members for the stage
completed on that date.The instalments due are determined based on the
sales price. The significant level is considered on completion of work
of at least 40% of the total estimated project cost/assignment value.
(iv) In the case of acquisition of land for development and
construction, the rights are acquired from the owners of the land and
the conveyance and registration thereof will be executed between the
original owners and the ultimate purchasers as per trade practice.
6. Revenue recognition
The Company follows the percentage completion method, based on the
stage of completion at the balance sheet date, taking into account the
contractual price and revision thereto by estimating total revenue and
total cost till completion of the contract and the profit so determined
has been accounted for proportionate to the percentage of the actual
work done. The revenue is recognized to the extent it is probable and
the economic benefits will flow to the Company and the revenue can be
reliably measured.
Construction Contracts:
Running Account Bills for work completed are recognized on percentage
of completion method based on completion of physical proportion of the
contract work. Income on account of claims and extra item work are
recognized to the extent Company expects reasonable certainty about
receipts or acceptance from the client. When it is probable that total
contract cost will exceed the total contract revenue, the expected loss
is recognized immediately.
a) Sale:
Unit in real estate:
Revenue is recognized when the significant risks and rewards of
ownership of the units in real estate have passed to the buyer.
b) Rent:
Revenue is recognized on accrual basis.
c) Interest:
i) Revenue is recognized on a time proportion basis taking into account
the amount outstanding and the rate applicable.
ii) Interest due on delayed payments by customers is accounted for on
receipts basis due to uncertainty of recovery of the same.
d) Dividends:
Revenue is recognized when the shareholders' right to receive payment
is established by the balance sheet date.
e) Share of profit - Partnership firms: -
Share of profit/ (loss) from partnership firms is accounted for in
respect of the financial year ending on or before the balance sheet
date.
f) Profit on sale of investment:
It is recognized on its liquidation/redemption.
7. Borrowing Costs
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
8. Employee Benefits/Retirement Benefits
(i) Provident Fund
Retirement benefit in the form of Provident Fund is a defined
contribution scheme and the contributions are charged to the profit and
loss account of the year when the contributions to the respective funds
are due.
(ii) Gratuity
Retirement gratuity liability of employees accounted in the year of
Payment.
9. Taxation
a. Current Tax:
Tax on income for the current period is determined on the basis of
estimated taxable income and tax credit computed in accordance with
provisions of the Income Tax Act, 1961.
b. Deferred Tax:
Deferred tax is recognized, on timing differences, being the difference
between the taxable incomes and accounting income that originate in one
accounting period and are capable of reversal in one or more subsequent
periods. It is calculated using the applicable tax rates and tax laws
that have been enacted or substantially enacted as on the balance sheet
date.
Deferred tax assets which arise mainly on account of unabsorbed losses
or unabsorbed depreciation are recognized and carried forward only to
the extent that there is virtual certainty supported by convincing
evidence that sufficient future taxable income will be available
against which such deferred tax assets can be realized.
10. Segment reporting policies
The main business of the Company is real estate development and
construction of residential and commercial properties, infrastructure
facilities and all other related activities which revolve around the
main business and as such there are no separate reportable segments as
specified in Accounting Standard (AS-17) on "Segment Reporting".
11. Earnings per share
Basic earnings per share are calculated by dividing the net profit/
(loss) for the year attributable to equity shareholders (after
deducting attributable taxes) by average number of equity shares
outstanding during the year. The average number of equity shares
outstanding during the year is adjusted for event of fresh issue of
shares to the public. For the purpose of calculating diluted earnings
per share, the net profit or loss for the year attributable to equity
shareholders and the average number of equity shares outstanding during
the year are adjusted for the effects of all dilutive potential equity
shares.
12. Foreign currency transaction
a) Transactions denominated in foreign currencies are normally recorded
at the exchange rate prevailing at the time of transaction.
b) Monetary items denominated in foreign currencies at the year end are
restated at the year end rates.
c) Non-monetary foreign currency items are carried at cost.
d) Any income or expense on account of exchange difference either on
settlement or on translation is recongnised in the profit and loss
account.
13. Provisions
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation. Provisions are not
discounted to its present value and are determined based on best
estimate required to settle the obligation at the balance sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best estimates. Contingent liabilities are not recognised
but are disclosed in the notes. Contingent assets are neither
recognised nor disclosed in the financial statements.
14. Other Accounting Policies
Accounting Policies not specifically referred to, are consistent with
the generally accepted accounting practices.
STATEMENT IN PURSUANCE OF SECTION 212 OF THE COMPANIES ACT, 1956
1. Name of the Subsidiary Company Tirupati Development (U) Ltd
2. Financial year of the 31st December, 2010
Subsidiary ended on
3. Holding Company's interest in 1380 Equity Share of UGX 1
the Subsidiary million each (69%)
5. Net aggregate amount of the
Profit / (Loss) of the Subsi
diary dealt within the Holding
Company's A/c.
a) For the Current financial year NIL
of the Subsidiary Company
b) For the previous financial year NIL
of the Subsidiary Company
Mar 31, 2010
I) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and provisions of the Companies Act, 1956 as adopted by the
company.
ii) The company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure an accrual
basis.
FIXED ASSETS:
Fixed assets are stated at historical cost.
INVESTMENTS:
Investments are shown at cost. The capital contribution of the company
in capacity of partner in a firm and any further addition or withdrawal
has been shown as investment.
INVENTORIES:
I) The management at the year-end verifies inventories of materials.
ii) Inventories of material are valued at cost on FIFO basis, and
inventories of saleable plots are valued at cost, which include cost of
land plus land development cost.
iii) Inventories of work in progress at the year end are valued at cost
incurred on each scheme, where ever the work of scheme is not of
significant level, which includes cost of land, materials, labour, site
development and project expenditure. And wherever the work is reached
to the significant level the WIP is certified and valued at the prices
(Installment) due from the members for the work stage completed. The
significant level is considered on completion of work of at least 40%
of the total estimated project cost/assignment value.
DEPRECIATION:
Depreciation on Fixed Assets has been provided on straight-line method
at the rate and in the manner prescribed in Schedule XIV of the
Companies Act, 1956.
BORROWING COST:
a. Borrowing costs attributable to the acquisition or construction of
qualifying assets are capitalized as part of such assets. All other
borrowing cost is charged to revenue.
b. A qualifying asset is an asset that necessarily requires
substantial period of time to get ready for its intended use or sale.
TAXES ON INCOME:
a. Current tax on income for the period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected
outcome of assessment / appeals.
b. Deferred tax is recognized on timing differences between the
accounting income and the taxable income for the year and quantified
using the tax rates and laws enacted or substantively enacted as on the
Balance sheet date.
c. Deferred tax assets are recognized and carried forward to the
extent that there is a reasonable certainty that sufficient future
income will be available against which such deferred tax assets can be
realized.
INCOME / EXPENSES:
Material known incomes and liabilities are provided for on the basis of
available information / estimates with the Management.
From the Construction business, income has been recognized during the
year by certifying the work wherever significant work has been done.
Construction work is certified on the basis of Installment due from the
member for the work done vis-a-vis the stages of completion of work.
From the plotting scheme showing sale of plots on the basis of booking
of plots after realization of full consideration has recognized income
and balance plots are shown at cost as stock of plots for sale.
ACCOUNTING STANDARDS:
Accounting Standards as prescribed under section 211 (3C) of the
Companies Act, 1956 have been followed wherever applicable.
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