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Accounting Policies of Ashiana Housing Ltd. Company

Mar 31, 2017

1. CORPORATE INFORMATION

Ashiana Housing Limited (“the company”] is a public limited company domiciled and incorporated in India and its shares are publicly traded on the National Stock Exchange (“NSE”] and the Bombay Stock Exchange (“BSE”], India. The registered office of the company is situated at 5F Everest, 46/C, Chowringhee Road, Kolkata - 700071 and the head office is situated at 304, Southern Park, Saket District Centre, Saket, New Delhi - 110017.

The principal business activity of the company is Real Estate Development. The company has its presence in the states of Rajasthan, Jharkhand, Maharashtra, Haryana, West Bengal, Gujarat and Tamil Nadu.

The financial statements were authorized for issue in accordance with a resolution passed by the Board of Directors on 30th May, 2017.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of preparation

The financial statements (Separate financial statements] have been prepared on accrual basis in accordance with Indian Accounting Standards (Ind AS] notified under the Companies (Indian Accounting Standards] Rules, 2015 and the provisions of the Companies Act, 2013.

For all periods up to and including the year ended 31st March 2016, the company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts] Rules, 2014 (previous GAAP]. These financial statements for the year ended 31st March 2017 are the first the company has prepared in accordance with Ind AS. Refer to note 3 for an explanation of how the transition from previous GAAP to Ind AS has effected presentation of company''s financial position, financial performance and cash flows.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities which have been measured at fair value (refer accounting policy regarding financial instruments].

The financial statements are presented in Indian Rupees (“INR” or “''”] and all amounts are rounded to the nearest Lakhs, except as stated otherwise.

2.2 Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions effect 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. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed in note 2.24. Accounting estimates could change from period to period. Actual results may 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.

2.3 Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is treated as current when it is:

- Expected to be realized or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

2.6 Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment loss.

On transition to Ind AS, the company has elected to continue with the carrying value of all its intangible assets recognized as at 1st April, 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized on a straight-line method over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at the end of each reporting period and adjusted, if appropriate. The useful economic lives estimated for various classes of intangible assets are as follows:

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually.

2.7 Non-current Assets held for Sale

Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell.

Non-current assets classified as held for sale and their related liabilities are presented separately in the balance sheet. Non-current assets are not depreciated or amortized while they are classified as held for sale.

2.8 Inventories

Construction material and hotel and club consumables are valued at lower of cost and net realizable value. However, materials and other items are not written down below cost if the constructed units/food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on first in, first out (FIFO) basis.

Land/Development Rights are valued at lower of cost and net realizable value.

Completed units and project development forming part of work in progress are valued at lower of cost and net realizable value. Cost includes direct materials, labour, project specific direct and indirect expenses, borrowing costs and pro-rata unrealized cost from EWS/LIG units.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

2.9 Cash and Cash Equivalent

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits maturing within twelve months from the date of Balance Sheet, which are subject to an insignificant risk of changes in value. Bank overdrafts are shown under borrowings in the Balance Sheet.

2.10 Financial Instruments

A. Financial Instruments - Initial recognition and measurement

Financial assets and financial liabilities are recognized in the company’s statement of financial position when the company becomes a party to the contractual provisions of the instrument. The company determines the classification of its financial assets and liabilities at initial recognition. All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

B.1. Financial assets -Subsequent measurement

The Subsequent measurement of financial assets depends on their classification which is as follows:

a. Financial assets at fair value through profit or loss

Financial assets at fair value through profit and loss include financial assets held for sale in the near term and those designated upon initial recognition at fair value through profit or loss.

2.11 EWS/LIG Units

In terms of the building bye laws of various states in which the company operates, it is required to develop certain units for Economically Weaker Section (EWS) and Lower Income Group (LIG) people along with the development of the main group housing project.

EWS/LIG units in the balance sheet comprise of amounts deployed by the company towards land, development and/or purchase of EWS/LIG units, as reduced by amounts received from the allottees and unrealized cost from such units.

2.12 Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes, duties or other charges collected on behalf of the government/ authorities.

The specific recognition criteria for the various types of the company''s activities are described below:

Real estate projects

In accordance with the Guidance Note on Accounting for Real Estate Transactions issued by the Institute of Chartered Accountants of India, the company applies the principles of Ind AS 18 in respect of sale of goods, for recognizing revenue, costs and profits from real estate projects at the time when revenue recognition process is completed, as defined below.

The completion of the revenue recognition process is usually identified when the following conditions are satisfied:

(a) the company has transferred to the buyer the significant risks and rewards of ownership of the real estate;

(b) the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the real estate sold;

(c) the amount of revenue can be measured reliably;

(d) it is probable that the economic benefits associated with the transaction will flow to the company; and

(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The significant risks and rewards of ownership of a real estate unit and the control thereof is transferred from the company to the buyer upon possession or upon expiry of thirty days from the issue of letter for offer of possession (“deemed date of possession”), whichever is earlier.

Hotel and club services

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering of the services.

Interest income

Interest income from debt instruments (including Fixed Deposits) is recognized using the effective interest rate method. The effective interest rate is that rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount 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.

Dividends

Revenue is recognized when the company''s right to receive the payment is established.

Rental Income

Rental income arising from operating leases on investment properties is accounted for on a straight-line basis over the lease term.

Delayed payment charges

Delayed payment charges claimed to expedite recoveries are accounted for on realization.

Other Income

Other Income is accounted for on accrual basis except, where the receipt of income is uncertain.

2.13 Foreign currency transactions

Foreign currency transactions are translated into Indian rupee using the exchange rates prevailing on the date of the transaction. Foreign exchange gains and losses resulting from the settlement of these transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in profit or loss.

2.18 Taxes

Current Tax

The current tax expense for the period is determined as the amount of tax payable in respect of taxable income for the period, based on the applicable income tax rates.

Current tax relating to items recognized in other comprehensive income or equity is recognized in other comprehensive income or equity, respectively.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences and, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carry forward of unused tax credits and unused tax losses can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted at the reporting date.

Deferred tax relating to items recognized in other comprehensive income or equity is recognized in other comprehensive income or equity, respectively.

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.

2.19 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has present determined obligations as a result of past events an outflow of resources embodying economic benefits will be required to settle the obligations. Provisions are recognized at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A Contingent liability is not recognized but disclosed in the notes to the accounts, unless the probability of an outflow of resources is remote.

A contingent asset is generally neither recognized nor disclosed.

2.20 Earnings Per Share

The basic earnings per share (EPS) is calculated by dividing the net profit or loss for the year attributable to the 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 the equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

2.21 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the company, on or before the end of the reporting period but not distributed at the end of the reporting period.

2.22 Exceptional Items

Exceptional items refer to items of income or expense within statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the company.

2.23 Impairment of Assets

The company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the.


Mar 31, 2016

a) BASIS OF ACCOUNTING

The Financial Statements are prepared on accrual basis under
historical cost convention in accordance with the generally
accepted accounting principles in India, the Accounting Standards
prescribed in the Companies (Accounting Standard)
Rules, 2006 and the provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or
non-current, wherever applicable, as per the normal operating
cycle of the company as set out in the Schedule III to the Companies
Act, 2013.

b) USE OF ESTIMATES

The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates/ assumption to be made
that affect the reported amount of assets and liabilities on the date
of financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between actual results and estimates
are recognised in the period in which the results are known/ materialised.

c) FIXED ASSETS

i) Fixed assets are valued at cost less depreciation/amortization.

ii) Capital work-in-progress is valued at cost.

iii) Intangible Assets under Development is valued at cost.

Cost includes purchase price and all other attributable cost of
bringing the assets to working condition for intended use.

d) DEPRECIATION AND AMORTIZATION

i) Depreciation on tangible fixed assets is provided on Straight Line
Method (SLM) at the rates determined based on useful life of the asset
as estimated by the management, or those prescribed under Schedule II
to the Companies Act, 2013. The life considered for the major tangible
fixed assets are as under :

ii) Intangible assets are amortized over the period of useful life of
the assets as estimated by the management.

e) INVESTMENTS :

i) Long term investments are carried at acquisition cost. Provision for
diminution, if any, in the value of long term investments is made to
recognize a decline, other than of a temporary nature.

ii) Investments intended to be held for less than one year are
classified as current investments and are carried at lower of cost and
market value.

iii) Value of Intangible capital rights created in favour of the
company in the process of Real Estate activities, being not
determinate, are not shown in the books of accounts.

f) INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable value.
However, materials and other Hotel & Club consumables items are not
written down below cost if the constructed units/food and beverages in
which they are used are expected to be sold at or above cost. Cost is
determined on FIFO basis.

Land and At Lower of cost and net realizable value.

Development Rights

Completed Construction and At Lower of cost and net realizable value.
Cost includes direct materials, work in Progress labour and project
specific direct and indirect expenses and pro-rata unrealized cost from
development of EWS/LIG units.

g) PRELIMINARY EXPENSES

Preliminary Expenses are written off over a period of five years
beginning from the year in which new venture commences operation.

h) REAL ESTATE PROJECTS

i) Revenue in respect of the projects undertaken on or after 1st April,
2011, the projects undertaken between 1st April, 2006 and 31st March,
2011, which did not reach the level of completion as considered
appropriate by the management within 31st March, 2011, as discussed in
(b) below and such projects undertaken between 1st April 2006 and 31st
March 2011 for which possession/deemed possession not given till 31st
March 2016, is accounted for (i) on delivery of absolute physical
possession of the respective units on completion, or (ii) on deemed
possession of the respective units on completion or (iii) on physical
possession for fit out, as considered appropriate by the management
based on circumstantial status of the project.

ii) Revenue in respect of projects undertaken between1st April, 2006
and 31st March, 2011, which reached the level of construction as
considered appropriate by the management within 31st March, 2011,
except for those units for which possession/deemed possession has not
been given till 31st March, 2016, is recognized on the "Percentage of

31 SIGNIFICANT ACCOUNTING POLICIES AND OTHER NOTES TO THE ACCOUNTS 1)
SIGNIFICANT ACCOUNTING POLICIES

a) BASIS OF ACCOUNTING

The Financial Statements are prepared on accrual basis under historical
cost convention in accordance with the generally accepted accounting
principles in India, the Accounting Standards prescribed in the
Companies (Accounting Standard) Rules, 2006 and the provisions of the
Companies Act, 2013.

All assets and liabilities have been classified as current or
non-current, wherever applicable, as per the normal operating cycle of
the company as set out in the Schedule III to the Companies Act, 2013.

b) USE OF ESTIMATES

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

c) FIXED ASSETS

i) Fixed assets are valued at cost less depreciation/amortization. ii)
Capital work-in-progress is valued at cost.


Completion Method" (POC) of accounting and represents value of units
contracted to be sold to the extent of actual work done against total
estimated cost of execution. The corresponding cumulative amount at the
close of the year appears under ''Current Liabilities'' as deduction from
"Advance from customers".

The estimates of saleable area and Construction cost are reviewed
periodically by the management and effect of any change in estimates is
recognized in the period such changes are determined.

iii) Selling Expenses related to specific Projects/Units are being
charged to Profit and Loss Account in the year in which Sale thereof is
offered for taxation.

iv) Interest on delayed payments and other charges are accounted for on
certainty of realization.

i) HOTEL & CLUB

Revenue from rooms, food and beverages, club and other allied services,
is recognized upon rendering of the services.

j) OTHER INCOME

Other income is accounted on accrual basis except where the receipt of
income is uncertain.

k) FOREIGN CURRENCY TRANSACTIONS

Income and Expenditure in foreign currency is converted into rupee at
the rate of exchange prevailing on the date of the transactions. All
payables and receivables related to foreign currency transactions
outstanding at the yearend are translated at exchange rates prevailing
at the year end. The resultant translation differences are recognized
in the Profit & Loss Account.

l) EMPLOYEE BENEFITS

i) Short term employee benefits:

All employee benefits payable within twelve months of rendering the
service are classified as short term employee benefits. Such short term
employee benefits are recognized at actual amounts due in the period in
which the employee renders the related service.

ii) Post-employment benefits:

a) Defined Contribution Plans:

Payments made to defined contribution plans such as Provident Fund are
charged as an expense as they fall due.

b) Defined Benefit Plans:

Provision for Gratuity and Leave Pay is determined on the actuarial
valuation carried out at the balance sheet date in accordance with the
provisions of Accounting Standard 15. Actuarial gains and losses are
recognized in the Statement of Profit & Loss.

m) BORROWING COST

i) Interest and other financial charges incurred in connection with
borrowing of funds, which are incurred for specific projects of the
company are charged to Work in Progress as a part of the cost of such
project.

ii) Other borrowing cost are recognized as expense in the Profit and
Loss Account.

n) TAXES ON INCOME

i) Current Tax is determined as the amount of tax payable in respect of
taxable income for the year.

ii) Deferred Tax is recognized, subject to consideration of prudence,
in respect of deferred tax Assets/Liabilities arising on timing
differences, being the difference between taxable income and accounting
income that originate in one period and are capable of reversal in one
or more subsequent period. Deferred tax in respect of differential
income due to accounting of sales on percentage completion basis, being
not determinate, is not recognized.

o) EARNINGS PER SHARE

The Basic earnings per share ("EPS") is computed 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 equity shares outstanding during the year
are adjusted for the effects of all dilutive potential equity shares.

p) IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in Accounting
Standard -28 is recognized whenever carrying value of such assets
exceeds the market value or value in use, whichever is higher.

q) PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognized when the company has a present obligation as
a result of past results and it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation. Provisions are recognized at the best estimate of the
expenditure required to settle the present obligation at the balance
sheet date.


Mar 31, 2015

A) BASIS OF ACCOUNTING :

The Financial Statements are prepared on accrual basis under historical cost convention in accordance with the generally accepted accounting principles in India, the Accounting Standards prescribed in the Companies (Accounting Standard) Rules, 2006 and the provisions of the Companies Act, 201 3.

All assets and liabilities have been classified as current or non-current, wherever applicable, as per the normal operating cycle of the Company as set out in the Schedule III to the Companies Act, 2013.

b) USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates / assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known/materialized. c)

c) FIXED ASSETS :

i) Fixed assets are valued at cost less depreciation/amortization.

ii) Capital work-in-progress is valued at cost.

iii) Intangible Assets under Development is valued at cost.

Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

d) DEPRECIATION AND AMORTIZATION :

i) Depreciation on tangible fixed assets is provided on Straight Line Method (SLM) at the rate s determined based on useful life of the asset as estimated by the management, or those prescribed under Schedule II to the Companies Act, 2013. The life considered for the major tangible fixed assets are as under :

Class of F ixe d Assets Useful Life (Years)

Buildings 60

Plant & Machinery 5 - 15

Furniture & Fixtures 8 - 10

Electrical Installations 10

Equipments and Facilities 5

Computer Hardwares 3

Vehicles 5 - 10

ii) Intangible assets are amortized over the period of useful life of the assets as estimated by the management.

e) INVESTMENTS :

i) Long term investments are carried at acquisition cost. Provision for diminution, if any, in the value of long term investments is made to recognize a decline, other than of a temporary nature.

ii) Investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value.

iii) Value of Intangible capital rights created in favor of the Company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts.

f) INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable Hotel & Club consumables value. However, materials and other items are not written down below cost if the constructed units/ food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold/Freehold Land and At Lower of cost and net realizable Development Rights value.

Unsold Completed Construction and At Lower of cost and net work in Progress realizable value. Cost includes direct materials, labour and project specific direct and indirect expenses and pro-rata unrealized cost from development of EWS/LIG units.

g) PRELIMINARY EXPENSES

Preliminary Expenses are written off over a period of five years beginning from the year in which new venture commences operation.

h) REAL ESTATE PROJECTS

i) Revenue in respect of the projects undertaken on or after 1st April, 2011 and the projects undertaken between 1st April, 2006 and 31st March, 2011 , which did not reach the level of completion as considered appropriate by the management within 31st March, 2011 , as discussed in (b) below, is accounted for (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion or (iii) on physical possession for fitout, as considered appropriate by the management based on circum stantial status of the project.

ii) Revenue in respect of projects underta ken between 1" April, 2006 and 31" March, 2011 , which did not reach the level of construction as considered appropriate by the management within 31" March, 2011 is recognized on the Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount at the close of the year appears under Current Liabilities as deduction from Advance fro m customers .

The estimates of saleable area and Construction cost are reviewed periodically by the management and effect of any change in estimates is recognized in the period such changes are determined.

iii) Selling Expenses related to specific Projects/U nits are being charged to Profit and Loss Account in the year in which Sale thereof is offered for taxation.

iv) Interest on delayed payments and other charges are accounted for on certainty of realization.

i) HOTEL & CLUB

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering of the services.

j) OTHER INCOME

Other income is accounted on accrual basis except where the receipt of income is uncertain.

k) FOREIGN CURRENCY TRANSACTIONS

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions. All payables and receivables related to foreign currency transactions outstanding at the year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognized in the Profit & Loss Account.

l) EMPLOYEE BENEFITS

i) Short term employee benefits:

All employee benefits payable within twelve months of rendering the service are classified as short term employee benefits. Such short term employee benefits are recognized at actual amounts due in the period in which the employee renders the related service.

ii) Post-employment benefits:

a) Defined Contribution Plans:

Payments made to defined contribution plans such as Provident Fund are charged as an expense as they fall due.

b) Defined Benefit Plans:

Provision for Gratuity and Leave Pay is determined on the actuarial valuation carried out at the balance sheet date in accordance with the provisions of Accounting Standard 1 5. Actuarial gains and losses are recognized in the Statement of Profit & Loss.

m) BORROWING COST

i) Interest and other financial charges incurred in connection with borrowing of funds, which are incurred for specific projects of the Company are charged to Work in Progress as a part of the cost of such projects.

ii) Other borrowing cost are recognized as expense in the Profit and Loss Account.

n) TAXES ON INCOME

i) Current Tax is determined as the amount of tax payable in respect of taxable inco me for the year.

ii) Deferred Tax is recognized, subject to consideration of prudence, in respect of deferred tax Assets/Li abilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognized.

o) EARNINGS PER SHARE

The Basic earnings per share ("EPS") is computed 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 equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

p) IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in Accounting Standard - 28 is recognized whenever carrying value of such assets exceeds the market value or value in use, which ever is higher.

q) PROVISIONS AND CONTINGENT LIABILITIES

A provision is recognized when the Company has a present obligation as a result of past results and it is probable that an outflow of resources em bodying economic benefits will be required to settle the obligation. Provisions are recognized at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.


Mar 31, 2013

SYSTEM OF ACCOUNTING:

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS :

1. Fixed assets are valued at cost less depreciation/amortization.

2. Capital work-in-progress is valued at cost.

3. Intangible assets under development is valued at cost.

DEPRECIATION AND AMORTIZATION :

1. Depreciation on tangible assets is provided on straight line basis in accordance with the provisions of Schedule XIV of the Companies Act, 1956.

2. Intangible assets are amortized over the period of useful life of the assets as estimated by the management.

INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable value. However, materials and other items are not written Hotel&Club consumables down below cost if the constructed units/food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land At Lower of cost and net realizable value.

Unsold Completed Construction At Lower of cost and net realizable value. Cost includes direct materials, labor and project and workin Progress specific directand indirect expenses.

REAL ESTATE PROJECTS :

a) Revenue in respect ofthe projects undertaken before 31st March, 2006 and the projects which have not reached the level of completion as considered appropriate by the management within 31 st March, 2011, as discussed in [b) below, is accounted for [i] on delivery of absolute physical possession ofthe respective units on completion, or [ii] on deemed possession ofthe respective units on completion or [iii] on physical possession for fitout, as considered appropriate by the management based on circumstantial status ofthe project.

b) Revenue in respect of projects undertaken on or after 1st April, 2006 which have reached the level of construction as considered appropriate by the management within 31 st March, 2011 is recognized on the " Percentage of Completion Method" [POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount atthe close ofthe year appears under'' Current Liabilities'' as deduction from "Advance from customers'' . The estimates of saleable area and Construction costare reviewed periodically by the management and effect of any change in estimates is recognized in the period such changes are determined.

c) Selling Expenses related to specific Projects/Units are being charged to Profit and Loss Account in the year in which Sale thereof is offered for taxation.

d) Intereston delayed paymentsand otherchargesareaccountedforon certainty of realization.

HOTELS CLUB:

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering ofthe services.

OTHER INCOME:

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME:

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred Taxis recognized, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognized.

INVESTMENTS:

a) Long term investments are carried at acquisition costand investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution intheirvalueare revalued attheircurrentvalue.

b) Value of Intangible capital rights created in favor ofthe company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts

FOREIGN CU RRENCY TRANSACTIONS:

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions. All payables and receivables related to foreign currency transactions outstanding atthe year end are translated at exchange rates prevailing at the year end. The resultant translation differences are recognized in the Profit & Loss Account.

EMPLOYEE BENEFITS:

a) Shortterm employee benefits are charged off atthe undiscounted amount in the year in which the related service is rendered.

b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized atthe present value ofthe amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES

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

IMPAIRMENT OF ASSETS:

Impairment Loss in the value of assets, as specified in Accounting Standard -28 is recognized whenever carrying value of such assets exceeds the market value orvaluein use, whichever is higher.


Mar 31, 2012

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS :

1. Fixed assets are valued at cost less depreciation/amortization.

2. Capital work-in-progress is valued at cost.

DEPRECIATION AND AMORTIZATION :

1. Depreciation on tangible assets is provided on straight line basis in accordance with the provisions of Schedule XIV of the Companies Act, 1956.

2. Intangible assets are amortized over the period of useful life of the assets as estimated by the management except that depreciation on intangible assets held by Ashiana Amar Developers, is provided at the rate as specified as Income Tax Rule,1962.

INVENTORIES :

Inventories are valued as follows:

Construction Material and At Lower of cost and net realizable value. However, materials and other items

Hotel & Club consumables are not written down below cost if the constructed units/food and beverages in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land, At Lower of cost and net realizable value.

Unsold Completed Construction Cost includes direct materials, labour and construction overheads, and Work in Progress

REAL ESTATE PROJECTS:

a) Revenue in respect of the projects undertaken before March 31, 2006 and the projects which have not reached the level of completion as considered appropriate by the management within March 31, 2011, as discussed in (b) below, is accounted for (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion or (iii) on physical possession for fit out, as considered appropriate by the management based on circumstantial status of the project.

b) Revenue in respect of projects undertaken on or after April 01, 2006 which have reached the level of construction as considered appropriate by the management within March 31, 2011 is recognized on the " Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount at the close of the year appears under "Current Liabilities" as deduction from "Advance from customers".

The estimates of saleable area and Construction cost are reviewed periodically by the management and effect of any change in estimates is recognized in the period such changes are determined.

c) Interest on delayed payments and other charges are accounted for on certainty of realization.

HOTEL & CLUB

Revenue from rooms, food and beverages, club and other allied services, is recognized upon rendering of the services.

OTHER INCOME

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME:

a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred Tax is recognized, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognized.

INVESTMENTS:

a) Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

b) Value of intangible capital rights created in favor of the company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts.

FOREIGN CURRENCY TRANSACTIONS:

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions.

EMPLOYEE BENEFITS:

a) Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES:

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

IMPAIRMENT OF ASSETS:

Impairment Loss in the value of assets, as specified in Accounting Standard -28 is recognized whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.


Mar 31, 2011

SYSTEM OF ACCOUNTING :

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS AND DEPRECIATION :

(a) Fixed assets are valued at cost and depreciation is provided on straight line basis in accordance with the provisions of Schedule XIV to the Companies Act, 1956.

(b) Capital work-in-Progress is valued at cost.

INVENTORIES :

Inventories are valued as follows:

Construction Material: At Lower of cost and net realizable value. However, materials and other items are not written down below cost if the constructed units in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land: At Lower of cost and net realizable value.

Unsold Completed Construction and Work in Progress: Cost includes direct materials, labour and construction overheads.

REAL ESTATE PROJECTS

(a) Revenue in respect of the projects undertaken before 31st March, 2006 and the projects which have not reached the level of completion as considered appropriate by the management within 31st March, 2011, as discussed in (b) below, is accounted for (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion or (iii) on physical possession for fitout, as considered appropriate by the management based on circumstantial status of the project.

(b) Revenue in respect of projects undertaken on or after 1st April, 2006 which have reached the level of construction as considered appropriate by the management within 31st March, 2011 is recognised on the" Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution. The corresponding cumulative amount at the close of the year appears under ‘Current Liabilities as deduction from "Advance from customers.

The estimates of saleable area and Construction cost are reviewed periodically by the management and effect of any change in estimates is recognised in the period such changes are determined.

(c) Interest on delayed payments and other charges are accounted for on certainty of realisation.

HOTEL & CLUB

Revenue from rooms, food and beverages, club and other allied services, is recognised upon rendering of the services.

OTHER INCOME

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME

(a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

(b) Deferred Ta x is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognised.

INVESTMENTS

(a) Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

(b) Value of Intangible capital rights created in favour of the company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts

FOREIGN CURRENCY TRANSACTIONS

Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions.

EMPLOYEE BENEFITS

(a) Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

(b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES

The preparation of financial statements in confirmity with generally accepted accounting principles requires estimates/ assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

IMPAIRMENT OF ASSETS

Impairment Loss in the value of assets, as specified in Accounting Standard-28 is recognised whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.


Mar 31, 2010

SYSTEM OF ACCOUNTING:

The company adopts accrual basis of accounting in the preparation of accounts.

FIXED ASSETS AND DEPRECIATION :

(a) Fixed assets are valued at cost and depreciation is provided on straight line basis in accordance with the provisions of Schedule XIV to the Companies Act, 1956.

(b) Capital work in progress is valued at cost.

INVENTORIES:

Inventories are valued as follows:

Construction Material: At Lower of cost and net realizable value. However, materials and other items are not written down below cost if the constructed units in which they are used are expected to be sold at or above cost. Cost is determined on FIFO basis.

Leasehold and Freehold Land, Unsold Completed Construction and Work in Progress: At Lower of cost and net realizable value. Cost includes direct materials, labourand construction overheads.

REAL ESTATE PROJECTS:

(a) Revenue in respect of projects undertaken before March 31, 2006, is accounted for on the basis of date of delivery of physical possession to the respective customers.

(b) Revenue in respect of other projects is recognised on the "Percentage of Completion Method" (POC) of accounting and represents value of units contracted to be sold to the extent of actual work done against total estimated cost of execution upon the project reaches a level as considered appropriate by the management. The corresponding cumulative amount at the close of the year appears under Current Liabilities as deduction from Advance from customers.

The estimates of saleable areas, estimated costs and cost of completion are reviewed periodically by the management and effects of any changes in estimates is recognised in the period such changes are determined.

(c) Interest on delayed payments and other charges are accounted for on realisation.

OTHER INCOME:

Other income is accounted on accrual basis except where the receipt of income is uncertain.

TAXES ON INCOME:

(a) Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

(b) Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax Assets/Liabilities arising on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax in respect of differential income due to accounting of sales on percentage completion basis, being not determinate, is not recognised.

INVESTMENTS:

(a) Long term investments are carried at acquisition cost and investments intended to be held for less than one year are classified as current investments and are carried at lower of cost and market value. Long Term Investments which have attained the stage of permanent diminution in their value are revalued at their current value.

(b) Value of Intangible capital rights created in favour of the company in the process of Real Estate activities, being not determinate, are not shown in the books of accounts.

FOREIGN CURRENCY TRANSACTIONS: Income and Expenditure in foreign currency is converted into rupee at the rate of exchange prevailing on the date of the transactions.

EMPLOYEE BENEFITS:

(a) Short term employee benefits are charged off at the undiscounted amount in the year in which the related service is rendered.

(b) Post employment and other long term employee benefits are charged off in the year in which the employee has rendered services. The amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gain and losses in respect of post employment and other long term benefits are charged to Profit and Loss Account.

USE OF ESTIMATES:

The preparation of financial statements in confirmity with generally accepted accounting principles requires estimates/assumption to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognised in the period in which the results are known/ materialised.

IMPAIRMENT OF ASSETS:

Impairment Loss in the value of assets, as specified in Accounting Standard - 28 is recognised whenever carrying value of such assets exceeds the market value or value in use, whichever is higher.

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