Accounting Policies of Ashiana Housing Ltd. Company
Mar 31, 2023
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.
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 "H"] and all amounts are rounded to the nearest lacs, except
as stated otherwise. H 0 represents amount below 50,000/-.
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 realised or intended to be sold or consumed
in normal operating cycle
⢠Held primarily for the purpose of trading
⢠Expected to be realised 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.
Deferred tax assets and liabilities are classified as non-current
assets and liabilities.
The normal operating cycle in respect of real estate operations
of the company is the time between the acquisition of land/
development rights for a real estate project and its realisation
into cash and cash equivalents by way of sale of developed units.
Accordingly, project related assets and liabilities have been
classified into current and non-current based on operating cycle
of the respective projects. All other assets and liabilities have
been classified into current and non-current based on a period
of twelve months.
2.4 Property, Plant and Equipment
Freehold land and capital work-in-progress is carried at cost,
including transaction costs and borrowing costs. All other items of
property, plant and equipment are stated at cost less accumulated
depreciation and accumulated impairment loss, if any.
The cost of an item of property, plant and equipment comprises
of its purchase price, any costs directly attributable to its
acquisition and an initial estimate of the costs of dismantling and
removing the item and restoring the site on which it is located,
the obligation for which the company incurs when the item is
acquired. Subsequent costs are included in the asset''s carrying
amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated
with the item will flow to the company and the cost of the item
can be measured reliably. All other repairs and maintenance are
charged to profit or loss during the reporting period in which
they are incurred.
Depreciation on property, plant and equipment is calculated
using the straight-line method to allocate their cost, net of their
residual values, over their estimated useful lives. The useful lives
estimated for the major classes of property, plant and equipment
are as follows:
The useful lives have been determined based on technical
evaluation done by the management, which in few cases
are different than the lives as specified by Schedule II to the
Companies Act, 2013. The residual values are not more than
5% of the original cost of the asset. The asset''s residual values
and useful lives are reviewed, and adjusted if appropriate, at the
end of each reporting period.
An item of property, plant and equipment and any significant
part initially recognised is derecognised upon disposal or when
no future economic benefits are expected from its use or
disposal. Any gain or loss arising on de-recognition of the asset
is included in the statement of profit and loss when the asset is
derecognised.
Physical verification of Property, Plant and Equipment is carried
out in a phased manner. Certain Plant and Machinery including
Shuttering and Scaffoldings is verified on completion of a Project
due to nature of such assets.
Investment properties are measured initially at cost, including
transaction costs and borrowing costs, wherever applicable.
Subsequent to initial recognition, investment properties are
stated at cost less accumulated depreciation and accumulated
impairment loss, if any. Subsequent expenditure is capitalised to
the asset''s carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow to the
company and the cost of the item can be measured reliably. All
other repairs and maintenance costs are expensed when incurred.
The building component of the investment properties are
depreciated using the straight-line method over 60 years from the
date of original purchase, being their useful life as estimated by
the management. The estimated useful life of the building is same
as that prescribed in Schedule II to the Companies Act, 2013.
The company discloses the fair value of investment properties
as at the end of the year, which is determined by registered
accredited independent valuers.
Investment properties are derecognised upon disposal or when
no future economic benefits are expected from its use or disposal.
Any gain or loss arising on de-recognition of investment properties
are included in profit and loss in the period of de-recognition.
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less any accumulated amortisation and
accumulated impairment loss.
The useful lives of intangible assets are assessed as either finite
or indefinite.
Intangible assets with finite lives are amortised 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 amortisation period and the
amortisation 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:
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 amortised while they are
classified as held for sale.
Construction material and hotel and club consumables are
valued at lower of cost and net realisable 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
realisable value.
Completed units and project development forming part of work
in progress are valued at lower of cost and net realisable value.
Cost includes direct materials, labour, project specific direct and
indirect expenses, borrowing costs and pro-rata unrealised cost
from EWS/LIG units.
Net realisable 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.
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.
Other Bank Balances includes Balances with Bank to the extent
secured against the borrowings, Bank Balances for unclaimed
dividend, and Balances in Bank Accounts designated as RERA
Account wherein 70% of amount collected from allottees is
deposited.
A. Financial Instruments - Initial recognition and
measurement
Financial assets and financial liabilities are recognised 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 recognised 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.
b. Financial assets measured at amortised cost
Loans and receivables are non derivative financial
assets with fixed or determinable payments that are
not quoted in an active market. Trade receivables
do not carry any interest and are stated at their
nominal value as reduced by appropriate allowance for
estimated irrecoverable amounts based on the ageing
of the receivables balance and historical experience.
Additionally, a large number of minor receivables are
grouped into homogenous groups and assessed for
impairment collectively. Individual trade receivables
are written off when management deems them not to
be collectible.
c. Financial assets at fair value through OCI
All equity investments, except investments in
subsidiaries, joint ventures and associates, falling
within the scope of Ind AS 109, are measured at fair
value through Other Comprehensive Income (OCI).
The company makes an irrevocable election on an
instrument by instrument basis to present in other
comprehensive income subsequent changes in the fair
value. The classification is made on initial recognition
and is irrevocable.
If the company decides to designate an equity
instrument at fair value through OCI, then all fair value
changes on the instrument, excluding dividends, are
recognized in the OCI.
B. 2. Financial assets -Derecognition
The company derecognises a financial asset when the
contractual rights to the cash flows from the assets expire
or it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset.
Upon derecognition of equity instruments designated at
fair value through OCI, the associated fair value changes of
that equity instrument is transferred from OCI to Retained
Earnings.
C. Investment in subsidiaries, joint ventures and associates
Investments made by the company in subsidiaries, joint
ventures and associates are measured at cost in the
separate financial statements of the company.
D. 1. Financial liabilities -Subsequent measurement
The Subsequent measurement of financial liabilities
depends on their classification which is as follows:
a. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss
include financial liabilities held for trading, if any.
b. Financial liabilities measured at amortised cost
Interest bearing loans and borrowings including
debentures issued by the company are subsequently
measured at amortised cost using the effective
interest rate method (EIR). Amortised cost is calculated
by taking into account any discount or premium on
acquisition and fee or costs that are integral part of
the EIR. The EIR amortised is included in finance costs
in the statement of profit and loss.
D. 2. Financial liabilities -Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or expires.
E. Offsetting financial instruments
Financial assets and financial liabilities are offset and the
net amount reported in the statement of financial position,
if and only if, there is a currently enforceable legal right to
offset the recognised amounts and there is an intention to
settle on a net basis, or to realise the assets and settle the
liabilities simultaneously.
F. Fair value measurement
The company measures certain financial instruments at
fair value at each reporting date. Fair value is the price that
would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at
the measurement date. The fair value measurement is
based on presumption that the transaction to sell the asset
or transfer the liability takes place either:
⢠In the principal market for the assets or liability or
⢠In the absence of a principal market, in the most
advantageous market for the asset or liability.
The principal or the most advantageous market must be
accessible to the company.
The company uses valuation technique that are appropriate
in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of
relevant observable inputs and minimising the use of
unobservable inputs.
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 unrealised cost from such units.
Revenue is recognised upon transfer of control of promised
product or services to customer in an amount that reflects
the consideration the company expects to receive in exchange
for those product or service, regardless of when the payment
is received. Revenue is measured at the Transaction price,
excluding amounts collected on behalf of the third parties.
The specific recognition criteria for the various types of the
company''s activities are described below:
Real estate projects
In accordance with the principles of Ind AS 115, revenue in
respect of real estate project is recognised on satisfaction
of Performance obligation at a point in time by transferring a
promised good or services (i.e. an asset) to a customer and the
customer obtains control of that asset.
To determine the point in time at which a customer obtains
control of a promised asset and the entity satisfies a performance
obligation, the company considers following indicators of the
transfer of control to customers:
(a) the company has a present right to payment for the asset;
(b) the company has transferred to the buyer the significant
risks and rewards of ownership of the real estate;
(c) the company retains neither continuing managerial
involvement to the degree usually associated with ownership
nor effective control over the real estate sold;
(d) the amount of revenue can be measured reliably;
(e) the costs incurred or to be incurred in respect of the
transaction can be measured reliably;
(f) the customer has accepted the asset.
The satisfaction of performance obligation and the control
thereof is transferred from the company to the buyer upon
possession or upon issuance of letter for offer of possession
("deemed date of possession"), whichever is earlier, subject to
certainty of realisation.
Hotel and club services
Revenue from rooms, food and beverages, club and other allied
services, is recognised upon rendering of the services.
Interest income
Interest income from debt instruments (including Fixed
Deposits) is recognised 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 recognised 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 realisation.
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 recognised in profit or loss.
Short Term employee benefits
Liabilities for wages, salaries and other employee benefits that
are expected to be settled within twelve months of rendering the
service by the employees are classified as short term employee
benefits. Such short term employee benefits are measured at
the amounts expected to be paid when the liabilities are settled.
Post employment benefits
(a) Defined contribution plans
The company pays provident fund contribution to publicly
administered provident funds as per the local regulations.
The contributions are accounted for as defined contribution
plans and are recognised as employee benefit expense
when they are due.
(b) Defined benefit plans
The liabilities recognised in the balance sheet in respect
of defined benefit plan, namely gratuity and leave pay, are
the present value of the defined benefit obligation at the
end of the year less the fair value of plan assets, if any. The
defined benefit obligation is calculated by actuaries using
the projected unit credit method.
The present value of the defined benefit obligation is
determined by discounting the estimated future cash
outflows by reference to market yields at the end of the
reporting period on government bonds that have terms
approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount
rate to the net balance of the defined benefit obligation and
fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in
other comprehensive income. They are included in the
retained earnings in the statement of changes in equity and
in the balance sheet.
2.15 Leases
A. Company as a Lessee
The Company assesses whether a contract contains a
lease at inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an
identified asset (ii) the Company has substantially all of the
economic benefits from use of the asset through the period
of the lease and (iii) the Company has the right to direct the
use of the asset.
The company applies a single recognition and measurement
approach for all leases, except for leasehold land, short¬
term leases and leases of low-value. For short-term and
leases of low value, the Company recognises the lease
payments as an operating expense on a straight line basis
over the term of the lease. Leasehold land is carried at the
acquisition cost i.e. one-time lease premium paid at the
time of acquisition of leasehold rights. For all other leases,
the Company recognises lease liabilities to make lease
payments and right-of-use assets representing the right to
use the underlying assets.
The right-of-use assets are initially recognized at cost, which
comprises the initial amount of the lease liability adjusted for
any lease payments made at or prior to the commencement
date of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate that
their carrying amounts may not be recoverable.
The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the incremental
borrowing rate at the lease commencement date. After
the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying
amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the
lease payments or a change in the assessment of an option
to purchase the underlying asset.
Right-of-use assets are included in the Leased Assets
and lease liabilities are included in other current and non¬
current financial liabilities in the balance sheet. Lease
payments have been classified as financing cash flows in
the Statement of Profit and Loss.
Leasehold Land under Leased assets represents land
allotted by Government of Rajasthan for 99 years
on leasehold basis and is recognised at cost. Leased
building improvements under Leased assets are initially
recognised at cost and subsequently measured at cost less
accumulated depreciation. The depreciation is calculated
on a straight line basis based on the lease period.
B. Company as a Lessor
Leases for which the company is a lessor is classified as
finance or operating leases. Leases in which the Company
does not transfer substantially all the risks and rewards
incidental to ownership of an asset are classified as
operating leases. Rental income arising is accounted for on
a straight-line basis over the lease term, unless the receipts
are structured to increase in line with expected general
inflation.
Borrowing costs that are attributable to ongoing projects of the
company are charged to work in progress as a part of the cost
of such project.
Other borrowing costs are recognised in the statement of profit
and loss in the period in which they are incurred.
Selling expenses related to specific projects/units are being
charged to Statement of Profit and Loss in the year in which the
revenue thereof is accounted and till such time these costs are
carried forward as Unaccrued Selling Expenses under the head
Other Current Assets.
Project-wise unaccrued selling expenses carried forward are
reviewed by the management annually after commencement
of revenue recognition of such projects and abnormal selling
expenses in excess of standard costs as estimated by the
management minus selling costs estimated to be incurred
thereof in future are charged to Statement of Profit and Loss.
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 recognised in other comprehensive
income or equity is recognised 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 recognised for all taxable temporary
differences. Deferred tax assets are recognised for all deductible
temporary differences and, the carry forward of unused tax
credits and any unused tax losses. Deferred tax assets are
recognised 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 utilised.
Deferred tax assets and liabilities are measured at the tax rates
that are expected to apply in the year when the asset is realised
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 recognised in other comprehensive
income or equity is recognised 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.
Mar 31, 2019
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1.1 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.
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 (âINRâ or âHâ) and all amounts are rounded to the nearest lacs, except as stated otherwise. âHâ 0 represents amount below 50,000/
1.2 Estimates and Judgements
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.
1.3 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 realised or intended to be sold or consumed in normal operating cycle
- Held primarily for the purpose of trading
- Expected to be realised 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. Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The normal operating cycle, in the context of the company, is the time between the acquisition of land for a real estate project and its realisation in cash and cash equivalents by way of sale of developed units.
1.4 Property, Plant and Equipment Freehold/Leasehold land and capital work-in-progress is carried at cost including transaction costs and borrowing cost. All other items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
Lease arrangements in respect of land for lease period above threshold limit are classified as a finance lease.
The cost of an item of property, plant and equipment comprises of its purchase price, any costs directly attributable to its acquisition and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which the company incurs when the item is acquired. Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognised as at 1st April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. The useful lives estimated for the major classes of property, plant and equipment are as follows:
The useful lives have been determined based on technical evaluation done by the managementâs, which in few cases are different than the lives as specified by Schedule II to the Companies Act, 2013. The residual values are not more than 5% of the original cost of the asset. The assetâ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included in the statement of profit and loss when the asset is derecognised.
Physical verification of Property, Plant and Equipment is carried out in a phased manner. Certain Plant and Machinery including Shuttering and Scaffoldings is verified on completion of a Project due to nature of such assets.
1.5 Investment properties
Investment properties are measured initially at cost, including transaction costs and borrowing costs, wherever applicable. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure is capitalised to the assetâs carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.
On transition to Ind AS, the company has elected to continue with the carrying value of all its investment properties recognised as at 1st April 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the investment properties.
The building component of the investment properties are depreciated using the straight-line method over 60 years from the date of original purchase, being their useful life as estimated by the management. The estimated useful life of the building is same as that prescribed in Schedule II to the Companies Act, 2013.
The company discloses the fair value of investment properties as at the end of the year, which is determined by registered accredited independent valuers.
Investment properties are derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of investment properties are included in profit and loss in the period of derecognition.
1.6 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 amortisation and accumulated impairment loss.
On transition to Ind AS, the company has elected to continue with the carrying value of all its intangible assets recognised 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 amortised 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 amortisation period and the amortisation 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 amortised, but are tested for impairment annually.
1.7 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. Noncurrent assets are not depreciated or amortised while they are classified as held for sale.
1.8 Inventories
Construction material and hotel and club consumables are valued at lower of cost and net realisable 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 realisable value.
Completed units and project development forming part of work in progress are valued at lower of cost and net realisable value.
Cost includes direct materials, labour, project specific direct and indirect expenses, borrowing costs and pro-rata unrealised cost from EWS/LIG units.
Net realisable 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.
1.9 Cash and Cash Equivalents
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.
Other Bank Balances Includes Balances with Bank to the extent secured against the borrowings, Bank Balances for unclaimed dividend, and Balances in Bank Accounts designated as RERA
Account wherein 70% of amount collected from allottees is deposited.
1.10 Financial Instruments
A. Financial Instruments - Initial recognition and measurement
Financial assets and financial liabilities are recognised in the companyâs 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 recognised 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.
b. Financial assets measured at amortised cost
Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowance for estimated irrecoverable amounts based on the ageing of the receivables balance and historical experience. Additionally, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. Individual trade receivables are written off when management deems them not to be collectible.
c. Financial assets at fair value through OCI
All equity investments, except investments in subsidiaries, joint ventures and associates, falling within the scope of Ind AS 109, are measured at fair value through Other Comprehensive Income (OCI). The company makes an irrevocable election on an instrument by instrument basis to present in Other Comprehensive Income subsequent changes in the fair value. The classification is made on initial recognition and is irrevocable.
If the company decides to designate an equity instrument at fair value through OCI , then all fair value changes on the instrument, excluding dividends, are recognized in the OCI.
B.2. Financial assets -Derecognition
The company derecognises a financial asset when the contractual rights to the cash flows from the assets expire or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.
Upon derecognition of equity instruments designated at fair value through OCI, the associated fair value changes of that equity instrument is transferred from OCI to Retained Earnings.
C. Investment in subsidiaries, joint ventures and associates
Investments made by the company in subsidiaries, joint ventures and associates are measured at cost in the separate financial statements of the company.
D.1. Financial liabilities -Subsequent measurement
The Subsequent measurement of financial liabilities depends on their classification which is as follows:
a. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading, if any.
b. Financial liabilities measured at amortised cost
Interest bearing loans and borrowings including debentures issued by the company are subsequently measured at amortised cost using the effective interest rate method (EIR). Amortised cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are integral part of the EIR. The EIR amortised is included in finance costs in the statement of profit and loss.
D.2. Financial liabilities -Derecognition A financial liability is derecognised when the obligation under the liability is discharged or expires.
E. Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position, if and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
F. Fair value measurement
The company measures certain financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the assets or liability or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to the company.
The company uses valuation technique that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
1.11 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 unrealised cost from such units.
1.12 Revenue Recognition
Effective 1st April, 2018 the company adopted IND As 115, âRevenue from contracts with customersâ. The effect of adoption of Ind As 115 was insignificant. The following is a summary of new and /or revised significant accounting policies related to revenue recognition.
Revenue is recognised upon transfer of control of promised product or services to customer in an amount that reflects the consideration we expect to receive in exchange for those product or service, regardless of when the payment is received. Revenue is measured at the transaction price, excluding amounts collected on behalf of the third parties.
The specific recognition criteria for the various types of the companyâs activities are described below:
Real estate projects
In accordance with the principles of Ind AS 115 revenue in respect of real estate project is recognised on satisfaction of Performance obligation at a point in time by transferring a promised good or services (ie an asset) to a customer and the customer obtains control of that asset.
To determine the point in time at which a customer obtains control of a promised asset and the entity satisfies a performance obligation, the company considers following indicators of the transfer of control to customers:
(a) the company has a present right to payment for the asset.
(b) the company has transferred to the buyer the significant risks and rewards of ownership of the real estate;
(c) the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the real estate sold;
(d) the amount of revenue can be measured reliably;
(e) the costs incurred or to be incurred in respect of the transaction can be measured reliably
(f) the customer has accepted the asset.
The satisfaction of performance obligation and the control thereof is transferred from the company to the buyer upon possession or upon issuance of letter for offer of possession (âdeemed date of possessionâ), whichever is earlier, subject to realisation/ certainty of realisation.
Obligations: The company is under an obligation to comply with the following In terms of the Real Estate (Regulation and Development) Act 2016 (RERA)
(a) Obligation to keep 70% of the amounts realized from real estate project from allottees from time to time, in a separate account in a scheduled bank
(b) To enable formation of the association or society of allottees
(c) Liability to rectify structural defect or defect in workmanship within 30 days if brought to notice of the company by allottee within 5 years from the date of handing over possession.
Hotel and club services
Revenue from rooms, food and beverages, club and other allied services, is recognised upon rendering of the services.
Interest income
Interest income from debt instruments (including Fixed Deposits) is recognised 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 recognised when the companyâs 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 realisation.
Other Income
Other Income is accounted for on accrual basis except, where the receipt of income is uncertain.
1.13 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 recognised in profit or loss.
1.14 Employee benefits
Short Term employee benefits
Liabilities for wages, salaries and other employee benefits that are expected to be settled within twelve months of rendering the service by the employees are classified as short term employee benefits. Such short term employee benefits are measured at the amounts expected to be paid when the liabilities are settled.
Post employment benefits
(a) Defined contribution plans
The company pays provident fund contribution to publicly administered provident funds as per the local regulations. The contributions are accounted for as defined contribution plans and are recognised as employee benefit expense when they are due.
(b) Defined benefit plans
The liabilities recognised in the Balance Sheet in respect of defined benefit plan, namely gratuity and leave pay, are the present value of the defined benefit obligation at the end of the year less the fair value of plan assets, if any. The defined benefit obligation is calculated by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in the retained earnings in the statement of changes in equity and in the Balance Sheet.
1.15 Leases
Company as a lessee
A lease is classified at the inception date as a finance lease or an operating lease.
A lease that transfers substantially all the risks and rewards incidental to ownership to the company is classified as a finance lease. Finance leases are capitalised at the commencement of the lease at the inception date at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.
A leased asset is depreciated over the useful life of the asset.
However, if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company are classified as operating lease. Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation.
Company as a lessor
Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease, unless the receipts are structured to increase in line with expected general inflation.
1.16 Finance Costs
Borrowing costs that are attributable to ongoing projects of the company are charged to work in progress as a part of the cost of such project.
Other borrowing costs are recognised in the statement of profit and loss in the period in which they are incurred.
1.17 Selling Costs
Selling expenses related to specific projects/units are being charged to statement of profit and loss in the year in which the revenue thereof is accounted. Such costs are carried forward till such charge off as unaccrued selling expenses under the head
Other Current Assets.
1.18 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 recognised in Other Comprehensive Income or equity is recognised 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 recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences and, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised 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 utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised 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 recognised in other comprehensive income or equity is recognised 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.
1.19 Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the company has present determined obligations as a result of past events and an outflow of resources embodying economic benefits will be required to settle the obligations. Provisions are recognised 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 recognised as a finance cost.
A Contingent liability is not recognised but disclosed in the notes to the accounts, unless the probability of an outflow of resources is remote.
A contingent asset is generally neither recognised nor disclosed.
1.20 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.
1.21 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.
1.22 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.
1.23 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 assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss.
1.24 Critical accounting estimates
Property, plant and equipment
Property, plant and equipment represent a significant proportion of the asset base of the company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of companyâs assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Intangible assets
The company tests whether intangible assets have suffered any impairment on an annual basis. The recoverable amount of a cash generating unit is determined based on value in use calculations which require the use of assumptions.
Investment property
The charge in respect of periodic depreciation on investment properties is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of companyâs investment properties are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Trade Receivable
As per Ind AS 109, the company is required to apply expected credit losses model for recognizing the provision for doubtful debts. The expected credit losses are determined based on the past trends & assumption.
Recognition and measurement of defined benefit obligations
The obligations arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and attrition rate. The discount rate is determined by reference to market yields at the end of the reporting period on government securities, the period to maturity of the underlying securities correspond to the probable maturity of the post-employment benefit obligation.
Provisions and contingencies
The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the Balance Sheet date. The actual outflow of resources at a future date may therefore vary from the amount included in other provisions.
Mar 31, 2018
1. CORPORATE INFORMATION
Ashiana Housing Limited (âthe Companyâ] is a public limited company domiciled and incorporated in India and its shares are publicly traded on the National Stock Exchange ("NSEâ] and the Bombay Stock Exchange (âBSEâ], India. The registered office of the company is situated at
11 G 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 29th May, 2018.
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.
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 ["INRâ or.....] and all amounts are rounded to the nearest lacs, 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 realised 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.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
The normal operating cycle, in the context of the company, is the time between the acquisition of land for a real estate project and its realization in cash and cash equivalents by way of sale of developed units.
2.4 Property, Plant and Equipment
Freehold/Leasehold land and capital work-in-progress is carried at cost. All other items of property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
The cost of an item of property, plant and equipment comprises of its purchase price, any costs directly attributable to its acquisition and an initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which the company incurs when the item is acquired. Subsequent costs are included in the assetâs carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
On transition to IND AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognized as at 1 stApril 201 5 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.
Depreciation on property, plant and equipment is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives. The useful lives estimated for the major classes of property, plant and equipment are as follows:
The useful lives have been determined based on technical evaluation done by the managementâs experts, which in few cases are different than the lives as specified by Schedule II to the Companies Act, 2013. The residual values are not more than 5% of the original cost of the asset. The assetsâ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset is included in the statement of profit and loss when the asset is derecognized.
2.5 Investment Properties
Investment properties are measured initially at cost, including transaction costs and borrowing costs, wherever applicable. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure is capitalized to the assetâs carrying amount only when it is probable that future economic benefits associated with the expenditure will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are expensed when incurred.
On transition to IND AS, the company has elected to continue with the carrying value of all its investment properties recognized as at 1stApril 2015 measured as per the previous GAAP and use that carrying value as the deemed cost of the investment properties.
The building component of the investment properties are depreciated using the straight-line method over 60 years from the date of original purchase, being their useful life as estimated by the management. The estimated useful life of the building is same as that prescribed in Schedule II to the Companies Act, 2013.
The company discloses the fair value of investment properties as at the end of the year, which is determined by registered accredited independent valuers.
Investment properties are derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of investment properties are included in profit and loss in the period of de-recognition.
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.
The useful lives of intangible assets are assessed as either finite or indefinite.
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.
Earmarked balances and fixed deposits held as security are disclosed as other bank balances.
2.10 Financial Instruments
A. Financial Instruments - Initial Recognition and Measurement
Financial assets and financial liabilities are recognized in the companyâs 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.
b. Financial assets measured at amortized cost
Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market. Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowance for estimated irrecoverable amounts based on the ageing of the receivables balance and historical experience. Additionally, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. Individual trade receivables are written off when management deems them not to be collectible.
c. Financial assets at fair value through PCI
All equity investments, except investments in subsidiaries, joint ventures and associates, falling within the scope of Ind AS 109, are measured at fair value through Other Comprehensive Income [OCI], The company makes an irrevocable election on an instrument by instrument basis to present in other comprehensive income subsequent changes in the fair value. The classification is made on initial recognition and is irrevocable.
If the company decides to designate an equity instrument at fair value through OCI , then all fair value changes on the instrument, excluding dividends, are recognized in the OCI.
B.2. Financial Assets -Derecognition
The company derecognises a financial asset when the contractual rights to the cash flows from the assets expire or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset.
Upon derecognition of equity instruments designated at fair value through OCI, the associated fair value changes of that equity instrument is transferred from OCI to Retained Earnings.
C. Investment in Subsidiaries, Joint Ventures and Associates
Investments made by the company in subsidiaries, joint ventures and associates are measured at cost in the separate financial statements of the company.
D.1. Financial Liabilities -Subsequent Measurement
The Subsequent measurement of financial liabilities depends on their classification which is as follows:
a. Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading, if any.
b. Financial liabilities measured at amortized cost
Interest bearing loans and borrowings including debentures issued by the company are subsequently measured at amortized cost using the effective interest rate method [EIR], Amortized cost is calculated by taking into account any discount or premium on acquisition and fee or costs that are integral part of the EIR. The EIR amortized is included in finance costs in the statement of profit and loss.
D.2. Financial Liabilities-Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or expires.
E. Offsetting Financial Instruments
Financial assets and financial liabilities are offset and the net amount reported in the statement of financial position, if and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.
F. Fair Value Measurement
The company measures certain financial instruments at fair value at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on presumption that the transaction to sell the asset or transfer the liability takes place either:
- In the principal market for the assets or liability or
- In the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible to the company.
The company uses valuation technique that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
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 allotters 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 companyâs 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 (âdeemed date of possessionâ], 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 companyâs 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 realisation.
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.
2.14 Employee Benefits
Short Term Employee Benefits
Liabilities for wages, salaries and other employee benefits that are expected to be settled within twelve months of rendering the service by the employees are classified as short term employee benefits. Such short term employee benefits are measured at the amounts expected to be paid when the liabilities are settled.
Post Employment Benefits
[a] Defined Contribution Plans
The company pays provident fund contribution to publicly administered provident funds as per the local regulations. The contributions are accounted for as defined contribution plans and are recognized as employee benefit expense when they are due.
[b] Defined Benefit Plans
The liabilities recognized in the balance sheet in respect of defined benefit plan, namely gratuity and leave pay, are the present value of the defined benefit obligation at the end of the year less the fair value of plan assets, if any. The defined benefit obligation is calculated by actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in the retained earnings in the statement of changes in equity and in the balance sheet.
2.15 Leases
Company as a Lessee
A lease is classified at the inception date as a finance lease or an operating lease.
A lease that transfers substantially all the risks and rewards incidental to ownership to the company is classified as a finance lease. Finance leases are capitalized at the commencement of the lease at the inception date at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the statement of profit and loss.
A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company are classified as operating lease. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation.
Company as a Less or
Rental income from operating lease is recognized on a straight-line basis over the term of the relevant lease, unless the receipts are structured to increase in line with expected general inflation.
2.16 Finance Costs
Borrowing costs that are attributable to ongoing projects of the company are charged to work in progress as a part of the cost of such project.
Other borrowing costs are recognized in the statement of profit and loss in the period in which they are incurred.
2.17 Selling Costs
Selling expenses related to specific projects/units are being charged to statement of profit and loss in the year in which the revenue thereof is accounted. Such costs are carried forward till such charge off as unsacred selling expenses under the head Other Current Assets.
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 authorized 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 assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs [CGU] fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
Impairment losses of continuing operations, including impairment on inventories, are recognized in the statement of profit and loss.
2.24 Critical Accounting Estimates
Property. Plant and Equipment
Property, plant and equipment represent a significant proportion of the asset base of the company. The charge in respect of periodic depreciation is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of companyâs assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Intangible Assets
The company tests whether intangible assets have suffered any impairment on an annual basis. The recoverable amount of a cash generating unit is determined based on value in use calculations which require the use of assumptions.
Investment Property
The charge in respect of periodic depreciation on investment properties is derived after determining an estimate of an assetâs expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company''s investment properties are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.
Trade Receivables
As per Ind As 109, the company is required to apply expected credit losses model for recognizing the provision for doubtful debts. The expected credit losses are determined based on past trends and assumptions.
(iv) Estimation of Fair Value
The company obtains independent valuations for its properties annually. These valuations are based on valuations performed by a registered accredited independent valuer. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the company considers information from a variety of sources including:
- current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences
- discounted cash flow projections based on reliable estimates of future cash flows
- capitalized income projections based upon a property''s estimated net market income, and a capitalization rate derived from an evidence of market evidence
The main inputs used are the rental growth rates, expected vacancy rates, terminal yields and discount rates based on comparable transactions and industry data.
(v) The company has no restrictions on the reliability of its investment properties.
[in] Term /Rights attached to Equity Shares
The company has only one class of Equity Share having a par value of Rs,2 per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March, 2018, the amount of per share dividend recognized as distributions to equity shareholders was Rs,0.25/- [31=t March, 2017: Nil).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
(iv) The Board of Directors, in its meeting on 29th May, 201 8, have proposed a final dividend of Rs,0.25/- per equity share for the financial year ended 31st March, 2018. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held and if approved would result in a cash outflow of approximately Rs,308 Lakhs including corporate dividend tax.
Nature of Reserves
a) Securities Premium
Security Premium reserve is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.
b) Debenture Redemption Reserve
The company is required to create a debenture redemption reserve out of profits which is available for payment of dividend for the purpose of redemption of debentures, in terms of the requirements of Companies Act, 2013.
c) General Reserve
The General reserve is used from time to time for transfer of profits from surplus in statement of Profit and Loss for appropriation purposes.
d) Equity Investment Reserve
This reserve represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, net of amounts reclassified to retained earnings when those assets have been disposed off.
As of 31st March, 2018, every percentage point increase / decrease in discount rate will affect the companyâs gratuity and leave pay benefit obligation by approximately Rs,52 Lakhs and Rs,0.25 Lakhs respectively .
As of 31st March, 2018, every percentage point increase / decrease in weighted average rate of increase in compensation levels will affect the companyâs gratuity and leave pay benefit obligation by approximately Rs,52 Lakhs and Rs,0.25 Lakhs respectively .
Sensitivity for significant actuarial assumptions is computed by varying one actuarial assumption used for the valuation of the defined benefit obligation by one percentage, keeping all other actuarial assumptions constant.
(ii) Operating Lease Commitments â Company as Lessor
The company has entered into operating leases on its certain investment property portfolio. These leases have terms of eleven months to 20 years. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The total contingent rents recognized as income during the year is Rs,6.41 Lakhs fP.Y.:Rs,12.24 Lakhsl.
f. The company filed a writ petition against Jamshedpur Notified Area Committee''s [JNAC) order stopping construction work in companyâs commercial project Marine Plaza in Sonari, Jamshedpur, which was allowed by the Honâble High Court of Jharkhand, by its Order dated 1 7.12.2014. Consequently, the company was allowed to carry out construction and marketing of the project and the State Government was directed by the Court to complete their enquiry, if any, in the matter on or before 30.06.2015. The company has received a communication from Additional Deputy Commissioner, East Singhbhum, Jamshedpur through Tata Steel Ltd. that a Committee of the State Government has completed its enquiry and submitted its report to the State Government. However, any report or order in respect of the outcome of the enquiry has not been received by the company till date. Due to uncertainty and absence of any directions from the Government, the company has stopped construction work at Marine Plaza Site. A sum of Rs,2,288.22 Lakhs has been incurred by the company on this project till the close of this year.
g. Companyâs land at Milakpur Gujar, Bhiwadi, District Alwar [Rajasthan) admeasuring 15.02 hectares, appearing in these accounts at book value of Rs,338.97 Lakhs, is under acquisition, 12.834 hectares for residential purposes and 2.1 86 hectares for development of road, by the Government of Rajasthan. The company has filed a Writ Petition before the Honâble High Court of Rajasthan against acquisition of land admeasuring 1 2.834 hectares challenging the entire acquisition proceeding against which the Honâble High Court has given stay. A compensation of Rs,3,712.75 Lakhs has been declared by the Government which and interest thereon Rs,1,972.44 Lakhs approx as at the close of the year shall be considered in the accounts on finality and receipt.
Management Estimations and Assumptions
a) The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
b) The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:
[i] The fair values of the quoted bonds and debentures and unquoted mutual funds are based on price quotations/NAVs at the reporting date.
[ii] The fair values of the unquoted equity shares have been determined based on certifications from valuers who have used Net Asset Value approach for determining the fair values.
Level 1: Quoted Prices in active markets for identical assets or liabilities
Level 2 : Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly [i.e. as prices) or indirectly [i.e. derived from prices).
Level 3: Inputs for the assets or liabilities that are not based on observable market data [unobservable inputs).
The companyâs policy is to recognize transfers into and the transfers out of fair value hierarchy levels as at the end of the reporting period. There are no transfers between level 1 and level 2 during the end of the reported periods.
13.3 Financial Risk Management
The companyâs principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the companyâs operations. The companyâs principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.
The companyâs activities expose it to various financial risks: market risk, credit risk and liquidity risk. The company tries to foresee the unpredictable nature of financial markets and seek to minimize potential adverse impact on its financial performance. The senior management of the company oversees the management of these risks. It is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework for the company. The risk management committee provides assurance to the companyâs senior management that the companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the companyâs policies and risk objectives. The Audit Committee has additional oversight in the area of financial risks and controls. It is the companyâs policy that no trading in derivatives for speculative purposes may be undertaken.
Mar 31, 2017
1. CORPORATE INFORMATION
Ashiana Housing Limited (âthe companyâ] is a public limited company domiciled and incorporated in India and its shares are publicly traded on the National Stock Exchange (âNSEâ] and the Bombay Stock Exchange (âBSEâ], 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 (âINRâ or â''â] 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 companyâs 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 (âdeemed date of possessionâ), 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 assetâs recoverable amount. An assetâs recoverable amount is the higher of an assetâs or cash-generating unitâs (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 ÃCurrent
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.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on Ashiana Housing Ltd.
-
Ashiana Housing Ltd. Tools
- Bulk Deals
-
Ashiana Housing Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- BSE Price History
- NSE Price History
-
Ashiana Housing Ltd. Key Financial Ratios
- Ratios
-
Ashiana Housing Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
Ashiana Housing Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
Ashiana Housing Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
Ashiana Housing Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
