Mar 31, 2015
A. Basis of preparation of Financial Statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act'2013 ("Act") read with Rule 7 of the Companies (Accounts) Rules,
2014, the provisions of the Act (to the extent notified) and guidelines
issued by the Securities and Exchange Board of India (SEBI). Accounting
policies have been consistently applied except where a newly issued
accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy hitherto
in use.
b. Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles ('GAAP') requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
c. Revenue Recognition
Revenue from services is recognized as per the terms of the contract
with the customer using the proportionate completion method.
Income from fixed price construction contracts is recognized by
reference to the estimated overall profitability of the contract under
the percentage of completion method. Percentage of completion is
determined as a proportion of the costs incurred up to the reporting
date to the total estimated contract costs. Provision for expected loss
is recognized immediately when it is probable that the total estimated
contract costs will exceed total contract revenue.
Revenues under cost plus contracts are recognized as services are
rendered on the basis of an agreed mark-up on costs incurred in
accordance with arrangement entered.
Revenue recognition is postponed in circumstances when significant
uncertainty with respect to collectability exists.
Maintenance revenue is considered on acceptance of the contract and is
accrued over the period of the contract.
Dividend income is recognized when the right to receive the dividend is
established.
Interest income is recognized on accrual or receipt, whichever is
earlier.
d. Fixed assets, Borrowing Costs and Depreciation
Fixed assets are stated at cost of acquisition (including directly
attributable costs such as freight, installation, taxes, duties etc.)
or construction, or their corresponding revalued amounts less
accumulated depreciation. Borrowing costs directly attributable to
acquisition or construction of those fixed assets, which necessarily
take a substantial period of time to get ready for their intended use,
are capitalized.
Depreciation on assets are provided on Straight Line Method over the
useful life of the assets.
Useful Life as provided under Schedule II of the Companies Act' 2013 is
considered.
Residual value for all assets is considered as 'NIL'.
e. Impairment
The Company assesses at each balance sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or cash generating unit. The
recoverable amount is the greater of the asset's net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. If such recoverable amount of the asset or the recoverable
amount of the cash-generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost had no impairment been recognized.
f. Investments
Investments that are readily realizable and intended to be held but not
more than a year are classified as current investments. All other
investments are classified as long term investments.
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.
The cost of investment includes acquisition costs such as brokerage,
fees and duties.
g. Inventories
Inventories comprise Work-in-Progress on ongoing projects and Land held
by the company as on the last day of the financial year.
Work-in-Progress and Land are valued at actual cost.
h. Income Taxes:
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Ta x Act, 1961. Deferred income tax
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realized. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognized only if there is virtual
certainty supported by convincing evidence that they can be realized
against future taxable profits.
At each balance sheet date, the Company re-assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The Company writes- down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
The Company offsets, on a year on year basis, the current tax assets
and liabilities, where it has a legally enforceable right and where it
intends to settle such assets and liabilities on a net basis.
i. Earnings per share
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
j. Provision, Contingent Liabilities and Contingent Assets:
A provision is recognized when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the company exists as at the Balance Sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best management estimates. Contingent assets are neither
recognized nor disclosed in the financial statements.
In accordance with "Accounting Standard 22", the Company has recognised
in the Statement of Profit & Loss a sum of Rs. 19,924 /- as Deferred Ta
x Asset (Net) for the Year.
Mar 31, 2014
A. Basis of preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and comply with the accounting standards specified in the Companies
(Accounting Standards) Rules 2006, issued by the Central Government, in
consultation with National Advisory Committee on Accounting Standards
(''NACAS'') and relevant provisions of Companies Act, 1956 (''the Act''),
to the extent applicable.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (''GAAP'') requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Revenue Recognition
Revenue from services is recognised as per the terms of the contract
with the customer using the proportionate completion method.
Income from fixed price construction contracts is recognised by
reference to the estimated overall profitability of the contract under
the percentage of completion method. Percentage of completion is
determined as a proportion of the costs incurred up to the reporting
date to the total estimated contract costs. Provision for expected loss
is recognized immediately when it is probable that the total estimated
contract costs will exceed total contract revenue.
Revenues under cost plus contracts are recognised as services are
rendered on the basis of an agreed mark-up on costs incurred in
accordance with arrangement entered.
Revenue recognition is postponed in circumstances when significant
uncertainty with respect to collectability exists.
Maintenance revenue is considered on acceptance of the contract and is
accrued over the period of the contract.
Dividend income is recognised when the right to receive the dividend is
established.
Interest income is recognized on accrual or receipt, whichever is
earlier.
d. Fixed assets, Borrowing Costs and Depreciation
Fixed assets are stated at cost of acquisition (including directly
attributable costs such as freight, installation, taxes, duties etc.)
or construction, or their corresponding revalued amounts less
accumulated depreciation. Borrowing costs directly attributable to
acquisition or construction of those fixed assets, which necessarily
take a substantial period of time to get ready for their intended use,
are capitalised.
Depreciation is provided, based on the Straight Line Method (''SLM'').
The depreciation rates prescribed in Schedule XIV to the Act are
considered as the minimum rates. If the management''s estimate of the
useful life of a fixed asset at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid Schedule, depreciation is provided at a
higher rate based on the management''s estimate of useful life/
remaining life.
Assets costing less than Rs 5,000 are fully charged to the profit and
loss account in the year of acquisition.
e. Impairment
The Company assesses at each balance sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or cash generating unit. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. If such recoverable amount of the asset or the recoverable
amount of the cash-generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost had no impairment been recognised.
f. Investments
Investments that are readily realizable and intended to be held but not
more than a year are classified as current investments. All other
investments are classified as long term investments.
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.
The cost of investment includes acquisition costs such as brokerage,
fees and duties.
g. Inventories
Inventories comprise Work-in-Progress on ongoing projects and Land held
by the company as on the ast day of the financial year.
Work-in-Progress and Land are valued at actual cost.
h. Income Taxes:
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Ta x Act, 1961. Deferred income tax
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits.
At each balance sheet date, the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
The Company offsets, on a year on year basis, the current tax assets
and liabilities, where it has a legally enforceable right and where it
intends to settle such assets and liabilities on a net basis.
i. Earnings per share
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
j. Provision, Contingent Liabilities and Contingent Assets:
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the company exists as at the Balance Sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best management estimates. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2013
A. Basis of preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and comply with the accounting standards specified in the Companies
(Accounting Standards) Rules 2006, issued by the Central Government, in
consultation with National Advisory Committee on Accounting Standards
(''NACAS'') and relevant provisions of Companies Act, 1956 (''the Act''),
to the extent applicable.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (''GAAP'') requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Revenue Recognition
Revenue from services is recognised as per the terms of the contract
with the customer using the proportionate completion method.
Income from fixed price construction contracts is recognised by
reference to the estimated overall profitability of the contract under
the percentage of completion method. Percentage of completion is
determined as a proportion of the costs incurred up to the reporting
date to the total estimated contract costs. Provision for expected loss
is recognized immediately when it is probable that the total estimated
contract costs will exceed total contract revenue.
Revenues under cost plus contracts are recognised as services are
rendered on the basis of an agreed mark-up on costs incurred in
accordance with arrangement entered.
Revenue recognition is postponed in circumstances when significant
uncertainty with respect to collectability exists.
Maintenance revenue is considered on acceptance of the contract and is
accrued over the period of the contract.
Dividend income is recognised when the right to receive the dividend is
established.
Interest income is recognized on accrual or receipt, whichever is
earlier.
d. Fixed assets, Borrowing Costs and Depreciation
Fixed assets are stated at cost of acquisition (including directly
attributable costs such as freight, installation, taxes, duties etc.)
or construction, or their corresponding revalued amounts less
accumulated depreciation. Borrowing costs directly attributable to
acquisition or construction of those fixed assets, which necessarily
take a substantial period of time to get ready for their intended use,
are capitalised.
Depreciation is provided, based on the Straight Line Method (''SLM'').
The depreciation rates prescribed in Schedule XIV to the Act are
considered as the minimum rates. If the management''s estimate of the
useful life of a fixed asset at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid Schedule, depreciation is provided at a
higher rate based on the management''s estimate of useful life/
remaining life.
Assets costing less than Rs 5,000 are fully charged to the profit and
loss account in the year of acquisition.
e. Impairment
The Company assesses at each balance sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or cash generating unit. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. If such recoverable amount of the asset or the recoverable
amount of the cash-generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost had no impairment been recognised.
f. Investments
Investments that are readily realizable and intended to be held but not
more than a year are classified as current investments. All other
investments are classified as long term investments.
Long-term investments are earned at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.
The cost of investment includes acquisition costs such as brokerage,
fees and duties.
g. Inventories
Inventories comprise Work-in-Progress on ongoing projects and Land held
by the company as on the last day of the financial year.
Work-in-Progress and Land are valued at actual cost.
h. Income Taxes:
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income tax
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits.
At each balance sheet date, the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
The Company offsets, on a year on year basis, the current tax assets
and liabilities, where it has a legally enforceable right and where it
intends to settle such assets and liabilities on a net basis.
i. Earnings per share
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
j. Provision, Contingent Liabilities and Contingent Assets:
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the company exists as at the Balance Sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best management estimates. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2012
A. Basis of preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and comply with the accounting standards specified in the Companies
(Accounting Standards) Rules 2006, issued by the Central Government, in
consultation with National Advisory Committee on Accounting Standards
('NACAS') and relevant provisions of Companies Act, 1956 ('the
Act'), to the extent applicable.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles ('GAAP') requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Revenue Recognition
Revenue from services is recognised as per the terms of the contract
with the customer using the proportionate completion method.
Income from fixed price construction contracts is recognised by
reference to the estimated overall profitability of the contract under
the percentage of completion method. Percentage of completion is
determined as a proportion of the costs incurred up to the reporting
date to the total estimated contract costs. Provision for expected loss
is recognized immediately when it is probable that the total estimated
contract costs will exceed total contract revenue.
Revenues under cost plus contracts are recognised as services are
rendered on the basis of an agreed mark-up on costs incurred in
accordance with arrangement entered.
Revenue recognition is postponed in circumstances when significant
uncertainty with respect to collectability exists.
Maintenance revenue is considered on acceptance of the contract and is
accrued over the period of the contract.
Dividend income is recognised when the right to receive the dividend is
established.
Interest income is recognized on accrual or receipt, whichever is
earlier.
d. Fixed assets, Borrowing Costs and Depreciation
Fixed assets are stated at cost of acquisition (including directly
attributable costs such as freight, installation, taxes, duties etc.)
or construction, or their corresponding revalued amounts less
accumulated depreciation. Borrowing costs directly attributable to
acquisition or construction of those fixed assets, which necessarily
take a substantial period of time to get ready for their intended use,
are capitalised.
Depreciation is provided, based on the Straight Line Method ('SLM').
The depreciation rates prescribed in Schedule XIV to the Act are
considered as the minimum rates. If the management's estimate of the
useful life of a fixed asset at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid Schedule, depreciation is provided at a
higher rate based on the management's estimate of useful life/
remaining life.
Assets costing less than Rs 5,000 are fully charged to the profit and
loss account in the year of acquisition.
e. Impairment
The Company assesses at each balance sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or cash generating unit. The
recoverable amount is the greater of the asset's net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. If such recoverable amount of the asset or the recoverable
amount of the cash-generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost had no impairment been recognised.
f. Investments
Investments that are readily realizable and intended to be held but not
more than a year are classified as current investments. All other
investments are classified as long term investments.
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.
The cost of investment includes acquisition costs such as brokerage,
fees and duties.
g. Inventories
Inventories comprise completed, unsold flats, Work-in-Progress on
ongoing projects and Land held by the company as at 31st March, 2012.
Completed, unsold flats are valued at estimated cost. Work-in- Progress
and Land are valued at actual cost.
h. Income Taxes:
Tax expense comprises current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961. Deferred income tax
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits.
At each balance sheet date, the Company re-assesses unrecognised
deferred tax assets. It recognises unrecognised deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
The Company offsets, on a year on year basis, the current tax assets
and liabilities, where it has a legally enforceable right and where it
intends to settle such assets and liabilities on a net basis.
i. Earnings per share
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
j. Provision, Contingent Liabilities and Contingent Assets:
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
its present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the company exists as at the Balance Sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best management estimates. Contingent assets are neither
recognized nor disclosed in the financial statements.
Mar 31, 2010
A. Basis of preparation of Financial Statements
The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
and comply with the accounting standards specified in the Companies
(Accounting Standards) Rules 2006, issued by the Central Government, in
consultation with National Advisory Committee on Accounting Standards
(NACAS) and relevant provisions of Companies Act, 1956 (the Act),
to the extent applicable.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous year.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Actual results could differ from
those estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
c. Fixed assets, Borrowing Costs and Depreciation
Fixed assets are stated at cost of acquisition (including directly
attributable costs such as freight, installation, taxes, duties etc.)
or construction, or their corresponding revalued amounts less
accumulated depreciation. Borrowing costs directly attributable to
acquisition or construction of those fixed assets, which necessarily
take a substantial period of time to get ready for their intended use,
are capitalised.
Depreciation is provided, based on the Straight Line Method (SLM).
The depreciation rates prescribed in Schedule XIV to the Act are
considered as the minimum rates. If the managements estimate of the
useful life of a fixed asset at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid Schedule, depreciation is provided at a
higher rate based on the managements estimate of useful life/
remaining life.
Assets costing less than Rs 5,000 are fully charged to the profit and
loss account in the year of acquisition.
d. Impairment
The Company assesses at each balance sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or cash generating unit. The
recoverable amount is the greater of the assets net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted to the present value at the weighted average cost
of capital. If such recoverable amount of the asset or the recoverable
amount of the cash- generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost had no impairment been recognised.
e. Investments
Investments that are readily realizable and intended to be held but not
more than a year are classified as current investments. All other
investments are classified as long term investments.
Long-term investments are carried at cost. Provision for diminution is
made to recognize a decline, other than temporary in value of long-term
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.
The cost of investment includes acquisition costs such as brokerage,
fees and duties.
f. Inventories
Inventories comprise finished stock of completed Real estate projects.
These are valued at estimated cost.
g. Projects - in - Progress
Projects - in - Progress comprise Work in progress on ongoing projects
and Land held by the company as at 31 st March, 2010. Projects - in -
Progress are valued at cost.
h. Revenue Recognition
Revenue from services is recognised as per the terms of the contract
with the customer using the proportionate completion method.
Income from fixed price construction contracts is recognised by
reference to the estimated overall profitability of the contract under
the percentage of completion method. Percentage of completion is
determined as a proportion of the costs incurred up to the reporting
date to the total estimated contract costs. Provision for expected loss
is recognized immediately when it is probable that the total estimated
contract costs will exceed total contract revenue.
Revenues under cost plus contracts are recognised as services are
rendered on the basis of an agreed mark-up on costs incurred in
accordance with arrangement entered.
Revenue recognition is postponed in circumstances when significant
uncertainty with respect to collectability exists.
Maintenance revenue is considered on acceptance of the contract and is
accrued over the period of the contract.
Dividend income is recognised when the right to receive the dividend is
established.
Interest income is recognized on accrual or receipt, whichever is
earlier.
i. Foreign currency transactions
Initial Recognition
Transactions denominated in foreign currency are recorded in the
reporting currency at the exchange rate prevailing on the date of
transactions. Exchange differences arising on foreign exchange
transactions settled during the year are recognized in the profit and
loss account of the year.
Translation
Monetary assets and liabilities in foreign currency, which are
outstanding as at the year-end, are translated at the year-end at the
closing exchange rate. Non monetary items are stated in the balance
sheet using the exchange rate at the date of the transaction.
Exchange Differences
Exchange differences arising on the settlement of monetary items or on
reporting companys monetary items at rates different from those at
which they were initially recorded during the year, or reported in
previous financial statements, are recognised as income or as expenses
in the year in which they arise.
j. Leases
Where the Company is the lessee:
Leases where the lessor effectively retains substantially all the risk
and benefits of ownership of the leased items are classified as
operating leases. Lease payments under an operating lease, are
recognised as an expense in the statement of profit and loss on a
straight-line basis over the lease term.
Leases under which the Company assumes subsequently all the risks and
rewards of ownership are classified as finance leases. Such assets are
capitalised at fair value of the asset or present value of the minimum
lease payments at the inception of the lease, whichever is lower. Lease
payments are apportioned between the finance charges and reduction of
the lease liability based on the implicit rate of return. Finance
charges are charaed directly against income.
k. Income Taxes
Tax expense comprises current, deferred and fringe benefit tax.
Current income tax and fringe benefit tax is measured at the amount
expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act, 1961. Deferred income tax reflects the impact of
current year timing differences between taxable income and accounting
income for the year and reversal of timing differences of earlier
years.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the balance sheet date. Deferred
tax assets are recognized only to the extent that there is reasonable
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised. In situations
where the Company has unabsorbed depreciation or carry forward tax
losses, all deferred tax assets are recognised only if there is virtual
certainty supported by convincing evidence that they can be realised
against future taxable profits.
At each balance sheet date, the Company re-assesses unrecognised
deferred tax assets and recognises deferred tax assets to the extent
that it has become virtually certain, that sufficient future taxable
income will be available against which such deferred tax assets can be
realised.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The Company writes-down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realised. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
Provision for fringe benefit tax (FBT) is made on the basis of
applicable FBT on the taxable value of specified expenses of the
Company as prescribed under the Income Tax Act, 1961. However, in view
of the abolition of FBT in The Finance Bill, 2009 and circular issued
by the CBDT, advance FBT paid has been considered as Advance Income Tax
paid for the year.
l. Provision, Contingent Liabilities and Contingent Assets
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted
to its present value and are determined based on best estimate required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best
estimates.
Contingent liabilities are not provided for unless a reliable estimate
of probable outflow to the company exists as at the Balance Sheet date.
These are reviewed at each balance sheet date and adjusted to reflect
the current best management estimates. Contingent assets are neither
recognized nor disclosed in the financial statements.
m Earnings per share
Basic and diluted earnings per share are computed by dividing the net
profit attributable to equity shareholders for the year, by the
weighted average number of equity shares outstanding during the year.
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