Mar 31, 2018
1.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Instruments
i) Financial Assets
Financial assets comprise investments in equity instruments, mutual funds, security deposits, inter-corporate deposits, trade receivables, Cash and cash equivalents and other eligible assets.
Initial recognition and measurement
All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of the financial asset (other than financial assets recorded at fair value through profit or loss) are included in the fair value of the financial assets. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.
Subsequent Measurement
- Financial Assets measured at amortised cost: Financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payment of principal and interest (SPPI) on principal amount outstanding are measured at amortised cost using effective interest rate (EIR) method.
They are presented as current assets, except for those maturing later than 12 months after the reporting date which are presented as noncurrent assets. These financial assets are subsequently carried at amortized cost using the effective interest method, less any impairment loss. The EIR amortisation is recognised as finance income in the Statement of Profit and Loss.
Assets at amortised cost are represented by inter corporate deposits, trade receivables, security deposits, cash and cash equivalents and other eligible current and non-current financial assets.
Financial assets at fair value through other comprehensive income (FVTOCI): Financial assets held within a business model whose objective is achieved by both collecting the contractual cash flows and selling the financial assets and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payment towards principal and interest (SPPI) on principal outstanding are subsequently measured at FVTOCI. Fair value movements in financial assets at FVTOCI are recognised in other comprehensive income. However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain loss in statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from equity to profit and loss. Interest earned is recognised under the expected interest rate (EIR) model.
-Equity instruments other than investment in associates: The management determines at the initial recognition of investments in Equity instruments whether to measure it at FVTPL or FVTOCI. However, the equity instruments held for trading are always classified at fair value through Profit or Loss (FVTPL). The classification of investments at FVTOCI is irrevocable. Fair value changes on equity instruments at FVTOCI, excluding dividends, are recognised in other comprehensive income (OCI).
- Financial assets at fair value through Profit or Loss (FVTPL): Financial assets are measured at FVTPL if it does not meet the criteria for classification as measured at amortised cost or at fair value through other comprehensive income. Fair value changes are recognised in Statement of Profit and Loss.
Derecognition of financial assets
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or the financial asset is transferred and the transfer qualifies for derecognition. On derecognition of financial asset in its entirety the difference between the carrying amount (measured at the date of derecognition) and the consideration received (including any new asset obtained less any new liability assumed) shall be recognised in Statement of Profit and Loss.
Impairment of financial assets
Trade receivables, contract assets, receivables under Ind AS 109, investments in debt instruments that are carried at amortised cost, investments in debt instruments that are carried at FVTOCI are tested for impairment based on the expected credit losses (ECL) for the respective financial asset. ECL impairment loss allowance (or reversal) recognised during the period is recognised as income/expense in the Statement of Profit and Loss. The approach followed by the company for recognising the impairment loss is given below:
i) Trade receivables
An impairment analysis is performed at each reporting date. The expected credit losses over lifetime of the asset are estimated by adopting the simplified approach using a provision matrix which is based on historical loss rates reflecting current condition and forecasts of future economic conditions. The company estimates the following provision matrix at the reporting date:
ii) Other financial assets
For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12 month ECL.
iii) Financial liabilities
Financial liabilities comprise trade payables and other eligible liabilities.
Initial recognition and measurement
Financial liabilities are initially recognised at fair value. Any transaction costs that are attributable to the acquisition of the financial liabilities (except financial liabilities at fair value through profit or loss) are deducted from the fair value of financial liabilities.
Subsequent measurement
i) Financial liabilities at amortised cost: The Company has classified the following under amortised cost:
a) Trade payables
b) Other eligible financial liabilities
Amortised cost for financial liabilities represents amount at which financial liability is measured at initial recognition minus the cumulative amortisation using the effective interest rate (EIR) method of any difference between that initial amount and the maturity amount.
- Financial liabilities at fair value through profit or loss (FVTPL): Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The company has not designated any financial liability as at fair value through profit and loss.
Derecognition of financial liabilities
A financial liability shall be derecognised when, and only when, it is extinguished i.e. when the obligation specified in the contract is discharged or cancelled or expires.
iii) Off setting of financial assets and financial liabilities:
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when, and only when, the Company has a legal enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.
iv) Reclassification of financial assets
The Company determines the classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are categorised as equity instruments at FVTOCI and financial assets or financial liabilities that are specifically designated at FVTPL. For financial assets, which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The management determines change in the business model as a result of external or internal changes which are significant to the Companyâs operations. A change in the business model occurs when the Company either begins or ceases to perform an activity that is significant to its operations. If the company reclassifies financial assets, it applies the reclassification prospectively from the reclassification date which is the first day of immediately next reporting period following the change in business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.
B. Inventories
Inventories are valued as under:
- Land and plots other than area transferred to construction work-in-progress of constructed properties are valued at lower of cost or net realisable value. Cost includes land acquisition cost and land development cost. Cost of land and plots is determined on specific identification basis.
- Construction work-in-progress of constructed properties include the cost of land, internal development costs, external development charges, construction costs, overheads, borrowing cost, development/construction materials and is valued at lower of cost/estimate cost and net realisable value.
- Trading of real estate- the cost includes purchase and other costs in bringing the inventory in their present location and condition. Cost is determined specific identification basis.
C. Property, Plant and Equipment
Property, Plant and Equipment is carried at cost less accumulated depreciation and accumulated impairment losses. The cost comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price. Cost of self constructed asset include the cost of material, direct labour and any other costs directly attributable to bringing the asset to its working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased software that is integral to the functionality of the related equipment is capitalised as part of the equipment.
Gains and losses on disposal of an item of Property, Plant and Equipment are determined by comparing the proceeds from disposal with the carrying amount of Property, Plant and Equipment and are recognised net within âOther income/ Other expensesâ in the Statement of Profit and Loss
The cost of property, plant and equipment not ready for intended use before such date are disclosed under capital work- in-progress.
Subsequent costs
The cost of replacing part of an item of Property, Plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The carrying amount of the replaced part is de-recognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the Statement of Profit and Loss.
Depreciation
Depreciation on property, plant & equipment other than in relation to Chembur project is provided pro-rata to the period of use, on the Straight Line Method rates worked out based on the useful life and in the manner prescribed in the Schedule II to the Companies Act, 2013.
Depreciation on tangible assets in relation to Project at Chembur is provided on the Written Down Value method rates worked out based on the useful life and in the manner prescribed in the Schedule II to the Companies Act, 2013.
The estimated useful lives of assets for the current and comparative period of significant items of property, plant and equipment are as follows:
The company follows component approach as envisaged in Schedule II to the Companies Act, 2013. The approach involves identification of components of the asset whose cost is significant to the total cost of the asset and have useful life different from the useful life of the remaining assets and in respect of such identified components, useful life is determined separately from the useful life of the main asset. Assets acquired under finance lease and leasehold improvements are amortized over the lower of estimated useful life and lease term. Depreciation on additions is provided on a pro-rata basis from the month of acquisition/installation. Depreciation on sale/deduction from property, plant & equipment is provided for up to the date of sale/adjustment, as the case may be.
Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.
The depreciation method, useful lives and residual value are reviewed at each of the reporting date.
D. Intangible assets
Intangible asset are carried at cost of acquisition less amortisation. The cost of an item of intangible assets comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.
Amortisation of Intangible assets
Intangible assets are amortised on straight line method on pro-rata basis over a period of three years.
E. Investment property
Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.
The cost includes the cost of replacing parts and borrowing costs for long-term construction projects if the recognition criteria are met. When significant parts of the investment property are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. All other repair and maintenance costs are recognised in profit or loss as incurred.
The Company depreciates building component of investment property over 60 years from the date of original purchase as per the requirement of Schedule II of the Companies Act, 2013. The leasehold investment properties are amortised over the term of the lease. Though the Company measures investment property using cost based measurement, the fair value of investment property is disclosed in the notes. Fair values are determined based on an annual evaluation performed by an accredited external independent valuer. Investment properties are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.
F. Investment in subsidiaries and associates
Investment in subsidiaries and associates is recognised at cost less impairment. Dividend income from subsidiaries and associates is recognised when its right to receive the dividend is established.
G. Foreign currency transactions and balances
Transactions in foreign currencies are initially recognised in the standalone financial statements using exchange rates prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated to the relevant functional currency at the exchange rates prevailing at the reporting date. Non- monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate prevailing on the date that the fair value was determined. Non- monetary assets and liabilities denominated in a foreign currency and measured at historical cost are translated at the exchange rate prevalent at the date of transaction. Foreign currency differences arising on translation are recognised in the Statement of Profit and Loss for determination of net profit or loss during the period.
H. Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset. Other borrowing costs are recognized as expenses in the period in which they are incurred. To the extent the Company borrows funds generally and uses them for the purpose of obtaining a qualifying asset, the Company determines the amount of borrowings costs eligible for capitalization by applying a capitalization rate to the expenditure incurred on such asset. The capitalization rate is determined based on the weighted average of borrowing costs applicable to the borrowings of the Company which are outstanding during the period, other than borrowings made specifically towards purchase of the qualifying asset. The amount of borrowing costs that the Company capitalizes during a period does not exceed the amount of borrowing costs incurred during that period.
I. Leases Operating leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating lease charges are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.
J. Deposits provided to lessor
The company is generally required to pay refundable security deposits in order to obtain property leases from various lessor. Such security deposits are financial assets and are recorded at fair value on initial recognition. The difference between the initial fair value and the refundable amount of the deposit is recognized as a lease prepayment. The initial fair value is estimated as the present value of the refundable amount of security deposit, discounted using the market interest rates for similar instruments. âSubsequent to initial recognition, the security deposit is measured at amortized cost using the effective interest method with the carrying amount increased over the lease period up to the refundable amount. The amount of increase in the carrying amount of deposit is recognized as interest income. The lease prepayment is amortized on a straight line basis over the lease term as lease rental expense.
K. Revenue
Revenue from the sale of Flat/Plots is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably.
Interest income is recognized as it accrues in Statement of Profit and Loss using the effective interest method.
Profit on trading of mutual fund units is recognised only on redemption of units.
L. Impairment of non-financial assets
The carrying amount of the Companyâs non-financial assets, other than deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assetâs recoverable amount is estimated. The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risk specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from the continuing use that are largely independent of cash inflows of other assets or group of assets (the cash generating unit).
An impairment loss is recognized if the carrying amount of an asset or its cash generating unit exceeds its estimated recoverable amount. Impairment losses are recognised in the Statement of Profit and Loss. Impairment losses are recognised in respect of cash generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit or group of units on a pro rata basis.
Reversal of impairment loss
Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized directly in other comprehensive income and presented within equity.
M. Earnings per share (EPS)
Basic earnings per share is computed using the weighted average number of equity shares outstanding during the period.
Diluted earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.
N. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash on hand, cash at banks, demand deposits, short-term deposits with an balance maturity of three months or less as at the balance sheet date, which are subject to an insignificant risk of changes in value. For the purpose of Statement of Cash Flows, cash and cash equivalents comprise cash on hand, cash at banks, demand deposits, short-term deposits with balance maturity of three months or less from the balance sheet date and other short term investments, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
O. Employee Benefits
i) Short Term Benefits
Employee benefits (other than post employment benefits) which fall due wholly within twelve months after the end of the year in which the employees render the related service are recognized at the amount expected to be paid for it.
ii) Post Employment Benefits
The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Companyâs only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the Companyâs obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company. The present value of the defined benefit obligations is calculated using the projected unit credit method.
The Company has the following post employment benefit plans:
Gratuity
In accordance with the Payment of Gratuity Act, 1972, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The Companyâs obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. Actuarial gains or losses are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods.
iii) Other long term employee benefits Earned Leave Encashment and Sick Leave
The employees of the Company are entitled to earned leaves and sick leaves. The employees can carry forward a portion of the unutilised earned leaves and utilise it in future periods or receive cash at retirement or termination of employment. The employees can carry forward the unutilised sick leaves and utilise it in future periods and it lapses at retirement or termination of employment. The Company records an obligation for earned leave and sick leaves in the period in which the employee renders the services that increases this entitlement. The Company measures the expected cost of earned leave and sick leave as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the end of the reporting period. The Company recognizes accumulated earned leave and sick leave based on actuarial valuation. Non-accumulating leave encashment are recognized in the period in which the absences occur. The Company recognizes actuarial gains and losses immediately in the statement of profit and loss.
P. Provisions & Contingencies
A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise. When there is a possible obligation or present obligation where the likelihood of an outflow is remote, no disclosure or provision is made.
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. A contingent asset is disclosed, where an inflow of economic benefits is probable.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset, if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.
Q. Income Taxes
Income tax comprises current tax and deferred tax. Income tax expense is recognized in the statement of profit and loss except to the extent it relates to items directly recognized in equity or in other comprehensive income.
Current tax
Current tax for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities based on the taxable income for the period. The tax rates and tax laws used to compute the current tax amount are those that are enacted or substantively enacted by the reporting date and applicable for the period. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis or to realize the asset and liability simultaneously.
Deferred tax
Deferred tax is recognized using the balance sheet approach. Deferred tax assets and liabilities are recognized for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in standalone financial statements, except when the deferred tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profits or loss at the time of the transaction.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.
Deferred tax liabilities are recognized for all taxable temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Mar 31, 2016
1.1 Basis of Preparation of Financial Statements
These financial statements have been prepared and presented on a going concern basis under the historical cost convention (except assets revalued), on the accrual basis of accounting and comply with the Accounting Standards prescribed by the Section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, other pronouncements of the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013/Companies Act, 1956, as adopted consistently by the Company.
1.2 Use of estimates
The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in current and future periods.
1.3 Summary of significant accounting policies
A. Investments
Investment are either classified as current or long term based on Management''s intention. Long term investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investments. Short term investments are carried at lower of cost or fair value.
B. Fixed Assets and depreciation Tangible Assets
Tangible fixed assets are carried at cost of acquisition less accumulated depreciation. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.
Tangible assets held for disposal are stated at the lower of their book value and net realizable value.
Intangible Assets
Intangible asset represents computer software acquired by the Company carried at cost of acquisition less amortization. The cost of an item of intangible fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.
Depreciation
Depreciation on fixed assets other than in relation to Chembur project is provided pro-rata to the period of use, on the Straight Line Method rates worked out based on the useful life and in the manner prescribed in the Schedule II to the Companies Act, 2013. Depreciation on tangible assets in relation to Project at Chembur is provided on the Written Down Value method rates worked out based on the useful life and in the manner prescribed in the Schedule II to the Companies Act, 2013.The Company follows component approach as envisaged in Schedule II to the Companies Act, 2013. The approach involves identification of components of the asset whose cost is significant to the total cost of the asset and have useful life different from the useful life of the remaining assets and in respect of such identified components, useful life is determined separately from the useful life of the main asset. Leasehold improvements/assets/premium are depreciated over the remaining period of the lease. Depreciation on additions is provided on a pro-rata basis from the month of acquisition/installation. Depreciation on sale/deduction from fixed assets is provided for up to the date of sale/adjustment, as the case may be. Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset. Intangible assets are amortized on straight line method on pro-rata basis over a period of three years.
C. Impairment
The carrying amounts of assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the Statement of Profit and Loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the carrying amount of the assets does not exceed the carrying amount that would have been determined net off depreciation or amortization, if no impairment loss had been recognized.
D. Inventories
Raw Material, Work In Progress, Finished goods and securities held for trading are valued at cost or net realizable value, whichever is lower. The basis of determining cost is Material Cost plus appropriate share of labour and production overheads. In respect of securities, cost includes the acquisition cost along with the relevant incidental charges.
E. Recognition of Income & Expenditure
Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection.
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.
Brokerage, Service Tax, Education Cess and Securities Transaction Tax to the extent not available as rebate under Income Tax Act, 1961 on purchase/sale of shares and other securities are charged directly to Statement of Profit and Loss.
Provision for loss in respect of Open Equity Derivative Instruments as at the Balance Sheet date is made Index-wise/Scrip-wise. As a matter of prudence, any anticipated profit is ignored.
In case of Plots/Flats, sales are recognized on transfer of significant risks and rewards of ownership to the buyer.
F. Employee Benefits
(i) Short Term Benefits
Employee benefits (other than post employment benefits) which fall due wholly within twelve months after the end of the year in which the employees render the related service are recognized at the amount expected to be paid for it.
(ii) Post Employment Benefits Defined contribution plans
Liability in respect of defined contribution plans are accounted for to the extent of contributions paid/payable to the separate entity/trust/fund.
Defined Benefit Plans
(a) The liability is determined based on actuarial valuation using the Projected Unit Credit Method as at the balance sheet date, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
(b) The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, is based on market yields on Government securities as at the balance sheet date.
(c) Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss. Gains or losses on the curtailment or settlement of any defined benefit plan are recognized when the curtailment or settlement occurs.
(iii) Other Long term Employee Benefits
The liability is determined based on actuarial valuation using the Projected Unit Credit Method as at the balance sheet date, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
G. Foreign Exchange Transactions and Derivative Transactions
Foreign currency transactions are recorded at the exchange rates prevailing on the date of the respective transactions. Realized gains and losses on foreign currency transactions during the year are recognised in the Statement of Profit and Loss. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at year end rates and resultant gains/losses on foreign currency translations are recognized in the Statement of Profit and Loss.
H. Income tax
Income tax expense comprises current tax (i.e. the amount of tax for the year determined in accordance with the Income-tax Act, 1961) and deferred tax charge or credit (reflecting the tax effects of the timing differences between the accounting income and taxable income for the year). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. However, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized.
I. Provision & Contingencies
A provision arising from claims, litigation, assessment, fines, penalties, etc. is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These are reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have risen from past events and the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the enterprise. When there is a possible obligation or present obligation where the likelihood of an outflow is remote, no disclosure or provision is made.
J. Leases
Operating leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased asset are classified as operating leases. Operating non cancellable lease charges are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the non cancellable lease term.
K. Earnings per share
In determining basic earnings per share, the Company considers the net profit attributable to equity shareholders. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. In determining diluted earnings per share, the net profit attributable to equity shareholders and weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.
L. Cash and cash equivalents
Cash and cash equivalents comprise cash balances on hand, cash balance with bank and fixed deposits with an original maturity period of three months or less.
Mar 31, 2014
A. Basis of Preparation of Financial Statements
The Financial Statements have been prepared under the historical cost
convention on an accrual basis of accounting unless otherwise stated,
and in accordance with the generally accepted accounting principles and
accounting standards notified under the companies Act, 1956 read with
the General Circular 15/2013 dated 13th September, 2013 of the Ministry
of Corporate Affairs in respect of Section 133 of the Companies Act,
2013 and all the other relevant provisions of the Companies Act, 1956
and Companies Act, 2013 in force.
B. Use of estimates
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provision for doubtful debts, employee benefits,
provision for income taxes, the useful lives of depreciable fixed
assets and provisions for impairment.
C. Investments
Long term investments are stated at cost less provision, if any, for
diminution in value of such investments other than temporary. Current
investments are stated at lower of cost and fair value.
D. Fixed Assets and depreciation
Tangible Assets
Fixed assets are stated at cost less accumulated depreciation. Cost
includes all incidental expenditure net of MODVAT/CENVAT wherever
applicable.
Intangible Assets
Computer Software''s are capitalised and depreciated on an estimated
useful life of three years. Depreciation
(a) Depreciation on tangible assets is provided on Straight Line Method
(SLM) at rates specified in Schedule XIV to the Companies Act, 1956.
(b) Lease hold lands are amortised over period of lease.
E. Impairment
The carrying amount of assets is reviewed at each balance sheet date to
determine if there is any indication of impairment thereof based on
external/internal factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount, which
represents the greater of the ''net selling price'' of assets and their
''value in use''.
F. Inventories
Inventories are valued at cost or net realizable value whichever is
lower. The cost is determined on FIFO basis.
G. Recognition of Income & Expenditure
Revenue is recognised only when risks and rewards incidental to
ownership are transferred to the customer, it can be reliably measured
and it is reasonable to expect ultimate collection.
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.
Brokerage, Service Tax, Education Cess and Securities Transaction Tax
to the extent not available as rebate under Income Tax Act, 1961 on
purchase/sale of shares and other securities are charged directly to
Profit & Loss Account.
Provision for loss in respect of Open Equity Derivative Instruments as
at the Balance Sheet date is made Index-wise/Scrip-wise. As a matter of
prudence, any anticipated profit is ignored.
In case of Plots/Flats, sales are recognized on transfer of significant
risks and rewards of ownership to the buyer.
H. Employee Benefits
(i) Long Term Employee Benefits
a) Defined Contribution Plans
The company''s contribution to defined contribution plans is charged to
Profit & Loss Account as incurred.
b) Defined Benefit Plans
Defined Benefit Plan is provided on the basis of valuation as at the
balance sheet date carried out by independent actuary. The actuarial
valuation method used by independent actuary for measuring the
liability is the Projected Unit Credit Method.
c) Other Long Term Employee Benefits
Other long term benefit is provided on the basis of valuation as at the
date carried out by independent actuary. The actuarial valuation method
used by independent actuary for measuring the liability is the
Projected Unit Credit Method.
(ii) Actuarial gains and losses comprise experience adjustments and the
effects of the changes in actuarial assumptions are recognized
immediately in the Profit & Loss Account as income or expense.
(iii) Employee benefits which fall due wholly within twelve months
after the end of the period in which the employees render the related
service are recognized at the amount expected to be paid for it.
I. Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Liability/receivables on
account of foreign currency are converted at the exchange rates
prevailing as at the end of the year and gains/losses thereon are taken
to the Profit & Loss Account.
J. Taxation
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is recognized, subject to
considerations of prudence, 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 periods.
K. Provision
A provision is recognized when the company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle such obligation, in respect of which a
reliable estimate can be made.
L. Leases
Operating Lease payments are recognized as expenses in the Statement of
Profit and Loss as per terms of the lease agreement. M. Contingent
Liabilities
Contingent liabilities not provided for in the accounts are separately
disclosed in the "Notes forming part of the financial statements".
N. Earnings per share
The earnings considered in ascertaining the Company''s EPS comprises the
net profit after tax. The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
(c) Rights, preference and restrictions attached to shares:
Equity Shares: The company has one class of equity shares having a par
value of Rs. 10 per share. Each shareholder is eligible for one vote per
share held. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their
shareholding.
No deferred tax asset on brought forward losses and unabsorbed
depreciation, in excess of deferred tax liability has been recognized
on conservative basis in the absence of virtual certainty of
availability of sufficient future taxable income as at 31.03.2014.
Based on the information available with the Company, there are no dues
as at March 31, 2014 payable to enterprises covered under "Micro, Small
and Medium Enterprises Development Act, 2006". No interest is
paid/payable by the Company in terms of Section 16 of the Micro, Small
and Medium Enterprises Development Act, 2006.
* In the opinion of the management, diminution in value of long term
Investment in Associate companies, M/s Oswal Greentech Limited and M/s
News Nation Network Pvt. Ltd., is not permanent in nature. Hence, no
provision for the same has been provided during the year ended
31.03.2014.
** Redeemable or convertible into equity shares on or after 31-12-2015
i.e. after 5 years from the date of allotment but before 30-12- 2025
i.e. 15 years from the date of issue.
# Rs. 171,257.96 thousand in respect of investment made in M/s P C Media
Systems Ltd. These equity shares has been valued at Rs.9.90 per share in
accordance with net worth of the company. Provision has been made by
difference amount of cost and book value of the shares and Rs.16,962.04
thousand in respect of investment in Oswal Overseas Limited (Wholly
owned subsidiary), based upon the proportionate erosion of share
capital.
Employee Benefits
As per Accounting Standard 15 "Employee Benefits", the disclosure as
defined in the Accounting Standard are given below:- a) Defined
Contribution Plans
The company has recognized the following amounts in the Profit and Loss
Account for the year:
Employer''s contribution to Employees'' Provident Fund including family
pension fund Rs.129.53 thousand (Previous Year Rs.108.31 thousand) b)
Defined Benefit Plans
* Provision has been made during the year of Rs. Nil (Previous year Rs.
16,962.04 thousand) in respect of investment in Oswal Overseas Limited
(Wholly owned subsidiary), based upon the proportionate erosion of
share capital.
** The Company has terminated an agreement for sale of area, being
developed under joint agreement with Oswal Greentech Limited, in view
of the judgment of the Hon''ble High Court of Bombay for staying the
development work. Due to the termination it has suffered a loss of Rs.
Nil (Previous year Rs. 250,000 thousand).
Mar 31, 2012
A. Accounting Convention
The financial statements are prepared under historical cost convention
on accrual basis in accordance with the mandatory accounting standards
read with notes and relevant presentational requirements of the
Companies Act, 1956.
B. Investments
Long term investments are stated at cost less provision, if any, for
diminution in value of such investments other than temporary. Current
investments are stated at lower of cost and fair value.
C. Fixed Assets
a) Fixed assets are shown at cost less accumulated depreciation.
b) Depreciation on fixed assets is provided on Straight Line Method
(SLM) at rates specified in Schedule XIV to the Companies Act, 1956.
c) No depreciation is provided on fixed assets held for disposal and
shown under current assets at estimated realizable value.
D. Inventories
Inventories are valued at cost or net realizable value whichever is
lower. The cost is determined on FIFO basis.
E. Interest
Interest on securities (other than fixed deposits with banks)
pledged/deposited with the Government Departments is accounted for on
cash basis.
F. Recognition of Income & Expenditure
a) Brokerage, Service Tax, Education Cess and Securities Transaction
Tax to the extent not available as rebate under Income Tax Act, 1961 on
purchase/sale of shares and other securities are charged directly to
Profit & Loss Account.
b) Provision for loss in respect of Open Equity Derivative Instruments
as at the Balance Sheet date is made Index-wise/Scrip-wise. As a matter
of prudence, any anticipated profit is ignored.
G. Provision
A provision is recognized when the company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle such obligation, in respect of which a
reliable estimate can be made.
H. Contingent Liabilities
Contingent liabilities not provided for in the accounts are separately
disclosed in the "Notes to Accounts".
I. Employee Benefits
i Long Term Employee Benefits
a) Defined Contribution Plans
The company's contribution to defined contribution plans is charged
to Profit & Loss Account as incurred.
b) Defined Benefit Plans
Defined Benefit Plan is provided on the basis of valuation as at the
balance sheet date carried out by independent actuary. The actuarial
valuation method used by independent actuary for measuring the
liability is the Projected Unit Credit Method.
c) Other Long Term Employee Benefits
Other long term benefit is provided on the basis of valuation as at the
date carried out by independent actuary. The actuarial valuation method
used by independent actuary for measuring the liability is the
Projected Unit Credit Method.
ii Actuarial gains and losses comprise experience adjustments and the
effects of the changes in actuarial assumptions are recognized
immediately in the Profit & Loss Account as income or expense.
iii Employee benefits which fall due wholly within twelve months after
the end of the period in which the employees render the related service
are recognized at the amount expected to be paid for it.
J. Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Liability / receivables on
account of foreign currency are converted at the exchange rates
prevailing as at the end of the year and gains / losses thereon are
taken to the Profit & Loss Account.
K. Earnings per share
The earnings considered in ascertaining the Company's EPS comprises
the net profit after tax. The number of shares used in computing Basic
EPS is the weighted average number of shares outstanding during the
year. The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
L. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
Mar 31, 2011
I) Accounting Convention:
The financial statements are prepared under historical cost convention
on accrual basis in accordance with the mandatory accounting standards
read with notes and relevant presentational requirements of the
Companies Act, 1956.
ii) Investments:
Long term investments are stated at cost less provision, if any, for
diminution in value of such investments other than temporary. Current
investments are stated at lower of cost and fair value.
iii) Fixed Assets:
a) Fixed assets are shown at cost less accumulated depreciation.
b) Depreciation on fixed assets is provided on Straight Line Method
(SLM) at rates specified in Schedule XIV to the Companies Act, 1956.
c) No depreciation is provided on fixed assets held for disposal and
shown under current assets at estimated realizable value.
iv) Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. The cost is determined on FIFO basis.
v) Interest:
Interest on securities (other than fixed deposits with banks)
pledged/deposited with the Government Departments is accounted for on
cash basis.
vi) Recognition of Income & Expenditure:
a) Brokerage, Service Tax, Education Cess and Securities Transaction
Tax to the extent not available as rebate under Income Tax Act, 1961 on
purchase/sale of shares and other securities are charged directly to
Profit & Loss Account.
b) Provision for loss in respect of Open Equity Derivative Instruments
as at the Balance Sheet date is made Index-wise/Scrip- wise. As a
matter of prudence, any anticipated profit is ignored
vii) Provision:
A provision is recognized when the company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle such obligation, in respect of which a
reliable estimate can be made.
viii) Contingent Liabilities:
Contingent liabilities not provided for in the accounts are separately
disclosed in the "Notes to Accounts".
ix) Employee Benefits:
i. Long Term Employee Benefits
a) Defined Contribution Plans
The company's contribution to defined contribution plans is charged to
Profit & Loss Account as incurred.
b) Defined Benefit Plans
Defined benefit plan is provided on the basis of valuation as at the
balance sheet date carried out by independent actuary. The actuarial
valuation method used by independent actuary for measuring the
liability is the Projected Unit Credit Method
c) Other Long Term Employee Benefits
Other long term benefit is provided on the basis of valuation as at the
date carried out by independent actuary. The actuarial valuation method
used by independent actuary for measuring the liability is the
Projected Unit Credit Method.
ii. Actuarial gains and losses comprise experience adjustments and the
effects of the changes in actuarial assumptions are recognised
immediately in the Profit & Loss Account as income or expense iii.
Employee benefits which fall due wholly within twelve months after the
end of the period in which the employees render the related service are
recognised at the amount expected to be paid for it.
x) Earnings Per Share:
The earnings considered in ascertaining the Company's EPS comprises the
net profit after tax. The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
xi) Use of Estimates:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
Mar 31, 2010
I) Accounting Convention
The financial statements are prepared under historical cost convention
on accrual basis in accordance with the mandatory accounting standards
read with notes and relevant presentational requirements of the
Companies Act, 1956.
ii) Investments :
Long term investments are stated at cost less provision, if any, for
diminution in value of such investments other than temporary. Current
investments are stated at lower of cost and fair value.
iii) Fixed Assets :
(a) Fixed assets are shown at cost less accumulated depreciation.
(b) Depreciation on fixed assets is provided on Straight Line Method
(SLM) at rates specified in Schedule XIV to the Companies Act, 1956.
(c) No depreciation is provided on fixed assets held for disposal and
shown under current assets at estimated realizable value. iv)
Inventories:
Inventories are valued at cost or net realizable value whichever is
lower. The cost is determined on FIFO basis.
v) Interest:
Interest on securities (other than fixed deposits with banks)
pledged/deposited with the Government Departments is accounted for on
cash basis.
vi) Recognition of Income & Expenditure
a) Brokerage, Service Tax, Education Cess and Securities Transaction
Tax to the extent not available as rebate under Income Tax Act, 1961 on
purchase/sale of shares and other securities are charged directly to
Profit & Loss Account.
b) Provision for loss in respect of Open Equity Derivative Instruments
as at the Balance Sheet date is made Index-wise/Scrip-wise. As a
matter of prudence, any anticipated profit is ignored.
vii) Provision
A provision is recognized when the company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle such obligation, in respect of which a
reliable estimate can be made.
viii) Contingent Liabilities
Contingent liabilities not provided for in the accounts are separately
disclosed in the "Notes to Accounts". ix) Employee Benefits
i. Long Term Employee Benefits
a) Defined Contribution Plans
The companys contribution to defined contribution plans is charged to
Profit & Loss Account as incurred.
b) Defined Benefit Plans
Defined Benefit Plan is provided on the basis of valuation as at the
balance sheet date carried out by independent actuary. The actuarial
valuation method used by independent actuary for measuring the
liability is the Projected Unit Credit Method.
c) Other Long Term Employee Benefits
Other long term benefit is provided on the basis of valuation as at the
date carried out by independent actuary. The actuarial valuation method
used by independent actuary for measuring the liability is the
Projected Unit Credit Method.
ii. Actuarial gains and losses comprise experience adjustments and the
effects of the changes in actuarial assumptions are recognised
immediately in the Profit & Loss Account as income or expense.
iii. Employee benefits which fall due wholly within twelve months
after the end of the period in which the employees render the related
service are recognised at the amount expected to be paid for it.
x) Foreign Exchange Transactions
Transactions in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction. Liability / receivables on
account of foreign currency are converted at the exchange rates
prevailing as at the end of the year and gains / losses thereon are
taken to the Profit & Loss Account.
xi) Earnings per share
The earnings considered in ascertaining the Companys EPS comprises the
net profit after tax. The number of shares used in computing Basic EPS
is the weighted average number of shares outstanding during the year.
The number of shares used in computing Diluted EPS comprises of
weighted average shares considered for deriving Basic EPS, and also the
weighted average number of equity shares which could have been issued
on the conversion of all dilutive potential equity shares.
xii) Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
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