Mar 31, 2015
1. Basis of Accounting
a. The accompanying financial statements have been prepared in
accordance with the Generally Accepted Accounting principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of Companies Act 2013 read with Rule 7 of the Companies
(Accounts) Rules,2014 and relevant provisions of the Companies Act,
2013. The financial statements have been prepared under the historical
cost convention on accrual basis.
b. All assets and liabilities have been classified as current or
non-current as per the normal operating cycle and other criteria set out
in Schedule III to the Companies Act, 2013.
c. Based on the nature of activities and the time between acquisition
of assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current / noncurrent classification of assets
and liabilities.
2. Change in accounting policy
a. Effective April 01,2014, the Company has changed its method of
providing depreciation on fixed assets from the wWritten down Value
method to the Straight Line method, at the rates prescribed in Schedule
II to the Companies Act, 2013. Management believes that this change
wwill result in more appropriate presentation and 'wvill give a
systematic basis of depreciation charge, representative of the time
pattern in which the economic benefits 'wvill be derived from the use
of these assets. Accordingly, the Company
has recognized a lesser depreciation charge of Rs. 3,33,684 for the
current year.
b. Had the Company continued to use the earlier method of
depreciation, the profit before tax for the current year would have
been lower by Rs. 3,33,684.
3. Use of estimates
a. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent assets and liabilities
on the date of the financial statements and the results of operations
during the reporting periods. Although these estimates are based upon
managements knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
4. Fixed assets and depreciation
a. Fixed assets (gross block) are stated at historical cost.
b. Depreciation on assets is provided on Straight Line method. The
Company has adopted depreciation rates as per the useful life specified
in Schedule II of the Companies Act, 2013.
c. In line with Accounting Standard 19 on Leases, fixed assets
acquired through finance lease transactions entered into on or after
1st April 2001, have been capitalised.
5. Investments
a. Investments are classified into current and non-current
investments. Current investments are stated at the lower of cost and
fair valu e. Non-current investm ents are state d at cost. A provisio n
for di minution i s m ade to recog nise a decline, other th a n te m
porary, s e parately for each in d ivi dual n on-current investment.
b. Investments that are readily realisable and are intended to be held
for not more than one year from the date, on which such investments are
made, are classified as Current investments .
c. All other investments are classified as Non-current investments .
6. Inventories
Inventories are valued as under
a. Land and Plots which are registered in the name of the company are
valued at cost.
b. Constructed properties includes the cost of land, internal
development costs, external development charges, construction costs,
development/ construction materials, and is valued at cost or net
realisable value, whichever is lower.
c. Work in progress includes internal development costs, external
development charges, construction costs, and development / construction
materials in respect to the unsold square footage.
7. Construction contracts
a. The company accounts for income on the percentage to completion
basis, which necessarily involve technical estimates of the percentage
of completion, and costs to completion of each contract/ activity, on
the basis of which profits/losses are accounted.
b. Such estimates, made by the company, have been relied upon, as
these are of a technical nature.
c. The company accounted for construction receipts at the end of the
financial year based on P ercentage of Completion Method .
d. Expenditure incurred during the progress of contracts relating to
unsold square footage up to the stage of completion are carried forward
as work- in- progress.
e. Advances and progress payments, received and receivable from
customers in respect of such construction contracts in progress are
disclosed under Current Liabilities/Current Assets respectively.
8. Revenue recognition
a. Sale of Land & Undivided Share of Land(UDS)
i. Sale of land and UDS (excluding land under agreement to sell) is
recognised in the financial year in which the sale deed is executed.
b. Revenue from constructed properties:
ii. Revenue from constructed properties is recognised on the percentage
of completion method as suggested under Accounting Standard 7 on
Construction Contracts(revised 2002) issued by the Institute of
Chartered Accountants of India. Total sale consideration as per the
agreements to sell constructed properties entered into is recognised as
revenue based on the percentage of actual project costs incurred thereon
to total estimated project cost. Project cost includes estimated
construction and development cost of such properties. The estimates of
the saleable area and costs are reviewed periodically and effect of any
changes in such estimates is recognised in the period such changes are
determined. However, when the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.
c. Interest Income
iii. Interest from various Short Term/ Long Term investments is
recognised on time proportion basis, taking into account the amount
outstanding and the rate applicable
9. Interest from customers under agreements to sell
a. Interest from customers under agreements to sell/construction is
accounted for on actual receipt. (Cash basis.)
10. Cost of revenue
a. Land and plots development costs include land acquisition cost,
internal development costs and external development charges, which are
not charged to the Statement of Profit and Loss. They are carried
forward as work in progress.
b. Cost of constructed properties and properties under construction
includes cost of land (excluding land under agreements to purchase),
internal development costs, external development charges, construction
costs and development/ construction materials, which is charged to the
Statement of Profit and Loss based on the percentage of revenue
recognised as per accounting policy (7) above, in consonance with the
concept of matching costs and revenue. Final adjustment is made on
completion of the applicable project.
11. Borrowing costs
a. Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Statement of Profit and Loss as
incurred.
12. Segment Reporting
a. Accounting Standard 17 Segment Reporting as issued by ICAI requires
the Company to disclose certain information about operating segments.
The Company is managed as a single operating unit that provides
Property Development Services only and therefore, has only one
reportable business segment. F urther, the operations of the Company
are limited within one geographical segment. Hence the disclosure
required by this standard is presently not applicable to the Company.
13. Deferred Taxation
a. Current income-tax is determined in respect of taxable income with
deferred tax being determined as the tax effect of timing differences
representing the difference between taxable income and accounting
income that originate in one period, and are capable of reversal in one
or more subsequent period(s). Such deferred tax is quantified using
rates and laws enacted or substantively enacted as at the end of the
financial year.
14. Retirement benefits
a. Expenses and liabilities in respect of employee benefits are
recorded in accordance with Revised
Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the
ICAI.
i. Provident fund
1. The Company is not liable for provident fund.
ii. Gratuity
2. Gratuity is a post employment benefit and is in the nature of a
defined benefit plan. The liability is not recognised in the balance
sheet in respect of gratuity.
15. Contingent liabilities
a. Depending upon the facts of each case and after due evaluation of
legal aspects, claims against the Company not acknowledged as debts are
treated as contingent liabilities. In respect of statutory dues
disputed and contested by the Company, contingent liabilities are not
provided for.
16. Earnings per share
a. Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for events including a bonus issue; bonus element in a
rights issue to existing shareholders; share split; and reverse share
split (consolidation of shares).
b. For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2014
1. Basis of Accounting
a. The financial statements have been prepared to comply in all
material aspects with applicable accounting principles in India and the
applicable Accounting Standards notified under Section 211(3C) of the
Companies Act, 1956. All assets and liabilities have been classified as
current or non-current as per the normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current / noncurrent classification of assets
and liabilities
2. Use of estimates
a. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on
the date of the financial statements and the results of operations
during the reporting periods. Although these estimates are based upon
management''s knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
3. Fixed assets and depreciation
a. Fixed assets (gross block) are stated at historical cost.
b. Depreciation on assets is provided on written down value method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c. In line with Accounting Standard 19 on ''Leases'', fixed assets
acquired through ''finance lease'' transactions entered into on or after
1st April 2001, have been capitalised.
4. Inventories
Inventories are valued as under
a. Land and Plots which are registered in the name of the company are
valued at cost.
b. Constructed properties includes the cost of land, internal
development costs, external development charges, construction costs,
development/ construction materials, and is valued at cost or net
realisable value, whichever is lower.
c. Work in progress includes internal development costs, external
development charges, construction costs, and development / construction
materials in respect to the unsold square footage.
5. Construction contracts
a. The company accounts for income on the percentage to completion
basis, which necessarily involve technical estimates of the percentage
of completion, and costs to completion of each contract/ activity, on
the basis of which profits/losses are accounted.
b. Such estimates, made by the company, have been relied upon, as these
are of a technical nature.
c. The company accounted for construction receipts at the end of the
financial year based on "Percentage of Completion Method".
d. Expenditure incurred during the progress of contracts relating to
unsold square footage up to the stage of completion are carried forward
as work- in- progress.
e. Advances and progress payments, received and receivable from
customers in respect of such construction contracts in progress are
disclosed under Current Liabilities/Current Assets respectively.
6. Revenue recognition
a. Sale of Land & Undivided Share of Land(UDS)
i. Sale of land and UDS (excluding land under agreement to sell) is
recognised in the financial year in which the sale deed is executed.
b. Revenue from constructed properties:
ii. Revenue from constructed properties is recognised on the
"percentage of completion method" as suggested under Accounting
Standard 7 on Construction Contracts(revised 2002) issued by the
Institute of Chartered Accountants of India. Total sale consideration
as per the agreements to sell constructed properties entered into is
recognised as revenue based on the percentage of actual project costs
incurred thereon to total estimated project cost. Project cost includes
estimated construction and development cost of such properties. The
estimates of the saleable area and costs are reviewed periodically and
effect of any changes in such estimates is recognised in the period
such changes are determined. However, when the total project cost is
estimated to exceed total revenues from the project, the loss is
recognised immediately.
c. Interest Income
iii. Interest from various Short Term/ Long Term investments is
recognised on time proportion basis, taking into account the amount
outstanding and the rate applicable
7. Interest from customers under agreements to sell
a. Interest from customers under agreements to sell/construction is
accounted for on actual receipt. (Cash basis.)
8. Cost of revenue
a. Land and plots development costs include land acquisition cost,
internal development costs and external development charges, which are
not charged to the Statement of Profit and Loss. They are carried
forward as work in progress.
b. Cost of constructed properties and properties under construction
includes cost of land (excluding land under agreements to purchase),
internal development costs, external development charges, construction
costs and development/ construction materials, which is charged to the
Statement of Profit and Loss based on the percentage of revenue
recognised as per accounting policy (7) above, in consonance with the
concept of matching costs and revenue. Final adjustment is made on
completion of the applicable project.
9. Borrowing costs
a. Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the Statement of Profit and Loss as
incurred.
10. Segment Reporting
a. Accounting Standard 17 "Segment Reporting" as issued by ICAI
requires the Company to disclose certain information about operating
segments. The Company is managed as a single operating unit that
provides Property Development Services only and therefore, has only one
reportable business segment. Further, the operations of the Company are
limited within one geographical segment. Hence the disclosure required
by this standard is presently not applicable to the Company.
11. Deferred Taxation
a. Current income-tax is determined in respect of taxable income with
deferred tax being determined as the tax effect of timing differences
representing the difference between taxable income and accounting
income that originate in one period, and are capable of reversal in one
or more subsequent period(s). Such deferred tax is quantified using
rates and laws enacted or substantively enacted as at the end of the
financial year.
12. Retirement benefits
a. Expenses and liabilities in respect of employee benefits are
recorded in accordance with Revised Accounting Standard 15 - Employee
Benefits (Revised 2005) issued by the ICAI.
i. Provident fund
1. The Company is not liable for provident fund.
ii. Gratuity
2. Gratuity is a post employment benefit and is in the nature of a
defined benefit plan. The liability is not recognised in the balance
sheet in respect of gratuity.
13. Contingent liabilities
a. Depending upon the facts of each case and after due evaluation of
legal aspects, claims against the Company not acknowledged as debts are
treated as contingent liabilities. In respect of statutory dues
disputed and contested by the Company, contingent liabilities are not
provided for.
14. Earnings per share
a. Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for events including a bonus issue; bonus element in a
rights issue to existing shareholders; share split; and reverse share
split (consolidation of shares).
b. For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2013
1. Basis of Accounting
a. The financial statements have been prepared to comply in all
material aspects with applicable accounting principles in India and the
applicable Accounting Standards notified under Section 211(3C) of the
Companies Act, 1956. All assets and liabilities have been classified as
current or non-current as per the normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realization in cash and cash
equivalents, the company has ascertained its operating cycle as 12
months for the purpose of current / noncurrent classification of assets
and liabilities.
2. Use of estimates
a. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on
the date of the financial statements and the results of operations
during the reporting periods. Although these estimates are based upon
management''s knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
3. Fixed assets and depreciation
a. Fixed assets (gross block) are stated at historical cost.
b. Depreciation on assets is provided on written down value method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c. In line with Accounting Standard 19 on ''Leases'', fixed assets
acquired through ''finance lease'' transactions entered into on or after
1st April 2001, have been capitalised.
4. Inventories
Inventories are valued as under
a. Land and Plots which are registered in the name of the company are
valued at cost.
b. Constructed properties includes the cost of land, internal
development costs, external development charges, construction costs,
development/ construction materials, and is valued at cost or net
realisable value, whichever is lower.
c. Work in progress includes internal development costs, external
development charges, construction costs, and development / construction
materials in respect to the unsold square footage.
5. Construction contracts
a. The company accounts for income on the percentage to completion
basis, which necessarily involve technical estimates of the percentage
of completion, and costs to completion of each contract/ activity, on
the basis of which profits/losses are accounted.
b. Such estimates, made by the company, have been relied upon, as
these are of a technical nature.
c. The company accounted for construction receipts at the end of the
financial year based on "Percentage of
Completion Method".
d. Expenditure incurred during the progress of contracts relating to
unsold square footage up to the stage of completion are carried forward
as work- in- progress.
e. Advances and progress payments, received and receivable from
customers in respect of such construction contracts in progress are
disclosed under Current Liabilities/Current Assets respectively.
6. Revenue recognition
a. Sale of Land & Undivided Share of Land(UDS)
i. Sale of land and UDS (excluding land under agreement to sell) is
recognised in the financial year in which the sale deed is executed.
b. Revenue from constructed properties:
ii. Revenue from constructed properties is recognised on the
"percentage of completion method" as suggested under Accounting
Standard 7 on Construction Contracts(revised 2002) issued by the
Institute of Chartered Accountants of India. Total sale consideration
as per the agreements to sell constructed properties entered into is
recognised as revenue based on the percentage of actual project costs
incurred thereon to total estimated project cost. Project cost includes
estimated construction and development cost of such properties. The
estimates of the saleable area and costs are reviewed periodically and
effect of any changes in such estimates is recognised in the period
such changes are determined. However, when the total project cost is
estimated to exceed total revenues from the project, the loss is
recognised immediately.
c. Interest Income
iii. Interest from various Short Term/ Long Term investments is
recognised on time proportion basis, taking into account the amount
outstanding and the rate applicable.
7. Interest from customers under agreements to sell
a. Interest from customers under agreements to sell/construction is
accounted for on actual receipt. (Cash basis.)
8. Cost of revenue
a. Land and plots development costs include land acquisition cost,
internal development costs and external development charges, which are
not charged to the Statement of Profit and Loss Account. They are
carried forward as work in progress.
b. Cost of constructed properties and properties under construction
includes cost of land (excluding land under agreements to purchase),
internal development costs, external development charges, construction
costs and development/ construction materials, which is charged to the
Statement of Profit and Loss Account based on the percentage of revenue
recognised as per accounting policy (7) above, in consonance with the
concept of matching costs and revenue. Final adjustment is made on
completion of the applicable project.
9. Borrowing costs
a. Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the profit and loss account as incurred.
_
10. Segment Reporting
a. Accounting Standard 17 "Segment Reporting" as issued by ICAI
requires the Company to disclose certain information about operating
segments. The Company is managed as a single operating unit that
provides Property Development Services only and therefore, has only one
reportable business segment. Further, the operations of the Company are
limited within one geographical segment. Hence the disclosure required
by this standard is presently not applicable to the Company.
11. Deferred Taxation
a. Current income-tax is determined in respect of taxable income with
deferred tax being determined as the tax effect of timing differences
representing the difference between taxable income and accounting
income that originate in one period, and are capable of reversal in one
or more subsequent period(s). Such deferred tax is quantified using
rates and laws enacted or substantively enacted as at the end of the
financial year.
12. Retirement benefits
a. Expenses and liabilities in respect of employee benefits are
recorded in accordance with Revised Accounting
Standard 15 - Employee Benefits (Revised 2005) issued by the ICAI. i.
Provident fund
1. The Company is not liable for provident fund. ii. Gratuity
2. Gratuity is a post employment benefit and is in the nature of a
defined benefit plan. The liability is not recognised in the balance
sheet in respect of gratuity.
13. Contingent liabilities
a. Depending upon the facts of each case and after due evaluation of
legal aspects, claims against the Company not acknowledged as debts are
treated as contingent liabilities. In respect of statutory dues
disputed and contested by the Company, contingent liabilities are not
provided for.
14. Earnings per share
a. Basic earnings per share is calculated by dividing the net profit
or loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for events including a bonus issue; bonus element in a
rights issue to existing shareholders; share split; and reverse share
split (consolidation of shares).
b. For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2011
1. Basis of Accounting
a. The financial statements are prepared under historical cost
convention, on accrual basis, in accordance with the generally accepted
accounting principles in India, the accounting standards and relevant
guidance notes issued by the Institute of Chartered Accountants of
India (ICAI) and the relevant provisions of the Companies Act, 1956.
2. Use of estimates
a. a. The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent assets and liabilities
on the date of the financial statements and the results of operations
during the reporting periods. Although these estimates are based upon
management's knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
3. Fixed assets and depreciation
a. Fixed assets (gross block) are stated at historical cost.
b. Depreciation on assets is provided on written down value method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c. In line with Accounting Standard 19 on ÃLeases', fxed assets
acquired through Ãfinance lease' transactions entered into on or after
1st April 2001, have been capitalised.
4. Inventories
Inventories are valued as under
a. Land and Plots which are registered in the name of the company are
valued at cost.
b. Constructed properties includes the cost of land, internal
development costs, external development charges, construction costs,
development/ construction materials, and is valued at cost or net
realisable value, whichever is lower.
c. Work in progress includes internal development costs, external
development charges, construction costs, and development / construction
materials in respect to the unsold square footage.
5. Construction contracts
a. The company accounts for income on the percentage to completion
basis, which necessarily involve technical estimates of the percentage
of completion, and costs to completion of each contract/ activity, on
the basis of which profits/losses are accounted.
b. Such estimates, made by the company, have been relied upon, as
these are of a technical nature.
c. The company accounted for construction receipts at the end of the
financial year based on "Percentage of Completion MethodÃ.
d. Expenditure incurred during the progress of contracts relating to
unsold square footage up to the stage of completion are carried forward
as work- in- progress.
e. Advances and progress payments, received and receivable from
customers in respect of such construction contracts in progress are
disclosed under Current Liabilities/Current Assets respectively.
6. Revenue recognition
a. Sale of Land & Undivided Share of Land(UDS)
i. Sale of land and UDS (excluding land under agreement to sell) is
recognised in the financial year in which the sale deed is executed.
b. Revenue from constructed properties:
i. Revenue from constructed properties is recognised on the
"percentage of completion methodà as suggested under Accounting
Standard 7 on Construction Contracts(revised 2002)
issued by the Institute of Chartered Accountants of India. Total sale
consideration as per the agreements to sell constructed properties
entered into is recognised as revenue based on the percentage of actual
project costs incurred thereon to total estimated project cost. Project
cost includes estimated construction and development cost of such
properties. The estimates of the saleable area and costs are reviewed
periodically and effect of any changes in such estimates is recognised
in the period such changes are determined. However, when the total
project cost is estimated to exceed total revenues from the project,
the loss is recognised immediately.
c. Interest Income
i. Interest from various Short Term/ Long Term investments is
recognised on time proportion basis, taking into account the amount
outstanding and the rate applicable.
7. Interest from customers under agreements to sell
a. Interest from customers under agreements to sell/construction is
accounted for on actual receipt. (Cash basis.)
8. Cost of revenue
a. a. Land and plots development costs include land acquisition cost,
internal development costs and external development charges, which are
not charged to the profit and loss account. They are carried forward as
work in progress.
b. Cost of constructed properties and properties under construction
includes cost of land (excluding land under agreements to purchase),
internal development costs, external development charges, construction
costs and development/ construction materials, which is charged to the
profit and loss account based on the percentage of revenue recognised
as per accounting policy (7) above, in consonance with the concept of
matching costs and revenue. Final adjustment is made on completion of
the applicable project.
9. Borrowing costs
a. Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the profit and loss account as incurred.
10. Segment Reporting
a. Accounting Standard 17 "Segment Reportingà as issued by ICAI
requires the Company to disclose certain information about operating
segments. The Company is managed as a single operating unit that
provides Property Development Services only and therefore, has only one
reportable business segment. Further, the operations of the Company are
limited within one geographical segment. Hence the disclosure required
by this standard is presently not applicable to the Company.
11. Deferred Taxation
a. a. Current income-tax is determined in respect of taxable income
with deferred tax being determined as the tax effect of timing
differences representing the difference between taxable income and
accounting income that originate in one period, and are capable of
reversal in one or more subsequent period(s). Such deferred tax is
quantified using rates and laws enacted or substantively enacted as at
the end of the financial year.
12. Retirement benefts
a. Expenses and liabilities in respect of employee benefits are
recorded in accordance with Revised Accounting Standard 15 - Employee
Benefits (Revised 2005) issued by the ICAI.
i. Provident fund
1. The Company is not liable for provident fund.
ii. Gratuity
1. Gratuity is a post employment benefit and is in the nature of a
defined benefit plan. The liability is not recognised in the balance
sheet in respect of gratuity.
13. Contingent liabilities
a. Depending upon the facts of each case and after due evaluation of
legal aspects, claims against the Company not acknowledged as debts are
treated as contingent liabilities. In respect of statutory dues
disputed and contested by the Company, contingent liabilities are not
provided for.
14. Earnings per share
a. a. Basic earnings per share is calculated by dividing the net
profit or loss for the period attributable to equity shareholders
(after deducting preference dividends and attributable taxes) by the
weighted average number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the
period are adjusted for events including a bonus issue; bonus element
in a rights issue to existing shareholders; share split; and reverse
share split (consolidation of shares).
b. For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2010
1. Basis of Accounting
a. The fnancial statements are prepared under historical cost
convention, on accrual basis, in accordance with the generally accepted
accounting principles in India, the accounting standards and relevant
guidance notes issued by the Institute of Chartered Accountants of
India (ICAI) and the relevant provisions of the Companies Act, 1956.
2. Use of estimates
a. The preparation of fnancial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on
the date of the fnancial statements and the results of operations
during the reporting periods. Although these estimates are based upon
managements knowledge of current events and actions, actual results
could differ from those estimates and revisions, if any, are recognised
in the current and future periods.
3. Fixed assets and depreciation
a. Fixed assets (gross block) are stated at historical cost.
b. Depreciation on assets is provided on written down value method at
the rates and in the manner prescribed in schedule XIV to the Companies
Act, 1956.
c. In line with Accounting Standard 19 on ÃLeases, fxed assets
acquired through Ãfnance lease transactions entered into on or after
1st April 2001, have been capitalised.
4. Inventories
Inventories are valued as under
a. Land and Plots which are registered in the name of the company are
valued at cost.
b. Constructed properties includes the cost of land, internal
development costs, external development charges, construction costs,
development/ construction materials, and is valued at cost or net
realisable value, whichever is lower.
c. Work in progress includes internal development costs, external
development charges, construction costs, and development / construction
materials in respect to the unsold square footage.
5. Construction contracts
a. The company accounts for income on the percentage to completion
basis, which necessarily involve technical estimates of the percentage
of completion, and costs to completion of each contract/ activity, on
the basis of which profts/losses are accounted.
b. Such estimates, made by the company, have been relied upon, as
these are of a technical nature.
c. The company accounted for construction receipts at the end of the
fnancial year based on ÃPercentage of Completion MethodÃ.
d. Expenditure incurred during the progress of contracts relating to
unsold square footage up to the stage of completion are carried forward
as work- in- progress.
e. Advances and progress payments, received and receivable from
customers in respect of such construction contracts in progress are
disclosed under Current Liabilities/Current Assets respectively.
6. Revenue recognition
a. Sale of Land & Undivided Share of Land(UDS)
i. Sale of land and UDS (excluding land under agreement to sell) is
recognised in the fnancial year in which the sale deed is executed.
b. Revenue from constructed properties:
i. Revenue from constructed properties is recognised on the Ãpercentage
of completion methodà as suggested under Accounting Standard 7 on
Construction Contracts(revised 2002) issued by the Institute of
Chartered Accountants of India. Total sale consideration as per the
agreements to sell constructed properties entered into is recognised as
revenue based on the percentage of actual project costs incurred
thereon to total estimated project cost. Project cost includes
estimated construction and development cost of such properties. The
estimates of the saleable area and costs are reviewed periodically and
effect of any changes in such estimates is recognised in the period
such changes are determined. However, when the total project cost is
estimated to exceed total revenues from the project, the loss is
recognised immediately.
c. Interest Income
i. Interest from various Short Term/ Long Term investments is
recognised on time proportion basis, taking into account the amount
outstanding and the rate applicable
7. Interest from customers under agreements to sell
a. Interest from customers under agreements to sell is accounted for on
actual receipt. (Cash basis.)
8. Cost of revenue
a. Land and plots development costs include land acquisition cost,
internal development costs and external development charges, which are
not charged to the proft and loss account. They are carried forward as
work in progress.
b. Cost of constructed properties and properties under construction
includes cost of land (excluding land under agreements to purchase),
internal development costs, external development charges, construction
costs and development/ construction materials, which is charged to the
proft and loss account based on the percentage of revenue recognised as
per accounting policy (7) above, in consonance with the concept of
matching costs and revenue. Final adjustment is made on completion of
the applicable project.
9. Borrowing costs
a. Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to the proft and loss account as incurred.
10. Segment Reporting
a. Accounting Standard 17 ÃSegment Reportingà as issued by ICAI
requires the Company to disclose certain information about operating
segments. The Company is managed as a single operating unit that
provides Property Development Services only and therefore, has only one
reportable business segment. Further, the operations of the Company are
limited within one geographical segment. Hence the disclosure required
by this standard is presently not applicable to the Company.
11. Deferred Taxation
a. Current income-tax is determined in respect of taxable income with
deferred tax being determined as the tax effect of timing differences
representing the difference between taxable income and accounting
income that originate in one period, and are capable of reversal in one
or more subsequent period(s). Such deferred tax is quantifed using
rates and laws enacted or substantively enacted as at the end of the
fnancial year.
12. Retirement benefts
a. Expenses and liabilities in respect of employee benefts are
recorded in accordance with Revised
Accounting Standard 15 - Employee Benefts (Revised 2005) issued by the
ICAI. i. Provident fund
1. The Company is not liable for provident fund. ii. Gratuity
1. Gratuity is a post employment beneft and is in the nature of a
defned beneft plan. The liability is not recognised in the balance
sheet in respect of gratuity.
13. Contingent liabilities
a. Depending upon the facts of each case and after due evaluation of
legal aspects, claims against the Company not acknowledged as debts are
treated as contingent liabilities. In respect of statutory dues
disputed and contested by the Company, contingent liabilities are not
provided for.
14. Earnings per share
a. Basic earnings per share is calculated by dividing the net proft or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period
are adjusted for events including a bonus issue; bonus element in a
rights issue to existing shareholders; share split; and reverse share
split (consolidation of shares).
b. For the purpose of calculating diluted earnings per share, the net
proft or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.