Mar 31, 2015
Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts)
Rules, 2014, the provisions of the Act ( to the extent notified) and
guidelines issued by the Securities and Exchange Board of India (SEBI).
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a evision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported balances of assets and
liabilities as on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. All assets
and liabilities have been classified as current or non-current as per
the Company's normal operating cycle and other criteria set out in
Schedule III to the Companies Act, 2013. Accounting estimates could
change from period to period. Actual results could differ from these
estimates.
The following significant accounting policies are adopted in the
preparation and presentation of these financial statements:
1 Revenue recognition
Revenue from real estate projects is recognised when it is reasonably
certain that the ultimate collection will be made and that there is a
buyer's commitment to make the complete payment. 'Percentage of
Completion Method' is used to recognise the revenues.
2 Fixed assets
(i) Fixed assets shown under gross block are valued at cost of
acquisition inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition and also include cost of
installation wherever incurred.
(ii) Depreciation on fixed assets has been charged on written down
value basis, as per the useful life of assets notified in Schedule II
of the Companies Act, 2013. Leasehold land has been amortised over the
period of the lease. Assets with individual value of less than Rs.5,000
are depreciated fully in the year of addition.
3 Inventories
The properties under development on the reporting date represents cost
incurred in respect of the unsold area of the projects under
development and cost incurred on the projects where revenue is yet to
be recognised.
4 Investments
Long term Investments are valued at cost. Provision for diminution is
made to recognise a decline, other than temporary, in the value of
investments. Current investments are stated at lower of cost or market
value.
5 Employee benefits
(a) Defined-contribution plans:
The Company has defined contribution plans (where Company pays
pre-defined amounts and does not have any legal or informal obligation
to pay additional sums) for post employment benefits (viz., Provident
Fund), and the Company's contributions thereto are charged to Statement
of profit and loss every year. The Company's contributions to State
plan, namely, Employee Pension Scheme, 1995, are charged to Statement
of profit and loss every year.
(b) Defined-benefit plan:
The Company has a defined benefit plan (viz., Gratuity) for employees,
the liability for which is determined on the basis of valuation carried
out by independent actuaries (under projected unit credit method) at
the balance sheet date.
6 Foreign exchange transactions
(i) All receipts and expenditure in foreign currencies are recorded at
rates prevailing on the date when the relevant transaction took place.
(ii) All monetary assets and liabilities denominated in foreign
currency are restated at the rates ruling at the year end and all
exchange gains/ losses arising thereon are adjusted to the statement of
profit and loss account.
7 Lease accounting
(i) Assets acquired under lease where the Company has substantially all
the risks and rewards of ownership are classified as finance lease.
Such lease is capitalised at the inception of the lease at the minimum
lease payments and a liability is created for an equivalent amount.
Each lease rental paid is allocated between the liability and the
interest cost and the interest cost is charged off to the Statment of
profit and loss.
(ii) Assets acquired on lease where a significant portion of the risks
and rewards of ownership are retained by the lessor are classified as
operating lease. Lease rentals on assets taken on operating lease are
recognized as an expense in the Statement of profit and loss.
8 Borrowing costs
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are capitalised as part of the cost
of that asset till such time the asset is ready for its intended use.
Other Borrowing Costs are recognised as an expense in the period in
which they are
9 Taxes on income
Current tax -Provision for current tax is made based on tax liability
computed after considering tax allowances and exemptions as per the
Income Tax Act, 1961, applicable rules and amendments thereof.
Deferred tax -Deferred tax is recognised on timing differences between
the accounting income and the taxable income for the year and
quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet date. Deferred tax assets are
recognised and carried forward to the extent that there is a reasonable
or virtual certainty, as may be applicable, that sufficient future
taxable income will be available against which such deferred tax asset
can be realised.
10 Earnings per share:
Annualized earnings/ (loss) per equity share (basic and diluted) is
arrived at based on Net Profit/ (Loss) after Taxation to the weighted
average number of equity shares.
11 Impairment of assets
An impairment loss is charged to the Statement of profit and loss in
the year in which an asset is identified as impaired. The impairment
loss recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount.
12 Provisions and contingent liabilities
Based on the best estimate of the management, provisions are determined
of the outflow of economic benefits which are required to settle the
obligation as at the reporting date. Where no reliable estimate can be
made, disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possbile obligation
that may, but probably will not, require an outflow of the Company's
resources.
13 Cashflow
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. Cash flows from operating, investing
and financing activities of the Company are segregated, accordingly.
Mar 31, 2014
Basis of preparation of financial statements
These financial statements are prepared under the historical cost basis
of accounting and evaluated on a going concern basis, with revenues and
expenses accounted for on their accrual to comply in all material
aspects with the applicable accounting principles and applicable
Accounting Standards notified U/s. 211(3C) of the Companies Act, 1956
and other relevant provisions of the Companies Act, 1956.
Use of estimates
The preparation of financial statements require estimates and
assumptions to be made that affect the reported balances of assets as
on the date of the financial statements and the reported amount of
revenues and expenses during the reporting period. Accounting estimates
could change from period to period. Actual results could differ from
these estimates. Appropriate changes in estimates are made as and when
the Managament becomes aware of the changes in the cirumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which the changes are made and if
material, their effects are discolsed in the notes to the financial
statements.
The following significant accounting policies are adopted in the
preparation and presentation of these financial statements :
1 Revenue recognition
Revenue from real estate projects is recognised when it is reasonably
certain that the ultimate collection will be made and that there is a
buyer''s commitment to make the complete payment. ÂPercentage of
Completion Method'' is used to recognise the revenues.
2 Fixed assets
(i) Fixed assets shown under gross block are valued at cost of
acquisition inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition and also include cost of
installation wherever incurred.
(ii) Depreciation on fixed assets has been charged on written down
value basis, pro-rata for the period of use, by adopting the revised
rates of depreciation specified in Schedule XIV of the Companies
Act,1956. Leasehold land has been amortised over the period of the
lease. Assets with individual value of less than Rs.5,000 are
depreciated fully in the year of addition.
3 Inventories
The properties under development on the reporting date represents cost
incurred in respect of the unsold area of the projects under
development and cost incurred on the projects where revenue is yet to
be recognised.
4 Investments
Long term Investments are valued at cost. Provision for diminution is
made to recognise a decline, other than temporary, in the value of
investments. Current investments are stated at lower of cost or market
value.
5 Employee benefits
(a) Defined-contribution plans:
The Company has defined contribution plans (where Company pays
pre-defined amounts and does not have any legal or informal obligation
to pay additional sums) for post employment benefits (viz., Provident
Fund), and the Company''s contributions thereto are charged to
Statement of profit and loss every year. The Company''s contributions
to State plan, namely, Employee Pension Scheme, 1995, are charged to
Statement of profit and loss every year.
(b) Defined-benefit plan:
The Company has a defined benefit plan (viz., Gratuity) for employees,
the liability for which is determined on the basis of valuation carried
out by independent actuaries (under projected unit credit method) at
the balance sheet date.
6 Foreign exchange transactions
(i) All receipts and expenditure in foreign currencies are recorded at
rates prevailing on the date when the relevant transaction took place.
(ii) All monetary assets and liabilities denominated in foreign
currency are restated at the rates ruling at the year end and all
exchange gains/ losses arising thereon are adjusted to the statement of
profit and loss account.
7 Lease accounting
(i) Assets acquired under lease where the Company has substantially all
the risks and rewards of ownership are classified as finance lease.
Such lease is capitalised at the inception of the lease at the minimum
lease payments and a liability is created for an equivalent amount.
Each lease rental paid is allocated between the liability and the
interest cost and the interest cost is charged off to the Statment of
profit and loss.
(ii) Assets acquired on lease where a significant portion of the risks
and rewards of ownership are retained by the lessor are classified as
operating lease. Lease rentals on assets taken on operating lease are
recognized as an expense in the Statement of profit and loss.
8 Borrowing costs
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are capitalised as part of the cost
of that asset till such time the asset is ready for its intended use.
Other Borrowing Costs are recognised as an expense in the period in
which they are incurred.
9 Taxes on income
Current tax -Provision for current tax is made based on tax liability
computed after considering tax allowances and exemptions as per the
Income Tax Act, 1961, applicable rules and amendments thereof.
Deferred tax -Deferred tax is recognised on timing differences between
the accounting income and the taxable income for the year and
quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet date. Deferred tax assets are
recognised and carried forward to the extent that there is a reasonable
or virtual certainty, as may be applicable, that sufficient future
taxable income will be available against which such deferred tax asset
can be realised.
10 Earnings per share:
Annualized earnings/ (loss) per equity share (basic and diluted) is
arrived at based on Net Profit/ (Loss) after Taxation to the weighted
average number of equity shares.
11 Impairment of assets
An impairment loss is charged to the Statement of profit and loss in
the year in which an asset is identified as impaired. The impairment
loss recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount
12 Provisions and contingent liabilities
Based on the best estimate of the management, provisions are determined
of the outflow of economic benefits which are required to settle the
obligation as at the reporting date. Where no reliable estimate can be
made, disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possbile obligation
that may, but probably will not, require an outflow of the Company''s
resources.
13 Cashflow
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. Cash flows from operating, investing
and financing activities of the Company are segregated, accordingly.
(c) As on the date of the Balance Sheet,
(i) The Company did not issue any equity shares as fully paid equity
shares pursuant to contract(s) without payment being received in cash
(ii) Initial Public Offer (IPO)
During the year the company completed a public issue of 21,80,000
equity shares of Rs.10/- each for cash at a price of Rs.12/- each
aggrerating to Rs.2,61,60,000/-. The premium of Rs.2/- per equity share
amounting to Rs.43,60,000 has been credited to securities premium
account. The share issue expenses have been set off against the
securities premium account and the unabsorbed portion to the tune of
Rs. 18,61,308 is debited to the statement of profit and loss for the
year. Pursuant to the Public Issue, equity shares of the company have
been listed on the Bombay Stock Exchange (SME) effective 12th April
2013.
(iii) The Company has issued 14,02,000 equity shares of Rs.10 each as
fully paid-up bonus shares during the year. However, no buy back of any
equity shares has been made as on the balance sheet date.
(iv) The Company has not issued any securities like Convertible
Preference Shares, Convertible Debentures etc which are Convertible
into equity / Preference Shares
2.11 Deferred taxes
Deferred tax is recognised subject to consideration of prudence on
timing difference, being the difference between taxable income Deferred
tax assets and deferred tax liabilities are offset when there is a
legal enforceable right to set off assets against liabilities
Mar 31, 2013
Basis of preparation of financial statements
These financial statements are prepared under the historical cost basis
of accounting and evaluated on a going concern basis, with revenues and
expenses accounted for on their accrual to comply in all material
aspects with the applicable accounting principles and applicable
Accounting Standards notified U/s. 211 (3C) of the Companies Act, 1956
and other relevant provisions of the Companies Act, 1956.
Use of estimates
The preparation of financial statements require estimates and
assumptions to be made that affect the reported balances of assets as
on the date of the financial statements and the reported amount of
revenues and expenses during the reporting period. Accounting estimates
could change from period to period. Actual results could differ from
these estimates. Appropriate changes in estimates are made as and when
the Managament becomes aware of the changes in the cirumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which the changes are made and if
material, their effects are discolsed in the notes to the financial
statements.
The following significant accounting policies are adopted in the
preparation and presentation of these financial statements:
1 Revenue recognition
Revenue from real estate projects is recognised when it is reasonably
certain that the ultimate collection will be made and that there is a
buyer''s commitment to make the complete payment. ''Percentage of
Completion Method'' is used to recognise the revenues.
2 Fixed assets
(i) Fixed assets shown under gross block are valued at cost of
acquisition inclusive of inward freight, duties and taxes and
incidental expenses related to acquisition and also include cost of
installation wherever incurred.
(ii) Depreciation on fixed assets has been charged on written down
value basis, pro-rata for the period of use, by adopting the revised
rates of depreciation specified in Schedule XIV of the Companies Act,
1956. Leasehold land has been amortised over the period of the lease.
3 Inventories
The properties under development on the reporting date represents cost
incurred in respect of the unsold area of the projects under
development and cost incurred on the projects where revenue is yet to
be recognised.
4 Investments
Long term Investments are valued at cost. Provision for diminution is
made to recognise a decline, other than temporary, in the value of
investments. Current investments are stated at lower of cost or market
value.
5 Employee benefits
(a) Defined-contribution plans:
The Company has defined contribution plans (where Company pays
pre-defined amounts and does not have any legal or informal obligation
to pay additional sums) for post employment benefits (viz., Provident
Fund), and the Company''s contributions thereto are charged to Statement
of profit and loss every year. The Company''s contributions to State
plan, namely, Employee Pension Scheme, 1995, are charged to Statement
of profit and loss every year.
(b) Defined-benefit plan:
The Company has a defined benefit plan (viz., Gratuity) for employees,
the liability for which is determined on the basis of valuation carried
out by independent actuaries (under projected unit credit method) at
the balance sheet date.
6 Foreign exchange transactions
(i) All receipts and expenditure in foreign currencies are recorded at
rates prevailing on the date when the relevant transaction took place.
(ii) All monetary assets and liabilities denominated in foreign
currency are restated at the rates ruling at the year end and all
exchange gains/ losses arising thereon are adjusted to the statement of
profit and loss account.
7 Lease accounting
(i) Assets acquired under lease where the Company has substantially all
the risks and rewards of ownership are classified as finance lease.
Such lease is capitalised at the inception of the lease at the minimum
lease payments and a liability is created for an equivalent amount.
Each lease rental paid is allocated between the liability and the
interest cost and the interest cost is charged off to the Statment of
profit and loss.
(ii) Assets acquired on lease where a significant portion of the risks
and rewards of ownership are retained by the lessor are classified as
operating lease. Lease rentals on assets taken on operating lease are
recognized as an expense in the Statement of profit and loss.
8 Borrowing costs
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are capitalised as part of the cost
of that asset till such time the asset is ready for its intended use.
Other Borrowing Costs are recognised as an expense in the period in
which they are incurred.
9 Taxes on income
Current tax -Provision for current tax is made based on tax liability
computed after considering tax allowances and exemptions as per the
Income Tax Act, 1961, applicable rules and amendments thereof.
Deferred tax -Deferred tax is recognised on timing differences between
the accounting income and the taxable income for the year and
quantified using the tax rates and laws enacted or substantively
enacted as on the Balance Sheet date. Deferred tax assets are
recognised and carried forward to the extent that there is a reasonable
or virtual certainty, as may be applicable, that sufficient future
taxable income will be available against which such deferred tax asset
can be realised.
10 Earnings per share:
Annualized earnings/ (loss) per equity share (basic and diluted) is
arrived at based on Net Profit/ (Loss) after Taxation to the weighted
average number of equity shares.
11 Impairment of assets
An impairment loss is charged to the Statement of profit and loss in
the year in which an asset is identified as impaired. The impairment
loss recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount
12 Provisions and contingent liabilities
Based on the best estimate of the management, provisions are determined
of the outflow of economic benefits which are required to settle the
obligation as at the reporting date. Where no reliable estimate can be
made, disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possbile obligation
that may, but probably will not, require an outflow of the Company''s
resources.
13 Cashflow
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. Cash flows from operating, investing
and financing activities of the Company are segregated, accordingly.
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