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Accounting Policies of TCI Developers Ltd. Company

Mar 31, 2017

1. Background

TCI Developers Limited (“the Company”) is a Company registered under the companies act, 1956. It was incorporated on 14th May, 2008 as a real estate arm of TCI Group. The company is engaged in the business of Real estate and Warehousing development activities.

The Real Estate and Warehousing division of Transport Corporation of India Ltd. stood transferred to the Company effective from 1st April, 2010 in terms of the Scheme of Arrangement between the Company and Transport Corporation of India Ltd. as approved vide order dated 15th September, 2010 of The Hon''ble Andhra Pradesh High Court.

2. Significant Accounting Policies:

(a) All revenues and expenditures are generally accounted on accrual basis as they are earned or incurred. The accounts are prepared on historical cost basis, as a going concern and are consistent with generally accepted accounting principles.

(b) Fixed assets are stated at cost, less accumulated depreciation and impairment, if any. Capital work-in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

(c) Depreciation and amortization:

Tangible Assets: Depreciation on tangible assets is provided on the straight-line method over the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013. Depreciation for assets purchased/sold during a period is proportionately charged.

Intangible assets: These are amortized as under:

Particular Amortization

Computer Software Over a period of 6 years

(d) Investments are stated at cost. Investments intended to be held for more than a year are classified as long term investments. Long term investments are stated individually at cost less provision for diminution in value, if such diminution is other than temporary.

(e) Inventory comprises Buildings under work in progress

i. Work-in-progress - Buildings under work in progress represents cost incurred in respect of unsold area of the real estate development projects or cost incurred on projects where the revenue is yet to be recognized. Buildings shown as work-in-progress are valued at lower of cost and net realizable value on FIFO Basis.

(f) The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the Statement of Profit and Loss.

(g) Employees Benefits: The Company has not created any gratuity fund or any other funds. However adequate provisions have been made in the accounts for gratuity liability.

(h) Provision for tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the accounts and in estimating its current tax provision. The effect on deferred taxes of a change in tax rate is recognized in the year in which the change is effected. MAT credit is recognized as an asset only if there is convincing evidence that the Company will pay normal income tax during the specified period

(i) Lease: Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight line basis in the statement of profit and loss over the lease term.


Mar 31, 2016

1. Background

TCI Developers Limited ("the Company") is a Company registered under the companies act, 1956. It was incorporated on 14th May, 2008 as a real estate arm of TCI Group. The company is engaged in the business of Real estate and Warehousing development activities.

The Real Estate and Warehousing division of Transport Corporation of India Ltd, stood transferred to the Company effective from 1st April 2010 in terms of the Scheme of Arrangement between the Company and Transport Corporation of India Ltd. as approved vide order dated 15th September 2010 of The Hon''ble Andhra Pradesh High Court.

2. Significant Accounting Policies:

(a) All revenues and expenditures are generally accounted on accrual basis as they are earned or incurred. The accounts are prepared on historical cost basis, as a going concern and are consistent with generally accepted accounting principles.

(b) Fixed assets are stated at cost, less accumulated depreciation and impairment, if any. Capital work-in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

(c) Depreciation and amortization:

Tangible Assets:

Depreciation on tangible assets is provided on the straight-line method over the useful lives as prescribed under Part C of Schedule II of the Companies Act 2013. Depreciation for assets purchased/sold during a period is proportionately charged.

Intangible assets:

These are amortized as under:

Particular Amortization

Computer Software Over a period of 6 years

(d) Investments are stated at cost. Investments intended to be held for more than a year are classified as long term investments. Long term investments are stated individually at cost less provision for diminution in value, if such diminution is other than temporary.

(e) Inventory comprises Buildings under work in progress

i. Work-in-progress - Buildings under work in progress represents cost incurred in respect of unsold area of the real estate development projects or cost incurred on projects where the revenue is yet to be recognized. Buildings shown as work-in-progress are valued at lower of cost and net realizable value on FIFO Basis.

(f) The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the Statement of Profit and Loss.

(g) Employees Benefits: The Company has not created any gratuity fund or any other funds. However adequate provisions have been made in the accounts for gratuity liability.

(h) Provision for tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the accounts and in estimating its current tax provision. The effect on deferred taxes of a change in tax rate is recognized in the year in which the change is affected.

(i) Lease: Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight line basis in the statement of profit and loss over the lease term.


Mar 31, 2013

(a) All revenues and expenditures are generally accounted on accrual basis as they are earned or incurred. The accounts are prepared on historical cost basis, as a going concern and are consistent with generally accepted accounting principles.

(b) Fixed assets are stated at cost, less accumulated depreciation and impairment, if any. Capital work-in progress comprises of the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

(c) Depreciation is provided on straight-line method at rates specified in schedule XIV to the Companies Act. Depreciation on additions/ deductions is calculated pro-rata from / to the month of addition / deduction. Individual assets whose actual cost does not exceed Rs. 5,000 are fully depreciated in the year of purchase.

(d) Investments are stated at cost. Investments intended to be held for more than a year are classified as long term investments. Long term investments are stated individually at cost less provision for diminution in value, if such diminution is other than temporary.

(e) Inventory comprises Real Estate Project under construction

i. Work-in-progress - Real estate projects represents cost incurred in respect of unsold area of the real estate development projects or cost incurred on projects where the revenue is yet to be recognised. Real estate work-in-progress is valued at lower of cost and net realisable value.

(f) The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the Statement of Profit and Loss.

(g) Retirement Benefits: The Company has not created any gratuity fund. However adequate provisions have been made in the accounts for gratuity liability.

(h) Provision for tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the accounts and in estimating its current tax provision. The effect on deferred taxes of a change in tax rate is recognized in the year in which the change is effected.


Mar 31, 2012

(a) All revenues and expenditures are generally accounted on accrual basis as they are earned or incurred. The accounts are prepared on historical cost basis, as a going concern and are consistent with generally accepted accounting principles.

(b) Depreciation is provided on straight-line method at rates specified in schedule XIV to the Companies Act. Depreciation on additions/ deductions is calculated pro-rata from / to the month of addition / deduction. Individual assets whose actual cost does not exceed Rs 5,000 are fully depreciated in the year of purchase.

(c) Fixed Assets are stated at cost.

(d) Investments are stated at cost.

(e) Inventories are stated at lower of cost and net realizable value.

(f) The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the Statement of Profit and Loss.

(g) Provision for tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the accounts and in estimating its current tax provision. The effect on deferred taxes of a change in tax rate is recognized in the year in which the change is effected.


Mar 31, 2011

I. All revenues and expenditures are generally accounted on accrual basis as they are earned or incurred. The accounts are prepared on historical cost basis, as a going concern and are consistent with generally accepted accounting principles.

ii. Depreciation is provided on straight-line method at rates specified in schedule XIV to the Companies Act. Depreciation on additions/ deductions is calculated pro-rata from / to the month of addition / deduction. Individual assets whose actual cost does not exceed Rs. 5,000 are fully depreciated in the year of purchase.

iii. Fixed Assets are stated at cost

iv. Investments are stated at cost.

v. The Company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the profit and loss account.

vi. Provision for tax is made for both current and deferred taxes. Provision for current income tax is made on the current tax rates based on assessable income. The company provides for deferred tax based on the tax effect of timing differences resulting from the recognition of items in the accounts and in estimating its current tax provision. The effect on deferred taxes of a change in tax rate is recognized in the year in which the change is effected.

4. Pursuant to the Scheme as referred in para 1 above, shareholding of and balances of Transport Corporation of India Ltd in these partnership firms have been transferred to TCI Developers Ltd. w.e.f. the appointed date i.e. April 1, 2010.

5. Related party transactions a.

i. Associates:

- Transport Corporation of India Ltd. (till March 31, 2010, Holding Company)

- TCI Properties - (GUJ) - Partnership Firm

- TCI Properties - (Delhi) - Partnership Firm

- TCI Warehousing - (MH) - Partnership Firm

- TCI Properties - (South)- Partnership Firm

- TCI Properties - (NCR) - Partnership Firm

ii. Subsidiaries:

- TCI Infrastructure Ltd.

- TCI Properties (West) Ltd.

6. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business, would not be less than the amount at which the same are stated in the Balance Sheet.

7. Preliminary expenses being intangible asset, written off fully as per Accounting Standard.

8. The Company was a fully owned subsidiary company of Transport Corporation of India Ltd. till March 31, 2010.

9. The equity shares of the Company have got listed in National Stock Exchange of India Ltd. and Bombay Stock Exchange Ltd. w.e.f. April 19, 2011.

10. Contingent Liabilities - Nil.

11. Estimated amount of Capital Commitments (Net of advances) - Rs.6.54 lacs

12. Previous years figures have been regrouped and rearranged, wherever found necessary.

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