Accounting Policies of Vijay Shanthi Builders Ltd. Company

Mar 31, 2016

1. CORPORATE INFORMATION

The Company was incorporated on 06^th January 1992 and having its registered office at No.20/43, Kasturi Rangan Road, Alwarpet, Chennai - 600 018. The company is into the business of construction industry and involves itself in the construction of residential apartments and individual villas.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed under Section 133 of Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis under the historical cost convention. All assets and liabilites have been classified as Current and Non-Current as per operating cycle set out in the Schedule III of the Companies Act, 2013. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

2.3 Inventories

Inventories are valued as under:

a. Building, Material, Stores, Spare Parts, etc - At Cost using FIFO Method

b. Completed Units (Unsold) - At lower of cost or net realizable value

c. Land - At lower of cost or net realizable value

d. Project / Contracts work in progress - At cost

Cost of Completed Units and Project / Work in Progress includes cost of land, construction / development cost and other related costs incurred.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.6 Depreciation and amortization

Depreciation has been provided on the straight-line method (SLM) over the period of effective useful life prescribed in Schedule II to the Companies Act, 2013 except assets costing less than Rs.5,000/- each which are fully depreciated in the year of capitalisation.

2.7 Revenue recognition

Revenue from Under Construction Properties for all projects commenced on or before 31^st March 2012

The Company follows the percentage of completion method of accounting for the Real Estate division. As per this method, the revenue is recognized in proportion to the actual cost incurred as against the total estimated cost of the project under execution with the Company subject to actual cost being 30% or more of the estimated cost. As the project progresses, estimated costs, saleable area etc. are revised based on current cost indices and other information available to the Company. Expenses incurred on repairs and maintenance on completed projects are charged to the Statement of Profit & Loss.

Revenue from Under-Construction Properties for all projects commenced on or after 01^st April 2012

“In respect of projects commenced on or after 1^st April, 2012 and the projects commenced before that date but where revenue was not recognized in earlier years, the Company has followed revenue recognition policy in accordance with the Guidance Note on Accounting for Real Estate transactions (Revised 2012) issued by the Institute of Chartered Accountants of India. As per this method, the revenue from real estate projects is recognized when the following conditions are satisfied:

i) All critical approvals necessary for commencement of the project have been obtained.

ii) Expenditure incurred on construction and development costs is more than 25% of the total estimated expenditure on construction and development costs. The construction and development costs do not include cost of land and development rights.

iii) At least 25% of the saleable project areas is secured by agreement with buyers.

iv) At least 10% of the total revenue as per agreements with buyers/application form (containing salient features of agreement to sell) has been realized at the balance sheet date.”

Revenue from Fully Constructed Properties

Income from real estate sales is recognized on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Recognizing Income from Maintenance Activity

The Company follows a policy of recognizing the Maintenance Income (as Net-off) for the handed over flats on which Maintenance Charges were collected. The Maintenance Charges so collected on the completed projects will be recognized as income over the agreed period of maintenance of Flats.

The Income so recognized are shown as net-off of Maintenance Expenses incurred during the year under “Other Non - Operating Income”.

2.8 Other income

“Interest income is accounted on accrual basis. Dividend income and Other Income including Scrap Sale, Rental Income are accounted for when it is received.”

2.9 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intend/for its use. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalized and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalized only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

2.10 Foreign currency transactions and translations

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising on settlement of foreign exchange transactions and translation of monetary items is recognized as income or expense in the year in which they arise.

2.11 Investments

Long term investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment. Current Investments are stated at lower of cost and quoted/fair value

2.12 Employee benefits Short Term Benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at pre-determined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Statement.

Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees; measured upon its own estimate and charged off to Statement of Profit & Loss. There is no specific investment plan or asset to meet its gratuity liability. There is no provision made for Gratuity during the year.

2.13 Borrowing costs

Borrowing cost relating to acquisition/construction/ development of qualifying assets of the company are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. Borrowing cost that are attributable to the project in progress and qualifying land advances as well as any capital work in progress are charged to respective qualifying asset . All other borrowing costs, not eligible for inventorisation /capitalization, are charged to revenue.

2.14 Segment reporting

The Company’s business activity primarily falls within a single business segment which constitutes real estate development, there are no additional disclosures to be provided under Accounting Standard 17 ‘Segment Reporting’. The Company operates primarily in India and there are no other significant geographical segment.

2.15 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events of bonus issue, a share split and share warrants conversion. Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

Further where the statement of profit and loss includes extraordinary items (within the meaning of AS 5, net profit and loss for the period, prior period items and changes in accounting policies), the company discloses basic and diluted earnings per share computed on the basis of earnings excluding extraordinary items (net of tax expenses).

2.16 Impairment of assets

Management at each balance sheet date assesses using external and internal sources whether there is an indication that an asset or group of assets or a cash generating unit as the case may be impaired. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired, unless the asset is carried at revalued amount, in which case any impairment loss of a revalued asset is treated as a decrease in Revaluation Reserve. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

2.17 Taxes on income

“Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognized on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.“

2.18 Provisions and contingencies

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 the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

2.19 Provision for warranty

The Company has not formulated any policy for provision of warranty for the products and services provided by the Company. However the Company provides two years of free replacement of replaceable plumbing materials and other similar fittings. The actual expenditure incurred on these accounts is considered as expenditure during the year in which it was spent.

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Mar 31, 2015

1.1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards prescribed under Section 133 of Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis under the historical cost convention. All assets and liabilites have been classified as Current and Non-Current as per operating cycle set out in the Schedule III of the Companies Act, 2013. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

Inventories are valued as under:

a. Building, Material, Stores, Spare Parts, etc - At Cost using FIFO Method

b. Completed Units (Unsold) - At lower of cost or net realisable value

c. Land - At lower of cost or net realisable value

d. Project / Contracts work in progress - At cost

Cost of Completed Units and Project / Work in Progress includes cost of land, construction / development cost and other related costs incurred.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the straight-line method (SLM) over the period of effective useful life prescribed in Schedule II to the Companies Act, 2013 except assets costing less than Rs.5,000/- each which are fully depreciated in the year of capitalisation.

1.7 Revenue recognition

Revenue from Under Construction Properties for all projects commenced on or before 31st March 2012

The Company follows the percentage of completion method of accounting for the Real Estate division. As per this method,the revenue is recognised in proportion to the actual cost incurred as against the total estimated cost of the project under execution with the Company subject to actual cost being 30% or more of the estimated cost. As the project progresses, estimated costs, saleable area etc. are revised based on current cost indices and other information available to the Company. Expenses incurred on repairs and maintenance on completed projects are charged to the Statement of Profit & Loss.

Revenue from Under-Construction Properties for all projects commenced on or after 01st April 2012

"In respect of projects commenced on or after 1st April, 2012 and the projects commenced before that date but where revenue was not recognised in earlier years, the Company has followed revenue recognition policy in accordance with the Guidance Note on Accounting for Real Estate transactions (Revised 2012) issued by the Institute of Chartered Accountants of India. As per this method, the revenue from real estate projects is recognized when the following conditions are satisfied:

i) All critical approvals necessary for commencement of the project have been obtained.

ii) Expenditure incurred on construction and development costs is more than 25% of the total estimated expenditure on construction and development costs. The construction and development costs do not include cost of land and development rights.

iii) Atleast 25% of the saleable project areas is secured by agreement with buyers.

iv) Atleast 10% of the total revenue as per agreements with buyers/application form (containing salient features of agreement to sell) has been realized at the balance sheet date."

Revenue from Fully Constructed Properties

Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration.

Recognising Income from Maintenance Activity

The Company follows a policy of recognising the Maintenance Income (as Net-off) for the handed over flats on which Maintenance Charges were collected. The Maintenance Charges so collected on the completed projects will be recognised as income over the agreed period of maintenance of Flats.

The Income so recognised are shown as net-off of Maintenance Expenses incurred during the year under "Other Non - Operating Income".

1.8 Other income

"Interest income is accounted on accrual basis. Dividend income and Other Income including Scrap Sale, Rental Income are accounted for when it is received."

1.9 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intend/for its use. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

1.10 Foreign currency transactions and translations

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities on the balance sheet date are translated at year end exchange rates. Exchange difference arising on settlement of foreign exchange transactions and translation of monetary items is recognized as income or expense in the year in which they arise.

1.11 Investments

Long term investments are valued at cost. Provision is made to recognize a diminution other than temporary, in the value of each long-term investment. Current Investments are stated at lower of cost and quoted/fair value

1.12 Employee benefits Short Term Benefits

Short term employee benefits expected to be paid in exchange for the services rendered by the employees is recognized during the period when the employee renders the services.

Provident Fund

Provident fund is a defined contribution scheme as the Company pays fixed contribution at pre-determined rates. The obligation of the Company is limited to such fixed contribution. The contributions are charged to Profit & Loss Statement.

Gratuity

The company provides for gratuity, a defined benefit retirement plan covering eligible employees; measured upon its own estimate and charged off to Statement of Profit & Loss. There is no specific investment plan or asset to meet its gratuity liability.

1.13 Borrowing costs

Borrowing cost relating to acquisition/construction/ development of qualifying assets of the company are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. Borrowing cost that are attributable to the project in progress and qualifying land advances as well as any capital work in progress are charged to respective qualifying asset . All other borrowing costs, not eligible for inventorisation /capitalization, are charged to revenue.

1.14 Segment reporting

The Company's business activity primarily falls within a single business segment which constitutes real estate development, there are no additional disclosures to be provided under Accounting Standard 17 'Segment Reporting'. The Company operates primarily in India and there are no other significant geographical segment.

1.15 Earnings per share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average numbers of equity shares outstanding during the period are adjusted for events of bonus issue, a share split and share warrants conversion. Diluted earnings per share is calculated by adjusting net profit or loss for the period attributable to equity shareholders and the weighted number of shares outstanding during the period for the effect of all dilutive potential equity shares.

Further where the statement of profit and loss includes extraordinary items (within the meaning of AS 5, net profit and loss for the period, prior period items and changes in accounting policies), the company discloses basic and diluted earnings per share computed on the basis of earnings excluding extraordinary items (net of tax expenses).

1.16 Impairment of assets

Management at each balance sheet date assesses using external and internal sources whether there is an indication that an asset or group of assets or a cash generating unit as the case may be impaired. An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired, unless the asset is carried at revalued amount, in which case any impairment loss of a revalued asset is treated as a decrease in Revaluation Reserve. The impairment Loss recognized in prior accounting periods is reversed if there has been an increase in the estimate of recoverable value.

1.17 Taxes on income

"Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability."

1.18 Provisions and contingencies

A provision is recognised 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 the obligation in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.19 Provision for warranty

The Company has not formulated any policy for provision of warranty for the products and services provided by the Company. However the Company provides two years of free replacement of replaceable plumbing materials and other similar fittings. The actual expenditure incurred on these accounts is considered as expenditure during the year in which it was spent.

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Mar 31, 2014

Basis of accounting and preparation of financial statements

1.1 The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. All assets and liabilites have been classified as Current and Non- Current as per operating cycle set out in the Revised Schedul VI of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale.

Under Inventories, a portion of inventory that represent WIP is valued as per AS - 7 and others as per AS - 2. The details of such valuation are as follows:

(a) Stock of Land : Land purchased for the purpose of construction of flats are valued at cost.

(b) Stock of unsold flats : Buildings whose construction has been completed and remains unsold at the end of the year is treated a part of inventory and are valued at cost or net relisable value whichever is lower.

(c) Work - in - Progress : Buildings / flats under construction are considered as Work-in-Progress and are valued at cost with appropriate portion of profit as per AS -7 after deducting amount received from customer"

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible (except Fixed Deposit with Kotak Mahindra Bank where lien is marked against the Project Loan) into known amounts of cash and which are subject to insignificant risk of changes in value.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the straight-line method (SLM) as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except assets costing less than Rs.5,000 each are fully depreciated in the year of capitalisation.

1.7 Revenue recognition

i Sale of finished goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include portion of value added tax attributable to the completed flats.

ii Work in Progress

The Company recognises revenue as per AS-7, relating to construction contracts as per the "Percentage of completion method", i.e., profit is recognised to the extent of completed % on total contact value for which sales advance is received.

iii Income from services

"Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the project.

Income received from additional work done, if any has been accounted on the basis of receipt."

(iv) Recognising Income from Maintenance Activity

The Company has follows a policy of recognising the Maintenance Income (as Net-off) for the handed over flats on which Maintenance Charges were collected. The Maintenance Charges so collected on the completed projects will be recognised as income over the agreed period of maintenance of Flats.

The Income so recognised are shown as net-off of Maintenance Expenses incurred during the year under "Other Non - Operating Income"

1.8 Other income

"Interest income is accounted on accrual basis.

Dividend income and Other Income including Scrap Sale, Rental Income are accounted for when it is received."

1.9 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intend for its use. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

1.10 Foreign currency transactions and translations

Initial recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Measurement of foreign currency monetary items at the Balance Sheet date

"Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations outstanding at the Balance Sheet date are restated at the year-end rates."

Treatment of exchange differences

Exchange differences arising on settlement / restatement of short-term / long-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognised as income or expense in the Statement of Profit and Loss.

1.11 Investments

Long-term investments are carried individually at cost. Cost of investments include acquisition charges such as brokerage, fees and duties. No provision is recognised for the dimunition or appreciation in the value.

1.12 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund and accidental insurance.

Defined contribution plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made.

Defined Benefit Plan

The company is providing for the Gratuity Liability in the Books of Account based on its own estimate & it is charged to Profit & Loss Account. There is no specific investment plan or asset kept aside to meet the Gratuity Liability. The Company is of hope that, it can pay the gratuity as and when it falls due on termination / retirement of eligible employees.

1.13 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

1.14 Segment reporting

The Company is operating in only one segment, namely Construction Industry. Though it has started maintaining of flats constructed by the compnay, it is treated as part of main activity. Hence, AS - 17 Segment Reporting is not applicable to the company.

1.15 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

1.16 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Taxes on income

"Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the IncomeTax Act,1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability. "

1.18 Provisions and contingencies

A provision is recognised 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 the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.19 Provision for warranty

The Company has not formulated any policy for provision of warranty for the products and services provided by the Company. However the Company provides two years of free replacement of replaceable plumbing materials and other similar fittings. The actual expenditure incurred on these accounts is considered as expenditure during the year in which it was spent.

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Mar 31, 2013

1.1 Basis Of Accounting And Preparation Of Financial Statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. All assets and liabilites have been classified as Current and Non- Current as per operating cycle set out in the Revised Schedule VI of the Companies Act, 1956. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2 Use Of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

(i) Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale

(ii) Under Inventories, a portion of inventory that represent WIP is valued as per AS - 7 and others as per AS - 2. The details of such valuation are as follows:

(a)Stock of Land : Land purchased for the purpose of construction of flats are valued at cost

(b) Stock of unsold flats : Buildings whose construction has been completed and remains unsold at the end of the year is treated a part of nventory and are valued at cost or net relisable value whichever is lower.

(c) Work - in - Progress : Buildings / flats under construction are considered as Work-in-Progress and are valued at cost with appropriate portion of profit as per AS -7 after deducting amount received from customer."

1.4 Cash And Cash Equivalents (For Purposes Of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible (except Fixed Deposit with Kotak Mahindra Bank where lien is marked against the Project Loan) into known amounts of cash and which are subject to insignificant risk of changes in value

1.5 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information

1.6 Depreciation And Amortisation

Depreciation has been provided on the straight-line method (SLM) as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except assets costing less than Rs.5,000 each are fully depreciated in the year of capitalisation

1.7 Revenue Recognition

Sale Of Finished Goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include portion of value added tax attributable to the completed flats

Work In Progress

The Company recognises revenue as per AS-7, relating to construction contracts as per the "Percentage of completion method", i.e., profit is recognised to the extent of completed % on total contract value for which sales advance is received

Income From Services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the project

1.8 Other Income

nterest income is accounted on accrual basis. Dividend income and Other Income including Scrap Sale, Rental Income are accounted for when it is received

1.9 Tangible Fixed Assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intend for its use. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

1.10 Foreign Currency Transactions And Translations

Initial Recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction

Measurement Of Foreign Currency Monetary Items At The Balance Sheet Date

Foreign currency monetary items (other than derivative contracts) of the Company and its net investment in non-integral foreign operations out standing at the Balance Sheet date are restated at the year-end rates

Treatment Of Exchange Differences

Exchange differences arising on settlement / restatement of short-term / long-term foreign currency monetary assets and liabilities of the Company and its integral foreign operations are recognised as income or expense in the Statement of Profit and Loss

1.11 Investments

Long-term investments are carried individually at cost. Cost of investments include acquisition charges such as brokerage, fees and duties. No provision is recognised for the dimunition or appreciation in the value

1.12 Employee Benefits

Employee benefits include provident fund, superannuation fund, gratuity fund and accidental insurance

Defined Contribution Plans

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made

Defined Benefit Plan

As far as the Gratuity is concerned, the Company makes an estimate and is is charged to the Profit & Loss Account. No investment plan is opted for during the year. Gratuity is paid on retirement or termination as per the Gratuity Act

1.13 Borrowing Costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted

1.14 Segment Reporting

The Company is operating in only one segment, namely Construction Industry. Though it has started maintaining of flats constructed by the company, it is treated as part of main activity. Hence, AS - 17 Segment Reporting is not applicable to the company

1.15 Earnings Per Share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares

1.16 Impairment Of Assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.17 Taxes On Income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future ncome tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.18 Provisions And Contingencies

A provision is recognised 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 the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes

1.19 Provision For Warranty

The Company has not formulated any policy for provision of warranty for the products and services provided by the Company. However the Company provides two years of free replacement of replaceable plumbing materials and other similar fittings. The actual expenditure incurred on these accounts is considered as expenditure during the year in which it was spent

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

All assets and liabilites have been classified as Current and Non- Current as per operating cycle set out in the Revised Schedule VI of the Companies Act, 1956.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress includes appropriate portion of profit as Accounting Standard 7 and finished goods include appropriate proportion of overheads. Work in progress on which no advance received are valued at cost.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.5 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non- cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Depreciation and amortisation

Depreciation has been provided on the straight-line method (SLM) as per the rates prescribed in Schedule XIV to the Companies Act, 1956. Intangible assets are amortised over their estimated useful life.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation method is revised to reflect the changed pattern.

1.7 Revenue recognition Sale of finished goods

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales include service tax value added tax.

Work in Progress

The Company recognises revenue as per AS-7, relating to construction contracts as % of completion method, i.e., profit is recognised to the extent of completed % on total contact value for which sales advance is received.

Income from services

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion. Foreseeable losses on such contracts are recognised when probable.

1.8 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when it is received.

1.9 Tangible fixed assets

Fixed assets, are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

1.10 Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any.

1.11 Foreign currency transactions and translations Initial recognition

Transactions in foreign currencies entered into by the Company and its integral foreign operations are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.1.

1.12 Investments

Long-term investments are carried individually at cost less. Cost of investments include acquisition charges such as brokerage, fees and duties. No provision is recognised for the dimunition or appreciation in the value.

1.13 Employee benefits

Employee benefits include provident fund, superannuation fund, gratuity fund and accidental insurance.

Defined contribution plans

The Company's contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense as they fall due based on the amount of contribution required to be made. As for as the Gratuity is concerned, the Company makes an estimate and is charged to the Profit & Loss Account. No investment plan is opted for the investment. Gratuity is paid on retirement or termination as per the Gratuity Act.

1.14 Borrowing costs

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets / projects, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such assets / projects is added to the cost of the assets / projects. Capitalisation of borrowing costs is suspended when the project is not commenced and is charged to deferred revenue expenses in the Balance sheet

1.15 Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

1.16 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

1.17 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their realisability.

1.18 Impairment of assets

The carrying values of assets / cash generating units at each Balance Sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

1.19 Provisions and contingencies

A provision is recognised 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 the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.20 Provision for warranty

The Company has not formulated any policy for provision of warranty for the products and services provided by the Company. However the Company provides two years of free replacement of replaceable plumbing materials and other similar fittings. The actual expenditure incurred on these account is considered as expenditure during the year in which it was spent.

1.21 Share issues expenses

Share issue expenses and redemption premium are adjusted against the Securities Premium Account as permissible under Section 78(2) of the Companies Act, 1956, to the extent balance is available for utilisation in the Securities Premium Account. The balance of share issue expenses is carried as an asset and is amortised over a period of 5 years from the date of the issue of shares.

1.22 Insurance claims

Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that there is no uncertainty in receiving the claims.

1.23 Service tax input credit

Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits.

During the year 2008 - 2009 the Equity Share warrants numbered 51,74,100 amounting to Rs. 46,52,49,600/- which were issued to the promoters of the company were forfeited. Since the Promoters have failed to honor the terms and condition of the Share Warrants issued to them. And hence the Forfeited Account is credited with Rs. 4,65,24,960/-

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Mar 31, 2011

The financial statements of the company are prepared under the historical cost convention and in accordance with applicable mandatory accounting standards issued by the institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956. Accounting policies not specifically referred to are consistent with generally accepted accounting practices. The company follows mercantile system of accounting policies which is stated below.

A. REVENUE RECOGNITION

The company follows percentage of completion method for recognition of income as per AS – 7 relating to construction contracts. Income from operation is the value of construction work handed over to customers, less income already recognized during the previous accounting year as per AS – 7.

In respect of sale of mineral water, Sales include Sales Tax and Freight and cartage charges. Revenue is recognized at the point of billing.

Value of Construction work

The value of construction work done during the year is determined as follows;

In respect of project in progress at close of the accounting year, it is difference between the closing and opening work-in-progress duly adjusted for value additions if any, under the percentage completion method.

Interest cost for the project yet to be commenced and as well as selling expenses pertaining to that project has not been recognized as expenditure during the year However it has been considered as expenditure for the purpose of Tax provision under Income tax Act.

B. FIXED ASSETS AND DEPRECIATION

Fixed assets other than land are accounted at cost less Depreciation and impairment loss if any.

Depreciation on fixed assets have been provided on straight line method prescribed under Schedule XIV of the Companies Act 1956 as amended with effect from 16th December 1993 on the original cost of fixed assets.

Expenditure of Capital nature is capitalized at cost that comprise purchase price and any cost directly attributable to bring the asset to its working condition for the intended use.

C. INVESTMENTS

Investments are categorized into Long Term and Current Investments. Long-term investment are stated at cost and unless there is permanent fall in value. And no provision is made for the increase or decrease in the market value as required AS 13. The investments in equity shares are quoted shares.

D. WORK-IN-PROGRESS

Work in progress in respect of each project is valued at the close of the accounting period as aggregate of land cost, material consumed, labour charges and other direct expenditure including interest on borrowed fund for the project. Building material lying unused at each project site is also added to the project cost. An adjustment for value addition is made on the following basis. Firstly the percentage of work completed is ascertained on project wherever advances are received and its proportion to the total estimated cost of the project is worked out. Next profit is estimated on the total project and profit is recognized as percentage of work completed. In the Balance sheet net off work-in-progress minus sales advance is disclosed.

E. AMALGAMATION

During the year the company has made preferential allotment of 13495070 equity shares to the share holders of High End Homes P Ltd pursuant to the scheme of amalgamation duly by Hon'ble Madras High Court. The appointed date for Merger is 01.04.2009 and the effective date of the merger is 02.12.2010

The shares were allotted on the basis of one equity share of Vijay Shanthi Builders Ltd for every three shares held by the shareholders in High End Homes Private Limited.

F. BALANCE CONFIRMATION

Debtors, Creditors, Loans and Advances are subject to confirmation. In case of debtors it is recoverable in kind or in cash and it is fully secured.

G. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

H FOREIGN CURRENCY TRANSACTION

Foreign Currency Transactions are recognized in the books at the exchange rates prevailing on the date of transaction.

I EMPLOYEE BENEFIT PLAN

The Company's Provident Fund Scheme is defined contribution fund and the Company's contribution paid or payable is recognized as expenses in the Profit and Loss Account during the period in which the employees render the related service.

The Gratuity liabilities are provided on Management Estimated basis and are charged to Profit and Loss account and it is neither invested in any Group Gratuity Scheme of LIC nor Company's own recognize Gratuity Scheme.

J IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment Loss is charged to profit and loss account in the year in which an asset is identified as impaired. During the year impairment loss is recognized.

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Mar 31, 2010

The financial statements of the company are prepared under the historical cost convention and in accordance with applicable mandatory accounting standards issued by the institute of Chartered Accountants of India and the relevant provision of the Companies Act, 1956. Accounting policies not specifically referred to are consistent with generally accepted accounting practices. The company follows mercantile system of accounting policies which is stated below.

A. REVENUE RECOGNITION

The company follows percentage of completion method for recognition of income as per AS 7 relating to construction contracts. Income from operation is the value of construction work handed over to customers, less income already recognized during the previous accounting year as per AS 7.

In respect of sale of mineral water, Sales include Sales Tax and Freight and cartage charges. Revenue is recognized at the point of billing.

Value of Construction work

The value of construction work done during the year is determined as follows;

In respect of project in progress at close of the accounting year, it is difference between the closing and opening work-in-progress duly adjusted for value additions if any, under the percentage completion method.

Interest cost for the project yet to be commenced and as well as selling expenses pertaining to that project has not been recognized as expenditure during the year However it has been considered as expenditure for the purpose of Tax provision under Income tax Act.

B. FIXED ASSETS AND DEPRECIATION

Fixed assets other than land are accounted at cost less Depreciation and impairment loss if any.

Depreciation on fixed assets have been provided on straight line method prescribed under Schedule XIV of the Companies Act 1956 as amended with effect from 16th December 1993 on the original cost of fixed assets.

Expenditure of Capital nature is capitalized at cost that comprise purchase price and any cost directly attributable to bring the asset to its working condition for the intended use.

C. INVESTMENTS

Investments are categorized into Long Term and Current Investments. Long-term investment are stated at cost and unless there is permanent fall in value. And no provision is made for the increase or decrease in the market value as required AS -13. The investments in equity shares are quoted shares.

D. WORK-IN-PROGRESS

Work in progress in respect of each project is valued at the close of the accounting period as aggregate of land cost, material consumed, labour charges and other direct expenditure including interest on borrowed fund for the project. Building material lying unused at each project site is also added to the project cost. An adjustment for value addition is made on the following basis. Firstly the percentage of work completed is ascertained on project wherever advances are received and its proportion to the total estimated cost of the project is worked out. Next profit is estimated on the total project and profit is recognized as percentage of work completed. In the Balance sheet net off work-in-progress minus sales advance is disclosed.

E. Debtors, Creditors, Loans and Advances are subject to confirmation. In case of debtors it is recoverable in kind or in cash and it is fully secured.

F. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

G. FOREIGN CURRENCY TRANSACTION

Foreign Currency Transactions are recognized in the books at the exchange rates prevailing on the date of transaction.

H. EMPLOYEE BENEFIT PLAN

The Companys Provident Fund Scheme is defined contribution fund and the Companys contribution paid or payable is recognized as expenses in the Profit and Loss Account during the period in which the employees render the related service.

The Gratuity liabilities are provided on Management Estimated basis and are charged to Profit and Loss account and it is neither invested in any Group Gratuity Scheme of LIC nor Companys own recognized Gratuity Scheme.

I. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment Loss is charged to profit and loss account in the year in which an asset is identified as impaired. During the year no impairment loss is recognized.