SIGNIFICANT ACCOUNTING POLICIES:
3. Basis of Preparation:
The financial statements have been prepared on a historical cost basis on an accrual basis of
accounting in accordance with the Generally Accepted Accounting Principles in India to comply with
the Accounting Standards prescribed under Section 133 of the Companies Act. 2013 and relevant
provisions of the Companies Act. 2013 ("the 2013 Act").
The financial statements for the year ended March 31.2025 are presented in Rs and all values are
rounded to the nearest Lakhs except when otherwise indicated.
All assets and liabilities have been classified as current or non-current as per the Company's
normal operating cycle and other criteria set out in Ind AS I 'Presentation of Financial Statements'
and Schedule III to the Companies Act. 2013.
the Company’s normal operating cycle in respect of operations relating to the construction of
real estate projects may vary from project to project depending upon the size of the project, type of
development, project complexities and related approvals. Operating cycle for all completed projects
is based on 12 months period. Assets and liabilities have been classified into current and non-current
based on their respective operating cycle.
4. Property, Plant & Equipment:
Property, plant and equipment (PPL) are stated at cost of acquisition less accumulated
depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable /
allocable cost of bringing the asset to its working condition for its intended use. The cost also
includes direct cost and other related incidental expenses.
All other repair and maintenance costs are recognized in the Statement of Profit and Loss as
incurred. Depreciation has been provided based on the useful life prescribed in Schedule II of the
Companies Act. 2013 in the manner stated therein. Depreciation on assets added, sold or discarded
during the year is provided on pro rata basis.
5. Capital Work in Progress:
Capital work in progress is stated at cost less impairment losses, if any . Cost comprises of
expenditures incurred in respect of capital projects underdevelopment and includes any attributable /
allocable cost and other incidental expenses.
A. Basis of Accounting:
The Company generally follows the mercantile system of accounting and revenue is recognized
and expenditure is accounted for on their accrual. All assets and liabilities have been classified as
current or non-current as per the Company's normal operating cycle and other criteria set out in Ind
AS I ‘Presentation of Financial Statements' and Schedule III to the Companies Act. 2013.
B. Revenue Recognition:
The Company has adopted Ind AS 115 using the cumulative effect method with the effect of
initially applying this standard recognized at the date of initial application (i.e. I April 2018).
Revenue is recognised to the extent that it is probable that economic benefit will (low to the
Company and that the revenue can be reliably measured. Revenue is measured at the fair value of the
consideration received or receivable.
Ind AS 115 Revenue from contracts with customers has been notified by the Ministry of
Corporate Affairs (MCA) on 28 March 2018 and is effective from accounting period beginning on or
after lStApril 2018. replacing the existing revenue recognition standard. Since all the projects of the
company are entirely completed during the year 2018-19. no significant impact is caused to the
financials results due to replacement of the existing revenue recognition standard.
Revenue from project development activity which are in substance similar to delivery of goods is
recognised upon transfer of significant risk and rewards of ownership of the goods to the customer
which generally coincides with delivery and acceptance of the goods sold. The Company adopts
percentage completion method of revenue recognition. The method adopted for determining work
performed is based on completion of physical proportion of the contract work. But now the contract
is fully completed.
l or the purpose of the statement of cash flows, cash and cash equivalents consist of cash at
banks and on hand.
Current tax:
Current income tax is measured at the amount expected to he paid to the taxation authorities
using the tax rates and tax laws that are in force at the reporting date.
Current income tax relating to items recognized outside the Statement of Profit and l oss are
recognized outside the Statement of Profit and Loss (either in other comprehensive income or in
equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or
directly in equity.
The Company offsets current tax assets and current tax liabilities where it has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a net basis,
or to realize the assets and settle the liability simultaneously.
Management periodically evaluates positions taken in the tax returns with respect to situations in
which applicable tax regulations arc subject to interpretation and establishes provisions where
appropriate.
Deferred tax- OCI
Deferred tax is provided using the liability method on temporary differences between the tax
bases of assets and liabilities and their carrying amounts for financial reporting purposes at the
reporting date.
Deferred tax assets are recognized to the extent that it is probable that taxable profit will be
available against which the deductible temporary differences and the carry forward of unused tax
credits and unused tax losses can be utilized.
the carrying amount of deferred tax assets is reviewed at each reporting date and reduced to
the extent that it is no longer probable that sufficient taxable profit will be available to allow all
or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the
same taxation authority and the relevant entity intends to settle its current tax assets and liabilities
on a net basis.
Deferred tax relating to items recognized outside the Statement of Profit and Loss is
recognised outside the Statement of Profit and Loss. Such deferred tax items arc recognised in
correlation to the underlying transaction either in other comprehensive income or directly in
equity.
Deferred tax assets and liabilities arc measured using substantively enacted tax rates expected
to apply to taxable income in the years in which the temporary differences are expected to be
received or settled, Tax expenses are recognised in the statement of profit and loss, except to the
extent that it relates to items recognised directly in equity or other comprehensive income, in
which case it is nil.
8. Investments:
The Company has no Investments as at 3Is1 March 2025.
9. Inventories:
Construction work in progress:
The construction work in progress is valued at lower of cost or net realizable value. Cost
includes cost of land, development rights, rates and taxes, construction costs, borrowing costs, other
direct expenditure, allocated overheads and other incidental expenses.
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