1 MATERIAL ACCOUNTING POLICIES
A Company's Background
National Standard (India) Limited (the Company) is a public limited company domiciled and incorporated in India under
the Companies Act, 1956 vide CIN - L27109MH1962PLC265959. The Company's registered office is located at 412,
Floor - 4, 17 G Vardhaman Chamber, Cawasji Patel Road, Horniman Circle, Fort, Mumbai - 400001. The Company is
primarily engaged in the business of real estate development.
The Financial Statements are approved by the Company's Board of Directors at its meeting held on 17-April-2025
B Material Accounting Policies
I Basis of Preparation
The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (‘Ind
AS') notified under section 133 of the Companies Act 2013, read together with the Companies (Indian Accounting
Standards) Rules, 2015 and amendment if any.
These financial statements have been prepared and presented under the historical cost convention, on the accrual
basis of accounting. The accounting policies have been applied consistently over all the periods presented in these
financial statements.
The financial statements are presented in Indian Rupees (?) and all values are rounded to the nearest lakhs except
when otherwise indicated.
II Summary of Material Accounting Policies
1 Current and Non-Current Classification
The Company presents assets and liabilities in the Balance Sheet based on current/ non-current
classification. An asset is treated as current when it is:
i) Expected to be realised or intended to be sold or consumed in normal operating cycle.
ii) Held primarily for the purpose of trading
iii) Expected to be realised within twelve months after the reporting period, or
iv) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period.
All other assets are classified as non-current.
A liability is current when:
i) It is expected to be settled in normal operating cycle
ii) It is held primarily for the purpose of trading
iii) It is due to be settled within twelve months after the reporting period, or
iv) There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period.
The Company classifies all other liabilities as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities respectively.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and
cash equivalents.
The operating cycle of the Company's real estate operations varies from project to project depending on the
size of the project, type of development, project complexities and related approvals. Accordingly, project related
assets and liabilities are classified into current and non-current based on the operating cycle of the project.
All other assets and liabilities have been classified into current and non-current based on a period of twelve
months.
2 Property, Plant and Equipment
i. Recognition and measurement
All property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes
expenditure that is directly attributable to the acquisitions of the items. Cost includes freight, duties, taxes, borrowing
cost and incidental expenses related to the acquisition and installation of the asset.
ii. Subsequent costs
Subsequent expenditure, including cost of the items which can be reliably estimated, is capitalised only when it
is probable that the future economic benefits of the expenditure will flow to the Company. All other repairs and
maintenance are charged to the Ind AS Statement of Profit and Loss during the reporting period in which they are
incurred.
iii. Derecognition
The carrying amount of an item of Property, Plant and Equipment is derecognized on disposal or when no future
economic benefits are expected from its use or disposal. The gain or loss arising from the derecognition of an item
of Property, Plant and Equipment is measured as the difference between the net disposal proceeds and the carrying
amount of the item and is recognized in the Statement of Profit and Loss when the item is derecognized.
iv. Depreciation
Depreciation is calculated on a written down value basis over the estimated useful lives of the assets as specified in
Schedule II of Companies Act, 2013.
Depreciation on addition to Property, Plant and Equipment is provided on pro-rata basis from the date of
acquisition.
Depreciation on assets sold during the year is charged to the Statement of Profit and Loss up to the month preceding
the month of sale.
Depreciation methods, useful lives and residual values are reviewed periodically at each financial year end and
adjusted prospectively, as appropriate.
3 Investment Properties
The Property that is held for long term rental yield or for capital appreciation or both, and that is not occupied by the
Company is classified as an Investment Property.
Investment properties are measured initially at cost, including transaction and borrowing costs. Subsequent to initial
recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment losses,
if any.
The Company depreciates investment properties over the useful life of 60 years from the date of original purchase as
prescribed under Schedule II to the Companies Act, 2013.
Investment Properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognised in profit or loss in the period of derecognition.
Amortisation method, useful lives and residual values are reviewed at the end of each financial year and adjusted, if
appropriate.
4 Inventories
Stock of Building Materials and Traded Goods is valued at lower of cost and net realizable value. Cost is generally
ascertained on weighted average basis.
Completed unsold inventory is valued at lower of Cost and Net Realizable Value.
Cost for this purpose includes cost of land, shares with occupancy rights, Transferrable Development Rights, premium
for development rights, borrowing costs, construction / development cost and other overheads incidental to the projects
undertaken.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost of completion
and the estimated cost necessary to make the sale.
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