2. Material Accounting Policies:
2.01. Basis of Accounting:
(i) Compliance with Ind AS :
The financial statements comply in all material aspects with Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’)
as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Companies (Indian Accounting Standards)
Amendment Rules, 216 and other relevant provisions of the Act.
(ii) Historical Cost Convention :
The financial statements have been prepared on an accrual basis and under the historical cost convention except for the
following :
1. certain financial assets and liabilities that are measured at fair value;
2. assets held for sale - measured at lower of cost to sell;
3. defined benefit plans - plan assets measured at fair value;
(iii) Classification of assets and liabilities :
All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle (twelve
months) and other criteria set out in the Schedule III to the Act.
(iv) Rounding of amounts:
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement
of Schedule III, unless otherwise stated.
2.02: Use of estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent
liabilities as at the date of the financial statement and reported amount of revenues and expenses during the reporting period.
Actual results could differ from these estimates. Any revision to the estimates is recognized prospectively.
2.03: Property, Plant and Equipment:
The Company has elected to continue with the carrying value of all its Property, Plant and Equipment under the Indian GAAP as on
31st March, 2016, as the deemed cost for the purpose of transition to Ind AS.
All other items of property, plant and equipment are measured at cost less accumulated depreciation. All costs relating to the
acquisition and installation of fixed assets are capitalized and include borrowing costs directly attributable to construction or
acquisition of fixed assets, up to the date the asset is put to use.
Capital Work-in-Progress: Projects under which assets are not ready for their intended use and other capital work-in-progress are
carried at cost, comprising direct cost and attributable interest. Once it becomes available for use, their cost is re-classified to
appropriate caption and are subjected to depreciation.
2.04: Impairment of Assets :
The Company assesses at each Balance Sheet date whether there is any indication that any asset/group of assets may be
impaired. If any such indication exists, the carrying value of such assets is reduced to recoverable amount and the impairment
loss is charged to Statement of Profit and Loss. If at Balance Sheet date, there is any indication that a previously assessed
impairment loss no longer exists, then such loss is reversed and the asset is restated to that effect.
2.05: Depreciation:
a. Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule II to the Companies Act
2013.
b. Assets sold/discarded/demolished during the year; depreciation is provided for up to date of sale/discard/demolish.
2.06: Revenue Recognition:
The Company derives revenues primarily from real estate development.
a) Real Estate projects:
Revenue from real estate projects is recognized when significant risks and rewards of ownership have been transferred and it
is probable that the economic benefits will flow to the company. Losses expected in bringing a contract to completion are
recognized in the income statement as soon as they are forecast.
i) Sale of undivided share of land is recognized upon transfer of all significant risks and rewards of ownership as per terms
of the contracts executed with the buyers and is net of all costs. The transfer of risks and rewards vary depending on the
individual terms of the contracts of sale.
ii) Revenue from firms/AOP in which the company is a partner/member is recognized upon the said entity recognizing their
respective revenues.
iii) Revenue from contractual projects is recognized on the basis of completion of a physical proportion of the contract work
based on executed agreements entered into by the company or by firms/AOP in which the company is a partner/member.
b) Other Income:
Dividend income on investments is recognized when the right to receive dividend is established.
Interest Income is recognized on a time proportionate basis taking into account the amount invested and the rate of interest.
2.07: Valuation of Inventories:
Costs of materials are valued at average cost basis.
Cost of reality inventory such as stock of land held as stock in trade land is valued at converted cost and residential units valued
at cost.
2.08: Borrowing Cost:
Borrowing cost related to acquisition and construction of qualifying assets is capitalized as part of the cost of such asset up to the
date when such asset is ready for its intended use. Other borrowing cost is charged to Statement of Profit and Loss.
2.09: Employee benefits:
Short term employee benefits including accrued liability for Leave Encashment (other than termination benefits) which are payable
within 12 months after the end of the period in which the employees render service are paid/provided during the year as per the
Rules of the Company.
Defined Contribution Plans:
Company’s contributions paid/payable during the year to Provident and Family Pension Funds, and Employees State Insurance are
recognized in the Statement of Profit and Loss.
Defined Benefit Plans:
The Employees’ Gratuity Fund Scheme covered by the Group Gratuity cum-Life Assurance Policy of LIC of India is a Defined Benefit
Plan. The present value of obligation is determined based on actuarial valuation using Projected Unit Credit Method which
recognizes each period of service as giving rise to additional amount of employees benefit entitlement and measures each unit
separately to build up the final obligation.
2.10: Foreign Currency Transactions:
Initial recognition :
Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date
of the transaction or at the rates that closely approximate to the rate at the date of the transaction.
Measurement :
Foreign currency monetary items of the Company outstanding at the Balance Sheet date are restated at year end exchange
rates.
Non-monetary items carried at historical cost are translated using the exchange rates at the dates of initial transactions.
Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when
the fair value is determined. The gain or loss arising on transaction of non-monetary items measured at fair value is treated in
line with the recognition of the gain or loss on the change in fair value of the item.
Treatment of exchange difference:
Exchange differences arising on settlement/restatement of foreign currency monetary assets and liabilities of the Company
are recognised as income or expenses in the Statement of Profit and Loss.
With regard to the exchange rate difference in Investment In Foreign Subsidiary, the difference in exchange rate is recognized
in Statement of Profit and Loss Account and given effect to the Investment Value in standalone financials. The same
exchange difference is recognized as OCI in consolidated financial statements.
In Consolidated financials, the exchange rates adopted for conversion of the foreign subsidiary company financials in to
Indian Rupees as rates prevailing as on closing date of report for Balance sheet items and average exchange rates in case
of revenue/expenditure items.
2.11: Taxation:
a) Provision for Current tax is made on the basis of estimated taxable income for the year or computed in accordance with the
Income-Tax Act, 1961 and recognized in the statement of Profit and Loss except to the extent it relates to items directly
recognized in equity or in other comprehensive income.
b) Deferred tax on account of timing differences, between taxable income and accounting income is recognized using the tax
rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets are recognized to the
extent there s is reasonable certainty that these would be realized in future.
2.12: Lease Rentals:
Lease payments under an operating lease are recognized as an expense in the statement of Profit and Loss on the basis of time
pattern of the Company's benefit.
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