B. Significant Accounting Policies
1. Significant Accounting policies relevant to the Companies operations have been disclosed here.
Basis of preparation of financial statements
The financial statements are prepared in accordance with Indian Accounting Standards (IND AS) notified under
under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and
Companies (Indian Accounting Standards) Amendment Rules, 2016.
The financial statements have been prepared on historical cost convention on the accrual basis. There are no assets or
liabilities that are required to measure at fair values.
Accounting policies have been consistently applied except where a newly issued accounting standard is initially
adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
The financial statements were approved for issue by the Board of Directors on May 29, 2024
2. Use of estimates
The preparation of the financial statements in conformity with IND AS requires management to make estimates,
judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting
policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the
date of the financial statements and reported amounts of revenues and expenses during the period. Application of
accounting policies that require critical accounting estimates involving complex and subjective judgments and the
use of assumptions in these financial statements have been disclosed at appropriate places.
Accounting estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which
changes are made and, if material, their effects are disclosed in the notes to the financial statements.
The said estimates are based on the fact and events, that existed as at the reporting date, or that occurred after that
date but provide additional evidence about conditions existing as at the reporting date.
3. Current versus Non-Current classification
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.
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:
0 Expected to be realised or intended to be sold or consumed in normal operating cycle,
0 Held primarily for the purpose of trading,
0 Expected to be realised within twelve months after the reporting period, or
0 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.
Trade receivables which are expected to be realised within 12 months from the reporting date shall be classified as
current. Outstanding more than 12 months shall be shown as noncurrent only unless efforts for its recovery have
been made and it is likely that payment shall be received within 12 months from the reporting date.
A liability is current when:
0 It is expected to be settled in normal operating cycle,
0 It is held primarily for the purpose of trading,
0 It is due to be settled within twelve months after the reporting period, or
0 There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period
A payable shall be classified as T rade Payable if it is in respect of the amount due on account of goods purchased or
services received in the normal course of business.
Trade payables which are expected to be settled within 12 months from the reporting date shall be shown as current.
The company classified all other liabilities as non-current.
4. Revenue Recognition
a) Sale of Service
In respect Estate Dealing/Development Activity:
The company recognises income from estate dealing and Development activity in fulfilling all obligations in a
substantial manner, as per the terms of contract and on execution of agreement in writing, Costs are accumulated
and charged to the property and the payments received from customers are shown as advance received under
liabilities till such an event.
b) All financial instruments measured at amortised cost, interest income is recognised using the effective interest
rate (EIR), which is the rate that exactly discounts the estimated future cash payments or receipts through the
expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of
the financial assets. Interest income is included in other income in the statement of profit and loss.
b) Dividend income
Revenue is recognised when the Company's right to receive the payment is established, which is generally when
shareholders approve the dividend.
c) Other Income
Other incomes are accounted on accrual basis as and when they are earned
5. Employee Benefits
The company has not laid down any formal policy in relation to short term and long term employee benefit
expenses since the company had only one employee during the year ended 31st March, 2024.
6. Income taxes
Current income tax:
Current income tax assets and liabilities are measured at the amount expected to be recovered from or 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 recognised outside the statement of profit and loss is recognised outside the
statement of profit and loss (either in other comprehensive income or in equity). Current tax items are recognised
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 recognised amounts and where it intends either to settle on a net basis, or to realize the assets and settle the
liability simultaneously
Minimum Alternate Tax (‘MAT’) credit is recognised as an asset only when and to the extent there is convincing
evidence that the Company will pay normal income tax during the specified period. In the year in which the Company
recognises MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in
respect of Minimum Alternative T ax under the Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as "MAT Credit Entitlement”. The Company reviews the "MAT Credit
Entitlement” asset at each reporting date and reduces to the extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the MAT to be utilised.
Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the
Financial Statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the
deductible temporary differences, and the carry forward of unused tax losses can be utilised. Deferred tax liabilities
and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or
the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of
the reporting period. The carrying amount of deferred tax liabilities and assets are reviewed at the end of each
reporting period.
7. Property, Plant and Equipment (PPE) and Transition to Ind AS
PPE is recognized when it is probable that future economic benefits associated with the item will flow to the
company and the cost of the item can measured reliably. All items of PPE are stated at cost net of tax/duty credits
availed, if any, less accumulated depreciation and cumulative impairment, if any. Cost includes expenditure that is
directly attributable to the acquisition and installation of such assets if any. Subsequent expenditure relating to
Property, Plant and Equipment is capitalized only when it is probable that future economic benefits associated with
the item will flow to the Company and the cost of the item can be measured reliably. When significant parts of the
plant and equipment are required to be replaced at intervals, the company depreciated them separately based on
their specific useful lives.
Items such as parts and servicing equipment are recognised as PPE if they meet the definition of property, plant and
equipment and are expected to be used for more than one year.
PPE not ready for the intended use on the date of the Balance Sheet is disclosed as "Capital Work-In -Progress” and
carried at cost, comprising of directly attributable costs and related incidental expenses.
There is no intangible assets of the company for the year ended 31st March, 2024
8. Depreciation on Property, Plant and Equipment
Depreciation has been provided on the Written down Value method, as per the useful lives specified in Schedule II to
the Companies Act, 2013. The asset’s useful lives are reviewed and adjusted, if appropriate, at the end of each
reporting period. The useful lives of PPE are as under:
The management believes that these estimated useful lives are realistic and reflect fair approximation of the period
over which the assets are likely to be used.
9. Investment properties
Transition to Ind AS
Under the previous Indian GAAP, investment properties were carried in the balance sheet at cost less accumulated
depreciation / amortisation and impairment losses, if any. The Company has elected to regard those values of
investment properties as deemed cost at the date of transition to Ind AS (April 01, 2015).
Recognition and initial measurement
Investment properties are properties primarily consisting of Land held to earn rentals or for capital appreciation,
or both. Investment properties are measured initially at cost, including transaction costs. The cost comprises
purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company.
The carrying amount of Investment Property is reviewed periodically for impairment based on internal /external
factors. An impairment loss is recognised wherever the carrying amount of assets exceeds its recoverable amount.
The recoverable amount is the greater of the asset's net selling price and value in use.
When significant components of Investment Properties are required to be replaced at intervals, recognition is made
for such replacement of components as individual assets with specific useful life and depreciation, if these
components are initially recognised as separate asset. All other repair and maintenance costs are recognised in the
statement of profit and loss as incurred.
De-recognition
Investment properties are derecognized 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 the statement of profit and loss in the period
of de-recognition
10. Earnings per share
The Company’s Earning per Share (EPS) is determined based on the net profit attributable to the Shareholders of
the Company. Basic earnings per share is calculated by dividing the net profit / (loss) for the year attributable to
equity shareholders (after deducting preference dividends and attributable taxes) by weighted average number of
equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit
/ (loss) for the year attributable to equity shareholders and the weighted average numbers of shares outstanding
during the year are adjusted for the effects of all dilutive potential equity shares
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