Accounting Policies of Nimbus Projects Ltd. Company

Mar 31, 2025

2.1 Material Accounting Policies

i) Basis of Preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred
to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’)
read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of
the Act. The Company has uniformly applied the accounting policies during the year presented.

ii) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services
rendered, net of returns and discounts to customers.

a) Real Estate Projects

The Company has aligned its policy of revenue recognition with Ind AS 115 “Revenue from Contracts with Customers”
which is effective from April 1, 2018. Accordingly, revenue in realty business is recognised on completion of
performance obligation as against recognition based on percentage of completion method hitherto in accordance
with the guidance note issued by ICAI which has since been withdrawn for entity preparing financials as per Indian
Accounting Standard (Ind AS).

b) Interest Income

Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis.

c) Sale of completed real estate projects

Revenue is accounted for: (i) on delivery of absolute physical possession of the respective units on completion, or
(ii) on deemed possession of the respective units on completion, or (iii) on physical possession for fit out, as
considered appropriate by the management based on circumstantial status of the project.

iii) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition or construction of a qualifying asset (including real estate
projects) are considered as part of the cost of the asset/ project. All other borrowing costs are treated as period cost and
charged to the statement of profit and loss in the year in which incurred.

iv) Property, Plant and Equipment
Recognition and Initial measurement

Property, plant and equipment are stated at their cost of acquisition. 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. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent costs are
included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that
future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are
recognised in statement of profit or loss as incurred.

Subsequent measurement (depreciation and useful lives)

Depreciation on Property, Plant and Equipment is provided on Straight Line Method as prescribed in Schedule II to the
Companies Act, 2013. The management estimates the useful life of the assets as prescribed in Schedule II to the
Companies Act, 2013.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognized upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of
the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the income statement when the asset is derecognized.

v) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. 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. Any trade
discount and rebates are deducted in arriving at the purchase price.

Subsequent measurement (amortization and useful lives)

Intangible assets comprising of ERP & other computer software are stated at cost of acquisition less accumulated
amortization and are amortised over a period of five years on straight line method.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its intangible assets recognised
as at 1 April 2016 measured as per the provisions of Previous GAAP and use that carrying value as the deemed cost of
intangible assets.

vi) Impairment of Non Financial Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If
any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of
the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount.The reduction is treated as an impairment loss and
is recognized in the statement of profit and loss.

vii) Goodwill

The cost of acquisition of business over and above the face value of investment in capital is identified in the financial
statements as Goodwill. After initial recognition, Goodwill is tested for impairment annually and measured at cost less
accumulated impairment loss, if any.

viii) Financial Instruments

a) Financial assets

Initial recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the financial
instrument and are measured initially at fair value adjusted for transaction costs.

Subsequent measurement

1) Financial instruments at amortised cost - the financial instrument is measured at the amortised cost if both the
following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of
principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. All other debt instruments are measured at Fair Value through other comprehensive
income or Fair value through profit and loss based on Company’s business model.

2) Equity investments - All equity investments in scope of Ind AS 109 are measured at fair value and at deemed
cost on the basis of Ind AS 101. Equity instruments which are held for trading are generally classified as at fair
value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the
same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss
(FVTPL). The Company makes such election on an instrument by instrument basis. The classification is made
on initial recognition and is irrevocable.

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired
or the Company has transferred its rights to receive cash flows from the asset.

b) Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that are attributable to the acquisition
of the financial liabilities are also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method.
These liabilities include borrowings and deposits.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or
on the terms of an existing liability are substantially modified, such an exchange or modification is treated as the
de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.

c) Financial Guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a
loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the
higher of the amount of expected loss allowance determined as per impairment requirements of Ind-AS 109 and
the amount recognised less cumulative amortization.

d) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at
amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has
been a significant increase in credit risk. For trade receivables only, the Company applies the simplified approach
permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from
initial recognition of the receivables.

e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis,
to realize the assets and settle the liabilities simultaneously.

ix) Inventories and Projects in progress

a) Inventories

• Building material and consumable stores are valued at cost.

• Construction work in progress is valued at cost. Cost includes cost of materials, cost of land including premium
for development rights, services and other related overheads related to project under construction.

• Completed real estate project for sale are valued at lower of cost or net realizable value. Cost includes cost of
land (including premium for development rights), materials, construction, services and other related overheads.

b) Projects in progress

Projects in progress are valued at cost. Cost includes cost of land, materials, construction, services, borrowing
costs and other overheads relating to projects.

x) Retirement benefits

a) Contributions payable by the Company to the concerned government authorities in respect of provident fund,
family pension fund and employee state insurance are charged to the statement of profit and loss.

b) The Company is having Group Gratuity Scheme with Life Insurance Corporation of India. Provision for gratuity is
made based on actuarial valuation in accordance with Ind AS-19.

c) Provision for leave encashment in respect of unavailed leave standing to the credit of employees is made on
actuarial basis in accordance with Ind AS-19.

d) Actuarial gains/losses resulting from remeasurements of the liability/asset are included in other comprehensive
income.

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Mar 31, 2024

Note 11.1 Corporate Information

Nimbus Projects Limited (referred to as “the Company”) is incorporated in India and registered under Companies Act. Registered address of the Company is 1001-1006, Narain Manzil, 23, Barakhamba Road, New Delhi-110001.The company is engaged in the business of developing real estate properties for residential, commercial and retail purposes.

Note 22.1 Material Accounting Policies

i) Basis of Preparation

The financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (‘Act’) read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the year presented.

ii) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of returns and discounts to customers.

a) Real Estate Projects

The Company has aligned its policy of revenue recognition with Ind AS 115 “Revenue from Contracts with Customers” which is effective from April 1, 2018. Accordingly, revenue in realty business is recognised on completion of performance obligation as against recognition based on percentage of completion method hitherto in accordance with the guidance note issued by ICAI which has since been withdrawn for entity preparing financials as per Indian Accounting Standard (Ind AS).

b) Interest Income

Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis.

c) Sale of completed real estate projects

Revenue is accounted for: (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion, or (iii) on physical possession for fit out, as considered appropriate by the management based on circumstantial status of the project.

iii) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition or construction of a qualifying asset (including real estate projects) are considered as part of the cost of the asset/ project. All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the year in which incurred.

iv) Property, Plant and Equipment Recognition and Initial measurement

Property, plant and equipment are stated at their cost of acquisition. 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. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognised in statement of profit or loss as incurred.

Subsequent measurement (depreciation and useful lives)

Depreciation on Property, Plant and Equipment is provided on Straight Line Method as prescribed in Schedule II to the Companies Act, 2013. The management estimates the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

v) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. 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. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent measurement (amortization and useful lives)

Intangible assets comprising of ERP & other computer software are stated at cost of acquisition less accumulated amortization and are amortised over a period of five years on straight line method.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its intangible assets recognised as at 1 April 2016 measured as per the provisions of Previous GAAP and use that carrying value as the deemed cost of intangible assets.

vi) Impairment of Non Financial Assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount.The reduction is treated as an impairment loss and is recognized in the statement of profit and loss.

vii) Goodwill

The cost of acquisition of business over and above the face value of investment in capital is identified in the financial statements as Goodwill. After initial recognition, Goodwill is tested for impairment annually and measured at cost less accumulated impairment loss, if any.

viii) Financial Instruments

a) Financial assets

Initial recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.

Subsequent measurement

1) Financial instruments at amortised cost - the financial instrument is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. All other debt instruments are measured at Fair Value through other comprehensive income or Fair value through profit and loss based on Company’s business model.

2) Equity investments - All equity investments in scope of Ind AS 109 are measured at fair value and at deemed cost on the basis of Ind AS 101. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

b) Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that are attributable to the acquisition of the financial liabilities are also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. These liabilities include borrowings and deposits.

De-recognition of financial liabilities

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or on the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

c) Financial Guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment requirements of Ind-AS 109 and the amount recognised less cumulative amortization.

d) Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

ix) Inventories and Projects in progress

a) Inventories

• Building material and consumable stores are valued at cost.

• Construction work in progress is valued at cost. Cost includes cost of materials, cost of land including premium for development rights, services and other related overheads related to project under construction.

• Completed real estate project for sale are valued at lower of cost or net realizable value. Cost includes cost of land (including premium for development rights), materials, construction, services and other related overheads.

b) Projects in progress

Projects in progress are valued at cost. Cost includes cost of land, materials, construction, services, borrowing costs and other overheads relating to projects.

x) Retirement benefits

a) Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the statement of profit and loss.

b) The Company is having Group Gratuity Scheme with Life Insurance Corporation of India. Provision for gratuity is made based on actuarial valuation in accordance with Ind AS-19.

c) Provision for leave encashment in respect of unavailed leave standing to the credit of employees is made on actuarial basis in accordance with Ind AS-19.

d) Actuarial gains/losses resulting from remeasurements of the liability/asset are included in other comprehensive income.

xi) Provisions, contingent assets and contingent liabilities

A provision is recognized when:- the Company has a present obligation as a result of a past event;- it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and- a reliable estimate can be made of the amount of the obligation.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

xii) Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the profit attributable to equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

xiii) Lease

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116. Identification of a lease requires significant judgment. The Company uses significant judgement in assessing the lease term (including anticipated renewals) and the applicable discount rate. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

xiv) Income Taxes

Provision for current tax is made based on the tax payable under the Income Tax Act, 1961. Current income tax relating to items recognised outside profit and loss is recognised outside profit and loss (either in other comprehensive income or in equity).

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 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.

xv) Significant management judgment in applying accounting policies and estimation of uncertainty Significant management judgments

When preparing the financial statements, management undertakes a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgments in applying the accounting policies of the Company that have the most significant effect on the financial statements.

Estimation of uncertainty

a) Recoverability of advances/receivables

At each balance sheet date, based on historical default rates observed over expected life, the management assesses the expected credit loss on outstanding receivables and advances.

b) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.

c) Provisions

At each balance sheet date on the basis of management judgment, changes in facts and legal aspects, the Company assesses the requirement of provisions against the outstanding warranties and guarantees. However the actual future outcome may be different from this judgment.

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Mar 31, 2023

2.1 Significant Accounting Policies

i) Basis of Preparation

"The financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (''Act'') read with of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act. The Company has uniformly applied the accounting policies during the year presented. "

ii) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net ofreturns and discounts to customers.

a) Real Estate Projects

The Company has aligned its policy of revenue recognition with Ind AS 115 "Revenue from Contracts with Customers" which is effective from April 1, 2018. Accordingly, revenue in realty business is recognised on completion of performance obligation as against recognition based on percentage of completion method hitherto in accordance with the guidance note issued by ICAI which has since been withdrawn for entity preparing financials as per Indian Accounting Standard (Ind AS).

b) Interest Income

"Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis."

c) Sale of completed real estate projects

Revenue is accounted for: (i) on delivery of absolute physical possession of the respective units on completion, or (ii) on deemed possession of the respective units on completion, or (iii) on physical possession for fit out, as considered appropriate by the management based on circumstantial status of the project.

d) Dividend Income

Dividend income is recognized when the right to receive the payment is established.

iii) Borrowing Costs

Borrowing cost that are directly attributable to the acquisition or construction of a qualifying asset (including real estate projects) are considered as part of the cost of the asset/ project. All other borrowing costs are treated as period cost and charged to the statement of profit and loss in the year in which incurred.

iv) Property, Plant and Equipment Recognition and Initial measurement

"Property, plant and equipment are stated at their cost of acquisition. 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. Any trade discount and rebates are deducted in arriving at the purchase price. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognised in statement of profit or loss as incurred."

Subsequent measurement (depreciation and useful lives)

Depreciation on Property, Plant and Equipment is provided on Straight Line Method as prescribed in Schedule II to the Companies Act, 2013. The management estimates the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

De-recognition

An item of property, plant and equipment and any significant part initially recognised is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.

v) Intangible assets

Recognition and initial measurement

Intangible assets are stated at their cost of acquisition. 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. Any trade discount and rebates are deducted in arriving at the purchase price.

Subsequent measurement (amortization and useful lives)

Intangible assets comprising of ERP & other computer software are stated at cost of acquisition less accumulated amortization and are amortised over a period of five years on straight line method.

Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all its intangible assets recognised as at 1 April 2016 measured as per the provisions of Previous GAAP and use that carrying value as the deemed cost of intangible assets.

vi) Impairment of Non Financial Assets

"The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount.The reduction is treated as an impairment loss and is recognized in the statement of profit and loss."

vii) Financial Instruments

a) Financial assets

Initial recognition and measurement

Financial assets are recognised when the Company becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value adjusted for transaction costs.

Subsequent measurement

1) Financial instruments at amortised cost - the financial instrument is measured at the amortised cost if both the following conditions are met:

- The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. All other debt instruments are measured at Fair Value through other comprehensive income or Fair value through profit and loss based on Company’s business model.

2) Equity investments - All equity investments in scope of Ind AS 109 are measured at fair value and at deemed cost on the basis of Ind AS 101. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.

De-recognition of financial assets

A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or the Company has transferred its rights to receive cash flows from the asset.

b) Financial Liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and transaction cost that are attributable to the acquisition ofthe financial liabilities are also adjusted. These liabilities are classified as amortised cost.

Subsequent measurement

Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. These liabilities include borrowings and deposits.

De-recognition of financial liabilities

"A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or on the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss."

c) Financial Guarantee contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified party fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of expected loss allowance determined as per impairment requirements of Ind-AS 109 and the amount recognised less cumulative amortization.

d) Impairment of financial assets

"The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised cost and FVOCI debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables only, the Company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition ofthe receivables."

e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

viii) Inventories and Projects in progress

a) Inventories

- Building material and consumable stores are valued at cost.

- Construction work in progress is valued at cost. Cost includes cost of materials, cost of land including premium for development rights, services and other related overheads related to project under construction.

- Completed real estate project for sale are valued at lower of cost or net realizable value. Cost includes cost of land (including premium for development rights), materials, construction, services and other related overheads.

b) Projects in progress

Projects in progress are valued at cost. Cost includes cost of land, materials, construction, services, borrowing costs and other overheads relating to projects.

ix) Retirement benefits

a) Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and employee state insurance are charged to the statement of profit and loss.

b) The Company is having Group Gratuity Scheme with Life Insurance Corporation of India. Provision for gratuity is made based on actuarial valuation in accordance with Ind AS-19.

c) Provision for leave encashment in respect of unavailed leave standing to the credit of employees is made on actuarial basis in accordance with Ind AS-19.

d) Actuarial gains/losses resulting from remeasurements of the liability/asset are included in other comprehensive income.

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Mar 31, 2016

NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2016 Note-

1 :Significant Accounting Policies

1.1 Basis of accounting

The financial statements are prepared under historical cost convention on accrual basis (except interest on delayed payment by customers, administrative charges recovered from customers and expenditure on compensation/ penalty for project delay, which are accounted for at the time of acceptance/ settlement with the customers due to uncertainties with regard to determination of amount receivable/ payable) and are 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 read with Rule 7 of the Companies (Accounts) Rules, 2014 in respect of Section 133 of the Companies Act, 2013. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

1.2 Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses. Cost comprises purchase price, duties, levies and any other cost relating to the acquisition and installation of the asset. Fixed assets under construction are treated as soon the assets become operational and ready for use. Borrowing cost, if any, directly attributable to the acquisition and / or construction of fixed asset, until the date assets are ready for its intended use, are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets.

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. Expenditure on an intangible item is expensed when incurred unless it forms part of the cost of intangible asset that meets the recognition criteria. Intangible assets are stated at cost of acquisition and are carried at cost less accumulated amortization and impairment loss, if any.

1.3 Depreciation

a) Depreciation is provided on Written Down Value Method as prescribed in Schedule II to the Companies Act, 2013. For Mobile Phones, useful life is considered 2 years.

b) Depreciation on additions / deletion to fixed assets is provided on proportionate basis according to the date of addition / deletion.

1.4 Investments

Long term investments are stated at cost. A provision for diminution is made to recognise a decline, if any, other than temporary in nature, in the value of long term investments.

Short term investments are stated at lower of cost or market value.

1.5 Inventories

Inventories are valued at lower of cost and net realizable value. Construction work in progress comprises of cost of land (including premium for development rights), materials, services and other related overheads.

1.6 Employee Benefits

Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund & Family Pension and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employees.

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Provision for leave encashment is made on accrual basis.

1.7 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the assets are ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognized and capitalized and are included in Capital WIP in the period in which they are incurred.

1.8 Taxation

Tax expense comprises of current Income tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and the tax laws enacted or substantially enacted at the balance sheet date.

Deferred tax assets other than on carried forward losses and unabsorbed depreciation are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax asset on account of carried forward losses and unabsorbed depreciation are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.9 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event 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 values and are determined based on management estimate required to settle the obligation at the balance sheet date. Contingent liabilities, if material, are disclosed by way of notes. Contingent assets are not recognized or disclosed in the financial statement.

1.10 Revenue Recognition

a) Revenue from constructed properties is recognized on the ''percentage of completion method''. Sale consideration as per the duly executed agreements to sell/application forms (containing salient terms of agreement to sell), is recognized as revenue based on (i) the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred (excluding land acquisition cost) being 25 per cent or more of the total estimated project cost (excluding land acquisition cost) and (ii) when at least 25 per cent of the saleable project area is secured by contracts or agreements with buyers and at least 10 per cent of the total revenue are realized. Income is recognized when it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognized in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognized immediately.

b) Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis.

c) Dividend income is accounted when the right to receive is established and known.

d) Administration charges recovered from customers are accounted as per the terms of contract with the customers.

e) Share of profit from the partnership firm, in which the Company is a partner, is as per the financial statement of the partnership firm.

1.11 Cost of Construction/ Development

Cost of Construction/ Development (including cost of land) incurred is charged to the Statement of Profit and Loss proportionate to project area sold. Adjustments, if required, are made on completion of the respective projects.

1.12 Foreign Currency Transaction

Foreign currency transaction is recorded at the rates of exchange prevailing on the date of the transactions. Exchange differences arising on foreign currency transactions are recognized as income or as expenses and accordingly debited or credited to profit and loss account.

1.13 Segment Reporting

The Company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under Accounting Standard 17.

1.14 Leases

a) Operating lease

Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as Operating leases. Lease payments are charged to the statement of profit and loss account of the year in which they due.

b) Finance lease

Leases where the less or effectively transfers substantially all the risks and rewards incident to ownership of an asset are classified as Finance leases. The Company has taken a Plot of Land on finance lease from Greater Noida Industrial Development Authority (GNIDA).

1.15 Accounting for Joint Ventures

The Company''s investments in jointly controlled entities is reflected as investment and accounted for in accordance with the company''s accounting policy of investments.

c) Rights, preferences and restrictions attached to Equity shares

The Company has equity shares having a par value of Rs. 10/- per share. On a show of hands, every holder of equity shares is entitled for one vote and upon a poll shall have voting rights in proportion to the shares of the paid up capital of the Company held by them. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the company after distribution of all preferential amount in the proportion to their shareholding.

d) Rights, preferences and restrictions attached to Preference shares

The Company has only one class of preference shares 8% Non-Cumulative, Non-Convertible, Non-Participating, Compulsory Redeemable Preference Shares of Rs. 10/- each (at a premium of Rs. 40/- on each Preference Share) to be redeemed after 15 years at a premium of Rs. 100/- on each Preference Share but which may be redeemed at the option of the Company at any time after 2 years at a fixed premium of Rs. 40/- on each Preference Share and an additional premium @ Rs. 4/- per year till these Preference Shares are redeemed. These shares carry no voting rights and the said shares are Non-convertible into equity shares. As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

iii) Claims against the Company not acknowledged as debt Rs. Nil (31.03.2015: Nil).

(b) Commitments

There are no outstanding Capital Commitments.

2.27 Retirement Benefits: Payments under defined contribution plans like Provident Fund and Family Pension have been charged to the Statement of Profit and Loss as and when made or due.

Disclosure for defined benefit plan - Gratuity (funded with LIC under Group Gratuity Scheme)

2.28 Related Party Transactions:

a) Names of other related parties and nature of relationship where there are transactions with related parties:

Associate Companies Capital Infra projects Pvt. Ltd

Golden Palms Facility Management Pvt. Ltd.

Jointly Controlled Entities IITL-Nimbus The Hyde Park - a Partnership Firm

IITL-Nimbus The Express Park View - a Partnership Firm IITL- Nimbus The Palm Village - a Partnership Firm Indogreen International - a Partnership Firm

Entities over which Key Management Personnel Nimbus India Limited

Exercise Significant Influance Nimbus Propmart Pvt. Ltd

Nimbus Multicommodities Brokers Ltd.

IITL Projects Ltd

Key Management Personnels Mr. Bipin Agarwal - Managing Director

Mr. Lalit Agarwal - Whole Time Director (WTD) & Company Secretary (W.e.f. 09.11.2015) Mr. Swatantra Kumar Sethi - Company Secretary (W.e.f. 30.03.2015 to 19.08.2015) Mr. Jitendra Kumar - Chief Financial Officer (W.e.f. 14.05.2015)

2.35 In the opinion of the management, the trade receivables, current assets, loans and advances and trade payables are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities are adequate.

2.36 Status of Various Projects

a) The Company has developed a Group Housing Project "Express Park View" at Plot No GH-10B, Sector CHI-V, Greater Noida, U.P., located in main Noida-Greater Noida Expressway. This Group Housing Project has all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project has 332 flats & 4 shops, consisting of 2 Bed Rooms and 3 Bed Rooms in sizes varying from 831sq.ft. to 1458 sq.ft. Presently, the Project is fully complete in all respects. The Company has booked total 311 Flats of varying sizes, out of which the Company has given possession of 274 Units and has collected the Rs. 82.36 crore for the sale of flats & shops till 31.03.2016. During the quarter ended 31.03.2016 the project undertaken by the company is completed, the cost of unsold units has been considered as stock of units in completed project.

b) The Company had entered into a Partnership ''IITL-NIMBUS THE HYDE PARK NOIDA'' in April 2010 with M/s IITL Projects Ltd. & M/s Supertech Ltd. to develop the Group Housing Project "The Hyde Park" at Plot No. GH-03, Sector 78, Noida. The agreed Capital Ratio between the partners was 45:45:10 with profit to be shared in the said Capital Ratio. During the year ended 31.03.2016, M/s Supertech Ltd. exit from the partnership firm and now the revised Ratio between remaining partners is 50:50. The Hyde Park Project for Residential Development encompasses all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consists of 2044 flats & 63 commercial units in totality. Apartments are of IBHK/ 2BHK/ 3BHK & 4BHK with sizes varying from 525sq.ft. to 2428 sq.ft. The Partnership Firm has booked total 1377 Flats of varying sizes & 57 commercial units in the said project and has collected the booking amount of Rs. 553.33 crore for the above said booking of flats & commercial units till 31.03.2016.

c) The Company had entered into a Partnership ''IITL-NIMBUS THE EXPRESS PARK VIEW'' with M/s IITL Projects Ltd. & M/ s Assotech Ltd. in April 2011, to develop the Group Housing Project ''Express Park View - II'' at Plot No. GH-03, Sector CHI-V, Greater Noida. The agreed Capital Ratio between the partners is 47.5:47.5:5 and profit will be shared in the said Capital Ratio. The Express Park View - II, Project for Residential Development shall encompass all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consists of 1668 flats in totality. Apartments shall be of 2BHK/ 3BHK & 4BHK in sizes varying from 984 sq.ft. to 2191 sq.ft. The Partnership Firm has booked total 698 Flats of varying sizes in the said project and has collected the booking amount of Rs. 185.92 Crore for the above said booking of flats till 31.03.2016.

d) The Company had entered into a Partnership ''IITL-NIMBUS THE PALM VILLAGE'' with M/s IITL Projects Ltd. & M/s Assotech Ltd. in June 2011, to develop the Group Housing Project ''The Golden Palm Village'' at Plot No. GH-03, Sector 22A, Greater Noida of Yamuna Expressway Industrial Development Authority. The agreed Capital Ratio between the partners is 47.5:47.5:5 and profit will be shared in the said ratio. ''The Golden Palm Village'', Project for Residential Development shall encompass all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. The Partnership Firm has booked total 54 Flats of varying sizes in the said project and has collected the booking amount of Rs. 3.49 Crore for the above said booking of flats as on 31.03.2016. Due to Real Estate Market conditions, low demand and consequent delay, the Firm has started refunding booking amount along with interest to the customers as per their request. The Firm is in the process of evaluating alternative options for executing this project within the overall framework of the lease agreement. The management at this stage does not expect any erosion in the capital contribution in the Firm.

e) The Company holds 50% shareholding, i.e., 500,000 Equity Shares (and 11,250,000 Preference Shares) of "M/s Capital Infra projects Pvt. Ltd.". The company M/s ''Capital Infra projects Pvt. Ltd.'' is developing a Group Housing Project at Plot No. GH-01/E, Sector - 168, Noida. The Project ''The Golden Palms'' encompasses all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consists of 1408 Flats and 49 Commercial Units in totality. Apartments are Studio Appt. / 2BHK/ 3BHK & 4BHK in sizes varying from 506sq.ft. to 2629 sq.ft. The company M/s ''Capital Infra projects Pvt. Ltd.'' has booked total 862 Flats of varying sizes and 21 Commercial Units in the said project and has collected the booking amount of Rs. 293.94 crore for the above said bookings till 31.03.2016.

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Mar 31, 2015

Corporate Information

Nimbus Projects Limited is engaged in Real Estate Development of Commercial / Residential Projects, Trading of Properties & Real Estate Agent business etc. It is developing Residential Projects in National Capital Region (NCR). It has developed one Residential Project "Express Park View" in Greater Noida. Apart from developing its own Project, the company is undertaking development through Special Purpose Vehicle / Joint Venture (SPV / JV). The company is developing four Residential Projects in Joint Venture in Noida & Greater Noida.

1.1 Basis of Accounting

The financial statements are prepared under historical cost convention on accrual basis (except interest on delayed payment by customers, administrative charges recovered from customers and expenditure on compensation/ penalty for project delay, which are accounted for at the time of acceptance/ settlement with the customers due to uncertainties with regard to determination of amount receivable/ payable) and are 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 read with Rule 7 of the Companies (Accounts) Rules, 2014 in respect of Section 133 of the Companies Act, 2013. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

1.2 Fixed assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses. Cost comprises purchase price, duties, levies and any other cost relating to the acquisition and installation of the asset. Fixed assets under construction are treated as soon the assets become operational and ready for use. Borrowing cost, if any, directly attributable to the acquisition and / or construction of fixed asset, until the date assets are ready for its intended use, are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets. Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. Expenditure on an intangible item is expensed when incurred unless it forms part of the cost of intangible asset that meets the recognition criteria. Intangible assets are stated at cost of acquisition and are carried at cost less accumulated amortization and impairment loss, if any.

1.3 Depreciation

a) Depreciation on fixed assets for the year ended 31st March, 2014 is provided on the Written down Value Method at the rates prescribed in Schedule XIV to The Companies Act, 1956.

b) Effective from 1st April, 2015, depreciation is provided on Written Down Value Method as prescribed in Schedule II to the Companies Act, 2013.

c) Depreciation on additions / deletion to fixed assets is provided on proportionate basis according to the date of addition / deletion.

1.4 Investments

Long term investments are stated at cost. A provision for diminution is made to recognize a decline, if any, other than temporary in nature, in the value of long term investments.

Short term investments are stated at lower of cost or market value.

1.5 Inventories

Inventories are valued at lower of cost and net realizable value. Construction work in progress comprises of cost of land (including premium for development rights), materials, services and other related overheads.

1.6 Employee Benefits

Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund & Family Pension and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employees.

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Provision for leave encashment is made on accrual basis.

1.7 Borrowing Costs

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the assets are ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognized and capitalized and are included in Capital WIP in the period in which they are incurred.

1.8 Taxation

Tax expense comprises of current Income tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and the tax laws enacted or substantially enacted at the balance sheet date.

Deferred tax assets other than on carried forward losses and unabsorbed depreciation are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax asset on account of carried forward losses and unabsorbed depreciation are recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.9 Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized when an enterprise has a present obligation as a result of past event 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 values and are determined based on management estimate required to settle the obligation at the balance sheet date. Contingent liabilities, if material, are disclosed by way of notes. Contingent assets are not recognized or disclosed in the financial statement.

1.10 Revenue Recognition

a) Revenue from constructed properties is recognized on the 'percentage of completion method'. Sale consideration as per the duly executed agreements to sell/application forms (containing salient terms of agreement to sell), is recognized as revenue based on (i) the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred (excluding land acquisition cost) being 25 per cent or more of the total estimated project cost (excluding land acquisition cost) and (ii) when at least 25 per cent of the saleable project area is secured by contracts or agreements with buyers and at least 10 per cent of the total revenue are realized. Income is recognized when it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognized in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognized immediately.

b) Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis.

c) Dividend income is accounted when the right to receive is established and known.

d) Administration charges recovered from customers' are accounted as per the terms of contract with the customers.

e) Share of profit from the partnership firm, in which the Company is a partner, is as per the financial statement of the partnership firm.

1.11 Cost of Construction/ Development

Cost of Construction/ Development (including cost of land) incurred is charged to the Statement of Profit and Loss proportionate to project area sold. Adjustments, if required, are made on completion of the respective projects.

1.12 Foreign Currency Transaction

Foreign currency transaction is recorded at the rates of exchange prevailing on the date of the transactions. Exchange

differences arising on foreign currency transactions are recognized as income or as expenses and accordingly debited or credited to profit and loss account.

1.13 Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are expensed in the period they occur.

1.14 Segment Reporting

The Company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under Accounting Standard 17.

1.15 Leases

a) Operating lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as Operating leases. Lease payments are charged to the statement of profit and loss account of the year in which they due.

b) Finance lease

Leases where the lessor effectively transfers substantially all the risks and rewards incident to ownership of an asset are classified as Finance leases. The Company has taken a Plot of Land on finance lease from Greater Noida Industrial Development Authority (GNIDA).

1.16 Accounting for Joint Ventures

The Company's investments in jointly controlled entities is reflected as investment and accounted for in accordance with the company's accounting policy of investments.

c) Rights, preferences and restrictions attached to Equity shares

The Company has equity shares having a par value of Rs. 10/- per share. On a show of hands, every holder of equity shares is entitled for one vote and upon a poll shall have voting rights in proportion to the shares of the paid up capital of the Company held by them. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting. In the vent of liquidation, the equity shareholders are entitled to receive the remaining assets of the company after distribution of all preferential amount in the proportion to their shareholding.

d) Rights, preferences and restrictions attached to Preference shares

The Company has only one class of preference shares 8% Non–Cumulative, Non–Convertible, Non–Participating, Compulsory Redeemable Preference Shares of Rs. 10/- each (at a premium of Rs. 40/- on each Preference Share) to be redeemed after 15 years at a premium of Rs. 100/- on each Preference Share but which may be redeemed at the option of the Company at any time after 2 years at a fixed premium of Rs. 40/- on each Preference Share and an additional premium @ Rs. 4/- per year till these Preference Shares are redeemed. These shares carry no voting rights and the said shares are Non-convertible into equity shares. As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

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Mar 31, 2014

1) Basis of Accounting

The financial statements are prepared under historical cost convention on an accrual basis (except interest income on late payments on flat booked and maintenance/administration charges, which are accounted when realised) and are 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 which continue to be applicable in respect of section133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the Companies Act, 1956. The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

2) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialize.

3) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses. Cost comprises purchase price, duties, levies and any other cost relating to the acquisition and installation of the asset. Fixed assets under construction are treated as soon the assets become operational and ready for use. Borrowing cost, if any, directly attributable to the acquisition and / or construction of fixed asset, until the date assets are ready for its intended use, are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets.

Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. Expenditure on an intangible item is expensed when incurred unless it forms part of the cost of intangible asset that meets the recognition criteria. Intangible assets are stated at cost of acquisition and are carried at cost less accumulated amortization and impairment loss, if any.

4) Depreciation

a) Depreciation on fixed assets is provided on the Written down Value Method at the rates prescribed in Schedule XIV to The Companies Act, 1956.

b) Depreciation on additions to fixed assets is provided on the basis of date of addition. No depreciation is provided on deletion to fixed assets in the year to sale.

5) Construction Contract Revenue / Cost

Contract revenues and contract cost are recognized as revenue and expenses respectively by reference to the stage of the completion of the contract activity at the reporting date when and only when the outcome of a construction contract is estimated reliably. When the outcome of a construction contract is not estimated reliably then revenue is recognized only to the extent of contract costs incurred of which recovery is probable and contract costs is recognized as an expense in the period in which they are incurred. An expected loss is recognized as an expense immediately.

6) Revenue Recognition

a) Revenue from Real estate projects is recognized on the Percentage of Completion method. Revenue is recognized in relation to area sold, on the basis of percentage of actual costs incurred as against the total estimated cost of the project under execution, subject to such actual costs being 25 percent or more of the total estimated cost.

The estimates of saleable area and costs are revised periodically by the Management. The effect of such changes in estimates is recognized in the period in which such changes are determined.

b) Fees are accounted as per the terms of contract with the customers.

c) Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis.

d) Dividend income is accounted when the right to receive is established and known.

e) Share of profit from the partnership firm, in which the Company is a partner, is as per the financial statement of the partnership firm.

7) Inventories

a) Construction Material cost is determined on a First in First out basis.

b) Land is valued at cost. Cost comprises cost of acquisition and all other related costs.

c) Construction work in progress is valued at cost. Cost comprises premium for development rights, cost of material, services and other related overheads related to project under construction.

8) Investments

Long term investments are stated at cost. A provision for diminution is made to recognise a decline, if any, other than temporary in nature, in the value of long term investments.

Current investments are stated at lower of cost and fair market value.

9) Taxation

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and the tax laws enacted or substantially enacted at the balance sheet date.

Deferred tax assets other than on carried forward losses and unabsorbed depreciation are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax asset on account of carried forward losses and unabsorbed depreciation are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

10) Foreign Currency Transaction

Foreign currency transaction is recorded at the rates of exchange prevailing on the date of the transactions. Exchange differences arising on foreign currency transactions are recognized as income or as expenses and accordingly debited or credited to profit and loss account.

11) Retirement and other Employees'' Benefits

a) Defined Contribution Plan:

Provident fund is considered as defined contribution plan and the contributions are charged to the profit and loss account of the year in which the contributions to the fund are due. However contributions which are directly attributable to project are allocated to cost of construction.

b) Defined benefit plan:

The company has a defined benefit employees scheme in the form of Gratuity and for this purpose it has entered into a Group gratuity cum Life Assurance Scheme to be approved under part ''C'' of the Fourth Schedule of Income Tax Act, 1961, with the Life Insurance Corporation of India to provide the Gratuity Benefits to the employees of the company under an Irrevocable Trust. The Trustees of the Scheme have entrusted the administration of related fund to L.I.C. The company shall pay to the trustee such contribution as are required to secure the benefits which will include the liberalized death cover to the employees. Expenses for the year is determined on the basis of actuarial valuation of the company''s year-end obligation in this regard and the value of year end assets of the scheme. Contribution is deposited with L.I.C. based on intimation received by the Company.

The Company provides for the encashment of leave or leave without pay subject to certain rules. The Employees are entitled to accumulate leave subject to certain limits for future encashment/availment. The Company makes provision for compensated absences based on management valuation as at the date of balance sheet.

12) Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are expensed in the period they occur.

13) Segment Reporting

The Company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under Accounting Standard 17.

14) Leases Operating lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as operating leases. Lease payments are charged to the profit and loss account of the year in which they due.

Finance lease

Leases where the lessor effectively transfers substantially all the risks and rewards incident to ownership of an asset. Land has been taken on finance lease of 90 years and is included in Inventory.

15) Accounting for Joint Ventures

The Company''s investments in jointly controlled entities is reflected as investment and accounted for in accordance with the company''s accounting policy of investments (see Note C (23) below).

16) Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal / external factors. Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of an asset in an arm''s length transaction between knowledgeable, willing parties, less the cost of disposal.

17) Provision, contingent liabilities and contingent assets

Provision is recognized when an enterprise 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 and in respect of which a reliable estimate can be made. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimate.

The contingent liabilities are disclosed, unless the possibility of outflow of resources is remote. Contingent Assets are generally neither recognized nor disclosed in the financial statements.

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Mar 31, 2010

1.) Nature Of Operation

The company has been engaged in the various activities relating to real estate sector including entering into collaboration agreement, development of commercial complex, construction of flats and offices, advisory / consultancy services.

2.) Basis of preparation of financial statements

The financial statements have been prepared to comply, in all material respects, with:

- the Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006;

- ther elevant provisions of the Companies Act, 1956;and

- the generally accepted accounting principles in India.

The financial statements have been prepared under historical cost convention on accrual basis and on the assumption of going concern basis. The accounting policies have been consistently applied by the Company and are consistently followed by the Company and are consistent with those applied in the previous year.

3.) Use of Estimates

The preparation of Financial Statements require to management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of the contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from estimates. Any revision to accounting estimates is recognized in accordance with the requirements of the respective accounting standard in the period in which the results are known / materialized.

4.) Inventories

The value of various categories of inventories is arrived following FIFO, formula wherever applicable, at as follows:

- Raw material, consumables and stores and spares are valued at the lower of cost or net realizable value.

- Work in progress is valued by taking cost of material used and labour charges incurred upto the stage of constructions and other related cost wherever applicable subject to their estimated net realizable value.

- Finished goods is valued at the lower of cost or net realizable value.

5.) Contingencies and Provisions

A provision is recognized when there is a present obligation as a result of past event 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 its present value and are determined based on best estimate required to settle the obligation at the balance date. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates.

6.) Prior Period Items

Prior period items arisen in the current year as a result of errors or omission in the preparation of the financial statements of prior period(s) are separately disclosed in the profit & loss account.

7.) Construction Contract Revenue/ Cost

- Contract Revenues and Contract Cost are recognized as revenue and expenses respectively by reference to the stage of the completion of the contract activity at the reporting date when and only when the outcome of a construction contract is estimated reliably. When the outcome of a construction contract is not estimated reliably then revenue is recognized only to the extent of contract costs incurred of which recovery is probable and contract costs is recognized as an expense in the period in which they are incurred. An expected loss is recognized as an expense immediately.

8.) Revenue Recognition

- Revenues / Sales / Incomes and Cost / Expenditures are generally accounted on accrual basis, as they are earned or incurred.

- Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

- Revenues from sales are recognized on transfer of significant risk and rewards.

- Duties and Taxes, wherever applicable, included in the amount of turnover (gross) are deducted from turnover (gross) for disclosure of net turnover in the P&LA/c.

- Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

9.) Fixed Assets

Fixed assets are stated at cost less accumulated depreciation and impairment losses. Cost comprises purchase price, duties, levies and any other cost relating to the acquisition and installation of the asset. Fixed assets under construction are

Seated as soon the assets become operational and ready for use. Borrowing cost, if any, directly attributable to the acquisition and / or construction of fixed asset, until the date assets are ready for its intended use, are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets.

10.) Depreciation

Depreciation on fixed assets is charged, on pro-rata, on the Written Down Value Method in accordance with those specified in Schedule XIV of The Companies Act, 1956.

11.) Foreign Currency Transaction

Foreign currency transaction is recorded at the rates of exchange prevailing on the date of the transactions. Exchange differences arising on foreign currency transactions are recognized as income or as expenses and accordingly debited or credited to profit and loss account.

12.) Investments

Investments which are readily realizable and intended to be held for not more than a year are classified as Current Investment and valued at lower of cost or fair market value determined on an individual investment basis. All other investments are classified as Long Term Investments and are stated at cost less diminution if any which is not in temporary nature.

13.) Retirement and other Employees Benefits

Liability for employees benefits, both short term and long term, for present and past services which are due as per the terms of employment are accounted for as per the provisions of AS 15 (Revised). Gratuity is accounted as per the rules of the company. Contribution to the P.F. / E.S.I., if applicable, are made at a pre determined rate and charged to profit and loss account on accrual basis.

14.) Borrowing Cost

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets and other borrowing cost are recognized as expenses in the period in which they are incurred.

15.) Segment Reporting

The Company has been mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under Accounting Standard 17.

16.) Related Party Transaction

In related party transactions all the material information as required by the Accounting Standard 18 are given to disclose the effect on the financial position and operating results of the Company.

17.) Lease

The company has adopted the provisions of Accounting Standard 19 for accounting of lease, whether finance lease or operating lease, where it is an original lessor or lessee. Assets acquired under lease where substantial risks and rewards are transferred are treated as finance lease and lease other than finance lease is treated as operating lease.

18.) Earning Per Share

Basic Earning Per Share is calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the weighted average number of equity shares during the period.

19.) Taxation

Tax expense comprises of Current Tax and Deferred Tax. Provision for current tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

Deferred Taxes are recognized for the future tax consequences attributable to timing differences and their recognition for tax purpose The effect of a change in tax rates on Deferred Tax Assets / Liabilities is recognized in income using the tax rates and tax laws that have been enacted or substantively enacted by balance sheet date.

Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such Deferred Tax can be realized. However, Deferred Tax Assets arising from brought forward and depreciation are recognized only when there is virtual certainty supported by convincing evidence that such assets will be realized in foreseeable future.

20.) Research and Development

All expenses pertaining to research are charged to the profit and loss account in the year in which they are incurred. All expenses pertaining to development are recognized if, and only if, future economic benefits from the asset are probable otherwise these expenses are charged to the profit and loss account in the year in which they are incurred. 21.) Joint Ventures

I) Interest In Jointly Controlled Operations

Assets that it controls and the liabilities that it incurs, expenses that it incurs and its share of income that it earns from the joint ventures is recognized in its Separate Financial Statements; and

II) Interest In Jointly Controlled Entitles

Interest in such entity is accounted for as an investment in accordance with Accounting Standard (AS) 13, Accounting for Investment.

22.) Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment of the carrying amount of the companys assets. If any indication exists, then recoverable amount / fair market value of such asset is estimated. An impairment loss is recognized wherever the carrying amount of the assets exceeds its recoverable amount / fair market value. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying amount after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation as if there was no impairment.