Accounting Policies of Parshwanath Corporation Ltd. Company

Mar 31, 2025

3. Material accounting policies

3.1 Revenue recognition

3.1.1 Revenue from operation

The company earns revenue from construction and development of housing project business.

The company earns revenue from recovery of interest and principal amount of bad loans.
Interest income is recognised as per Effective Interest Rate Method.

3.1.2 Other income

Gain or loss on sale of financial assets

Gain or Loss on derecognition of financial asset is is determined as the difference between
the sale price (net of selling costs) and carrying value of financial asset.

All other incomes are recognised and accounted for on accrual basis.

3.2 Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any.

The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts
and rebates are deducted in arriving at the purchase price.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable
that future economic benefits associated with these will flow to the company and the cost of the item
can be measured reliably.

All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance
expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period
during which such expenses are incurred.

Depreciation on Property, plant and equipment is calculated on straight line basis and as per the useful
life prescribed under Schedule II to the Companies Act, 2013.

In respect of Property, plant and equipment purchased during the year, depreciation is provided on a
pro-rata basis from the date on which such asset is ready to use.

The residual value, useful live and method of depreciation of Property, plant and equipment are reviewed
at each financial year end and adjusted prospectively, if appropriate.

3.3 Financial instruments

3.3.1 Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument.

All financial assets and liabilities are recognized at fair value on initial recognition.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities that are not at fair value through profit or loss are added to or deducted from
the fair value of financial assets or financial liabilities on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities
at fair value through profit or loss are recognised immediately in profit or loss.

3.3.2 Subsequent measurement

(A) Non-derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within
a business model whose objective is to hold the asset in order to collect
contractual cash flows and the contractual terms of the financial asset give rise
on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other
comprehensive income if it is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal
amount outstanding.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are
subsequently measured at fair valued through profit or loss. Fair value changes
are recognised as other income in the Statement of Profit or Loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective
interest method.

(B) Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the
company after deducting all of its liabilities. Incremental costs directly attributable to the
issuance of equity instruments are recognised as a deduction from equity instrument net
of any tax effects.

3.3.3 Derecognition

The company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset and the transfer qualifies for
derecognition under Ind AS 109. A financial liability is derecognized when obligation specified
in the contract is discharged or cancelled or expires.

3.3.4 Off-setting

Financial assets and liabilities are offset and the net amount is presented in the balance sheet
when the company currently has a legally enforceable right to offset the recognised amount
and intends either to settle on a net basis or to realize the asset and settle the liability
simultaneously.

3.4 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.

The fair value measurement assumes that the transaction to sell the asset or transfer the liability takes
place either :

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability
A fair value measurement of a non-financial asset takes into account a market participant''s ability to
generate economic benefit by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy. The fair value hierarchy is based on inputs to valuation
techniques that are used to measure fair value that are either observable or unobservable and consists
of the following three levels :

Level -1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities

Level - 2 inputs are other than quoted prices included within level 1 that are observable for the asset
or liability either directly (i.e. as prices) or indirectly (i.e. derived prices)

Level - 3 inputs are not based on observable market data (unobservable inputs).Fair values are
determined in whole or in part using a valuation model based on assumption that are neither
supported by prices from observable current market transactions in the same instrument nor
are they based on available market data.

3.5 Income tax

Income tax expense comprises current tax and deferred tax.

3.5.1 Current Tax

Current tax is recognised in profit or loss, except when it relates to items that are recognised
in other comprehensive income or directly in equity, in which case, the current tax is also
recognised in other comprehensive income or directly in equity, respectively.

Current tax for current and prior periods is recognized at the amount expected to be paid to
or recovered from the tax authorities, using the tax rates and tax laws that have been enacted
or substantively enacted by the balance sheet date.

Current tax assets and current tax liabilities are offset, where company 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 asset and settle the liability simultaneously.

3.5.2 Deferred Tax

Deferred tax is recognised in profit or loss, except when it relates to items that are recognised
in other comprehensive income or directly in equity, in which case, the deferred tax is also
recognised in other comprehensive income or directly in equity, respectively.

Deferred tax liabilities are recognised for all taxable temporary differences, except to the extent
that the deferred tax liability arises from initial recognition of goodwill; or initial recognition of an
asset or liability in a transaction which is not a business combination and at the time of
transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of
unused tax losses and carry forward of unused tax credits to the extent that it is probable that
taxable profit will be available against which those temporary differences, losses and tax credit
can be utilized, except when deferred tax asset on deductible temporary differences arise from
the initial recognition of an asset or liability in a transaction that is not a business combination
and at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to
the period when the asset is realized or the liability is settled, based on the tax rules and tax
laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred tax liabilities are offset, where company has a legally
enforceable right to set off the recognized amounts and where it intends either to settle on a
net basis, or to realize the asset and settle the liability simultaneously.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that
it is no longer probable that the related tax benefit will be realized.

3.6 Impairment

3.6.1 Financial assets

The company recognizes loss allowances using the expected credit loss (ECL) model for the
financial assets which are not fair valued through profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at
an amount equal to lifetime ECL.

For all other financial assets, expected credit losses are measured at an amount equal to the
12-month ECL, unless there has been a significant increase in credit risk from initial recognition
in which case those are measured at lifetime ECL.

The impairment loss allowance (or reversal) recognised during the period is recognised as
income / expense in the statement of profit and loss.

3.6.2 Non-financial assets
Tangible

The company assesses at each reporting date whether there is an indication that an asset may
be impaired. If any indication exists the company estimates the asset''s recoverable amount.

An asset''s recoverable amount is the higher of an assets net selling price and its value in use.
The recoverable amount is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of
assets.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount. The impairment loss is recognised in
the statement of profit and loss.

In assessing value in use, the estimated future cash flows are discounted to their present value
using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if available.
If no such transactions can be identified, an appropriate valuation model is used.

3.7 Employee Benefits

Short term employee benefits for salary and wages that are expected to be settled wholly within 12
months after the end of the reporting period in which employees render the related service are
recognized as an expense in the statement of profit and loss.

The company operates one defined benefit plan for its employees, viz., gratuity plan. The costs of
providing benefits under the plan are determined on the basis of actuarial valuation at each year-end.
Actuarial valuation is carried out using the projected unit credit method made at the end of each reporting
date. Re-measurement of the net defined benefit liability (asset) comprise of actuarial gains and losses,
the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit
liability (asset) and the return on plan assets (excluding amounts included in net interest on the net
defined benefit liability / (asset)).Re-measurement are recognised in other comprehensive income and
will not be reclassified to profit or loss in a subsequent period.

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Mar 31, 2024

3. Material accounting policies

3.1 Revenue recognition

3.1.1 Revenue from operation

The company earns revenue from construction and development of housing project business.

The company earns revenue from recovery of interest and principal amount of bad loans. Interest income is recognised as per Effective Interest Rate Method.

3.1.2 Other income

Gain or loss on sale of financial assets

Gain or Loss on derecognition of financial asset is is determined as the difference between the sale price (net of selling costs) and carrying value of financial asset.

All other incomes are recognised and accounted for on accrual basis.

3.2 Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.

The cost comprises the purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for its intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditures relating to property, plant and equipment is capitalized only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably.

All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Depreciation on Property, plant and equipment is calculated on straight line basis and as per the useful life prescribed under Schedule II to the Companies Act, 2013.

In respect of Property, plant and equipment purchased during the year, depreciation is provided on a pro-rata basis from the date on which such asset is ready to use.

The residual value, useful live and method of depreciation of Property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

3.3 Financial instruments

3.3.1 Initial recognition

The company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument.

All financial assets and liabilities are recognized at fair value on initial recognition.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to or deducted from the fair value of financial assets or financial liabilities on initial recognition.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

3.3.2 Subsequent measurement

(A) Non-derivative financial instruments

(i) Financial assets carried at amortized cost

A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently measured at fair valued through profit or loss. Fair value changes are recognised as other income in the Statement of Profit or Loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method.

(B) Equity instruments

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Incremental costs directly attributable to the issuance of equity instruments are recognised as a deduction from equity instrument net of any tax effects.

3.3.3 Derecognition

The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability is derecognized when obligation specified in the contract is discharged or cancelled or expires.

3.3.4 Off-setting

Financial assets and liabilities are offset and the net amount is presented in the balance sheet when the company currently has a legally enforceable right to offset the recognised amount and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

3.4 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefit by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and consists of the following three levels:

Level -1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities

Level - 2 inputs are other than quoted prices included within level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived prices)

Level-3 inputs are not based on observable market data (unobservable inputs).Fair values are determined in whole or in part using a valuation model based on assumption that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

3.5 Income tax

Income tax expense comprises current tax and deferred tax.

3.5.1 Current Tax

Current tax is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or directly in equity, in which case, the current tax is also recognised in other comprehensive income or directly in equity, respectively.

Current tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Current tax assets and current tax liabilities are offset, where company 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 asset and settle the liability simultaneously.

3.5.2 Deferred Tax

Deferred tax is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or directly in equity, in which case, the deferred tax is also recognised in other comprehensive income or directly in equity, respectively.

Deferred tax liabilities are recognised for all taxable temporary differences, except to the extent that the deferred tax liability arises from initial recognition of goodwill; or initial recognition of an asset or liability in a transaction which is not a business combination and at the time of transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax losses and carry forward of unused tax credits to the extent that it is probable that taxable profit will be available against which those temporary differences, losses and tax credit can be utilized, except when deferred tax asset on deductible temporary differences arise from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit or loss.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the tax rules and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax assets and deferred tax liabilities are offset, where company has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

3.6 Impairment

3.6.1 Financial assets

The company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss.

Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.

For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.

The impairment loss allowance (or reversal) recognised during the period is recognised as income / expense in the statement of profit and loss.

3.6.2 Non-financial assets Tangible

The company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists the company estimates the asset''s recoverable amount.

An asset''s recoverable amount is the higher of an assets net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets.

Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. The impairment loss is recognised in the statement of profit and loss.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used.

3.7 Employee Benefits

Short term employee benefits for salary and wages that are expected to be settled wholly within 12 months after the end of the reporting period in which employees render the related service are recognized as an expense in the statement of profit and loss.

The company operates one defined benefit plan for its employees, viz., gratuity plan. The costs of providing benefits under the plan are determined on the basis of actuarial valuation at each year-end. Actuarial valuation is carried out using the projected unit credit method made at the end of each reporting date. Re-measurement of the net defined benefit liability (asset) comprise of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset) and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability / (asset)).Re-measurement are recognised in other comprehensive income and will not be reclassified to profit or loss in a subsequent period.

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Mar 31, 2015

A) Basis of Accounting:

The Company maintains its accounts on accrual basis following the historical cost convention and in accordance with generally accepted accounting principles ["GAAP"], including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

b) Use of Estimates:

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS-9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

d) Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

e) Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

f) Fixed Assets:

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred up to and incidental to the installation / acquisition.

g) Depreciation:

Depreciation on Fixed Assets is provided as per Straight Line Method and as per the life provided in Schedule II of the Companies Act, 2013

h) Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

i) Employee Benefits:

i. Post-employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Short term employee benefits and post-employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post-employment and other long-term benefits are charged to the profit and loss account.

j) Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

k) Operating Lease

Rentals are expensed with reference to lease terms and other considerations.

l) Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961 Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

m ) Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

n) Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

o) General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2014

A) Basis of Accounting:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 (to the extent notified) and the Companies Act, 1956 (to the extent applicable).

b) Use of Estimates:

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS-9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

d) Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

e) Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

f) Fixed Assets:

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred up to and incidental to the installation/acquisition.

g) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in Other manner prescribed in Schedule XIV to the Companies Act, 1956.

h) Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

i) Employee Benefits:

i. Post employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Short term employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

j) Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

k) Operating Lease

Rentals are expensed with reference to lease terms and other considerations.

l) Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

m) Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

n) Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

o) General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2013

A) Basis of Accounting:

These accounts are prepared on historical cost basis.

b) Use of Estimates:

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS-9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

d) Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

e) Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

f) Fixed Assets:

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred up to and incidental to the installation/acquisition.

g) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in Other manner prescribed in Schedule XIV to the Companies Act, 1956.

h) Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

i) Employee Benefits:

i. Post employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Short term employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

j) Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

k) Operating Lease

Rentals are expensed with reference to lease terms and other considerations.

I) Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

m) Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

n) Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

o) General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2012

A) Basis of Accounting:

These accounts are prepared on historical cost basis.

b) Use of Estimates:

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

c) Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS- 9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

d) Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

e) Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

f) Fixed Assets:

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred up to and incidental to the installation/acquisition.

g) Depreciation:

Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in Othe manner prescribed in Schedule XIV to the Companies Act, 1956.

h) Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

i) Employee Benefits:

i. Post employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Shortterm employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the profit and loss account.

j) Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

k) Operating Lease

Rentals are expensed with reference to lease terms and other considerations.

I) Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

m) Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

n) Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

o) General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2011

1. Basis of Accounting:

These accounts are prepared on historical cost basis.

2. Use of Estimates:

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS-9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

4. Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

5. Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

6. Fixed Assets:

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred up to and incidental to the installation/acquisition.

7. Depreciation:

Depreciation on Fixed Assets is proved on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

8. Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

9. Employee Benefits:

i. Post employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Short term employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post employment and other long-term benefits are changed to the profit and loss account.

10. Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

11. Operating Lease

Rentals are expensed with reference to lease terms and other considerations.

12. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

13. Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment Loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognized in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

14. Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2010

1. Basis of Accounting:

These accounts are prepared on historical cost basis.

2. Use of Estimates:

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition:

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards (AS-9) on "Revenue Recognition" revenue from interest in case where ultimate collection is uncertain, is recognized in the year in which such interest is recovered.

4. Inventory:

Closing stock of construction material is valued at lower of cost or net realizable value.

5. Project Expenses:

Expenditure directly related to carrying out project activity are debited to the project account.

6. Fixed Assets:

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred up to and incidental to the installation/acquisition.

7. Depreciation:

Depreciation on Fixed Assets is proved on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

8. Investments:

All the Investments are long term and carried at cost. However, provision is made for diminution in the value of investment other than of temporary nature. Current Investments are carried at lower of cost or fair value.

9. Employee Benefits:

i. Post employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

ii. Short term employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

iii. Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

iv. Actuarial gains and losses in respect of post employment and other long-term benefits are changed to the profit and loss account.

10. Borrowing Costs:

Interest related to project is charged to cost of project and other interest is charged to revenue.

11. Operating Lease:

Rentals are expensed with reference to lease terms and other considerations.

12. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the Provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be realised in future.

13. Impairment of fixed assets

At the end of each year, the company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with the Accounting Standard AS-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit & Loss Account in the year in which, an asset is identified as impaired, when the carrying amount value of the asset exceeds its recoverable value. The impairment loss recognised in prior accounting periods reversed, if there has been a change in the estimate of recoverable amount.

14. Provisions, Contingent Liability, Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

15. General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

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Mar 31, 2009

1. Basis of Accounting :

These accounts are prepared on historical cost basis.

2. Use of Estimates :

The preparation of financial statements 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 revenue and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition :

All Income and expenditure are accounted for on accrual basis. In accordance with Accounting Standards(AS- 9) on "Revenue Recognition " revenue from interest in case where ultimate collection is uncertain, is recognised in the year in which such interest is recovered.

4. Interest on Housing Loans :

Repayment of Housing Loans is by way of Equated Monthly Installments (EMIs) comprising of principal and interest. Interest is calculated on the outstanding balance at the beginning of the year. EMIs commence once the entire loan is disbursed.

5. Provisions in respect of Housing Loans :

The Company has adopted the policy to write of specific debts which, in the opinion of the management, based on the available information, are considered fully irrecoverable. Further in respect of housing loans which are identified as Non Performing Assets (NPA), provision is made in respect thereof as per prudential norms prescribed by National Housing Bank.

6. Inventory:

Closing stock of construction material is valued at lower of cost or net realisable value.

7. Project Expense :

Expenditure directly related to carrying out project activity are debited to the project account.

8. Fixed Assets :

Fixed Assets are stated at original cost less depreciation. Original cost includes all expenses incurred upto and incidental to the installation/acquisition.

9. Depreciation:

Depreciation on Fixed Assets is proved on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

10. Investments :

Investments in Shares are long term and are valued at cost.

11. Employee Benefits :

a) Post employment benefits under defined plans are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is deiermined using the market yields of government bonds, at the balance sheet date, at the discounting rate.

b) Short term employee benefits and post employment benefits under defined contribution plans are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

c) Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. Estimated liability on account of long-term benefits is discounted to the current value, using the yield on government bonds, as on the date of balance sheet, at the discounting rate.

d) Actuarial gains and losses in respect of post employment and other long-term benefits are changed to the profit and loss account.

12. Taxation :

Provision for Taxation has been made in accordance with Income Tax laws prevailing for the relevant assessment year.

13. Deferred Taxation :

Deferred tax is recognized if there is virtual certainly that there will be sufficient future taxable income available against which such deffered tax assets can be realized.

14. General:

Accounting Policies not specifically referred to above areconsistent with the generaly accepted accounting practices.