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Accounting Policies of Prajay Engineers Syndicate Ltd. Company
Mar 31, 2025
3. Significant accounting policies
3.1 Revenue recognition
Revenue is recognized when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no
continuing management involvement with the goods and the amount of revenue can be measured reliably.
Revenue is measured at the fair value of the consideration received or receivable, net of taxes and
applicable trade discounts and allowances.
(i) Revenue from sale of land / plots is recognized in the financial year in which the agreement
to sell is executed, at which time all the following conditions are satisfied:
⢠the Company has transferred to the buyer the significant risks and rewards of ownership;
⢠the Company retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the land sold;
⢠the amount of revenue can be measured reliably;
⢠it is probable that the economic benefits associated with the transaction will flow to the
Company; and the costs incurred or to be incurred in respect of the transaction can be
measured reliably.
(ii) Revenue from constructed properties (excluding GST) is recognized on the âpercentage of
completion methodâ. The total sale consideration as per the agreements to sell constructed
properties entered is recognized as revenue only when the stage of completion is 20 percent
or more when the outcome of the project can be estimated reliably. When it is probable that
total costs will exceed the total project revenue the expected loss is recognized immediately.
GST does not form part of gross revenue.
Contract revenue from the construction contracts are recognized on âpercentage of
completion method measured by survey of work performedâ depending on the nature of the
contract. The revenue on construction contract is recognized only when the stage of
completion is 20 percent or more when the outcome of the contract can be estimated reliably.
When it is probable that the total cost exceeds the total contract revenue, the expected loss is
recognized immediately.
(iii) Income from sale of Rooms, Food and Beverages and allied services relating to hotel
operations is recognized upon rendering of the service. Income stated is exclusive of amount
received towards sales tax/ service tax /GST etc.
(iv) In respect of membership (club) sales, revenue is recognized as under:
- Life membership, Permanent membership and Time-share membership over a period of
15 years,
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
Dividend and interest income
Dividend income from investments is recognized when the shareholderâs right to receive payment has
been established.
Interest income from a financial asset is recognized when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued on,
time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is
the rate that exactly discounts estimated future cash receipts through the expected life of the financial
asset to that assetâs net carrying amount on initial recognition.
3.2 Cost of construction
Cost of constructed properties includes cost of land (including land under agreements to purchase),
estimated internal development costs, external development charges, constructions costs and
development/ construction materials, which is charged to the statement of profit and loss based on the
percentage of revenue recognized, in consonance with the concept of matching costs and revenue. Final
adjustment is made on completion of the applicable project.
Cost of Construction Contracts includes estimated construction costs and construction material, which is
charged to the statement of profit and loss based on percentage of revenue recognized measured by survey
of work performed as per accounting policy above, depending on the nature of the contract, in consonance
with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable
project.
Overhead expenses comprising costs other than those directly charged to the jobs are distributed over the
various projects on a pro-rata basis having regard to the activity and nature of such projects.
3.3 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks
and rewards of ownership to the lessee. All other leases are classified as operating leases.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of
relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to
compensate for the lessorâs expected inflationary cost increase, such increases are recognised in the year
in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an
expense in the period in which they are incurred.
3.4 Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other than the companyâs
functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of
the transactions. At the end of each reporting period, monetary items denominated in foreign currencies
are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are
recognised in profit or loss in the period in which they arise.
3.5 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
3.6 Taxation
Income tax expense consists of current and deferred tax. Income tax expense is recognized in the income
statement except to the extent that it relates to items recognized directly in equity, in which case it is
recognized in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognized using the balance sheet method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial
recognition of assets or liabilities in a transaction that is not a business combination and that affects
neither accounting nor taxable profit; differences relating to investments in subsidiaries and jointly
controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and
taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at
the tax rates that are expected to be applied to the temporary differences when they reverse, based on the
laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and
they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax
entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and
liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilized. 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.
3.7 Earnings per share
The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by
the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined
by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of
ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which includes all
stock options granted to employees.
3.8 Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the
acquisition of the asset. The cost of self-constructed assets includes the cost of materials and other costs
directly attributable to bringing the asset to a working condition for its intended use. Borrowing costs that
are directly attributable to the construction or production of a qualifying asset are capitalized as part of the
cost of that asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for
as separate items (major components) of property, plant and equipment.
Gains and losses upon disposal of an item of property, plant and equipment are determined by comparing
the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized
net within âother (income)/expense, netâ in the income statement.
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part will flow to
the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized
in the income statement as incurred.
Items of property, plant and equipment acquired through exchange of non-monetary assets are measured
at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the
asset received or asset given up is not reliably measurable, in which case the asset exchanged is recorded
at the carrying amount of the asset given up.
Depreciation
Depreciation is recognized in the income statement on a straight-line basis over the estimated useful lives
of property, plant and equipment as prescribed in Schedule II to the Companies Act, 2013. Leased assets
are depreciated over the shorter of the lease term and their useful lives. The depreciation expense is
included in the costs of the functions using the asset. Land is not depreciated.
Software for internal use, which is primarily acquired from third-party vendors and which is an integral
part of a tangible asset, is capitalized as part of the related tangible asset. Subsequent costs associated
with maintaining such software are recognized as expense as incurred. The capitalized costs are amortized
over the estimated useful life of the software or the remaining useful life of the tangible fixed asset,
whichever is lower.
3.9 Inventories
Inventories are valued as under:
⢠Land earmarked for property development is valued at cost. Cost includes land acquisition cost,
registration charges and stamp duty.
⢠Constructed properties includes cost of land, premium for development rights, construction costs and
allocated interest and expenses incidental to the projects undertaken by the company.
⢠Stock of food and beverages are carried at cost and net realizable value, whichever is lower. Cost is
determined on the âweighted averageâ method.
3.10 Impairment of non-financial assets
The carrying amounts of the Companyâs non-financial assets, other than inventories and deferred tax
assets are reviewed at each reporting date to determine whether there is any indication of impairment. If
any such indication exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in
use and its fair value less costs to sell. 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 or the cash-generating unit. For the purpose of
impairment testing, assets are grouped together into the smallest group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows of other assets or groups of
assets (the âcash-generating unitâ).
An impairment loss is recognized in the income statement if the estimated recoverable amount of an asset
or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in prior
periods are assessed at each reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the estimates used to determine the
recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount
does not exceed the carrying amount that would have been determined, net of depreciation or
amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount
of an investment in an associate is not recognized separately, and therefore is not tested for impairment
separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single
asset when there is objective evidence that the investment in an associate may be impaired.
An impairment loss in respect of equity accounted investee is measured by comparing the recoverable
amount of investment with its carrying amount. An impairment loss is recognized in the income
statement, and reversed if there has been a favorable change in the estimates used to determine the
recoverable amount.
3.11 Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for
the amount expected to be paid if the Company has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Defined contribution plans
The Companyâs contributions to defined contribution plans are charged to the income statement as and
when the services are received from the employees.
Defined benefit plans
The liability in respect of defined benefit plans and other post-employment benefits is calculated using the
projected unit credit method consistent with the advice of qualified actuaries. The present value of the
defined benefit obligation is determined by discounting the estimated future cash outflows using interest
rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be
paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation.
In countries where there is no deep market in such bonds, the market rates on government bonds are used.
The current service cost of the defined benefit plan, recognized in the income statement in employee
benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in
the current year, benefit changes, curtailments and settlements. Past service costs are recognized
immediately in income. The net interest cost is calculated by applying the discount rate to the net balance
of the defined benefit obligation and the fair value of plan assets. This cost is included in employee
benefit expense in the income statement. Actuarial gains and losses arising from experience adjustments
and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in
the period in which they arise.
Termination benefits
Termination benefits are recognized as an expense when the Company is demonstrably committed,
without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment
before the normal retirement date, or to provide termination benefits as a result of an offer made to
encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an
expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer
will be accepted, and the number of acceptances can be estimated reliably.
Other long-term employee benefits
The Companyâs net obligation in respect of other long term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and previous periods. That
benefit is discounted to determine its present value. Re-measurements are recognized in the statement of
profit and loss in the period in which they arise.
3.12 Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. Where discounting is used,
the increase in the provision due to the passage of time is recognized as a finance cost.
3.13 Contingent liabilities & contingent assets
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 in respect of which the likelihood of outflow of resources is remote, no provision or
disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related
income are recognised in the period in which the change occurs.
3.14 Financial instruments
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, except for trade receivables which are initially measured at transaction price.
Transaction costs that are directly attributable to the acquisition or issues of financial assets and financial
liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.
Subsequent measurement
Non-derivative financial instruments
⢠Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held with a business model
whose objective 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.
⢠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 with a business model whose objective is achieved by 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. Further in cases where the Company had made an irrevocable election based on its
business model, for its investments which are classified as equity instruments, the subsequent
changes in fair value are recognized in other comprehensive income.
⢠Investment in subsidiaries and associates
Investment in subsidiaries and associates are carried at cost in the separate financial statements.
⢠Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method.
For trade and other payables maturing within one year from the Balance Sheet date, the carrying
amounts approximate fair value due to short maturity of these instruments.
4. Fixed Assets: Freehold land and buildings (properties) were carried in the balance sheet prepared in
accordance with Indian GAAP on the basis of carrying cost (cost model) on 31 March 2015. The
company has elected to regard those carrying costs of property as deemed cost at the date of
transition. Accordingly, the Company has not revalued the property at 1 April 2015.
Investments in associates and subsidiaries: The Company has elected to continue with the carrying
value of its investments in subsidiary companies and associate companies as of April 1, 2015
(transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as
of the transition date.
5. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Companyâs accounting policies, which are described in note 3, the management
of the Company are required to make judgements, estimates and assumptions about the carrying amounts
of assets and liabilities that are not readily apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period, or in the period of the revision and future periods if the revision affects both current and future
periods.
The following are the areas of estimation uncertainty and critical judgements that the management has
made in the process of applying the Companyâs accounting policies and that have the most significant
effect on the amounts recognised in the financial statements:
Mar 31, 2024
3. Significant accounting policies
3.1 Revenue recognition
3.2
Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, net of taxes and applicable trade discounts and allowances.
(i) Revenue from sale of land / plots is recognized in the financial year in which the agreement to sell is executed, at which time all the following conditions are satisfied:
⢠the Company has transferred to the buyer the significant risks and rewards of ownership;
⢠the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the land sold;
⢠the amount of revenue can be measured reliably;
⢠it is probable that the economic benefits associated with the transaction will flow to the Company; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
(ii) Revenue from constructed properties (excluding GST) is recognized on the âpercentage of completion methodâ. The total sale consideration as per the agreements to sell constructed properties entered is recognized as revenue only when the stage of completion is 20 percent or more when the outcome of the project can be estimated reliably. When it is probable that total costs will exceed the total project revenue the expected loss is recognized immediately.
GST does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized on âpercentage of completion method measured by survey of work performedâ depending on the nature of the contract. The revenue on construction contract is recognized only when the stage of completion is 20 percent or more when the outcome of the contract can be estimated reliably. When it is probable that the total cost exceeds the total contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services relating to hotel operations is recognized upon rendering of the service. Income stated is exclusive of amount received towards sales tax/ service tax /GST etc.
(v) In respect of membership (club) sales, revenue is recognized as under:
- Life membership, Permanent membership and Time-share membership over a period of 15 years,
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
Dividend and interest income
Dividend income from investments is recognized when the shareholderâs right to receive payment has been established. Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assetâs net carrying amount on initial recognition.
3.3 Cost of construction
Cost of constructed properties includes cost of land (including land under agreements to purchase), estimated internal development costs, external development charges, constructions costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognized, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Cost of Construction Contracts includes estimated construction costs and construction material, which is charged to the statement of profit and loss based on percentage of revenue recognized measured by survey of work performed as per accounting policy above, depending on the nature of the contract, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Overhead expenses comprising costs other than those directly charged to the jobs are distributed over the various projects on a pro-rata basis having regard to the activity and nature of such projects.
3.4 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increase, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
3.5 Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other than the companyâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
3.6 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
3.7 Taxation
3.8
Income tax expense consists of current and deferred tax. Income tax expense is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. 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.
3.9 Earnings per share
The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock options granted to employees.
3.10 Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use. Borrowing costs that are directly attributable to the construction or production of a qualifying asset are capitalized as part of the cost of that asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within âother (income)/expense, netâ in the income statement.
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized in the income statement as incurred.
Items of property, plant and equipment acquired through exchange of non-monetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received or asset given up is not reliably measurable, in which case the asset exchanged is recorded at the carrying amount of the asset given up.
Depreciation
Depreciation is recognized in the income statement on a straight-line basis over the estimated useful lives of property, plant and equipment as prescribed in Schedule II to the Companies Act, 2013. Leased assets are depreciated over the shorter of
the lease term and their useful lives. The depreciation expense is included in the costs of the functions using the asset. Land is not depreciated.
Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, is capitalized as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognized as expense as incurred. The capitalized costs are amortized over the estimated useful life of the software or the remaining useful life of the tangible fixed asset, whichever is lower.
3.11 Inventories
Inventories are valued as under:
⢠Land earmarked for property development is valued at cost. Cost includes land acquisition cost, registration charges and stamp duty.
⢠Constructed properties includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the company.
⢠Stock of food and beverages are carried at cost and net realizable value, whichever is lower. Cost is determined on the âweighted averageâ method.
3.12 Impairment of non-financial assets
The carrying amounts of the Companyâs non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. 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 or the cash-generating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognized in the income statement if the estimated recoverable amount of an asset or its cashgenerating unit is lower than its carrying amount. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired.
An impairment loss in respect of equity accounted investee is measured by comparing the recoverable amount of investment with its carrying amount. An impairment loss is recognized in the income statement, and reversed if there has been a favorable change in the estimates used to determine the recoverable amount.
3.13 Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Defined contribution plans
The Companyâs contributions to defined contribution plans are charged to the income statement as and when the services are received from the employees.
Defined benefit plans
The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method consistent with the advice of qualified actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. The current service cost of the defined benefit plan, recognized in the income statement in employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in the
current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in income. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the income statement. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Termination benefits
Termination benefits are recognized as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.
Other long-term employee benefits
The Companyâs net obligation in respect of other long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value. Re-measurements are recognized in the statement of profit and loss in the period in which they arise.
Mar 31, 2023
1. General information
Prajay Engineers Syndicate Limited (the Company) is a public company domiciled & incorporated under the provisions of the Companies Act, 1956 on April 19, 1994. The Company is engaged primarily in the business of real estate construction, development and maintaining hospitality projects. The shares of the Company are listed on two stock exchanges in India i.e. National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
2. Basis of preparation of standalone financial statements2.1 Statement of compliance
The financial statements for the year ended 31 March 2023 of the Company have been prepared and presented in accordance with the Indian Accounting Standards (âInd ASâ) notified under the Companies (Indian Accounting Standards) Rules 2015 as amended from time to time.
These financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items in the statement of financial position:
⢠certain financial assets and liabilities are measured at fair value;
⢠employee defined benefit assets/(liability) are recognized as the net total of the fair value of plan assets, plus actuarial losses, less actuarial gains and the present value of the defined benefit obligation;
⢠long term borrowings are measured at amortized cost using the effective interest rate method.
The financial statements are presented in Indian rupees, which is the functional currency of our Company. Functional currency of an entity is the currency of the primary economic environment in which the entity operates.
All the assets and liabilities have been classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
Assets:
An asset is classified as current when it satisfies any of the following criteria:
a) it is expected to be realized in, or is intended for sale or consumption in, the Companyâs normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is expected to be realized within twelve months after the reporting date; or
d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.
Liabilities:
A liability is classified as current when it satisfies any of the following criteria:
a) it is expected to be settled in the Companyâs normal operating cycle;
b) it is held primarily for the purpose of being traded;
c) it is due to be settled within twelve months after the reporting date; or
d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current assets/ liabilities include the current portion of non-current assets/ liabilities respectively. All other assets/ liabilities are classified as non-current.
3. Significant accounting policies3.1 Revenue recognition
Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, net of taxes and applicable trade discounts and allowances.
(i) Revenue from sale of land / plots is recognized in the financial year in which the agreement to sell is executed, at which time all the following conditions are satisfied:
⢠the Company has transferred to the buyer the significant risks and rewards of ownership;
⢠the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the land sold;
⢠the amount of revenue can be measured reliably;
⢠it is probable that the economic benefits associated with the transaction will flow to the Company; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
(ii) Revenue from constructed properties (excluding GST) is recognized on the âpercentage of completion methodâ. The total sale consideration as per the agreements to sell constructed properties entered is recognized as revenue only when the stage of completion is 20 percent or more when the outcome of the project can be estimated reliably. When it is probable that total costs will exceed the total project revenue the expected loss is recognized immediately. GST does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized on âpercentage of completion method measured by survey of work performedâ depending on the nature of the contract. The revenue on construction contract is recognized only when the stage of completion is 20 percent or more when the outcome of the contract can be estimated reliably. When it is probable that the total cost exceeds the total contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services relating to hotel operations is recognized upon rendering of the service. Income stated is exclusive of amount received towards sales tax/ service tax /GST etc.
(v) In respect of membership (club) sales, revenue is recognized as under:
- Life membership, Permanent membership and Time-share membership over a period of 15 years,
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
Dividend and interest income
Dividend income from investments is recognized when the shareholderâs right to receive payment has been established.
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assetâs net carrying amount on initial recognition.
Cost of constructed properties includes cost of land (including land under agreements to purchase), estimated internal development costs, external development charges, constructions costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognized, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Cost of Construction Contracts includes estimated construction costs and construction material, which is charged to the statement of profit and loss based on percentage of revenue recognized measured by survey of work performed as per accounting policy above, depending on the nature of the contract, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Overhead expenses comprising costs other than those directly charged to the jobs are distributed over the various projects on a pro-rata basis having regard to the activity and nature of such projects.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increase, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
In preparing the financial statements of the Company, transactions in currencies other than the companyâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
Income tax expense consists of current and deferred tax. Income tax expense is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. 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.
The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock options granted to employees.
3.8 Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use. Borrowing costs that are directly attributable to the construction or production of a qualifying asset are capitalized as part of the cost of that asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within âother (income)/expense, netâ in the income statement.
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized in the income statement as incurred.
Items of property, plant and equipment acquired through exchange of non-monetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received or asset given up is not reliably measurable, in which case the asset exchanged is recorded at the carrying amount of the asset given up.
Depreciation is recognized in the income statement on a straight-line basis over the estimated useful lives of property, plant and equipment as prescribed in Schedule II to the Companies Act, 2013. Leased assets are depreciated over the shorter of the lease term and their useful lives. The depreciation expense is included in the costs of the functions using the asset. Land is not depreciated.
Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, is capitalized as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognized as expense as incurred. The capitalized costs are amortized over the estimated useful life of the software or the remaining useful life of the tangible fixed asset, whichever is lower.
Inventories are valued as under:
⢠Land earmarked for property development is valued at cost. Cost includes land acquisition cost, registration charges and stamp duty.
⢠Constructed properties includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the company.
⢠Stock of food and beverages are carried at cost and net realizable value, whichever is lower. Cost is determined on the âweighted averageâ method.
3.10 Impairment of non-financial assets
The carrying amounts of the Companyâs non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. 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 or the cash-generating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognized in the income statement if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired.
An impairment loss in respect of equity accounted investee is measured by comparing the recoverable amount of investment with its carrying amount. An impairment loss is recognized in the income statement, and reversed if there has been a favorable change in the estimates used to determine the recoverable amount.
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Defined contribution plans
The Companyâs contributions to defined contribution plans are charged to the income statement as and when the services are received from the employees.
Defined benefit plans
The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method consistent with the advice of qualified actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. The current service cost of the defined benefit plan, recognized in the income statement in employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in income. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the income statement. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Termination benefits
Termination benefits are recognized as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.
Other long-term employee benefits
The Companyâs net obligation in respect of other long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value. Re-measurements are recognized in the statement of profit and loss in the period in which they arise.
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
3.13 Contingent liabilities & contingent assets
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 in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.
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, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issues of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.
Subsequent measurement
Non-derivative financial instruments
⢠Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held with a business model whose objective 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.
⢠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 with a business model whose objective is achieved by 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. Further in cases where the Company had made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
⢠Investment in subsidiaries and associates
Investment in subsidiaries and associates are carried at cost in the separate financial statements.
⢠Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to short maturity of these instruments.
4. Fixed Assets: Freehold land and buildings (properties) were carried in the balance sheet prepared in accordance with Indian GAAP on the basis of carrying cost (cost model) on 31 March 2015. The company has elected to regard those carrying costs of property as deemed cost at the date of transition. Accordingly, the Company has not revalued the property at 1 April 2015.
Investments in associates and subsidiaries: The Company has elected to continue with the carrying value of its investments in subsidiary companies and associate companies as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
5. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Companyâs accounting policies, which are described in note 3, the management of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Companyâs accounting policies and that have the most significant effect on the amounts recognised in the financial statements:
Provision and contingent liability
On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.
Management reviews the useful lives of depreciable assets at each reporting. As at March 31, 2023 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year.
Investment in equity instruments of subsidiary and associate companies
During the year, the Company assessed the investment in equity instrument of subsidiary and associate companies carried at cost for impairment testing. These companies are expected to generate positive cash flows in the future years. Detailed analysis has been carried out on the future projections and the Company is confident that the investments do not require any impairment.
Mar 31, 2018
1. Significant accounting policies
1.1 Revenue recognition
Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable, net of taxes and applicable trade discounts and allowances.
(i) Revenue from sale of land / plots is recognized in the financial year in which the agreement to sell is executed, at which time all the following conditions are satisfied:
- the Company has transferred to the buyer the significant risks and rewards of ownership;
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the land sold;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Company; and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
(ii) Revenue from constructed properties (excluding service tax/GST) is recognized on the âpercentage of completion methodâ. The total sale consideration as per the agreements to sell constructed properties entered is recognized as revenue only when the stage of completion is 20 percent or more when the outcome of the project can be estimated reliably. When it is probable that total costs will exceed the total project revenue the expected loss is recognized immediately. Service tax / GST does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized on âpercentage of completion method measured by survey of work performedâ depending on the nature of the contract. The revenue on construction contract is recognized only when the stage of completion is 20 percent or more when the outcome of the contract can be estimated reliably. When it is probable that the total cost exceeds the total contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services relating to hotel operations is recognized upon rendering of the service. Income stated is exclusive of amount received towards sales tax/ service tax /GST etc.
(v) In respect of membership (club) sales, revenue is recognized as under:
- Life membership, Permanent membership and Time-share membership over a period of 15 years.
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
Dividend and interest income
Dividend income from investments is recognized when the shareholderâs right to receive payment has been established.
Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that assetâs net carrying amount on initial recognition.
3.2 Cost of construction
Cost of constructed properties includes cost of land (including land under agreements to purchase), estimated internal development costs, external development charges, constructions costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognized, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Cost of Construction Contracts includes estimated construction costs and construction material, which is charged to the statement of profit and loss based on percentage of revenue recognized measured by survey of work performed as per accounting policy above, depending on the nature of the contract, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Overhead expenses comprising costs other than those directly charged to the jobs are distributed over the various projects on a pro-rata basis having regard to the activity and nature of such projects.
3.3 Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
Rental expense from operating leases is generally recognised on a straight-line basis over the term of relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessorâs expected inflationary cost increase, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.
3.4 Foreign currencies
In preparing the financial statements of the Company, transactions in currencies other than the companyâs functional currency (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognised in profit or loss in the period in which they arise.
3.5 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
3.6 Taxation
Income tax expense consists of current and deferred tax. Income tax expense is recognized in the income statement except to the extent that it relates to items recognized directly in equity, in which case it is recognized in equity.
Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for the following temporary differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit; differences relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will not reverse in the foreseeable future; and taxable temporary differences arising upon the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. 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.
3.7 Earnings per share
The Company presents basic and diluted earnings per share (âEPSâ) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, which includes all stock options granted to employees.
3.8 Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, if any. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self constructed assets includes the cost of materials and other costs directly attributable to bringing the asset to a working condition for its intended use. Borrowing costs that are directly attributable to the construction or production of a qualifying asset are capitalized as part of the cost of that asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses upon disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within âother (income)/expense, netâ in the income statement.
The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs of repairs and maintenance are recognized in the income statement as incurred.
Items of property, plant and equipment acquired through exchange of non-monetary assets are measured at fair value, unless the exchange transaction lacks commercial substance or the fair value of either the asset received or asset given up is not reliably measurable, in which case the asset exchanged is recorded at the carrying amount of the asset given up.
Depreciation
Depreciation is recognized in the income statement on a straight-line basis overthe estimated useful lives of property, plant and equipment as prescribed in Schedule II to the Companies Act, 2013. Leased assets are depreciated over the shorter of the lease term and their useful lives. The depreciation expense is included in the costs of the functions using the asset. Land is not depreciated.
Software for internal use, which is primarily acquired from third-party vendors and which is an integral part of a tangible asset, is capitalized as part of the related tangible asset. Subsequent costs associated with maintaining such software are recognized as expense as incurred. The capitalized costs are amortized over the estimated useful life of the software or the remaining useful life of the tangible fixed asset, whichever is lower.
3.9 Inventories
Inventories are valued as under:
- Land earmarked for property development is valued at cost. Cost includes land acquisition cost, registration charges and stamp duty.
- Constructed properties includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the company.
- Stock of food and beverages are carried at cost and net realizable value, whichever is lower. Cost is determined on the âweighted averageâ method.
3.10 Impairment of non-financial assets
The carrying amounts of the Companyâs non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the assetâs recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit (as defined below) is the greater of its value in use and its fair value less costs to sell. 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 or the cash-generating unit. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the âcash-generating unitâ).
An impairment loss is recognized in the income statement if the estimated recoverable amount of an asset or its cash-generating unit is lower than its carrying amount. Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assetâs carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Goodwill that forms part of the carrying amount of an investment in an associate is not recognized separately, and therefore is not tested for impairment separately. Instead, the entire amount of the investment in an associate is tested for impairment as a single asset when there is objective evidence that the investment in an associate may be impaired.
An impairment loss in respect of equity accounted investee is measured by comparing the recoverable amount of investment with its carrying amount. An impairment loss is recognized in the income statement, and reversed if there has been a favorable change in the estimates used to determine the recoverable amount.
3.11 Employee benefits
Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
Defined contribution plans
The Companyâs contributions to defined contribution plans are charged to the income statement as and when the services are received from the employees.
Defined benefit plans
The liability in respect of defined benefit plans and other post-employment benefits is calculated using the projected unit credit method consistent with the advice of qualified actuaries. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related defined benefit obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used. The current service cost of the defined benefit plan, recognized in the income statement in employee benefit expense, reflects the increase in the defined benefit obligation resulting from employee service in the current year, benefit changes, curtailments and settlements. Past service costs are recognized immediately in income. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the income statement. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Termination benefits
Termination benefits are recognized as an expense when the Company is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the normal retirement date, or to provide termination benefits as a result of an offer made to encourage voluntary redundancy. Termination benefits for voluntary redundancies are recognized as an expense if the Company has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted, and the number of acceptances can be estimated reliably.
Other long-term employee benefits
The Companyâs net obligation in respect of other long term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and previous periods. That benefit is discounted to determine its present value. Re-measurements are recognized in the statement of profit and loss in the period in which they arise.
3.12 Provisions
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.
3.13 Contingent liabilities & contingent assets
A disclosure for a contingent liability is made when there is a possible obligation ora present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.
3.14 Financial instruments
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, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issues of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.
Subsequent measurement
Non-derivative financial instruments
- Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized cost if it is held with a business model whose objective 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.
- 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 with a business model whose objective is achieved by 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. Further in cases where the Company had made an irrevocable election based on its business model, for its investments which are classified as equity instruments, the subsequent changes in fair value are recognized in other comprehensive income.
- Investment in subsidiaries and associates
Investment in subsidiaries and associates are carried at cost in the separate financial statements.
- Financial liabilities
Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to short maturity of these instruments.
4. Fixed Assets: Freehold land and buildings (properties) were carried in the balance sheet prepared in accordance with Indian GAAP on the basis of carrying cost (cost model) on 31 March 2015. The company has elected to regard those carrying costs of property as deemed cost at the date of transition. Accordingly, the Company has not revalued the property at 1 April 2015.
Investments in associates and subsidiaries: The Company has elected to continue with the carrying value of its investments in subsidiary companies and associate companies as of April 1, 2015 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.
5. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Companyâs accounting policies, which are described in note 3, the management of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The following are the areas of estimation uncertainty and critical judgements that the management has made in the process of applying the Companyâs accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Provision and contingent liability
On an ongoing basis, Company reviews pending cases, claims by third parties and other contingencies. For contingent losses that are considered probable, an estimated loss is recorded as an accrual in financial statements. Loss Contingencies that are considered possible are not provided for but disclosed as Contingent liabilities in the financial statements. Contingencies the likelihood of which is remote are not disclosed in the financial statements. Gain contingencies are not recognized until the contingency has been resolved and amounts are received or receivable.
Useful lives of depreciable assets
Management reviews the useful lives of depreciable assets at each reporting. As at March 31, 2018 management assessed that the useful lives represent the expected utility of the assets to the Company. Further, there is no significant change in the useful lives as compared to previous year.
Investment in equity instruments of subsidiary and associate companies
During the year, the Company assessed the investment in equity instrument ofsubsidiary and associate companies carried at cost for impairment testing. These companies are expected to generate positive cash flows in the future years. Detailed analysis has been carried out on the future projections and the Company is confident that the investments do not require any impairment.
Mar 31, 2016
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
a) Method of Accounting
The financial statements are prepared under the historical cost convention in conformity with the Generally Accepted Accounting Principles in India, applicable Accounting Standards specified under section 133 of the companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.
b) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the result of operations during the reporting periods. Although these estimates are based upon managementâs knowledge of current events and actions, actual results could differ from those estimates.
c) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and amortization. Direct costs inclusive of inward freight, duties and taxes, incidental expenses including interest relating to acquisition and cost of improvements thereon are capitalized until fixed assets are ready for use. Capital Work in Progress comprises cost of fixed assets not ready for their intended use at the reporting date of the financial statements.
d) Depreciation and Amortization
Effective 1st April,2014, Depreciation on fixed assets is provided on straight-line method and based on useful life of assets as prescribed in Schedule II to the Companies Act, 2013 as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956
e) Investments
Long term investments are carried at cost, less provision for diminution other than temporary if any, in the value of such investments. Current Investments are carried at lower of cost and fair value.
f) Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for development rights, construction costs and allocated interest and expenses incidental to the projects undertaken by the company.
(iii) Stock of food and beverages are carried at cost and net realizable value, whichever is lower. Cost is determined on the âweighted averageâ method.
g) Revenue Recognition
(i) Sale of Land and Plots is recognized in the financial year in which the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is recognized on the âpercentage of completion methodâ. Total sale consideration as per the agreements to sell constructed properties entered into is recognized as revenue only when the stage of completion is 20 percent or more when the outcome of the project can be estimated reliably. When it is probable that total costs will exceed the total project revenue the expected loss is recognized immediately.
Service tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized on âpercentage of completion method measured by survey of work performedâ depending on the nature of the contract. The revenue on construction contract is recognized only when the stage of completion is 20 percent or more when the outcome of the contract can be estimated reliably. When it is probable that the total cost exceeds the total contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services relating to hotel operations is recognized upon rendering of the service. Income stated is exclusive of amount received towards sales tax/ service tax etc.
(v) In respect of membership (club) sales, revenue is recognized as under:
- Life membership, Permanent membership and Time-share membership over a period of 15 years.
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
h) Cost of Construction
Cost of constructed properties includes cost of land (including land under agreements to purchase), estimated internal development costs, external development charges, constructions costs and development/ construction materials, which is charged to the statement of profit and loss based on the percentage of revenue recognized as per accounting policy (g) above, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Cost of Construction Contracts includes estimated construction costs and construction material, which is charged to the statement of profit and loss based on percentage of revenue recognized measured by survey of work performed as per accounting policy (g) above, depending on the nature of the contract, in consonance with the concept of matching costs and revenue. Final adjustment is made on completion of the applicable project.
Overhead expenses comprising costs other than those directly charged to the jobs are distributed over the various projects on a pro-rata basis having regard to the activity and nature of such projects.
i) Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted for at the exchange rate prevailing on the date of the transaction. All monetary items denominated in foreign currency are converted at the year-end exchange rate. The exchange differences arising on such conversion and on settlement of the transaction are dealt with in the statement of profit and loss.
j) Income Tax
Current tax is determined as the amount of tax payable in respect of taxable income for the period.
Deferred tax is recognized, subject to consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
k) Borrowing Cost
Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalized as part of the cost of such asset. A qualifying asset is one that necessarily takes substantial period of time i.e., more than twelve months to get ready for its intended use. All other borrowing costs are charged to the statement of profit and loss as incurred.
l) Earnings per share (EPS)
In arriving at the EPS, the Companyâs net profit after tax, computed in terms of the accounting principles, generally accepted in India, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period. The EPS thus arrived is known as âBasic EPSâ. To arrive at the diluted EPS the net profit after tax, referred above, is divided by the weighted average number of equity shares that could have been issued on conversion of the shares having potential dilutive effect subject to the terms of issue of those potential shares. The date/s of issue of such potential shares determine the amount of the weighted average number of potential equity shares.
m) Employee Benefits
Liability for employee benefits, both short and long term, for present and past services which are due as per the terms of employment are recorded in accordance with Accounting Standard (AS) 15 âEmployee Benefitsâ.
i) Defined Contribution Plan:
Companyâs contributions paid / payable during the year towards Provident Fund are charged to the statement of Profit and Loss.
ii) Defined Benefit Plan:
The gratuity liability is provided on the basis of actuarial valuation on the Balance Sheet date and the same is funded with Life Insurance Corporation as per their advice.
Rights, preferences and restrictions attached to shares
The Company has one class of equity shares having a par value of ''10 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
Mar 31, 2015
A) Method of Accounting
The financial statements are prepared under the historical cost
convention in conformity with the Generally Accepted Accounting
Principles in India, applicable Accounting Standards specified under
section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013.
b) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements and the result of operations during the
reporting periods. Although these estimates are based upon management's
knowledge of current events and actions, actual results could differ
from those estimates.
c) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
amortisation. Direct costs inclusive of inward freight, duties and
taxes, incidental expenses including interest relating to acquisition
and cost of improvements thereon are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises cost of fixed assets
not ready for their intended use at the reporting date of the financial
statements.
d) Depreciation and Amortisation
Effective 1st April,2014, Depreciation on fixed assets is provided on
straight-line method and based on useful life of assets as prescribed
in Schedule II to the Companies Act, 2013 as against the earlier
practice of depreciating at the rates prescribed in Schedule XIV of the
Companies Act, 1956.
e) Investments
Long term investments are carried at cost, less provision for
diminution other than temporary if any, in the value of such
investments. Current Investments are carried at lower of cost and fair
value.
f) Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost
includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for
development rights, construction costs and allocated interest and
expenses incidental to the projects undertaken by the company.
(iii) Stock of food and beverages are carried at cost and net
realizable value, whichever is lower. Cost is determined on the
"weighted average" method.
g) Revenue Recognition
(i) Sale of Land and Plots is recognized in the financial year in which
the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is
recognized on the "percentage of completion method". Total sale
consideration as per the agreements to sell constructed properties
entered into is recognized as revenue only when the stage of completion
is 20 percent or more when the outcome of the project can be estimated
reliably. When it is probable that total costs will exceed the total
project revenue the expected loss is recognized immediately.
Service tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized
on "percentage of completion method measured by survey of work
performed" depending on the nature of the contract. The revenue on
construction contract is recognized only when the stage of completion
is 20 percent or more when the outcome of the contract can be estimated
reliably. When it is probable that the total cost exceeds the total
contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services
relating to hotel operations is recognized upon rendering of the
service. Income stated is exclusive of amount received towards sales
tax/ service tax etc.
(v) In respect of membership (club) sales, revenue is recognized as
under:
- Life membership, Permanent membership and Time-share membership over
a period of 15 years.
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
h) Cost of Construction
Cost of constructed properties includes cost of land (including land
under agreements to purchase), estimated internal development costs,
external development charges, constructions costs and development/
construction materials, which is charged to the statement of profit and
loss based on the percentage of revenue recognized as per accounting
policy (g) above, in consonance with the concept of matching costs and
revenue. Final adjustment is made on completion of the applicable
project.
Cost of Construction Contracts includes estimated construction costs
and construction material, which is charged to the statement of profit
and loss based on percentage of revenue recognized measured by survey
of work performed as per accounting policy (g) above, depending on the
nature of the contract, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project.
Overhead expenses comprising costs other than those directly charged to
the jobs are distributed over the various projects on a pro-rata basis
having regard to the activity and nature of such projects.
i) Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transaction are dealt with in the
statement of profit and loss.
j) Income Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognized, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
k) Borrowing Cost
Borrowing costs that are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as
part of the cost of such asset. A qualifying asset is one that
necessarily takes substantial period of time i.e., more than twelve
months to get ready for its intended use. All other borrowing costs are
charged to the statement of profit and loss as incurred.
l) Earnings per share (EPS)
In arriving at the EPS, the Company's net profit after tax, computed in
terms of the accounting principles, generally accepted in India, is
divided by the weighted average number of equity shares outstanding on
the last day of the reporting period. The EPS thus arrived is known as
'Basic EPS'. To arrive at the diluted EPS the net profit after tax,
referred above, is divided by the weighted average number of equity
shares that could have been issued on conversion of the shares having
potential dilutive effect subject to the terms of issue of those
potential shares. The date/s of issue of such potential shares
determine the amount of the weighted average number of potential equity
shares.
m) Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment are
recorded in accordance with Accounting Standard (AS) 15 "Employee
Benefits".
i) Defined Contribution Plan:
Company's contributions paid / payable during the year towards
Provident Fund are charged to the statement of Profit and Loss.
ii) Defined Benefit Plan:
The gratuity liability is provided on the basis of actuarial valuation
on the Balance Sheet date and the same is funded with Life Insurance
Corporation as per their advice.
Mar 31, 2014
A) Method of Accounting
The financial statements are prepared under the historical cost
convention in conformity with the accounting principles, generally
accepted in India and in accordance with accounting standards specified
in the Companies (Accounting Standards) Rules, 2006 notified by the
Central Government in terms of Section 211 (3C) of the Companies Act,
1956.
b) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements and the result of operations during the
reporting periods. Although these estimates are based upon management''s
knowledge of current events and actions, actual results could differ
from those estimates.
c) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
amortisation. Direct costs inclusive of inward freight, duties and
taxes, incidental expenses including interest relating to acquisition
and cost of improvements thereon are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises cost of fixed assets
not ready for their intended use at the reporting date of the financial
statements.
d) Depreciation and Amortisation
(i) Depreciation on fixed assets is provided on straight-line method as
per rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956.
(ii) Leasehold Improvement is amortised over the period of the lease.
(iii) Assets costing less than Rs. 5000 are fully depreciated in the
year of purchase.
e) Investments
Long term investments are carried at cost, less provision for
diminution other than temporary if any, in the value of such
investments. Current Investments are carried at lower of cost and fair
value.
f) Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost
includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for
development rights, construction costs and allocated interest and
expenses incidental to the projects undertaken by the company.
(iii) Stock of food and beverages are carried at cost and net
realizable value, whichever is lower. Cost is determined on the
"weighted average" method.
g) Revenue Recognition
(i) Sale of Land and Plots is recognized in the financial year in which
the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is
recognized on the "percentage of completion method". Total sale
consideration as per the agreements to sell constructed properties
entered into is recognized as revenue only when the stage of completion
is 20 percent or more when the outcome of the project can be estimated
reliably. When it is probable that total costs will exceed the total
project revenue the expected loss is recognized immediately.
Service tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized
on "percentage of completion method measured by survey of work
performed" depending on the nature of the contract. The revenue on
construction contract is recognized only when the stage of completion
is 20 percent or more when the outcome of the contract can be estimated
reliably. When it is probable that the total cost exceeds the total
contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services
relating to hotel operations is recognized upon rendering of the
service. Income stated is exclusive of amount received towards sales
tax/ service tax etc.
(v) In respect of membership (club) sales, revenue is recognized as
under:
* Life membership, Permanent membership and Time-share membership over
a period of 15 years.
* Long-term membership over a period of 3 years.
* Health club membership fully in the year of receipt.
h) Cost of Construction
Cost of constructed properties includes cost of land (including land
under agreements to purchase), estimated internal development costs,
external development charges, construction costs and development/
construction materials, which is charged to the statement of profit and
loss based on the percentage of revenue recognized as per accounting
policy (g) above, in consonance with the concept of matching costs and
revenue. Final adjustment is made on completion of the applicable
project.
Cost of Construction Contracts includes estimated construction costs
and construction material, which is charged to the statement of profit
and loss based on percentage of revenue recognized measured by survey
of work performed as per accounting policy (g) above, depending on the
nature of the contract, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project.
Overhead expenses comprising costs other than those directly charged to
the jobs are distributed over the various projects on a pro-rata basis
having regard to the activity and nature of such projects.
i) Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transaction are dealt with in the
statement of profit and loss.
j) Income Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognized, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
k) Borrowing Cost
Borrowing costs that are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as
part of the cost of such asset. A qualifying asset is one that
necessarily takes substantial period of time i.e., more than twelve
months to get ready for its intended use. All other borrowing costs are
charged to the statement of profit and loss as incurred.
l) Earnings per share (EPS)
In arriving at the EPS, the Company''s net profit after tax, computed in
terms of the accounting principles, generally accepted in India, is
divided by the weighted average number of equity shares outstanding on
the last day of the reporting period. The EPS thus arrived is known as
''Basic EPS''. To arrive at the diluted EPS the net profit after tax,
referred above, is divided by the weighted average number of equity
shares that could have been issued on conversion of the shares having
potential dilutive effect subject to the terms of issue of those
potential shares. The date/s of issue of such potential shares
determine the amount of the weighted average number of potential equity
shares.
m) Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment are
recorded in accordance with Accounting Standard (AS) 15 "Employee
Benefits".
i) Defined Contribution Plan:
Company''s contributions paid/payable during the year towards Provident
Fund are charged to the statement of Profit and Loss.
ii) Defined Benefit Plan:
The gratuity liability is provided on the basis of actuarial valuation
on the Balance Sheet date and the same is funded with Life Insurance
Corporation as per their advice.
Mar 31, 2013
A) Method of Accounting
The fi nancial statements are prepared under the historical cost
convention in conformity with the accounting principles, generally
accepted in India and in accordance with accounting standards specifi
ed in the Companies (Accounting Standards) Rules, 2006 notifi ed by the
Central Government in terms of Section 211 (3C) of the Companies Act,
1956.
b) Use of Estimates
The preparation of fi nancial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the fi nancial statements and the result of operations during the
reporting periods. Although these estimates are based upon management''s
knowledge of current events and actions, actual results could differ
from those estimates.
c) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
amortisation. Direct costs inclusive of inward freight, duties and
taxes, incidental expenses including interest relating to acquisition
and cost of improvements thereon are capitalized until fi xed assets
are ready for use. Capital Work in Progress comprises cost of fi xed
assets not ready for their intended use at the reporting date of the fi
nancial statements.
d) Depreciation and Amortisation
(i) Depreciation on fi xed assets is provided on straight-line method
as per rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956. (ii) Leasehold Improvement is amortised over the
period of the lease. (iii) Assets costing less than Rs.5000 are fully
depreciated in the year of purchase.
e) Investments
Long term investments are carried at cost, less provision for
diminution other than temporary if any, in the value of such
investments. Current Investments are carried at lower of cost and fair
value.
f) Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost
includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for
development rights, construction costs and allocated interest and
expenses incidental to the projects undertaken by the company. (iii)
Stock of food and beverages are carried at cost and net realizable
value, whichever is lower. Cost is determined on the "weighted average"
method.
g) Revenue Recognition
(i) Sale of Land and Plots is recognized in the fi nancial year in
which the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is
recognized on the "percentage of completion method". Total sale
consideration as per the agreements to sell constructed properties
entered into is recognized as revenue only when the stage of completion
is 20 percent or more when the outcome of the project can be estimated
reliably. When it is probable that total costs will exceed the total
project revenue the expected loss is recognized immediately. Service
tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized
on "percentage of completion method measured by survey of work
performed" depending on the nature of the contract. The revenue on
construction contract is recognized only when the stage of completion
is 20 percent or more when the outcome of the contract can be estimated
reliably. When it is probable that the total cost exceeds the total
contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services
relating to hotel operations is recognized upon rendering of the
service. Income stated is exclusive of amount received towards sales
tax/ service tax etc.
(v) In respect of membership (club) sales, revenue is recognized as
under:
- Life membership, Permanent membership and Time-share membership over
a period of 15 years.
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
h) Cost of Construction
Cost of constructed properties includes cost of land (including land
under agreements to purchase), estimated internal development costs,
external development charges, constructions costs and development/
construction materials, which is charged to the statement of profi t
and loss based on the percentage of revenue recognized as per
accounting policy (g) above, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project. Cost of Construction Contracts includes estimated
construction costs and construction material, which is charged to the
statement of profi t and loss based on percentage of revenue recognized
measured by survey of work performed as per accounting policy (g)
above, depending on the nature of the contract, in consonance with the
concept of matching costs and revenue. Final adjustment is made on
completion of the applicable project. Overhead expenses comprising
costs other than those directly charged to the jobs are distributed
over the various projects on a pro-rata basis having regard to the
activity and nature of such projects.
i) Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transaction are dealt with in the
statement of profi t and loss.
j) Income Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
consideration of prudence, on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
k) Borrowing Cost
Borrowing costs that are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as
part of the cost of such asset. A qualifying asset is one that
necessarily takes substantial period of time i.e., more than twelve
months to get ready for its intended use. All other borrowing costs are
charged to the statement of profi t and loss as incurred.
l) Earnings per share (EPS)
In arriving at the EPS, the Company''s net profi t after tax, computed
in terms of the accounting principles, generally accepted in India, is
divided by the weighted average number of equity shares outstanding on
the last day of the reporting period. The EPS thus arrived is known as
''Basic EPS''. To arrive at the diluted EPS the net profi t after tax,
referred above, is divided by the weighted average number of equity
shares that could have been issued on conversion of the shares having
potential dilutive effect subject to the terms of issue of those
potential shares. The date/s of issue of such potential shares
determine the amount of the weighted average number of potential equity
shares.
m) Employee Benefi ts
Liability for employee benefi ts, both short and long term, for present
and past services which are due as per the terms of employment are
recorded in accordance with Accounting Standard (AS) 15 "Employee
Benefi ts".
i) Defi ned Contribution Plan:
Company''s contributions paid / payable during the year towards
Provident Fund are charged to the statement of Profi t and Loss.
ii) Defi ned Benefi t Plan:
The gratuity liability is provided on the basis of actuarial valuation
on the Balance Sheet date and the same is funded with Life Insurance
Corporation as per their advice.
Mar 31, 2012
A. Method of Accounting
The financial statements are prepared under the historical cost
convention in conformity with the accounting principles, generally
accepted in India and in accordance with accounting standards specified
in the Companies (Accounting Standards) Rules, 2006 notified by the
Central Government in terms of Section 211 (3C) of the Companies Act,
1956.
b. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements and the result of operations during the
reporting periods. Although these estimates are based upon
management's knowledge of current events and actions, actual results
could differ from those estimates.
c. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
amortisation. Direct costs inclusive of inward freight, duties and
taxes, incidental expenses including interest relating to acquisition
and cost of improvements thereon are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises cost of fixed assets
not ready for their intended use at the reporting date of the financial
statements.
d. Depreciation and Amortisation
(i) Depreciation on fixed assets is provided on straight-line method as
per rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956.
(ii) Leasehold Improvement is amortised over the period of the lease.
(iii) Assets costing less than Rs.5000 are fully depreciated in the
year of purchase.
e. Investments
Long term investments are carried at cost, less provision for
diminution other than temporary if any, in the value of such
investments. Current Investments are carried at lower of cost and fair
value.
f. Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost
includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for
development rights, construction costs and allocated interest and
expenses incidental to the projects undertaken by the company.
(iii) Stock of food and beverages are carried at cost and net
realizable value, whichever is lower. Cost is determined on the
"weighted average" method.
g. Revenue Recognition
(i) Sale of Land and Plots is recognised in the financial year in which
the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is
recognized on the "percentage of completion method". Total sale
consideration as per the agreements to sell constructed properties
entered into is recognized as revenue only when the stage of completion
is 20 percent or more when the outcome of the project can be estimated
reliably. When it is probable that total costs will exceed the total
project revenue the expected loss is recognised immediately.
Service tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized
on " percentage of completion method measured by survey of work
performed " depending on the nature of the contract. The revenue on
construction contract is recognized only when the stage of completion
is 20 percent or more when the outcome of the contract can be estimated
reliably. When it is probable that the total costs exceeds the total
contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services
relating to hotel operations is recognized upon rendering of the
service. Income stated is exclusive of amount received towards sales
tax/ service tax etc.
(v) In respect of membership (club) sales, revenue is recognized as
under:
- Life membership, Permanent membership and Time-share membership over
a period of15 years.
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
h. Cost of Construction
Cost of constructed properties includes cost of land (including land
under agreements to purchase), estimated internal development costs,
external development charges, constructions costs and development/
construction materials, which is charged to the profit and loss account
based on the percentage of revenue recognized as per accounting policy
(g) above, in consonance with the concept of matching costs and
revenue. Final adjustment is made on completion of the applicable
project.
Cost of Construction Contracts includes estimated construction costs
and construction material, which is charged to the profit and loss
account based on percentage of revenue recognized measured by survey of
work performed as per accounting policy (g) above, depending on the
nature of the contract, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project.
Overhead expenses comprising costs other than those directly charged to
the jobs are distributed over the various projects on a pro-rata basis
having regard to the activity and nature of such projects.
i. Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transaction are dealt with in the
profit and loss account.
j. Income Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognised, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
k. Borrowing Cost
Borrowing costs that are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as
part of the cost of such asset. A qualifying asset is one that
necessarily takes substantial period of time i.e., more than twelve
months to get ready for its intended use. All other borrowing costs are
charged to the profit and loss account as incurred.
I. Earnings per share (EPS)
In arriving at the EPS, the Company's net profit after tax, computed
in terms of the accounting principles, generally accepted in India, is
divided by the weighted average number of equity shares outstanding on
the last day of the reporting period. The EPS thus arrived is known as
'Basic EPS'. To arrive at the diluted EPS the net profit after tax,
referred above, is divided by the weighted average number of equity
shares that could have been issued on conversion of the shares having
potential dilutive effect subject to the terms of issue of those
potential shares. The date/s of issue of such potential shares
determine the amount of the weighted average number of potential equity
shares.
m. EmpIoyee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment are
recorded in accordance with Accounting Standard (AS) 15 "Employee
Benefits".
(i) Defined Contribution Plan:
Company's contributions paid / payable during the year towards
Provident Fund are charged to the Profit and Loss Account.
(ii) Defined Benefit Plan:
The gratuity liability is provided on the basis of actuarial valuation
on the Balance Sheet date and the same is funded with Life Insurance
Corporation as per their advice.
Mar 31, 2011
1. Method of Accounting
The financial statements are prepared under the historical cost
convention in conformity with the accounting principles, generally
accepted in India and in accordance with accounting standards specified
in the Companies (Accounting Standards) Rules, 2006 notified by the
Central Government in terms of Section 211 (3C) of the Companies Act,
1956.
2. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements and the result of operations during the
reporting periods. Although these estimates are based upon management's
knowledge of current events and actions, actual results could differ
from those estimates.
3. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
amortisation. Direct costs inclusive of inward freight, duties and
taxes, incidental expenses including interest relating to acquisition
and cost of improvements thereon are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises advances paid to
acquire fixed assets and the cost of fixed assets not ready for their
intended use at the reporting date of the financial statements.
4. Depreciation and Amortisation
(i) Depreciation on fixed assets is provided on straight-line method as
per rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956.
(ii) Leasehold Improvement is amortised over the period of the lease.
(iii) Assets costing less than Rs.5000 are fully depreciated in the
year of purchase.
5. Investments
Long term investments are carried at cost, less provision for
diminution other than temporary if any, in the value of such
investments. Current Investments are carried at lower of cost and fair
value.
6. Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost
includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for
development rights, construction costs and allocated interest and
expenses incidental to the projects undertaken by the company.
(iii) Stock of food and beverages are carried at cost and net
realizable value, whichever is lower. Cost is determined on the
"weighted average" method.
7. Revenue Recognition
(i) Sale of Land and Plots is recognised in the financial year in which
the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is
recognized on the "percentage of completion method". Total sale
consideration as per the agreements to sell constructed properties
entered into is recognized as revenue only when the stage of completion
is 20 percent or more when the outcome of the project can be estimated
reliably. When it is probable that total costs will exceed the total
project revenue the expected loss is recognised immediately.
Service tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized
on " percentage of completion method measured by survey of work
performed " depending on the nature of the contract. The revenue on
construction contract is recognized only when the stage of completion
is 20 percent or more when the outcome of the contract can be estimated
reliably. When it is probable that the total costs exceeds the total
contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services
relating to hotel operations is recognized upon rendering of the
service. Income stated is exclusive of amount received towards sales
tax/service tax etc.
(v) In respect of membership (club) sales, revenue is recognized as
under:
- Life membership, Permanent membership and Time-share membership over
a period of 15 years.
- Long-term membership over a period of 3 years.
- Health club membership fully in the year of receipt.
8. Cost of Construction
Cost of constructed properties includes cost of land (including land
under agreements to purchase), estimated internal development costs,
external development charges, constructions costs and development/
construction materials, which is charged to the profit and loss account
based on the percentage of revenue recognized as per accounting policy
(7) above, in consonance with the concept of matching costs and
revenue. Final adjustment is made on completion of the applicable
project.
Cost of Construction Contracts includes estimated construction costs
and construction material, which is charged to the profit and loss
account based on percentage of revenue recognized measured by survey of
work performed as per accounting policy (7) above, depending on the
nature of the contract, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project.
Overhead expenses comprising costs other than those directly charged to
the jobs are distributed over the various projects on a pro-rata basis
having regard to the activity and nature of such projects.
9. Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transaction are dealt with in the
profit and loss account.
10. Income Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognised, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
11. Borrowing Cost
Borrowing costs that are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as
part of the cost of such asset. A qualifying asset is one that
necessarily takes substantial period of time i.e., more than twelve
months to get ready for its intended use. All other borrowing costs are
charged to the profit and loss account as incurred.
12. Earnings per share (EPS)
In arriving at the EPS, the Company's net profit after tax, computed in
terms of the accounting principles, generally accepted in India, is
divided by the weighted average number of equity shares outstanding on
the last day of the reporting period. The EPS thus arrived is known as
"Basic EPS". To arrive at the diluted EPS the net profit after tax,
referred above, is divided by the weighted average number of equity
shares that could have been issued on conversion of the shares having
potential dilutive effect subject to the terms of issue of those
potential shares. The date/s of issue of such potential shares
determine the amount of the weighted average number of potential equity
shares.
13. Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment are
recorded in accordance with Accounting Standard (AS) 15 "Employee
Benefits".
(i) Defined Contribution Plan:
Company's contributions paid / payable during the year towards
Provident Fund are charged to the Profit and Loss Account.
(ii) Defined Benefit Plan:
The gratuity liability is provided on the basis of actuarial valuation
on the Balance Sheet date and the same is funded with Life Insurance
Corporation as per their advice.
Mar 31, 2010
1. Method of Accounting
The financial statements are prepared under the historical cost
convention in conformity with the accounting principles, generally
accepted in India and in accordance with accounting standards specified
in the Companies (Accounting Standards) Rules, 2006 notified by the
Central Government in terms of Section 211 (3C) of the Companies Act,
1956.
2. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent liabilities on the date of
the financial statements and the/esult of operations
dujing^he/epjjrtingL periods. Although these estimates are based upon
managements knowledge of current events and actions, actual results
could differ from those estimates.
3. Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation and
amortisation. Direct costs inclusive of inward freight, duties and
taxes, incidental expenses including interest relating to acquisition
and cost of improvements thereon are capitalized until fixed assets are
ready for use. Capital Work in Progress comprises advances paid to
acquire fixed assets jand the cost of fixed assets not ready for their
intended use at the reporting date of the financial statements.
4. Depreciation and Amortisation
(i) Depreciation on fixed assets is provided on straight-line method as
per rates and in the manner prescribed in
Schedule XIV to the Companies Act, 1956. (ii) Leasehold Improvement is
amortised overthe period of the lease. (iii) Assets costing less than
Rs.5000 are fully depreciated in the year of purchase.
5. Investments
Long term investments are carried at cost, less provision for
diminution other than temporary if any, in the value of such
investments. Current Investments are carried at lower of cost and fair
value.
6. Inventories
Inventories are valued as under:
(i) Land earmarked for property development is valued at cost. Cost
includes land acquisition cost, registration charges and stamp duty.
(ii) Constructed properties includes cost of land, premium for
development rights, construction costs and allocated interest and
expenses incidental to the projects undertaken by the company.
(iii) Stock of food and beverages are carried at cost and net
realizable value, whichever is lower. Cost is determined on the
"weighted average" method.
7. Revenue Recognition
(i) Sale of Land and Plots is recognised in the financial year in which
the agreement to sell is executed.
(ii) Revenue from constructed properties (excluding service tax) is
recognized on the "percentage of completion method". Total sale
consideration as per the agreements to sell constructed properties
entered into is recognized as revenue only when the stage of completion
is 20 percent or more when the outcome of the project can be estimated
reliably. When it is probable that total costs will exceed the total
project revenue the expected loss is recognised immediately. Service
tax does not form part of gross revenue.
(iii) Contract revenue from the construction contracts are recognized
on " percentage of completion method measured by survey of work
performed" depending on the nature of the contract. The revenue on
construction contract is recognized only when the stage of completion
is 20 percent or more when the outcome of the contract can be estimated
reliably. Whenjt is probable that the total costs exceeds the total
contract revenue, the expected loss is recognized immediately.
(iv) Income from sale of Rooms, Food and Beverages and allied services
relating to hotel operations is recognized upon rendering of the
service. Income stated is exclusive of amount received towards sales
tax/ service tax etc.,
(v) in respect of membership (club) sales, revenue is recognized as
under:
Life membership, Permanent membership and Time-share membership over a
period of 15 years. Long-term membership over a period of 3 years.
Health club membership fully in the year of receipt.
8. Cost of Construction
Cost of constructed[properties includes cost of land (including internal
development costs, external development charges, constructions costs
and development/ construction materials, which is charged to the profit
and loss accourt based on the percentage of revenue recognized as per
accounting policy (7) above, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project.
Cost of Construction Contracts includes estimated construction costs
and construction materials, which is charged to the profit and loss
account based on percentage of revenue recognized measured by survey of
work performed as per accounting policy (7) above, depending on the
nature of the contract, in consonance with the concept of matching
costs and revenue. Final adjustment is made on completion of the
applicable project.
Overhead expenses comprising costs other than those directly charged to
the jobs are distributed over the various projects on a pro-rata basis
having regard to the activity and nature of such projects.
9. Foreign Exchange Transactions
Transactions in foreign currency and non monetary assets are accounted
for at the exchange rate prevailing on the date of the transaction. All
monetary items denominated in foreign currency are converted at the
year-end exchange rate. The exchange differences arising on such
conversion and on settlement of the transaction are dealt with in the
profit and loss account.
10. Income Tax
Current tax is determined as the amount of tax payable in respect of
taxable income for the period.
Deferred tax is recognised, subject to consideration of prudence, on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
11. Borrowing Cost
Borrowing costs that are directly attributable to acquisition,
construction or production of a qualifying asset are capitalised as
part of the cost of such asset. A qualifying asset is one that
necessarily takes substantial period of time i.e., more than twelve
months to get ready for its intended use. All other borrowing costs are
charged to the profit and loss account as incurred.
12. Earnings per share (EPS)
In arriving at the EPS, the Companys net profit after tax, computed in
terms of the accounting principles, generally accepted in India, is
divided by the weighted average number of equity shares outstanding on
the last day of the reporting period. The EPS thus arrived is known as
Basic EPS. To arrive at the diluted EPS the net profit after tax,
referred above, is divided by the weighted average number of equity
shares that could have been issued on conversion of the shares having
potential dilutive effect subject to the terms of issue of those
potential shares. The date/s of issue of such potential shares
determine the amount of the weighted average number of potential equity
shares.
13. Employee Benefits
Liability for employee benefits, both short and long term, for present
and past services which are due as per the terms of employment are
recorded in accordance with Accounting Standard (AS) 15 "Employee
Benefits".
(i)Defined Contribution Plan:
Companys contributions paid / payable during the year towards
Provident Fund are charged to the Profit and Loss Account.
(ii) Defined Benefit Plan:
The gratuity liability is provided on the basjs of actuarial valuation
on the Balance Sheet date and the same is funded With Life Insurance
Corporation as: per their advice.
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