Accounting Policies of Skyline Millars Ltd. Company

Mar 31, 2025

1. Material accounting policies

1.1. Basis of Preparation and Presentation

The financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'')
notified under section 133 of the Companies Act, 2013, read together with the Companies (Indian Accounting
Standards) Rules, 2015 (as amended).

The financial statements have been prepared and presented under historical convention, on the accrual basis
of accounting except for certain financial instruments that are measured at fair values at the end of each
reporting period, as explained in the accounting policies below.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating
cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the
nature of products and the time between acquisition of assets for processing and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or
non-current classification of assets and liabilities.

The preparation of the Company''s Financial Statements requires the management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and
the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.

1.2. Summary of Material accounting policies
Revenue Recognition

The Company has applied five step model as set out in Ind AS 115 to recognise revenue in this financial
statement. The specific revenue recognition criteria are described below:

( I) Income from Property Development:- Revenue is recognised on satisfaction of performance obligation
upon transfer of control of promised goods (residential units) or services to customers in an amount that reflects
the consideration the Company expects to receive in exchange for those goods or services. The Company
satisfies the performance obligation and recognises revenue over time, if one of the following criteria is met:

The customer simultaneously receives and consumes the benefits provided by the Company''s performance as
the Company performs; or

The Company''s performance creates or enhances an asset that the customer controls as the asset is created or
enhanced; or

The Company''s performance does not create an asset with an alternative use to the Company and an entity
has an enforceable right to payment for performance completed to date.

For performance obligations where any one of the above conditions are not met, revenue is recognised at the
point in time at which the performance obligation is satisfied. Revenue is recognised either at point of time or
over a period of time based on the conditions in the contracts with customers. The Company determines the
performance obligations associated with the contract with customers at contract inception and also determine
whether they satisfy the performance obligation over time or at a point in time.

The Company recognises revenue for performance obligation satisfied over time only if it can reasonably
measure its progress towards complete satisfaction of the performance obligation.

The Company uses cost based input method for measuring progress for performance obligation satisfied over
time. Under this method, the Company recognises revenue in proportion to the actual project cost incurred as
against the total estimated project cost.

I n respect of contract with customers which do not meet the criteria to recognise revenue over a period of
time, revenue is recognized at point in time with respect to such contracts for sale of residential units as and
when the control is passed on to the customers which is linked to the application and receipt of occupancy
certificate.

Revenue is recognized net of discounts, rebates, credits, price concessions, incentives, etc. if any.

Sale of products:

Revenue from sale of products is recognized when the control on the goods have been transferred to the
customer. The performance obligation in case of sale of product is satisfied at a point in time i.e., when the
material is shipped to the customer or on delivery to the customer, as may be specified in the contract.

Rendering of services:

Revenue from services is recognized over time by measuring progress towards satisfaction of performance
obligation for the services rendered.

Real Estate:

The revenue recognition of Real estate property under development requires forecasts to be made of total
budgeted costs with the outcomes of underlying construction contracts, which further require assessments and
judgements to be made on changes in work scopes and other payments to the extent they are probable and
they are capable of being reliably measured. However, where the total project cost is estimated to exceed total
revenues from the project, the loss is recognized immediately in the Statement of Profit and Loss.

Contract Balances

a. Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer.
If the Company performs by transferring goods or services to a customer before the customer pays
consideration or before payment is due, a contract asset is recognised for the earned consideration that
is conditional.

b. Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is
recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognised as revenue when the Company performs under the contract.

b) Borrowing costs

Borrowing costs, if any, directly attributable to 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. All other borrowing costs are recognised in profit or loss in the
period in which they are incurred.

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange differences arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost

c) Employee benefits

Post-Employment Benefits:

1. Defined Contribution plans:

The Company pays provident fund contributions to publicly administered provident funds as per
local regulations. The Company has no further payment obligations once the contributions have been
paid. The contributions are accounted for as defined contribution plans and the contributions are
recognised as employee benefit expense when they are due. Prepaid contributions are recognised
as an asset to the extent that a cash refund or a reduction in the future payments is available.

2. Defined Benefit plans - Gratuity:

The liability is recognised in the balance sheet in respect of defined benefit gratuity plans is the
present value of the defined benefit obligation at the end of the reporting period less the fair value
of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected
unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on government
bonds that have terms approximating to the terms of the related obligation

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 statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised at amount net of taxes in the period in which they occur, directly in
other comprehensive income. They are included in retained earnings in the statement of changes in
equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in statement of profit and loss as past service cost

Other Long Term Employee Benefits:

Liability in respect of compensated absences becoming due or expected to be availed more than
one year after the balance sheet date is estimated on the basis of an actuarial valuation performed
by an independent actuary using the projected unit credit method. Actuarial gains and losses arising
from past experience

Short-term employee benefits

A liability is recognised for benefits accruing to employees in respect of salaries, wages, performance
incentives, medical benefits and other short term benefits in the period the related service is
rendered, at the undiscounted amount of the benefits expected to be paid in exchange for that
service.

d) Income Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in
respect of current tax and deferred tax.

Current tax

Current tax is determined on taxable profits for the year chargeable to tax in accordance with the
applicable tax rates and the provisions of the Income Tax Act, 1961 including other applicable tax laws
that have been enacted or substantively enacted.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities
in the financial statements and the corresponding tax bases used in the computation of taxable profit.
Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets
are generally recognised for all deductible temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible temporary differences can be utilised.
Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.

Deferred tax asset is recognised for the carry forward of unused tax losses and unused tax credits to the
extent that it is probable that future taxable profit will be available against which the unused tax losses
and unused tax credits can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part

of the asset to be recovered.

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

Measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
the manner in which the Company expects, at the end of the reporting period, to recover or settle the
carrying amount of its assets and liabilities.

e) Property, plant and equipment

An item of property, plant and equipment that qualifies as an asset is measured on initial recognition
at cost. Following initial recognition, items of property, plant and equipment are carried at its cost less
accumulated depreciation and accumulated impairment losses.

The cost of an item of property, plant and equipment comprises of its purchase price including import
duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing the asset
to its working condition for its intended use and the initial estimate of decommissioning, restoration and
similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase price.
Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met.

Depreciation on each part of an item of property, plant and equipment is provided using the Straight Line
Method based on the useful life of the asset mentioned below:

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal
or retirement of an item of property, plant and equipment is determined as the difference between the
sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

f) Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable
to the assets will flow to the Company and the cost of the asset can be measured reliably.

Intangible assets are amortised over the useful economic life and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.

De-recognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected
from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the
difference between the net disposal proceeds and the carrying amount of the asset, is recognised in profit
or loss when the asset is derecognised.

g) Impairment

At the end of each reporting period, the Company determines whether there is any indication that its
tangible and intangible assets have suffered an impairment loss with reference to their carrying amounts.
If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment
is recognised, if the carrying amount exceeds the recoverable amount. Recoverable amount is higher of
the fair value less costs of disposal and value in use. 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 for which the estimates of future
cash flows have not been adjusted.

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and
consistent basis of allocation can be identified, corporate assets are also allocated to individual cash¬
generating units, or otherwise they are allocated to the smallest group of cash-generating units for which
a reasonable and consistent allocation basis can be identified.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating
unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying
amount does not exceed the carrying amount that would have been determined had no impairment loss
been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is
recognised immediately in profit or loss.

h) Leases

Ind AS 116 requires lessee to recognise a liability to make lease payments and an asset representing the
right to use asset during the lease term for all leases except for short term leases and leases of low-value
assets, if they choose to apply such exemptions.

At the commencement date, Company recognise a right-of use asset measured at cost and a lease liability
measured at the present value of the lease payments that are not paid at that date. The lease payments
shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined. If
that rate cannot be readily determined, the lessee shall use the lessee''s incremental borrowing rate

The cost of the right-of-use asset comprised of, the amount of the initial measurement of the lease liability,
any lease payments made at or before the commencement date, less any lease incentives received, any
initial direct costs incurred by the lessee

At the commencement date, the lease payments included in the measurement of the lease liability
comprise (a) fixed payments less any lease incentives receivable; (b) variable lease payments that depend
on an index or a rate, initially measured using the index or rate as at the commencement date (c)
amounts expected to be payable by the lessee under residual value guarantees;(d) the exercise price of
a purchase option if the lessee is reasonably certain to exercise that option and (e) payments of penalties
for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

Depreciation on Right to use asset and impairment losses if any recognised in statement of profit and Loss
on a straight line basis over the period of lease and separately recognises interest on lease liability as a
component of finance cost in statement of profit and Loss.

On transition date, company measured the lease liability at the present value of the remaining lease
payments, discounted using the lessee''s incremental borrowing rate at the date of initial application
and measured the right to use asset as its carrying amount as if the Standard had been applied since the
commencement date, but discounted using the lessee''s incremental borrowing rate at the date of initial
Application. Company had recognised the cumulative effect of initially applying this Standard as an
adjustment to the opening balance of retained earnings.

i) Inventory

Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components,
consumables and stock in trade are carried at the lower of cost and net realizable value. However,
materials and other items held for use in production of inventories are not written down below cost
if the finished goods in which they will be incorporated are expected to be sold at or above cost. The
comparison of cost and net realizable value is made on an item-by item basis.

I n determining the cost of raw materials, packing materials, stock-in-trade, stores, spares, components
and consumables, First in First Out cost method is used. Cost of inventory comprises all costs of purchase,
duties, taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred
in bringing the inventory to their present location and condition.

Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, an
appropriate share of fixed and variable production overheads as applicable and other costs incurred in
bringing the inventories to their present location and condition. Fixed production overheads are allocated
on the basis of normal capacity of production facilities

Realty Division :

Work in progress is valued at cost consisting of land, land development construction, infrastructure,
finance cost of funds earmarked to the project and other cost directly attributable to the project or net
realisable value.

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Mar 31, 2024

1. Significant accounting policies

1.1. Basis of Preparation and Presentation

The financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') notified under section 133 of the Companies Act, 2013, read together with the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

The financial statements have been prepared and presented under historical convention, on the accrual basis of accounting except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The preparation of the Company''s Financial Statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

1.2. Summary of Significant accounting policies

a) Revenue recognition

The Company derives revenues primarily from sale of manufactured goods, traded goods and related services. The Company is also engaged in real estate property development.

Effective 01 April 2018, the Company has adopted Indian Accounting Standard 115 (Ind AS 115) -''Revenue from contracts with customers'' using the cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e. 01 April 2018. Accordingly, the comparative amounts of revenue and the corresponding contract assets / liabilities have not been retrospectively adjusted. The effect on adoption of Ind-AS 115 was insignificant.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

Sale of products:

Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The performance obligation in case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer, as may be specified in the contract.

Rendering of services:

Revenue from services is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered.

Real Estate:

The revenue recognition of Real estate property under development requires forecasts to be made of total budgeted costs with the outcomes of underlying construction contracts, which further require assessments and judgements to be made on changes in work scopes and other payments to the extent they are probable and they are capable of being reliably measured. However, where the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately in the Statement of Profit and Loss.

Contract Balances

a. Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

b. Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

b) Borrowing costs

Borrowing costs, if any, directly attributable to 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. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost

c) Employee benefits

Post-Employment Benefits:

1. Defined Contribution plans:

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

2. Defined Benefit plans - Gratuity:

The liability is recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation

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 statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised at amount net of taxes in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in statement of profit and loss as past service cost

Other Long Term Employee Benefits:

Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of proit and loss in the year in which such gains or losses are determined.

Short-term employee benefits

A liability is recognised for benefits accruing to employees in respect of salaries, wages, performance incentives, medical benefits and other short term benefits in the period the related service is rendered, at the undiscounted amount of the benefits expected to be paid in exchange for that service.

d) Income Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current tax

Current tax is determined on taxable profits for the year chargeable to tax in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 including other applicable tax laws that have been enacted or substantively enacted.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax asset is recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part

of the asset to be recovered.

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

Measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

e) Property, plant and equipment

An item of property, plant and equipment that qualifies as an asset is measured on initial recognition at cost. Following initial recognition, items of property, plant and equipment are carried at its cost less accumulated depreciation and accumulated impairment losses.

The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met.

Depreciation on each part of an item of property, plant and equipment is provided using the Straight Line Method based on the useful life of the asset mentioned below:

Estimated useful lives of the assets are as follows:

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

f) Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably.

Intangible assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

De-recognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in profit or loss when the asset is derecognised.

Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

g) Impairment

At the end of each reporting period, the Company determines whether there is any indication that its tangible and intangible assets have suffered an impairment loss with reference to their carrying amounts. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment

is recognised, if the carrying amount exceeds the recoverable amount. Recoverable amount is higher of the fair value less costs of disposal and value in use. 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 for which the estimates of future cash flows have not been adjusted.

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

h) Leases

Ind AS 116 requires lessee to recognise a liability to make lease payments and an asset representing the right to use asset during the lease term for all leases except for short term leases and leases of low-value assets, if they choose to apply such exemptions.

At the commencement date, Company recognise a right-of use asset measured at cost and a lease liability measured at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee shall use the lessee''s incremental borrowing rate

The cost of the right-of-use asset comprised of, the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs incurred by the lessee

At the commencement date, the lease payments included in the measurement of the lease liability comprise (a) fixed payments less any lease incentives receivable; (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date (c) amounts expected to be payable by the lessee under residual value guarantees;(d) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option and (e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

Depreciation on Right to use asset and impairment losses if any recognised in statement of profit and Loss on a straight line basis over the period of lease and separately recognises interest on lease liability as a component of finance cost in statement of profit and Loss.

On transition date, company measured the lease liability at the present value of the remaining lease payments, discounted using the lessee''s incremental borrowing rate at the date of initial application and measured the right to use asset as its carrying amount as if the Standard had been applied since the commencement date, but discounted using the lessee''s incremental borrowing rate at the date of initial

Application. Company had recognised the cumulative effect of initially applying this Standard as an adjustment to the opening balance of retained earnings.

The company has no material impact on adoption of Ind AS 116 as at March 31,2021.

i) Inventory

Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components, consumables and stock in trade are carried at the lower of cost and net realizable value. However, materials and other items held for use in production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost. The comparison of cost and net realizable value is made on an item-by item basis.

I n determining the cost of raw materials, packing materials, stock-in-trade, stores, spares, components and consumables, First in First Out cost method is used. Cost of inventory comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present location and condition.

Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, an appropriate share of fixed and variable production overheads, excise duty as applicable and other costs incurred in bringing the inventories to their present location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities

Realty Division :

Work in progress is valued at cost consisting of land, land development construction, infrastructure, finance cost of funds earmarked to the project and other cost directly attributable to the project or net realisable value.

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Mar 31, 2023

1. Significant accounting policies

1.1. Basis of Preparation and Presentation

The financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') notified under section 133 of the Companies Act, 2013, read together with the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

The financial statements have been prepared and presented under historical convention, on the accrual basis of accounting except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in the accounting policies below.

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The preparation of the Company''s Financial Statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

1.2. Summary of Significant accounting policies

a) Revenue recognition

The Company derives revenues primarily from sale of manufactured goods, traded goods and related services. The Company is also engaged in real estate property development.

Effective 01 April 2018, the Company has adopted Indian Accounting Standard 115 (Ind AS 115) -''Revenue from contracts with customers'' using the cumulative catch-up transition method, applied to contracts that were not completed as on the transition date i.e. 01 April 2018. Accordingly, the comparative amounts of revenue and the corresponding contract assets / liabilities have not been retrospectively adjusted. The effect on adoption of Ind-AS 115 was insignificant.

Revenue is recognized on satisfaction of performance obligation upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services.

Sale of products:

Revenue from sale of products is recognized when the control on the goods have been transferred to the customer. The performance obligation in case of sale of product is satisfied at a point in time i.e., when the material is shipped to the customer or on delivery to the customer, as may be specified in the contract.

Rendering of services:

Revenue from services is recognized over time by measuring progress towards satisfaction of performance obligation for the services rendered.

Real Estate:

The revenue recognition of Real estate property under development requires forecasts to be made of total budgeted costs with the outcomes of underlying construction contracts, which further require assessments and judgements to be made on changes in work scopes and other payments to the extent they are probable and they are capable of being reliably measured. However, where the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately in the Statement of Profit and Loss.

Contract Balances

a) Contract Assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

b) Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

b) Borrowing costs

Borrowing costs, if any, directly attributable to 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. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost

c) Employee benefits

Post-Employment Benefits:

1. Defined Contribution plans:

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

2. Defined Benefit plans - Gratuity:

The liability is recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation

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 statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised at amount net of taxes in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in statement of profit and loss as past service cost

Other Long Term Employee Benefits:

Liability in respect of compensated absences becoming due or expected to be availed more than one year after the balance sheet date is estimated on the basis of an actuarial valuation performed by an independent actuary using the projected unit credit method. Actuarial gains and losses arising from past experience and changes in actuarial assumptions are charged to statement of profit and loss in the year in which such gains or losses are determined.

Short-term employee benefits

A liability is recognised for benefits accruing to employees in respect of salaries, wages, performance incentives, medical benefits and other short term benefits in the period the related service is rendered, at the undiscounted amount of the benefits expected to be paid in exchange for that service.

d) Income Taxes

Tax expense is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current tax

Current tax is determined on taxable profits for the year chargeable to tax in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 including other applicable tax laws that have been enacted or substantively enacted.

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax asset is recognised for the carry forward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part

of the asset to be recovered.

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

Measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

e) Property, plant and equipment

An item of property, plant and equipment that qualifies as an asset is measured on initial recognition at cost. Following initial recognition, items of property, plant and equipment are carried at its cost less accumulated depreciation and accumulated impairment losses.

The cost of an item of property, plant and equipment comprises of its purchase price including import duties and other non-refundable purchase taxes or levies, directly attributable cost of bringing the asset to its working condition for its intended use and the initial estimate of decommissioning, restoration and similar liabilities, if any. Any trade discounts and rebates are deducted in arriving at the purchase price. Cost includes cost of replacing a part of a plant and equipment if the recognition criteria are met.

Depreciation on each part of an item of property, plant and equipment is provided using the Straight Line Method based on the useful life of the asset mentioned below:

Estimated useful lives of the assets are as follows:

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.

f) Intangible assets

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the assets will flow to the Company and the cost of the asset can be measured reliably.

Intangible assets are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

De-recognition of intangible assets

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, is recognised in profit or loss when the asset is derecognised.

Useful lives of intangible assets

Estimated useful lives of the intangible assets are as follows:

g) Impairment

At the end of each reporting period, the Company determines whether there is any indication that its tangible and intangible assets have suffered an impairment loss with reference to their carrying amounts. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount exceeds the recoverable amount. Recoverable amount is higher of the fair value less costs of disposal and value in use. 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 for which the estimates of future cash flows have not been adjusted.

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cashgenerating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

h) Leases

Ind AS 116 requires lessee to recognise a liability to make lease payments and an asset representing the right to use asset during the lease term for all leases except for short term leases and leases of low-value assets, if they choose to apply such exemptions.

At the commencement date, Company recognise a right-of use asset measured at cost and a lease liability measured at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the lessee shall use the lessee''s incremental borrowing rate

The cost of the right-of-use asset comprised of, the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs incurred by the lessee

At the commencement date, the lease payments included in the measurement of the lease liability comprise (a) fixed payments less any lease incentives receivable; (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date (c) amounts expected to be payable by the lessee under residual value guarantees;(d) the exercise price of a purchase option if the lessee is reasonably certain to exercise that option and (e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease

Depreciation on Right to use asset and impairment losses if any recognised in statement of profit and Loss on a straight line basis over the period of lease and separately recognises interest on lease liability as a component of finance cost in statement of profit and Loss.

On transition date, company measured the lease liability at the present value of the remaining lease payments, discounted using the lessee''s incremental borrowing rate at the date of initial application and measured the right to use asset as its carrying amount as if the Standard had been applied since the commencement date, but discounted using the lessee''s incremental borrowing rate at the date of initial Application. Company had recognised the cumulative effect of initially applying this Standard as an adjustment to the opening balance of retained earnings.

The company has no material impact on adoption of Ind AS 116 as at March 31, 2021.

i) Inventory

Raw materials, work-in-progress, finished goods, packing materials, stores, spares, components, consumables and stock in trade are carried at the lower of cost and net realizable value. However, materials and other items held for use in production of inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost. The comparison of cost and net realizable value is made on an item-by item basis.

In determining the cost of raw materials, packing materials, stock-in-trade, stores, spares, components and consumables, First in First Out cost method is used. Cost of inventory comprises all costs of purchase, duties, taxes (other than those subsequently recoverable from tax authorities) and all other costs incurred in bringing the inventory to their present location and condition.

Cost of finished goods and work-in-progress includes the cost of raw materials, packing materials, an appropriate share of fixed and variable production overheads, excise duty as applicable and other costs incurred in bringing the inventories to their present location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities

Realty Division :

Work in progress is valued at cost consisting of land, land development construction, infrastructure, finance cost of funds earmarked to the project and other cost directly attributable to the project or net realisable value.

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Mar 31, 2015

1.1 Basis for preparation of financial statements

(a) Basis of Preparation:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting in accordance with the accounting principles generally accepted in India ('Indian GAAP') and comply with the applicable Accounting Standards prescribed under Sec. 133 of the Companies Act, 2013 ['Act'] read with Rule 7 of the Companies [Accounts] Rules, 2014, the provisions of the Act [to the extent notified] and other relevant provisions of the Companies Act, 1956, to the extent applicable.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities.

(b) Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles in India ('Indian GAAP') requires that the management makes estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

1.2 Summary of Significant Accounting polices

(a) Revenue Recognition Manufacturing Division:

i) Revenue from sale of goods is recognized when all the significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms of the contract, the company retains no effective control of the goods transferred to a degree associated with ownership and no significant uncertainty exists regarding the amount of consideration that will be derived from the sale of goods. Sales are recognized net of trade discounts, rebates, sales taxes and excise duties on goods manufactured and outsourced.

ii) Income from Services rendered is recognized based on agreements/arrangements with the customers on completion of Service when no significant uncertainty exists regarding the amount of consideration that will be derived from rendering of service and is recognized net of service tax, as applicable.

Realty Division

i) Sales of Flats & Commercial Offices are accounted only after receiving full consideration against the Sale Agreements.

ii) Other Projects

The Company is following the "Percentage of Completion Method" of accounting. As per this method, revenue from sale of properties is recognized in the Statement of Profit and Loss in proportion to the actual cost incurred as against the total estimated cost of projects under execution with the Company on transfer of significant risk and rewards to the buyer. If the actual project cost incurred is less than 25% of the total estimated project cost, no income is recognized in respect of that project in the relevant period. Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

Other Income

I) Interest income is recognized on a time proportion basis.

ii) Dividend Income on investment is recognized for when the right to receive dividend is established.

( b) Fixed Assets & Depreciation

i) Tangible Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Cost includes all expenses related to the acquisition and installation of fixed assets. Tangible assets not ready for the intended use on the date of the Balance sheet are disclosed as "Capital work-in-progress".

ii) Depreciation has been provided on a pro-rata basis on the straight line method based on the 'Useful lives' prescribed under Schedule II to the Companies Act, 2013.

(c) Impairment of Asset

The Company reviews the carrying values of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value based on appropriate discount rates.

(d) Investments

Long term Investments are carried at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Long term Investments being Mutual Funds of DSP Merill Lynch were redeemed during the current year & the resulting surplus on the same has been credited to Revenue. Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

(e) Trade Receivables

Trade receivables are stated after making adequate provisions for doubtful balances.

(f) Inventories Manufacturing Division:

I) Raw Materials, Components, Packing Materials, Stock in trade, Stores and Spare Parts are valued at lower of cost and net realizable value. Work-in-Process of the Construction Machinery is valued at estimated cost.

ii) Finished Goods are valued at lower of cost or net realizable value.

Realty Division:

I) Work-in-Progress

Construction Work-in-Progress includes cost of land, Transfer of Development Rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

(g) Employees' Benefits

i) The Company's contribution to Provident Fund and ESIC are charged to the Statement of Profit And Loss.

ii) Liability for Payment of gratuity to employees is covered through the Group Gratuity Schemes of Life Insurance Corporation of India. Gratuity is accounted on the basis of the premium paid to Life Insurance Corporation of India under the Group Gratuity Scheme.

iii) Provision for Leave Encashment is determined on basis of actuarial valuation. (Note 35)

(h) Foreign Exchange Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the Statement of Profit And Loss of the year.

Monetary assets and liabilities denominated in foreign currencies, which are outstanding as at the year end are translated at the closing exchange rate and the resultant exchange differences are recognized in the Statement of Profit And Loss.

(i) Taxation

Tax expenses comprises current tax and deferred tax. Provisions for income tax are made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets are recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. The carrying amount of deferred tax assets is reviewed at each balance sheet date for any write down, as considered appropriate.

Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted at the Balance Sheet date.

(j) Earnings Per Share

Basic earning per share [EPS] are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(k) Borrowing Cost

Borrowing costs that are directly attributable to long term projects / development activities are treated as part of the respective project cost and added to the stock in trade upto the date when such projects / development activities are completed. Other borrowing costs are charged as an expense in the year in which they are incurred.

(l) Contingencies / Provisions

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may arise, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow or resources is remote, no provision or disclosure is made.

(m) Measurement of EBITDA

The Company has elected to present earning before interest (finance cost), tax, depreciation and amortization (EBITDA) as a separate line item on the face of Statement of Profit and Loss for the year. The Company measures EBITDA on the basis of profit / (loss) from continuing operations.

(n) Segment Reporting

Segments are identified having regard to the dominant source and nature of risks and returns and internal organization and management structure. The Company has considered business segments as the primary segments for disclosure. The business segments are 'Construction Equipment', 'Pre Cast Pipes' and 'Real Estate Development'. The Company does not have any geographical segment.

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Mar 31, 2014

1.1 Basis for preparation of financial statements

(a) Basis of Preparation:

The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented under the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.

(b) Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) in India 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 financial statements and reported amounts of income and expenses during the period.

1.2 Summary of Significant Accounting polices

(a) Revenue Recognition

Manufacturing Division:

i) Sales are exclusive of duties and taxes and after adjustment for liquidated damages.

ii) Sales and Services are accounted on dispatch of goods and services rendered to customers only when it can be reliable measured and it is reasonable to expect ultimate collection.

Realty Division

i) Sales of flats representing Book Value of Ghatkopar & Karjat Projects in Note 14 are accounted only after receiving full consideration.

ii) Other Projects

The Company is following the "Percentage of Completion Method" of accounting. As per this method, revenue from sale of properties is recognized in the Statement of Profit and Loss in proportion to the actual cost incurred as against the total estimated cost of projects under execution with the Company on transfer of significant risk and rewards to the buyer. If the actual project cost incurred is less than 20% of the total estimated project cost, no income is recognized in respect of that project in the relevant period. Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

Other Income

i) Interest income is accounted on accrual basis.

ii) Dividend Income is accounted for when the right to receive income is established.

(b) Lease Accounting

Assets taken on operating Lease

Lease rentals on assets taken on operating lease are recognized as expenses in the statement of profit & loss on an accrual basis over the lease term.

(c) Fixed Assets & Depreciation

i) Fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses related to the acquisition and installation of fixed assets.

ii) Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

iii) Assets of individual value upto Rs. 5,000/- at 100%

(d) Impairment of Asset

The Company reviews the carrying values of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value based on appropriate discount rates.

(e) Investments

Long term Investments are carried at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Long term Investments being Mutual Funds of DSP Merill Lynch were redeemed during the current year & the resulting surplus on the same has been credited to Revenue. Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

(f) Inventories

Manufacturing Division:

i) Raw Materials, Components, Stores and Spare Parts are valued at lower of cost and net realizable value. Work-in-Process of the Construction Machinery is valued at estimated cost.

ii) Finished Goods are valued at lower of estimated cost or market value.

Realty Division:

i) Work In Progress

Construction Work In Progress includes cost of land, Transfer of Development Rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

(g) Employees'' Benefits

i) The Company''s contribution to Provident Fund and ESIC are charged to the Statement of Profit And Loss.

ii) Liability for Payment of gratuity to employees is covered through the Group Gratuity Schemes of Life Insurance Corporation of India. Gratuity is accounted on the basis of the premium paid to Life Insurance Corporation of India under the Group Gratuity Scheme.

iii) Provision for Leave Encashment is determined on basis of actuarial valuation.

(h) Foreign Exchange Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the Statement of Profit And Loss of the year.

Monetary assets and liabilities denominated in foreign currencies, which are outstanding as at the year end are translated at the closing exchange rate and the resultant exchange differences are recognized in the Statement of Profit And Loss.

(i) Taxation

Income tax comprises current tax and deferred tax. Provisions for income tax are made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted at the Balance Sheet date.

(j) Earnings Per Share

Basic earning per share [EPS] are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(k) Borrowing Cost

Borrowing costs that are directly attributable to long term projects / development activities are treated as part of the respective project cost and added to the stock in trade upto the date when such projects / development activities are completed. Other borrowing costs are charged as an expense in the year in which they are incurred.

(l) Contingencies / Provisions

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may arise, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow or resources is remote, no provision or disclosure is made.

(m) Measurement of EBITDA

The Company has elected to present earning before interest (finance cost), tax, depreciation and amortization (EBITDA) as a separate line item on the face of Statement of Profit and Loss for the year. The Company measures EBITDA on the basis of profit / (loss) from continuing operations.

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Mar 31, 2012

(a) Revenue Recognition

Manufacturing Division:

i) Sales are exclusive of duties and taxes and after adjustment for liquidated damages.

ii) Sales and Services are accounted on dispatch of goods and services rendered to customers on accrual basis.

Realty Division

i) Sales of flats representing Book Value of Ghatkopar Project in Note 13 are accounted only after receiving full consideration.

ii) Other Projects

The Company is following the "Percentage of Completion Method" of accounting. As per this method, revenue from sale of properties is recognized in the Statement of Profit and Loss in proportion to the actual cost incurred as against the total estimated cost of projects under execution with the Company on transfer of significant risk and rewards to the buyer. If the actual project cost incurred is less than 20% of the total estimated project cost, no income is recognized in respect of that project in the relevant period. Determination of revenues under the percentage of completion method necessarily involves making estimates, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project or activity and the foreseeable losses to completion. Estimates of project income, as well as project costs, are reviewed periodically. The effect of changes, if any, to estimates is recognized in the financial statements for the period in which such changes are determined. Losses, if any, are fully provided for immediately.

Other Income

i) Interest income is accounted on accrual basis.

ii) Dividend Income is accounted for when the right to receive income is established.

(b) Fixed Assets & Depreciation

i) Fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses related to the acquisition and installation of fixed assets.

ii) Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

iii)Assets of individual value up toRs. 5,000/-at100%

(c) Impairment Of Asset

The Company reviews the carrying values of tangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value based on appropriate discount rates.

(d) Investments

Long term Investments are carried at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management. Current investments are carried at lower of cost and fair value. The comparison of cost and fair value is done separately in respect of each category of investments.

(e) Inventories Manufacturing Division:

i) Raw Materials, Components, Stores and Spare Parts are valued at lower of cost and net realizable value. Work-In-Process of the Construction Machinery is valued at estimated cost.

ii) Finished Goods are valued at lower of cost and market value.

Realty Division:

i) Work In Progress

Construction Work In Progress includes cost of land, Transfer of Development Rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Company.

(f) Cost of Realty Projects

Cost of Realty Projects has been arrived at by accumulating the costs incurred for projects and reducing there from the proportionate cost of flats for which agreements are entered till the reporting date.

(g) Employees' Benefits

i) The Company's contribution to Provident Fund and ESIC are charged to the Statement of Profit And Loss.

ii) Liability for Payment of gratuity to employees is covered through the Group Gratuity Scheme of Life Insurance Corporation of India. Gratuity is accounted on the basis of the premium paid to Life Insurance Corporation of India under the Group Gratuity Scheme.

iii) Provision for Leave Encashment is determined on basis of actuarial valuation.

(h) Foreign Exchange Transactions

Transactions in foreign currency are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the Statement of Profit And Loss of the year.

Monetary assets and liabilities denominated in foreign currencies, which are outstanding as at the yearend are translated at the closing exchange rate and the resultant exchange differences are recognized in the Statement of Profit And Loss.

(i) Taxation

Income tax comprises current tax and deferred tax. Provisions for income tax are made in accordance with the Income Tax Act, 1961.

Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted at the Balance Sheet date.

(j) Earnings Per Share

Basic Earnings Per Share [EPS] are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted EPS, the net profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(k) Borrowing Cost

Borrowing costs that are directly attributable to long-term projects/development activities are treated as part of the respective project cost and added to the stock in trade up to the date when such projects / development activities are completed. Other borrowing costs are charged as an expense in the year in which they are incurred.

(I) Contingencies/Provisions

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow or resources is remote, no provision or disclosure is made.

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Mar 31, 2010

1. GENERAL

The financial statements are prepared under the historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 1956.

2. REVENUE RECOGNITION

(A) Manufacturing Division:

i) Sales are exclusive of duties and taxes and after adjustment for liquidated damages. ii) Sales and Services are accounted on dispatch of goods and services rendered to customers on accrual basis.

(B) Realty Division:

i) Sales of flats representing Book Value of Chatkopar Project in Schedule 7 are accounted only after receiving full consideration.

ii) Project at Ghatkopar Property Building No. 4:-

Recognition of Income and Expenses for ongoing projects are based on expected sales value and estimated costs, as per the judgement of the Management based on certified by the Architects being technical matter.

(C)Other Income:

i) Interest income is accounted on accrual basis.

ii) Dividend Income is accounted for when the right to receive income is established.

3. FIXED ASSETS & DEPRECIATION

i) Fixed assets are stated at cost less accumulated depreciation. Cost includes all expenses related to the acquisition and installation of fixed assets.

ii) Depreciation has been provided on straight line method at the rates specified in Schedule XIV of the Companies Act, 1956.

iii) Assets of individual value upto Rs. 5,000/- at 100%

4. IMPAIRMENT OF ASSET

The Company reviews the carrying values of tangible and intangible assets for any possible impairment at each balance sheet date. An impairment loss is recognized when the carrying amount of an asset exceeds its recoverable amount. In assessing the recoverable amount, the estimated future cash flows are discounted to their present value based on appropriate discount rates.

5. INVESTMENTS

Investments are stated at cost. Provision for diminution in value of investments other than temporary has been made as required byAccountingStandardofThe Institute of Chartered Accountantsof India.

6. INVENTORIES Manufacturing Division:

i) Raw Materials, Components, Stores and Spare Parts are valued at cost. Work-in-Process of the Construction Machinery is valued at estimated cost.

ii) Finished Goods are valued at lower of cost or market value.

7. EMPLOYEESBENEFITS

i) The Companys contribution to Provident Fund and ESIC are charged to the Profit and Loss Account.

ii) Liability for Payment of Gratuity and Superannuation to employees is covered through the Group Gratuity and Superannuation Schemes of Life Insurance Corporation of India. Gratuity is accounted on the basis of the premium paid to Life Insurance Corporation of India under the Group Gratuity Scheme.

iii) Provision for Leave Encashment is determined on basis of actuarial valuation.

8. FOREIGN EXCHANGE TRANSACTIONS

Realised gains and losses on foreign exchange transactions other than those relating to fixed assets are recognised in the Profit and Loss Account,

9. TAXATION

Income tax comprises current tax and deferred tax. Provisions for income tax are made in accordance with the Income Tax Act, 1961.

Deferred tax Assets and Liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax Assets and Liabilities are measured using the tax rates enacted or substantively enacted at the Balance Sheet date.

10.EARNINGS PER SHARE

Basic earning per share [EPS] are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted EPS, the net Profit or loss for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

11.BORROWING COST

Borrowing costs that are directly attributable to long term projects / development activities are treated as part of the respective project cost and added to the Stock in trade upto the date when such projects / development activities are completed. Other borrowing costs are charged as an expense in the year in which they are incurred.

12.CONTINGENC1ES/PROVISIONS

Disputed liabilities and claims against the Company including claims raised by fiscal authorities pending in appeal / court for which no reliable estimates can be made of the amount of obligations are not provided for in the accounts but disclosed by way of Notes to Accounts.