Accounting Policies of Sterling Greenwoods Ltd. Company

Mar 31, 2024

1. CORPORATE AND GENERAL INFORMATION

STERLING GREENWOODS LIMITED (“the company”), is a public limited Company incorporated as private limited company in 1992 and subsequently converted to public limited company. The company’s shares are listed on Bombay Stock Exchange. The registered office of the Company is located at Sunrise Shopping Centre, Opp. Drive in Cinema, Ahmedabad- 380054.

1.1. BASIS OF ACCOUNTING AND SIGNIFICANT ACCOUNTING POLICIES

(A) BASIS OF PREPARTION OF FINANCIAL STATEMENTS

1.1 Statement of Compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards (“Ind AS”) as prescribed by Ministry of Corporate Affairs pursuant to Section 133 of the Companies Act, 2013 (“the Act”), read with the Companies (Indian Accounting Standards) Rules, 2015 (as amended), other relevant provisions of the Act and other accounting principles generally accepted in India.

1.2 Basis of Measurement

The financial statements have been prepared on historical cost convention, except for following:

• Financial assets and liabilities (including derivative instruments ) that are measured at fair value/amortised cost;

• Non-current assets held for sale are measured at the lower of the carrying amount and fair value less cost to sell;

1.3 Functional and Presentation Currency

The financial statements have been presented in Indian Rupees (Rs.), which is also the Company’s functional currency. All unancial information presented in (Rs.) has been rounded ou to the nearest Rupee as per the requirements of Schedule III, unless otherwise stated.

1.4 Use of Estimates and Judgments

The preparation of unancial statements require judgments, estimates and assumptions to be made that auect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period prospectively in which the results are known/materialised.

1.5 Current Vs. Non-Current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification. An asset is classified as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realized within twelve months after the reporting period ; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All the other assets are classified as non current.

A liability is classiued as current when:

• It is expected to be settled in normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months as per the reporting period ; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classiues all other liabilities as non-current.

Deferred tax assets and liabilities are classiued as non-current assets and non-current liabilities respectively.

(B) SIGNIFICANT ACCOUNTING POLICIES

A summary of the signiucant accounting policies applied in the preparation of the unancial statements are given below. These accounting policies have been applied consistently to all the periods presented in the unancial statements.

1.6 Inventories

Inventories are valued at the lower of cost and net realizable value.

• The inventories of materials, stores and consumables etc., are valued at lower of cost and net realizable value. Cost includes cost of purchase, non-refundable taxes and other costs incurred in bringing the inventories to their present location and condition. Cost is computed on weighted average basis.

• Land inventory including plots have been valued at lower of cost or net realisable value. Land which is under development/in near future is classified as current asset. Land which is held for undetermined use or for future development is classified as fixed assets.

• Work in progress (Fencing) is valued at cos or net realizable value. Cost includes direct material and labour and direct expenses.

• Finished Goods: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing cost. Cost is determined on weighted average cost basis.

• Traded Goods: cost includes cost or purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated cost necessary to make the sale.

1.7 Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity of three months or less, which are subject to an insigniucant risk of change in value.

1.8 Income Tax

Income tax comprises current and deferred tax. It is recognized in the statement of prout and loss except to the extent that it relates to an item recognized directly in equity or in other comprehensive income.

a) Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have been enacted or substantively enacted, by the end of the reporting period.

b) Deferred Tax

Deferred tax assets and liabilities shall be measured at the tax rates that are expected to

apply to the period when the asset is realized or the liability is settled based on tax rates and

tax laws that have been enacted or substantively enacted by the end of the reporting period.

• Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes (i.e. tax base). Deferred tax is also recognized for carry forward of unused tax losses and unused tax credits.

• Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.

• The carrying amount of deferred tax assets is reviewed at the end of each reporting period. The Company reduces the carrying amount of a deferred tax asset to the extent that it is no longer probable that sufficient taxable profit will be available to allow the beneut of part or that entire deferred tax asset to be utilised. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profit will be available.

• Deferred tax relating to items recognised outside the statement of prout and loss is recognised either in other comprehensive income or in equity. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly inequity.

• Deferred tax assets and liabilities are offset when there is a legally enforceable right to setoff current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its current tax assets and liabilities on a net basis.

• Minimum alternate tax (MAT) paid in a year is charged to the statement of profit & loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the period i.e. the period for which MAT credit is allowed to be carried forward. In the year in which the company recognizes MAT credit as an asset in accordance with the guidance note on accounting for Credit Available in respect of Minimum Alternate Tax under the Income tax Act, 1961, the said asset is created by way of credit to the statement of profit and loss and shown as “MAT credit entitlement” The company reviews the “MAT credit entitlement” asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

1.9 Property, Plant and Equipment

a) Recognition and Measurement

• Property, plant and equipment held for use in the and supply of goods or services, or for administrative purposes, are stated in the balance sheet at cost, less any accumulated depreciation/ amortization and accumulated impairment losses (if any).

• Cost of an item of property, plant and equipment acquired comprises its purchase price, including non-refundable import duties and taxes, as per deducting any trade discounts and rebates, borrowing cost, if capitalization criteria is met and any directly attributable costs of bringing the assets to its working condition and location for its intended use and present value of any estimated cost of dismantling and removing the item and restoring the site on which it is located. the cost includes excise duty, value added tax and service tax etc However, w.e.f 01.07.17, G.ST. is excluded to the extent credit of the duty or tax is availed of.

• Profit or loss arising on the disposal of property, plant and equipment are recognized in the statement of profit and loss. Gain or losses on disposals are determined by comparing proceeds with the carrying amount. These are included in the Statement of Profit and Loss within Other Gain/Losses.

b) Subsequent Expenditure

• Subsequent costs are included in the asset’s carrying amount, only when it is probable that future economic benefits associated with the cost incurred will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for any component accounted for as a separate asset is derecognised when replaced.

• Major inspection /repairs /overhauling expenses are recognized in the carrying amount of the item of property, plant and equipment as a replacement if the recognition criteria are satisued. Any un amortised part of the previously recognised expenses of similar nature is derecognised.

c) Depreciation and Amortisation-Tangible Assets

• Depreciation on property, plant and equipment is provided on straight line method at the rates determined based on the useful lives of respective assets as prescribed in the Schedule II of the Act.

• Each part of items of property, plant and equipment with a cost that is signiucant in relation to the total cost of the item is depreciated separately.

• Depreciation on additions (disposals) during the year is provided on a pro-rata basis i.e., from (up to) the date on which asset is ready for use (disposed of).

• Depreciation method, useful lives and residual values are reviewed at each unancial year-end and adjusted, if appropriate.

• The residual value for all the assets are retained at 5% of the cost

• Useful life of the Tangible assets as per Part C of Schedule II of the Act read with notification dated 29.08.2014 of Ministry of corporate affairs is as follows :

Category of assets	Useful life of Asset as per Schedule II
Building	30 Years
Electric installation	10 Years
Computer	6 Years
Vehicles	6 Years
Office Equipment	5 Years
Furniture & Fixtures	10 Years

d) Reclassification to Investment Property

When the use of a property changes from owner-occupied to investment property, the property is re classiued as investment property only when it has substantial value on the date of reclassiucation and if so it is reclassified at its carrying amount.

1.10Amortization of Intangible Assets

Intangible assets acquired are accounted at their acquisition cost and are amortised over its useful life.

1.11 Impairment of Non Financial Assets

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which these are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units).Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

1.12 Leases

At inception of contract, the Company assesses whether the Contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At inception or on reassessment of a contract that contains a lease component, the Company allocates consideration in the contract to each lease component on the basis of their relative standalone price.

As a lessee

i) Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease. Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, lease payments made at or before the commencement date less any lease incentives received and estimate of costs to dismantle. Right- of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

The Company presents right-to-use assets that do not meet the definition of investment property in ‘Property, plant and equipment’.

ii) Lease Liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. In calculating the present value of lease payments, the Company generally uses its incremental borrowing rate at the lease commencement date if the discount rate implicit in the lease is not readily determinable.

After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. The carrying amount is remeasured when there is a change in future lease payments arising from a change in index or rate. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments or a change in the assessment of an option to purchase the underlying asset.

The Company presents lease liabilities under financial liabilities in the Balance Sheet.

iii) Short term leases and leases of low value of assets

The Company applies the short-term lease recognition exemption to its short-term leases. It also applies the lease of low- value assets recognition exemption that are considered to be low value. Lease payments on short-term leases and leases of low value assets are recognised as expense on a straight-line basis over the lease term.

As a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the Company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

1.13 Revenue Recognition

• Revenue is recognised to the extent that it is probable that the economic beneuts will uow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually deuned terms of payment and excluding taxes or duties collected on behalf of the Government.

• The Company recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic beneuts will uow to the entity and speciuc criteria have been met for each of the Company’s activities as described below. The Company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the speciuc of each arrangement.

a) Sale of Goods

Revenue from the sale of developed plot/land and other rights is recognized when signiucant risks and rewards of ownership are transferred to customers and the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor euective control over the goods sold. Revenue from the sale of goods is measured at the fair value of the consideration received or receivables, net of returns and allowances., trade discounts and volume rebates.

b) Sale of Services

Revenue from services is recognized in the accounting period in which the services are rendered and when invoices are raised.

c) Interest Income

For all debt instruments measured either at amortised cost or at fair value through other comprehensive income (FVTOCI), interest income is recorded using the euective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of the unancial instrument or a shorter period, where appropriate to the gross carrying amount of the unancial asset. When calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instrument ( for example, prepayment, extension, call and similar options ) but does not consider the expected credit losses.

d) Dividend Income

Dividend income from investments is recognised when the Company’s right to receive payment has been established.

1.14 Employee Benefits

a) Short Term Employee Beneuts

Short term employee beneut obligations are measured on an undiscounted basis and are expensed as the related services are provided. Liabilities for wages and salaries, including non-monetary beneuts that are expected to be settled wholly within twelve months as at the end of the period in which the employees render the related service are recognised in respect of employees’ services up to the end of the reporting period.

b) Other Long Term Employee Beneuts

The known liabilities for earned leaves that are not expected to be settled wholly within twelve months are measured as the present value of the expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

c) Post Employment Benefits

• Defined Benefits Plans

The known liability, if any, recognised in the balance sheet in respect of defined benefit plans is the present value of the defined beneut obligation at the end of the reporting period less the fair value of plan assets. The Company’s net obligation in respect of deuned beneut plans is calculated separately for each plan by estimating the amount of future beneut that employees have earned in the current and prior periods. if any liability in a financial year it is charged to Statement of Profit and Loss account. The deuned beneut obligation if any, is calculated annually by Actuaries using the projected unit credit method. In other cases, such expenditure are charged to Statement of Profit and Loss Account considering it as Short Term Benefits when it is crystalizes.

• Defined Contribution Plan

Defined contributions, if any, to Statutory Schemes are charged to the statement of prout and loss of the year.

d) Termination Benefit

Expenditure incurred on Voluntary Retirement Scheme is charged to the statement of prout and loss immediately.

1.15 Foreign Currency Transactions

• Foreign currency transactions are translated into the functional currency using the spot rates of exchanges at the dates of the transactions.

• Foreign Currency Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rate of exchanges at the reporting date.

• Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities are recognised in prout or loss in the year in which they arise.

• Non-monetary items are not retranslated at period end and are measured at historical cost (translated using the exchange rate at the transaction date).

1.16 Borrowing Cost

• Borrowing Costs consist of interest and other costs that an entity incurs in connection with the borrowings of funds.

• Borrowing costs directly attributable to the acquisition or construction of a qualifying asset are capitalised as a part of the cost of that asset that necessarily takes a substantial period of time to complete and prepare the asset for its intended use. The Company considers a period of twelve months or more as a substantial period of time.

• All other borrowing costs are recognised in the statement of prout and loss in the period in which they are incurred.

1.17 Financial Instruments

A financial instrument is any contract that gives rise to a unancial asset of one entity and a unancial liability or equity instrument of another entity.

a) Financial Assets

• Recognition and Initial Measurement:

All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instruments. A unancial asset is initially measured at fair value plus, in the case of financial assets not recorded at fair value through prout or loss, transaction costs that are attributable to the acquisition of the unancial asset.

• Classification and Subsequent Measurement:

For purposes of subsequent measurement, financial assets are classiued in four categories:

- Measured at amortised cost;

- Measured at fair value through other comprehensive income (FVTOCI);

- Measured at fair value through profit or loss (FVTPL); and

- Equity Instruments measured at fair value through other comprehensive income (FVTOCI).

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

- Measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

• The asset is held within a business model whose objective is achieved by both collecting 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 (SPPI) on the principal amount outstanding.

As per initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method.

- Measured at FVTOCI

A financial asset is measured at the FVTOCI if both the following conditions are met:

• The objective of the business model is achieved by both collecting contractual cash uows and selling the financial assets; and

• The asset’s contractual cash flows represent SPPI.

Financial assets meeting these criteria are measured initially at fair value plus transaction costs. They are subsequently measured at fair value with any gains or losses arising on remeasurement recognised in other comprehensive income, except for impairment gains or losses and foreign exchange gains or losses. Interest calculated using the effective interest method is recognised in the statement of prout and loss in interest income. Where the asset is disposed of, the cumulative gain or loss previously accumulated in other comprehensive income reserve is transferred in the statement of prout and loss.

- Measured at FVTPL

FVTPL is a residual category for unancial assets. Any financial assets, which does not meet the criteria for categorization as at amortised cost or as FVTOCI, is classiued as FVTPL. In addition, the Company may elect to designate a unancial asset, which otherwise meets amortised cost or FVTOCI criteria, as at FVTPL. Financial asset included within the FVTPL category are measured at fair value with all changes recognised in the statement of prout and loss. Interest / dividend income on unancial instruments measured at FVTPL are presented separately under other income.

- Equity Instruments measured at FVTOCI

All equity investments in scope of Ind AS - 109 are measured at fair value. Equity instruments which are, held for trading are classiued as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present subsequent changes in the fair value in other comprehensive income. The Company makes such election on an instrument-byinstrument basis. The classiucation is made on initial recognition and is irrevocable. In case the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the OCI. There is no reclassiucation of the amounts from OCI to the statement of prout and loss, even on sale of investment.

• Derecognition

The Company derecognises a unancial asset on trade date only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.

• Impairment of Financial Assets

In accordance with Ind As 109, the company uses Expected Credit Loss (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses measured through a loss allowance at an amount equal to:

1. ) The 12-months expected credit losses (expected credit losses that result from those default

events on the financial instrument that are possible within 12 months after the reporting date);or

2. ) Full lifetime expected credit losses (expected credit losses that result from all possible default

events over the life of the financial instrument)

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates.

For other assets, the company uses 12 month ECL, if any, to provide for impairment loss where there is no significant increase in credit risk. If there significant increase in credit risk full lifetime ECL is used.

b) Financial Liabilities

• Recognition and Initial Measurement

Financial liabilities are classiued, at initial recognition, as at fair value through profit or loss, loans and borrowings, payables or as derivatives, as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

• Subsequent Measurement

Financial liabilities are measured subsequently at amortised cost or FVTPL. A financial liability is classified as FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest rate method.

Interest expense and foreign exchange gains and losses are recognised in prout or loss. Any gain or loss on derecognition is also recognised in prout or loss.

• Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires.

• Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the counterparty.

1.18Provisions, Contingent Liabilities and Contingent Assets

a) Provisions

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic beneuts will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions, if any, are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reuects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

Onerous Contracts:

Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is considered to exist when a contract under which the unavoidable costs of meeting the obligations exceed the economic benefits expected to be received from it.

b) Contingent Liabilities

Contingent liability is a possible obligation arising from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events but is not recognised because it is not possible that an outflow of resources embodying economic benefit will be required to settle the obligations or reliable estimate of the amount of the obligations cannot be made. The Company discloses the existence of contingent liabilities in other notes to financial statements.

c) Contingent Assets

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of an infow of economic benefits. Contingent assets are not recognised though are disclosed, where an infow of economic benefits is probable.

1.19 Investment properties

• Investment property, if any, is property (comprising land or building or both) held to earn rental income or for capital appreciation or both, but not for sale in ordinary course of business, used in the production or supply of goods or services or for administrative purposes.

• Upon initial recognition, an investment property is measured at cost. Subsequently they are stated in the balance sheet at cost, less accumulated depreciation/amortisation and accumulated impairment losses, if any.

• Any gain or loss on disposal of investment property is determined as the difference between net disposal proceeds and the carrying amount of the property and is recognised in the statement of profit and loss.

• The depreciable investment property i.e., buildings, are depreciated on a straight line method at a rate determined based on the useful life as provided under Schedule II of the Act.

• Leasehold land if any, is amortised on a straight line basis over the period of lease.

• Investment properties are derecognised either when they have been disposed ou or when they are permanently withdrawn from the use and no future economic beneut is expected from their disposal. The net diuerence between the net disposal proceeds and the carrying amount of the asset is recognised in prout or loss in the period of derecognition.

1.20Non-current assets (or disposal groups) held for sale and discontinued operations

• Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of the carrying amount and the fair value less cost to sell.

• An impairment loss, if any, is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.

• Non-current assets (including those that are part of a disposal group) are not depreciated or amortised while they are classified as held for sale. Non-current assets (or disposal group), if any, classified as held for sale are presented separately in the balance sheet. Any profit or loss, if any, arising from the sale or Remeasurement of discontinued operations is presented as part of a single line item in statement of prout and loss.

1.21 Earnings Per Share:

Basic earnings per share is calculated by dividing the net prout or loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net prout or loss for the period attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding during the period are adjusted for the euects of all dilutive potential ordinary shares.

1.22Cash dividend distribution to equity holders

The Company recognizes a liability to make cash distributions to equity holders of the Company when the distribution is authorized and the distribution is no longer at the discretion of the Company. Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

1.23Measurement of Fair Values

A number of the accounting policies and disclosures of the Company require the measurement of fair values, for both unancial and non-unancial assets and liabilities.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

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

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

The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-unancial asset takes into account a market participant’s ability to generate economic beneuts by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the input that is signiucant to the fair value measurement as a whole:

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

• Level 2 — Inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

• Level 3 — Inputs which are unobservable inputs for the asset or liability.

External valuers are involved for valuation of signiucant assets and liabilities. Involvement of external valuers is decided by the management of the Company considering the requirements of Ind AS and selection criteria include market knowledge, reputation, independence and whether professional standards are maintained.

1.24Significant Judgments and Key sources of Estimation in applying Accounting Policies

Information about significant judgments and key sources of estimation made in applying accounting policies that have the most significant effects on the amounts recognised in the unancial statements is included in the following notes:

a) Recognition of Deferred Tax Assets

The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Company’s future taxable income against which the deferred tax assets can be utilised. In addition, signiucant judgement is required in assessing the impact of any legal or economic limits.

b) Useful lives of depreciable/ amortizable assets (property, plant and equipment)

Management reviews its estimate of the useful lives of depreciable/ amortisable assets at each reporting date, based on the expected utility of the assets.

c) Provisions and Contingencies

The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Indian Accounting Standards (Ind AS) 37, ‘Provisions, Contingent Liabilities and Contingent Assets’. The evaluation of the likelihood of the contingent events is applied best judgement by management regarding the probability of exposure to potential loss.

d) Impairment of Financial Assets

The Company reviews its carrying value of investments carried at amortised cost annually, or more frequently when there is indication of impairment. If recoverable amount is less than its carrying amount, the impairment loss is accounted for.

e) Fair value measurement of financial Instruments

When the fair values of financial assets and unancial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the discounted cash flow model. The input to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include considerations _of inputs such as liquidity risk, credit risk and volatility._

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Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the Company.

The accounting policies have been consistently applied by the Company and are in consistent with those used in previous year.

b) Use of Estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual result could differ from these estimates.

c) The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Considering the matching concept, the Company recognizes its revenue from Resorts service business on receipt basis.

1.2 Disclosure of Accounting Policies

The Accounting Principles and Policies are recognized as appropriate for measurement and reporting of the financial performance and the financial position on mercantile system and recognize items of income and expenditure on accrual basis. The statement on Significant Accounting Policies excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during the year.

1.3 Valuation of Inventories

a. The inventories of stores and consumables at resorts have been valued at Cost or Market value whichever is lower.

b. (i) Land inventory including plots have been valued at lower of cost or net realizable value. Land which is under development in near future is classified as current asset. Land which is held for undetermined use or for future development is classified as fixed assets.

(ii) Work in progress (fencing) is valued at cost or net realizable value. Cost includes direct material, labour and direct expenses.

Net realizable value is the estimated selling price in ordinary course of business, less estimated cost of completion and estimated costs necessary to make sale.

1.4 Cash Flow Statement

Cash flow statement, as per AS - 3 is annexed with financial statements.

1.5 Contingencies and Events occurring after Balance Sheet date.

Material Events occurring after Balance Sheet date are taken into cognizance. There have been no material changes or events since the date of Balance Sheet affecting financial statements as on the Balance Sheet date. Further, the dates of Balance Sheet, no events or circumstances have occurred, though properly excluded from the accounts, are of such importance that they should be disclosed through any medium.

1.6 Net Profit and Loss for the period, extra ordinary items and change in accounting policy.

Net Profit for the period

All items of income and expense in the period are included for determination of net profit of the year unless specifically mentioned elsewhere in the financial statements or required by an Accounting Standard. Prior period items, extra ordinary items and changes in accounting policy are disclosed only if those have material impact on the affairs of the Company.

2

Prior Period items: All material items of Income/Expenditure pertaining to prior period and expenses to subsequent period are accounted separately.

3

Extra ordinary items: NIL

4

Exceptional Items: Exceptional items are those items which occur due to error or omission relating to earlier years and of material in nature.

5

Accounting Policies

The company has consistently followed accounting polices and there are no material changes in accounting policy of the Company from that followed in previous year.

1.7 Depreciation Accounting

a) The Gross Block of fixed assets is stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

b) Depreciation on fixed assets is provided on ''Straight Line Basis'' at the rate prescribed in Schedule XIV to the Companies Act, 1956. On additions of assets, the depreciation is charged at full rate on additions made before 30 September 2013. The addition made afterwards is charged at half rate.

c) Assets individually costing less than or equal to Rs. 5000/- are fully depreciated in the year of purchase.

1.8 Revenue recognition

(i) Revenue from Resort operations (Gross) is recognized upon rendering of the services and adjustments on account of cancellation/ returns.

(ii) Recognition of revenue from sale of land

Revenue from sale of developed plot-land and other rights is recognized upon transfer of all significant risk and rewards of ownership of such real estate/ property, as per the terms of the contracts/agreements entered into with buyers, which generally coincides with framing of the sale contracts/ agreements.

(iii) Dividend income

Revenue is recognized when the shareholders'' or unit holders'' right to receive payment is established by the balance sheet date.

(iv) Interest income

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

1.9 Accounting of Fixed Assets Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost bringing the asset to its working condition for its intended use. Any trade discounts or rebates are deducted in arriving at the purchase price.

Borrowing cost directly attributable to acquisition of fixed assets which takes substantial period of time to get ready for its intended use, are also included to the extent they relate to the period till such assets are ready to be put to use.

Gain or loss arising from derecognition of fixed asset are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the asset is derecognized.

1.10 Accounting for Investments:-

Investment that are readily realisable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage fees and duties.

Current investments are carried lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost.

On disposal of investments, the difference between its carrying amount and net disposal proceeds is charged or credited to statement of profit and loss.

1.11 Accounting for retirement benefits

(i) Retirements benefits, in the form of provident fund are defined contributions, are charged to the statement of profit and loss of the year when the contributions to provident fund are due. There are no other obligations other than the contribution payable to the government administered provident fund.

(ii) In respect of Gratuity, the Company is providing on cash basis, as and when they fall due and paid, is charged to statement of profit and loss of the year.

(ii-a) Further as per approved actuary report, the actuarial valuation of the Gratuity payable as on 31.03.2014 is Rs.601910/- (previous year Rs. 1388309/-).

As per the policy of the Company, the Company has not made the provision for the Gratuity payable in statement of profit and loss of the year.

(iii) In respect of leave encashment, the Company is providing on cash basis, as and when they fall due and paid, is charged to statement of profit and loss of the year.

As per the policy of the Company, the Company has not made the provision for the leave encashment payable in statement of profit and loss of the year.

1.12 Borrowing cost

Borrowing cost directly attributable to acquisition/construction of qualifying assets are capitalized until the time all substantial activities necessary to prepare the qualifying assets for their intended use are complete. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use/sale. All other borrowing cost not eligible for inventorisation / capitalisation are charged to statement of profit and loss.

1.13 Leases

All leases are classified into operating and finance lease at the inception of the lease. Leases that transfer substantially all risks and rewards from lessor to lessees are classified as finance lease and others being classified as operating lease.

There are no finance lease transactions entered into by the Company.

Rent Income and Rent Expense represent operating leases which are recognized as an expense.

1.14 Consolidated Financial Statements

Company is having a fully owned subsidiary namely "STERLING RESORTS PRIVATE LIMITED" Consolidated Balance Sheet has been prepared accordingly.

1.15 Accounting for Taxes on Income

Tax expenses comprise of current and deferred tax.

Current Tax is measured at the amount expected to be paid to/recovered from the revenue authorities, using the applicable tax rates and tax laws.

The tax effect of the timing differences that result between taxable income and accounting income capable of reversal stat in one or more subsequent periods are recorded as a deferred tax asset or a deferred tax liability.

They are measured using the substantively enacted tax rates and tax laws as on the balance sheet date. Deferred tax assets are recognized only when there is a reasonable certainty that sufficient future taxable income will be available against which they will be realized. Where there is a carry forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence of availability of taxable income against which such deferred tax assets can be realized in future.

1.16 Impairment of Assets

The carrying value of fixed assets is evaluated whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. As per the information and explanations given, that the company has not recognised impairment loss or identified during the reporting period.

1.17 Provisions,Contingent Liabilities and Contingent Asset Provisions

A provision is recognised when the company has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current best estimates.

Contingent liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognised because it is not probable that an out flow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably.

The Company does not recognise contingent liability but disclose its existence in the financial statements * Disclosure required under the Companies Act, 1956

1. Figures of previous year have been regrouped / rearranged wherever necessary.

2. Directors'' Remuneration

Particulars This Year (Rs.) Last Year (Rs.)

Remuneration 1245342 2686500

Contribution to Superannuation Fund Nil Nil

Total 1245342 2686500

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Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the company.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Considering the matching concept, the company recognizes its revenue from information service business on receipt bas

2 Disclosure of Accounting Policies

The Accounting Principles and policies recognized as appropriate for measurement and reporting of the financial performance and the financial position on mercantile system and recognize items of income and expenditure on accrual basis. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.

3 Valuation of Inventories

The inventories of stores at resort have been valued Cost or Market value whichever is lower. The inventory of land has been valued at Cost or Market value whichever is lower.

4 Cash Flow Statement

Cash flow statement, as per AS 3 is annexed with financial statements.

- AS 4 Contingencies and Events occurring after Balance sheet date.

- AS 5 Net Profit and Loss for the period, extra ordinary items and change in accounting policy.

- AS 6 Depreciation Accounting

a) The Gross Block of fixed assets is stated at cost of acquisition or construction including any cost attributable to bringing the assets to their working condition for their intended use.

b) Depreciation on fixed assets is provided on 'Straight Line Basis' at the rate prescribed in Schedule XIV to the Companies Act, 1956. On additions of Assets the depreciation is charged at full rate on additions made before 30 September 2010. The addition made afterwards is charged at half rate.

- AS 10 Accounting of Fixed Assets Fixed Assts reflected in the financial statements are stated at their cost of acquisition including taxes, duties (Net of Refunds) and other identifiable direct charges incurred up to date the asset is put to use less accumulated depreciation where charged.

- AS 13 Accounting for Investments:- The investments of the company are classified in to investments held for maturity and investment held other than for maturity. The company values its investments held for maturity at cost price ignoring any changes in the market price of the same. However, if change in value is on permanent basis, the same is recognized as profit or loss in profit and loss account. While investment held for other than maturity is valued at Market price by recognizing the same in profit and loss account.

- AS 15 Accounting for retirement benefits Contribution made to defined contribution retirement benefit plans viz Provident fund, Gratuity fund, which are recognized as expenses as they fall due and paid. All the above expenditures are debited to profit and loss account. However, the company has not made any provision of leave encashment during year.

- AS – 17 – Segment Reporting The Company operates two segments viz (1) Real Estate Business and (2) Resort Business division on the basis of business segment. The company has preferred to give segment reporting based on the basis of classifications of its business.

(B) Segment accounting policies:

In addition to the significant accounting policies applicable to the business segment as set out in notes to the accounts, the accounting Policies in relation to segment accounting are as under:

(a) Segment assets and liabilities:

Company is having two segments of business and Assets and Liabilities could not be bifurcated segment wise.

(b) Segment revenue and expenses

Segment revenue and expenses are taken directly as attributable to the segment. It does not include interest income on inter- corporate deposits, Profit on sale of investments, Interest expense, Provision for Contingencies and income-tax - AS 18 Related Party Disclosure

5. List of Relatives of Key Managerial Personnel and Enterprise over which Key Management Personnel and their relative excessive significant influence with whom transaction have taken place during the year

B. Transactions with Related Parties :-

- AS – 20 – Earning Per Share

Basic Earning per Share are disclosed in the profit and loss account. There is no Diluted Earnings per Share as there are no dilative potential equity shares.

AS-21 - Consolidated Financial Statements

Company is having a fully owned subsidiary namely "STERLING RESORTS PRIVATE LIMITED" Consolidated Balance Sheet has been prepared accordingly.

AS - 22 - Accounting for Taxes on Income

Provision for current income taxes is made on taxable income at the rate applicable to the relevant assessment year. There are deferred tax assets as calculated. However company has not recognized & provided provisions for the assets in the books of accounts.

- AS 28 Impairment of Assets

The carrying value of fixed assets is evaluated whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. There is no impairment loss recognized or identified during the reporting period.

- AS – 29– Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities are not provided for but are disclosed after a careful evaluation of facts and legal aspects of the matter involved. In general, liabilities and contingencies are provided for it. If, in the opinion and at the discretion of the management, there are reasonable prospects of such liabilities crystallizing or future outcome of such contingencies is likely to be materially detrimental to business.

Income Tax Liabilities (For the Asst. Year 1995-96) of which appeal by Income Tax Department is pending before the Income Tax Appellate Tribunal against the demand reduced by the C.I.T. Company is contingently liable for the amounting of Rs.92,61,016/-. Company has not made the provisions for the above nor it has provided demand of interest U/s. 220 amounting of Rs.3,00,000 paid during the year accounted with Advance Income Tax. Disclosure required under companies Act, 1956

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Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles on going concern basis and provisions of the Companies Act, 1956 as adopted consistently by the company.

b) The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis. Considering the matching concept, the company recognizes its revenue from information service business on receipt basis.

- AS -1 - Disclosure of Accounting Policies

The Accounting Principles and policies recognized as appropriate for measurement and reporting of the financial performance and the financial position on mercantile system and recognize items of income and expenditure on accrual basis. The statement on Significant Accounting policy excludes disclosures regarding Accounting Standards in respect of which there are no material transactions during year.

- AS - 3 - Cash Flow Statement

Cash flow statement, as per AS - 3 is annexed with financial statements.