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Accounting Policies of SV Global Mill Ltd. Company
Mar 31, 2025
1. REPORTING ENTITY
S V Global Mill Ltd (S V Global or the Company) is a company registered under the erstwhile Companies Act, 1956 with its registered office at New No. 5/1, Old No. 3/1, 6th Cross Street, CIT Colony, Mylapore, Chennai -600004 and is also listed with the Bombay Stock Exchange Limited. The Company is engaged in the business of real estate.
2. BASIS OF PREPARATION2.1 Statement of Compliance
The Company adopted the Ind AS in preparation of the financial statements notified by the Ministry of Corporate Affairs vide Notification No. G.S.R. 111(E) dated 16th February 2015 as amended from time to time. Accordingly, the financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') as prescribed under section 133 of the Companies Act, 2013 (the "Act"), read together with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, relevant provisions of the Act and other accounting principles generally accepted in India.
The management has determined the currency of the primary economic environment in which the Company operates i.e., functional currency, to be Indian Rupees (INR). The financial statements are presented in Indian Rupees (''INR'') which is the Company''s functional currency and presentational currency.
The financial statements have been prepared on a historical cost basis, except otherwise stated.
2.4 Significant Estimates and Judgements
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes, requiring a material adjustment in the carrying amounts of assets or liabilities in the future periods. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized prospectively.
i. Estimation of useful life of Property, Plant and Equipment and residual values
ii. Estimation and evaluation of provisions and contingencies
3 SIGNIFICANT ACCOUTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
3.1 Current and non-current classification
All assets and liabilities are classified into current and non-current.
An asset is classified as current when it satisfies any of the following criteria:
It is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;
ii. It is held primarily for the purpose of being traded;
iii. It is expected to be realized within 12 months after the reporting date; or
It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
A liability is classified as current when it satisfies any of the following criteria:
. It is expected to be settled in the Company''s normal operating cycle;
ii. It is held primarily for the purpose of being traded;
iii. It is due to be settled within 12 months after the reporting date; or
There is no an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
iv. settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of financial liabilities some part of which may be non-current. All other liabilities are classified as non-current.
Deferred tax assets are classified as non-current assets.
The operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and noncurrent.
3.2 Property, Plant &Equipment Recognition and Measurement
Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of taxes, duties, freight, installation allocated incidental expenditure during construction / acquisition, borrowing cost and necessary adjustments in the year of final settlement. The cost of Property, Plant and Equipment also includes the present value of obligations arising, if any, from decommissioning, restoration and similar liabilities related to the same. The present value of those costs (decommission and/or restoration costs) is capitalized as an asset and depreciated over the useful life of the asset.
The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labor, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.
If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Capital work-in-progress includes assets under construction and cost attributable to construction of assets not ready for use before the year end.
Subsequent expenditure is included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced.
Depreciation is provided on the cost of the property, plant and equipment less their estimated residual values over their estimated useful lives, and is recognized in the Statement of Profit and Loss. The company depreciates property, plant and equipment as per guidance set out in Schedule II of the Companies Act, 2013 on written down value (WDV) method except in respect of the assets mentioned (II) below. Items of Property, Plant and Equipment are depreciated over the useful life as provided below:
|
Sl. No |
Category |
Useful Life |
|
1 |
Buildings |
60 |
|
2 |
Computer & Computer Accessories |
3 |
|
3 |
Electrical Equipment''s |
5 |
|
4 |
Furniture & Fixtures |
5 |
|
5 |
Motor Vehicles |
8 |
|
6 |
Office Equipment''s |
5 |
|
7 |
Plant and Machinery |
5 |
⢠Assets costing up to INR 5,000 are depreciated fully in the Year of Purchase
⢠In the year of commissioning/retirement of assets, depreciation is calculated on pro-rata basis,
⢠for the period the asset is available for use
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences in respect of long-term foreign currency liabilities of the respective asset to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs (net of interest earned on temporary investments) directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the asset. Interest is computed on weighted average cost of funds deployed.
All other borrowing costs are expensed in the year in which they occur
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.
Land and building held as Stock-in-Trade for Property Development is stated at lower of cost and net realizable value.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Initial Recognition and Measurement
All financial assets are initially recognized when the Company becomes a party to the contractual provisions of the instrument. All financial assets are initially measured at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
The company classifies its financial assets in the following categories
i. Financial Assets at amortized cost
ii. Financial Assets measured subsequently at fair value (either through other comprehensive income, or through profit or loss)
A financial asset being ''debt instrument'' is measured at the amortised cost if both of the following conditions are met:
1. The financial asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
2. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A financial asset is measured at Fair Value through Other Comprehensive Income (FVTOCI), if both of the following conditions are met:
i. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
ii. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Assets that do not meet the criteria for amortised cost or Fair Value through Other Comprehensive Income (FVTOCI) are measured at Fair Value through Profit or Loss (FVTPL).
The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at fair value. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss.
Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss.
Financial assets at FVTOCI or FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in OCI or the statement of profit and loss as the case may be. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends/Interest Income from such investments are recognised in profit or loss as other income when the Company''s right to receive payments is established.
The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.
For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance computed using ECL model, is recognised as an impairment gain or loss in the statement of profit and loss.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately. Where the Company elects to measure FVTPL, changes in the fair value of such financial assets are recognised in the statement of profit and loss.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any gain or loss on derecognition is recognised in the statement of profit and loss.
Financial LiabilityRecognition and initial measurement
All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.
Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost. Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expenses are recognised in the statement of profit and loss.
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.
Any gain or loss on derecognition is also recognised in the statement of profit and loss.
Financial assets and financial liabilities are offset and the net amount presented in the Balance Sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.
3.6 Investment in subsidiaries / associates:
Investment in subsidiaries / associates is measured at cost less provision for impairment.
Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing and investing activities of the Company are segregated.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
3.9 Impairment of non-financial assets
The carrying amounts of the Company''s non-financial assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the Company estimates the asset''s recoverable amount. Impairment losses are provided for Cash Generating Units (CGU) and also for individual assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount and is recognised in the Statement of Profit & Loss.
"On review of impairment loss at the end of each reporting period, if the carrying value of an individual asset increases, reversal of impairment loss is made to the extent that it does not exceed the carrying amount of such asset. In case of a CGU, reversal of impairment loss, if any, is allocated pro rata to the individual assets of the CGU."
3.10 Prior period items, accounting estimates and effect of change in Accounting Policy
Prior period errors of material nature, are corrected retrospectively by restating the comparative amounts for the prior period(s) presented in which the error occurred or if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.
The effect of change in accounting estimate is recognised prospectively in the Statement of Profit and Loss except where they relate to assets and liabilities, the same is recognised by adjusting the carrying amount of related assets/liability/equity in the period of change.
Changes in accounting policy due to initial application of Ind AS are dealt with in accordance with specific transitional provisions, if any in the Ind AS. In other cases, the changes in accounting policy are recognised retrospectively, the application of such change is limited to the earliest period practicable.
3.11 Events occurring after the balance sheet date
Events occurring after the balance sheet date are those events that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors. Such events are disclosed or given effect to in the financial statements as provided for in Ind AS 10.
Revenue is recognized to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue should be recognized initially at transaction price when the entity satisfies the performance obligation.
Revenue from cancellation of contracts
Revenue from cancellation of contracts in the usual course of real estate business is recognized when the compensation/interest/fee payable to the company is determined and agreed between the parties.
Revenue includes revenue earned through rental of company''s properties invoiced for fixed monthly charges or on time proportionate basis.
Interest income from debt instruments is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying value of a financial asset. While 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.
Dividend income is recognized in the Profit and Loss account when the right to receive the same is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be reliably measured.
Sale proceeds of scrap are taken to other non-operating income in the year of disposal.
Income tax expense comprises current and deferred tax. It is recognized in profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognized amounts, and it is intended to realize the asset and settle the liability on a net basis or simultaneously.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for:
i. temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit and loss;
ii. temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will
not reverse in the foreseeable future; and
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized; such reductions are reversed when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
Minimum Alternative Tax (''MAT'') expense under the provisions of the Income-tax Act, 1961 is recognized as an asset when it is probable that future economic benefit associated with it in the form of adjustment of future income tax liability, will flow to the Company and the asset can be measured reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company becomes liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting date and is written down to reflect the amount that is reasonably certain to be set off in future years against the future income tax liability.
The Company presents basic and diluted earnings/ (loss) per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.
3.15 Provisions and Contingencies Provisions:
A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation.
Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show because notices are not considered as Contingent Liabilities unless converted into demand.
Contingent assets are neither recognized nor disclosed in the financial statements.
The operating segments used to present segment information are identified on the based on the information reported to the Board of Directors who is chief operating decision maker (CODM) for the purposes of resources allocation and assessment of segment performance. The operating segments have been identified on the basis of the nature of products / services. Revenue directly attributable to the segments is considered as segment revenue. Expenses directly attributable to the segments and common expenses allocated on a reasonable basis are considered as segment expenses.
3.17 LeasesDetermination whether a contract contains a lease
The company assesses whether a contract is, or contains, a lease at the inception of a contract.
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 the arrangement that contains a lease, the payments and other consideration required by such an arrangement are separated into those for the lease and those for other elements on the basis of their relative stand-alone prices.
Where the Company is the lessee Initial Recognition and Measurement
The Company recognizes right to use asset and a lease liability at the lease commencement date.
Right to use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or restore the underlying asset or the site on which it is located, less any incentives received.
Lease liability is initially measured at the present value of the lease payments that are not paid at the commence date, discounted using the interest rate implicit in the lease of, if that rate cannot be readily determined, the company''s incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise the following:
i. Fixed payments, including in-substance fixed payments;
ii. Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
iii. Amounts expected to be payable under a residual value guarantee; and
iv. The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension period, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.
Right to use asset is subsequently depreciated using the written-down value method from the commencement date to the earlier of end of useful life of the right to use asset or the end of the lease term. The estimated useful lives of right to use assets are determined on the same basis as those of the property, plant and equipment. In addition, the right to use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurement of the lease liability.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in the future lease payments arising from a change in an index or rate, if there is a change in company''s estimate of the amount expected to be payable under a residual value guarantee, or if the company changes its assessment of whether it will exercise a purchase, extension or termination option.
Upon remeasurement of lease liability as above, corresponding adjustment is made out to the carrying amount of the right to use asset, or is recorded in the statement of profit & loss, when the carrying amount of the right to use asset is reduced to zero.
Where the Company is the lessor
The company determines at inception whether each lease is a finance lease or an operating lease. Where the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset, it is classified as a finance lease. If not, then as an operating lease. The lease payments received under operating leases as income on a straight-line basis over the lease term.
In case of a finance lease, at the commencement date, the company recognizes the assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease. Finance income will be recognized over the lease term, based on a pattern reflecting a constant periodic rate of return on the company''s net investment in the lease.
Mar 31, 2024
REPORTING ENTITY
S V Global Mill Ltd (S V Global or the Company) is a company registered under the erstwhile Companies Act, 1956 with its registered office at New No. 5/1, Old No. 3/1, 6th Cross Street, CIT Colony, Mylapore, Chennai -600004 and is also listed with the Bombay Stock Exchange Limited. The Company is engaged in the business of real estate.
BASIS OF PREPARATION Statement of Compliance
The Company adopted the Ind AS in preparation of the financial statements notified by the Ministry of Corporate Affairs vide Notification No. G.S.R. 111(E) dated 16th February 2015 as amended from time to time. Accordingly, the financial statements have been prepared in accordance with Indian Accounting Standards (''Ind AS'') as prescribed under section 133 of the Companies Act, 2013 (the "Act"), read together with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, relevant provisions of the Act and other accounting principles generally accepted in India.
The management has determined the currency of the primary economic environment in which the Company operates i.e., functional currency, to be Indian Rupees (INR). The financial statements are presented in Indian Rupees (''INR'') which is the Company''s functional currency and presentational currency.
The financial statements have been prepared on a historical cost basis, except otherwise stated.
Significant Estimates and Judgements
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes, requiring a material adjustment in the carrying amounts of assets or liabilities in the future periods. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.
i. Estimation of useful life of Property, Plant and Equipment and residual values
ii. Estimation and evaluation of provisions and contingencies
SIGNIFICANT ACCOUTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
Current and non-current classification
All assets and liabilities are classified into current and non-current.
An asset is classified as current when it satisfies any of the following criteria:
It is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;
ii. It is held primarily for the purpose of being traded;
iii. It is expected to be realised within 12 months after the reporting date; or
It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as noncurrent.
A liability is classified as current when it satisfies any of the following criteria:
. It is expected to be settled in the Company''s normal operating cycle;
ii. It is held primarily for the purpose of being traded;
iii. It is due to be settled within 12 months after the reporting date; or
There is no an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
iv. settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of financial liabilities some part of which may be non-current. All other liabilities are classified as non-current.
Deferred tax assets are classified as non-current assets.
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and non-current.
Property, Plant and Equipment Recognition and Measurement
Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of taxes, duties, freight, installation allocated incidental expenditure during construction / acquisition, borrowing cost and necessary adjustments in the year of final settlement. The cost of Property, Plant and Equipment also includes the present value of obligations arising, if any, from decommissioning, restoration and similar liabilities related to the same. The present value of those costs (decommission and/or restoration costs) is capitalised as an asset and depreciated over the useful life of the asset.
The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.
If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Capital work-in-progress includes assets under construction and cost attributable to construction of assets not ready for use before the year end.
Subsequent expenditure are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
Depreciation is provided on the cost of the property, plant and equipment less their estimated residual values over their estimated useful lives, and is recognized in the Statement of Profit and Loss. The company depreciates property, plant and equipment as per guidance set out in Schedule II of the Companies Act, 2013 on written down value (WDV) method except in respect of the assets mentioned (II) below.Items of Property, Plant and Equipment are depreciated over the useful life as provided below:
|
Sl. No |
Category |
Useful Life |
|
1 |
Buildings |
60 |
|
2 |
Computer & Computer Accessories |
3 |
|
3 |
Electrical Equipments |
5 |
|
4 |
Furniture & Fixtures |
5 |
|
5 |
Motor Vehicles |
8 |
|
6 |
Office Equipments |
5 |
|
7 |
Plant and Machinery |
5 |
Land and building held as Stock-in-Trade for Property Development is stated at lower of cost and net realizable value.
II. Assets costing up to INR 5,000 are depreciated fully in the Year of Purchase
III. In the year of commissioning/retirement of assets, depreciation is calculated on pro-rata basis,
IV. for the period the asset is available for use
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial AssetInitial Recognition and Measurement
All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets are initially measured at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
The company classifies its financial assets in the following categories
i. Financial Assets at amortised cost
ii. Financial Assets measured subsequently at fair value (either through other comprehensive income, or through profit or loss)
The classification depends upon the company''s business model for managing the financial assets and the contractual cash flows of the financial asset.
A financial asset being ''debt instrument'' is measured at the amortised cost if both of the following conditions are met:
1. The financial asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
2. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A financial asset is measured at Fair Value through Other Comprehensive Income (FVTOCI), if both of the following conditions are met:
i. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
ii. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Assets that do not meet the criteria for amortised cost or Fair Value through Other Comprehensive Income (FVTOCI) are measured at Fair Value through Profit or Loss (FVTPL).
The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at fair value. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss.
Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss.
Financial assets at FVTOCI or FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in OCI or the statement of profit and loss as the case may be. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss. Dividends/Interest Income from such investments are recognised in profit or loss as other income when the Company''s right to receive payments is established.
The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.
For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance computed using ECL model, is recognised as an impairment gain or loss in the statement of profit and loss.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVTOCI are not reported separately. Where the Company elects to measure FVTPL, changes in the fair value of such financial assets are recognised in the statement of profit and loss.
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any gain or loss on derecognition is recognised in the statement of profit and loss.
Financial LiabilityRecognition and initial measurement
All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.
Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost. Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expenses are recognised in the statement of profit and loss.
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.
Any gain or loss on derecognition is also recognised in the statement of profit and loss.
Financial assets and financial liabilities are offset and the net amount presented in the Balance Sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.
3.5 Investment in subsidiaries / associates:
Investment in subsidiaries / associates is measured at cost less provision for impairment.
Cash flows are reported using the indirect method, whereby profit/(loss) before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, financing and investing activities of the Company are segregated.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.
3.8 Impairment of non-financial assets
The carrying amounts of the Company''s non-financial assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the Company estimates the asset''s recoverable amount. Impairment losses are provided for Cash Generating Units (CGU) and also for individual assets.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount and is recognised in the Statement of Profit & Loss
"On review of impairment loss at the end of each reporting period, if the carrying value of an individual asset increases, reversal of impairment loss is made to the extent that it does not exceed the carrying amount of such asset. In case of a CGU, reversal of impairment loss, if any, is allocated pro rata to the individual assets of the CGU."
3.9 Prior period items, accounting estimates and effect of change in Accounting Policy
Prior period errors of material nature, are corrected retrospectively by restating the comparative amounts for the prior period(s) presented in which the error occurred or if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.
The effect of change in accounting estimate is recognised prospectively in the Statement of Profit and Loss except where they relate to assets and liabilities, the same is recognised by adjusting the carrying amount of related assets/liability/equity in the period of change.
Changes in accounting policy due to initial application of Ind AS are dealt with in accordance with specific transitional provisions, if any in the Ind AS. In other cases, the changes in accounting policy are recognised retrospectively, the application of such change is limited to the earliest period practicable.
3.10 Events occurring after the balance sheet date
Events occurring after the balance sheet date are those events that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors. Such events are disclosed or given effect to in the financial statements as provided for in Ind AS 10.
Revenue is recognized to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue should be recognised initially at transaction price when the entity satisfies the performance obligation.
Revenue from cancellation of contracts
Revenue from cancellation of contracts in the usual course of real estate business is recognised when the compensation/interest/fee payable to the company is determined and agreed between the parties.
Revenue includes revenue earned through rental of company''s properties invoiced for fixed monthly charges or on time proportionate basis.
Interest income from debt instruments is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying value of a financial asset. While 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.
Dividend income is recognized in the Profit and Loss account when the right to receive the same is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be reliably measured.
Sale proceeds of scrap are taken to other non-operating income in the year of disposal.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences in respect of long-term foreign currency liabilities of the respective asset to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs (net of interest earned on temporary investments) directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Interest is computed on weighted average cost of funds deployed.
All other borrowing costs are expensed in the year in which they occur
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Income tax expense comprises current and deferred tax. It is recognized in profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for:
i. temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit and loss;
ii. temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
Minimum Alternative Tax (''MAT'') expense under the provisions of the Income-tax Act, 1961 is recognised as an asset when it is probable that future economic benefit associated with it in the form of adjustment of future income tax liability, will flow to the Company and the asset can be measured reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company becomes liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting date and is written down to reflect the amount that is reasonably certain to be set off in future years against the future income tax liability.
The Company presents basic and diluted earnings/ (loss) per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.
3.15 Provisions and Contingencies Provisions
A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation.
Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered as Contingent Liabilities unless converted into demand.
Contingent assets are neither recognized nor disclosed in the financial statements.
The operating segments used to present segment information are identified on the based on the information reported to the Board of Directors who is chief operating decision maker (CODM) for the purposes of resources allocation and assessment of segment performance. The operating segments have been identified on the basis of the nature of products / services. Revenue directly attributable to the segments is considered as segment revenue. Expenses directly attributable to the segments and common expenses allocated on a reasonable basis are considered as segment expenses
3.17 LeasesDetermination whether a contract contains a lease
The company assesses whether a contract is, or contains, a lease at the inception of a contract.
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 the arrangement that contains a lease, the payments and other consideration required by such an arrangement are separated into those for the lease and those for other elements on the basis of their relative stand-alone prices.
Where the Company is the lessee Initial Recognition and Measurement
The Company recognises right to use asset and a lease liability at the lease commencement date.
Right to use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or restore the underlying asset or the site on which it is located, less any incentives received.
Lease liability is initially measured at the present value of the lease payments that are not paid at the commence date, discounted using the interest rate implicit in the lease of, if that rate cannot be readily determined, the company''s incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise the following:
i. Fixed payments, including in-substance fixed payments;
ii. Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
iii. Amounts expected to be payable under a residual value guarantee; and
iv. The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension period, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.
Right to use asset is subsequently depreciated using the written-down value method from the commencement date to the earlier of end of useful life of the right to use asset or the end of the lease term. The estimated useful lives of right to use assets are determined on the same basis as those of the property, plant and equipment. In addition, the right to use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurement of the lease liability.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in the future lease payments arising from a change in an index or rate, if there is a change in company''s estimate of the amount expected to be payable under a residual value guarantee, or if the company changes its assessment of whether it will exercise a purchase, extension or termination option.
Upon remeasurement of lease liability as above, corresponding adjustment is made out to the carrying amount of the right to use asset, or is recorded in the statement of profit & loss, when the carrying amount of the right to use asset is reduced to zero.
Where the Company is the lessor
The company determines at inception whether each lease is a finance lease or an operating lease. Where the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset, it is classified as a finance lease. If not, then as an operating lease.
The lease payments received under operating leases as income on a straight-line basis over
the lease term.
In case of a finance lease, at the commencement date, the company recognises the assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease. Finance income will be recognised over the lease term, based on a pattern reflecting a constant periodic rate of return on the company''s net investment in the lease.
Mar 31, 2018
1. SIGNIFICANT ACCOUTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing the opening Ind AS Balance Sheet as at 01st April 2016 for the purposes of the transition to Ind AS.
1.1. Current and non-current classification
All assets and liabilities are classified into current and non-current.
Assets
An asset is classified as current when it satisfies any of the following criteria:
- It is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating cycle;
- It is held primarily for the purpose of being traded;
- It is expected to be realised within 12 months after the reporting date; or
- It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the following criteria:
- It is expected to be settled in the Company''s normal operating cycle;
- It is held primarily for the purpose of being traded;
- It is due to be settled within 12 months after the reporting date; or
- There is no an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
Current liabilities include the current portion of financial liabilities some part of which may be noncurrent. All other liabilities are classified as non-current.
Deferred tax assets are classified as non-current assets.
Operating cycle
The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Based on the nature of operations and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period of 12 months for the purpose of classification of assets and liabilities as current and non-current.
3.2. Property, Plant and Equipment
Recognition and Measurement
Items of property, plant and equipment are measured at cost, less accumulated depreciation and accumulated impairment losses, if any. Cost of acquisition is inclusive of taxes, duties, freight, installation allocated incidental expenditure during construction / acquisition, borrowing cost and necessary adjustments in the year of final settlement. The cost of Property, Plant and Equipment also includes the present value of obligations arising, if any, from decommissioning, restoration and similar liabilities related to the same.
The present value of those costs (decommission and/or restoration costs) is capitalised as an asset and depreciated over the useful life of the asset.
The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located. If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Administration and general overhead expenses attributable to construction of property, plant and equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis to the cost of related assets.
Capital Work-in-Progress
Capital work-in-progress includes assets under construction and cost attributable to construction of assets not ready for use before the year end.
Subsequent Expenditure
Subsequent expenditure are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.
Depreciation
I. Depreciation is provided on the cost of the property, plant and equipment less their estimated residual values over their estimated useful lives, and is recognized in the Statement of Profit and Loss. The company depreciates property, plant and equipment as per guidance set out in Schedule II of the Companies Act, 2013 on written down value (WDV) method except in respect of the assets mentioned (ii) below
II. Assets costing up to INR 5,000 are depreciated fully in the year of purchase.
III. In the year of commissioning/retirement of assets, depreciation is calculated on pro-rata basis, for the period the asset is available for use.
Derecognition
The gain or loss arising from the derecognition of an item of property, plant and equipment is be included in the Statement of Profit and Loss.
3.3. Inventories
Land held as Stock-in-Trade for Property Development is stated at lower of cost and net realizable value.
3.4. Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial Asset
Initial Recognition and Measurement
All financial assets are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial assets are initially measured at fair value plus or minus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Classification
The company classifies its financial assets in the following categories
- Financial Assets at amortised cost
- Financial Assets measured subsequently at fair value (either through other comprehensive income, or through profit or loss)
The classification depends upon the company''s business model for managing the financial assets and the contractual cash flows of the financial asset.
Debt Instruments
A financial asset being ''debt instrument'' is measured at the amortised cost if both of the following conditions are met:
- The financial asset is held within a business model whose objective is to hold assets for 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 on the principal amount outstanding.
Assets that do not meet the criteria for amortised cost or Fair Value through Other Comprehensive Income (FVOCI) are measured at Fair Value through Profit or Loss (FVTPL).
Equity Instruments
The Company subsequently measures all investments in equity (except of the subsidiaries/associate) at fair value. Where the company''s management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss.
Subsequent Measurement
Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss.
Financial assets at FVOCI or FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in OCI or the statement of profit and loss respectively. Dividends/Interest Income from such investments are recognised in profit or loss as other income when the Company''s right to receive payments is established.
Impairment
The Company recognizes loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL.
For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition, in which case those financial assets are measured at lifetime ECL. The changes (incremental or reversal) in loss allowance computed using ECL model, is recognised as an impairment gain or loss in the statement of profit and loss.
Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately. Where the Company elects to measure FVTPL, changes in the fair value of such financial assets are recognised in the statement of profit and loss.
Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. Any gain or loss on derecognition is recognised in the statement of profit and loss.
Financial Liability
Recognition and initial measurement
All financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. All financial liabilities are initially measured at fair value minus, in the case of financial liabilities not recorded at fair value through profit or loss, transaction costs that are attributable to the liability.
Classification and subsequent measurement
Financial liabilities are classified as measured at amortised cost. Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expenses are recognised in the statement of profit and loss.
Derecognition
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.
Any gain or loss on derecognition is also recognised in the statement of profit and loss.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the Balance Sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.
3.5. Investment in subsidiaries / associates:
Investment in subsidiaries / associates are measured at cost less provision for impairment.
3.6. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand, short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
3.7. Impairment of non-financial assets:
The carrying amounts of the Company''s non-financial assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the Company estimates the asset''s recoverable amount..
Impairment losses are provided for Cash Generating Units (CGU) and also for individual assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount and is recognised in the Statement of Profit & Loss
On review of impairment loss at the end of each reporting period any decrease in or non-existence of impairment loss are recognised
3.8. Prior period items, Accounting estimates and effect of change in Accounting Policy
Prior period errors of material nature, are corrected retrospectively by restating the comparative amounts for the prior period(s) presented in which the error occurred or if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.
The effect of change in accounting estimate is recognised prospectively in the Statement of Profit and Loss except where they relate to assets and liabilities, the same is recognised by adjusting the carrying amount of related assets/liability/equity in the period of change.
Changes in accounting policy due to initial application of Ind AS are dealt with in accordance with specific transitional provisions, if any in the Ind AS. In other cases, the changes in accounting policy are recognised retrospectively, the application of such change is limited to the earliest period practicable.
3.9. Events occurring after the balance sheet date
Events occurring after the balance sheet date are those events that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors. Such events are disclosed or given effect to in the financial statements as provided for in Ind AS 10.
3.10. Revenue
Revenue is recognized to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Revenue from sale is recognized when significant risks and rewards of ownership are transferred to the customers. Revenue is measured at the fair value of the consideration received/receivable net of discounts
Revenue from cancellation of contracts
Revenue from cancellation of contracts in the usual course of real estate business is recognised when the compensation/interest/fee payable to the company is determined and agreed between the parties.
Revenue from Rentals
Revenue includes revenue earned through rental of company''s properties invoiced for fixed monthly charges or time proportionate basis.
Interest Income
Interest income from debt instruments is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying value of a financial asset. While 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.
Dividend
Dividend income is recognized in the Profit and Loss account when the right to receive the same is established, it is probable that the economic benefits associated with the dividend will flow to the Company, and the amount of dividend can be reliably measured.
Others
Sale proceeds of scrap are taken into other non-operating income in the year of sale.
3.11. Borrowing Costs
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences in respect of long term foreign currency liabilities of the respective asset to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs (net of interest earned on temporary investments) directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. Interest is computed on weighted average cost of funds deployed.
All other borrowing costs are expensed in the year in which they occur
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
3.12. Income Taxes
Income tax expense comprises current and deferred tax. It is recognized in profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.
Current tax
Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.
Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.
Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognized for:
- temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit and loss;
- temporary differences related to investments in subsidiaries to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognized deferred tax assets are reassessed at each reporting date and recognized to the extent that it has become probable that future taxable profits will be available against which they can be used. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
Minimum Alternate Tax
Minimum Alternative Tax (''MAT'') expense under the provisions of the Income-tax Act, 1961 is recognised as an asset when it is probable that future economic benefit associated with it in the form of adjustment of future income tax liability, will flow to the Company and the asset can be measured reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company becomes liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting date and is written down to reflect the amount that is reasonably certain to be set off in future years against the future income tax liability.
3.13. Earnings per Share
The Company presents basic and diluted earnings/ (loss) per share (EPS) data for its equity shares. Basic EPS is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year.
3.14. Provisions and Contingencies Provisions
A provision is recorded when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated. The estimated liability for product warranties is recorded when products are sold based on technical evaluation.
Contingent liabilities
Wherever there is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability. Show cause notices are not considered as Contingent Liabilities unless converted into demand.
Contingent Assets
Contingent assets are neither recognized nor disclosed in the financial statements.
3.15. Segment Reporting
Information reported to the Board of Directors who is chief operating decision maker (CODM) for the purposes of resources allocation and assessment of segment performance focuses on the types of services provided.
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker.
3.16. Leases
Determination whether an arrangement contains a lease
The determination of whether an arrangement is, or contains, a lease is based on the substance of an arrangement at inception date: whether fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement.
At inception or on reassessment of the arrangement that contains a lease, the payments and other consideration required by such an arrangement are separated into those for the lease and those for other elements on the basis of their relative fair values.
Where the Company is the lessee
Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of profit and loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.
Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of profit and loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Property, Plant and Equipment acquired under finance leases is depreciated over the asset''s useful life or over the shorter of the asset''s useful life and the lease term, if there is no reasonable certainty that the Company will obtain ownership at the end of the lease term.
Where the Company is the lessor
Leases in which the Company does not transfer substantially all the risks and rewards incidental to ownership of the asset are classified as operating leases. Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the Balance Sheet based on their nature.
Mar 31, 2016
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared under the historical cost convention on accrual basis, in accordance with Generally Accepted Accounting Principles and the applicable Accounting Standards notified under section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014 in the principles of a going concern. The accounting policies adopted in the preparation of the financial statements are consistent with those of the previous year.
2. USE OF ESTIMATES
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes, requiring a material adjustment in the carrying amounts of assets or liabilities in the future periods. Difference between the actual results and estimates are recognized in the period in which the results are known or materialized.
3. INVENTORIES
Land and Buildings held as Stock-in-Trade for Property Development are stated at lower of cost and net realizable value.
4. REVENUE RECOGNITION
Revenue is recognized to the extent that it is probable that economic benefits will flow to the company and the revenue can be reliably measured. Sales and other income are accounted on accrual basis. Revenue from sale is recognized when significant risks and rewards of ownership are transferred to the customers. Dividend income is recognized when the right to receive the same is established. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate.
5. FIXED ASSETS AND DEPRECIATION
i. Fixed Assets are stated at cost (net of CENVAT / TNVAT wherever applicable) inclusive of expenses directly relating to bringing the asset to its working condition for the intended use, less accumulated depreciation. Interest on borrowing utilized for acquisition of fixed assets is capitalized and considered as cost of the asset concerned if capitalization criteria are met.
ii. Depreciation is provided on Written Down Value method in accordance with Schedule II of the Companies Act, 2013.
6. INVESTMENTS
Long term investments are stated at cost. Diminution in the value of investments other than temporary in nature is provided for.
7. BORROWING COSTS
Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of the cost of such assets up-to the date when such assets are ready for intended use. Other borrowing costs are charged as an expense in the year in which they are incurred.
8. SEGMENT REPORTING
Property development is the main business of this company and this is the only reportable segment.
9. LEASES
Leases in which the company does not transfer substantially all the risks and benefits of ownership of the asset are classified as operating leases. Lease rental received in respect of operating lease arrangements are recognized as income in the Statement of Profit and Loss on a straight line basis over the lease term.
10. TAXES ON INCOME
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be realized in the future. In situations where the company has unabsorbed depreciation or carried forward losses for tax purposes, deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each reporting date. The company writes-down the carrying amount of deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets.
11. MAT CREDIT
Minimum alternate tax (MAT) payable in a year is charged to the statement of profit and 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 specified 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 Alternative 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 at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.
12. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period
13. IMPAIRMENT OF ASSETS
All assets other than inventories are reviewed for impairment at every balance sheet date for events or changes in circumstances that indicate that the carrying amount may not be recoverable. There is no impairment loss during the year.
14. PROVISION AND CONTINGENCIES
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are not recognized but disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
Terms/Rights attached to various classes of Shareholders
Equity Shareholders:
Every shareholder is entitled to such rights as to attend the meeting of the shareholders, to receive dividend distributed and also has a right in the residual interest in the assets of the Company. Every shareholder is also entitled to right of inspection of documents as provided in the Companies Act, 2013.
Preference Shareholders:
Every shareholder is entitled to the fixed rate of dividend (cumulative) as per the terms of issue. They are entitled to the capital in preference to the equity shareholders in case of liquidation.
Terms of Issue and Redemption of Cumulative Redeemable Preference Shares: (CRPS)
Mar 31, 2014
1. CORPORATE INFORMATION
S V Global Mill Limited was incorporated on 30th October 2007 under the
Companies Act, 1956. The company is engaged in the business of property
development.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared under the historical cost
convention on accrual basis, in accordance with Generally Accepted
Accounting Principles and the applicable Accounting Standards in the
principles of a going concern.
3. USE OF ESTIMATES
The preparation of financial statements requires estimates and
assumption to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known or materialized.
4. INVENTORIES
Land and Buildings held as Stock-in-Trade for Property Development are
stated at lower of cost and net realizable value.
5. REVENUE RECOGNITION
Sales and other income are accounted on accrual basis. Revenue from
sale of goods is recognized when significant risks and rewards of
ownership are transferred to the customers. Dividend income is
recognized when the right to receive the same is established.
6. FIXED ASSETS AND DEPRECIATION
i. Fixed Assets are stated at cost (net of CENVAT / TNVAT wherever
applicable) inclusive of expenses directly relating to installation,
less accumulated depreciation. Interest on borrowing utilized for
acquisition of fixed assets is capitalized and considered as cost of
the asset concerned.
ii. Depreciation is provided on Written Down Value method in accordance
with Schedule XIV of the Companies Act, 1956.
7. INVESTMENTS
Long term investments are stated at cost. Diminution in the value of
investments other than temporary in nature is provided for. Current
investments are stated at cost or fair value, whichever is lower.
8. BORROWING COSTS
Borrowing costs attributable to the acquisition, construction or
production of qualifying assets are capitalized as a part of the cost
of such assets up-to the date when such assets are ready for intended
use. Other borrowing costs are charged as an expense in the year in
which they are incurred.
9. SEGMENT REPORTING
By virtue of approved scheme of demerger by the High Court of Madras,
the Property Division of Binny Limited got demerged and stands
transferred to and vested in this company on a going concern basis. The
entire operation is from the appointed date, i.e. 01 -01 -2010.
Property Development is the main business of this company and this is
the only reportable segment.
10. LEASES
Lease rental in respect of operating lease arrangements are credited to
income in the Statement of Profit and Loss.
11. TAXES ON INCOME
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date.
Deferred tax asset is recognized and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
the future.
12. IMPAIRMENT OF ASSETS
All assets other than inventories are reviewed for impairment at every
balance sheet date for events or changes in circumstances that indicate
that the carrying amount may not be recoverable. There is no impairment
loss during the year.
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of '' resources.
Contingent liabilities are not recognized but disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2013
(i) SYSTEM OF ACCOUNTING
The financial statements are prepared under the historical cost
convention in accordance with Indian Generally Accepted Accounting
Principles (GAAP).The financial statements comply with the applicable
mandatory Accounting Standards.
(ii) Revenue Recognition
Revenue is recognized on accrual basis with provision made for known
losses and expenses. (iii) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation.
(iv) Depreciation
Depreciation is provided on Written Down Value Method at the rates
specified in SCHEDULE XIV to the Companies act, 1956.
(v) Investments
Long Term Investment is stated at cost. The diminution in value of
investment is not recognized unless it is considered permanent.
Land and Buildings held as Stock - in - Trade for Property Development
are stated at the lower of cost and net realizable value.
(vi) Foreign Currency Transactions
There are no foreign currency transactions during the period.
(vii) Provision for Taxation
Provision for Current Income Tax is not made in view of the loss for
the current period. Deferred tax assets and liabilities are measured
using substantially enacted tax rates as on the Balance Sheet date. The
Net Deferred Tax Asset is not recognized as a measure of prudence.
(viii) Cash Flow Statement
The Cash flow statement is prepared under the indirect method as per
accounting standard 3- Cash Flow Statements.
(ix) Earnings per Share
The company reports basic and diluted earnings per share in accordance
with the accounting standards 20- Earnings per share.
(x) Segment Reporting
By virtue of approved Scheme of the Demerger, by the High Court of
Madras, the Property Division of the Binny Limited got demerged and
stand transferred to and vested in this company on a going concern
basis. The entire operation is from the date of appointed date that is
with effect from 01 -01-2010. Property Division of Binny Limited is the
main business of this company and this is the only reportable segment.
(xi) Provision and Contingencies
The Company creates a provision when there is 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 amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
Mar 31, 2012
1. SYSTEM OF ACCOUNTING
The financial statements are prepared under the historical cost
convention in accordance with Indian Generally Accepted Accounting
Principles (GAAP).The financial statements comply with ,, / the
applicable mandatory Accounting Standards.
2. Revenue Recognition
Revenue is recognized on accrual basis with" provision made for known
losses and expenses.
3." Fixed Assets * -.
"Fixed assets are stated at cost less accumulated depreciation.
4. Depreciation
Depreciation is provided on Written Down Value Method at the rates
specified in SCHEDULE XIV to the Companies- act, 1956. .
5. Investments
Long Term investment is stated at cost. The diminution in value of
investment is not recognized unless it is considered permanent. ''
6. Inventories
Land and Buildings held as Stock - in - Trade for Property Development
are stated at the lower of cost and net realizable value.
7. Foreign Currency Transactions
There are no foreign currency transactions during the year.
8. Provision for Taxation
Provision for Current Income Tax is pot made in view of the loss for
the current period. Deferred tax assets and liabilities are measured
using substantially enacted tax rates as on the Balance Sheet date. The
Net Deferred Tax Asset is not recognized as a measure of prudence.
9. Cash Flow Statement
The Cash flow statement is prepared under the indirect method as per
accounting standard 3 -Cash Flow Statements.
10. Earnings per Share
The company reports basic and diluted earnings per share in accordance
with the accounting standards 20- Earnings per share.
11. Segment Reporting
By virtue of approved Scheme of the Demerger, by the High Court of
Madras, the Property Division of .the Binny Limited got demerged and
stand transferred to and vested in this company on a going concern
basis.The entire operation is from the date of appointed date that is
with effect from 01-01- 2010. Property Division of Binny Limited is the
main business of this company and this is the only reportable segment.
12. Provision and Contingencies
The Company creates a provision when there is 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 amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will npt require an
odtflow of resources or where a reliable estimate of the obligation
cannot be made.
Mar 31, 2011
1. SYSTEM OF ACCOUNTING
The financial statements are prepared under the historical cost
convention in accordance with Indian Generally Accepted Accounting
Principles (GAAP). The financial statements comply with the applicable
mandatory Accounting Standards.
2. REVENUE RECOGNITION
Revenue is recognized on accrual basis with provision made for known
losses and expenses.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation.
4. DEPRECIATION
Depreciation is provided on Written Down Value method at the rates
specified in SCHEDULE XIV to the Companies Act, 1956.
5. INVESTMENTS
Long Term Investment is stated at cost. The diminution in value of
investment is not recognized unless it is considered permanent.
6. INVENTORIES
Land and Buildings held as Stock-in-trade for Property Development are
stated at the lower of cost and net realizable value.
7. FOREIGN CURRENCY TRANSACTIONS
There are no Foreign currency transactions during the year.
8. PROVISION FOR TAXATION
Provision for Current Income Tax is not made in view of the loss for
the current period. Deferred tax assets and liabilities are measured
using substantially enacted tax rates as on the Balance Sheet date.
The Net Deferred Tax Asset is not recognized as a measure of prudence.
9. CASH FLOW STATEMENT
The Cash flow statement is prepared under the indirect method as per
Accounting Standard 3 "Cash Flow Statements".
10. EARNINGS PER SHARE
The company reports basic and diluted earnings per share in accordance
with the Accounting Standards - 20-''Earnings per Share''.
11. SEGMENT REPORTING
By virtue of approved Scheme of the Demerger, by the High Court of
Madras, the Property Division of the Binny Limited got demerged and
stand transferred to and vested in this company on a going concern
basis. The entire operation is from the date of Appointed Date i.e.
with effect from 01-01- 2010. Property Division of Binny Limited is the
main business of this Company and this is the only reportable segment.
12. PROVISION AND CONTINGENCIES
The company creates a provision when there is 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 amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
Mar 31, 2010
1. SYSTEM OF ACCOUNTING
The financial statements are prepared under the historical cost
convention in accordance with Indian Generally Accepted Accounting
Principles (GAAP). The financial statements comply with the applicable
mandatory Accounting Standards.
2. REVENUE RECOGNITION
Revenue is recognized on accrual basis with provision made for known
losses and expenses.
3. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation.
4. DEPRECIATION
Depreciation is provided on Written Down Value method at the rates
specified in SCHEDULE XIV to the Companies Act, 1956.
5. INVESTMENTS
Long Term Investment is stated at cost. The diminution in value of
investment is not recognized unless it is considered permanent.
6. INVENTORIES
Land and Buildings held as Stock-in-trade for Property Development are
stated at the lower of cost and net realizable value.
7. FOREIGN CURRENCY TRANSACTIONS
There are no Foreign currency transactions during the year.
8. PROVISION FOR TAXATION
Provision for Current Income Tax is not made in view of the loss for
the current period. Deferred tax assets and liabilities are measured
using substantially enacted tax rates as on the Balance Sheet date.
The Net Deferred Tax Asset is not recognized as a measure of prudence.
9. CASH FLOW STATEMENT
The Cash flow statement is prepared under the indirect method as per
Accounting Standard 3 "Cash Flow Statements".
10. EARNINGS PER SHARE
The company reports basic and diluted earnings per share in accordance
with the Accounting Standards - 20-''Earnings per Share''.
11. SEGMENT REPORTING
In terms of Sanctioned Scheme of the Demerger, by the High Court of
Madras, the Property Division of the Binny Limited got demerged and
stand transferred to and vested in this company on a going concern
basis. The entire operation is from the date of Appointed Date i.e.
with effect from 01-01- 2010. Presently property division is the only
reportable segment.
12. PROVISION AND CONTINGENCIES
The company creates a provision when there is 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 amount of obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that probably will not require an
outflow of resources or where a reliable estimate of the obligation
cannot be made.
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