Accounting Policies of Vas Infrastructure Ltd. Company

Mar 31, 2024

Note 2 - Statement of Significant Accounting Policies

The Company has prepared financial statements for the year ended March 31, 2024
in accordance with Indian Accounting Standards (Ind AS) notified under the
Companies (Indian Accounting Standards) Rules, 2015 (as amended) read with
Section 133 of the Companies Act, 2013, (the ‘Act’) and other relevant provision of
the act together with the comparative data as at and for the year ended March 31,
2023.

The financial statements are presented in Indian Rupees which is the functional
currency of the company All the financials information is presented in Indian
rupees and are rounded to the nearest rupees in lakhs except when otherwise
indicated.

2.1 Basis of preparation

The financial statements have been prepared on the historical cost basis, except
for:

(i) certain financial instruments that are measured at fair values at the end of each
reporting period;

(ii) defined benefit plans - plan assets that are measured at fair values at the end of
each reporting period, as explained in the accounting policies below. Historical cost
is generally based on the fair value of the consideration given in exchange for goods
and services.

The Company has consistently applied the following accounting policies to all
periods presented in these financial statements.

a) Use of estimates and judgements

The preparation of Company’s financial statements in conformity with the
recognition and measurement principles of Ind AS requires management of the
Company to make estimates and judgements that affect the reported balances of
assets and liabilities, disclosures of contingent liabilities as at the date of company
financial statements and the reported amounts of income and expenses for the

periods presented. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimates are revised and future periods are affected. The Company uses
the following critical accounting estimates in preparation of its standalone financial
statements:

b) Current versus non-current classification

Assets and Liabilities are classified as current or non - current, inter-alia
considering the normal operating cycle of the company’s operations and the
expected realization/settlement thereof within 12 months after the Balance
Sheet date.

Deferred tax assets and liabilities are classified as non-current assets and
liabilities.

c) Fair value measurement

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

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

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

The principal or the most advantageous market must be accessible by the
Company.

The fair value of an asset or a liability is measured using the assumptions that
market participants would use when pricing the asset or liability, assuming
that market participants act in their economic best interest.

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

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

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

• Level 2 — Valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a
recurring basis, the Company determines whether transfers have occurred
between levels in the hierarchy by re-assessing categorisation (based on the

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lowest level input that is significant to the fair value measurement as a whole)
at the end of each reporting period.

d) Revenue recognition

Revenue from contracts with customers is recognised when control of the goods
or services are transferred to the customer at an amount that reflects the
consideration to which the Company expects to be entitled in exchange for
those goods or services.

The Company has generally concluded that it is the principal in its revenue
arrangements, since it is the primary obligor in all of its revenue arrangement,
as it has pricing latitude and is exposed to inventory and credit risks.

Revenue is stated net of goods and service tax and net of returns, chargebacks,
rebates and other similar allowances. These are calculated on the basis of
historical experience and the specific terms in the individual contracts.

In determining the transaction price, the Company considers the effects of
variable consideration, the existence of significant financing components,
noncash consideration, and consideration payable to the customer (if any).

The Company estimates variable consideration at contract inception until it is
highly probable that a significant revenue reversal in the amount of cumulative
revenue recognised will not occur when the associated uncertainty with the
variable consideration is subsequently resolved.

Royalties: Royalty revenue is recognised on an accrual basis in accordance
with the substance of the relevant agreement (provided that it is probable that
economic benefits will flow to the Company and the amount of revenue can be
measured reliably). Royalty arrangements that are based on production, sales
and other measures are recognised by reference to the underlying arrangement.

e) Cash and cash equivalents

The Company considers all highly liquid investments, which are readily
convertible into known amounts of cash that are subject to an insignificant risk
of change in value, to be cash equivalents. Cash and cash equivalents consist of
balances with banks which are unrestricted for withdrawal and usage.

Interest: Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the applicable interest applicable.
Interest income is included under the head “Other income” in the statement of
profit & loss account.

Dividends: Dividend income is recognised when the Company’s right to receive
dividend is established by the balance sheet date.

f) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial
assets are held within a business whose objective is to hold these assets in
order to collect contractual cash flows and the contractual termsof the financial
assets give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

g) Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive
income if these Financial assets are held within a business whose objective is
achieved by both collecting contractual cash flows on specified dates that are
solely payments of principal and interest on the principal amount outstanding
and selling financial assets. The Company has made an irrevocable election to
present subsequent changes in the fair value of equity investments not held for
trading in other comprehensive income.

h) Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless they
are measured at amortised cost or at fair value through other comprehensive
income on initial recognition. The transaction costs directly attributable to the
acquisition of financial assets and liabilities at fair value through profit or loss
are immediately recognised in statement of profit and loss.

i) Income Tax.

Income tax expense consists of current and deferred tax. Income tax expense is
recognised in profit or loss except to the extent that it relates to items
recognised in OCI or directly in equity, in which case it is recognised in OCI or
directly in equity respectively

i. Current income tax

Current tax is the expected tax payable on the taxable profit for the year, using
tax rates enacted or substantively enacted by the end of the reporting period,
and any adjustment to tax payable in respect of previous years. Current tax
assets and tax liabilities are offset where the Company has a legally enforceable
right to offset and intends either to settle on a net basis, or to realise the asset
and settle the liability simultaneously. Current income tax assets and liabilities
are measured at the amount expected to be recovered from or paid to the
taxation authorities.

Current income tax relating to items recognised outside profit or loss is
recognised outside profit or loss (either in other comprehensive income or in
equity). Current tax items are recognised in correlation to the underlying
transaction either in OCI or directly in equity. Management periodically
evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes
provisions where appropriate.

The Govt, of India had issued the Taxation Laws (Amendment) Act 2019 which
provides Domestic Companies an option to pay corporate tax at reduced rates
from April 1, 2019 subject to certain conditions. The company intends to opt
for lower tax regime. No tax provision has been made for the year in view of
losses. The company has recognised consequential impact by reversing deferred
tax assets. -----

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ii, Deferred tax

Deferred tax is provided using the liability method on temporary differences
between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences,
except:

• When the deferred tax liability arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor taxable
profit or loss

• In respect of taxable temporary differences associated with investments in
subsidiaries and interests in joint ventures when the timing of the reversal of
the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future

Deferred tax assets are recognised for all deductible temporary differences and
the carry forward of any unused tax losses. Deferred tax assets are recognised
to the extent that it is probable that taxable profit will be available against
which the deductible temporary differences, and the carry forward of unused
tax losses can be utilised, except:

• When the deferred tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that
is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss

• In respect of deductible temporary differences associated with investments in
subsidiaries and interests in joint ventures deferred tax assets are
recognised only to the extent that it is probable that the temporary
differences will reverse in the foreseeable future and taxable profit will be
available against which the temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and
are recognised to the extent that it has become probable that future taxable
profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are
expected to apply in the }^?ear when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that have been enacted or
substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised
outside profit or loss (either in other comprehensive income or in equity).
Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

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 taxes relate to the same taxable entity and the same taxation
authority.

j) Property, plant and equipment

Plant and equipment is stated at cost of acquisition or constructions including
attributable borrowing cost till such assets are ready for their intended use,
less of accumulated depreciation and accumulated impairment losses, if any.
Cost of acquisition for the aforesaid purpose comprises its purchase price,
including import duties and other non-refundable taxes or levies and any
directly attributable cost of bringing the asset to its working condition for its
intended use, net of trade discounts, rebates and credits received if any.

Such cost includes the cost of replacing part of the plant and equipment and
borrowing costs for long-term construction projects if the recognition criteria
are met. When significant parts of plant and equipment are required to be
replaced at intervals, the Company depreciates them separately based on their
specific useful lives. Likewise, when a major inspection is performed, its cost is
recognised in the carrying amount of the plant and equipment as a
replacement if the recognition criteria are satisfied. All other repair and
maintenance costs are recognised in profit or loss as incurred.

Property Plant and equipment are eliminated from financial statements, either
on disposal or when retired from active use. Losses arising in case of retirement
of Property, Plant and equipment and gains or losses arising from disposal of
property, plant and equipment are recognised in statement of profit and loss in
the year of occurrence.

Depreciation is calculated on a straight-line basis over the estimated useful
lives of the assets. Useful lives used by the Company are same as prescribed
rates prescribed under Schedule II of the Companies Act 2013. The range of
useful lives of the property, plant and equipment are as follows:

k) Intangible Assets

Intangible assets acquired separately are measured on initial recognition at
cost. Following initial recognition, intangible assets are carried at cost less any
accumulated amortisation and accumulated impairment losses. Internally
generated intangibles are not capitalised and the related expenditure is
reflected in profit or loss in the period in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets with finite lives are amortised over the useful economic life
and assessed for impairment whenever there is an indication that the
intangible asset may be impaired. Intangible assets are amortised as follows:

> Software - 3 years

Software for internal use, which is primarily acquired from third-party vendors
and which is an integral part of a tangible asset, including consultancy charges
for implementing the software, is capitalised as part of the related tangible
asset. Subsequent costs associated with maintaining such software are
recognised as expense as incurred. The capitalised costs are amortised over the
lower of the estimated useful life of the software and the remaining useful life of
the tangible fixed asset.

l) Investments in the nature of equity in subsidiaries.

The Company has elected to recognise its investments in equity instruments in
subsidiaries and associates at cost in the separate financial statements in
accordance with the option available in Ind AS 27, ‘Separate Financial
Statements''.

m) Investment properties

Investment properties comprise portions of office buildings and residential
premises that are held for long-term rental yields and/or for capital
appreciation. Investment properties are initially recognised at cost.
Subsequently investment property comprising of building is carried at cost less
accumulated depreciation and accumulated impairment losses.

The cost includes the cost of replacing parts and borrowing costs for long-term
construction projects if the recognition criteria are met. When significant parts
of the investment property are required to be replaced at intervals, the Group
depreciates them separately based on their specific useful lives. All other repair
and maintenance costs are recognised in profit and loss as incurred.

Depreciation on building is provided over the estimated useful lives as specified
in Schedule II to the Companies Act, 2013. The residual values, useful lives
and depreciation method of investment properties are reviewed, and adjusted
on prospective basis as appropriate, at each financial year end. The effects of
any revision are included in the statement of profit and loss when the changes
arise.

Though the group measures investment property using cost based
measurement, the fair value of investment property is disclosed in the notes.

Investment properties are derecognised when either they have been disposed of
or when the investment property is permanently withdrawn from use and no
future economic benefit is expected from its disposal.

The difference between the net disposal proceeds and the carrying amount of
the asset is recognised in the statement of profit and loss in the period of
de-recognition.

n) Impairment of non-financial assets

The Company assesses, at each reporting date, whether there is an indication
that an asset may be impaired. If any indication exists, or when annual
impairment testing for an asset is required, the Company estimates the asset’s
recoverable amount. An asset’s recoverable amount is the higher of an asset’s
or cash-generating unit’s (CGU) fair value less costs of disposal and its value in
use. Recoverable amount is determined for an individual asset, unless the asset
does not generate cash inflows that are largely independent of those from other
assets or Company’s 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.

In assessing value in use, the estimated future cash flows are discounted to
their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market transactions are
taken into account. If no such transactions can be identified, an appropriate
valuation model is used.

Impairment losses of continuing operations, including impairment on
inventories, are recognised in the statement of profit and loss.

An assessment is made at each reporting date to determine whether there is an
indication that previously recognised impairment losses no longer exist or have
decreased. If such indication exists, the Company estimates the asset’s or
CGU’s recoverable amount. A previously recognised impairment loss is reversed
only if there has been a change in the assumptions used to determine the
asset’s recoverable amount since the last impairment loss was recognised. The
reversal is limited so that the canying amount of the asset does not exceed its
recoverable amount, nor exceed the canying amount that would have been
determined, net of depreciation, had no impairment loss been recognised for
the asset in prior years. Such reversal is recognised in the statement of profit or
loss.

o) Non- current Asset held for sale.

Non-current assets and disposal groups are classified as held for sale if their
canying amount will be recovered principally through a sale transaction rather
than through continuing use. This condition is regarded as met only when the
asset (or disposal group) is available for immediate sale in its present condition
subject only to terms that are usual and customary for sales of such asset (or
disposal group) and its sale is highly probable. Management must be
committed to the sale, which should be expected to qualify for recognition as a
completed sale within one year from the date of classification. Non-current
assets (and disposal groups) classified as held for sale are measured at the
lower of their carrying amount and fair value less costs to sell. Non-current
assets are not depreciated or amortised.

p) Borrowing costs:

a. Borrowing costs that are attributable to the acquisition, construction, or
production of a qualifying asset are capitalised as a part of the cost of such
asset till such time the asset is ready for its intended use or sale, A

qualifying asset is an asset that necessarily requires a substantial period of
time (generally over twelve months) to get ready for its intended use or sale.

b. All other borrowing costs are recognised as expense in the period in which
they are incurred.

q) Leases

The Company evaluates each contract or arrangement, whether it qualifies as
lease as defined under Ind AS 116.

The Company as a lessee:

The Company enters into an arrangement for lease of land, buildings, plant
and machinery including computer equipment and vehicles. Such
arrangements are generally for a fixed period but may have extension or
termination options. The Company assesses, whether the contract is, or
contains, a lease, at its inception. A contract is, or contains, a lease if the
contract conveys the right to

a) control the use of an identified asset,

b) obtain substantially all the economic benefits from use of the identified
asset, and

c) direct the use of the identified asset.

The Company determines the lease term as the non-cancellable period of a
lease, together with periods covered by an option to extend the lease, where the
Company is reasonably certain to exercise that option.

The Company at the commencement of the lease contract recognizes a
Right-of-Use (RoU) asset at cost and corresponding lease liability, except for
leases with term of less than twelve months (short term leases) and low-value
assets. For these short term and low value leases, the Company recognizes the
lease payments as an operating expense on a straight-line basis over the lease
term.

The cost of the right-of-use asset comprises the amount of the initial
measurement of the lease liability, any lease payments made at or before the
inception date of the lease, plus any initial direct costs, less any lease
incentives received. Subsequently, the right-of-use assets are measured at cost
less any accumulated depreciation and accumulated impairment losses, if any.
The right-of-use assets are depreciated using the straight-line method from the
commencement date over the shorter of lease term or useful life of right-of-use
asset. The estimated useful lives of right-of-use assets are determined on the
same basis as those of property, plant and equipment.

The Company applies Ind AS 36 to determine whether an RoU asset is impaired
and accounts for any identified impairment loss as described in the impairment
of non-financial assets below.

For lease liabilities at the commencement of the lease, the Company measures
the lease liability at the present value of the lease payments that are not paid at
that date. The lease payments are discounted using the interest rate implicit in
the lease, if that rate can be readily determined, if that rate is not readily
determined, the lease payments are discounted using the incremental
borrowing rate that the Company would have to pay to borrow funds, including
the consideration of factors such as the nature of the asset and location,
collateral, market terms and conditions, as applicable in a similar economic
environment.

After the commencement date, the amount of lease liabilities is increased to
reflect the accretion of interest and reduced for the lease payments made. The
Company recognizes the amount of the re-measurement of lease liability as an
adjustment to the right-of-use assets. Where the carrying amount of the
right-of-use asset is reduced to zero and there is a further reduction in the
measurement of the lease liability, the Company recognizes any remaining
amount of the re-measurement in statement of profit and loss. Lease liability
payments are classified as cash used in financing activities in the statement of
cash flows.

The Company as a lessor

Leases under which the Company is a lessor are classified as finance or
operating leases. Lease contracts where all the risks and rewards are
substantially transferred to the lessee, the lease contracts are classified as
finance leases. All other leases are classified as operating leases. For leases
under which the Company is an intermediate lessor, the Company accounts for
the head-lease and the sub-lease as two separate contracts. The sub-lease is
further classified either as a finance lease or an operating lease by reference to
the RoU asset arising from the head-lease.

r) Corporate Social Responsibility (CSR) Expenditure

CSR spend are charged to the statement of profit and loss as an expense in the
period they are incurred.

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Mar 31, 2015

A) Change in accounting policy

Presentation and disclosure of financial statements during the period of 18 months ended March 31, 2015 the Schedule III notified under the Companies Act, 2013, has become applicable to the Company for preparation and presentation of its financial statements. The adoption of Schedule III does not impact recognition and measurement principles followed by the Company for preparation of financial statements. However, it significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include computation of percentage completion for projects in progress, project cost, revenue and saleable area estimates, classification of assets and liabilities into current and non current, estimates of the economic useful lives of fixed assets, provisions for bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.

3) Tangible and intangible fixed assets

a) Tangible fixed assets

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

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

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

b) Depreciation on tangible fixed assets

During the 18 months ended 31st March, 2015, the company has revised the estimated useful life of all the assets with effect from 01-04-2014 taking the useful life as defined in Schedule-ll Parte of the Act. Consequently the company has fully depreciated the carrying value of assets, net of residual value, where the remaining useful life of the assets was determined as nil as on 1st April, 2014, and the same is disclosed in profit and loss account under depreciation.

Assets individually costing less than or equal to Rs.5,000/- are fully depreciated in the year of purchase.

c) Impairment of tangible and intangible assets

The Company assesses at each reporting date whether there is any indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an assets or cash generating units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual assets, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses, including impairment on inventories, are recognized in the statement of profit and loss.

After impairment deprecation is provided on the revised carrying amount of the asset over its remaining useful life.

4) Investments

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued.

5) Inventories

Related to contractual and real estate activity

Direct expenditure relating to construction activity is inventorised. Other expenditure (including borrowing costs) during construction period is inventorised to the extent the expenditure is directly attributable cost of bringing the asset to its working condition for its intended use. Other expenditure (including borrowing costs) incurred during the construction period which is not directly attributable for bringing the assets to its working condition for its intended use is charged to the statement of profit and loss. Direct and other expenditure is determined based on specific identification to the construction and real estate activity. Cost incurred/items purchased specifically for projects are taken as consumed as and when incurred/received.

6) Revenue recognition

Recognition of revenue from real estate projects

Revenue from real estate projects is recognized when it is reasonably certain that the ultimate collection will be made and that there is buyers commitment to make the complete payment. The Risk & reward is passed on to the Buyer.

In such cases, the revenue is recognized on percentage of completion method, when the following Criteria listed below are met Together & not Individually.

a) When the stage of completion of the project reaches a reasonable level of development. A reasonable level of development is not achieved if the expenditure incurred on construction and development costs is less than 25% of the construction and development costs.

b) At least 25% of the saleable project area is secured by contracts or agreements with buyers.

c) At least 10% of the total revenue as per the agreements of sale or any other legally enforceable documents are realized at the reporting date in respect of each of the contracts and it is reasonable to expect that the parties to such contracts will comply with the payments terms as defined in the contracts.

Revenue is recognized in proportion that the contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. Land costs are not included for the purpose of computing the percentage of completion. Interest Cost taken for specific project from Banks are taken into direct cost while estimating the project cost to be undertaken for the Project.

Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However if, at the time of transfer substantial acts are yet to be performed under the contract, revenue is recognised on proportionate basis as the acts are performed, i.e. on the percentage of completion basis. Income from long term contracting assignments is also recognised on the percentage of completion basis. As the long term contracts necessary extend beyond one year, revision in costs and revenues estimated during the course of the contract are reflected in the accounting period in which the facts requiring the revision become known.Unbilled costs are carried as construction work-in-progress.

Determination of revenue under the percentage of completion method necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project/activity and the foreseeable losses to completion. Such estimates have been relied upon by the auditors.

Note : The Guidance note on accounting of Real estate Transaction (Revised 2012.) issued by ICAI has Been followed for Projects Commenced after April 2012 or Projects Commenced before April 2012 but no Revenue from the project is recognized for the 18 month ended 31.03.2015.

All the Project except Pushp Vinod 1 are accounted based on the Revised Guidance note on Accounting of real estate transaction 2012 issued by the ICAI.

7) Interest Income

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

8) Taxes

Tax expense comprises of current and deferred tax.

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier year.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets 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 balance sheet date. The Company writes down the carrying amount of a 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.

Minimum Alternative tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of profit and loss and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

9) Retirement and other employee benefits

Retirement benefits in the form of provident fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss of the year when the contributions to the provident fund are due. There are no other obligations other than the contribution payable to the government administered provident fund.

Gratuity & other long terms benefits are accounted as per A S 15 Retirement benefits issued by the ICAI.

10) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue.

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

11) Provisions

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

12) Cash and Cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

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Sep 30, 2013

1) Corporate information

VAS INFRASTRUCTURE Limited (‘Company'' or ‘VIL'') was incorporated on February 11, 1994. VIL is a leading real estate developer engaged in the business of construction, development, sale, management and operation of all or any part of townships, housing projects, commercial premises and other related activities.

2) Basis of preparation

The financial statements have been prepared to comply in all material respects with the accounting standards notified by Companies (Accounting Standards) Rules 2006, (as amended) and the relevant provisions of the Companies Act, 1956 ("the Act"). The financial statements have been prepared under the historical cost convention on an accrual basis in accordance with accounting policies have been consistently applied by the Company and are consistent with those used in previous year, except for the change in accounting policy explained in note 2.1 (a) below.

2.1 Summary of significant accounting policies

a) Change in accounting policy

Presentation and disclosure of financial statements during the period of 18 months ended September 30, 2013 the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed by the Company for preparation of financial statements. However, it significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

b) Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting period. Although these estimates are based upon management`s best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the preparation of these financial statements include computation of percentage completion for projects in progress, project cost, revenue and saleable area estimates. classification of assets and liabilities into current and non current, estimates of the economic useful lives of fixed assets, provisions for bad and doubtful debts. Any revision to accounting estimates is recognized prospectively.

3) Tangible and intangible fixed assets

a) Tangible fixed assets

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

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

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

b) Depreciation on tangible fixed assets

Depreciation on assets, other than those described below, is provided using written down value method at the rates prescribed under Schedule XIV of the Companies Act, 1956, which is also estimated by the management to be the estimated useful lives of the assets.

Assets individually costing less than or equal to Rs.5,000/- are fully depreciated in the year of purchase

c) Impairment of tangible and intangible assets

The Company assesses at each reporting date whether there is any indication that an asset may be impaired. If any indication exists, the Company estimates the asset`s recoverable amount. An asset`s recoverable amount is the higher of an assets or cash generating units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual assets, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses, including impairment on inventories, are recognized in the statement of profit and loss.

After impairment deprecation is provided on the revised carrying amount of the asset over its remaining useful life.

NOTES TO THE FINANCIAL STATEMENTS FOR THE 18 MONTHS ENDED SEPTEMBER 30, 2013

4) Investments

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued.

5) Inventories

Related to contractual and real estate activity

Direct expenditure relating to construction activity is inventorised. Other expenditure (including borrowing costs) during construction period is inventorised to the extent the expenditure is directly attributable cost of bringing the asset to its working condition for its intended use. Other expenditure (including borrowing costs) incurred during the construction period which is not directly attributable for bringing the assets to its working condition for its intended use is charged to the statement of profit and loss. Direct and other expenditure is determined based on specific identification to the construction and real estate activity. Cost incurred/items purchased specifically for projects are taken as consumed as and when incurred/received.

6) Revenue recognition

Recognition of revenue from real estate projects

Revenue from real estate projects is recognized when it is reasonably certain that the ultimate collection will be made and that there is buyers commitment to make the complete payment. The Risk & reward is passed on to the Buyer.

In such cases, the revenue is recognized on percentage of completion method, when the following Criteria listed below are met Together & not Individually .

a) When the stage of completion of the project reaches a reasonable level of development. A reasonable level of development is not achieved if the expenditure incurred on construction and development costs is less than 25% of the construction and development costs.

b) At least 25% of the saleable project area is secured by contracts or agreements with buyers.

c) At least 10% of the total revenue as per the agreements of sale or any other legally enforceable documents are realized at the reporting date in respect of each of the contracts and it is reasonable to expect that the parties to such contracts will comply with the payments terms as defined in the contracts.

Revenue is recognized in proportion that the contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. Land costs are not included for the purpose of computing the percentage of completion. Interest Cost taken for specific project from Banks are taken into direct cost while estimating the project cost to be undertaken for the Project.

Income from real estate sales is recognised on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However if, at the time of transfer substantial acts are yet to be performed under the contract, revenue is recognised on proportionate basis as the acts are performed, i.e. on the percentage of completion basis. Income from long term contracting assignments is also recognised on the percentage of completion basis. As the long term contracts necessary extend beyond one year, revision in costs and revenues estimated during the course of the contract are reflected in the accounting period in which the facts requiring the revision become known. Unbilled costs are carried as construction work-in-progress.

Determination of revenue under the percentage of completion method necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project/activity and the foreseeable losses to completion. Such estimates have been relied upon by the auditors.

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Mar 31, 2011

1. LEGAL STATUS

The assessee is a Public Limited Company, formed vide Certificate of Incorporation dated 7th February 1994, P.A.No. AAACV3537A

2. BUSINESS ACTIVITY

The Assessee is into the Business of Acquisition of land and Development Construction & infrastructural activities. During the Previous Year Under Consideration the Assessee has Aquired various Projects in Connection with the Purchase of Land, Structure along with Land & Development thereon.

3. SIGNIFICANT ACCOUNTING POLICIES General:

The financial statements are prepared under the historical cost convention, on an accrual basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

Revenue Recognition:

The company is maintaining its books of accounts on mercantile system of accounting.

Pushpvinod Project.

a) The Revenue from the Real Estate Projects is Recognised in conformity with the prescribed Accounting Standard-9 revenue recognition of the Institute of Chartered Accountants of India.

Projects other than Pushpvinod.

The Company shall follow Revenue Recognition method (AS 9) issued by the ICAI, However in cases where Sales Consideration upto 90% is received & Sale agreement is executed & actual cost being 30% or more of the estimated cost of the individual ¦ project, the assessee shall follow AS 7 percentage of Completion method issued by the ICAI.]

During the previous year the company had two heads in the Balance sheet namely WIP & Project on hand, grouped under the head Current Assets. The Project on hand grouped under Current assets were transfered to WIP based on Commencement of the Work towards that project.

During the year under Consideration the Company has changed its policy of Bifurcation of projects into Two heads namely WIP & Projects on hand. During the current year the Opening balance in Project on hand a/c have been Transfered to WIP from the Profit & loss a/c & the same is reflected as WIP in the closing stock. The effect on Profit on account of this change is NIL.

b) Service Tax:

The Assessee is a Member of Maharashtra Chamber of Housing Society (Refered to as MCHI). Service tax is Collected @ 2.575% on Receipt or Sale which ever is earlier from Customers.

c) VAT:

During the year under Consideration, the Assessee has opted for the 1 % Composition scheme under VAT for its Pushpvinod Project. The tax effect of the same has been given in the books of accounts.

During the year under Consideration the assessee has Transfered to expenses Rs. 3931714.00, the same was reflected in VAT Receivable account under the Current Assets. In absence of Utilization of VAT Credit under the Composition scheme the same is transfered to Expenses under the Profit & Loss a/c.

During the year the Assessee has Commenced the Construction work at Pushpvinod 2 & Pushpvinod 3.

Fixed Assets:

Fixed Assets are stated at their historical cost, which includes expenditure incurred for their acquisition and installation.

Depreciation:

Depreciation on all the assets is calculated on Straight Line method at the rates specified in Schedule XIV to the Companies Act 1956.

Inventories :

Inventories are valued at lower of cost or net realizable value.

Taxation :

Deferred tax assets arising from timing difference are recognized to the extent there is reasonable certainty that these would be realized against future taxable profit.

Deferred tax is recognised subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods which is in conformity with the prescribed Accounting Standard-22 of the Institute of Chartered Accountants of India.

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Mar 31, 2010

The financial statements are prepared under the historical cost convention, on an accrual basis and on the accounting principles of a going concern. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

Revenue Recognition:

The company is maintaining its books of accounts on mercantile system of accounting.

a) The Revenue from the Real Estate Projects is Recognised in conformity with the prescribed Accounting Standard-9 revenue recognition of the Institute of Chartered Accountants of India, However, on conservative approach, revenue/Sales has been booked only for those registered sale agreements where amounts in excess of 90% of receivable, have been received till/ during the year under consideration. The accounts to this extent are not in confirmity with AS-9 as prescribed by the ICAI. The profits are lower to that extent.

b) Service Tax :

Effects of applicability of Service Tax on account of Recent Amendment In the Budget are not accounted for as necessary information and documentation was not made available for verification, However, the assessee has obtained undertaking from the proposed buyers for reimbursement of such taxes levied by the govt, from time to time. Hence impact on profit is NIL.

c) VAT:

During the year under Consideration, the Assessee has not Segregated VAT Credit on Inputs of Rawmaterial & has grouped the Same under the Purchases / Expenses, Hence the profits to the extent of unbifurcated Vat is lower.

In Absence of Clarity regards to VAT Applicability on the Construction Activity the Same is not provided in the books of accounts.

Fixed Assets :

Fixed Assets are stated at their historical cost, which includes expenditure incurred for their acquisition and installation.

Depreciation :

Depreciation on all the assets is calculated on Straight Line method at the rates specified in Schedule XIV to the Companies Act 1956.

Inventories :

Inventories are valued at lower of cost or net realizable value.

Taxation :

Deferred tax assets arising from timing difference are recognized to the extent there is reasonable certainty that these would be realized against future taxable profit.

Deferred tax is recognised subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods which is in conformity with the prescribed Accounting Standard-22 of the Institute of Chartered Accountants of India.