1. Basis of Accounting :
Financial statements are prepared under historical cost convention on
2. Revenue Recognition :
(i) The Company follows Completed Contract Method of accounting in
respect of its construction activities. The revenue on sale of
residential/commercial units is recognised in respect of such
buildings/units wherein the work is completed or is substantially
completed on the basis of technical estimate of the extent of work
completed up to the end of the period. The sales are stated in the
accounts net of Sales Returns.
(ii) The revenue in respect of Manufacturing Activities is recognised
at the time of despatch of the goods and are net of Sales Tax.
(iii) The revenue from Construction Contracts is recognised on the
basis of work certified by the Architect.
3. Cost of Sale :
(i) Construction :
Cost of sale is ascertained in respect of units on which revenue is
recognised during the period and is aggregate of proportionate cost of
land development rights, certified proportionate cost of construction
and a proportionate part of general administration, selling and finance
overheads allocated to respective projects. (Refer to Note No. 12 of
(ii) Manufacturing :
The cost of Sale of manufacturing items is ascertained by addition
adding cost of Raw Material, Labour Overheads and part of
Administrative and Finance Cost.
4. Fixed Assets :
Fixed Assets are stated at cost of acquisition less accumulated
5. Depreciation :
(i) Depreciation has been provided on the Straight Line Method at the
rates specified in Schedule XIV of the Companies Act, 1956 as amended
from time to time.
(ii) Depreciation on additions to and/or deletions from fixed assets
has been charged proportionately for the period for which they were
6. Inventories and Work-in-Progress :
(i) Construction materials and Raw Material for Manufacturing
Activities are valued at cost.
(ii) Work-in-Progress comprises of : In case of Construction Activity,
the cost of land development rights, construction, development costs
and a part of general administration, selling and finance costs and in
case of Manufacturing Activities, cost of Raw material, Labour
overheads and part of administration, finance cost.
(iii) Finished goods of Construction Activity and Manufacturing
Activities are valued at Cost or Net Realisable Value whichever is
(Cost comprising of: For Construction Activities; land development
rights, certified estimated cost of construction and development and
part of general administration, selling and finance cost and for
Manufacturing Activities; cost of Raw Material, Labour Overheads and
part of administration, finance cost.)
7. Administrative, Selling and Finance Costs :
A part of general administration, finance and selling overheads is
written off to Profit and Loss Account while rest of which is allocated
to specific projects on an proportionate basis and is carried forward
as part of the value of Inventory as certified by the management.
Finance Cost comprises of interest on borrowings, and bank commission
8. Investments :
Investments in Shares are valued at cost.
9. Amounts received from prospective customers:
Amounts received from Customers to whom specific unit is not yet
allotted are included in the head Advances from customers and grouped
under Current Liabilities.
10. Retirement Benefits:
(i) Contributions to Provident Fund are accounted on the basis of
actual liability as per terms of employment.
(ii) The Company contributes towards Group Gratuity Scheme of Life
Insurance Corporation of India.
11. Foreign Currency Transactions :
Transactions in foreign currencies are recorded at the exchange rates
prevailing on the date of transaction.