[A] SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Preparation of Financial Statements:
The Financial Statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards specified under section 133 of the
Companies Act, 2013, read with rule 7 of the Companies (Accounts)
Rules, 2014 and the relevant provisions of the Companies Act, 2013.
[i] The Accounts are prepared on the historical cost basis except for
certain assets which are revalued.
[ii] The Accounts are prepared on the principles of a going concern.
[iii] Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
[i] Revenue is recognised when it can be reliably measured and it is
reasonable to expect ultimate collection.
[ii] Revenue from Sale of Goods transactions (excluding transactions
for which Revenue recognition policy is specifically mentioned below)
is recognised when significant risks and rewards of ownership have been
transferred to the buyer and no significant uncertainty exists
regarding amount of consideration. Cement Sales / Clinker Sales/ Others
are net of Excise Duty/ Value Added Tax and exclusive of Self
[iii] Revenue from Sale of service transactions are recognised when no
significant uncertainty exists regarding the amount of consideration
that will be derived from rendering the service.
[iv] Advances received for Time Share Weeks are reckoned as income in
equal amounts spread over the Time Share period commencing from the
year in which full payment is received.
[v] Escalations/Claims are taken in the Accounts on the basis of
receipt or as acknowledged by the client depending upon the certainty
[vi] Revenue from Real Estate Development of constructed properties is
recognised based on the Percentage of completion method. Total sale
consideration as per the legally enforceable agreements to sell entered
into is recognised as revenue based on the percentage of actual project
costs incurred to total estimated project cost, subject to such actual
cost incurred being 30 percent or more of the total estimated project
cost. Project cost includes cost of land, estimated cost of
construction and development of such properties. The estimates of the
saleable area and costs are reviewed periodically and effect of any
changes in such estimates recognised in the period such changes are
determined. Where aggregate of the payment received from customers
provide insufficient evidence of their commitment to make the complete
payment, revenue is recognised only to the extent of payment received.
Revenue from sale / sub-lease of undeveloped land is recognized when
full consideration is received against agreement to sell / sub-lease,
all significant risks and rewards are transferred to the customer and
possession is handed over.
Revenue from sale / sub-lease of developed land / plot is recognised
based on the Percentage of completion method when a firm agreement
has been entered into and 30 percent or more of the consideration is
received and where no significant uncertainty exists regarding the
amount of the consideration that will be derived from such sales and it
is not unreasonable to expect ultimate collection, and all significant
risks and rewards are transferred to the customer.
The revenue in respect of projects undertaken on or after 1st April,
2012 or where the revenue is being recognised for the first time after
1st April, 2012 is recognised in accordance with the Guidance Note on
Accounting for Real Estate Transactions [Revised 2012] issued by
Institute of Chartered Accountants of India.
[vii] (a) The costs that are incurred before a construction contract is
secured are treated as expenses for the year in which these are
incurred and charged to revenue.
(b) The costs attributable to contracts are normally identified to
respective contracts. However, the costs which cannot be
identified/identifiable to a specified contract are charged to the
general revenue in the year in which such costs are incurred.
[viii] Dividend Income is recognized when right to receive payment is
[ix] Interest is recognised on a time proportion basis taking into
account the amount outstanding and the interest rate applicable.
[x] Royalties are accounted on accrual basis in accordance with the
terms of the relevant agreement.
Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities,
disclosure of contingent liabilities on the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Differences between actual results and estimates are
recognised in the period in which the results are known/materialised.
Fixed Assets are stated at Cost of acquisition or construction
inclusive of freight, erection & commissioning charges, duties and
taxes, expenditure during construction period, interest on borrowing
and financial costs up to the date of acquisition/ installation and net
of recoverable taxes. Major Expenditure in Hotel properties involving
relocation and redesigning of various outlets, guest floors and
additions thereto, enhancement in the value of assets and revenue
generating capacity is capitalised. Foreign Exchange Rate Difference on
long term monetary items arising on settlement or at reporting dates
attributable to Fixed Assets is capitalised/adjusted in the carrying
value of the Fixed Assets.
Depreciation & Amortisation:
[i] Depreciation on Tangible Fixed Assets is provided on Straight Line
Method depending on useful life of the assets as prescribed in
Schedule-II to the Companies Act, 2013.
[ii] Computer Softwares [Intangible Assets] is amortised over a period
of five years.
[iii] Premium on Lease-hold Land [except in case of perpetual lease] is
amortised over the period of lease.
Long term Investments are stated at Cost and where there is permanent
diminution in the value of investments a provision is made wherever
applicable. Current Investments are carried at lower of cost or quoted/
fair value, computed categorywise.
Employee Benefits are provided in the books as per AS -15 in the
following manner :
[i] The undiscounted amount of short term employee benefits expected to
be paid in exchange for the services rendered by employees are
recognised during the period when the employee render the services.
[ii] Provident Fund and Pension contribution - as a percentage of
salary/wages is a Defined Contribution Plan and is accounted on accrual
[iii] Gratuity and Leave Encashment is a Defined Benefit obligation.
The liability is provided for on the basis of actuarial valuation made
at the end of each financial year. The actuarial valuation is done as
per Projected Unit Credit method.
[i] Inventories are valued at Cost or Net Realisable Value whichever is
lower. Cost of Inventories comprises of cost of purchase, cost of
conversion and other costs incurred in bringing the inventories to
their present location and condition. Cost of Raw Materials,
Construction Materials, Stores & Spares, Packing Materials, Stock of
Food & Beverages, Operating Stores and supplies are determined on
Weighted Average basis.
[ii] Work-in-Progress/Stock-in-Process are valued at cost. In case of
Item Rate Contract work in progress is measured on the basis of
physical measurement of work actually completed as at the balance sheet
date. In case of cost plus contracts work in progress is taken as cost
not billed on the contractee.
[iii] Stock of Finished Goods lying in the factory premises includes
excise duty, pursuant to accounting standard [AS-2].
[iv] Goods-in-Transit at Cost incurred.
Project Under Development :
Project Under Development includes cost of Land purchased and other
costs incurred including internal development and external development
charges, construction cost, material cost, cost of services and other
Foreign Currency Transactions:
[i] Transactions denominated in Foreign Currency are recorded in the
Books of Account in Indian Rupees at the rate of exchange prevailing on
the date of transaction.
[ii] Monetary Assets and Liabilities related to Foreign Currency
transactions and outstanding, except assets and liabilities hedged by a
hedge contract, at the close of the year, are expressed in Indian
Rupees at the rate of exchange prevailing on the date of Balance Sheet.
The exchange difference arising either on settlement or at reporting
date is recognised in the Statement of Profit & Loss except in cases
where they relate to acquisition of fixed assets, in which case they
are adjusted to the carrying cost of such assets.
[iii] Monetary Assets and Liabilities hedged by a hedge contract are
expressed in Indian Rupees at the rate of exchange prevailing on the
date of Balance Sheet adjusted to the rates in the hedge contracts. The
exchange difference arising either on settlement or at reporting date
is recognised in the Statement of Profit & Loss except in cases where
they relate to acquisition of fixed assets, in which case they are
adjusted to the carrying cost of such assets. Premium paid in respect
of Hedge Contracts are recognised in the Statement of Profit & Loss,
except in case where they relate to the acquisition or construction of
fixed assets, in which case, they are adjusted to the carrying cost of
[iv] The Company uses foreign currency contracts to hedge its risks
associated with foreign currency fluctuations. The Company does not
use derivative financial instrument for speculative purposes.
[v] Non Monetary foreign currency items are carried at cost.
[i] Operating Leases: Rentals are expensed with reference to lease
[ii] Finance Leases: The lower of the fair value of the assets and
present value of the minimum lease rentals is capitalised as fixed
assets with corresponding amount disclosed as lease liability. The
principal component in the lease rental is adjusted against the lease
liability and the interest component is charged to Statement of Profit
Research and Development:
Revenue expenditure on Research and Development is charged to Statement
of Profit & Loss in the year in which it is incurred. Capital
expenditure on Research and Development is shown as an addition to
Share/Debenture Issue Expenses are adjusted against Security Premium
Reserve in the year in which they are incurred.
Incidental Expenditure During Construction Period:
Incidental Expenditure incurred on projects/assets during
construction/implementation is capitalised and apportioned to
projects/assets on commissioning.
Earnings Per Share:
Basic earnings per equity share is computed by dividing net profit
after tax by the weighted average number of equity shares outstanding
during the year. Diluted earnings per equity share is computed by
dividing adjusted net profit after tax by the aggregate of weighted
average number of equity shares and dilutive potential equity shares
during the year.
Borrowing Costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. A qualifying asset is one that takes substantial period
of time to get ready for intended use or sale. All other borrowing
costs are charged to Statement of Profit & Loss, except premium on
redemption of debentures [net of tax impact], which is adjusted against
the Securities Premium Reserve.
Revenue, operating results, assets and liabilities have been identified
to represent separate segments on the basis of their relationship to
the operating activities of the segment. Assets, Liabilities, Revenue
and Expenses which are not allocable to separate segment on a
reasonable basis, are included under Unallocated.
Taxes on Income:
Current Tax is determined as per the provisions of the Income Tax Act
in respect of Taxable Income for the year. Deferred Tax Liability is
computed as per Accounting Standard [AS-22]. Deferred Tax Asset and
Deferred Tax Liability are computed by applying tax rates and tax laws
that have been enacted or substantively enacted by the Balance Sheet
Impairment of Assets:
If the carrying amount of Fixed Assets exceeds the recoverable amount
on the reporting date, the carrying amount is reduced to the
recoverable amount and an impairment loss is charged to the Statement
of Profit & Loss in the year in which an asset is identified as
impaired. The recoverable amount is measured as the higher of the net
selling price or the value in use determined by the present value of
estimated future cash flows. The impairment loss recognised in prior
accounting period is reversed if there has been a change in the
estimate of the recoverable amount.
Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised 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 recognised but are disclosed in the
notes unless the possibility of an outflow of resources embodying
economic benefits is remote. Contingent Assets are neither recognised
nor disclosed in the financial statements. The Provisions, Contingent
Liabilities and Contingent Assets are reviewed at each Balance Sheet
Accounting for Oil Activity:
The Company has adopted Full Cost Method of Accounting for its Oil &
Gas Exploration Activity and all costs incurred in Acquisition,
Exploration and Development are accumulated.
Premium on Redemption of Debentures
Premium paid/ payable on Redemption of Debentures, net of tax impact,
is adjusted against the Securities Premium Reserve.
Cash and Cash Equivalents
Cash and Cash Equivalents comprises cash on hand, demand deposits with
banks and other short term highly liquid investments that are readily
convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
Cash Flow Statements
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.