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Rap Corp Ltd. కంపెనీ అకౌంటింగ్ విధానాలు
Mar 31, 2025
1. Nature of Operations:
RAP Corp Limited (Formerly known as RAP MEDIA LTD) is a public limited Company domiciled in India. The Company is listed on the BSE Limited in India. The Companyâs Business comprises, inter alia, or Real Estate Business including Sale / Purchase Land, Building, Properties, Office. etc.
The financial statements of the Company have been prepared on an accrual basis and under the historical cost convention except for certain financial instruments which have been measured at fair value. Historical cost is generally based on the fair value of consideration given in exchange of goods and services. The accounting policies are consistently applied by the Company during the period and are consistent with those used in previous year except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Further, the guidance notes /announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations override the same requiring a different treatment.
3. Significant accounting policies:
a. Statement of compliance
These separate financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended thereafter. The Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
b. Use of estimates and judgement
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenues and expenses for the year. These estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected. Although these estimates are based on the managementâs best knowledge of current events and actions, uncertainty about these estimates, judgements and assumptions may result in the outcome that may require material adjustment in the carrying amounts of assets and liabilities in future period.
Estimations which may cause material adjustment to the carrying amounts of assets and liabilities within next financial year is in respect of useful lives of property, plant and equipment, valuation of deferred tax assets, provisions and contingent liabilities and fair value measurement of financial instruments have been discussed below.
c. Inventory
There is no inventory held by the company. During the month of April,2024 company has reclassified its Agra Property (Land and CWIP) previously held under Property, Plant and Equipment (PPE), into stock-in-trade, pursuant to a change in intended use of the asset from own use to sale in the ordinary course of business. The asset is now held for development and sale as part of the Companyâs business operations.
d. Events post financial year closing:
There is no such event occur.
e. Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment loss, if any. The cost comprises the purchase price and any attributable costs 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.
During the current financial year, the Company has reassessed the recoverable amount of its Agra Property, for which an impairment loss of Rs. 2,778.25 lakhs was recognised in FY 2015-16, based on the then-prevailing adverse market conditions.
Based on the latest valuation and improved forecast of future cash flows, the recoverable amount of the said asset has been reassessed at Rs. 446.45 lakhs, resulting in a reversal of impairment loss of Rs.346.45 lakhs recognised during the current financial year. The carrying amount of the asset after reversal is Rs.446.45 lakhs, which does not exceed the carrying amount that would have been determined had no impairment loss
been recognised in earlier periods.
The reversal has been recognised in the Statement of Profit and Loss under the head "Exceptional Items" as Impairment Gain through FVP OCI, in accordance with the requirements of Ind AS 36 - Impairment of Assets.
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under âCapital work-in-progressâ.
During the year ended 31st March,2025, the Company has reclassified its Agra Property (Land and CWIP) previously held under Property, Plant and Equipment (PPE), into stock-in-trade, pursuant to a change in intended use of the asset from own use to sale in the ordinary course of business. The asset is now held for development and sale as part of the Companyâs business operations.
The asset was earlier impaired during FY 2015-16, and an impairment loss of Rs. 2,778.25 lakhs was recognised in the Statement of Profit and Loss. Based on the reassessment of the assetâs recoverable value prior to reclassification, an impairment reversal gain of Rs.346.45 lakhs has been recognised during the current year under âExceptional Items" in accordance with Ind AS 36 - Impairment of Assets. The reversal has been restricted to the extent that the carrying amount does not exceed the depreciated historical cost.
Following reversal of impairment, the asset was transferred from PPE to Inventory at its carrying amount of Rs.928.12 lakhs in accordance with Ind AS 16 - Property, Plant and Equipment and Ind AS 2 - Inventories. The asset is now measured at the lower of cost and net realisable value in accordance with the Company''s accounting policy on inventories.
Subsequent expenditure related to property, plant and equipment is capitalized only if 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. Repairs and maintenance costs of an items of property, plant and equipment are recognized in the statement of profit and loss when incurred.
Gains or losses arising from of fixed assets are measured as the difference between the net proceeds and carrying amount of the asset and are recognized in the statement of profit and loss when the asset is recognized.
f. Intangible Assets
Intangible assets including software licenses of enduring nature and acquired contractual rights separately are measured on initial recognition, at cost. Intangible assets are carried at cost less accumulated amortization 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. Cost of internally generated intangible assets comprises all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management.
Gains or losses arising from de-recognition of an intangible asset 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 recognized .
Capitalized development cost is carried at cost less accumulated amortization and impairment losses, if any. Intangibles under development include cost of intangibles that are not ready to be put to use.
g. Depreciation and amortization
Depreciation has been provided on Written Down Value method on all assets as per Useful lives prescribed under Schedule II of Companies Act 2013. Depreciation on assets added during the year has been provided on pro-rata basis from the date of addition. Depreciation on deductions during the year is provided on pro-rata basis up to the date of sale. Individual assets whose cost does not exceed 5,000 are depreciated at 100%.
|
Asset |
Useful lives |
|
Computers |
3 years |
|
Servers |
6 years |
|
Software |
3 years |
|
Office equipment |
5 years |
|
Furniture & Fixture |
10 years |
|
Building |
30 years |
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.
(i) Financial asset
(a) Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
(b) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
⢠Financial assets at amortized cost
⢠Financial assets at fair value through other comprehensive income (FVTOCI)
⢠Financial assets at fair value through profit or loss (FVTPL)
(c) Financial assets at amortized cost:
A financial asset is measured at amortized cost if both following conditions are met:
⢠The financial asset is held within a business model whose objective is to hold financial assets in order to collect 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.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in other income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss.
Financial assets at fair value through other comprehensive income
A financial asset is measured at fair value through other comprehensive income if both of the following criteria are met:
⢠The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets, 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.
After initial measurement, such financial assets, until they are recognized or reclassified, are subsequently measured at fair value and recognized in other comprehensive income except for interest income, gain/loss on impairment, gain/loss on foreign exchange which is recognized in the statement of profit and loss.
(d) Financial assets at fair value through profit or loss
A financial asset is measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income.
In addition, the Company may elect to classify a financial asset, which otherwise meets amortized cost or fair value through other comprehensive income criteria, as at fair value through profit or loss. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as âaccounting mismatchâ).
After initial measurement, such financial assets are subsequently measured at fair value in the statement of profit and loss.
(e) De-recognition of financial assets
A financial asset is recognized when:
⢠The contractual rights to receive cash flows from the financial asset have expired, or
⢠The Company has transferred its contractual rights to receive cash flows from the asset or
has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement and either
(a) The Company has transferred substantially all the risks and rewards of the asset or
(b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
I Impairment
(i) Financial assets (other than at fair value)
The Company assesses at each reporting date whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company has used practical expedients in calculating expected credit losses on trade receivables using a provision matrix. The provision matrix takes into account historical credit loss experience for trade receivables to estimate the 12-month expected credit losses. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
(ii) Non-financial assets Tangible and intangible assets
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount for the individual asset is estimated by the Company. If, however, it is not possible to estimate the recoverable amount of the individual asset then the Company determines the recoverable amount of the cash-generating unit (CGU) to which the asset belongs (the assetâs cash-generating unit). An impairment loss is recognized in the statement of profit and loss when the recoverable amount of the asset or CGU is less than the carrying amount of the asset or CGU.
Previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the assetâs recoverable amount since the last impairment loss was Recognized Limited. If this is the case then the carrying amount of asset is increased to its recoverable amount. Such reversal is Recognized Limited in statement of profit and loss.
j. Revenue recognition
Revenue is Recognized Limited to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured and it is reasonable to expect ultimate collection.
Dividend is recognized only when the right to receive is established. Interest income is Recognized Limited on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.
The Company mainly derives its revenues from leasing activity.
Revenue is recognized upon satisfying the performance obligation by transferring promised goods or services to customers for a consideration which the Company expects to receive in exchange for those goods or services.
When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.
Revenue is measured based on the transaction price being the consideration received from the customer, adjusted for volume discounts, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
Unbilled revenue represents excess of revenue earned over billings on contracts. Unbilled revenue is recognized when there is unconditional right to receive cash and there is no uncertainty of ultimate collection
Unearned or deferred revenue is recognized when there is billings in excess of revenue.
k. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts and cash credit facilities as they are considered an integral part of the Companyâs cash management.
l. Employee benefits ( i ) gratuity
The Company provides for Gratuity, a defined benefit obligation plan, covering eligible employees under Company Gratuity Scheme. At each reporting date, liabilities with respect to gratuity plan are determined by actuarial valuation performed by independent actuary. The Company uses the projected unit credit method to determine the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Premeasurements of the net defined benefit liability/ asset is recognized in other comprehensive Income and are not reclassified to profit or loss in a subsequent period.
(ii) Short-term Employee Benefits
All employee benefits payable within twelve months of rendering the service are classified as shortterm benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc in the period in which the employee renders the related service. A liability is recognized for the amount expected to be paid when there is a present obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(iii) Compensated absences
The Company provides accumulating and non-accumulating paid absences such as annual leave, sick leave and casual leave. Accumulating paid absences are partly vesting and non-vesting. The Company recognizes the expected cost of accumulating paid absences as the additional amount that the entity expects to pay as a result of the unused entitlement. Non-accumulating paid absences do not carry forward and are lapsed if the current periodâs entitlement is not used in full and do not entitle employees to a cash payment for unused entitlement on leaving the Company. The Company does not recognize any liability or expense until the time of the absence.
Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as undiscounted liability at the balance sheet date. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.
m. Borrowing costs
Borrowing costs are capitalized that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which it is incurred.
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company recognizes right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any premeasurement of the lease liability. The right-of-use assets is 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. Right-of-use assets are tested for impairment whenever there is any indication that their carrying
amounts may not be recoverable. Impairment loss, if any, is recognized in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.
The lease liability is subsequently premeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and premeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset. 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 remeasurement in statement of profit and loss.
Company as a lessor
At the inception of the lease the Company recognize lease payments from operating leases as income on either a straight-line basis.
The Company recognizes costs incurred in earning the lease income as an expense. The Company also recognizes Initial direct costs incurred in obtaining an operating lease to the carrying amount of the underlying asset and recognize those costs as an expense over the lease term on the same basis as the lease income
Ministry of Corporate Affairs (âMCAâ) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 leases and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.
The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The Company has applied the standard to its leases, retrospectively with the cumulative effect of initially applying the Standard recognized on the date of initial application (April 1, 2019). Accordingly, the Company has not restated comparative information. As the Company is not a lessee, the Company has not made any adjustment to the opening balance of the retained earnings at the date of initial application.
o. Foreign currency translation
(i) Functional and presentation currency
Items included in the separate financial statements of the company are measured using the currency of the primary economic environment in which the entity operates (''the functional currency''). The separate financial statements are presented in Indian rupee (INR), which is the Companyâs functional and presentation currency.
(ii) Initial Recognition
Foreign currency transactions are recorded in Indian currency, by applying the exchange rate between the Indian currency and the foreign currency as at the date of transaction.
(iii) Conversion
Monetary items, designated in foreign currencies are revalued at the rate prevailing on the date of Balance Sheet.
(iv) Exchange Differences
Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized as income or as expenses in the year in which they arise, except in cases where they relate to the acquisition of qualifying assets, in which cases they were adjusted in the cost of the corresponding asset.
(i) Current tax:
Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income tax Act, 1961.
Current tax assets and current tax liabilities are presented on the net basis in the balance sheet after off-setting current tax paid against income tax provision only if the Company has a legally enforceable right to set off the recognized amounts and it intends either to settle on a net basis.
Minimum alternate tax (MAT) paid in a period / year is charged to the statement of profit and loss as current tax. MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum 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 âMAT Credit Entitlement.â The Company reviews the âMAT credit entitlementâ 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.
(ii) Deferred Tax:
Deferred tax is provided using the balance sheet approach 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 recognized for all taxable temporary differences, except:
⢠When the deferred tax liability arises from the initial recognition of goodwill or 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, associates 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 recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:
⢠When the deferred tax asset relating to the deductible temporary differences 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, associates and interests in joint ventures, deferred tax assets are derecognized 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 utilized.
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 utilized. Recognized deferred tax assets are re-assessed at each reporting date and are recognized 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 year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Current and deferred taxes are in the statement of profit and loss, except to the extent that it relates to items in other comprehensive income 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.
q. Provisions and contingent liabilities
Provisions are recognized when the Company has a present, legal or constructive obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are determined based on the best estimate required to settle the obligation at the Balance Sheet date. Provisions are reviewed at each Balance Sheet date and adjusted to reflect current best estimates.
Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. A disclosure for a contingent liability is made where there is a possible obligation arising out of past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation arising out of a past event where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
r. Earnings per share
a. Basic Earnings per Share
Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the financial year. Earnings considered in ascertaining the companyâs earnings per share is the net profit for the period after deducting any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
b. Diluted Earnings per Share
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
28. Employee benefit plans
Compensated absences
As per the Companyâs policy, unused leave entitlement gets lapsed and are not carried forward. As a result, there is no liability towards compensated absences as at March 31,2025 (March 31,2024 - Rs. Nil).
Gratuity
The Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 daysâ salary payable for each completed year of service. Vesting occurs upon completion of continuous service for five years.
Mar 31, 2024
1. Nature of Operations:
RAP Media Limited is a public limited Company domiciled in India. The Company is listed on the BSE Limited in India. The Company is in the business of construction of malls and multiplexes. The Company is also into the business of renting a property.
The financial statements of the Company have been prepared on an accrual basis and under the historical cost convention except for certain financial instruments which have been measured at fair value. Historical cost is generally based on the fair value of consideration given in exchange of goods and services. The accounting policies are consistently applied by the Company during the period and are consistent with those used in previous year except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Further, the guidance notes /announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations override the same requiring a different treatment.
3. Significant accounting policies:
a. Statement of compliance
These separate financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended thereafter. The Company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).
b. Use of estimates and judgement
The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires the management of the Company to make estimates, judgements and assumptions. These estimates, judgements and assumptions affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenues and expenses for the year. These estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected. Although these estimates are based on the managementâs best knowledge of current events and actions, uncertainty about these estimates, judgements and assumptions may result in the outcome that may require material adjustment in the carrying amounts of assets and liabilities in future period.
Estimations which may cause material adjustment to the carrying amounts of assets and liabilities within next financial year is in respect of useful lives of property, plant and equipment, valuation of deferred tax assets, provisions and contingent liabilities and fair value measurement of financial instruments have been discussed below.
c. Property, plant and equipment
Property, plant and equipment are stated at cost, less accumulated depreciation and impairment loss, if any. The cost comprises the purchase price and any attributable costs 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.
Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet date is classified as capital advances under other non-current assets and the cost of assets not ready to use before such date are disclosed under âCapital work-in-progressâ.
Subsequent expenditure related to property, plant and equipment is capitalized only if 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. Repairs and maintenance costs of an items of property, plant and equipment are recognized in the statement of profit and loss when incurred.
Gains or losses arising from of fixed assets are measured as the difference between the net proceeds and carrying amount of the asset and are recognized in the statement of profit and loss when the asset is recognized.
d. Intangible Assets
Intangible assets including software licenses of enduring nature and acquired contractual rights separately are measured on initial recognition, at cost. Intangible assets are carried at cost less accumulated amortization 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. Cost of internally generated intangible assets comprises all directly attributable costs necessary to create, produce, and prepare the asset to be capable of operating in the manner intended by management.
Gains or losses arising from de-recognition of an intangible asset 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 recognized .
Capitalized development cost is carried at cost less accumulated amortization and impairment losses, if any. Intangibles under development include cost of intangibles that are not ready to be put to use.
e. Depreciation and amortization
Depreciation has been provided on Written Down Value method on all assets as per Useful lives prescribed under Schedule II of Companies Act 2013. Depreciation on assets added during the year has been provided on pro-rata basis from the date of addition. Depreciation on deductions during the year is provided on pro-rata basis up to the date of sale. Individual assets whose cost does not exceed 5,000 are depreciated at 100%.
|
Asset |
Useful lives |
|
Computers |
3 years |
|
Servers |
6 years |
|
Software |
3 years |
|
Office equipment |
5 years |
|
Furniture & Fixture |
10 years |
|
Building |
30 years |
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.
(i) Financial assets
(a) Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.
(b) Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in three categories:
⢠Financial assets at amortized cost
⢠Financial assets at fair value through other comprehensive income (FVTOCI)
⢠Financial assets at fair value through profit or loss (FVTPL)
(c) Financial assets at amortized cost:
A financial asset is measured at amortized cost if both following conditions are met:
⢠The financial asset is held within a business model whose objective is to hold financial assets in order to collect 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.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in other income in the statement of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss.
Financial assets at fair value through other comprehensive income
A financial asset is measured at fair value through other comprehensive income if both of the following criteria are met:
⢠The financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets, 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.
After initial measurement, such financial assets, until they are recognized or reclassified, are subsequently measured at fair value and recognized in other comprehensive income except for interest income, gain/loss on impairment, gain/loss on foreign exchange which is recognized in the statement of profit and loss.
(d) Financial assets at fair value through profit or loss
A financial asset is measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income.
In addition, the Company may elect to classify a financial asset, which otherwise meets amortized cost or fair value through other comprehensive income criteria, as at fair value through profit or loss. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency (referred to as âaccounting mismatchâ).
After initial measurement, such financial assets are subsequently measured at fair value in the statement of profit and loss.
(e) De-recognition of financial assets
A financial asset is recognized when:
⢠The contractual rights to receive cash flows from the financial asset have expired, or
⢠The Company has transferred its contractual rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a pass-through arrangement and either
(a) The Company has transferred substantially all the risks and rewards of the asset or
(b) The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
g. Impairment
(i) Financial assets (other than at fair value)
The Company assesses at each reporting date whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company has used practical expedients in calculating expected credit losses on trade receivables using a provision matrix. The provision matrix takes into account historical credit loss experience for trade receivables to estimate the 12-month expected credit losses. The expected credit loss allowance is based on the ageing of the receivables that are due and allowance rates used in the provision matrix. For all other financial assets, expected credit losses are measured at an amount equal to the 12-months expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.
(ii) Non-financial assets Tangible and intangible assets
Property, plant and equipment and intangible assets with finite life are evaluated for recoverability whenever there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount for the individual asset is estimated by the Company. If, however, it is not possible to estimate the recoverable amount of the individual asset then the Company determines the recoverable amount of the cash-generating unit (CGU) to which the asset belongs (the assetâs cash-generating unit). An impairment loss is recognized in the statement of profit and loss when the recoverable amount of the asset or CGU is less than the carrying amount of the asset or CGU.
Previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the assetâs recoverable amount since the last impairment loss was Recognized Limited. If this is the case then the carrying amount of asset is increased to its recoverable amount. Such reversal is Recognized Limited in statement of profit and loss.
h. Revenue recognition
Revenue is Recognized Limited to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured and it is reasonable to expect ultimate collection.
Dividend is recognized only when the right to receive is established. Interest income is Recognized Limited on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.
The Company mainly derives its revenues from leasing activity.
Revenue is recognized upon satisfying the performance obligation by transferring promised goods or services to customers for a consideration which the Company expects to receive in exchange for those goods or services.
When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.
Revenue is measured based on the transaction price being the consideration received from the customer, adjusted for volume discounts, performance bonuses, price concessions and incentives, if any, as specified in the contract with the customer. Revenue also excludes taxes collected from customers.
Unbilled revenue represents excess of revenue earned over billings on contracts. Unbilled revenue is recognized when there is unconditional right to receive cash and there is no uncertainty of ultimate collection
Unearned or deferred revenue is recognized when there is billings in excess of revenue.
i. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consists of cash and short-term deposits, as defined above, net of outstanding bank overdrafts and cash credit facilities as they are considered an integral part of the Companyâs cash management.
j. Employee benefits
(i) Gratuity
The Company provides for Gratuity, a defined benefit obligation plan, covering eligible employees under Company Gratuity Scheme. At each reporting date, liabilities with respect to gratuity plan are determined by actuarial valuation performed by independent actuary. The Company uses the projected unit credit method to determine the present value of its defined benefit obligations and the related current service cost and, where applicable, past service cost. The Company recognizes the net obligation of a defined benefit plan in its Balance Sheet as an asset or liability. Premeasurements of the net defined benefit liability/ asset is recognized in other comprehensive Income and are not reclassified to profit or loss in a subsequent period.
(ii) Short-term Employee Benefits
All employee benefits payable within twelve months of rendering the service are classified as short-term benefits. Such benefits include salaries, wages, bonus, short term compensated absences, awards, ex-gratia, performance pay etc in the period in which the employee renders the related service. A liability is recognized for the amount expected to be paid when there is a present obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
(iii) Compensated absences
The Company provides accumulating and non-accumulating paid absences such as annual leave, sick leave and casual leave. Accumulating paid absences are partly vesting and non-vesting. The Company recognizes the expected cost of accumulating paid absences as the additional amount that the entity expects to pay as a result of the unused entitlement. Non-accumulating paid absences do not carry forward and are lapsed if the current periodâs entitlement is not used in full and do not entitle employees to a cash payment for unused entitlement on leaving the Company. The Company does not recognizes any liability or expense until the time of the absence.
Compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as undiscounted liability at the balance sheet date. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.
k. Borrowing costs
Borrowing costs are capitalized that are directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which it is incurred.
l. Leases Company as a lessee
The Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Company recognizes right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any premeasurement of the lease liability. The right-of-use assets is 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. Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognized in the statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.
The lease liability is subsequently premeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and premeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset. 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.
Company as a lessor
At the inception of the lease the Company recognise lease payments from operating leases as income on either a straight-line basis.
The Company recognises costs incurred in earning the lease income as an expense. The Company also recognises Initial direct costs incurred in obtaining an operating lease to the carrying amount of the underlying asset and recognise those costs as an expense over the lease term on the same basis as the lease income
Transition to Ind AS 116
Ministry of Corporate Affairs (âMCAâ) through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 leases and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.
The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1,2019. The Company has applied the standard to its leases, retrospectively with the cumulative effect of initially applying the Standard recognized on the date of initial application (April 1,2019). Accordingly, the Company has not restated comparative information. As the Company is not a lessee, the Company has not made any adjustment to the opening balance of the retained earnings at the date of initial application.
m. Foreign currency translation
(i) Functional and presentation currency
Items included in the separate financial statements of the company are measured using the currency of the primary economic environment in which the entity operates (âthe functional currencyâ). The separate financial statements are presented in Indian rupee (INR), which is the Companyâs functional and presentation currency.
(ii) Initial Recognition
Foreign currency transactions are recorded in Indian currency, by applying the exchange rate between the Indian currency and the foreign currency as at the date of transaction.
(iii) Conversion
Monetary items, designated in foreign currencies are revalued at the rate prevailing on the date of Balance Sheet.
(iv) Exchange Differences
Exchange differences arising on the settlement and conversion of foreign currency transactions are recognized as income or as expenses in the year in which they arise, except in cases where they relate to the acquisition of qualifying assets, in which cases they were adjusted in the cost of the corresponding asset.
n. Income Taxes
(i) Current tax:
Current tax is the amount of tax payable based on the taxable profit for the year as determined in accordance with the applicable tax rates and the provisions of the Income tax Act, 1961.
Current tax assets and current tax liabilities are presented on the net basis in the balance sheet after off-setting current tax paid against income tax provision only if the Company has a legally enforceable right to set off the recognized amounts and it intends either to settle on a net basis.
Minimum alternate tax (MAT) paid in a period / year is charged to the statement of profit and loss as current tax. MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum 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 âMAT Credit Entitlement.â The Company reviews the âMAT credit entitlementâ 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.
(ii) Deferred Tax:
Deferred tax is provided using the balance sheet approach 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 recognized for all taxable temporary differences, except:
⢠When the deferred tax liability arises from the initial recognition of goodwill or 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, associates 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 recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:
⢠When the deferred tax asset relating to the deductible temporary differences 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, associates and interests in joint ventures, deferred tax assets are drecognized 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 utilized.
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 utilized. Recognized deferred tax assets are re-assessed at each reporting date and are recognized 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 year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Current and deferred taxes are in the statement of profit and loss, except to the extent that it relates to items in other comprehensive income 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.
o. Provisions and contingent liabilities
Provisions are recognized when the Company has a present, legal or constructive obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are determined based on the best estimate required to settle the obligation at the Balance Sheet date. Provisions are reviewed at each Balance Sheet date and adjusted to reflect current best estimates.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest expense.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements. A disclosure for a contingent liability is made where there is a possible obligation arising out of past events, the existence of which will be confirmed only by the occurrence or nonoccurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation arising out of a past event where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
p. Earnings per share
a. Basic Earnings per Share
Basic earnings per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the financial year. Earnings considered in ascertaining the companyâs earnings per share is the net profit for the period after deducting any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.
b. Diluted Earnings per Share
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.
q. Events post financial year closing:
During the year under review, the Companyâ s management has been contemplating converting the assets of the Company into Stock in Trade with a view to generate some income for the Company and enhance shareholders value. After considerations during the year, one of the assets of the Company, has been converted into stock in trade from April 2024 and accordingly necessary effects are expected to be given in accounts for quarter ended June 30, 2024 i.e. w.e.f April 2024.
25. Employee benefit plans Compensated absences
As per the Companyâs policy, unused leave entitlement gets lapsed and are not carried forward. As a result, there is no liability towards compensated absences as at March 31,2024 (March 31,2023 - Rs. Nil).
Gratuity
The Company operates a scheme of gratuity which is a defined benefit plan. The gratuity plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 daysâ salary payable for each completed year of service. Vesting occurs upon completion of continuous service for five years.
The following tables summarize the components of net benefit expense in the statement of profit and loss and the funded status and amounts in the Balance Sheet for the respective plans.
Mar 31, 2015
1. Basis of accounting and presentation of financial statements:
The Company maintains its accounts on accrual basis following the
historical cost convention, except for the revaluation of certain fixed
assets, in accordance with generally accepted accounting principles
["GAAP"] in compliance with the provisions of the Companies Act, 2013
and the Accounting Standards as specified in the Companies (Accounting
Standards) Rules, 2006 read with Rule 7(1) of the Companies (Accounts)
Rules, 2014 issued by the Ministry of Corporate Affairs in respect of
section 133 of the Companies Act, 2013. Further, the guidance
notes/announcements issued by the Institute of Chartered Accountants of
India (ICAI) are also considered, wherever applicable except to the
extent where compliance with other statutory promulgations override the
same requiring a different treatment
The Balance Sheet and the Statement of Profit and Loss are prepared and
presented in the format prescribed in the Schedule III to the Companies
Act, 2013 ("the Act"). The Cash Flow Statement has been prepared and
presented as per the requirements of Accounting Standard (AS) 3 "Cash
Flow Statements". The disclosure requirements with respect to items in
the Balance Sheet and Statement of Profit and Loss, as prescribed in
the Schedule III to the Act, are presented by way of notes forming part
of accounts along with the other notes required to be disclosed under
the notified Accounting Standards and the Equity Listing Agreement.
2. Use of Estimates :
The preparation of financial statements in conformity with GAAP
requires that the management of the Company makes estimates and
assumptions that affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the
financial statements. Examples of such estimates include the useful
lives of tangible and intangible fixed assets, allowance for doubtful
debts/advances, future obligations in respect of retirement benefit
plans, etc. difference, if any, between the actual results and
estimates is recognized in the period in which the results are known.
3. Fixed Assets:
a. All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
b. Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion for such
liabilities are charged / credited to the Profit & Loss Account.
c. When an Asset is scrapped or otherwise disposed off, the cost and
related depreciation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any, is
reflected in the Profit & Loss Account.
d. Items of fixed assets that have been retired from active use and
are held for disposal are stated at the lower of their net book value
and estimated net realizable value and are disclosed separately in the
financial statements.
e. Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance Sheet and advances paid to
acquire capital assets before the Balance Sheet date.
4. Intangible Assets
All intangible assets are initially measured at cost amortized so as to
reflect the pattern in which the assets' economic benefits are
consumed.
5. Depreciation
Depreciation on assets carried at historical costs is provided on
straight line method on the basis of useful life as specified in
Schedule II to the Companies Act, 2013.
6. Investments
a. Current Investments are stated at cost or market value whichever is
less.
b. Long term Investments are stated at cost. Provision for diminution
in value is made, if permanent.
7. Employee Benefits
Defined Benefit Plans - Company's liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately build up the final obligation. Past service costs are
recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses are
recognized immediately in the Statement of Profit and loss as income or
expense. Obligation is measured at the present value of estimated
future cash flows.
8. Foreign Currency Transactions:
a. Foreign Currency transactions are recorded at the exchange rate as
of the date of the respective transactions.
b. In the case of monetary assets and liabilities denominated in
foreign currency, the exchange rate prevalent on the Balance Sheet date
is applied to restate such assets and liabilities. Exchange differences
arising on restatement of foreign currency assets and liabilities are
recognized as income or expenditure in Profit & Loss Account.
9. Revenue Recognized
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
10. Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognized, subject to consideration of
prudence, 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. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
11. Provisions
Provisions are recognized in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
12. Contingent Liabilities and Commitments
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the company.
13. Impairment of assets
Management periodically assesses using external and internal
indications whether there is an indication that an asset may be
impaired. Impairment occurs where the carrying amount exceeds the
present value of future cash flows expected to arise from the
continuing use of the asset or its eventual disposal. The impairment
loss to be expensed is determined as the excess of the carrying amount
over the higher of the asset's net sale price or present value as
determined above.
Mar 31, 2014
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on the accrual basis of accounting and comply with the
mandatory Accounting Standards referred to in section 211(3C) of the
Companies Act, 1956.
2. Use of Estimates :
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amount of assets and
liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Any revision to accounting estimates is recognized
prospectively in current and future periods.
3. Fixed Assets:
a. All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
b. Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion for such
liabilities are charged / credited to the Profit & Loss Account.
c. When an Asset is scrapped or otherwise disposed off, the cost and
related depreciation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any, is
reflected in the Profit & Loss Account.
d. Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their net book value and
estimated net realizable value and are disclosed separately in the
financial statements.
e. Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance Sheet and advances paid to
acquire capital assets before the Balance Sheet date.
4. Intangible Assets
All intangible assets are initially measured at cost amortized so as to
reflect the pattern in which the assets'' economic benefits are
consumed.
5. Depreciation
Depreciation on fixed assets has been charged using Straight Line
Method at the rates and in manner prescribed in Schedule XIV to the
Companies Act, 1956.
6. Investments
a. Current Investments are stated at cost or market value whichever is
less.
b. Long term Investments are stated at cost. Provision for diminution
in value is made, if permanent.
7. Employee Benefits
Defined Benefit Plans - Company''s liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately build up
the final obligation. Past service costs are recognized on straight
line basis over the average residual period until the amended benefits
become vested. Actuarial gain and losses are recognized immediately in
the Statement of Profit and loss as income or expense. Obligation is
measured at the present value of estimated future cash flows.
8. Foreign Currency Transactions:
a. Foreign Currency transactions are recorded at the exchange rate as
of the date of the respective transactions.
b. In the case of monetary assets and liabilities denominated in
foreign currency, the exchange rate prevalent on the Balance Sheet date
is applied to restate such assets and liabilities. Exchange differences
arising on restatement of foreign currency assets and liabilities are
recognized as income or expenditure in Profit & Loss Account.
9. Revenue Recognized
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection.
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
10. Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognised, subject to consideration of
prudence, 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. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
11. Provisions
Provisions are recognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
12. Contingent Liabilities
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the company.
13. Impairment of assets
Management periodically assesses using external and internal
indications whether there is an indication that an asset may be
impaired. Impairment occurs where the carrying amount exceeds the
present value of future cash flows expected to arise from the
continuing use of the asset or its eventual disposal. The impairment
loss to be expensed is determined as the excess of the carrying amount
over the higher of the asset''s net sale price or present value as
determined above.
Mar 31, 2012
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on the accrual basis of accounting and comply with the
mandatory Accounting Standards referred to in section 211 (3C) of the
Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements requires the management to make
estimates and assumptions in the reported amount of assets and
liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Any revision to accounting estimates is recognized
prospectively in current and future periods.
3. Fixed Assets:
a. All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
b. Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion for such
liabilities are charged/credited to the Profit & Loss Account.
c. When an Asset is scrapped or otherwise disposed off, the cost and
related depreciation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any is
reflected in the Profit & Loss Account.
d. Items of fixed assets that have been retired from active use and
are held for disposal are stated at the lower of their net book value
and estimated net realizable value and are disclosed separately in the
financial statements.
e. Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance Sheet and advances paid to
acquire capital assets before the Balance Sheet date.
4. Intangible Assets
All intangible assets are initially measured at cost amortized so as to
reflect the pattern in which the assets' economic benefits are
consumed.
5. Depreciation
Depreciation on fixed assets has been charged using Straight Line
Method at the rates and in manner prescribed in Schedule XIV to the
Companies Act, 1956.
6. Investments
a. Current Investments are stated at cost or market value whichever is
less.
b. Long term Investments are stated at cost. Provision for diminution
in value is made, if permanent.
7. Employee Benefits
Defined Benefit Plans - Company's liabilities towards gratuity being
post employment benefit are determined actuarially using the projected
unit credit method which considers each period of service as giving
rise to an additional unit of benefit entitlement and measures each
unit separately build up the final obligation. Past service costs are
recognized on straight line basis over the average residual period
until the amended benefits become vested. Actuarial gain and losses
are recognized immediately in the Statement of Profit and loss as
income or expense. Obligation is measured at the present value of
estimated future cash flows.
8. Foreign Currency Transactions:
a. Foreign Currency transactions are recorded at the exchange rate as
of the date of the respective transactions.
b. In the case of monetary assets and liabilities denominated in
foreign currency, the exchange rate prevalent on the Balance Sheet date
is applied to restate such assets and liabilities. Exchange differences
arising on restatement of foreign currency assets and liabilities are
recognized as income or expenditure in Profit & Loss Account.
9. Revenue Recognized
Revenue is recognized only when it can be reliable measured and it is
reasonable to expect ultimate collection.
Dividend is recognized when the right to receive is established.
Interest is recognized on time proportion basis.
10. Income Tax and Deferred Taxes
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured based on the tax
rates and tax laws enacted or substantively enacted at the balance
sheet date. Deferred tax is recognised, subject to consideration of
prudence, 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. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
11. Provisions
Provisions are recognised in accounts in respect of present probable
obligations, the amount of which can be reliably estimated.
12. Contingent Liabilities
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed only by
the occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the company.
13. Impairment of assets
Management periodically assesses using external and internal
indications whether there is an indication that an asset may be
impaired. Impairment occurs where the carrying amount exceeds the
present value of future cash flows expected to arise from the
continuing use of the asset or its eventual disposal. The impairment
loss to be expensed is determined as the excess of the carrying amount
over the higher of the asset's net sale price or present value as
determined above.
14. Segment Reporting
The Company is working in Development, Construction of Multiplex cum
Malls.
Mar 31, 2010
1. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost
convention on the accrual basis of accounting and comply with the
mandatory Accounting Standards issued by the Institute of Chartered
Accountants of India as referred to in Section 211(3C) and other
relevant provisions of the Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements requires the management to make
estimates and assumptions considered in the reported amount of assets
and liabilities (including contingent liabilities) as on the date of
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in the
preparation of the financial statement are prudent and reasonable.
Actual results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in current and future
periods.
3. Fixed Assets:
(a) All Fixed Assets are stated at cost less depreciation. Cost of
acquisition is inclusive of purchase price, levies and any directly
attributable cost of bringing the assets to its working condition for
the intended use.
(b) Exchange difference arising on payment of liabilities for purchase
of fixed assets from outside India and year end conversion for such
liabilities are charged / credited to the Profit & Loss Account.
(c) When an Asset is scrapped or otherwise disposed off, the cost and
related depreciation are removed from the books of accounts and
resultant profit (including capital profit) or loss, if any, is
reflected in the Profit & Loss Account.
(d) Items of fixed assets that have been retired from active use and
are held for disposal are stated at the lower of their net book value
and estimated net realizable value and are disclosed separately in the
financial statements.
(e) Capital Work-in-Progress includes the cost of assets that are not
ready for intended use at the Balance Sheet and advances paid to
acquire capital assets before the Balance Sheet date.
4. Intangible Assets:
(a) All intangible assets are initially measured at cost amortized so
as to reflect the pattern in which the assets economic benefits are
consumed.
(b) Software capitalized as intangible asset is written off over a
maximum period of three years.
5. Depreciation:
Depreciation on fixed assets has been charged using Straight Line
Method at the rates and in manner prescribed in Schedule XIV to the
Companies Act, 1956.
6. Employee Benefits:
Defined Contribution Plans
Companys contributions paid/payable during the year to Provident Fund
are charged to the Profit & Loss Account on accrual basis.
Defined Benefit Plans
Companys liabilities towards gratuity being post employment benefit
and leave encashment being other long term benefit are determined
actuarially using the projected unit credit method which considers each
period of service as giving rise to an additional unit of benefit
entitlement and measures each unit separately build up the final
obligation. Past service costs are recognized on straight line basis
over the average residual period until the amended benefits become
vested. Actuarial gain and losses are recognized immediately in the
Statement of Profit and Loss Account as income or expense. Obligation
is measured at the present value of estimated future cash flows and the
gross obligation is duly adjusted by the fair value of plan assets on
reporting date..
7. Foreign Currency Transactions:
(a) Foreign Currency transactions are recorded at the exchange rate as
of the date of the respective transactions.
(b) In the case of monetary assets and liabilities denominated in
foreign currency, the exchange rate prevalent on the Balance Sheet date
is applied to restate such assets and liabilities. Exchange
differences arising on restatement of foreign currency assets and
liabilities are recognized as income or expenditure in Profit & Loss
Account.
8. Income Tax and Deferred Taxes:
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax is measured, based on the
tax rates and tax laws enacted or substantively enacted at the Balance
Sheet date. Deferred tax is recognised, subject to consideration of
prudence, 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. Deferred tax
assets arising on account of unabsorbed depreciation or carry forward
of tax losses shall be recognized only when there is a virtual
certainty supported by convincing evidence that sufficient future
taxable income will be available against which such deferred tax assets
can be realized
9. Contingent Liabilities:
(a) Provisions are recognised in accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
(b) Contingent liabilities are disclosed in respect of possible
obligations that arise from past events but their existence is
confirmed only by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company.
10. Segment Reporting
The Company is working on Development, Construction of Multiplexes cum
Malls & Hotels.
11. Earning per Shares:
(a) Basis earning per share is computed by dividing net income by the
weighted average number of common stock outstanding during the period.
(b) The number of shares used in computing diluted earnings per share
comprises the weighted averages shares considered for deriving basis
earnings per shares, and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares. The diluted potential equity shares are
adjusted for the proceeds receivable, had the shares been actually
issued at fair value (i.e. the average market value to the outstanding
shares). Diluted potential equity shares are deemed converted as of the
beginning of the period, unless issued at the later date.
12. Impairment of assets:
Management periodically assesses using external and internal
indications whether there is an indication that an asset may be
impaired. Impairment occurs where the carrying amount exceeds the
present value of future cash flows expected to arise from the
continuing use of the asset or its eventual disposal. The impairment
loss to be expensed is determined as the excess of the carrying amount
over the higher of the assets net sale price or present value as
determined above.
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మరింత సమాచారం Rap Corp Ltd.
-
Rap Corp Ltd. టూల్స్
- బల్క్ డీల్స్
-
Rap Corp Ltd. కంపెనీ వివరాలు
- కంపెనీ ప్రొఫైల్
- కంపెనీ చరిత్ర
- నిర్వహణ బృందం
- క్యాపిటల్ స్ట్రక్చర్
- ప్రొడక్ట్ మిక్స్
- బ్యాంకర్/ఆడిటర్/రిజిస్ట్రార్
-
కంపెనీ చరిత్ర
- బిఎస్ఇ ధర చరిత్ర
-
Rap Corp Ltd. ముఖ్య ఆర్థిక నిష్పత్తులు
- నిష్పత్తులు
-
Rap Corp Ltd. ఫలితాలు
- క్వార్టర్లీ ఫలితాలు
- హాఫ్ ఇయర్లీ ఫలితాలు
- 9నెలల ఫలితాలు
- వార్షిక ఫలితాలు
-
Rap Corp Ltd. ఆర్థిక డేటా
- ఆడిట్ ఫలితాలు
- క్యాష్ ఫ్లో
- బ్యాలెన్స్ షీట్
-
Rap Corp Ltd. నివేదికలు
- అకౌంటింగ్ విధానాలు
- ఆడిటర్స్ నివేదిక
- డైరక్టర్స్ నివేదిక
- ఖాతాకు గమనికలు
-
Rap Corp Ltd. కార్పొరేట్ ప్రకటనలు
- బుక్ క్లోజర్
- డివిడెండ్
- బోర్డు సమావేశాలు
- పేరు మార్పు
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Stock market: స్టాక్ మార్కెట్ ఊపు! ఒక్కరోజే 2000 పాయింట్లు జంప్..ఈ 5 కారణాలే కీలకం! -
Stock market Holidays: ఏప్రిల్లో వరుస సెలవులు.. స్టాక్ మార్కెట్ క్లోజ్ అయ్యే రోజులు ఇవే! -
భారీ నష్టాలతో ప్రారంభమైన స్టాక్ మార్కెట్.. కుప్పకూలిన సెన్సెక్స్, నిఫ్టీ ప్రధాన సూచీలు.. -
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భారత స్టాక్ మార్కెట్లు పతనం.. చమురు ధరలు పెరగడంతో కుప్పకూలిన మార్కెట్ -
ఇరాన్ యుద్ధంతో స్టాక్ మార్కెట్లో భయాందోళన..728 పాయింట్లు పడిపోయిన గిఫ్ట్ నిఫ్టీ.. భారీగా పెరిగిన ఇండియా VIX.. -
Stock market: స్టాక్ మార్కెట్ ఇన్వెస్టర్లకు అలర్ట్.. సోమవారం భారీ పతనం తప్పదా? -
Sensex today: సెన్సెక్స్ సంచలనం: 20 నిమిషాల్లో 900 పాయింట్లు జంప్.. కారణం ఇదే! -
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కుప్పకూలిన ఆసియా స్టాక్ మార్కెట్.. దెబ్బకు దక్షిణ కొరియా మార్కెట్లో నిలిచినపోయిన ట్రేడింగ్.. -
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Iran Israel war: ఇరాన్-ఇజ్రాయెల్ యుద్ధం! భారత ఆర్థిక వ్యవస్థకు, స్టాక్ మార్కెట్లకు ముప్పు తప్పదా?
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