Manas Properties Ltd. कंपली की लेखा नीति

Mar 31, 2024

2 Significant Accounting Policies

2.1 Basis of Preparation of Financial Statements:

The Ministry of Corporate Affairs, vide notification dated March 30, 2016, has issued The Companies
(Accounting Standards) Rules, 2016 thereby amending The Companies (Accounting Standards) Rules, 2006
(‘principal rules''). The said Rules come into effect from the date of notification, i.e., March 30, 2016. The
Company believes that Rule 3(2) of the principal rules has not been withdrawn or replaced and accordingly,
the Companies (Accounting Standards) Rules, 2016 will apply for the accounting periods commencing on or
after March 30, 2016. In view of the same, the accounting policies adopted in the preparation of financial
statements for the current year are consistent with those of previous year.

2.2 Use of Estimates:

Preparation of the financial statements in conformity with Indian GAAP requires the management to make
estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent
liabilities) and the reported income and expenses during the year. Management believes that the estimates
made in the preparation of the financial statements are prudent and reasonable. Actual results could differ
from those estimates. Any revision of accounting estimates is recognised prospectively in current and future
periods.

2.3 Cash flow statement:

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
cash receipts or payments. The cash flows from operating, investing and financing activities of the Company
are segregated based on the available information.

2.4 Current / Non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified as either Current or Non-current.

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realised in, or is intended for sale or consumption in, the Company''s normal operating
cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realised within twelve months after the reporting date; or

(iv) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in, the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within twelve months after the reporting date; or

(iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months
after the reporting date. Terms of a liability that could, at the opinion of the counterparty, result in its settlement
by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

Operating Cycle

Based on the nature of services and the time between the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 2 to 3 years for
the purpose of current and non-current classification of assets and liabilities.

2.5 Revenue Recognition:

(i) The Company follows the Percentage Completion Method of Accounting to recognize revenue in respect of
civil construction projects / development of real estate.

(ii) Determination of revenues under the Percentage Completion Method necessarily involves making estimates
by the Company, some of which are of technical nature, concerning, where relevant, the percentages of
completion, and the foreseeable losses to completion. The auditors have relied upon such estimates.

(ii) Income from leasing of property is recognised on a straight line basis over the lease term.

(iii) The commission income is recognised on accrual basis.

2.6 Other Income:

(i) Interest income is accounted on accrual basis.

(ii) Dividend Income is accounted for when the right to receive is established.

2.7 Fixed Assets:

(i) Fixed assets are stated at cost less accumulated depreciation / amortization and impairment losses, if any.
Cost comprises of purchase price and any attributable cost such as duties, freight, borrowing costs, erection
and commissioning expenses incurred in bringing the asset to its working condition for its intended use.

(ii) Capital work-in-progress includes the cost of fixed assets that are not ready to use at the balance sheet date
and advances paid to acquire fixed assets on or before the balance sheet date.

(iii) Depreciation on tangible fixed assets has been provided on the Written Down Value (WDV) method as per the
useful life prescribed in Schedule II to the Companies Act, 2013.

In respect of addition to fixed assets depreciation has been charged on pro-rata basis from the date of
addition to the assets.

2.8 Inventories:

Inventories are valued at lower of cost or net realizable value. Construction work-in-progress includes cost of
land, premium for development rights, and interest and expenses incidental to the projects undertaken by the
Company. Inventories of finished units / stock in trade, if any, are valued at cost or estimated net realizable
value whichever is lower.

2.9 Investments:

(i) Long term Investments are carried at Cost plus brokerage and other charges. Provision is made to recognise
a decline, other than temporary in value of investments and is determined separately for each individual
investment.

(ii) Current investments are carried at lower of cost or fair value, computed separately in respect of each
category of investment.

(iii) Investment properties are carried individually at cost less impairment, if any.

2.10 Employee Benefits

(i) Short-Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short¬
term employee benefits. Benefits such as salaries and wages, leave salary etc. and the expected cost of ex-
gratia are recognized in the period in which the employee renders the related services.

(ii) Post Employment Benefits:

Defined contribution & benefit plans:

The provisions of the Employees'' Provident Funds and Miscellaneous Provisions Act, 1952 and the Gratuity
Act, 1972 are not applicable to the Company. The Company does not have any other retirement benefit
scheme for employees.

2.11 Borrowing Cost:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are
treated as direct cost and are considered as part of the cost of such assets. A qualifying asset is an asset
that necessarily requires a substantial period of time to get ready for its intended use or sale. All other
borrowing costs are recognised as an expense in the period in which they are incurred.

2.12 Segment reporting:

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted
by the Company.

2.13 Leases:

Lease arrangements where the risk and rewards incidental to ownership of an asset substantially vest with
the lessor are recognized as operating lease. Lease payments under operating leases are recognised as an
expense on accrual basis in accordance with respective lease agreements.

2.14 Earnings per share:

The Basic EPS is computed by dividing the net profit/(loss) attributable to the equity shareholders for the year
by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is
computed by dividing the net profit/(loss) attributable to the equity shareholders for the year by the weighted
average number of equity and dilutive equity equivalent shares outstanding during the year, except where the
results would be anti-dilutive.

2.15 Taxes on Income:

(i) Income tax expense comprises of current tax, (i.e. amount of tax for the Year determined in accordance with
the Income Tax Act) and deferred tax charge or credit (reflecting the tax effects of timing differences between
accounting income and taxable income for the Year).

(ii) Tax on current income for the current Year is determined on the basis of estimated taxable income and tax
credits computed in accordance with the provisions of the Income-tax Act, 1961.

(iii) The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using
the tax rates that are enacted or are substantially enacted by the balance sheet date. Deferred tax assets are
recognised only to the extent there is reasonable certainty that the assets can be realised in future; however;
where there is unabsorbed depreciation or carried forward loss under Taxation laws, deferred tax assets are
recognised only if there is virtual certainty that such assets can be realised. Deferred tax assets are reviewed
at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtually
certain (as the case may be) to be realised.

2.16 Impairment of Assets:

The Company assesses at each balance sheet date whether there is any indication that an asset may be
impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value based on an appropriate discount factor. If
such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the
asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the Profit and Loss Statement. If at the
balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the
recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a
maximum of depreciable historical cost.

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Mar 31, 2018

1 Significant Accounting Policies

1.1 Basis of Preparation of Financial Statements:

The Ministry of Corporate Affairs, vide notification dated March 30, 2016, has issued The Companies (Accounting Standards) Rules, 2016 thereby amending The Companies (Accounting Standards) Rules, 2006 (‘principal rules’). The said Rules come into effect from She date of notification, i.e., March 30, 2016. The Company believes that Rule 3(2) of the principal rules has not been withdrawn or replaced and accordingly, the Companies (Accounting Standards) Rules, 2016 will apply for the accounting periods commencing on or after March 30, 2016. In view of the same, the accounting policies adopted in the preparation of financial statements for the current year are consistent with those of previous year.

1.2 Use of Estimates:

Preparation of the financial statements in conformity with Indian GAAP requires the management to make estimates and assumptions considered in the reported amounts of assets and iiabilities (including contingent liabilities) and the reported income and expenses during the year. Management believes that the estimates made in the preparation of the financial statements are prudent and reasonable. Actual results could differ from those estimates. Any revision of accounting estimates is recognised prospectively in current and future periods.

1.3 Cash flow statement:

Cash flows are reported using the indirect method, whereby profit I (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.4 Current / Non-current classification:

The Schedule III to the Act requires assets and liabilities to be classified as either Current or Non-current.

An asset is classified as current when it satisfies any of the following criteria:

(!) it is expected to be realised in, or is intended for sale or consumption in, the Company’s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realised within twelve months after the reporting date; or

(iv) it is cash or a cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least ’ twelve months after the reporting date.

Ail other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria: ;

(i) it is expected to be settled in, the Company’s normal operating cycle; j

(ii) it is held primarily for the purpose of being traded; ;

(iii) it is due to be settled within twelve months after the reporting date; or

(iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the opinion of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

Operating Cycle

Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 3 to 4 years for the purpose of current and non-current classification of assets and liabilities.

1.5 Revenue Recognition:

(i) The Company follows the Percentage Completion Method of Accounting to recognize revenue in respect of civil construction projects / development of real estate,

(ii) Determination of revenues under the Percentage Completion Method necessarily involves making estimates by the Company, some of which are of technical nature, concerning, where relevant, the percentages of completion, and the foreseeable losses to completion. The auditors have relied upon such estimates,

(ii) Income from leasing of property is recognised on a straight line basis over the lease term.

(iii) The commission income is recognised on accrual basis.

1.6 Other Income:

(i) Interest income is accounted on accrual basis.

(ii) Dividend Income is accounted for when the right to receive is established.

1.7 Fixed Assets:

(i) Fixed assets are stated at cost less accumulated depreciation / amortization and impairment losses, if any. Cost comprises of purchase price and any attributable cost such as duties, freight, borrowing costs, erection and commissioning expenses incurred in bringing the asset to its working condition for its intended use.

(ii) Capital work-in-progress includes the cost of fixed assets that are not ready to use at the balance sheet date and advances paid to acquire fixed assets on or before the balance sheet date.

1.8 Inventories:

Inventories are valued at lower of cost and net realizable value. Construction work-in-progress includes cost of land, premium for development rights, and interest and expenses incidental to the projects undertaken by the Company, Inventories of finished units / stock in trade, if any, are valued at cost or estimated net realizable value whichever is lower,

1.9 Investments:

(i) Long term Investments are carried at Cost plus brokerage and other charges. Provision is made to recognise a decline, other than temporary in value of investments and is determined separately for each individual investment.

(ii) Current investments are carried at lower of cost and fair value, computed separately in respect of each category of investment.

(iii) Investment properties are carried individually at cost less impairment, if any.

1.10 Employee Benefits

(i) Short-Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries and wages, leave salary etc. and the expected cost of ex-gratia are recognized in the period in which the employee renders the related services.

(ii) Post Employment Benefits:

Defined contribution & benefit plans:

The provisions of the Employees’ Provident Funds and Misceilaneous Provisions Act, 1952 and the Gratuity Act, 1972 are not applicable to the Company. The Company does not have any other retirement benefit scheme for employees.

1.11 Borrowing Cost:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are treated as direct cost and are considered as part of the cost of such assets. A qualifying asset rs an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

1.12 Segment reporting:

The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for the Company.

1.13 Leases:

Lease arrangements where the risk and rewards incidental to ownership of an asset substantially vest with the lessor are recognized as operating lease. Lease payments under operating leases are recognised as an expense on accrual basis in accordance with respective lease agreements.

1.14 Earnings per share:

The Basic EPS is computed by dividing the net protit/(loss) attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net profit/(loss) attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

1.15 Taxes on Income:

(i) income tax expense comprises of current fax, (i.e. amount of tax for the Year determined in accordance with the Income Tax Act) and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the Year).

(ii) Tax on current income for the current Year is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income-tax Act, 1961.

{iii) The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that are enacted or are substantially enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in future; however; where there is unabsorbed depreciation or carried forward loss under Taxation laws, deferred tax assets are recognised only if there is virtual certainty that such assets can be realised. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.16 Impairment of Assets:

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount is the greater of the net selling price and value in use. In assessing value Sn use, the estimated future cash flows are discounted to their present vaiue based on an appropriate discount factor. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Statement, If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost,

1.17 Provision, Contingent Liabilities and Contingent Assets:

The Company creates a provision where there is present obiigation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made where there is a possible obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made,