NOTES TO THE FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31ST MARCH, 2015 Corporate Information Nimbus Projects Limited is engaged in Real Estate Development of Commercial / Residential Projects, Trading of Properties & Real Estate Agent business etc. It is developing Residential Projects in National Capital Region (NCR). It has developed one Residential Project "Exbrss Park View" in Greater Noida. Apart from developing its own Project, the company is undertaking development through Special Purpose Vehicle / Joint Venture (SPV / JV). The company is developing four Residential Projects in Joint Venture in Noida & Greater Noida. Note-1 : Significant Accounting Policies 1.1 Basis of Accounting The financial statements are brpared under historical cost convention on accrual basis (except interest on delayed payment by customers, administrative charges recovered from customers and expenditure on compensation/ penalty for project delay, which are accounted for at the time of acceptance/ settlement with the customers due to uncertainties with regard to determination of amount receivable/ payable) and are in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 read with Rule 7 of the Companies (Accounts) Rules, 2014 in respect of Section 133 of the Companies Act, 2013. The brparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. 1.2 Fixed assets Fixed assets are stated at cost less accumulated debrciation and impairment losses. Cost comprises purchase price, duties, levies and any other cost relating to the acquisition and installation of the asset. Fixed assets under construction are treated as soon the assets become operational and ready for use. Borrowing cost, if any, directly attributable to the acquisition and / or construction of fixed asset, until the date assets are ready for its intended use, are capitalized as a part of the cost of that asset subject to the provisions of impairment of the assets. Intangible assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. Expenditure on an intangible item is expensed when incurred unless it forms part of the cost of intangible asset that meets the recognition criteria. Intangible assets are stated at cost of acquisition and are carried at cost less accumulated amortization and impairment loss, if any. 1.3 Debrciation a) Debrciation on fixed assets for the year ended 31st March, 2014 is provided on the Written down Value Method at the rates brscribed in Schedule XIV to The Companies Act, 1956. b) Effective from 1st April, 2015, debrciation is provided on Written Down Value Method as brscribed in Schedule II to the Companies Act, 2013. c) Debrciation on additions / deletion to fixed assets is provided on proportionate basis according to the date of addition / deletion. 1.4 Investments Long term investments are stated at cost. A provision for diminution is made to recognise a decline, if any, other than temporary in nature, in the value of long term investments. Short term investments are stated at lower of cost or market value. 1.5 Inventories Inventories are valued at lower of cost and net realisable value. Construction work in progress comprises of cost of land (including brmium for development rights), materials, services and other related overheads. 1.6 Employee Benefits Retirement benefits to the employees comprise of payments under defined contribution plans like Provident Fund & Family Pension and contribution paid or payable is recognized as an expense in the period in which services are rendered by the employees. The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The brsent value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. Provision for leave encashment is made on accrual basis. 1.7 Borrowing Costs Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised for the period until the assets are ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognised and capitalised and are included in Capital WIP in the period in which they are incurred. 1.8 Taxation Tax expense comprises of current Income tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rate and the tax laws enacted or substantially enacted at the balance sheet date. Deferred tax assets other than on carried forward losses and unabsorbed debrciation are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax asset on account of carried forward losses and unabsorbed debrciation are recognised only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. 1.9 Provisions, Contingent Liabilities and Contingent Assets A provision is recognised when an enterprise has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their brsent values and are determined based on management estimate required to settle the obligation at the balance sheet date. Contingent liabilities, if material, are disclosed by way of notes. Contingent assets are not recognised or disclosed in the financial statement. 1.10 Revenue Recognition a) Revenue from constructed properties is recognised on the 'percentage of completion method'. Sale consideration as per the duly executed agreements to sell/application forms (containing salient terms of agreement to sell), is recognised as revenue based on (i) the percentage of actual project costs incurred thereon to total estimated project cost, subject to such actual cost incurred (excluding land acquisition cost) being 25 per cent or more of the total estimated project cost (excluding land acquisition cost) and (ii) when at least 25 per cent of the saleable project area is secured by contracts or agreements with buyers and at least 10 per cent of the total revenue are realised. Income is recognised when it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. The estimates of the saleable area and costs are reviewed periodically and effect of any changes in such estimates is recognised in the period in which such changes are determined. However, when the total project cost is estimated to exceed total revenues from the project, loss is recognised immediately. b) Interest on fixed deposits and inter-corporate deposits is accounted on accrual basis. c) Dividend income is accounted when the right to receive is established and known. d) Adminstartion charges recovered from cutomers are accounted as per the terms of contract with the customers. e) Share of profit from the partnership firm, in which the Company is a partner, is as per the financial statement of the partnership firm. 1.11 Cost of Construction/ Development Cost of Construction/ Development (including cost of land) incurred is charged to the Statement of Profit and Loss proportionate to project area sold. Adjustments, if required, are made on completion of the respective projects. 1.12 Foreign Currency Transaction Foreign currency transaction is recorded at the rates of exchange brvailing on the date of the transactions. Exchange differences arising on foreign currency transactions are recognized as income or as expenses and accordingly debited or credited to profit and loss account. 1.13 Borrowing Cost Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are expensed in the period they occur. 1.14 Segment Reporting The Company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under Accounting Standard 17. 1.15 Leases a) Operating lease Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets, are classified as Operating leases. Lease payments are charged to the statement of profit and loss account of the year in which they due. b) Finance lease Leases where the lessor effectively transfers substantially all the risks and rewards incident to ownership of an asset are classified as Finance leases. The Company has taken a Plot of Land on finance lease from Greater Noida Industrial Development Authority (GNIDA). 1.16 Accounting for Joint Ventures The Company's investments in jointly controlled entities is reflected as investment and accounted for in accordance with the company's accounting policy of investments. 2.34 There are no amounts due to the suppliers covered under the Micro, Small and Medium Enterprises Development Act, 2006: this information takes into account only those suppliers who have responded to the enquiries made by the Company for this purpose. This has been relied upon by the Auditors. 2.35 In the opinion of the management, the trade receivables, current assets, loans and advances and trade payables are approximately of the value stated if realized in the ordinary course of business. The provisions for all known liabilities are adequate. 2.36 Status of Various Projects a) The Company is developing a Group Housing Project "Exbrss Park View" at Plot No GH-10B, Sector CHI-V, Greater Noida, U.P., located in main Noida- Greater Noida Exbrssway. This Group Housing has all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consisting of 332 flats in totality, consisting of 2 Bed Rooms and 3 Bed Rooms in sizes varying 831sq.ft. to 1458 sq.ft. The Project is fully Completed in all respect and the company has started giving possession to the unitholders. The Company has booked total 303 Flats of varying sizes & out of which the company has given possession of 94 Units in the said project and has collected the booking amount of Rs. 73.44 Crore for the above said booking of flats till 31.03.2015. b) The Company had entered into a Partnership "IITL-NIMBUS THE HYDE PARK NOIDA" in April 2010 with M/s IITL Projects Ltd. & M/s Supertech Ltd. to develop the Group Housing Project "The Hyde Park" at Plot No. GH-03, Sector 78, Noida. The agreed Capital Ratio between the partners is 45:45:10 and profit will be shared in the Weighted Average Capital Ratio. The Hyde Park Project for Residential Development shall encompass all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consisting of 2044 flats in totality. Apartments shall be of IBHK/ 2BHK/ 3BHK & 4BHK in sizes varying 525sq.ft. to 2428 sq.ft. The Partnership Firm has booked total 1296 Flats of varying sizes in the said project and has collected the booking amount of Rs. 394.97 Crore for the above said booking of flats till 31.03.2015. c) The Company had entered into a Partnership IITL-NIMBUS THE EXbrSS PARK VIEW - with M/s IITL Projects Ltd. & M/s Assotech Ltd. in April 2011, to develop the Group Housing Project "Exbrss Park View - II" at Plot No. GH-03, Sector CHI-V, Greater Noida. The agreed Capital Ratio between the partners is 47.5:47.5:5 and profit will be shared in the Weighted Average Capital Ratio. The Exbrss Park View II, Project for Residential Development shall encompass all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consisting of 1668 flats in totality. Apartments shall be of 2BHK/ 3BHK & 4BHK in sizes varying 984 sq.ft. to 2191 sq.ft. The Partnership Firm has booked total 662 Flats of varying sizes in the said project and has collected the booking amount of Rs. 164.34 Crore for the above said booking of flats till 31.03.2015. d) The Company had entered into a Partnership IITL-NIMBUS THE PALM VILLAGE - with M/s IITL Projects Ltd. & M/s Assotech Ltd. in June 2011, to develop the Group Housing Project "The Golden Palm Village" at Plot No. GH-03, Sector 22A, Greater Noida of Yamuna Exbrssway Industrial Development Authority. The agreed Capital Ratio between the partners is 47.5:47.5:5 and profit will be shared in the Weighted Average Capital Ratio. The Golden Palm Village, Project for Residential Development shall encompass all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. The Partnership Firm has booked total 211 Flats of varying sizes in the said project and has collected the booking amount of Rs. 16.11 Crore for the above said booking of flats till 31.03.2015. e) The company holds the 50% shareholding i.e. (500000 Equity Shares & 11250000 Preference Shares) of M/s "Capital Infraprojects Pvt. Ltd.". The company M/s "Capital Infraprojects Pvt. Ltd." is developing a Group Housing Project at Plot No. GH-01/E, Sector - 168, Noida. The Project "The Golden Palms" shall encompass all important facilities and amenities such as well laid out roads and paths, landscaped areas and beautiful parks, street lights and well designed services to give world class comfort feeling to the residents. Project consisting of 1408 flats & 49 Commercial Units in totality. Apartments shall be of Studio Appt. / 2BHK/ 3BHK & 4BHK in sizes varying 506sq.ft. to 2629 sq.ft. The Company M/s "Capital Infraprojects Pvt. Ltd." has booked total 825 Flats of varying sizes & 22 Commercial Units in the said project and has collected the booking amount of Rs. 266.07 Crore for the above said bookings till 31.03.2015. 2.37 The Company has increased its share from 90% to 98% in Partnership Firm "INDOGREEN INTERNATIONAL" which is running a Hotel "The Golden Palms Hotel & Spa". The said hotel starts in June 2013 & successfully running during the brvious year. The Firm is a jointly controlled entity and brpares its own separate financial statements and will be assessed as Firm under the Income Tax Act. 2.38 The Company during the brvious year has sold the 47733 shares (97.58% shares) of M/s Hepta Developers Pvt. Ltd., which is also a Real Estate Development company, Now M/s Hepta Developers Pvt. Ltd. has ceased to the subsidiary of our company. 2.39 The Company as on 18.03.2015, has formed a wholly owned, Non-Material, Subsidiary Company namely M/s Golden Palms Facility Management Pvt. Ltd. to providing the maintenance Facility to the Group Housing Projects developing by the company individually and also those projects which are developing in Joint Venture. As on 31.03.2015, Company's Contractual Liability is arise to Subscribe the 1,00,000 Fully paid up Equity Shares @ Rs. 10/- Per Share and the said shares is actually subscribe by the company as on 21.04.2015. 2.42 In terms of the accounting policy for revenue recognition, estimates of project costs and revenues are reviewed periodically by the management and the impact of any changes in such estimates are recognised in the period in which such changes are determined. 2.43 In accordance with the provisions of Companies Act, 2013, the Company has revised the useful life of its fixed assets to comply with the life as mentioned under Schedule II of the Companies Act, 2013, and as per the transition provisions, the Company has adjusted net credit of Rs.2,15,149/- with the opening balances of retained earnings, i.e., surplus in the Statement of Profit and Loss. 2.44 The company is mainly engaged in Real Estate and Infrastructure Development activities which constitute Single Primary Business Segment as defined under As-17. 2.45 In the absence of sufficient profits, no provisions has been made during the year ended 31.03.2015, for Dividend, on 8% Non - Cumulative, Non - Convertible, Non - Participating, Compulsory Redeemable Preference Shares. 2.46 The Company, was in the process of appointing a Chief Financial Officer as key managerial personnel during the year ended 31.03.2015 and Mr. Jitendra Kumar is appointed as a Chief Financial Officer w.e.f. 14.05.2015. 2.47 Previous year figures have been regrouped, rearranged and/or reclassified wherever necessary to conform to current year's classification. As per our report of even date FOR ANIL PRAHALAD & Co. Chartered Accountants Firm Reg. No. 003921C CA ANIL KUMAR Propriter (Membership Number: 073030) For and on behalf of the Board of Directors BIPIN AGARWAL (Chairman & Mg. Director) DIN - 00001276 JITENDRA KUMAR (Chief Financial Officer) LALIT AGARWAL (Director) DIN - 00003903 S. K. SETHI (Company Secretary) Place :Delhi Date: 01.07.2015 |