I. BASIS OF brPARATION These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 (the 'Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a new accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. II. USE OF ESTIMATES The brparation of financial statements, in conformity with the generally accepted accounting principles, requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known / materialized. III. FIXED ASSETS Fixed Assets are stated at cost less accumulated debrciation. Interest and other financial charges on loans borrowed specifically for acquisition of capital assets are capitalized till the start of its intended use. IV. INTANGIBLE 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 enterprises and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and accumulated impairment losses, if any. V. DEbrCIATION AND AMORTISATION Debrciation on fixed assets is provided on the basis of the useful lives as provided in the Schedule II to the Companies Act 2013, being applicable from 1st April, 2014. VI. INVESTMENTS Long term investments are stated at cost. Current investments are stated at cost or fair value whichever is lower. Diminution in value of long term investments other than temporary in nature is charged to Statement of Profit & Loss. VII. INVENTORIES Inventories are valued at lower of cost and net realisable value. VIII. PROVISIONS AND CONTINGENT LIABILITIES Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the Company has a possible obligation or a brsent obligation and it is probable that a cash outflow will not be required to settle the obligation. Provisions and Contingent Liabilities are revalued at each Balance sheet date. IX. REVENUE RECOGNITION Revenues are recognised in accordance with the guiding principles of Accounting Standard - 9, notified in the Companies (Accounting Standards) Rules, 2006. X. BORROWING COSTS Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of assets. All other borrowing costs are charged to revenue. A qualifying asset is one that takes substantial period of time to get ready for its intended use XI. TAXATION Income Tax expense comprises of current tax and deferred taxes. Income tax Expense is accounted for in accordance with AS-22 "Accounting for Taxes on Income" which includes current tax and deferred taxes. Deferred income tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences for earlier years. Deferred tax assets arising from timing differences are recognised to the extent, there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets will be realised. XII. EMPLOYEE BENEFITS a) Short term employee benefits are recognised as expense at the undiscounted amount in the value of relevant assets. Impairment loss, when crystallizes, are charged against revenues for the year. EARNING PER SHARE Basic earnings per share are calculated by dividing the net profit/loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. 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 equity shares outstanding during the period are adjusted for the effects for all dilutive potential equity shares. CASH AND CASH EQUIVALENTS Cash and cash equivalents for the purpose of cash flow statement comprise current account bank balance, cash in hand and bank deposit account balance (with maturity of three months or less as at the balance sheet date). 1. The Board of Directors of the Company have decided not to proceed further with the proposal of amalgamation of its wholly owned subsidiary, M/S Emami Realty Limited with M/S Zandu Realty Limited and accordingly all proceedings in connection therewith have been withdrawn. 2. Contingent Liabilities not provided for in respect of : a. Corporate Guarantees on behalf of Subsidiary Company - Emami Realty Ltd for Rs.450 crores (P.Y. Rs. 200 crores). b. Income Tax under dispute (Net of advances) of Rs. 47,29,050/- (P.Y. Rs. 52,29,050/-). 3. The Company operates in a single Business Segment i.e. Real Estate Development. 4. Previous year's figures have been rearranged or regrouped wherever necessary. As per our report of even date For and on behalf of the Board of Directors For S. K. AGRAWAL & CO. Chartered Accountants Firm Registration No. 306033E Abhijit Datta Hari Chairman Mohan Marda Director Ram Gobind Ganeriwala Director Radhakrishan Tondon Partner Membership No. 060534 Karabi Sengupta Director Girja Kumar C Wholetime Director & CFO houdhary Payel Jain Company Secretary place : Kolkata date : May 25, 2015 |