1. Nature of operations
	Kalpataru Limited (hereinafter referred to as ‘the Parent Company’ or ‘the Company’) together with its subsidiaries, associates and joint ventures (collectively referred to as “ The Group”) is engaged primarily in the business of construction and Real Estate Development. The Group is based in Mumbai, India. The Group has experience in building large residential and commercial complexes and townships in Mumbai, Thane and Pune.The Group’s operations are extended to various cities (including Mumbai, Pune, Surat, Ahmedabad, Nagpur, Udaipur and Hyderabad) across the country.
	2. Basis of brparation of consolidated financial statements
(i)	The Consolidated Financial Statements (CFS) of the Group are  brpared under the Historical Cost Convention, on going concern  basis, in accordance with the Generally Accepted Accounting Principles (GAAP) in India and Accounting Standard-21 ”Consolidated Financial Statements” as notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.
(ii)	CFS are brpared to the extent possible using uniform accounting policies for transactions and other events in similar circumstances, except in case of partnership firms and limited liability partnership controlled by the Company, where debrciation on fixed assets is provided on the written down value method at the rates and in the manner brscribed in Income Tax Act, 1961. Written down value of such fixed assets as at 31 March 2016 is Rs.1,664 lakhs (Rs.1,912 lakhs).
(iii)	CFS are brpared on line-by-line basis by adding together like items of assets, liabilities, income and expenses. All significant inter-group transactions, unrealized inter-company profits and balances have been eliminated in the process of consolidation. Minority interest in subsidiaries/enterprises controlled by the Company rebrsents the Minority Shareholders` / Partners` proportionate share of the net assets and net income.
(iv)	The CFS includes the financial statements of the Parent Company, subsidiaries and enterprises controlled by the Company (as listed in the table below). Subsidiaries/ enterprises controlled by the Company, are consolidated from the date on which effective control is acquired by the Parent Company and are excluded from the date of transfer / disposal. All the subsidiaries / enterprises controlled by the Company have been incorporated in India.
	Sr. No	Name of the Enterprise			Proportion of interest (including beneficial interest) / voting power (either directly / indirectly through subsidiaries)
		2016	2015
		Direct Subsidiaries / Enterprises controlled by the Company
	1	Abacus Real Estate Private Limited			100%	100%
	2	Abhiruchi Orchards Private Limited			100%	100%
	3	Amber Enviro Farms Private Limited			100%	100%
	4	Amber Orchards Private Limited			100%	100%
	5	Ambrosia Enviro Farms Private Limited			100%	100%
	6	Ambrosia Real Estate Private Limited			100%	100%
	7	Anant Orchards Private Limited			100%	100%
	8	Ardour Properties Private Limited			100%	100%
	9	Arena Orchards Private Limited			100%	100%
	10	Arimas Developers Private Limited*			100%	100%
	11	Arimas Real Estate Private Limited			100%	100%
	12	Astrum Orchards Private Limited			100%	100%
	13	Aura Real Estate Private Limited*			100%	100%
	14	Axiom Orchard Private Limited			100%	100%
	15	Azure Tree Enviro Farms Private Limited			100%	100%
	16	Azure Tree Lands Private Limited			100%	100%
	17	Azure Tree Orchards Private Limited			100%	100%
	18	Kalpataru Constructions (Poona) Private Limited			100%	99.89%
	19	Kalpataru Land (Surat) Private Limited			100%	100%
	Sr. No	Name of the Enterprise			Proportion of interest (including beneficial interest) / voting power (either directly / indirectly through subsidiaries)
		2016	2015
	20	Kalpataru Land Private Limited			100%	100%
	21	Kalpataru Properties (Thane) Private Limited			100%	100%
	22	Kalpataru Retail Ventures Private Limited			100%	100%
	23	Kalpataru Gardens Private Limited			99.37%	99.37%
	24	Propnova Properties Private Limited			100%	100%
	25	Swarn Bhumi Township Private Limited			66.60%	66.60%
	26	Kalpataru Urbanscape Private Limited $			100%	-
	27	Kamdhenu Constructions			62.50%	62.50%
	28	Kalpataru + Sharyans			99%	99%
	29	Kalpataru Constructions (Pune)			99%	99%
	30	Kalpataru Enterprises			95%	95%
	31	Kalpataru Shubham Enterprises #			100%	100%
	32	Kiyana Ventures LLP #			80%	80%
	33	Kalpa-Taru Property Ventures LLP			95%	95%
	34	Shravasti Ventures LLP #			100%	100%
	35	Aseem Ventures LLP			95%	95%
	36	Kanani Developers LLP #			100%	100%
		Indirect Subsidiaries / Enterprises controlled through Subsidiaries
	37	Girirajkripa Developers Private Limited  [Held through Swarn Bhumi Township Private Limited]			66.60%	66.60%
	38	Ardour Developers Private Limited  [Held through Kalpataru Properties (Thane) Private Limited]			100%	100%
	39	Kalpak Property Ventures LLP  [99% Held through Kalpataru Properties (Thane) Private Limited]			100%	95%
	* Became indirect subsidiaries of the Company w.e.f. 1 April 2016.
	$ Became subsidiary of the Company w.e.f. 20 August 2015.
	# 1% held through Kalpataru Properties (Thane) Private Limited.
(v)	Associates
	The Group has adopted and accounted for Investment in Associate in these CFS, using the “Equity Method” as per Accounting Standard - 23. Associate company has been incorporated in India.
	Name of the Associate				Extent of holding
			2016	2015
	Ananta Landmarks Private Limited				49.50%	49.50%
(vi)	Joint Ventures
	a) The Group has adopted and accounted for interest in the Joint Ventures in these CFS, using the “Proportionate Consolidation Method” in accordance with Accounting Standard - 27. All the Joint ventures have been incorporated in India.
	Sr. No	Name of the Enterprise			Extent of holding
			2016	2015
	1	Azure Tree Townships LLP			30%	30%
	2	Messers Habitat			49%	49%
	3	Kara Property Ventures LLP			50%	50%
	No adjustment is made for difference in accounting policy for debrciation on fixed assets of above joint ventures, which is provided on the written down value (WDV) method at the rates and in the manner brscribed in the Income Tax Act, 1961. Written down value of such fixed assets as at 31 March 2016 is Rs.45 lakhs (Rs.30 lakhs).
	b) The Parent Company’s share of contingent liabilities in the Joint Ventures as at 31 March 2016 is Rs. 304 lakhs (Rs.309 lakhs).
3	Significant accounting policies
(i)	Use of estimates
	The brparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of consolidated  financial statements and the result of operation during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Significant estimates used by the management in the brparation of these  consolidated financial statements include project cost, revenue and saleable area estimates, estimates of economic useful lives of fixed assets, provisions for bad and doubtful debts. Any revision to accounting estimates is recognised prospectively.
(ii)	Operating cycle
	The Group is engaged in the business of real estate activities where the operating cycle commences with the acquisition of land / project, statutory approvals, construction activities and ends with sales which is always more than twelve months. Accordingly classification of assets and liabilities into current and non-current has been done considering the relevant operating cycle of the projects.
(iii)	Fixed Assets
	a)  Goodwill on consolidation
		Goodwill rebrsents the difference between the Group’s share in the net worth of subsidiaries / joint ventures and the cost of acquisition at the time of making the investment in the subsidiaries / joint ventures. Capital reserve rebrsents negative goodwill arising on consolidation.
	b)  Fixed assets
	i.	Tangible fixed assets are stated at original cost (net of tax/duty credit availed) less accumulated debrciation, amortisation and impairment losses if any, except freehold land which is carried at cost. Cost includes cost of acquisition, construction and installation, taxes, duties, freight, other incidental expenses related to the acquisition/construction, trial run expenses (net of revenue) and  br-operative expenses including borrowing costs incurred during br-operational period.
	ii.	Intangible assets are carried at cost, net off accumulated amortization and impairment loss, if any.
	iii.	Projects under which tangible fixed assets are not ready for their intended use are carried at cost, comprising direct cost and related incidental expenses.
(iv)	Debrciation and amortization
	a) Debrciation on tangible fixed assets is provided on written down value method based on the useful life specified in Schedule II of the Companies Act, 2013. However in respect of certain enterprises controlled by the Company and joint ventures, which are Partnership Firms and Limited Liability Partnership, debrciation on tangible fixed assets is provided on the written down value (WDV) method at the rates and in the manner brscribed in Income Tax Act, 1961 [Refer Note 2(ii) and 2(vi)].
	b) Intangible assets are amortized on a straight line basis over the economic useful life estimated by the management.
	c) Sales office costs at various sites are amortised on straight line basis over the period of sixty months as estimated by the management.
(v)	Investments
	a) Investments, which are readily realisable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.
	b) Long-term investments are valued at cost less provision for diminution other than temporary in the value of such investments. Current investments are stated at lower of cost and fair value.
	c) Investment in property
	Investment in property which is not intended to be occupied substantially for use by or in the operation of the Group is classified as investment  property. Investment property is stated at cost. The cost comprises purchase price, borrowing costs if capitalisation criteria is met and directly attributable cost of bringing the investment property to its working condition for the intended use.
(vi)	Inventories
	Inventories are valued at lower of cost and net realisable value. The cost of raw materials (construction materials) is determined on the basis of weighted average method. Cost of work-in-progress and finished stock includes cost of land / development rights, construction costs, allocated borrowing costs and expenses incidental to the projects undertaken by the Group.
(vii)	Revenue recognition
	(i) Revenue from real estate activity
	a) For projects commenced and revenue recognized before 01 April 2012
	Revenue from sale of real estate projects is recognised as per “Percentage of Completion Method” of accounting. The percentage completion of construction work is certified by the registered Architect, subject to such percentage being 25 percent or more.
	b) Effective 1 April 2012, in accordance with the “Guidance Note on Accounting for Real Estate Transactions (Revised 2012)” (Guidance Note) issued by the ICAI, all projects commencing on or after the said date or projects which have already commenced, but where the revenue is recognized for the first time on or after the above date, construction revenue on such projects is recognized on percentage of completion method provided the threshold levels as brscribed in the said Guidance Note have been met. The method of determination of stage of completion of construction work is certified by the registered Architect, subject to such percentage being 25 percent or more, and revenue computed under this method in any case does not exceed the revenue computed with reference to the ‘project cost method’.
	Revenue is recognised net of indirect taxes and comprises the aggregate amounts of sale price as per the documents entered into. The total saleable area and estimate of costs are reviewed periodically by the management and any effect of changes therein is recognized in the period in which such changes are determined. However, if and when the total project cost is estimated to exceed the total revenue from the project, the loss is recognized in the same financial year.
	c) Revenue in respect of completed units, is recognised when the significant risks and rewards of ownership of the units in real estate have been passed on to the buyer.
	(ii) Revenue from sale of land and development rights
	Revenue from sale of land and development rights is recognised upon transfer of all significant risks and rewards of ownership of such real estate/ property, as per the terms of the contracts entered into with buyers.
	(iii) Project management fees
	Revenue from project management fees is recognised on accrual basis as per the terms of agreement.
	(iv) Lease income
	a) Revenue from license fee and other charges earned by way of leasing residential and commercial brmises is recognized in the statement of profit and loss on accrual basis as per the agreed terms.
	b) Revenue from service charges is recognized as per the terms of the lease agreement.
	(v) Dividend income
	Dividend income is recognized when the right to receive the dividend is established.
	(vi) Interest income
	Interest income is recognized on time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Other income" in the statement of profit and loss.
	(vii) Revenue from sale of plants
	Revenue from sale of plants is recorded net of trade discounts and at the time of delivery of goods to customers.
(viii)	Employee benefits
	a) Short-term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.
	b) Post-employment and other long-term benefits are recognised as an expense in the statement of profit and loss at the brsent value of the amounts payable determined using actuarial valuation techniques in the year in which the employee renders services. Actuarial gains and losses are charged to the statement of profit and loss. However in case of a subsidiary, post-employement long-term benefits are provided on estimate basis.
	c) Payments to defined contribution retirement benefit schemes are expensed when due.
(ix)	Borrowing costs
	Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such assets till such time the asset is ready for its intended use. All other borrowing costs are recognised as expense.
(x)	Leases
	a) Operating lease
	Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating lease.  Lease payments and receipts under operating lease are recognised as an expense and income on accrual basis in accordance with the respective lease agreements.
	b) Finance lease
	Assets acquired under finance lease are capitalised and the corresponding lease liability is recorded at an amount equal to the fair value of the leased asset at the inception of the lease. Initial costs which are directly attributable to the lease are recognised with the asset under the lease.
(xi)	Accounting for taxes on income
	a) Current tax is determined as the amount of tax payable in respect of taxable income of the year as per the provisions of the Income-tax Act, 1961.
	b) Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, 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 and measured using relevant enacted tax rates.
	c) Minimum Alternate Tax (MAT) / Alternate  Minimum Tax (AMT) paid in accordance with tax laws, which give rise to future economic benefits in the form of adjustment of future tax liability, is recognized as an asset only when, based on convincing evidence, it is probable that the future economic benefits associated with it will flow to the group and the assets can be measured reliably.
(xii)	Foreign currency transactions
	a) Foreign currency transactions are recorded in the reporting currency (Indian rupee) by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency on the date of the transaction.
	b)  All monetary items denominated in foreign currency are converted into Indian rupees at the year-end exchange rate. The exchange differences arising on such conversion and on settlement of the transactions are recognised in the statement of profit and loss. Non-monetary items in terms of historical cost denominated in a foreign currency are reported using the exchange rate brvailing on the date of the transaction.
(xiii)	Impairment of tangible and intangible assets
	If carrying amount of tangible and intangible assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the higher of the net selling price or value in use. Value in use is determined by the brsent value of estimated cash flows.
(xiv)	Earnings per share
	Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent equity shares outstanding during the year, except when the results would be anti dilutive.
(xv)	Provisions, contingent liabilities and contingent assets
	Contingent liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events. A provision is made when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation and in respect of which a reliable estimate can be made. Provision is not discounted and is determined based on best estimate required to settle the obligation at the year-end date. Contingent assets are not recognized or disclosed in the financial statements.

Employee benefits
a) Short-term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.
b) Post-employment and other long-term benefits are recognised as an expense in the statement of profit and loss at the brsent value of the amounts payable determined using actuarial valuation techniques in the year in which the employee renders services. Actuarial gains and losses are charged to the statement of profit and loss. However in case of a subsidiary, post-employement long-term benefits are provided on estimate basis.
c) Payments to defined contribution retirement benefit schemes are expensed when due.

Note - 31   Employee benefits
The employees’ gratuity fund scheme (unfunded) is a defined benefit plan. The brsent value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises 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. The obligation for leave encashment (unfunded) is recognised in the same manner as gratuity.
(I) Gratuity expenses recognised during the year (Under the head Employee benefit expense)
						(Rs. in lakhs)
					2016	2015
Current service cost					67	50
Interest cost					46	45
Actuarial (gain) / loss					56	137
Net Cost					169	232
(II) Reconciliation of opening and closing balances of Defined benefit obligation (Gratuity)
						(Rs. in lakhs)
					2016	2015
Defined benefit obligation as at 1 April					578	484
Current service cost					67	50
Interest cost					46	45
Actuarial (gain) / loss on obligation					56	137
Benefits paid					(103)	(138)
Defined benefit obligation as at 31 March					644	578
(III)  Actuarial assumptions
					2016	2015
Mortality Table (LIC)					2006-08	2006-08
		(Ultimate)	(Ultimate)
Discount rate (per annum)					8.07%	8.07%
Rate of escalation in salary (per annum)					3%	3%
Attrition rate					2%	2%
(IV)  Amount recognised in current year and brvious four years
	As at 31 March
Gratuity	2016	2015		2014	2013	2012
Defined Benefits obligations	643	578		484	460	384
Actuarial (gain)/loss on plan obligation	56	137		20	32	50
(V) Gratuity expense of Rs 21 lakhs (Rs. 28 lakhs) related to project employees has been transferred to work-in-progress/capital work-in-progress. Net amount of gratuity recognized as an expense and included in Note 23 under “Employee benefits expense” is Rs. 148 lakhs (Rs. (204 lakhs).
(VI) Leave encashment expense of Rs 10 lakhs (Rs. 14 lakhs) related to project employees has been transferred to work-in-progress/capital work-in-progress. Net amount of leave encashment recognized as an expense and included in Note 23 under “Employee benefits expense” is Rs. 86 lakhs (Rs. 83 lakhs).
(VII) The estimate of future salary increase in the actuarial valuation is considered after taking into account the rate of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.
(VIII) Contribution to provident and other funds is recognised as an expense in note 23 of the consolidated financial statements.

	Note - 30  Segment information
	Disclosure under Accounting Standard 17 - 'Segment Reporting' is not given as, in the opinion of the managament, the entire business activity falls under one segment, viz., Real estate development. The Company conduct its business in only one Geographical Segment, viz., India.