Note1: CORPORATE INFORMATION MAXHEIGHTS INFRASTRUCTURE LIMITED ('the Company') incorporated in India on July 28, 1981, a company incorporated under the laws of India. The Company's shares are publicly traded on the Bombay Stock Exchange ('BSE'), India and Calcutta Stock Exchange. The Registered office of the Company is situated at SD - 65, Tower Appartments Pitampura New Delhi -110034 Note2: BASISOFbrPARATION The financial statements of the Company have been brpared in accordance with the generally accepted accounting principles in India (Indian GAAP). The financial statements have been brpared to comply in all material respects with the accounting standards notified under the Companies (Accounts) Rules, 2015 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year, except for the change as explained in note the below. Note3: ACCOUNTINGPOLICIES Significant accounting policies are summarized below: 3.1 Change in accounting policy - brsentation and disclosure of financial statements • The financial statements of the Company have been brpared and brsented for the year ended March 31, 2015, as per the format brscribed under the Schedule III notified under the section 129 of Companies Act, 2013. The adoption of Schedule III does not impact recognition and measurement principles followed for the brparation of the financial statements. • The Company has reclassified the brvious year figures in accordance with the requirements applicable in the current year and same had been notified wherever required. 3.2 Use of estimates • The brparation of the financial statement in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported balances of assets & liabilities and disclosure relating to contingent assets & liabilities as at the date of the financial statements and reported amounts of income & expenses during the period. • Accounting estimates could change from period to period. Actual result could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed. 3.3 Revenue recognition • Revenue from the sale of Real estate is recognized in the financial year in which agreement to sell is executed or when the substantial risk and rewards of the ownership is transferred to buyer. • Interest accrues on the time basis determined by the amount outstanding and the rate applicable. • Revenue from commission is recognized only when service is completed. 3.4 Tangible Assets • Tangible assets are stated at cost, less accumulated debrciation and impairment, if any. Direct costs are capitalized until such assets are ready for use. • Gains and losses arising from retirement or disposal of the tangible assets are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in statement of profit and loss on the date of retirement and disposal. 3.5 Debrciation and Amortization Debrciation on tangible assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Debrciation for assets purchased / sold during a period is proportionately charged. The Management estimates the useful lives for the other fixed assets as follows: 3.6 Investments • Investments are either classified as current or long-term based on Management's intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment individually. Long term investments are carried at cost less provisions recorded to recognize any decline, if any, other than temporary, in the carrying value of each investment. 3.7 Inventories Inventories are valued as under: • Building material and consumable stores are valued at cost, which is determined on the basis of FIFO. • Land is valued at cost, which is determined on average method. Cost includes cost of acquisition and all related costs. • Construction work in progress is valued at cost. Cost includes cost of material, services and other related overheads related to project under construction. • Unsold Portion / Portion under construction is shown at cost under the head stock in trade Construction Activity. • Inventory of shares has been valued at cost. 3.8 Foreign Currency Transactions The Company had not done any foreign currency transactions during the year. 3.9 Employee Benefits • Short term employee benefits are recognized in the year during which the services have been rendered. • The employees of the Company are entitled to compensate absences which are non-accumulating in nature. Expense on non-accumulating compensated absences is recognized in the period in which the absences occur. • No employee of the company has been into employment of the company for more than 5 Years. Therefore no provision is accrued for gratuity and leave encashment. 3.10 Borrowing Cost • Financial Costs relating to borrowed funds attributable to the acquisition or construction of fixed assets which takes substantial period of time to get ready for its intended use is capitalized as part of the cost of that asset in accordance to AS 16. The interest cost incurred for funding a qualifying asset during the construction period is capitalized based on actual investment in the asset at the average interest rate for specific borrowings. However, financing costs (including interest) on fixed assets purchased on deferred credit basis or on the monies borrowed for the construction or acquisition of fixed assets are not capitalized to the extent that such costs relate to periods after such assets are ready to be put to use. 3.11 Taxes on Income • Income taxes are accrued in the same period that the related revenue and expenses arise. A provision is made for income tax annually, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis. Provision for income tax ofRs. 20.94 Lacs has been made in the accounts for the year ending 31st March 2015, which has been worked out on the basis of taxable income as per the IncomeTax Act 1961. • Deferred income taxes reflects 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 rates and the tax laws enacted or substantively enacted at the balance sheet date. 3.12 Earnings Per Share • The earnings considered in ascertaining the Company's Earnings Per Share ('EPS') comprise of the net profit after tax and dividend on brference shares attributable to equity shareholders. The number of shares used in computing basic EPS is the number of shares outstanding duringthe year. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares (if any) unless impact is anti dilutive. 3.13 Cash & Cash equivalents • Cash and cash equivalents comprise of cash and cash on deposit with banks and corporations. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. • Cash in hand has been certified by the management at the close of the year. 3.14 Current Assets • In the opinion of the management, current assets, loans & advances have the value on the realization in the ordinary course of business equal to the amount at which they are stated and all known liabilities have been adequately provided for. 3.15 Cash Flow Statement • Cash flows are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated. 3.16 Provisions and Contingencies • Provisions are recognized when the Company has a brsent obligation as a result of past event; it is more likely than not 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 its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. • 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 not wholly within the control of the Company or a brsent obligation that is not recognized because it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability. Contingent liability has been disclosed in accordance with AS-29, issued by The Institute of Chartered Accountants of India. As per our report of even date For Deepak Narang & Associates Chartered Accountants Firm Reg. No. 016594N For and on Behalf of the Board Sd/- Deepak Narang Partner Membership No.097348 Sd/- Satish Chander Narang Chairman DIN:00095693 Regd. Off.: SD-65 Tower Apartment Pitampura, New Delhi-1100034 Sd/- Naveen Narang Managing Director & CFO DIN: 00095708 Regd. Off.: SD-65 Tower Apartment Pitampura, New Delhi-1100034 Sd/- Jasbret Kaur Company Secretary M.No.A38684 Regd. Off.: SD-65 Tower Apartment Pitampura, New Delhi-1100034 Place: New Delhi Date: 03/06/2015 |