Significant Accounting Policies:
1. Corporate Information:
ART NIRMAN LIMITED ("the Company") having CIN: L45200GJ2011PLC064107 was incorporated on February 19, 2011 as a Private Limited company under the Companies Act, 1956, with Registrar of Companies, Ahmedabad. The Company was later on converted into a Public Company w.e.f. September 2, 2016 and has its registered office at 410, JBR Arcade, Science City Road, Sola Ahmedabad 380060, Gujarat, India. The Company's equity shares are listed on The National Stock Exchange of India Limited (NSE) Emerge Platform. The Company is engaged in the business of real estate development and allied activities.
2. Basis of Preparation of Financial Statements:
The Financial Statements of the Company have been prepared and presented under the historical cost convention and on the accrual basis in accordance with Generally Accepted Accounting Principles (GAAP) in India. GAAP comprises Indian Accounting Standards(referred to as "Ind AS") notified by the Central Government of India under section 133 of the Companies Act, 2013, other pronouncements of Institute of Chartered Accountants of India, the provisions of Companies Act, 2013 and guidelines issued by Securities and Exchange Board of India.
The financial statements are presented in Indian Rupee ("INR") and all values are rounded to the nearest INR Lakh, except when otherwise indicated.
3. Use of Estimates and judgements :
The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make estimates and judgments that affect the reported balances of assets and liabilities, disclosures of contingent liabilities as at the date of financial statements and the reported amounts of income and expenses for the periods presented.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.
4. Property, plant and equipment and depreciation and amortisation:
(i) Recognition and initial measurement
Property, plant and equipments are stated at cost less accumulated depreciation / amortization and impairment losses, if any.
Cost comprises the purchase price and any attributable / allocable cost of bringing the asset to its working condition for its intended use. The cost also includes direct cost and other related incidental expenses. Revenue earned, if any, during trial run of assets is adjusted against cost of the assets. Cost also includes the cost of replacing part of the plant and equipment
Borrowing costs relating to acquisition / construction / development of tangible assets, which takes substantial period of time to get ready for its intended use are also included to the extent they relate to the
period till such assets are ready to be put to use.
When significant components of property and equipments are required to be replaced at intervals, recognifion is made for such replacement of components as individual assets with specific useful life and depreciafion, if these components are inifially recognised as separate asset. All other repair and maintenance costs are recognised in the Statement of Profit and Loss as incurred.
(ii) Subsequent measurement (depreciation and useful lives)
Depreciafion is provided from the date the assets are put to use, on straight line basis as per the useful life of the assets as prescribed under Part C of Schedule II of the Companies Act, 2013.
Depreciable amount for assets is the cost of an asset, or other amount subsfituted for cost, less its esfimated residual value.
The residual values, useful lives and methods of depreciafion of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
Gains or losses arising from derecognifion of property, plant and equipment are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.
(iii) De-recognition
PPE are derecognised either when they have been disposed of or when they are permanently withdrawn from use and no future economic benefit is expected from their disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognised in the Statement of Profit and Loss in the period of de-recognifion.
5. Intangible assets
(i) Recognition and initial measurement
Intangible assets are stated at cost less accumulated amorfisafion and impairment losses, if any. Cost comprises the acquisifion price, development cost and any attributable / allocable incidental cost of bringing the asset to its working condifion for its intended use.
(ii) Subsequent measurement (Amortisation)
All intangible assets with its useful life are amortised on a straight line basis over the esfimated useful life.
The carrying amount of intangible asset is reviewed at each financial year end for impairment based on internal /external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amo unt is the greater of the asset's net selling price and value in use.
Gain or losses arising from derecognifion of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the asset is derecognised.
6. Inventory
Inventories comprising of completed units are valued at lower of cost or net realisable value and Inventories comprising of construction work-in-progress are valued at cost. Construction work-in-progress includes cost of land, premium for development rights, construction costs, allocated interest and expenses incidental to the projects undertaken by the Group.
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