By Himanshu V. Kishnadwala, Chartered Accountant
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Other Notes
The Company’s normal operating cycle in respect of operations relating to under-construction real estate projects may vary from project to project depending upon the size of the project, type of development, project complexities and related approvals. Operating cycle for all completed projects and hospitality business is based on 12 months period. Assets and liabilities have been classified into current and non-current, based on the operating cycle of respective businesses.
Mahindra Lifespace Developers Ltd (31-3-2012)
Presentation and Disclosure of Financial Statements
During the year ended 31st March, 2012, the Revised Schedule VI notified under the Companies Act, 1956 has become applicable to the company, for preparation and presentation of its financial statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. Assets & liabilities have been classified as Current & Non – Current as per the Company’s normal operating cycle and other criteria set out in the Schedule VI of the Companies Act, 1956. Based on the nature of activity carried out by the company and the period between the procurement and realisation in cash and cash equivalents, the Company has ascertained its operating cycle as five years for the purpose of Current and Non-Current classification of assets & liabilities.
