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Accounting Policies of ARSS Infrastructure Projects Ltd. Company

Mar 31, 2016

1. Corporate Information

ARSS Infrastructure Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956 read with Companies Act, 2013. Its shares are listed on two stock exchanges in India, namely BSE and NSE. The Company is engaged in execution of contracts of various infrastructure projects including road work, bridge work, railway tracking and irrigation projects.

2. Basis of Preparation

The financial statements are prepared on an accrual basis and under the historical cost convention in accordance with generally accepted accounting principles in India [Indian GAAP]. The Company has prepared these financial statements to comply in all material respects with the accounting standards issued by the Institute of Chartered Accountants of India, as applicable and prescribed under Section 133 of the Companies Act, 2013 (‘Act’ ) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified).

Except otherwise mentioned the accounting policies adopted in the preparation of financial statements are consistent with those of previous year. Also due to the peculiar nature of the business and uncertainties in the segment in which the company is operating, various issues have evolved requiring interpretation and clarifications. The Company is making substantial effort on an ongoing basis to improve reporting and disclosure in financial statement wherever required to comply with relevant law, rules and regulations.

3. Summary of Significant Accounting Policies

a. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Difference between the actual results and estimates is recognized in the period in which the actual results are known / materialized.

b. Tangible Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Self constructed assets are capitalized at cost including an appropriate share of overhead.

c. Depreciation on Tangible Fixed Assets

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets as estimated by the Management. The Management estimates the useful lives for the fixed assets as follows:

* Rate of Depreciation is arrived by considering further useful life for existing assets as on 01.04.2014 as per Technician Certificates or from the date of acquisition for other assets and Residual Value at 5% of cost.

Depreciation on addition / deletion of fixed assets during the year is provided on pro-rata basis with reference to the date of addition / deletion.

d. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

e. Investments

The Investments that are readily realizable and intended to be held for not more than a year from the Balance Sheet date are classified as current investments. All other investments are classified as non-current investments. On initial recognition, all investments are recognised at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried at the lower of cost and quoted/fair value, computed category wise. Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

Investments in integrated Joint ventures are carried at cost net of adjustments for the company’s share in profits or losses as recognized.

f. Sundry Debtors / Loans and Advances:

Sundry Debtors / Loans and Advances are stated net of provision for identified doubtful debts / advances wherever necessary. Sundry Debtors and Loans and Advances has been taken at reconciled amount for the parties from which the balance confirmation was received and for the rest Debtors and balances are taken as per book balance and are subject to adjustment and reconciliation, if any which will be done on receipts of confirmation from such parties. In the opinion of the management on which we have placed reliance, substantial part of Debtors and advances are outstanding for a period exceeding six months and they are subject to arbitration and other reconciliatory proceedings, the outcome and quantum of which is not ascertainable and determined, and subject to reconciliations referred to above, the debtors and Loans and advances to the extent as stated are considered good in the Balance Sheet.

g. Impairment of Assets:

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine:

- The provision for impairment loss required, if any, or

- The reversal required of impairment loss recognized in previous periods, if any,

Impairment loss is recognized when the carrying amount of asset exceeds its recoverable amount.

Recoverable amount is determined in the case of an individual asset, at higher of net selling price and the value in use.

h. Accounting for Joint Ventures Contracts

i. Contracts executed in Joint Venture under work sharing arrangement (consortium) are accounted for in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed.

ii. In respect of contracts executed in Integrated Joint Ventures under profit sharing arrangement (assessed as AOP under Income Tax Laws), the services rendered to the Joint Ventures are accounted for as income on accrual basis. The profit / Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint Venture is reflected as investments, loans and advances or current liabilities.

i Inventories

i. Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realizable value.

ii. Work in Progress

The work in progress has been determined by the Management at the estimated realizable value The value of work in progress comprises of value of materials and expenses incurred at site including estimated profits thereon in terms of guidelines provided under Accounting Standards AS 7 on Construction Contracts.

j. Revenue Recognition

Contract Receipt / Construction Contract :

In respect of Construction contracts and in manner specified under Accounting Standard AS-7 on Construction Contracts, Revenue is recognized on Stage of Completion Method based on the Bills submitted, certified and sanctioned by the appropriate authorities and Work completed and Uncertified Bills for work executed on the Project and does not include material supplied by the clients free of cost. The relevant cost is recognized in accounts in the year of recognition of the revenue. The total costs of contract are estimated by Company and are based on technical and other estimates and assumptions.

The Company’s financial position is subject to strict conditions imposed by Banks implementing CDR programme, resultantly the performance and execution of the projects at times is affected. In case of premature termination of contract there is uncertainty in the outcome of the Projects.

Hence in terms of para 34 of the AS-7 Company has recognized contract revenue and contract cost which is direct cost specifically identifiable and directly attributable to the specific contract in accordance with para 31 instead of para 21, i.e. contract revenue to the extent of cost incurred of which recovery is probable and contract cost in the period in which they are incurred. Also based on the above, an expected loss, if any to the extent as identified and quantified, is recognized as an expenses immediately in accordance with para 35.

Further apportionment and allocation of combined Operating overhead, Head office overhead, General overhead and Finance cost do not commensurate with size, nature and duration of projects being executed and hence the company is unable to specifically determine project wise profitability. Also adequate disclosure in terms of para 38, 39 and 41 of AS-7 have been made in accounts under relevant head/notes.

Other Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income recognized as and when right to receive established. All other income is recognized on accrual basis.

k. Taxes on Income

The Tax expenses comprise of current tax and deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates and tax laws that have been enacted by the Balance Sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. At each Balance Sheet date, recognized and unrecognized deferred tax assets are reviewed.

l. Employee Benefits

i) Defined contribution plans

Contributions paid/payable to defined contribution plans comprising of provident fund is recognized as expenses during the period in which the employees perform the services that the payments cover.

The Company makes monthly contributions and has no further obligations under the plan beyond its contributions.

ii) Defined benefit plan

Gratuity for employees is covered under a scheme of SBI Life Insurance and contributions in respect of such scheme are recognized in the Profit and Loss Account. The liability as at the Balance Sheet date is provided for based on the actuarial valuation, at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses comprise experience adjustments and the effect of changes in the actuarial assumptions and are recognized immediately in the Profit and Loss account as income or expense. Actuarial valuation is independently done by SBI Life Insurance Company Ltd and company has based its provisions the same. Financial effects of changes in those plans during the period in terms of AS-15 are as disclosed and recognized in Profit and Loss Accounts.

iii) Short term employee benefits

Short term employee benefits including compensated absences as at the Balance Sheet date are recognized as an expense as and when it paid.

m. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when an enterprise has a present obligation as a result of past event; it is probable 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 present 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.

Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, VAT, Income Tax and Sales Tax are disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the final outcome of the matter. Contingent Assets are neither recognized nor disclosed in the financial statements.

n. Earning per share :

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average no. of equity shares outstanding during the period. The weighted average no. of equity shares outstanding during the period is adjusted for events of shares split.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity share holders and weighted average no. of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

o. Overdue Charges in Respect of Loans

Overdue charges if any levied by Financial Institutions / Banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2015

A. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Difference between the actual results and estimates is recognised in the period in which the actual results are known / materialized.

b. Tangible Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Self constructed assets are capitalized at cost including an appropriate share of overhead.

c. Depreciation on Tangible Fixed Assets

Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets as estimated by the Management. The Management estimates the useful lives for the fixed assets as follows:

Particular Rate of * Useful Life * Depreciation

Building (Factory) 3.17% 30 Years

Building (Non Factory) 1.58% 60 Years

Plant and Equipment (Earth Moving) 10.56% 9 Years

Plant and Equipment (Non Earth Moving) 6.33% 15 Years

Furniture and fixtures 9.50% 10 Years

Vehicles 11.88% 8 Years

Computer 31.67% 3 Years

* Rate of Depreciation is arrived by considering further useful life for existing assets as on 01.04.2014 as per Technician Certificates or from the date of acquisition for other assets and Residual Value at 5% of cost.

Depreciation on addition / deletion of fixed assets during the year is provided on pro-rata basis with reference to the date of addition / deletion.

d. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

e. Investments

The Investments that are readily realizable and intended to be held for not more than a year from the Balance Sheet date are classified as current investments. All other investments are classified as non-current investments. On initial recognition, all investments are recognised at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried at the lower of cost and quoted/fair value, computed category wise. Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

Investments in integrated Joint ventures are carried at cost net of adjustments for the company's share in profits or losses as recognized.

f. Sundry Debtors / Loans and Advances:

Sundry Debtors / Loans and Advances are stated net of provision for identified doubtful debts / advances wherever necessary. Sundry Debtors and Loans and Advances has been taken at reconciled amount for the parties from which the balance confirmation was received and for the rest Debtors and balances are taken as per book balance and are subject to adjustment and reconciliation, if any which will be done on receipts of confirmation from such parties. In the opinion of the management on which we have placed reliance, substantial part of Debtors and advances are outstanding for a period exceeding six months and they are subject to arbitration and other reconciliatory proceedings, the outcome and quantum of which is not ascertainable and determined, and subject to reconciliations referred to above, the debtors and Loans and advances to the extent as stated are considered good in the Balance Sheet.

g. Impairment of Assets:

As at each balance sheet date, the carrying amount of assets is tested for impairment so as to determine:

* The provision for impairment loss required, if any, or

* The reversal required of impairment loss recognised in previous periods, if any,

Impairment loss is recognised when the carrying amount of asset exceeds its recoverable amount.

Recoverable amount is determined in the case of an individual asset, at higher of net selling price and the value in use.

h. Accounting for Joint Ventures Contracts

i. Contracts executed in Joint Venture under work sharing arrangement (consortium) are accounted for in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed.

ii. In respect of contracts executed in Integrated Joint Ventures under profit sharing arrangement (assessed as AOP under Income Tax Laws), the services rendered to the Joint Ventures are accounted for as income on accrual basis. The profit / Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint Venture is reflected as investments, loans and advances or current liabilities.

i Inventories

i. Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realizable value.

ii. Work in Progress

The work in progress has been determined by the Management at the estimated realizable value The value of work in progress comprises of value of materials and expenses incurred at site including estimated profits thereon in terms of guidelines provided under Accounting Standards AS 7 on Construction Contracts.

j. Revenue Recognition

Contract Receipt / Construction Contract :

In respect of Construction contracts and in manner specified under Accounting Standard AS-7 on Construction Contracts, Revenue is recognized on Stage of Completion Method based on the Bills submitted, certified and sanctioned by the appropriate authorities and Work completed and Uncertified Bills for work executed on the Project and does not include material supplied by the clients free of cost. The relevant cost is recognized in accounts in the year of recognition of the revenue. The total costs of contract are estimated by Company and are based on technical and other estimates and assumptions.

The Company's financial position is subject to strict conditions imposed by Banks implementing CDR programme, resultantly the performance and execution of the projects at times is affected. In case of premature termination of contract there is uncertainty in the outcome of the Projects.

Hence in terms of para 34 of the AS-7 Company has recognized contract revenue and contract cost which is direct cost specifically identifiable and directly attributable to the specific contract in accordance with para 31 instead of para 21, i.e. contract revenue to the extent of cost incurred of which recovery is probable and contract cost in the period in which they are incurred. Also based on the above, an expected loss, if any to the extent as identified and quantified, is recognized as an expenses immediately in accordance with para 35.

Further apportionment and allocation of combined Operating overhead, Head office overhead, General overhead and Finance cost do not commensurate with size, nature and duration of projects being executed and hence the company is unable to specifically determine project wise profitability. Also adequate disclosure in terms of para 38, 39 and 41 of AS-7 have been made in accounts under relevant head/notes.

Other Income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income recognized as and when right to receive established. All other income is recognized on accrual basis

k. Taxes on Income

The Tax expenses comprise of current tax and deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates and tax laws that have been enacted by the Balance Sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. At each Balance Sheet date, recognized and unrecognized deferred tax assets are reviewed.

l. Employee Benefits

i. Defined contribution plans

Contributions paid/payable to defined contribution plans comprising of provident fund are recognized as expenses during the period in which the employees perform the services that the payments cover.

The Company makes monthly contributions and has no further obligations under the plan beyond its contributions.

ii Defined benefit plan

Gratuity for employees is covered under a scheme of SBI Life Insurance and contributions in respect of such scheme are recognized in the Profit and Loss Account. The liability as at the Balance Sheet date is provided for based on the actuarial valuation, at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses comprise experience adjustments and the effect of changes in the actuarial assumptions and are recognized immediately in the Profit and Loss account as income or expense. Actuarial valuation is independently done by SBI Life Insurance Company Ltd and company has based its provisions the same. Financial effects of changes in those plans during the period in terms of para 119 of AS-15 are as disclosed and recognised in Profit and Loss Accounts. Insurance Company has provided detail working of actuarial valuation as required for disclosure in terms of para 119 & para 120 of AS-15 Employee's Benefits is as follows:

a. Assumptions and data considered for valuation:

Discount Rate 8.00%

Salary Escalation Rate for first 5 year 10.00%

Salary Escalation Rate thereafter 5.00%

Attrition Rate 15.00%

Mortality Rate Indian Assured Lives Mortality (2006-08) Ultimate

Actuarial Valuation Method Projected Unit Credit Method

Retirement Age 60 years

Benefits As per Payment of Gratuity Act

b. Expense recognized in the statement of Profit and Loss account:

Particulars Amount (Rs.)

Current Service Cost 18,68,146/-

Insurance for Life Cover 1,16,747/-

Increase in Fair value of Fund Balance (Assets) 10,66,570/-

Expense/(income) to be recognized in the statement 9,18,323/- of Profit and Loss account

Current Service Cost (As % of Annual Wages Bill) 3.85%

c. Movements in the Liability recognized in Balance Sheet ::

Particulars Amount (Rs.)

Past Service Liability 1,02,27,633

Current Service Cost 18,68,146/-

Insurance for Life Cover 1,16,747/-

Contribution paid to Fund 9,18,323/-

Liability as on 31.03.2015 1,12,94,203/-

Policy Account Value / Fund Balance 1,12,94,203/- (Assets) as on 31.03.2015

Net Asset/(Liability) to be recognized Nil in the balance sheet

iii. Short term employee benefits

Short term employee benefits including compensated absences as at the Balance Sheet date are recognized as an expense as and when it paid.

m. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when an enterprise has a present obligation as a result of past event; it is probable 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 present 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.

Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, VAT, Income Tax and Sales Tax are disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the final outcome of the matter. Contingent Assets are neither recognized nor disclosed in the financial statements..

n. Earning per share :

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average no. of equity shares outstanding during the period. The weighted average no. of equity shares outstanding during the period is adjusted for events of shares split.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity share holders and weighted average no. of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

o. Overdue Charges in Respect of Loans

Overdue charges if any levied by Financial Institutions / Banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2014

A. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.

b. Tangible Fixed Assets

Tangible assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Borrowing costs relating to acquisition of fixed assets which take a 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.

c. Depreciation on Tangible Fixed Assets

Depreciation is provided on Straight Line Method at the rates specifed in Schedule -XIV to the Companies Act, 1956. Depreciation on addition / deletion of fixed assets during the year is provided on pro-rata basis with reference to the date of addition / deletion.

d. Intangible Fixed assets and amortization

Intangible assets having fnite useful lives are measured cost and amortised over their expected useful lives.

e. Impairment

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss is recognized where the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated value in use, the estimated future cash fows are discounted to their present value using a pre tax discount rate that refects current market assessment of the time value of money and risks specifc to the asset.

f. Leases

i) Finance Lease

Assets taken on lease are capitalized at their value/ NPV/ contracted price.

Depreciation on the same is charged at the rate applicable to similar type of fixed assets as per Accounting Policy on '' Depreciation''. If the lease assets are returnable to the lessor on expiry of lease period, the same is depreciated over its useful life or lease period, whichever is shorter.

Lease payments made are apportioned between fancé charges and reduction of outstanding liability in relation to assets taken on lease.

ii) Operating Lease

Lease payments made for assets taken on operating lease are recognized as expense over the lease period.

g. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

h. Investments

Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary. Current investments are carried at cost or quoted / fair value whichever is lower. Unquoted current investments are carried at cost.

Any reduction in the carrying amount and any reversals of such reductions are charged or credited to the statement of Profit and Loss.

i. Accounting for Joint Ventures Contracts

i. Contracts executed in Joint Venture under work sharing arrangement (consortium) are accounted for in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed.

ii. In respect of contracts executed in Integrated Joint Ventures under Profit sharing arrangement (assessed as AOP under Income Tax Laws), the services rendered to the Joint Ventures are accounted for as income on accrual basis. The Profit / Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint Venture is refected as investments, loans and advances or current liabilities.

j. Inventories

i. Raw Materials, Stores & Spares and Finished Goods

Inventories of raw materials, construction materials and Finished Goods are measured at lower of cost and net realizable value after providing for obsolescence if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including overheads incurred in bringing them to their respective present location and conditions. Cost of Raw Materials and Finished Goods is determined on weighted average basis.

ii. Work in Progress

The Work In Progress is valued on the basis of percentage of completion contract method as per AS-7 on ''Construction contracts'' issued by ICAI. Work in Progress includes material cost, appropriate share of labour and other overheads to the extent of completion of work.

k. Revenue Recognition

1. Construction Contracts:

i. Revenue recognition and Valuation of Contract WIP are as per the Accounting Standard -7 (AS 7).

ii. Revenue is recognized on the basis of agreed price between the client and the Company for various items of work done.

iii. Stage / Percentage of completion is determined with reference to the certificates given by the clients / management as well as on the billing schedule agreed with them, for the value of work done during the year.

iv. Valuation of Contract WIP:

AtRealizable Sale Value on Percentage Completion method in respect of contracts where the outcome of the contract can be estimated reliably. Where the outcome cannot be estimated reliably, no Profit is being recognized. Expected losses on contracts are assessed periodically and recognized immediately.

v. Cost incurred is recognized in the accounts for the items of work done in the year of recognition of revenues.

vi. Expenditure incurred on items used at construction sites, viz. construction aids, scaffolding materials, temporary structures, are charged off to the revenue at the end of each financial year on the basis of both physical count and their ascertainment of balance useful life..

2. Profit or Loss on Contracts executed by Joint ventures under Profit sharing arrangements (being jointly controlled entities, in terms of Accounting Standards 27, "Financial reporting of Interests in joint ventures" ), is accounted as and when the same is determined by the joint Venture. Revenue from services rendered to such joint ventures is accounted on accrual basis. In determining this policy due weightage is given to the principle of Substance over Form.

3. Dividends on Investments are accounted on the basis of declaration of dividends on the underlying investments.

4. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

l. Taxes on Income

The Tax expenses comprise of current tax and deferred tax charged or credited to the Profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates and tax laws that have been enacted by the Balance Sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. At each Balance Sheet date, recognized and unrecognized deferred tax assets are reviewed.

m. Employee benefits

i) defined contribution plans

Contributions paid/payable to defined contribution plans comprising of provident fund is recognized as expenses during the period in which the employees perform the services that the payments cover.

The Company makes monthly contributions and has no further obligations under the plan beyond its contributions.

ii) defined benefit plan

Gratuity for employees is covered under a scheme of SBI Life Insurance and contributions in respect of such scheme are recognized in the Profit and Loss Account. The liability as at the Balance Sheet date is provided for based on the actuarial valuation, at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses comprise experience adjustments and the effect of changes in the actuarial assumptions and are recognized immediately in the Profit and Loss account as income or expense.

iii) Short term employee benefits

Short term employee benefits including compensated absences as at the Balance Sheet date are recognized as an expense as per the Company''s schemes based on the expected obligation on an undiscounted basis.

k. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when an enterprise has a present obligation as a result of past event; it is probable that an outfow 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 present 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 refect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, VAT, Income Tax and Sales Tax are disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the fnal outcome of the matter. Contingent Assets are neither recognized nor disclosed in the financial statements..

l. Earning per share :

Basic earning per share is calculated by dividing the net Profit or loss for the period attributable to equity share holders by the weighted average no. of equity shares outstanding during the period. The weighted average no. of equity shares outstanding during the period is adjusted for events of shares split.

For the purpose of calculating diluted earning per share, the net Profit or loss for the period attributable to the equity share holders and weighted average no. of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

m. Overdue Charges in Respect of Loans

Overdue charges if any levied by financial institutions / banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of fnal settlement of loan amount.


Mar 31, 2013

A. Use of Estimates

In preparing the fnancial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the fnancial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognized in the period the same is determined.

b. Tangible Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Self constructed assets are capitalized at cost including an appropriate share of overhead.

c. Depreciation on Tangible Fixed Assets

Depreciation is provided on Straight Line Method at the rates specifed in Schedule -XIV to the Companies Act, 1956.

Depreciation on addition / deletion of fxed assets during the year is provided on pro-rata basis with reference to the date of addition / deletion.

d. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the period in which they are incurred.

e. Investments

Investments in integrated Joint ventures are carried at cost net of adjustments for the company''s share in profts or losses as recognized.

f. Accounting for Joint Ventures Contracts

i. Contracts executed in Joint Venture under work sharing arrangement (consortium) are accounted for in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed.

ii. In respect of contracts executed in Integrated Joint Ventures under proft sharing arrangement (assessed as AOP under Income Tax Laws), the services rendered to the Joint Ventures are accounted for as income on accrual basis. The proft / Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint Venture is refected as investments, loans and advances or current liabilities.

g. Inventories

i. Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realizable value.

ii. Work in Progress

The work in progress is valued as percentage of completion contract method as per Accounting Standard 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India.

h. Revenue Recognition

The company follows the percentage of completion method as per Accounting Standard - 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India to recognize revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certifed by clients and does not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

i. Taxes on Income

The Tax expenses comprise of current tax and deferred tax charged or credited to the proft and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current fnancial year. The deferred tax charge or credit is recognized using the tax rates and tax laws that have been enacted by the Balance Sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. At each Balance Sheet date, recognized and unrecognized deferred tax assets are reviewed.

j. Employee Benefts

i) Defned contribution plans

Contributions paid/payable to defned contribution plans comprising of provident fund is recognized as expenses during the period in which the employees perform the services that the payments cover.

The Company makes monthly contributions and has no further obligations under the plan beyond its contributions.

ii) Defned beneft plan

Gratuity for employees is covered under a scheme of SBI Life Insurance and contributions in respect of such scheme are recognized in the Proft and Loss Account. The liability as at the Balance Sheet date is provided for based on the actuarial valuation, at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses comprise experience adjustments and the effect of changes in the actuarial assumptions and are recognized immediately in the Proft and Loss account as income or expense.

iii) Short term employee benefts

Short term employee benefts including compensated absences as at the Balance Sheet date are recognized as an expense as per the Company''s schemes based on the expected obligation on an undiscounted basis.

k. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when an enterprise has a present obligation as a result of past event; it is probable that an outfow 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 present 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 refect the current best estimates.

Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, VAT, Income Tax and Sales Tax are disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the fnal outcome of the matter. Contingent Assets are neither recognized nor disclosed in the fnancial statements..

l. Earning per share :

Basic earning per share is calculated by dividing the net proft or loss for the period attributable to equity share holders by the weighted average no. of equity shares outstanding during the period. The weighted average no. of equity shares outstanding during the period is adjusted for events of shares split.

For the purpose of calculating diluted earning per share, the net proft or loss for the period attributable to the equity share holders and weighted average no. of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

m. Overdue Charges in Respect of Loans

Overdue charges if any levied by fnancial institutions/ banks/NBFC are not considered during the currency of the loan. The same is considered as a fnancial expense in the year of fnal settlement of loan amount.


Mar 31, 2012

A. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

b. Tangible Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Self constructed assets are capitalised at cost including an appropriate share of overhead.

c. Depreciation on Tangible Fixed Assets

Depreciation is provided on Straight Line Method at the rates specified in Schedule -XIV to the Companies Act, 1956.

Depreciation on addition / deletion of fixed assets during the year is provided on pro-rata basis with reference to the date of addition / deletion.

d. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

e. Investments

Investments in integrated Joint ventures are carried at cost net of adjustments for the Company's share in profits or losses as recognised.

f. Accounting for Joint Ventures Contracts

i. Contracts executed in Joint Venture under work sharing arrangement (consortium) are accounted for in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed.

ii. In respect of contracts executed in Integrated Joint Ventures under profit sharing arrangement (assessed as AOP under Income Tax Laws), the services rendered to the Joint Ventures are accounted for as income on accrual basis. The profit / Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint Venture is reflected as investments, loans and advances or current liabilities.

g. Inventories

i. Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realisable value.

ii. Work in Progress

The work in progress is valued as percentage of completion contract method as per Accounting Standard 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India.

h. Revenue Recognition

The Company follows the percentage of completion method as per Accounting Standard - 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India to recognise revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certified by clients and does not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

i. Taxes on Income

The Tax expenses comprise of current tax and deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognised using the tax rates and tax laws that have been enacted by the Balance Sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. At each Balance Sheet date, recognised and unrecognised deferred tax assets are reviewed.

j. Employee Benefits

i) Defined contribution plans

Contributions paid/payable to defined contribution plans comprising of provident fund is recognised as expenses during the period in which the employees perform the services that the payments cover.

The Company makes monthly contributions and has no further obligations under the plan beyond its contributions.

ii) Defined benefit plan

Gratuity for employees is covered under a scheme of SBI Life Insurance and contributions in respect of such scheme are recognised in the Profit and Loss Account. The liability as at the Balance Sheet date is provided for based on the actuarial valuation, at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses comprise experience adjustments and the effect of changes in the actuarial assumptions and are recognised immediately in the Profit and Loss account as income or expense.

iii) Short term employee benefits

Short term employee benefits including compensated absences as at the Balance Sheet date are recognised as an expense as per the Company's schemes based on the expected obligation on an undiscounted basis.

k. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when an enterprise has a present obligation as a result of past event; it is probable 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 present 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.

Contingent Liabilities are not recognised but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, VAT Income Tax and Sales Tax are disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the final outcome of the matter. Contingent Assets are neither recognised nor disclosed in the financial statements..

l. Earning per share :

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average no. of equity shares outstanding during the period. The weighted average no. of equity shares outstanding during the period is adjusted for events of shares split.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity share holders and weighted average no. of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

m. Overdue Charges in Respect of Loans

Overdue charges if any levied by financial institutions / banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2011

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles[GAAP], accounting standards issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

In preparing the financial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the financial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

3. Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Self constructed assets are capitalised at cost including an appropriate share of overhead.

4. Depreciation

Depreciation is provided on Straight Line Method at the rates specified in Schedule -XIV to the Companies Act, 1956.

Depreciation on addition / deletion of fixed assets during the year is provided on pro-rata basis with reference to the date of addition / deletion.

5. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

6. Investments

Investments in integrated Joint ventures are carried at cost net of adjustments for the company's share in profits or losses as recognised.

7. Accounting for Joint Ventures Contracts

i. Contracts executed in Joint Venture under work sharing arrangement (consortium) are accounted for in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed.

ii. In respect of contracts executed in Integrated Joint Ventures under profit sharing arrangement ( assessed as AOP under Income Tax Laws), the services rendered to the Joint Ventures are accounted for as income on accrual basis. The profit / Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint Venture is reflected as investments, loans and advances or current liabilities.

8. Inventories

i) Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realisable value.

ii) Work in Progress

The work in progress is valued as percentage of completion contract method as per Accounting Standard 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India.

9. Revenue Recognition

The company follows the percentage of completion method as per Accounting Standard - 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India to recognise revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certified by clients and does not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

10. Taxes on Income

The Tax expenses comprise of current tax and deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognised using the tax rates and tax laws that have been enacted by the Balance Sheet date. Where there are unabsorbed depreciation or carry forward losses, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. At each Balance Sheet date, recognised and unrecognised deferred tax assets are reviewed.

11. Employee Benefits

i) Defined contribution plans

Contributions paid/payable to defined contribution plans comprising of provident fund is recognised as expenses during the period in which the employees perform the services that the payments cover.

The Company makes monthly contributions and has no further obligations under the plan beyond its contributions.

ii) Defined benefit plan

Gratuity for employees is covered under a scheme of SBI Life Insurance and contributions in respect of such scheme are recognised in the Profit and Loss Account. The liability as at the Balance Sheet date is provided for based on the actuarial valuation, at the Balance Sheet date, carried out by an independent actuary. Actuarial gains and losses comprise experience adjustments and the effect of changes in the actuarial assumptions and are recognised immediately in the Profit and Loss account as income or expense.

iii) Short term employee benefits

Short term employee benefits including compensated absences as at the Balance Sheet date are recognised as an expense as per the Company's schemes based on the expected obligation on an undiscounted basis.

12. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when an enterprise has a present obligation as a result of past event; it is probable 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 present 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.

Contingent Liabilities are not recognised but are disclosed in the notes to accounts. Disputed demands in respect of Central Excise, VAT, Income Tax and Sales Ta x are disclosed as Contingent Liabilities. Payment in respect of such demands, if any, is shown as advance, till the final outcome of the matter. Contingent Assets are neither recognised nor disclosed in the financial statements..

13. Earning per share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity share holders by the weighted average no. of equity shares outstanding during the period. The weighted average no. of equity shares outstanding during the period is adjusted for events of shares split.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to the equity share holders and weighted average no. of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

14. Overdue Charges in Respect of Loans

Overdue charges if any levied by financial institutions / banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2010

1. Basis of Accounting

The fnancial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles [GAAP], accounting standards issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

In preparing the fnancial statements in conformity with accounting principles generally accepted in India, Management is required to make estimates and assumption that affect the reported amounts of assets and liabilities as at the date of the fnancial statements and the amounts of revenue and expenses during the reported period. Actual results could differ from those estimates. Any revision to such estimates is recognised in the period the same is determined.

3. Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Self-constructed assets are capitalised at cost including an appropriate share of overhead.

4. Depreciation

Depreciation is provided on Straight Line Method at the rates specifed in Schedule-XIV to the Companies Act, 1956.

Depreciation on addition/deletion of fxed assets during the year is provided on pro-rata basis with reference to the date of addition/deletion.

5. Borrowing Costs

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time the asset is ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

6. Investments

Investments in integrated Joint ventures are carried at cost net of adjustments for the company’s share in profts or losses as recognised.

7. Inventories

i) Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realisable value.

ii) Work-in-Progress

The work-in-progress is valued as percentage of completion contract method as per Accounting Standard 7 on “Construction Contracts” issued by the Institute of Chartered Accountants of India.

8. Revenue Recognition

The company follows the percentage of completion method as per Accounting Standard-7 on “Construction Contracts” issued by the Institute of Chartered Accountants of India to recognise revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certifed by clients and does not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

9. Taxes on Income

Tax on income for current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax is recognised on timing differences between the accounting income and the taxable income for the year, and quantifed using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

10. Employee Benefts

i) Short-term Employee Benefts

All employee benefts falling due wholly within twelve months of rendering the services are classifed as short-term employee benefts. The benefts like salaries, wages, short-term compensated absence etc. and the expected cost of bonus is recognised in which the employee renders the related services.

ii) Post-employment Benefts

Defned contribution plan: The Company has a defned contribution plan for State Governed Provident Fund scheme and Employees State insurance scheme. The contribution paid/payable under the schemes is recognized during the period in which the employee renders related service.

iii) The Company is in the process of fnalising a agency for managing the gratuity fund and ascertaining the liability on the basis of actuarial valuation. Pending fnalisation of the same liability for current year has been provided on adhoc basis.

11. Contingent Liabilities and Contingent Assets

No provision is made for liabilities which are contingent in nature, unless it is probable that an asset has been impaired or a liability incurred as on the Balance Sheet date and a reasonable estimate of the resulting loss can be made.

Details of contingent liabilities are given below:

(Rs. in Lacs) Sl. Name of the statute to which the liability relates Amount No. 1. Orissa Sales Tax Act 106.27

2. Orissa Entry Tax Act 34.44

3. Central Sales Tax Act 500.16

4. Rajasthan VAT Act 219.99

5. Andhra Pradesh Commercial Taxes (ET) 2.08

6. Orissa Electricity Act. 47.22

7. Corporate Guarantees to sister concerns of the Company: (a) ARSS Biofuel (P) Ltd. 260.00 (b) Anil Contractors (P) Ltd 600.00

8. Performance Bank Guarantee 12,689.36

Total 14,459.52

Contingent Assets are neither recognised nor disclosed in the fnancial statements.

12. Overdue Charges in Respect of Loans

Overdue charges if any levied by fnancial institutions/banks/NBFC are not considered during the currency of the loan. The same is considered as a fnancial expense in the year of fnal settlement of loan amount.


Mar 31, 2009

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principlesfGAAP], accounting standards issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation less accumulated depreciation.

Own manufacturing assets are capitalized at cost including an appropriate share of overhead.

3. Depreciation

Depreciation is provided on Straight Line Method at the rates specified in Schedule -XIV to the Companies Act, 1956.

Depreciation on addition / deletion during the year is provided on pro-rata basis with reference to the date of addition / deletion.

4. Borrowing Costs

Interest and other borrowing costs on specific borrowings attributable to qualifying assets are capitalized. Other interest and borrowing cost are charged to revenue.

5. Investments

Investments in integrated Joint ventures are carried at cost net of adjustments for the companys share in profits or losses as recognized.

6. Inventories

i) Raw Materials, Stores & Spares and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realizable value.

ii) Work in Progress

The work in process is valued as percentage of completion contract method as per Accounting Standard 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India.

7. Revenue Recognition

The company follows the percentage of completion method as per Accounting Standard - 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India to recognize revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certified by clients and does not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

8. Taxes on Income

Provision for current taxation is made on the taxable profits for the year in accordance with the Income Tax Laws applicable to the assessment year.

Deferred Tax is recognized subject to consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

9. Retirement Benefits

i) Short Term Employment Benefits

All employee benefits falling due wholly within twelve months of rendering the services are classified as short term employee benefits. The benefits like salaries, wages, short term compensated absence etc. and the expected cost of bonus is recognized in which the employee renders the related services.

ii) Post employment Benefits

Defined contribution plan: Company has a defined contribution plan for Provident Fund and Employees State insurance and the Companys contribution thereto are charged to the Profit & Loss Account.

iii) Pending actuarial Valuation, the Company has estimated the gratuity liability on adhoc basis.

10. Contingent Liabilities and Contingent Assets

No provision is made for liabilities which are contingent in nature, unless it is probable that an asset has been impaired or a liability incurred as on the Balance Sheet date and a reasonable estimate of the resulting loss can be made. Details of contingent liabilities are given below:

Period to which Name of the Amount the amount relates statute (Rs. in lakhs)

2000-01 Orissa Sales Tax Act 2.61

2004-05 Orissa Sales Tax Act 49.50

2000-01 Orissa Sales Tax Act 15.52

2001-02 Orissa Sales Tax Act 8.02

2002-03 Orissa Sales Tax Act 8.33

2008-09 Orissa Electricity Act 47.22

2008-09 Corporate Guarantee 600.00

2008-09 Corporate Guarantee 260.00

2008-09 Bank Guarantee 23024.44

Total 24015.64

Contingent Assets are not recognized in the financial statements.

11. Overdue Charges in Respect of Loans

Overdue charges if any levied by financial institutions / banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2008

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation.

3. Depreciation

Depreciation is provided on Straight Line Method at the rates specified in Schedule -XIV to the Companies Act, 1956.

Depreciation on addition / deletion during the year is provided on pro-rata basis with reference to the date of addition/deletion.

4. Borrowing Costs

Interest and other borrowing costs on specific borrowings attributable to qualifying assets are capitalized. Other interest and borrowing cost are charged to revenue.

5. Inventories

i) Raw Materials and Finished Goods

Raw Materials, construction materials and Finished Goods are valued at the lower of cost and net realizable value.

ii) Work in Progress

The work in process is valued as percentage of completion contract method as per Accounting Standard 7 on "Construction Contracts" issued by the Institute of Chartered Accountants of India.

6. Revenue Recognition

The company follows the percentage of completion method as per Accounting Standard - 7 on Construction Contracts issued by the Institute of Chartered Accountants of India to recognize revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certified by clients and do not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

7. Taxes on Income

Provision for current taxation is made on the taxable profits for the year in accordance with the Income Tax Laws applicable to the assessment year.

Deferred Tax is recognized subject to consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periosds.

8. Retirement Benefits

i) The Company has a defined contribution plan for Provident Fund and Employees State insurance and the Companys contribution thereto are charged to the Profit & Loss Account.

ii) Pending actuarial Valuation, the Company has estimated the gratuity liability on adhoc basis.

9. Contingent Liabilities and Contingent Assets

No provision is made for liabilities which are contingent in nature, unless it is probable that an asset has been impaired or a liability incurred as on the Balance Sheet date and a reasonable estimate of the resulting loss can be made.

Contingent Assets are not recognized in the financial statements.

10. Overdue Charges In Respect of Loans

Overdue charges if any levied by financial institutions / banks/NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2007

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on accrual basis of accounting in accordance with generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India, as applicable and the relevant provisions of the Companies Act, 1956.

2. Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of taxes, duties, freight and other incidental expenses related to acquisition and installation.

3. Depreciation

Depreciation is provided on Straight Line Method at the rates specified in Schedule-XIV to the Companies Act, 1956.

Depreciation on addition / deletion during the year is provided on prorata basis with reference to the month of addition / deletion.

4. Borrowing Costs

Interest and other borrowing costs of specific borrowings attributable to qualifying assets are capitalized. Other interest and borrowing cost are charged to revenue.

5. Inventories

i) Raw Materials

Raw materials and construction materials are valued at the lower of cost and net realizable value.

ii) Work in Progress

The work in process is valued as percentage of completion contract method as per Accounting Standard 7 on “Construction Contracts” issued by the Institute of Chartered Accountants of India.

iii) Finished Goods

Finished goods are valued at lower of cost and net realizable value.

6. Revenue Recognition

The company follows the percentage of completion method as per Accounting Standard - 7 on Construction Contracts issued by the Institute of Chartered Accountants of India to recognize revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients/bill certified by clients and do not include material supplied by the clients free of cost. Other revenue and expenses are accounted for on accrual basis.

7. Taxes on Income

Provision for current taxation is made on the taxable profits for the year in accordance with the Income Tax Laws applicable to the assessment year.

Deferred Tax is recognized subject to consideration of prudence on timing difference being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

8. Employee Benefits

Employee Provident Fund is accounted for as and when they become due.

9. Contingent Liabilities and Contingent Assets.

No. provision is made for liabilities which are contingent in nature, unless it is probable that an asset has been impaired or a liability incurred as on the Balance Sheet date and a reasonable estimate of the resulting loss can be made. Contingent Assets are not recognized in the financial statements.

10. Overdue Charges In Respect of Loans

Overdue charges if any levied by financial institutions / banks / NBFC are not considered during the currency of the loan. The same is considered as a financial expense in the year of final settlement of loan amount.


Mar 31, 2006

The financial statements have been prepared in accordance with applicable accounting standards issued by the Institute of Chartered Accountants of India and the relevant requirements of the companies act 1956. Significant accounting policies applied in preparing and presenting these financial statements are set out below.

1. Basis of Account

The financial statements are prepared under historical cost convention on accrual basis of accounting and on a going concern basis.

2. Fixed Assets

Fixed Assets are stated at their original cost of acquisition, including duties, taxes and incidental expenses attributable to bringing them to their present location and condition.

3. Depreciation

The company has changed method of depreciation from Written Down Value method to Straight Line Method during the year 2005-06. Depreciation has been provided by applying the rates specified in schedule-XIV to the Companies Act 156 calculated on Straight Line Method. Depreciation on additions during the year has been provided on pro-rata basis.

4. Inventories

i. Raw material

Raw meterials, construction materials, and stores and spares are valued at the lower of cost and net realizable value.

ii. Work-in-Progress

During the year the company has valued its work-in-process as per percentage of completion contract method in line with Accounting Standard-7 “Construction Contract” issued by the Institute of Chartered Accountants of India.

iii. Finished Goods

Finished goods are valued at lower of cost and net realizable value.

5. Revenue Recognition

The Company follos the percentage of completion method as per Accounting Standard-7 to recognize revenue in respect of contracts executed. Contract revenue is accounted for on the basis of bills submitted to clients / bill certified by clients and do not include material supplied by the clients free of cost. Other revenue and expenses are accounted on accrual basis.

6. Income Tax

Income taxes are computed using the tax effect accounting method of where taxes are accrued in the same period, has the related revenue and expenses to which they relate. The difference that exist between profit offered for income tax and the profit before tax as per financial statement are identified and deferred tax assets or deferred tax liabilities are xxxxxxx for timing difference, namely, differences that originate in one accounting period and are capable of reversal in future. Deferred tax assets and liabilities are measured using tax rates and tax laws enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only if there is reasonable certainty that they will be realized. If the Company has unabsorbed depreciation or carried forward losses under taxation laws, a much stricter test, viz, virtual certainty of realization is to be applied for recognition of any deferred tax assets. Deferred tax assets are reviewed for the continuing appropriateness for their recognition as assets at each balance sheet date and written down or written up to reflect the amount i.e. reasonably/virtually certain (as the case may be) of realization.


Mar 31, 2005

I. Basis of Accounting

The accounts has been prepared under historical cost convention and materially complies with mandatory accounting standards issued by the Institute of Chartered Accountants of India.

II. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition, inclusive of direct and allocable expenses incurred during construction, and depreciation has been considered at WDV Method as under per the rates prescribed Schedule - XIV to The Companies Act 1956.

III. Inventories

During the year the Company has valued its inventories as per percentage of completion contract method in line with Accounting standard-7 "Construction Contract" issued by The Institute of Chartered Accountants of India.

IV. Recognition of Revenue and Expenditure

All items of revenue incomes and expenditures are accounted for on accrual basis.

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