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Accounting Policies of Jyoti Structures Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting, except for certain fixed assets, which are revalued in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 2013. They are prepared in accordance with the Accounting Standards specified under section 133 of the Companies Act, 2013 (''the Act'') read with Rule 7 of Companies (Accounts) Rules, 2014, and other relevant provisions to the extent applicable.

2. Use of Estimates:

The preparation of financial statements requires estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognised in the period in which the results are known / materialised.

3. Revenue Recognition:

(a) Sale of goods is recognised on completion of supplies as per the terms of the contract and on transfer of risk and reward.

(b) Sales include excise duty and adjustment for price variation and are net of claims accepted.

(c) In case of construction / erection contracts, revenue is recognised based on the stage of completion determined as per the terms of the contract. Sales / income are booked on the basis of running account bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

(d) Interest income is recognised on time proportion basis. The insurance claims are accounted for on accrual basis based on fair estimation of sanctions by the insurance companies.

4. Fixed Assets:

Fixed assets are stated at cost of acquisition or construction, net of recoverable taxes including any cost attributable for bringing the asset to its working condition for its intended use and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

5. Depreciation / Amortisation:

(a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013, except as stated in (b) below.

(b) On the fixed assets of integral foreign branches, depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries, except where the rates of depreciation are less than as prescribed in schedule II to the Act, the depreciation is provided as per the rates prescribed in Schedule II of the Act.

(c) In case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is recouped out of the revaluation reserve.

(d) Leasehold Land is amortised over the period of lease.

(e) Goodwill arising on amalgamation is amortised over a period of 5 years.

6. Investments:

Investments that are readily realisable and intended to be held for not more than 12 months are classified as current investments. All other investments are classified as long-term investment. Current investments are carried at the lower of cost and fair value. Long-term investments are carried at cost less diminution in value, if any. Provisions are recognized for any decline, other than temporary, in the carrying value of long term investments as determined by the management.

7. Inventories:

(a) Raw materials, Construction materials, Components and Stores and Spares are valued at lower of cost or net realisable value.

(b) Cost of inventories is determined by using the weighted average method.

(c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

(d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

(e) Finished goods are valued at cost or net realisable value, whichever is lower and inclusive of excise duty. ( f ) Tools and tackles are amortised over their estimated useful life.

(g) Scrap is valued at net realisable value.

8. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expenses in the period in which they are incurred.

9. Impairment of Assets:

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any such indication exists, then recoverable amount of the asset is estimated. An impairment loss, if any, is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

The impairment loss recognised in a prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

10. Debenture / Preference Share Issue Expenses:

Expenses incurred for issue of secured debentures and preference shares made by the Company are written off as revenue expenditure during the year of issue.

11. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are accounted for at the exchange rates prevailing on the dates of the transactions or that approximates the actual rate at the dates of transactions.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end are restated at the year end rates.

(c) Non-monetary items denominated in a foreign currency are stated at cost.

(d) Any income or expense on account of exchange difference, either on settlement or on translation, is recognized in Statement of Profit and Loss.

(e) Financial Statements of Overseas Integral Operations are translated as under:

i. Assets and liabilities are translated at the rate prevailing at the end of the year. Income and expenditure are translated on the yearly average exchange rate prevailing during the year.

ii. Fixed assets are translated at the average rate prevailing on purchase / acquisition of assets. Depreciation is accounted at the same exchange rate at which the assets are translated.

iii. The resultant exchange gains and losses are recognised in the Statement of Profit and Loss.

(f) Forward Exchange Contracts:

I. In case of transactions covered by forward exchange contracts which are not intended for trading or speculation purposes, premium or discount is amortised as expense or income over the life of the contract.

II. Exchange difference on such contracts is recognised in the Statement of Profit and Loss in the year in which the exchange rates change.

III. Profit or loss arising on cancellation or renewal of such forward exchange contracts is recognised as income or expense for the year.

12. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of the inventory. The amount of Central Value Added Ta x (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

13. Leased Assets:

Operating Lease:

i) Lease payments are recognised as expense in the Statement of Profit and Loss on straight line basis over the term of the lease.

ii) Assets given on operating lease are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on straight line basis over the term of the lease.

14. Employees Retirement and Other Benefits:

a) Short Term Employee Benefits:

Short term employee benefits are recognised as expenses at the undiscounted amount in the period during which the services have been rendered.

b) Long Term Employee Benefits:

1) Defned Contribution Plan:

The Company''s contribution to Provident Fund and Superannuation Fund are charged to Statement of Profit and Loss on accrual basis.

2) Defned Benefit Plan:

i) Gratuity: The Company provides for the applicable gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii) Leave Encashment: The Company provides for the liability at the year end on account of unveiled earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii) The cost of employee stock option attributable to current financial year is accounted for and charged to Statement of Profit and Loss.

15. Taxes on Income:

a) Current Tax:

Provision for current Income Ta x is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Ta x

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax asset is not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

16. Earnings Per Share:

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net Profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

17. Provisions and Contingencies:

a) A provision is recognised when there is a present obligation as a result of a past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

c) Contingent assets are neither recognised nor disclosed in the financial statement.

18. Employees Stock Option Scheme:

Stock options granted to the employees of the company, under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. Accordingly, excess of market value of the stock option, as on date of grant over the exercise price of the option is recognised as deferred employee compensation and is charged to Statement of Profit and Loss as employee costs, on straight line method over the vesting period of the options.


Mar 31, 2014

1. Basis of Preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting, except for certain fixed assets, which are revalued in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956. They are prepared in accordance with the accounting standards notified under sub section (3C) of section 211 of the Companies Act, 1956 read with the General Circular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and other relevant provisions to the extent applicable.

2. Use of Estimates:

The presentation of financial statements requires estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known / materialised.

3. Revenue Recognition:

(a) Sale of goods is recognised on completion of supplies as per the terms of the contract and on transfer of risk and reward.

(b) Sales include excise duty and adjustment for price variation and are net of claims accepted.

(c) In case of construction / erection contracts, revenue is recognised based on the stage of completion determined as per the terms of the contract. Sales/income are booked on the basis of running account bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

(d) Interest income is recognised on time proportion basis. The insurance claims are accounted for on accrual basis based on fair estimation of sanctions by the insurance companies.

4. Fixed Assets:

Fixed assets are stated at cost of acquisition or construction, net of recoverable taxes including any cost attributable for bringing the asset to its working condition for its intended use and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

5. Depreciation / Amortisation:

(a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, except on computer software and on fixed assets of Uganda, Bhutan, Bangladesh, Kenya and South Africa branches.

(b) Computer software is depreciated over a period of 3 to 6 years depending upon the expected useful life of the software.

(c) On the fixed assets of Uganda, Bangladesh, Bhutan, Kenya and South Africa branches, depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries.

(d) Assets individually costing Rs. 0.05 Lacs or less are depreciated fully in the year of purchase.

(e) In case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is recouped out of the revaluation reserve.

(f) Leasehold Land is amortised over the period of lease.

(g) Goodwill arising on amalgamation is amortised over a period of 5 years.

6. Investments:

Long term investments are stated at cost. Provision for diminution in value of such investments is made only if such a decline is other than temporary.

7. Inventories:

(a) Raw materials, Construction materials, Components and Stores and Spares are valued at lower of cost or net realisable value.

(b) Cost of inventories is determined by using the weighted average method.

(c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

(d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

(e) Finished goods are valued at cost or net realisable value, whichever is lower and inclusive of excise duty.

(f) Tools and tackles are amortised over their estimated useful life

(g) Scrap is valued at net realisable value.

8. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expenses in the period in which they are incurred.

9. Impairment of Assets:

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any such indication exists, then recoverable amount of the asset is estimated. An impairment loss, if any, is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

The impairment loss recognised in a prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

10. Debenture / Preference Share Issue Expenses:

Expenses incurred for issue of secured debentures and preference shares made by the Company are written off as revenue expenditure during the year of issue.

11. Foreign Currency Transactions:

(a) Transactions denominated in foreign currencies are accounted for at the exchange rates prevailing on the dates of the transactions or that approximates the actual rate at the dates of transactions.

(b) Monetary items denominated in foreign currencies remaining unsettled at the year end are restated at the year end rates.

(c) Non-monetary items denominated in a foreign currency are stated at costs.

(d) Any income or expense on account of exchange difference, either on settlement or on translation, is recognized in the Statement of Profit and Loss.

(e) Financial Statements of Overseas Integral Operations are translated as under:

i. Assets and liabilities are translated at the rate prevailing at the end of the year. Income and expenditure are translated on the yearly average exchange rate prevailing during the year.

ii. Fixed assets are translated at the average rate prevailing on purchase / acquisition of assets. Depreciation is accounted at the same exchange rate at which the assets are translated.

iii. The resultant exchange gains and losses are recognised in the Statement of Profit and Loss.

(f) Forward Exchange Contracts:

I. In case of transactions covered by forward exchange contracts which are not intended for trading or speculation purposes, premium or discount is amortised as expense or income over the life of the contract.

II. Exchange difference on such contracts is recognised in the Statement of Profit and Loss in the year in which the exchange rates change.

III. Profit or loss arising on cancellation or renewal of such forward exchange contracts is recognised as income or expense for the year.

12. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of the inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

13. Leased Assets:

Operating Lease:

i) Lease payments are recognised as expense in the Statement of Profit and Loss on straight line basis over the term of the lease.

ii) Assets given on operating lease are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on straight line basis over the term of the lease.

14. Employees Retirement and Other Benefits:

a) Short Term Employee Benefits:

Short term employee benefits are recognised as expenses at the undiscounted amount in the period during which the services have been rendered.

b) Long Term Employee Benefits:

1) Defined Contribution Plan:

The Company''s contribution to Provident Fund and Superannuation Fund are charged to Statement of Profit and Loss on accrual basis.

2) Defined Benefit Plan:

i) Gratuity: The Company provides for the applicable gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii) Leave Encashment: The Company provides for the liability at the year end on account of unavailed earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii) The cost of employee stock option attributable to current financial year is accounted for and charged to Statement of Profit and Loss.

15. Taxes on Income:

a) Current Tax:

Provision for current Income Tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Tax

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax asset is not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

16. Earnings Per Share:

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

17. Provisions and Contingencies:

a) A provision is recognised when there is a present obligation as a result of a past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

c) Contingent assets are neither recognised nor disclosed in the financial statement.

18. Employees Stock Option Scheme:

Stock options granted to the employees of the company, under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. Accordingly, excess of market value of the stock option, as on date of grant over the exercise price of the option is recognised as deferred employee compensation and is charged to Statement of Profit and Loss asemployee costs, on straight line method over the vesting period of the options.


Mar 31, 2013

1. Basis of Preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting, except for certain fixed assets which are revalued in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956. They are prepared in accordance with the accounting standards notified under sub section (3C) of Section 211 of the Companies Act, 1956 and other relevant provisions to the extent applicable.

2. Use of Estimates:

The presentation of financial statements requires estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known/materialised.

3. Revenue Recognition:

a) Sale of goods is recognised on completion of supplies as per the terms of the contract and on transfer of risk and reward. Sales include excise duty and adjustment for price variation and are net of claims accepted.

b) In case of construction/erection contracts, revenue is recognised based on the stage of completion determined as per the terms of the contract. Sales/income are booked on the basis of running account bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

c) Interest income is recognised on time proportion basis.

d) The insurance claims are accounted for on accrual basis based on fair estimation of sanction by the insurance companies.

4. Fixed Assets:

Fixed assets are stated at cost of acquisition or construction, net of recoverable taxes including any cost attributable for bringing the asset to its working condition for its intended use and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

5. Depreciation/Amortisation:

a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except on computer software and on fixed assets of Uganda, Bhutan, Bangladesh and Kenya branches.

b) Computer software is depreciated over a period of 3 to 6 years depending upon the expected useful life of the software.

c) On the fixed assets of Uganda, Bangladesh Bhutan and Kenya branches, depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries.

d) Assets individually costing Rs. 0.05 Lacs or less are depreciated fully in the year of purchase.

e) In case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is recouped out of the revaluation reserve.

f) Leasehold Land is amortised over the period of lease.

g) Goodwill arising on amalgamation is amortised over a period of 5 years.

6. Investments:

Long term investments are stated at cost. Provision for diminution in value of such investments is made only if such a decline is other than temporary.

7. Inventories:

a) Raw materials, Construction materials, Components and Stores and Spares are valued at lower of cost or net realisable value.

b) Cost of inventories is determined by using the weighted average method.

c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

e) Finished goods are valued at cost or net realisable value, whichever is lower and inclusive of excise duty.

f) Scrap is valued at net realisable value.

8. Tools and Tackles:

Tools and tackles are amortised over their estimated useful life.

9. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expenses in the period in which they are incurred.

10. Impairment of Assets:

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any such indication exists, then recoverable amount of the asset is estimated. An impairment loss, if any, is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

The impairment loss recognised in a prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

11. Debenture / Preference Share Issue Expenses:

Expenses incurred for issue of secured debentures and preference share made by the Company, were written off as revenue expenditure during the year of issue.

12. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are accounted for at the exchange rates prevailing on the dates of the transactions or that approximates the actual rate at the dates of transactions.

b) Monetary items denominated in foreign currencies, remaining unsettled at the year end are restated at the year end rates.

c) Non-monetary items denominated in a foreign currency are stated at costs.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in Statement of Profit and Loss.

e) Financial Statements of Overseas Integral Operations are translated as under:

i) Assets and liabilities are translated at the rate prevailing at the end of the year. Income and expenditure are translated on the yearly average exchange rate prevailing during the year.

ii) Fixed assets are translated at the average rate prevailing on purchase/acquisition of assets. Depreciation is accounted at the same rate at which the assets are translated.

iii) The resultant exchange gains and losses are recognised in the Statement of Profit and Loss.

f) Forward Exchange Contracts:

i) In case of transactions covered by forward exchange contracts which are not intended for trading or speculation purposes, premium or discount is amortised as expense or income over the life of the contract.

ii) Exchange difference on such contracts is recognised in the Statement of Profit and Loss in the year in which the exchange rates change.

iii) Profit or loss arising on cancellation or renewal of such forward exchange contracts are recognised as income or expense for the year.

13. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of the inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

14. Leased Assets:

Operating Lease:

i) Lease payments are recognised as expense in the Statement of Profit and Loss on straight line basis over the term of the lease.

ii) Assets given on operating lease are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on straight line basis over the term of the lease.

15. Employees Retirement and Other Benefits:

a) Short Term Employee Benefits:

Short term employee benefits are recognised as expenses at the undiscounted amount in the period during which the services have been rendered.

b) Long Term Employee Benefits:

1) Defined Contribution Plan:

The Company''s contribution to Provident Fund and Superannuation Fund are charged to Statement of Profit and Loss on accrual basis.

2) Defined Benefit Plan:

i) Gratuity: The company provides for gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii) Leave Encashment: The company provides for liability at the year end on account of unavailed earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii) The bonus and leave travel allowance applicable to employees is accounted for on accrual basis.

iv) The cost of employee stock option attributable to current financial year is accounted for and charged to Statement of Profit and Loss.

16. Taxes on Income:

a) Current Tax:

Provision for current Income Tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Tax:

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax asset is not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

17. Earnings Per Share:

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

18. Provisions and Contingencies:

a) A provision is recognised when there is a present obligation as a result of a past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

c) Contingent assets are neither recognised nor disclosed in the financial statement.

19. Employees Stock Option Scheme:

Stock options granted to the employees of the company, under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. Accordingly, excess of market value of the stock option, as on date of grant over the exercise price of the option is recognised as deferred employee compensation and is charged to Statement of Profit and Loss as employee costs, on straight line method over the vesting period of the options.


Mar 31, 2012

1. Basis of Preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting, except for certain fixed assets which are revalued in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956. They are prepared in accordance with the accounting standards notified under sub section (3C) of section 211 of the Companies Act, 1956 and other relevant provisions to the extent applicable.

2. Use of Estimates:

The presentation of financial statements requires estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known/materialised.

3. Revenue Recognition:

a) Sale of goods is recognised on completion of supplies as per the terms of the contract and on transfer of risk and reward. Sales includes excise duty and adjustment for price variation and are net of claims accepted.

b) In case of construction/erection contracts, revenue is recognised based on the stage of completion determined as per the terms of the contract. Sales/income are booked on the basis of running account bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

c) Interest income is recognised on time proportion basis.

d) The insurance claims are accounted for on accrual basis based on fair estimation of sanction by the insurance companies.

4. Fixed Assets:

Fixed assets are stated at cost of acquisition or construction, net of recoverable taxes including any cost attributable for bringing the asset to its working condition for its intended use and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

5. Depreciation/Amortisation:

a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except on computer software and on fixed assets of Uganda, Bhutan and Bangladesh branches.

b) Computer software is depreciated over a period of 3 to 6 years depending upon the expected useful life of the software.

c) On the fixed assets of Uganda, Bangladesh and Bhutan branches, depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries.

d) Assets individually costing 0.05 Lacs or less are depreciated fully in the year of purchase.

e) In case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is recouped out of the revaluation reserve.

f) Leasehold Land is amortised over the period of lease.

g) Goodwill arising on amalgamation is amortised over a period of 5 years.

6. Investments:

Long term investments are stated at cost. Provision for diminution in value of such investments is made only if such a decline is other than temporary.

7. Inventories:

a) Raw materials, Construction materials, Components and Stores and Spares are valued at lower of cost or net realisable value.

b) Cost of inventories is determined by using the weighted average method.

c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

e) Finished goods are valued at cost or net realisable value, whichever is lower and inclusive of excise duty.

f) Scrap is valued at net realisable value.

8. Tools and Tackles:

Tools and tackles are amortised over their estimated useful life.

9. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expenses in the period in which they are incurred.

10. Impairment of Assets:

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any such indication exists, then recoverable amount of the asset is estimated. An impairment loss, if any, is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

The impairment loss recognised in a prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

11. Debenture Issue Expenses:

Expenses incurred for issue of secured debentures made by the Company, were written off as revenue expenditure during the year of issue.

12. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are accounted for at the exchange rates prevailing on the dates of the transactions or that approximates the actual rate at the dates of transactions.

b) Monetary items denominated in foreign currencies, remaining unsettled at the year end are restated at the year end rates.

c) Non-monetary items denominated in a foreign currency are stated at costs.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in Statement of Profit and Loss.

e) Financial Statements of Overseas Integral Operations are translated as under:

i) Assets and liabilities are translated at the rate prevailing at the end of the year. Income and expenditure are translated on the yearly average exchange rate prevailing during the year.

ii) Fixed assets are translated at the average rate prevailing on purchase/acquisition of assets. Depreciation is accounted at the same rate at which the assets are translated.

iii) The resultant exchange gains and losses are recognised in the Statement of Profit and Loss.

f) Forward Exchange Contracts:

i) In case of transactions covered by forward exchange contracts which are not intended for trading or speculation purposes, premium or discount is amortised as expense or income over the life of the contract.

ii) Exchange difference on such contracts is recognised in the Statement of Profit and Loss in the year in which the exchange rates change.

iii) Profit or loss arising on cancellation or renewal of such forward exchange contracts are recognised as income or expense for the year.

13. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of the inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

14. Leased Assets:

Operating Lease:

i) Lease payments are recognised as expense in the Statement of Profit and Loss on straight line basis over the term of the lease.

ii) Assets given on operating lease are included in fixed assets. Lease income is recognised in the Statement of Profit and Loss on straight line basis over the term of the lease.

15. Employees Retirement and Other Benefits:

a) Short Term Employee Benefits:

Short term employee benefits are recognised as expenses at the undiscounted amount in the period during which the services have been rendered.

b) Long Term Employee Benefits:

1) Defined Contribution Plan:

The Company's contribution to Provident Fund and Superannuation Fund are charged to Statement of Profit and Loss on accrual basis.

2) Defined Benefit Plan:

i) Gratuity: The company provides for gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii) Leave Encashment: The company provides for liability at the year end on account of unavailed earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii) The bonus and leave travel allowance applicable to employees is accounted for on accrual basis.

iv) The cost of employee stock option attributable to current financial year is accounted for and charged to Statement of Profit and Loss.

16. Taxes on Income:

a) Current Tax:

Provision for current Income Tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Tax

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax asset is not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

17. Earnings Per Share:

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

18. Provisions and Contingencies:

a) A provision is recognised when there is a present obligation as a result of a past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

c) Contingent assets are neither recognised nor disclosed in the financial statement.

19. Employees Stock Option Scheme:

Stock option granted to the employees of the company, under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. Accordingly, excess of market value of the stock option, as on date of grant over the exercise price of the option is recognised as deferred employee compensation and is charged to Statement of Profit and Loss as employee costs, on straight line method over the vesting period of the options.


Mar 31, 2011

1. Basis of Preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting, except for certain fixed assets which are revalued in accordance with generally accepted accounting principles in India and the provisions of the Companies Act, 1956. They are prepared in accordance with the accounting standards notified under sub section (3C) of section 211 of the Companies Act, 1956 and other relevant provisions to the extent applicable.

2. Use of Estimates:

The presentation of financial statements requires estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and the estimates are recognised in the period in which the results are known/materialised.

3. Revenue Recognition:

a) Sale of goods is recognised on completion of supplies as per the terms of the contract and on transfer of risk and reward. Sales include excise duty and adjustment for price variation and are net of claims accepted.

b) In case of construction/erection contracts, revenue is recognised based on the stage of completion determined as per the terms of the contract. Sales/income are booked on the basis of running account bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

c) Interest income is recognised on time proportion basis.

d) The insurance claims are accounted for on accrual basis based on fair estimation of sanction by the insurance companies.

4. Fixed Assets:

Fixed assets are stated at cost of acquisition or construction, net of recoverable taxes including any cost attributable for bringing the asset to its working condition for its intended use and includes amount added on revaluation, less accumulated depreciation and impairment loss, if any.

5. Depreciation/Amortisation:

a) Depreciation on fixed assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956 except on computer software and on fixed assets of Uganda, Tunisia and Bhutan branches.

b) Computer software is depreciated over a period of 3 to 6 years depending upon the expected useful life of the software.

c) On the fixed assets of Tunisia, Uganda and Bhutan branches, depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries.

d) Assets individually costing 0.005 Million or less are depreciated fully in the year of purchase.

e) In case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is recouped out of the revaluation reserve.

f) Leasehold Land is amortised over the period of lease.

g) Goodwill arising on amalgamation is amortised over a period of 5 years.

6. Investments:

Long term investments are stated at cost. Provision for diminution in value of such investments is made only if such a decline is other than temporary.

7. Inventories:

a) Raw materials, Construction materials, Components and Stores and Spares are valued at lower of cost or net realisable value.

b) Cost of inventories has been determined by using the weighted average method.

c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

e) Finished goods are valued at cost or net realisable value, whichever is lower and inclusive of excise duty.

f) Scrap is valued at net realisable value.

8. Tools and Tackles:

Tools and tackles are amortised over their estimated useful life.

9. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognised as expenses in the period in which they are incurred.

10. Impairment of Assets:

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any such indication exists, then recoverable amount of the asset is estimated. An impairment loss, if any, is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

The impairment loss recognised in a prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

11. Debenture issue expenses:

Expenses incurred for issue of secured debentures made by the Company, are written off as revenue expenditure during the year of issue.

12. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are accounted for at the exchange rates prevailing on the dates of the transactions or that approximates the actual rate at the dates of transactions.

b) Monetary items denominated in foreign currencies, remaining unsettled at the year end are restated at the year end rates.

c) Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognised in Profit and Loss Account.

e) Financial Statements of Overseas Integral Operations are translated as under:

i. Assets and liabilities are translated at the rate prevailing at the end of the year. Income and expenditure are translated on the yearly average exchange rate prevailing during the year.

ii. Fixed assets are translated at the average rate prevailing on purchase/acquisition of assets. Depreciation is accounted at the same rate at which the assets are translated.

iii. The resultant exchange gains and losses are recognised in the Profit and Loss Account.

f) Forward Exchange Contracts:

i. In case of transactions covered by forward exchange contracts which are not intended for trading or speculation purposes, premium or discount is amortised as expense or income over the life of the contract.

ii. Exchange difference on such contracts is recognised in the Profit and Loss Account in the year in which the exchange rates change.

iii. Profit or loss arising on cancellation or renewal of such forward exchange contracts are recognised as income or expense for the year.

13. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of the inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

14. Leased Assets:

Operating Lease:

i. Lease payments are recognised as expense in the Profit and Loss Account on straight line basis over the term of the lease.

ii. Assets given on operating lease are included in fixed assets. Lease income is recognised in the Profit and Loss Account on straight line basis over the term of the lease.

15. Employee Benefits:

a. Short Term Employee Benefits:

Short term employee benefits are recognised as expenses at the undiscounted amount in the period during which the services have been rendered.

b. Long Term Employee Benefits:

1. Defined Contribution Plan:

The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account on accrual basis.

2. Defined Benefit Plan:

i. Gratuity: The Company provides for gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii. Leave encashment: The Company provides for liability at the year end on account of unavailed earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii. The bonus and leave travel allowance applicable to employees is accounted for on accrual basis.

iv. The cost of employee stock option attributable to current financial year is accounted for and charged to Profit and Loss Account.

16. Taxes on Income:

a. Current Tax:

Provision for current Income Tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b. Deferred Tax:

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax asset is not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

17. Earnings Per Share:

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

18. Provisions and Contingencies:

a. A provision is recognised when there is a present obligation as a result of a past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b. A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

c. Contingent assets are neither recognised nor disclosed in the financial statement.

19. Employees Stock Option Scheme:

Stock option granted to the employees of the Company, under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. Accordingly, excess of market value of the stock option, as on date of grant over the exercise price of the option is recognised as deferred employee compensation and is charged to Profit and Loss Account as employee costs, on straight line method over the vesting period of the options.


Mar 31, 2010

1. Basis of preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting, except for certain fixed assets which are revalued in accordance with generally accepted accounting principles in India and the provisions of the Companies Act 1956. They are prepared in accordance with accounting standards notified under sub section (3C) of section 211 of the Companies Act, 1956 and other relevant provisions to the extent applicable.

2. Revenue Recognition:

a) Sale of goods is recognised on completion of supplies as per the terms of the contract and upon raising commercial invoices. Sales include excise duty and adjustment for price variation and are net of claims accepted.

b) In case of construction / erection contracts, revenue is recognised based on stage of completion determined as per the terms of the contract. Sales / income are booked on the basis of running account bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

c) Leasing income is accounted as per principles of AS 19 Accounting for Leases.

d) Interest income is accounted for on time proportion basis.

e) The insurance claims are accounted for on accrual basis based on fair estimation of sanction by the insurance companies.

3. Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, net of CENVAT / VAT credit as availed; including any cost attributable for bringing the asset to its working condition for its intended use and includes amount added on revaluation, less of accumulated depreciation and impairment loss, if any.

4. Depreciation / Amortisation:

a) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on computer software and on Fixed Assets of Ethiopia, Abu Dhabi, Uganda and Tunisia Branches.

b) Computer software is depreciated over a period of 3 to 6 years depending upon the expected useful life of the software.

c) On the Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method and in Tunisia, Abu Dhabi and Uganda Branches depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries.

d) In case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is recouped out of the Revaluation Reserve.

e) Leasehold land is amortised over the period of lease.

f) Goodwill arising on amalgamation is amortised over a period of 5 years.

5. Investments:

Long term investments are stated at cost. Provision for diminution in value of such investments is made only if such a decline is other than temporary.

6. Inventories:

a) Raw Materials, Construction materials, Components and Stores & Spares are valued at lower of cost or net realisable value.

b) Cost of inventories has been determined by using the weighted average cost formula.

c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

e) Finished goods are valued at cost or net realisable value, whichever is lower and inclusive of excise duty.

f) Scrap is valued at net realisable value.

7. Tools and Tackles:

Tools and tackles are amortised over their estimated life.

8. Borrowing Cost:

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expenses in the period in which they are incurred.

9. Impairment of Assets:

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any such indication exists, then recoverable amount of the asset is estimated. An impairment loss, if any, is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the net selling price and the value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

10. Share issue expenses:

Expenses incurred for issue of Equity Shares made by the Company were written off over a period of 5 years in equal installments. However, from the current year, no such expenses are carried forward and the full balance is written off during the year.

11. Foreign Currency Transactions:

a) Transactions in foreign currencies are accounted for at the exchange rates prevailing on the dates of the transactions or that approximates the actual rate at the dates of transactions.

b) Monetary items denominated in foreign currencies, remaining unsettled at the year end are restated at the closing rates.

c) Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

d) Any income or expense on account of exchange difference either on settlement or on translation is recognized in Profit and Loss account.

e) Financial Statements of Overseas Integral operations are translated as under :

a. Assets and liabilities are translated at the rate prevailing at the end of the year. Income and expenditure are translated on the yearly average exchange rate prevailing during the year.

b. Fixed assets are translated at the average rate prevailing on purchase / acquisition of assets. Depreciation is accounted at the same rate at which the assets are translated.

c. The resultant exchange gains and losses are recognised in the Profit and Loss account.

f) Forward Exchange Contracts:

a. In case of transactions covered by forward exchange contracts which are not intended for trading or speculation purposes, premium or discount is amortised as expense or income over the life of the contract.

b. Exchange difference on such contracts is recognised in the Profit and Loss account in the year in which the exchange rates change.

c. Profit or loss arising on cancellation or renewal of such forward exchange contracts are recognised as income or expense for the year.

12. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of the inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

13. Leased Assets:

Operating Lease:

i. Lease payments are recognized as expense in the Profit and Loss account on straight line basis over the term of the lease.

ii. Asset given on operating lease are included in Fixed Assets. Lease income is recognized in the Profit and Loss account on straight line basis over the term of the lease.

14. Employees retirement and other benefits:

a) Short term employee benefits:

Short term employee benefits are recognised in the period during which the services have been rendered.

b) Long term Employee Benefits:

a. Defined contribution plan:

The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account on accrual basis.

b. Defined benefit plan:

i. Gratuity: The Company provides for gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii. Leave encashment: The Company provides for liability at the year end on account of unavailed earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii. The bonus and leave travel allowance applicable to employees is accounted for on accrual basis.

iv. The cost of employee stock option attributable to current financial year is accounted for and charged to Profit and Loss account.

15. Taxes on Income:

a) Current Tax:

Provision for current Income Tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Tax:

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

16. Earnings Per Share:

The basic earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of Equity Shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

17. Use of Estimates:

The presentation of financial statements requires estimates and assumptions. These estimates and assumptions affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual result and the estimates are recognized in the period in which the results are known /materialized.

18. Provisions and Contingencies:

a) A provision is recognised when there is a present obligation as a result of a past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

19. Employees Stock Option Scheme:

Stock option granted to the employees of the Company, under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999. Accordingly, excess of market value of the Stock Option, as on date of grant over the exercise price of the options is recognised as deferred employee compensation and is charged to Profit and Loss account as employee costs, on straight line method over the vesting period of the options.


Mar 31, 2009

1. Basis of preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting. They are prepared in accordance with accounting standards notified under sub section (3C) of section 211 of the Companies Act, 1956 and other relevant provisions to the extent applicable.

2. Revenue Recognition:

a) Sale of goods is recognised on completion of supplies as per the terms of the contract and upon raising commercial invoice. Sales include excise duty and adjustment for price variation and are net of claims accepted.

b) In case of construction / erection contracts, revenue is recognised based on stage of completion determined as per the terms of the contract. Sales / income are booked on the basis of running bills based on completed work and are net of claims accepted. Escalations and other claims which are not acknowledged by customers are not taken into account.

c) Leasing income is accounted for on accrual basis.

d) Interest income is accounted for on time proportion basis.

e) The insurance claims are accounted for on accrual basis based on fair estimation of sanction by the insurance companies.

3. Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction, including any cost attributable for bringing the asset to its working condition for its intended use and less of accumulated depreciation. Loss on impairment of an asset, if any, is ascertained and recognised at the year end.

4. Depreciation:

a) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on computer software and on Fixed Assets of Ethiopia, Abu Dhabi, Uganda and Tunisia Branches.

b) On the Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method and in Tunisia, Abu Dhabi and Uganda Branches depreciation is provided on Straight Line Method. The applicable rates are based on the local laws and practices of the respective countries and they range between:

Office equipments 10% to 20%

Vehicles 20% to 50%

Computer 25% to 50%

Furniture 20% to 50%

Plant and Machinery 20%

c) Leasehold land is amortised over the period of lease.

d) Computer software is depreciated over a period of 3 years.

5. Investments:

Long term Investments are stated at cost, except where there is a diminution in value other than temporary in which case the carrying value is reduced to recognise the decline.

6. Inventories:

a) Raw Materials, Construction materials, Components and Stores & Spares are valued at lower of cost or net realisable value.

b) Cost of inventories has been determined by using the weighted average cost formula.

c) Material purchased for supply against specific contracts is valued at cost or net realisable value as per the contract, whichever is lower.

d) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realisation is lesser than the carrying cost.

e) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty. f) Tools and tackles are valued at cost and proportionately written off over a period of three years.

g) Scrap is valued at net realisable value.

7. Impairment of Assets :

Impairment loss, if any, is provided to the extent the carrying amount of asset exceeds its recoverable amount. The recoverable amount is higher of the asset's net selling price and its value in use.

8. Share issue expenses :

Expenses incurred for issue of Equity Shares made by the Company are written off over a period of 5 years in equal installments.

9. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

10. Employees retirement and other benefits: Short term employee benefits:

Short term employee benefits are recognised in the period during which the services have been rendered.

Long term Employee Benefits:

a. Defined contribution plan :

The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account on accrual basis.

b. Defined benefit plan :

i. Gratuity:

The company provides for gratuity based on actuarial valuation as per the Projected Unit Credit Method.

ii. Leave encashment:

The company provides for liability at the year end on account of unavailed earned leave as per the actuarial valuation as per Projected Unit Credit Method.

iii. The cost of employee stock option attributable to current financial year is accounted for and charged to profit & loss account.

iv. The bonus and leave travel allowance applicable to employees is accounted for on accrual basis.

11. Taxes on Income :

a) Current Tax:

Provision for current income tax is made on the estimated taxable income using the applicable tax rates and tax laws.

b) Deferred Tax:

Deferred tax arising on the timing differences and which are capable of reversal in one or more subsequent periods is recognised using the tax rates and tax laws that have been enacted or substantively enacted. Deferred tax assets are not recognised unless there is a virtual certainty as regards to the reversal of the same in future years.

12. Earnings Per Share:

The basic earning per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

13. Provisions and Contingencies:

a) A provision is recognised when there is present obligation as a result of past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

14. Employees Stock Option Scheme :

Stock option granted to the employees of the company under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 issued by Securities and Exchange Board of India. Accordingly excess of market value of the Stock Option as on date of grant over the exercise price of the Options is recognised as deferred employee compensation and is charged to profit & loss accounts as employee costs on straight line method over the vesting period of the Options.


Mar 31, 2008

1. Basis of preparation of Financial Statements:

The financial statements have been prepared and presented under the historical cost convention, on accrual basis of accounting and in compliance with accounting standards prescribed to the extent applicable.

2. Revenue Recognition:

a) Sale of goods is recognised on completing the supplies as per Set / Completed Tower basis and upon raising commercial invoice. Sales include excise duty and adjustment for price variation and are net of claims accepted.

b) In case of construction contracts, revenue is recognized as per percentage completion method and sales / income are booked on the basis of running bills based on completed work as per Accounting Standard - 7 and are net of claims accepted. Escalations and other claims which are not ascertainable / acknowledged by customers are not taken into account.

c) Leasing income is accounted for on accrual basis.

d) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

3. Fixed Assets:

Fixed Assets are stated at cost of acquisition, including any cost attributable for bringing the asset to its working condition for its intended use and less of accumulated depreciation.

4. Depreciation:

a) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Fixed Assets of Ethiopia and Tunisia Branches.

b) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method at the rates applicable in Ethiopia. If the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956; the profit of the Company would have been lower by Rs. 0.25 Million (P.Y. lower by Rs. 0.09 Million).

c) On all Fixed Assets of Tunisia Branch, the depreciation is provided on Straight Line Method at the rates applicable in Tunisia. If the depreciation had been provided on all fixed assets of the Tunisia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956; the profit of the Company would have been higher by Rs. 0.02 Million (P.Y. Rs. 0.008 Million).

d) Leasehold land is amortised over the period of lease.

5. Investments:

Investments are stated at cost, except where there is a diminution in value other than temporary in which case the carrying value is reduced to recognize the decline.

6. Inventories:

a) Raw Materials, Construction materials, Components and Stores & Spares are valued at lower of cost or net realisable value.

b) Cost of inventories has been determined by using the weighted average cost formula.

c) Work-in-progress is valued at cost including material cost and attributable overheads. Provision is made when expected realization is lesser than the carrying cost.

d) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

e) Tools and tackles are valued at cost less amounts written off.

f) Scrap is valued at net realisable value.

7. Impairment of Assets:

Impairment loss if any is provided to the extent the carrying amount of asset exceeds its recoverable amount. The recoverable amount is higher of the assets net selling price and its value in use.

8. Amortisation:

a) Deferred Revenue Expenditure and Issue expenses:

Deferred Revenue Expenses and Expenses incurred for issue of Equity Shares made by the Company are written off over a period of 5 years in equal instalments.

b) Cost of Stock Options:

The cost of employee stock options granted is recognised on issue of Stock options and such cost is amortised as per SEBI guidelines.

9. Government Grant:

The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations".

10. Foreign Currency Transactions:

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translation and realised gains and losses on foreign currency transactions, are recognised in the Profit and Loss Account. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs. Foreign Branches: (Integral)

a) Fixed assets are translated at the rates on the date of purchase / acquisition of assets.

b) Monetary items are translated at the year end exchange rates which reflect the likely realization. Income and expenditure are translated on the average rate of exchange.

c) The resultant exchange gains and losses are recognised in the Profit and Loss Account.

11. Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of inventory. The amount of Central Value Added Tax (CENVAT) credit in respect of materials consumed for sales is deducted from cost of materials consumed.

12. Employees retirement and other benefits:

a) Defined contribution plan:

The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

b) Defined benefit plan:

The Companys contribution to Gratuity Fund is towards premium on LICs policy taken by the Trustees of the Fund to cover the gratuity liability. The Company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees. The Management is of the opinion that the Gratuity funds will be sufficient to cover the future liability of gratuity and no further provision is required to be made on this account.

c) The Bonus to employees is accounted for on accrual basis.

d) The liability on account of Leave Encashment and Leave Travel Allowance is accounted for on accrual basis.

e) The cost of employee stock option attributable to current financial year is accounted for and charged to Profit & Loss Account.

13. Taxes on Income:

The current tax is determined as the amount of tax payable in respect of estimated taxable income for the period. Deferred tax is recognized subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income for a period that originate in one period and is capable of reversal in one or more subsequent periods. Deferred tax asset are recognised only when there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised.

14. Earnings Per Share:

The basic earning per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

15. Provisions and Contingencies:

a) A provision is recognized when there is present obligation as a result of past event and 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 reviewed at each balance sheet date and adjusted to reflect the current best estimate.

b) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

16. Employees Stock Option Scheme :

Stock option granted to the employees of the company under the Employees Stock Option Scheme are evaluated as per the accounting treatment prescribed by SEBI (Employee Stock Option Scheme and Employees Stock Purchase Scheme) Guidelines, 1999 issued by Securities and Exchange Board of India. Accordingly excess of market value of the Stock Option as on date of grant over the exercise price of the Options is recognized as deferred employee compensation and is charged to profit & loss accounts as employee costs on straight line method over the vesting period of the Options.


Mar 31, 2007

1. Significant Accounting Policies:

a) System of Accounting:

Generally Mercantile System of Accounting is followed.

b) Revenue Recognition:

i) Sale of goods is recognized on completing the supplies as per Set/Completed Tower basis and upon raising commercial invoice. Sales include excise duty and adjustment for price variation and are net of claims accepted.

ii) In case of construction contracts, revenue is recognized as per percentage completion method and sales/income are booked on the basis of running bills based on completed work as per Accounting Standard - 7 and are net of claims accepted. Escalations and other claims which are not ascertainable/acknowledged by customers are not taken into account.

iii) Leasing income is accounted for on accrual basis.

iv) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

c) Amortisation:

i) Deferred Revenue Expenditure and Issue expenses:

Deferred Revenue Expenses and Expenses incurred for issue of Equity Shares made by the Company are written off over a period of 5 years.

ii) Cost of Stock Option

The cost of Employee Stock Option granted is recognized on issue of Stock Options and such cost is amortised as per SEBI guidelines.

d) Government Grant:

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income there from is recognized in the Profit & Loss Account over the balance life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations".

e) Foreign Currency Transactions:

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account. In respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

f) Inventories:

i) Raw Materials, Construction Materials, Components and Stores & Spares are valued at cost using the weighted average cost formula.

ii) Cost of inventories has been determined by using the weighted average cost formula.

iii) Work-in-progress is valued at cost.

iv) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

v) Tools and tackles are valued at cost less amounts written off.

vi) Scrap is valued at net realisable value.

g) Investments:

Investments are stated at cost, except where there is a diminution in value other than temporary in which case the carrying value is reduced to recognize the decline.

h) Fixed Assets:

Fixed Assets are stated at cost of acquisition, including any cost attributable for bringing the asset to its working condition for its intended use and less of accumulated depreciation.

i) Depreciation:

i) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Fixed Assets of Oman, Ethiopia & Tunisia Branches.

ii) The Fixed Assets of Oman Branch have been fully depreciated in the current year.

iii) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method at the rates applicable in Ethiopia.

If the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been lower by Rs.0.09 Million (P.Y. higher by Rs. 1.73 Million)

iv) On all Fixed Assets of Tunisia Branch, the depreciation is provided on Straight Line Method at the rates applicable in Tunisia.

If the depreciation had been provided on all fixed assets of the Tunisia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.008 Million (P.Y. Rs. 0.001 Million)

j) Proposed Dividend:

Dividend proposed by the board of Directors is provided for in the books of accounts pending approval at the Annual General Meeting.

k) Excise Duty:

The excise duty in respect of closing inventory of finished goods is included as part of inventory. The amount of Central Value Added Tax (CENVAT) credits in respect of materials consumed for sales is deducted from cost of materials consumed.

l) Employees' retirement and other benefits:

i) The Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Company's contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees of the Fund to cover the gratuity liability. The Company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The Bonus to employees is accounted for on accrual basis.

iv) The liability on account of Leave Encashment is accounted for on accrual basis.

v) The cost of employee stock option attributable to current financial year is accounted for and charged to profit & loss account.

m) Taxes on Income:

The current tax is determined as the amount of tax payable in respect of Taxable income for the period. Deferred tax is recognized subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and is capable of reversal in one or more subsequent periods.

n) Earnings Per Share:

The basic earning per share is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting period. Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti dilutive.

o) Provisions and Contingencies:

i) A provision is recognized when there is present obligation as a result of past event and 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 reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.

ii) A disclosure for a contingent liability is made when there is a possible or present obligation that may but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.


Mar 31, 2006

A) System of Accounting:

Generally Mercantile System of Accounting is followed.

b) Revenue Recognition:

i) Sale of goods is recognised on completing the supplies as per Set/Completed Tower basis and upon raising commercial invoice. Sales include excise duty and adjustment for price variation.

ii) In case of construction contracts, revenue is recognized in percentage completion method and sales/income are booked on the basis of running bills based on completed work as per Accounting Standard - 7. However, certain escalations and other claims which are not ascertainable/acknowledged by customers are not taken into account.

iii) Leasing income is accounted for on accrual basis.

iv) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

c) Amortisation:

i) Deferred Revenue Expenditure and Issue expenses:

Deferred Revenue Expenses and Expenses incurred for issue of Equity Shares made by the Company are written off over a period of 5 years.

ii) Cost of Stock Option

The cost of Employee Stock option Granted is recognised on issue of Stock options and such cost is amortised as per SEBI guidelines.

d) Government Grant:

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income there from is recognised in the Profit & Loss Account over the balance life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations".

e) Foreign Currency Transactions:

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account. In respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

f) Inventories:

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

iv) Tools and tackles are valued at cost less amounts written off.

v) Scrap is valued at net realisable value.

vi) Cost of inventories has been determined by using the weighted average cost formula.

g) Investments:

Investments are stated at cost.

h) Fixed Assets:

Fixed Assets are stated at cost, inclusive of incidental expenses.

i) Depreciation:

i) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Fixed Assets of Oman, Ethiopia & Tunisia Branches.

ii) On all Fixed Assets of Oman Branch, the depreciation is provided on Straight Line Method at the uniform rate of 15% on pro-rata basis.

If the depreciation would have been provided on all Fixed Assets of Oman Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.04 Lacs (P.Y. Rs. 0.04 Lacs)

iii) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method at the rates applicable in Ethiopia.

If the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 17.30 Lacs (P.Y. Rs. 13.29 Lacs)

iv) On all Fixed Assets of Tunisia Branch, the depreciation is provided on Straight Line Method at the rates applicable in Tunisia.

If the depreciation had been provided on all fixed assets of the Tunisia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.01 Lacs (P.Y Rs. 0.003 Lacs)

j) Employees' retirement and other benefits:

i) The Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Company's contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees of the Fund to cover the gratuity liability. The company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The Bonus to employees is accounted for on accrual basis.

iv) The liability on account of Leave Encashment is accounted for on accrual basis.

v) The cost of employee stock option attributable to current financial year is accounted for and charged to profit & loss account.


Mar 31, 2005

1. Significant Accounting Policies:

a) System of Accounting:

Generally Mercantile System of Accounting is followed.

b) Revenue Recognition:

i) Sale of goods is recognised on completing the supplies as per Set/Completed Tower basis and upon raising commercial invoice. Sales include excise duty and adjustment for price variation.

ii) In case of construction contracts, revenue is recognized in percentage completion method and sales/income are booked on the basis of running bills based on completed work as per Accounting Standard-7. However, certain escalations and other claims which are not ascertainable/acknowledged by customers are not taken into account.

iii) Leasing income is accounted for on accrual basis.

iv) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

c) Amortisation of Deferred Revenue Expenditure and Issue expenses:

Deferred Revenue Expenses and Expenses incurred for issue of Equity Shares made by the Company are written off over a period of 5 years.

d) Government Grant:

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income there from is recognised in the Profit & Loss Account over the balance life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations"

e) Foreign Currency Transactions:

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account. In respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

f) Inventories:

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

iv) Tools and tackles are valued at cost less amounts written off.

v) Scrap is valued at net realisable value.

vi) Cost of inventories has been determined by using the weighted average cost formula.

g) Investments:

Investments are stated at cost.

h) Fixed Assets:

Fixed Assets are stated at cost, inclusive of incidental expenses.

i) Depreciation:

i) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Fixed Assets of Oman, Ethiopia & Tunisia Branches.

ii) On all Fixed Assets of Oman Branch, the depreciation is provided on Straight Line Method at the uniform rate of 15% on pro-rata basis.

If the depreciation would have been provided on all Fixed Assets of Oman Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.04 Lacs (P.Y. Rs. 0.04 Lacs).

iii) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method at the rates applicable in Ethiopia.

If the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 13.29 Lacs (P.Y. Rs. 26.74 Lacs).

iv) On all Fixed Assets of Tunisia Branch, the depreciation is provided on Straight Method at the rates applicable in Tunisia.

If the depreciation had been provided on all fixed assets of the Tunisia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.003 Lacs (P.Y. Rs. Nil Lacs).

j) Employees' retirement and other benefits:

i) The Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Company's contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees of the Fund to cover the gratuity liability. The company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The Bonus to employees is accounted for on accrual basis.

iv) The liability on account of Leave Encashment is accounted for on accrual basis.


Mar 31, 2004

1. Significant Accounting Policies :

a) System of Accounting :

Generally Mercantile System of Accounting is followed.

b) Revenue Recognition :

i) Sale of goods is recognised on completing the supplies as per Set/Completed Tower basis and upon raising commercial invoice. Sales include excise duty and adjustment for price variation.

ii) In case of construction contracts, revenue is recognised on percentage of completion method as per AS-7. However, certain escalations and other claims which are not ascertainable/acknowledged by customers, are not taken into account.

iii) Leasing income is accounted for on accrual basis.

iv) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

c) Amortisation of Deferred Revenue Expenditure and Issue expenses:

Deferred Revenue Expenses and Expenses incurred for Issue of Equity Shares made by the Company are written off over a period of 5 years.

d) Government Grant:

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income therefrom is recognised in the Profit & Loss Account over the balance life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations"

e) Foreign Currency Transactions :

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account. In respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

f) Inventories:

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

iv) Tools and tackles are valued at cost less amounts written off.

v) Scrap is valued at net realisable value.

vi) Cost of inventories has been determined by using the weighted average cost formula.

g) Investments:

Investments are stated at cost.

h) Fixed Assets:

Fixed Assets are stated at cost, inclusive of incidental expenses.

i) Depreciation :

i) Depreciation on Fixed Assets is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on Fixed Assets of Oman & Ethiopia Branches.

ii) On all Fixed Assets of Oman Branch, the depreciation is provided on Straight Line Method at the uniform rate of 15% on pro-rata basis. If the depreciation would have been provided on all Fixed Assets of Oman Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.04 Lacs (P.Y. Rs. 0.59 Lacs)

iii) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on Written Down Value Method at the rates applicable in Ethiopia. If the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 26.74 Lacs (P.Y. Rs. 15.21 Lacs)

j) Employees retirement and other benefits :

i) The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Companys contribution to Gratuity Fund is towards premium on LICs policy taken by the Trustees of the Fund to cover the gratuity liability. The company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The Bonus to employees is accounted for on accrual basis.

iv) The liability on account of Leave Encashment is accounted for on accrual basis.


Mar 31, 2003

1. Significant Accounting Policies :

a) System of Accounting : Generally Mercantile System of Accounting is followed.

b) Revenue Recognition :

i) Sale of goods is recognised on completing the supplies as per Set/Completed Tower basis and upon raising commercial invoice.

ii) In case of construction contracts, revenue is recognised on percentage completion method as per AS-7.

iii) Leasing income is accounted for on accrual basis.

iv) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

c) Issue expenses:

Expenses for issue of Equity Shares made by the Company are written off over a period of 5 years.

d) Government Grant :

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income therefrom is recognised in the Profit & Loss Account over the balance life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations"

e) Foreign Currency Transactions :

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account, whereas in respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

f) Inventories :

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

iv) Tools and tackles are valued at cost less amounts written off except as stated in Note No. 1 (i) (ii) below.

v) Scrap is valued at net realisable value.

vi) Cost of inventories has been determined by using the weighted average cost formula.

g) Investments: Investments are stated at cost.

h) Fixed Assets : Fixed Assets are capitalised at cost, inclusive of incidental expenses.

i) Depreciation :

i) On all Fixed Assets except Leased Assets and Fixed Assets of Oman & Ethiopia Branch, depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

ii) On all Fixed Assets of Oman Branch, the depreciation is provided on Straight Line Method at the uniform rate of 15% on pro-rata basis. The depreciation on Tools & Tackles pertaining to Oman Branch has been included in depreciation on Plant & Machinery. If the depreciation had been provided on all Fixed Assets of Oman Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 0.59 Lacs (P.Y. loss would have been lower by Rs. 1.56 Lacs)

iii) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on Straight Line Method at the rates applicable in Ethiopia. If the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profit of the Company would have been higher by Rs. 15.21 Lacs (P.Y. loss would have been lower by Rs.4.33 Lacs).

iv) Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.

j) Employees retirement and other benefits :

i) The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Companys contribution to Gratuity Fund is towards premium on LICs policy taken by the Trustees of the Fund to cover the gratuity liability. The company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The Bonus to employees is accounted for on accrual basis.

iv) The liability on account of Leave Encashment is accounted for on accrual basis.


Mar 31, 2002

1. Significant Accounting Policies :

a) System of Accounting :

Generally Mercantile System of Accounting is followed.

b) Revenue Recognition :

i) Sale of goods is recognised at the time of despatch to customers on the basis of excise invoice.

ii) in case of construction contracts, revenue is recognized on percentage of completion method as per AS-7.

iii) Leasing income is accounted for on accrual basis, iv) The insurance claims are accounted for on accrual basis based on fair estimation of possible sanction of claims by the insurance companies.

c) Issue expenses:

Expenses for issue of Equity Shares made by the Company are written off over a period of 5 years.

d) Government Grant :

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income therefrom is recognised in the Profit & Loss Account over the balance life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations".

e) Foreign Currency Transactions :

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account, whereas in respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical costs.

f) inventories :

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

iv) Tools and tackles are valued at cost less amounts written off except as stated in Note No. 1 (i) (ii) below.

v) Scrap is valued at net realisable value,

vi) Cost of inventories has been determined by using the weighted average cost formula.

g) Investments :

Investments are stated at cost.

h) Fixed Assets :

Fixed Assets are capitalised at cost, inclusive of incidental expenses.

i) Depreciation :

i) On all Fixed Assets except Leased Assets and Fixed Assets of Oman & Ethiopia Branch, depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

ii) On all Fixed Assets of Oman Branch, the depreciation is provided on Straight Line Method at the uniform rate of 15% on pro-rata basis. The depreciation on Tools & Tackles pertaining to Oman Branch has been included in depreciation on Plant & Machinery. If the depreciation had been provided on all Fixed Assets of Oman Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the loss of the Company would have been lower by Rs. 1.56 Lacs (P.Y. Rs. 0.89 Lacs)

iii) On all Fixed Assets of Ethiopia Branch, the depreciation is provided on straight Line Method at the rates applicable in Ethiopia, if the depreciation had been provided on all fixed assets of the Ethiopia Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the loss of the Company would have been lower by Rs. 4.33 Lacs.

iv) Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.

j) Employees retirement and other benefits :

i) The Companys contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Companys contribution to Gratuity Fund is towards premium on LICs policy taken by the Trustees of the Fund to cover the gratuity liability. The company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The Bonus to employees is accounted for on accrual basis.

iv) The liability on account of Leave Encashment is accounted for on accrual basis.


Mar 31, 2001

(a) System of Accounting :

Generally Mercantile System of Accounting is followed unless otherwise stated.

(b) Revenue Recognition:

i) Sale of goods is recognised at the time of despatch to customers.

ii) In case of construction contracts and orders to be executed over a period of more than one year, the Sales/Income are booked on the basis of running bills based on completed work without postponing the same till completion of the entire project which may take up to 5 years.

iii) Leasing income is accounted for on accrual basis.

iv) Insurance claims are accounted for as and when received. The same is done on conservative basis in order to avoid the possibility of uncertainty about the amount for which the claims may be actually settled by the Insurance Companies at a later date.

(c) Issue expenses:

Expenses for issue of Equity Shares made by the Company are written off over a period of 5 years as against a period of 10Years followed till last year. Proportionate expenditure has been written off during the year. Due to this change in policy, "Amortisation of Share Issue Expenses" debited to Profit & Loss Account are higher by P¯s. 9.39 Lacs and consequently, the profit for the year is lower by equal amount.

(d) Government Grant:

i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income therefrom is recognised in the Profit & Loss Account over the life of assets for which it is received.

ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account, under the head "Income From Other Operations".

(e) Foreign Currency Transactions (Other than Foreign Branch):

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to Fixed Assets, are recognised in the Profit and Loss Account, whereas in respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than Fixed Assets denominated in a foreign currency are stated in terms of historical costs.

(f) Inventories:

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower and inclusive of excise duty.

iv) Tools and tackles are valued at cost less amounts written off.

v) Scrap is valued at net realisable value.

vi) Cost of inventories has been determined by using the weighted average cost formula.

(g) Investments:

Investments are stated at cost.

(h) Fixed Assets:

Fixed Assets are capitalised at cost, inclusive of incidental expenses.

(i) Depreciation:

i) On all Fixed Assets except Leased Assets and Fixed Assets of Oman Branch, depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

ii) On all Fixed Assets of Oman Branch, the depreciation is provided on Straight Line Method at the uniform rate of 15% on pro-rata basis. The depreciation on Tools & Tackles pertaining to Oman Branch has been included in depreciation on Plant & Machinery. If the depreciation had been provided on all Fixed Assets of Oman Branch on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956, the profits of the Company would have been higher by Rs. 0.89 Lacs.

iii) Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.

(j) Employees' retirement and other benefits :

i) The Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Company's contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees of the Fund to cover the Gratuity liability. The Company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) Bonus to employees and Ex-gratia are accounted for at the time of payment after the same is actually declared every year.

iv) The liability on account of leave encashment is not provided for on the Balance Sheet date since the same is not ascertainable/material.


Mar 31, 2000

(a) System of Accounting :

Generally Mercantile System of Accounting is followed unless otherwise stated.

(b) Revenue Recognition :

(i) Sale of goods is recognised at the time of despatch to customers.

(ii) Sales/Income in case of construction contracts and orders to be executed over a period of more than one year are booked on the basis of running bills based on completed work.

(iii) Leasing income is accounted for as and when received.

(iv) Insurance claims are accounted for as and when received.

(c) Issue Expenses :

Expenses for issue of Equity Shares made by the Company are written off over a period of 10 years and proportionate expenditure has been written off during the year.

(d) Government Grant :

(i) The amount of government grant received in respect of depreciable fixed assets is credited to Deferred Government Grant Account and income there from is recognised in the Profit & Loss Account over the life of assets for which it is received.

(ii) The amount of government grant received as compensation for expenses is credited to Profit & Loss Account under the head "Income From Other Operations."

(e) Foreign Currency Transactions :

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account, whereas in respect of liabilities directly incurred to acquired specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical cost.

(f) Inventories :

(i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost.

(ii) Work-in-progress is valued at cost.

(iii) Finished goods are valued at cost or net realisable value whichever is lower.

(iv) Tools and tackles are valued at cost less amounts written off.

(v) Scrap is valued at net realisable value.

(vi) Cost of inventories has been determined by using the weighted average cost formula.

(g) Investments :

Investments are stated at cost.

(h) Fixed Assets :

Fixed Assets are required at cost, inclusive of incidental expenses.

(i) Depreciation :

(i) On all Fixed Assets except the Leased Assets, depreciation is provided on straight-line method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

(ii) Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.

(j) Employees' retirement and other benefits :

(i) The Companies contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

(ii) The Companies contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees the Fund to cover the gratuity liability. The company is liable to make further contribution in case funds the hands of the trustees are not sufficient to meet the claims of the employees.

(iii) Bonus to employees and Ex-gratia are accounted for at the time of payment.

(iv) The liability on account of leave encashment is not ascertained or provided for on the Balance Sheet date.


Mar 31, 1999

1. System of Accounting :

Generally Mercantile System of Accounting is followed unless otherwise stated. Bonus to employees, Ex-gratia, Gratuity and Contribution to Superannuation Fund are accounted for at the time of payment. Insurance claims are accounted for as and when received.

2. Revenue Recognition :

i) Sale of goods is recognised at the time of despatch to customers.

ii) Sales/Income in case of construction contracts and orders to be executed over a period of more than one year are booked on the basis of running bills based on completed work.

iii) Leasing income is accounted for on accrual basis.

3. Issue expenses :

Expenses for issue of Equity Shares made by the Company are written off over a period of 10 years and proportionate expenditure has been written off during the year.

4. Government Grant :

The amount of government grant received is credited to Deferred Government Grant Account and income therefrom is recognised over the life of assets for which it is received.

5. Foreign Currency Transactions :

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account, whereas in respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets. Non-monetary items other than fixed assets denominated in a foreign currency are stated in terms of historical cost.

6. Inventories :

i) Raw Materials, Construction materials, Components and Stores & Spares are valued at cost. Scrap is valued at net realisable value.

ii) Work-in-progress is valued at cost.

iii) Finished goods are valued at cost or net realisable value whichever is lower.

iv) Tools and tackles are valued at cost less amounts written off.

7. Investments :

Investments are stated at cost.

8. Fixed Assets :

Fixed Assets are capitalised at cost, inclusive of incidental expenses.

9. Depreciation :

i) On all Fixed Assets except the Leased Assets, depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

ii) Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.

10. Employees' retirement and other benefits :

i) The Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account.

ii) The Company's contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees of the Fund to cover the gratuity liability. The Company is liable to make further contribution in case funds in the hands of the trustees are not sufficient to meet the claims of the employees.

iii) The liability on account of leave encashment is not ascertained or provided for on the Balance Sheet date.,


Mar 31, 1998

1) System of Accounting

Generally Mercantile System of Accounting is followed unless otherwise stated. Excise/Customs Duty are accounted for as and when paid. Bonus to employees, Ex-gratia, Gratuity and Contribution to Superannuation Fund are accounted for at the time of payment. Insurance claims are accounted for as and when received.

2) Revenue Recognition :

i) Sale of goods is recognised at the time of despatch to customers. ii) Sales/Income in case of construction contracts and orders to be executed over a period of more than one year are booked on the basis of running bills based on completed work. iii) Leasing income is accounted for on accrual basis.

3) Issue expenses :

Expenses for issue of Equity Shares made by the Company are written off over a period of 10 years and proportionate expenditure has been written off during the year.

4) Government Grant :

The amount of government grant received is credited to Deferred Government Grant Account and income therefrom is recognised over the life of assets for which it is received.

5) Foreign Currency Transactions :

Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts are reported at the closing rates. Gains and Losses on translations and realised gains and losses on foreign currency transactions, other than those relating to fixed assets, are recognised in the Profit and Loss Account, whereas in respect of liabilities directly incurred to acquire specific Fixed Assets, the same are adjusted to the carrying cost of those Fixed Assets.

6) Inventories :

i) Raw Materials and Stores & Spares-are valued at cost. Scrap is valued at net realisable value. ii) Work-in-progress is valued at estimated cost. iii) Finished goods are valued at estimated cost or net realisable value, whichever is lower. iv) Tools and Tackles are valued at estimated value.

7) Investments :

Investments are stated at cost.

8) Fixed Assets :

Fixed Assets are capitalised at cost inclusive of incidental expenses.

9) Depreciation :

i) On all Fixed Assets except the Leased Assets, depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. ii) Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.

10) Employees' Retirement and other Benefits :

i) The Company's contribution to Provident Fund and Superannuation Fund are charged to Profit and Loss Account. ii) The Company's contribution to Gratuity Fund is towards premium on LIC's policy taken by the Trustees of the Fund to cover the gratuity liability. The Company is liable to make further contribution in case funds in the hands of the Trustees are not sufficient to meet the claims of the employees. iii) The liability on account of leave encashment is not ascertained or provided for on the Balance Sheet date.


Mar 31, 1997

System of Accounting: Generally Mercantile System of Accounting is followed unless otherwise stated. Excise/Customs Duty are accounted for as and when paid. Bonus to employees is accounted for at the time of payment. Interest received on allotment money, interest on Fixed Deposits with bankers and interest on Investments in SBI/IDBI Bonds is accounted for as when received.

Revenue Recognition: Sales/Income in case of construction contracts and orders to be executed over a period of more than one year are booked on the basis of running bills based on completed work.

Leasing income is accounted on accrual basis.

Issue Expense: Expenses for issue of Equity Shares made by the Company are written off over a period of 10 years and proportionate expenditure has been written off during the year.

Government Grant: The amount of government grant received is credited to Deferred Government Grant Account and income therefrom is recognised over the life of assets for which it is received.

Foreign Currency Transactions: Transactions in foreign currencies, other than those covered by Forward Contracts, are accounted for at the exchange rates prevailing on the dates of transactions. Assets and Liabilities remaining unsettled at the end of the year, other than those covered by Forward Contracts, are translated at the closing rates. Gains and Losses on translations and realised gains & losses on foreign currency transactions, other than those relating to Fixed Assets, are recognised in the Profit and Loss Account; whereas in respect of liabilities incurred to acquire Fixed Assets, the same are adjusted to the carrying costs of Fixed Assets.

Inventories: Raw Materials and Stores & Spares are valued at cost. The scrap is valued at net realisable value.

Work-in-progress is valued at estimated cost.

Finished goods are valued at estimated cost or net realisable value whichever is lower.

Tools and Tackles are valued at estimated value.

Investments: Investments are stated at cost.

Fixed Assets: Fixed Assets are capitalised at cost, inclusive of incidental expenses.

Depreciation: On all Fixed Assets, except the Leased Assets, depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation on Leased Assets is provided on the basis of primary lease period of the assets.


Mar 31, 1996

Generally Mercantile system of Accounting is followed unless otherwise stated.

Valuation of inventories is made as under: Raw materials and stores & spares are valued at cost and the scrap is valued at net realisable value.

Work-in-progress is valued at estimated cost.

Finished goods are valued at estimated cost or net realisable value whichever is lower.

Tools and Tackles are valued at estimated value.

Investments are stated at cost.

All fixed assets are capitalised at cost, inclusive of incidental expenses,

Depreciation on Leased Assets has been provided on the basis of primary lease period of the assets. On all other fixed assets, depreciation is provided on Straight Line Method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Expenses for issue of equity shares made by the Company are written off over a period of 10 years and proportionate expenditure has been written off during the year.

Sales/income in case of Construction Contracts and orders to be executed over a period of more than one year are booked on the basis of running bills based on completed work.

Leasing income is accounted on accrual basis.

The amount of government grant received is credited to Deferred Government Grant Account and income therefrom is recognised over the life of assets for which it is received.

All the assets and liabilities in foreign currency as on 31st March, 1996 are accounted for at the rate of exchange prevailing as on that date.


Mar 31, 1995

Generally mercantile system of accounting is allowed unless otherwise stated.

Valuation of inventories are made as under :- Raw materials and stores & spares are valued at Cost.

Work-in-progress is valued at estimated cost.

Finished Goods are valued at estimated cost or realisable value whichever is lower as compared to valuation at contract price in the earlier years. This change has been implemented based on the advice of the Bankers of the Company. If the finished goods stock would have been valued on the same basis as that of last years the stock of finished goods would have been higher by Rs.40.96 lakhs and profit for the year would have been higher by the same amount.

Tools and Tackles are valued at estimated value.

All fixed assets are capitalised at cost inclusive of expenses.

Depreciation on Leased Assets has been provided based on the Primary lease period of the assets. On all other fixed assets depreciation is provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Expenses for issue of equity shares made by the Company during the year 198990 and for the Rights Issue made during the year 1992-93 are written off over a period of 10 years and proportionate expenditure has been written off during the year.

Samcoroe in case of Construction Contracts and orders to be executed over a period of financial years are booked on the basis of minning bills based on completed work.

Lease income is accounted on accrual basis.


Mar 31, 1994

A) Generally mercantile system of accounting is followed unless otherwise stated.

b) Valuation of Inventories are made as under:-

i) Raw materials, stores and spares and work-in-progress at cost.

ii) Finished goods at contract price.

iii) Tools and Tackles at depreciated value.

c) All fixed assets are capitalised at cost inclusive of expenses.

d) Depreciation on Fixed Assets is calculated on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

e) Expenses for issue of equity shares made by the company during the year 1989-90 and for the Rights Issue made during the year 1992-93 are written-off over a period of 10 years and proportionate Expenditure has been written-off during the year.

f) Sales/Income is case of contract and orders to be executed over a period of financial year are booked on the basis of running bills based on completed work.


Mar 31, 1993

Depreciation on Fixed Assets is calculated on Straight Line Method at rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

Inventories Raw materials, stores and spares and work in progress at cost. Finished Goods at contract price. Tools and Tackless at depreciated value.

All fixed assets are capitalised at cost inclusive of expenses.


Mar 31, 1992

Depreciation on Fixed Assets is provided under the Straight Line Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

Inventories Raw materials, stores and spares and work in progress at cost. Finished Goods at contract price. Tools and Tackless at depreciated value.

All fixed assets are capitalised at cost inclusive of expenses.


Mar 31, 1991

Depreciation on Fixed Assets is provided on Straight Line Method at rates prescribed in Schedule XIV of the Companies Act, 1956.

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