Mar 31, 2016
1. Corporate Information
(a) Kalindee Rail Nirman (Engineers) Ltd. (âthe Companyâ) is a public listed company registered under the erstwhile Companies Act, 1956 (superseded by Companies Act, 2013). The Company is in the business of construction, installation and setting up infrastructure for rail transport within and outside India.
(b) The Company''s principal place of business is located at ''2nd Floor, Building No. 9A, Cyber City, DLF Phase-III, Gurgaon - 122002'', India.
(c) These financial statements are presented in Indian Rupees ('').
(d) The Company has filed with the Honâble High Court at New Delhi on 24th April 2015 for merger with Texmaco Rail & Engineering Ltd. The merger scheme has already been approved by the Stock Exchange.
2. Significant accounting policies
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies Act 2013, read together with Rule 7 of the Companies (Accounts) Rules 2014. The financial statements have been prepared on an accrual basis and under the historical cost convention.
2.2 Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles in Indian (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and the result of operations during the year. Differences between actual results and estimates are recognized in the year in which the results are known or materialized. Examples of such estimates are estimated useful life of assets, classification of assets/liabilities as current or non-current in certain circumstances, provision for doubtful receivables and retirement benefits, etc. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.
2.3 Fixed assets
Tangible fixed assets
Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. Historical cost comprises the purchase price (net of cenvat / duty credits wherever applicable) and all direct costs attributable to bringing the asset to its working condition for intended use.
Intangible fixed assets
Capital expenditure on purchase and development of identifiable non-monetary assets without physical substance is recognized as intangible assets in accordance with principles given under AS-26 - Intangible assets. These are grouped and separately shown under the schedule of fixed assets. These are amortized over their respective expected useful lives.
2.4 Depreciation / amortization
Tangible fixed assets
Depreciation on fixed assets is provided on the basis of useful life of assets at the rates prescribed in Schedule
II to the Companies Act, 2013 on straight line basis with no residual value . All assets costing ? 5,000 or below are fully depreciated in the year of addition.
Intangible fixed assets
Intangible assets are amortized over a period not exceeding five years on a straight-line basis.
2.5 Impairment
The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assetâs net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.
Previously recognized impairment losses are reversed to the extent the recoverable amount exceeds the carrying amount.
2.6 Borrowing cost
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
2.7 Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long-term investments are carried at cost individually. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments in case of long term investments.
2.8 Inventories
Raw material, stores and spares are valued at lower of cost and net realizable value. Stock of materials at project site has been done after providing for obsolescence, if any, at lower of cost or net realizable value. The valuation of work-in-progress during the period is determined as the aggregate of opening work-in-progress, cost of construction and construction overheads incurred during the year as reduced by cost of work completed.
2.9 Revenue recognition
(a) Revenue from construction contracts in accordance with Accounting Standard - 7 on âConstruction Contractsâ is recognized using the percentage of completion method. Percentage of completion method is determined as a proportion of cost incurred to date to the total estimated contract cost. Where the total cost of contract, based on technical and other estimates, is expected to exceed the corresponding contract value, such excess is provided during the year. For this purpose total contract costs are ascertained on the basis of actual costs incurred and costs to be incurred for completion of contract in progress, which is arrived at by the management based on the current technical data, forecasts and estimate of expenditure to be incurred in the future including contingencies. Revision in projected profit and loss arising from change in estimates are reflected in each accounting period which however cannot be disclosed separately in the financial statements as the effect thereof cannot be determined accurately. The income on account of claims / extra item works are recognized to the extent company expects reasonable certainty about receipts or acceptance from the client.
(b) In some old projects where substantial contract revenue has already been recognized in earlier periods, revenue is recognized as per Accounting Standard -9 "Revenue Recognition" where income from operations is determined and recognized, based on the bills raised on technical evaluation of work executed based on joint inspection with customers including railways. The income on account of claims/extra item works are recognized to the extent company expects reasonable certainty about receipts or acceptances from the client. The figures has been taken as per the management working on the basis of the work completed.
(c) Interest income is recognized on time basis and is determined by the amount outstanding and rate applicable.
(d) Dividend income is recognized as and when right to receive payment is established.
(e) Rental income / lease rentals are recognized on accrual basis in accordance with the terms of agreements.
(f) Insurance and other claims are accounted for as and when admitted by the appropriate authorities in view of uncertainty involved in ascertainment of final claim.
(g) The company is in the business of engineering, procurement and construction. The contract awarded to the company are on lump sum price basis and the price is inclusive of all taxes and duties. The turnover of the company hence includes the taxes and duties.
2.10 Leases
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.
Assets acquired under leases where the Company has substantially all the risks and rewards of ownership are classified as finance leases. Such assets are capitalized at the inception of the lease at the lower of the fair value or the present value of minimum lease payments and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of interest on the outstanding liability for each period.
Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease income is recognized in the statement of profit and loss on a straight-line basis over the lease term. Costs, including depreciation are recognized as an expense in the statement of profit and loss. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
Assets given under a finance lease are recognized as a receivable at an amount equal to the net investment in the lease. Lease income is recognized over the period of the lease so as to yield a constant rate of return on the net investment in the lease. Initial direct costs relating to assets given on finance leases are charged to Statement of Profit and Loss.
2.11 Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
Joint venture interests accounted as above, other than investments in incorporated jointly controlled entities, are included in the segments to which they relate.
For smooth execution of the projects, the company has entered into various joint ventures which comes under the purview of joint control operations. The proportionate financials of the joint ventures has already been incorporated in the financial statements of the company.
2.13 Foreign exchange transactions and forward contracts
(a) Initial recognition
Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.
(b) Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.
The financial transactions of an integral foreign operation are translated using the exchange rates as if all its transactions had been entered into by the reporting enterprise itself.
(c) Exchange Differences
Exchange differences arising on a monetary item that, in substance, form part of the company''s net investment in a non-integral foreign operation is accumulated in a foreign currency translation reserve in the financial statements until the disposal of the net investment, at which time they are recognized as income or as an expense.
Exchange differences arising on the settlement of monetary items not covered above, or on reporting such monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.
(d) Forward exchange contracts not intended for trading or speculation purposes
The premium or discount arising at the inception of forward exchange contracts is amortized as expense or income over the life of the contract. Exchange differences on such contracts are recognized in the statement of profit and loss in the year in which the exchange rates change. Any profit or loss arising on cancellation or renewal of forward exchange contract is recognized as income or as expense for the year.
2.14 Employee benefits
(a) Short-term employee benefits
The Employee benefits payable only within 12 months of rendering the services are classified as short-term employee benefits. Benefits such as salaries, leave travel allowance, short-term compensated absences, etc. and the expected cost of bonus are recognized in the period in which the employee renders the related services.
(b) Post employment benefits
Defined contribution plan : The Company has contributed to state governed Provident Fund Scheme, and Employee Pension Scheme which are Defined Contribution Plans. Contribution paid or payable under the Schemes is recognized during the period in which employee renders the related service.
Defined benefit plan : The Companyâs gratuity scheme is a defined benefit plan. The present value of the obligation under such defined benefit plan is determined based on actuarial valuation carried out by an independent actuary, using the Projected unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The Company has an Employee Gratuity Fund managed by SBI Life Insurance Company. The provision made during the year is charged to profit and loss account.
(c) Other long-term employee benefits
Benefits under the Companyâs leave encashment constitute other long term employee benefits, recognized as an expense in the statement of profit and loss for the period in which the employee has rendered services. Estimated liability on account of these benefits is actuarially determined based on the projected unit credit method using the yield on government bonds, as on the date of the balance sheet, as the discounting rate. Actuarial gains and losses are charged to the Statement of profit and loss.
2.15 Taxation
Income tax expense comprises current tax, deferred tax charge or credit. Current tax provision is made based on the tax liability computed after considering tax allowances and exemptions under the Income tax Act, 1961.
The deferred tax charge or credit and the corresponding deferred tax liability and assets are recognized using the tax rates that have been enacted or substantively enacted on the balance sheet date. Deferred tax assets are recognized only to the extent where there is reasonable certainty that the assets can be realized in future; however, where there is unabsorbed depreciation or carried forward business loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date to reassess their reliability.
Deferred tax consequences of timing differences that originate in the tax holiday period and reverse after the tax holiday period are recognized in the period in which the timing differences originate.
2.16 Provisions and contingent liabilities
The Company recognizes a provision when there is a present obligation as a result of a past event and it is more likely than not that there will be a outflow of resources embodying economic benefits to settle such obligations and the amount of such obligation can be reliably estimated. Provisions are not discounted to their present value and are determined based on the managementâs estimation of the outflow required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates. Contingent liabilities are disclosed in respect of possible obligations that have arisen from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of future events, not wholly within the control of the Company. When there is an obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
2.17 Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less.
2.18 Segment reporting Identification of segments:
The companyâs operating business are organized and managed separately according to the nature of products manufactured and services provided, with each segment representing a strategic business unit that offers different products.
Allocation of common costs:
Common allocable costs are allocated to each segment on reasonable basis.
Unallocated Items:
Unallocable assets & liabilities represent the assets & liabilities not allocable to any segment as identified as per the Accounting Standard.
Segment Policies:
The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.
Mar 31, 2015
1. Corporate Information
(a) Kalindee Rail Nirman (Engineers) Ltd. ('the Company') is a public
listed company registered under the erstwhile Companies Act, 1956
(superseded by Companies Act, 2013). The Company is in the business of
construction, installation and setting up infrastructure for rail
transport within and outside India.
(b) The Company's principal place of business is located at '2nd Floor,
Building No. 9A, Cyber City, DLF Phase-III, Gurgaon - 122002', India.
(c) These financial statements are presented in Indian Rupees (Rs.)
(d) The Company has filed with the Hon'ble High Court at New Delhi on
24th April 2015 for merger with Texmaco Rail & Engineering Ltd. The
merger scheme has already been approved by the Stock Exchange.
2.1 Basis of preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. Pursuant to section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014, till the standards of accounting or any addendum thereto are
prescribed by Central Government in consultation and recommendation of
the National Financial Reporting Authority, the existing accounting
standards notified under the erstwhile Companies Act, 1956 shall
continue to apply. Consequently, these financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) {Companies (Accounting
Standards) Rules, 2006 as amended} and other relevant provisions of the
Companies Act, 2013.
2.2 Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles in India (GAAP) requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent liabilities on
the date of the financial statements and the result of operations
during the year. Differences between actual results and estimates are
recognised in the year in which the results are known or materialised.
Examples of such estimates are estimated useful life of assets,
classification of assets/liabilities as current or non-current in
certain circumstances, provision for doubtful receivables and
retirement benefits, etc. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
2.3 Fixed assets
Tangible fixed assets
Fixed assets are stated at historical cost less accumulated
depreciation and impairment loss if any. Historical cost comprises the
purchase price (net of cenvat / duty credits wherever applicable) and
all direct costs attributable to bringing the asset to its working
condition for intended use.
Intangible fixed assets
Capital expenditure on purchase and development of identifiable
non-monetary assets without physical substance is recognized as
intangible assets in accordance with principles given under AS-26 Â
Intangible assets. These are grouped and separately shown under the
schedule of fixed assets. These are amortized over their respective
expected useful lives.
2.4 Depreciation / amortisation
Tangible fixed assets
Depreciation on fixed assets is provided on the basis of useful life of
assets at the rates prescribed in Schedule
II to the Companies Act, 2013. All assets costing Rs. 5,000 or below are
fully depreciated in the year of addition.
Intangible fixed assets
Intangible assets are amortized over a period not exceeding five years
on a straight-line basis.
2.5 Impairment
The carrying amounts of assets are reviewed at each balance sheet date
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the asset's net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital. After
impairment,depreciation isprovided on the revised carrying amountof the
assetover its remaining useful life. Previously recognised impairment
losses are reversed to the extent the recoverable amount exceeds the
carrying amount.
2.6 Borrowing cost
Borrowing costs directly attributable to the acquisition, construction
or production of an asset that necessarily takes a substantial period
of time to get ready for its intended use or sale are capitalized as
part of the cost of the respective asset. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest
and other costs that an entity incurs in connection with the borrowing
of funds.
2.7 Investments
Investments that are readily realizable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investments. Current
investments are carried at lower of cost and fair value. Long-term
investments are carried at cost individually. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of the investments in case of long term investments.
2.8 Inventories
Raw Material, stores and spares are valued at lower of Cost and Net
Realisable Value. Stock of materials at project site has been done
after providing for obsolescence, if any, at lower of Cost or Net
Realizable Value. The valuation of work-in-progress during the period
is determined as the aggregate of opening work-in-progress, cost of
construction and construction overheads incurred during the year as
reduced by cost of work completed.
2.9 Revenue recognition
(a) Income from operations is determined and recognized, based on the
bills raised on technical evaluation of work executed based on joint
inspection with customers including railways. The income on account of
claims / extra item works are recognized to the extent company expects
reasonable certainty about receipts or acceptance from the client. The
figures has been taken as per the management working on the basis of
the work completed.
(b) Interest income is recognized on time basis and is determined by
the amount outstanding and rate applicable.
(c) Dividend income is recognized as and when right to receive payment
is established.
(d) Rental income / lease rentals are recognized on accrual basis in
accordance with the terms of agreements.
(e) Insurance and other claims are accounted for as and when admitted
by the appropriate authorities in view of uncertainty involved in
ascertainment of final claim.
2.10 Leases
Where the Company is the lessee
Leases where the lessor effectively retains substantially all the risks
and benefits of ownership of the leased item, are classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of profit and loss on a straight-line basis over the
lease term. Where the Company is the lessor
Assets subject to operating leases are included in fixed assets. Lease
income is recognised in the statement of profit and loss on a
straight-line basis over the lease term. Costs, including depreciation
are recognised as an expense in the statement of profit and loss.
Initial direct costs such as legal costs, brokerage costs, etc. are
recognised immediately in the statement of profit and loss.
2.11 Accounting for interests in Joint Ventures
Interests in joint ventures are accounted as follows:
Joint venture interests accounted as above, other than investments in
incorporated jointly controlled entities, are included in the segments
to which they relate.
2.12 Foreign exchange transactions and forward contracts
(a) Initial recognition Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency
at the date of the transaction.
(b) Conversion Foreign currency monetary items are reported using the
closing rate. Non-monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction; and non-monetary
items which are carried at fair value or other similar valuation
denominated in a foreign currency are reported using the exchange rates
that existed when the values were determined.
(c) Exchange Differences Exchange differences arising on a monetary
item that, in substance, form part of the company's net investment in a
non-integral foreign operation is accumulated in a foreign currency
translation reserve in the financial statements until the disposal of
the net investment, at which time they are recognized as income or as
an expense. Exchange differences arising on the settlement of monetary
items not covered above, or on reporting such monetary items of company
at rates different from those at which they were initially recorded
during the year, or reported in previous financial statements, are
recognized as income or as expenses in the year in which they arise.
(d) Forward exchange contracts not intended for trading or speculation
purposes The premium or discount arising at the inception of forward
exchange contracts is amortized as expense or income over the life of
the contract. Exchange differences on such contracts are recognized in
the statement of profit and loss in the year in which the exchange
rates change. Any profit or loss arising on cancellation or renewal of
forward exchange contract is recognized as income or as expense for the
year.
2.13 Employee benefits
(a) Short-term employee benefits The Employee benefits payable only
within 12 months of rendering the services are classified as short-term
employee benefits. Benefits such as salaries, leave travel allowance,
short-term compensated absences, etc., and the expected cost of bonus
are recognized in the period in which the employee renders the related
services.
(b) Post employment benefits Defined contribution plan: The Company has
contributed to state governed Provident Fund Scheme, and Employee
Pension Scheme which are Defined Contribution Plans. Contribution paid
or payable under the Schemes is recognized during the period in which
employee renders the related service. Defined benefit plan: The
Company's gratuity scheme is a defined benefit plan. The present value
of the obligation under such defined benefit plan is determined based
on actuarial valuation carried out by an independent actuary, using the
Projected unit Credit Method, which recognises each period of service
as giving rise to additional unit of employee benefit entitlement and
measures each unit separately to build up the final obligation. The
Company has an Employee Gratuity Fund managed by SBI Life Insurance
Company. The provision made during the year is charged to profit and
loss account.
(c) Other long-term employee benefits Benefits under the Company's
leave encashment constitute other long term employee benefits,
recognised as 53 31st Annual Report 2014 - 2015 © an expense in the
statement of profit and loss for the period in which the employee has
rendered services. Estimated liability on account of these benefits is
actuarially determined based on the projected unit credit method using
the yield on government bonds, as on the date of the balance sheet, as
the discounting rate. Actuarial gains and losses are charged to the
Statement of profit and loss.
2.14 Taxation
Income tax expense comprises current tax, deferred tax charge or
credit. Current tax provision is made based on the tax liability
computed after considering tax allowances and exemptions under the
Income tax Act, 1961. The deferred tax charge or credit and the
corresponding deferred tax liability and assets are recognised using
the tax rates that have been enacted or substantively enacted on the
balance sheet date. Deferred tax assets are recognised only to the
extent where there is reasonable certainty that the assets can be
realised in future; however, where there is unabsorbed depreciation or
carried forward business loss under taxation laws, deferred tax assets
are recognised only if there is a virtual certainty of realisation of
such assets. Deferred tax assets are reviewed at each balance sheet
date to reassess their realisability. Deferred tax consequences of
timing differences that originate in the tax holiday period and reverse
after the tax holiday period are recognised in the period in which the
timing differences originate.
2.15 Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
2.16 Provisions and contingent liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event and it is more likely than not that there
will be a outflow of resources embodying economic benefits to settle
such obligations and the amount of such obligation can be reliably
estimated. Provisions are not discounted to their present value and are
determined based on the management's estimation of the outflow required
to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect current management
estimates. Contingent liabilities are disclosed in respect of possible
obligations that have arisen from past events and the existence of
which will be confirmed only by the occurrence or non-occurrence of
future events, not wholly within the control of the Company. When there
is an obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
2.17 Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposits with
banks, other short-term highly liquid investments with original
maturities of three months or less.
2.18 Segment reporting
Identification of segments:
The company's operating business are organized and managed separately
according to the nature of products manufactured and services provided
, with each segment representing a strategic business unit that offers
different products.
Allocation of common costs:
Common allocable costs are allocated to each segment on reasonable
basis.
Unallocated Items:
Unallocable assets & liabilities represent the assets & liabilities not
allocable to any segment as identified as per the Accounting Standard.
Mar 31, 2013
1. Basis for preparation of Financial Statements:
The Financial Statements are prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
generally accepted accounting principles in India and comply with the
Accounting Standards prescribed by the Companies (Accounting Standards)
Rules 2006, to the extent applicable and in accordance with the
Provisions of the Companies Act, 1956.
2. Use of Estimates:
Preparation of Financial Statements in conformity with Generally
Accepted Accounting Principles required company Management to make
estimates and assumptions that affect reported balance of assets &
liabilities and disclosures relating to contingent assets & liabilities
as of the date of Financials and reported amounts of income & expenses
during the period. Examples of such estimate include Revenues and
Profits expected to be earned on projects carried on by the company,
contract costs expected to be incurred for completion of project,
provision for doubtful debts, income taxes, etc. Actual results could
differ from these estimates. Differences, if any, between the actual
results and estimates are recognized in the period in which the results
are known or materialized.
3. Expenditure:
Expenses are accounted on the accrual basis and provisions are made for
all known losses and liabilities except for Bonus which is accounted
for on cash basis.
4. Valuation of Inventories
Valuation of Inventories, representing stock of materials at project
site has been done after providing for obsolescence, if any, at lower
of Cost or Net Realizable Value. The valuation of work-in-progress
during the period is determined as the aggregate of opening work-in-
progress, cost of construction and construction overheads incurred
during the year as reduced by cost of work completed.
5. Cash Flow Statement:
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, financing and
investing activities of the company are segregated
6. Events occurring after the date of Balance Sheet:
Materials events occurring after the date of Balance Sheet are taken
into cognizance.
7. Depreciation:
Depreciation in respect of fixed assets, is provided adopting straight
line method at the rates provided under Schedule XIV to the Companies
Act, 1956.
8. Revenue Recognition:
* Income from operations is determined and recognized, based on the
bills raised on technical evaluation of work executed based on joint
inspection with customers including railways. The income on account of
claims / extra item works are recognized to the extent company expects
reasonable certainty about receipts or acceptance from the client. In
case of quarterly results the figures has been taken as per the
management working on the basis of the work completed
* Interest income is recognized on time basis and is determined by the
amount outstanding and rate applicable.
* Dividend income is recognized as and when right to receive payment is
established.
* Rental income / lease rentals are recognized on accrual basis in
accordance with the terms of agreements.
9. Fixed Assets:
Fixed assets are stated at cost of acquisition including directly
attributable costs for bringing the asset into use, less accumulated
depreciation.
10. Foreign Currency Transaction:
Foreign currency transactions are restated at the rates ruling at the
time of receipt / payment and all exchange losses / gains arising there
from are adjusted to the respective accounts. All monetary items
denominated in foreign currency are converted at the rates prevailing
on the date of the Financial Statement.
11. Investments:
There were no investment at year end.
12. Employee Benefits:
a) Short-Term Employee Benefits:
The Employee benefits payable only within 12 months of rendering the
services are classified as Short-Term Employee Benefits. Benefits such
as salaries, leave travel allowance, short-term compensated absences,
etc., and the expected cost of bonus are recognized in the period in
which the employee renders the related services.
b) Post Employment Benefits:
i) Defined Contribution Plans:
The company has contributed to state governed Provident Fund Scheme,
and Employee Pension Scheme which are Defined Contribution Plans.
Contribution paid or payable under the Schemes is recognized during the
period in which employee renders the related service.
ii) Defined Benefit Plans:
The Employees' Gratuity is a Defined Benefit Plan. The present value of
the obligation under such plan is determined based on the actuarial
valuation using the projected unit credit method which recognized each
period of service as giving rise to an additional unit of employee
benefit entitlement and measures each unit separately to build up the
financial obligation. The company has an Employee Gratuity Fund managed
by SBI Life Insurance company. The provision made during the year is
charged to Profit and Loss Account.
Liability in respect of leave encashment is provided for on actuarial
basis using the projected unit credit method same as above.
13. Borrowing Costs:
Cost of funds borrowed for acquisition of fixed assets up to the date
the asset is put to use is added to the value of the assets.
14. Cash and Bank Balances:
Cash & Bank balances also include fixed deposits, margin money
deposited, earmarked balances and other bank balances which have
restriction on repatriation.
15. Earning per Share:
Basic Earning per Share is computed by dividing net income for the year
by the weighted average number of equity shares outstanding during the
period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
16. Provision for Taxation:
Deferred Tax is recognized, subject to the consideration of prudence,
in respect of deferred tax assets or liabilities, on timing
differences, being the difference between taxable incomes and
accounting incomes that originate in one period and are reversible in
one or more subsequent periods.
17. Accounting for interest in joint ventures:
Interest in joint ventures jointly controlled, company's raises its
bill for work done by the company for JV and the same is taken as
turnover receipt, and payments are included in respective expenses.
18. Operating cycle for current and non-current classification:
Operating cycle for the business activities of the company covers the
duration of the specific project/contract/service including the defect
liability period, wherever applicable and extends up to the realization
of receivables (including retention monies) within the agreed credit
period normally applicable to the respective lines of business.
19. Provision and Contingent Liabilities:
Provision is recognized when an enterprise has a present obligation as
a result of past event and 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 determined based on
management estimates required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimate. Where no reliable estimate
can be made, a disclosure is made as contingent liability. A disclosure
for a contingent liability is also made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Mar 31, 2012
1. Basis for preparation of Financial Statements:
The Financial Statements are prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
generally accepted accounting principles in India and comply with the
Accounting Standards prescribed by the Companies (Accounting Standards)
Rules 2006, to the extent applicable and in accordance with the
Provisions of the Companies Act, 1956.
2. Use of Estimates:
Preparation of Financial Statements in conformity with Generally
Accepted Accounting Principles required Company Management to make
estimates and assumptions that affect reported balance of assets &
liabilities and disclosures relating to contingent assets & liabilities
as of the date of Financials and reported amounts of income & expenses
during the period. Examples of such estimate include Revenues and
Profits expected to be earned on projects carried on by the Company,
contract costs expected to be incurred for completion of project,
provision for doubtful debts, in come taxes, etc. Actual results could
differ from these estimates. Differences, if any, between the actual
results and estimates are recognized in the period in which the results
are known or materialized.
3. Expenditure:
Expenses are accounted on the accrual basis and provisions are made for
all known losses and liabilities except for Bonus which is accounted
for on cash basis.
4. Valuation of Inventories
Valuation of Inventories, representing stock of materials at project
site has been done after providing for obsolescence, if any, at lower
of Cost or Net Realizable Value. The valuation of work-in-progress
during the period is determined as the aggregate of opening
work-in-progress, cost of construction and construction overheads
incurred during the year as reduced by cost of work completed.
5. Cash Flow Statement:
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, financing
and investing activities of the Company are segregated.
6. Events occurring after the date of Balance Sheet:
Materials events occurring after the date of Balance Sheet are taken
into cognizance.
7. Depreciation:
Depreciation in respect of fixed assets, is provided adopting straight
line method at the rates provided under Schedule XIV to the Companies
Act, 1956.
8. Revenue Recognition:
- Income from operations is determined and recognized, based on the
bills raised on technical evaluation of work executed based on joint
inspection with customers including railways. The income on account of
claims / extra item works are recognized to the extent company expects
reasonable certainty about receipts or acceptance from the client.
- Interest income is recognized on time basis and is determined by
the amount outstanding and rate applicable.
- Dividend income is recognized as and when right to receive payment
is established.
- Rental income / lease rentals are recognized on accrual basis in
accordance with the terms of agreements.
9. Fixed Assets:
Fixed assets are stated at cost of acquisition including directly
attributable costs for bringing the asset into use, less accumulated
depreciation.
10. Foreign Currency Transaction:
Foreign currency transactions are restated at the rates ruling at the
time of receipt / payment and all exchange losses / gains arising there
from are adjusted to the respective accounts. All monetary items
denominated in foreign currency are converted at the rates prevailing
on the date of the Financial Statement.
11. Investments:
There were no investment atyear end.
12. Employee Benefits:
a) Short-Term Employee Benefits:
The Employee benefits payable only within 12 months of rendering the
services are classified as Short-Term Employee Benefits. Benefits such
as salaries, leave travel allowance, short-term compensated absences,
etc., and the expected cost of bonus are recognized in the period in
which the employee renders the related services.
b) Post Employment Benefits:
i) Defined Contribution Plans:
The Company has contributed to state governed Provident Fund Scheme,
and Employee Pension Scheme which are Defined Contribution Plans.
Contribution paid or payable under the Schemes is recognized during the
period in which employee renders the related service.
ii) Defined Benefit Plans:
The Employees' Gratuity is a Defined Benefit Plan. The present value of
the obligation under such plan is determined based on the actuarial
valuation using the projected unit credit method which recognized each
period of service as giving rise to an additional unit of employee
benefit entitlement and measures each unit separately to build up the
financial obligation. The Company has an Employee Gratuity Fund managed
by SBI Life Insurance Company. The provision made during the year is
charged to Profit and Loss Account.
Liability in respect of leave encashment is provided for on actuarial
basis using the projected unit credit method same as above.
13. Borrowing Costs:
Cost of funds borrowed for acquisition of fixed assets up to the date
the asset is put to use is added to the value of the assets.
14. Cash and Bank Balances:
Cash & Bank balances also include fixed deposits, margin money
deposited, earmarked balances and other bank balances which have
restriction on repatriation
15. Earning per Share:
Basic Earning per Share is computed by dividing net income for the year
by the weighted average number of equity shares outstanding during the
period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
16. Provision for Taxation:
Deferred Tax is recognized, subject to the consideration of prudence,
in respect of deferred tax assets or liabilities, on timing
differences, being the difference between taxable incomes and
accounting incomes that originate in one period and are reversible in
one or more subsequent periods.
17. Accounting for interest in joint ventures:
Interest in joint ventures jointly controlled, Company's raises its
bill for work done by the company for JV and the same is taken as
turnover receipt, and payments are included in respective expenses.
18. Operating cycle for current and non-current classification:
Operating cycle for the business activities of the company covers the
duration of the specific project/contract/service including the defect
liability period, wherever applicable and extends up to the realization
of receivables (including retention monies) within the agreed credit
period normally applicable to the respective lines of business
19. Provision and Contingent Liabilities:
Provision is recognized when an enterprise has a present obligation as
a result of past event and 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 determined based on
management estimates required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimate. Where no reliable estimate
can be made, a disclosure is made as contingent liability. A disclosure
for a contingent liability is also made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made
Mar 31, 2011
1. Basis for preparation of Financial Statements:
The Financial Statements are prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
generally accepted accounting principles in India and comply with the
Accounting Standards prescribed by the Companies (Accounting Standards)
Rules 2006, to the extent applicable and in accordance with the
Provisions of the Companies Act, 1956.
2. Use of Estimates:
Preparation of Financial Statements in conformity with Generally
Accepted Accounting Principles required Company Management to make
estimates and assumptions that affect reported balance of assets &
liabilities and disclosures relating to contingent assets & liabilities
as of the date of Financials and reported amounts of income & expenses
during the period. Examples of such estimate include Revenues and
Profits expected to be earned on projects carried on by the Company,
contract costs expected to be incurred for completion of project,
provision for doubtful debts, income taxes, etc.Actual results could
differ from these estimates. Differences, if any, between the actual
results and estimates are recognized in the period in which the results
are known or materialized.
3. Expenditure:
Expenses are accounted on the accrual basis and provisions are made for
all known losses and liabilities except for Bonus which is accounted
for on cash basis.
4. Valuation of Inventories
Valuation of Inventories, representing stock of materials at project
site has been done after providing for obsolescence, if any, at lower
of Cost or Net Realizable Value. The valuation of work-in-progress
during the period is determined as the aggregate of opening
work-in-progress, cost of construction and construction overheads
incurred during the year as reduced by cost of work completed.
5. Cash Flow Statement:
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments The cash flows from regular revenue generating, financing and
investing activities of the Company are segregated.
6. Events occurring after the date of Balance Sheet:
Materials events occurring after the date of Balance Sheet are taken
into cognizance.
7. Depreciation:
Depreciation in respect of fixed assets, is provided adopting straight
line method at the rates provided under Schedule XIV to the Companies
Act, 1956.
8. Revenue Recognition:
- Income from operations is determined and recognized, based on the
bills raised on technical evaluation of work executed based on joint
inspection with customers including railways. The income on account of
claims / extra item works are recognized to the extent company expects
reasonable certainty about receipts or acceptance from the client.
- Interest income is recognized on time basis and is determined by the
amount outstanding and rate applicable.
- Dividend income is recognized as and when right to receive payment is
established.
- Rental income / lease rentals are recognized on accrual basis in
accordance with the terms of agreements.
9. Fixed Assets:
Fixed assets are stated at cost of acquisition including directly
attributable costs for bringing the asset into use, less accumulated
depreciation.
10. Foreign Currency Transaction:
Foreign currency transactions are restated at the rates ruling at the
time of receipt / payment and all exchange losses / gains arising
therefrom are adjusted to the respective accounts. All monetary items
denominated in foreign currency are converted at the rates prevailing
on the date of the Financial Statement.
11. Investments:
There were no investment at year end.
12. Employee Benefits:
a) Short-Term Employee Benefits:
The Employee benefits payable only within 12 months of rendering the
services are classified as Short-Term Employee Benefits. Benefits such
as salaries, leave travel allowance, short-term compensated absences,
etc., and the expected cost of bonus are recognized in the period in
which the employee renders the related services.
b) Post Employment Benefits:
i) Defined Contribution Plans:
The Company has contributed to state governed Provident Fund Scheme,
and Employee Pension Scheme which are Defined Contribution Plans.
Contribution paid or payable under the Schemes is recognized during the
period in which employee renders the related service.
ii) Defined Benefit Plans:
The Employees' Gratuity is a Defined Benefit Plan. The present value of
the obligation under such plan is determined based on the actuarial
valuation using the projected unit credit method which recognized each
period of service as giving rise to an additional unit of employee
benefit entitlement and measures each unit separately to build up the
financial obligation. The Company has an Employee Gratuity Fund managed
by SBI Life Insurance Company. The provision made during the year is
charged to Profit and Loss Account.
Liability in respect of leave encashment is provided for on actuarial
basis using the projected unit credit method same as above.
13. Borrowing Costs:
Cost of funds borrowed for acquisition of fixed assets up to the date
the asset is put to use is added to the value of the assets.
14. Earning per Share:
Basic Earning per Share is computed by dividing net income for the year
by the weighted average number of equity shares outstanding during the
period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
15. Provision for Taxation:
Deferred Tax is recognized, subject to the consideration of prudence,
in respect of deferred tax assets or liabilities, on timing
differences, being the difference between taxable incomes and
accounting incomes that originate in one period and are reversible in
one or more subsequent periods.
16. Provision and Contingent Liabilities:
Provision is recognized when an enterprise has a present obligation as
a result of past event and 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 determined based on
management estimates required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimate. Where no reliable estimate
can be made, a disclosure is made as contingent liability. A disclosure
for a contingent liability is also made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Mar 31, 2010
1. Basis for preparation of Financial Statements:
The Financial Statements are prepared under the historical cost
convention, on the accrual basis of accounting and in accordance with
generally accepted accounting principles in India and comply with the
Accounting Standards prescribed by the Companies (Accounting Standards)
Rules 2006, to the extent applicable and in accordance with the
Provisions of the Companies Act, 1956.
2. Use of Estimates:
Preparation of Financial Statements in conformity with Generally
Accepted Accounting Principles required Company Management to make
estimates and assumptions that affect reported balance of assets &
liabilities and disclosures relating to contingent assets & liabilities
as of the date of Financials and reported amounts of income & expenses
during the period. Examples of such estimate include Revenues and
Profits expected to be earned on projects carried on by the Company,
contract costs expected to be incurred for completion of project,
provision for doubtful debts, income taxes, etc. Actual results could
differ from these estimates. Differences, if any, between the actual
results and estimates are recognized in the period in which the results
are known or materialized.
3. Expenditure:
Expenses are accounted on the accrual basis and provisions are made for
all known losses and liabilities.
4. Valuation of Inventories
Valuation of Inventories, representing stock of materials at project
site has been done after providing for obsolescence, if any, at lower
of Cost or Net Realizable Value. The valuation of work-in-progress
during the period is determined as the aggregate of opening
work-in-progress, cost of construction and construction overheads
incurred during the year as reduced by cost of work completed.
5. Cash Flow Statement:
Cash Flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular revenue generating, financing
and investing activities of the Company are segregated.
6. Events occurring after the date of Balance Sheet:
Materials events occurring after the date of Balance Sheet are taken
into cognizance.
7. Depreciation:
Depreciation in respect of fixed assets, is provided adopting straight
line method at the rates provided under Schedule XIV to the Companies
Act, 1956.
8. Revenue Recognition:
- Income from operations is determined and recognized, based on the
bills raised on technical evaluation of work executed based on joint
inspection with customers including railways. The income on account of
claims/extra item works are recognized to the extent company expects
reasonable certainty about receipts or acceptance from the client.
- Interest income is recognized on time basis and is determined by the
amount outstanding and rate applicable.
- Dividend income is recognized as and when right to receive payment is
established.
- Rental income/lease rentals are recognized on accrual basis in
accordance with the terms of agreements.
9. Fixed Assets:
Fixed assets are stated at cost of acquisition including directly
attributable costs for bringing the asset into use, less accumulated
depreciation.
10. Foreign Currency Transaction:
Foreign currency transactions are restated at the rates ruling at the
time of receipt/payment and all exchange losses/gains arising therefrom
are adjusted to the respective accounts. All monetary items denominated
in foreign currency are converted at the rates prevailing on the date
of the Financial Statement.
11. Investments:
There were no investment at year end.
12. Employee Benefits:
(a) Short-Term Employee Benefits:
The Employee benefits payable only within 12 months of rendering the
services are classified as Short- Term Employee Benefits. Benefits such
as salaries, leave travel allowance, short-term compensated absences,
etc., and the expected cost of bonus are recognized in the period in
which the employee renders the related services.
(b) Post Employment Benefits:
(i) Defined Contribution Plans:
The Company has contributed to state governed Provident Fund Scheme,
and Employee Pension Scheme which are Defined Contribution Plans.
Contribution paid or payable under the Schemes is recognized during the
period in which employee renders the related service. (ii) Defined
Benefit Plans:
The Employees Gratuity is a Defined Benefit Plan. The present value of
the obligation under such plan is determined based on the actuarial
valuation using the projected unit credit method which recognized each
period of service as giving rise to an additional unit of employee
benefit entitlement and measures each unit separately to build up the
financial obligation. The Company has an Employee Gratuity Fund managed
by SBI Life Insurance Company. The provision made during the year is
charged to Profit and Loss Account.
Liability in respect of leave encashment is provided for on actuarial
basis using the projected unit credit method same as above.
13. Borrowing Costs:
Cost of funds borrowed for acquisition of fixed assets up to the date
the asset is put to use is added to the value of the assets.
14. Earning per Share:
Basic Earning per Share is computed by dividing net income for the year
by the weighted average number of equity shares outstanding during the
period.
For the purpose of calculating diluted earning per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares.
15. Provision for Taxation:
Deferred Tax is recognized, subject to the consideration of prudence,
in respect of deferred tax assets or liabilities, on timing
differences, being the difference between taxable incomes and
accounting incomes that originate in one period and are reversible in
one or more subsequent periods.
16. Provision and Contingent Liabilities:
Provision is recognized when an enterprise has a present obligation as
a result of past event and 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 determined based on
management estimates required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimate. Where no reliable estimate
can be made, a disclosure is made as contingent liability. A disclosure
for a contingent liability is also made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Where there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
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