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Accounting Policies of MBL Infrastructures Ltd. Company

Mar 31, 2016

a. Basis of Preparation of Financial Statements

(i) The financial statements have been prepared under the historical cost convention and in accordance with the generally accepted accounting principles in India including the accounting standard notified under the provisions of the Companies act, 2013.

(ii) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

b. Use of Estimates

the preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of income and expenses and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

(i) In respect of construction/ project related activity, the Company follows percentage of completion method. Percentage of completion is determined by survey of work performed / physical measurement of work actually completed at the balance sheet date taking into account contractual price/ unit rates and revision thereto.

(ii) Revenue in respect of claims is recognized to the extent the Company is reasonably certain of their realization.

(iii) Other operational income is recognized on rendering of related services, as per the terms of the contracts.

(iv) Other items of income are accounted as and when the right to receive arises.

d. Fixed Assets, Depreciation and Amortization

(i) Fixed assets are stated at their original cost. Cost includes acquisition price, attributable expenses and pre-operational expenses. Fixed assets retired from active use are valued at net realizable value.

(ii) Depreciation on fixed assets is provided based on useful life of the assets as prescribed in Schedule II to the Companies act, 2013. In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

(iii) Assets acquired on equipment finance (hire purchase) are stated at their cash values.

(iv.) Lease hold land, if any, is amortized over the period of lease.

e. Investments

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

f. Foreign Currency Transactions

(i) The reporting currency of the Company is the Indian Rupee.

(ii) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(iii) Monetary items denominated in foreign currencies, if any, at the end of the year are restated at year end rates.

(iv). Non monetary foreign currency items are carried at cost.

(v) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the statement of profit and loss.

g. Financial Derivatives & Hedging transactions

(i) the Company uses foreign currency forward contracts to hedge foreign currency risk arising from future transactions in respect of which firm commitments are made or which are highly probable forecast transactions. the Company designates these forward contracts in a hedging relationship by applying the hedge accounting principles of AS-30, Financial Instruments: Recognition and Measurement.

(ii) the Company uses foreign currency forward contracts as hedges of its exposure to foreign currency risk in forecasted transactions and firm commitments. In accordance with the recognition and measurement principles set out in AS-30, gains/losses on mark to market of derivative financial instruments are recognized in the Statement of Profit and Loss. Gains and losses arising on account of rollover/ cancellation of forward contracts are recognized as income/expense of the period in which such rollover/cancellation takes place.

h. Leases

The Company''s significant leasing arrangements are in respect of operating leases for premises and quarries for varying periods and the lease can be renewed as per mutual agreement. The aggregate lease rents payable are charged as rent in the statement of profit and loss. There is no restriction or contingent rent in the lease agreements. All leases are cancellable in nature.

i. Inventories

Construction materials are valued at cost or net realizable value whichever is lower. Cost of inventories is ascertained on FIFO basis.

j. Taxes on Income

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future. The carrying amount of deferred tax assets are reviewed at each balance sheet date. In case of unabsorbed depreciation and losses, deferred tax assets are recognized and carried forward only to the extent there is a virtual certainty that the asset will be adjusted in future.

iii) MAT credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the Minimum Alternative tax (MAT) credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by The Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account and shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

k. Employee Benefits

(i) All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employees render the related services.

(ii) Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss when the contributions to the respective funds are accrued. Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of each financial year. Short term and long term compensated absences are provided for based on actuarial valuation at the year end. Actuarial gains/losses are immediately taken to the Statement of Profit and Loss and are not deferred.

l. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction 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 charged to the Statement of Profit and Loss.

m. Accounting for Joint Venture Contracts

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

(ii) Assets, liabilities and expenditure arising out of contracts executed wholly by the Company pursuant to a joint venture contract are recognized under respective heads in the financial statements. Income from the contract is accounted net of joint venture’s share under income from operations in these financial statements.

(iii) Share of turnover attributable to the Company in respect of contracts executed by the other joint venture partners pursuant to joint venture agreement, is accounted under income from operations in these financial statements.

n. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their ''value in use''. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital.

o. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2014

A. Basis of Preparation of Financial Statements

(i) The financial statements have been prepared under the historical cost convention and in accordance with the generally

accepted accounting principles and the provisions of the Companies Act, 1956. (ii) The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of income and expenses and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

(i) In respect of construction/ project related activity, the Company follows percentage of completion method. Percentage of completion is determined by survey of work performed / physical measurement of work actually completed at the balance Sheet date taking into account contractual price/ unit rates and revision thereto.

(ii) Revenue in respect of claims is recognised to the extent the Company is reasonably certain of their realisation.

(iii) Other operational income is recognised on rendering of related services, as per the terms of the contracts.

(iv) Other items of income are accounted as and when the right to receive arises.

(v) Each contract is recognised as a profit centre. Payments/ reimbursements under the same are grouped under direct and other expenses.

d. Fixed Assets, Depreciation and Amortisation

(i) Fixed assets are stated at their original cost. Cost includes acquisition price, attributable expenses and pre-operational

expenses. Fixed Assets retired from active use are valued at net realisable value. (ii) 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. In case of impairment, if any, depreciation is provided on the revised carrying amount

of the assets over their remaining useful life. (iii) Assets acquired on equipment finance (hire purchase) are stated at their cash values. (iv) Leasehold land,if any, is amortised over the period of lease.

e. Investments

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

f. Foreign Currency Transactions

(i) The reporting currency of the Company is the Indian Rupee.

(ii) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(iii) Monetary items denominated in foreign currencies, if any, at the end of the year are restated at year end rates. (iv) Non monetary foreign currency items are carried at cost. (v) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the statement of profit and loss.

g. Financial Derivatives & Hedging transactions

(i) The company uses derivative financial instruments such as forward exchange contracts, options, currency swaps, etc., to hedge its risks associated with foreign currency fluctuations relating to the underlying transactions.

(ii) Financial derivatives and hedging contracts are accounted on the date of their settlement and realised gain/loss in respect of settled contracts is recognised in the Statement of Profit and Loss along with the underlying transactions.

h. Leases

The Company''s significant leasing arrangements are in respect of operating leases for premises and quarries for varying periods and the lease can be renewed as per mutual agreement. The aggregate lease rents payable are charged as rent in the statement of profit and loss. There is no restriction or contingent rent in the lease agreements. All leases are cancelable in nature.

i. Inventories

Construction materials are valued at cost or net realisable value whichever is lower. Cost of inventories is ascertained on FIFO basis.

j. Taxes on Income

(i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

(ii) Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future. The carrying amount of deferred tax assets are reviewed at each balance sheet date. In case of unabsorbed depreciation and losses, deferred tax assets are recognised and carried forward only to the extent there is a virtual certainty that the asset will be adjusted in future.

k. Employee Benefits

(i) All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employees render the related services.

(ii) Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss when the contributions to the respective funds are accrued. Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of each financial year. Short term and long term compensated absences are provided for based on actuarial valuation at the year end.

Actuarial gains/losses are immediately taken to statement of profit and loss and are not deferred.

l. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction 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 charged to statement of profit and loss.

m. Accounting for Joint Venture Contracts

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

(ii) Assets, liabilities and expenditure arising out of contracts executed wholly by the Company pursuant to a joint venture contract are recognised under respective heads in the financial statements. Income from the contract is accounted net of joint venturer''s share under income from operations in these financial statements.

(iii) Share of turnover attributable to the Company in respect of contracts executed by the other joint venture partners pursuant to joint venture agreement, is accounted under income from operations in these financial statements.

n. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their ''value in use''. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital.

o. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

A. Basis of Preparation of Financial Statements

(i) The financial statements have been prepared under the historical cost convention and in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. (ii) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of income and expenses and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting year end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

(i) In respect of construction/ project related activity, the Company follows percentage of completion method. Percentage of completion is determined by survey of work performed/physical measurement of work actually completed at the Balance Sheet date taking into account contractual price/ unit rates and revision thereto.

(ii) Revenue in respect of claims is recognised to the extent the Company is reasonably certain of their realisation.

(iii) Other operational income is recognised on rendering of related services, as per the terms of the contracts.

(iv) Other items of income are accounted as and when the right to receive arises.

(v) Each contract is recognised as a profit centre. Payments/ reimbursements under the same are grouped under direct and other expenses.

d. Fixed Assets, Depreciation and Amortisation

(i) Fixed assets are stated at their original cost. Cost includes acquisition price, attributable expenses and pre-operational expenses. Fixed Assets retired from active use are valued at net realisable value. (ii) 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. In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life. (iii) Assets acquired on equipment finance (hire purchase) are stated at their cash values. (iv) Leasehold land,if any, is amortised over the period of lease.

e. Investments

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

f. Foreign Currency Transactions

(i) The reporting currency of the Company is the Indian Rupee pf).

(ii) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction. (iii) Monetary items denominated in foreign currencies, if any, at the end of the year are restated at year end rates. (iv) Non monetary foreign currency items are carried at cost. (v) Any income or expense on account of exchange difference either on settlement or on translation is recognised in

the statement of profit and loss.

g. Financial Derivatives & Hedging Transactions

(i) The Company uses derivative financial instruments such as forward exchange contracts, options, currency swaps, etc., to hedge its risks associated with foreign currency fluctuations relating to the underlying transactions.

(ii) Financial derivatives and hedging contracts are accounted on the date of their settlement and realised gain/loss in respect of settled contracts is recognised in the Statement of Profit and Loss along with the underlying transactions. h. Leases

The Company''s significant leasing arrangements are in respect of operating leases for premises and quarries for varying periods and the lease can be renewed as per mutual agreement. The aggregate lease rents payable are charged as rent in the Statement of Profit and Loss. There is no restriction or contingent rent in the lease agreements. All leases are cancelable in nature. i. Inventories Construction materials are valued at cost or net realisable value whichever is lower. Cost of inventories is ascertained on FIFO basis.

j. Taxes on Income

(i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

(ii) Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future. The carrying amount of deferred tax assets are reviewed at each balance sheet date. In case of unabsorbed depreciation and losses, deferred tax assets are recognised and carried forward only to the extent there is a virtual certainty that the asset will be adjusted in future. k. Employee Benefits

(i) All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employees render the related services.

(ii) Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss when the contributions to the respective funds are accrued. Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of each financial year. Short term and long term compensated absences are provided for based on actuarial valuation at the year end. Actuarial gains/losses are immediately taken to statement of profit and loss and are not deferred. I. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction 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 charged to statement of profit and loss. m. Accounting for Joint Venture Contracts

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

(ii) Assets, liabilities and expenditure arising out of contracts executed wholly by the Company pursuant to a joint venture contract are recognised under respective heads in the financial statements. Income from the contract is accounted net of joint venturer''s share under income from operations in these financial statements.

(iii) Share of turnover attributable to the Company in respect of contracts executed by the other joint venture partners pursuant to joint venture agreement, is accounted under income from operations in these financial statements. n. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net elling price of assets and their Value in use''. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital.

o. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A. Basis of Preparation of Financial Statements

(i) The financial statements have been prepared under the historical cost convention and in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

(ii) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

b. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of income and expenses and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

(i) In respect of construction/ project related activity, the Company follows percentage of completion method. Percentage of completion is determined by survey of work performed / physical measurement of work actually completed at the balance Sheet date taking into account contractual price/ unit rates and revision thereto.

(ii) Revenue in respect of claims is recognised to the extent the Company is reasonably certain of their realisation.

(iii) Other operational income is recognised on rendering of related services, as per the terms of the contracts.

(iv) Other items of income are accounted as and when the right to receive arises.

(v) Each contract is recognised as a profit centre. Payments/ reimbursements under the same are grouped under direct and other expenses.

d. Fixed Assets, Depreciation and Amortisation

(i) Fixed assets are stated at their original cost. Cost includes acquisition price, attributable expenses and pre- operational expenses. Fixed Assets retired from active use are valued at net realisable value.

(ii) 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. In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

(iii) Assets acquired on equipment finance (hire purchase) are stated at their cash values.

(iv) Leasehold land, if any, is amortised over the period of lease.

e. Investments

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

f. Foreign Currency Transactions

(i) The reporting currency of the Company is the Indian Rupee.

(ii) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(iii) Monetary items denominated in foreign currencies, if any, at the end of the year are restated at year end rates.

(iv) Non monetary foreign currency items are carried at cost.

(v) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the statement of profit and loss.

g. Leases

The Company's significant leasing arrangements are in respect of operating leases for premises and quarries for varying periods and the lease can be renewed as per mutual agreement. The aggregate lease rents payable are charged as rent in the statement of profit and loss. There is no restriction or contingent rent in the lease agreements. All leases are cancelable in nature.

h. Inventories

Construction materials are valued at cost or net realisable value whichever is lower. Cost of inventories is ascertained on FIFO basis.

i. Taxes on Income

i) Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

ii) Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future. The carrying amount of deferred tax assets are reviewed at each balance sheet date. In case of unabsorbed depreciation and losses, deferred tax assets are recognised and carried forward only to the extent there is a virtual certainty that the asset will be adjusted in future.

j. Employee Benefits

(i) All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employees render the related services.

(ii) Retirement benefit in the form of provident fund is a defined contribution scheme and the contributions are charged to the statement of profit and loss when the contributions to the respective funds are accrued. Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of each financial year. Short term and long term compensated absences are provided for based on actuarial valuation at the year end. Actuarial gains/losses are immediately taken to statement of profit and loss and are not deferred.

k. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction 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 charged to statement of profit and loss.

l. Accounting for Joint Venture Contracts

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

(ii) Assets, liabilities and expenditure arising out of contracts executed wholly by the Company pursuant to a joint venture contract are recognised under respective heads in the financial statements. Income from the contract is accounted net of joint venturer's share under income from operations in these financial statements.

(iii) Share of turnover attributable to the Company in respect of contracts executed by the other joint venture partners pursuant to joint venture agreement, is accounted under income from operations in these financial statements.

m. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their 'value in use'. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital.

n. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2011

A. Basis of Preparation of Financial Statements

(i) The financial statements have been prepared under the historical cost convention (other than certain Fixed Assets which are stated at revalued amount) and in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

(ii) The Company follows mercantile system of accounting and recognises income and expenditure on accrual basis.

b. Use of Estimates

The preparation of Financial Statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of income and expenses and disclosure of contingent liabilities at the date of the financial statements and the result of operations during the reporting year end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c. Revenue Recognition

(i) Sale is recognised on despatch of goods and net of Value Added Tax (VAT).

(ii) In respect of construction/ project related activity, the Company follows Percentage of Completion Method. Percentage of Completion is determined by survey of work performed / physical measurement of work actually completed at the Balance Sheet date taking into account Contractual Price/ Unit Rates and revision thereto.

(iii) Revenue in respect of claims is recognised to the extent the Company is reasonably certain of their realisation.

(iv) Other operational income is recognised on rendering of related services, as per the terms of the contracts.

(v) Other items of income are accounted as and when the right to receive arises.

d. Each Contract is recognised as a Profit Centre. Payments/ reimbursements under the same are grouped under Direct and Other Expenses.

e. Fixed Assets and Depreciation

(i) Fixed Assets are stated at their original cost (other than certain Fixed Assets which are stated at revalued amount). Cost includes acquisition price, attributable expenses and preoperational expenses. Fixed Assets retired from active use are valued at net realisable value.

(ii) 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.

In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

(iii) Assets acquired on Equipment Finance (hire purchase) are stated at their cash values.

(iv) Lease hold land is amortised over the period of lease.

f. Investments

Long term Investments are valued at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary.

g. Foreign Currency Transactions

(i) The reporting currency of the Company is the Indian Rupee.

(ii) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(iii) Monetary items denominated in foreign currencies, if any, at the end of the year are restated at year end rates.

(iv) Non monetary foreign currency items are carried at cost.

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

h. Leases

The Company's significant leasing arrangements are in respect of operating leases for premises and quarries for varying periods and the lease can be renewed as per mutual agreement. The aggregate lease rents payable are charged as Rent in the Profit and Loss Account. There is no restriction or contingent rent in the lease agreements. All leases are cancelable in nature.

i. Inventories

Stock of goods is valued at cost or net realisable value whichever is lower. Cost of inventories is ascertained on FIFO basis.

j. Taxes on Income

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred Tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future. The carrying amount of Deferred Tax Assets are reviewed at each Balance Sheet Date.

In case of unabsorbed depreciation and losses, deferred tax assets are recognised and carried forward only to the extent there is a virtual certainty that the asset will be adjusted in future.

k. Employees' Benefits

(i) All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised in the period in which the employees render the related services.

(ii) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are accrued.

Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Other long term benefits being liability for leave encashment are provided for based on actuarial valuation at the year end.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

I. Accounting for Joint Venture Contracts

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

(ii) Assets, liabilities and expenditure arising out of contracts executed wholly by the Company pursuant to a joint venture contract are recognised under respective heads in the financial statements. Income from the contract is accounted net of joint venturer's share under turnover in these financial statements.

(iii) Share of turnover attributable to the Company in respect of contracts executed by the other joint venture partners pursuant to Joint Venture Agreement, is accounted under turnover in these financial statements.

m. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their 'value in use'. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital.

n. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

A. Basis of Preparation of Financial Statements

i) The financial statements have been prepared under the historical cost convention (other than certain Fixed Assets which are stated at revalued amount) and in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

(ii) The Company follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

b. Revenue Recognition

(i) Sale is recognised on despatch of goods and net of Value Added Tax (VAT).

(ii) In respect of construction/ project related activity, the Company follows Percentage of Completion Method. Percentage of Completion is determined by survey of work performed / physical measurement of work actually completed at the Balance Sheet date taking into account Contractual Price/ Unit Rates and revision thereto.

(iii) Revenue in respect of claims is recognised to the extent the Company is reasonably certain of their realisation.

(iv) Other operational income is recognised on rendering of related services, as per the terms of the contracts.

(v) Other items of income are accounted as and when the right to receive arises.

c. Each Contract is recognised as a Profit Centre. Payments/ reimbursements under the same are grouped under Direct and Other Expenses.

d. Fixed Assets and Depreciation

(i) Fixed Assets are stated at their original cost. Cost includes acquisition price, attributable expenses and pre-operational expenses.

Fixed Assets retired from active use are valued at net realisable value.

(ii) 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.

In case of impairment, if any, depreciation is provided on the revised carrying amount of the assets over their remaining useful life.

(iii) Assets acquired on Equipment Finance (hire purchase) are stated at their cash values.

(iv) The difference between depreciation provided based on revalued amount and that on historical cost is transferred from Revaluation Reserve to Profit and Loss Account.

e. Investments

Long term Investments are valued at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary.

f. Foreign Currency Transactions

(i) The reporting currency of the Company is the Indian Rupee.

(ii) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

(iii) Monetary items denominated in foreign currencies, if any, at the end of the year are restated at year end rates.

(iv) Non monetary foreign currency items are carried at cost.

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

g. Leases

The Companys significant leasing arrangements are in respect of operating leases for premises. The aggregate lease rents payable are charged as rent in the Profit and Loss Account.

h. Inventories

Stock of goods is valued at cost or net realisable value whichever is lower. Cost of inventories is ascertained on FIFO basis.

i. Taxes on Income

i) Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.

ii) Deferred Tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future. In case of unabsorbed depreciation and losses, deferred tax assets are recognised and carried forward only to the extent there is a virtual certainty that the asset will be adjusted in future.

j. Employees Benefits

(i) All employees benefits payable wholly within twelve months of rendering the service such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognized in the period in which the employees render the related services.

(ii) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are accrued. There are no obligations other than the contribution payable to the respective funds.

Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation.

Actuarial gains/losses are immediately taken to profit and loss account and are not deferred.

k. Accounting for Joint Venture Contracts

(i) Contracts executed in joint Venture under work sharing arrangement (consortium) are accounted in accordance with the accounting policy followed by the Company as that of an independent contract to the extent work is executed. (ii) Assets, liabilities and expenditure arising out of contracts executed wholly by the Company pursuant to a joint venture contract are recognised under respective heads in the financial statements. Income from the contract is accounted net of joint venturers share under turnover in these financial statements.

(iii) Share of turnover attributable to the Company in respect of contracts executed by the other joint venture partners pursuant to Joint Venture Agreement, is accounted under turnover in these financial statements.

l. Impairment of Assets

The carrying amount of assets is reviewed at each balance sheet date to determine if there is any indication of impairment thereof based on external / internal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount, which represents the greater of the net selling price of assets and their value in use. The estimated future cash flows are discounted to their present value at appropriate rate arrived at after considering the prevailing interest rates and weighted average cost of capital.

m. Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.

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