Accounting Policies of Sancia Global Infraprojects Ltd. Company

Mar 31, 2015

A) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company except where otherwise stated.

b) The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2015 and the relevant provisions of the Companies Act, 2013.

c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

20.3 Fixed Assets:

a. Fixed Assets are stated at cost, less accumulated depreciation, less impairment, if any. Cost comprises the purchase price and any attributed cost of bringing the assets to its working condition for its intended use.

b. Depreciation on the fixed assets has been provided on straight line method at the rates prescribed and in the manner specified in part C of schedule II to the Companies Act, 2013.

20.4 Impairment of Assets

At each balance sheet date if there is any indication of impairment of assets exists the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belong is less than its carrying amount. The carrying amount is reduced to its recoverable amount. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exits. The recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

20.5 Investments:

Investments are classified as current and Non-current investments. Current investments are stated at lower of cost or market value. Non-current investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary in the value of long term investments.

20.6 Foreign Currency Transactions:

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 on the date of transaction.

c. Exchange differences - Exchange differences arising on the settlement or conversion of monetary current assets and liabilities are recognized as income or as expense in the year in which they arise.

d. Forward Exchange Contracts - The Company enters into Forward Exchange Contracts which are 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 foreign exchange contract is recognized as income or expense for the year.

20.7 Inventories

a. Raw materials are valued at cost or net realizable value whichever is lower.

b. Stores and spares are valued at cost or net realizable value whichever is lower.

c. Finished goods are valued at cost value.

20.8 Revenue Recognition:

a. Revenue from Rental / Hiring of Equipments / Machineries is recognized, when the said assets are deployed and such revenue are contractually earned.

b. Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyers. Sales revenue is net of sales return, discounts and rebates.

c. Rebates / Discounts on Sales are accounted for in the year of settlement.

d. The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties when such revenue is recognized on their realization.

e. Receipts for Performance which are yet to be given or cost yet to be incurred in subsequent periods are classified as unearned revenue.

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

20.9 Employees'' Retirement Benefits:

Contribution to Provident Fund is accounted when accrued. The companies have the policy of encasing unutilized leave however there is no unutilized leave at the end of the year.

20.10 Borrowing Cost :-

Interest and other borrowing cost on specific borrowings, relatable to qualifying assets are capitalized as part of the cost of such assets up to the date when such asset is ready for its intended use. All other borrowing cost is charged to the profit and Loss Account.

20.11 Earnings per Share:

a) The basic earnings per share are calculated by dividing the profit after Tax for the period attributable to equity shareholders by the weighted average number of Equity Shares.

b) For the purpose of calculating diluted earnings per share, the profit after tax for the period and the weighted average number of Equity Shares are adjusted for the effects of all dilutive Equity Shares.

20.12 Taxes on Income:

a. Tax expense comprises of current tax and deferred tax.

b. Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

c. Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognized, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

20.13 Provisions, Contingent Liabilities and Contingent Assets

a. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

b. Contingent Liabilities are not provided for in the accounts and are shown separately in the Notes on Account.

20.14 Miscellaneous Expenditure:

Miscellaneous expenditure represents ancillary cost incurred in connection with the arrangement of borrowings (FCCB) and share issue expenses. It is decided to write off share issue expenses over the lower of a period of five years and the bond issue expenses are being amortized over the period of arrangement on a pro-rata basis.

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company except where otherwise stated.

b) The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

1. 2. Fixed Assets:

a) Fixed Assets are stated at cost less accumulated depreciation and impairment loss, if any. The cost of an asset comprises of purchase price and any directly attributable cost of bringing the assets to its present condition for intended use.

b) Depreciation on the fixed assets has been provided on straight line method at the rates prescribed and in the manner specified in Note XIV to the Companies Act, 1956.

1.3. Impairment of Assets

At each balance sheet date if there is any indication of impairment of assets exists the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belong is less than its carrying amount. The carrying amount is reduced to its recoverable amount. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exits. The recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

1.4. Investments:

Investments are classified as current and Non-current investments. Current investments are stated at lower of cost or market value. Non-current investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary in the value of long term investments.

1.5. Foreign Currency Transactions:

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 on the date of transaction

c. Exchange differences - Exchange differences arising on the settlement or conversion of monetary current assets and liabilities are recognized as income or as expense in the period in which they arise.

d. Forward Exchange Contracts - The Company enters into Forward Exchange Contracts which are 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 foreign exchange contract is recognized as income or expense for the year.

1.6. Inventories

a) Raw materials are valued at cost or net realizable value whichever is lower.

b) Stores and spares are valued at cost or net realizable value whichever is lower.

c) Finished goods are valued at cost value

1.7. Revenue Recognition:

a. Revenue from Rental / Hiring of Equipments / Machineries is recognized, when the said assets are deployed and such revenue are contractually earned.

b. Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyers. Sales revenue is net of sales return, discounts and rebates.

c. Rebates / Discounts on Sales are accounted for in the year of settlement.

d. The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties when such revenue is recognized on their realization.

e. Receipts for Performance which are yet to be given or cost yet to be incurred in subsequent periods are classified as unearned revenue.

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

1.8. Employees'' Retirement Benefits:

Contribution to Provident Fund is accounted when accrued. The company have the policy of encashing unutilized leave however there is no unutilized leave at the end of the year.

1.9. Borrowing Cost:

Interest and other borrowing cost on specific borrowings, relatable to qualifying assets are capitalized as part of the cost of such assets upto the date when such asset is ready for its intended use. All other borrowing cost is charged to the profit and Loss Account.

1.10 Earnings Per Share:

a. The basic earnings per share are calculated by dividing the profit after Tax for the period attributable to equity shareholders by the weighted average number of Equity Shares.

b. For the purpose of calculating diluted earnings per share, the profit after tax for the period and the

1.11 Taxes on Income:

Tax expense comprises of current tax and deferred tax.

a. Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

b. Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognized, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

1.12 Provisions, Contingent Liabilities and Contingent Assets:

a. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

b. Contingent Liabilities are not provided for in the accounts and are shown separately in the Notes on Account.

1.13 Miscellaneous Expenditure:

Miscellaneous expenditure represents ancillary cost incurred in connection with the arrangement of borrowings (FCCB) and share issue expenses. It is decided to write off share issue expenses over the lower of a period of five years and the bond issue expenses are being amortized over the period of arrangement on a pro-rata basis.

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Mar 31, 2013

1. Basis of preparation of financial statements:

a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company except where otherwise stated.

b) The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

d) During the financial year 2012-13; figures related to the financial year 2009-10 has been presented on the basis of regenerated and/or reconstructed records prepared on the basis of bank statements, residuary information''s and on the basis of management representations due to the loss of financials and other records while shifting of office documents and furniture from corporate office (Mumbai) to registered office (Kolkata).

2. Fixed Assets:

a) Fixed Assets are stated at cost, less accumulated depreciation, less impairment, if any. Cost comprises the purchase price and any attributed cost of bringing the assets to its working condition for its intended use.

b) Depreciation on the fixed assets has been provided on straight line method at the rates prescribed and in the manner specified in schedule XIV to the Companies Act, 1956.

3. Impairment of Assets

At each balance sheet date if there is any indication of impairment of assets exists the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belong is less than its carrying amount. The carrying amount is reduced to its recoverable amount. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exits. The recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

4. Investments:

Investments are classified as current and Non-current investments. Current investments are stated at lower of cost or market value. Non-current investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary in the value of long term investments.

5. Foreign Currency Transactions:

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. Nonmonetary items, which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange rate on the date of transaction.

c) Exchange differences - Exchange differences arising on the settlement or conversion of monetary current assets and liabilities are recognized as income or as expense in the year in which they arise.

d) Forward Exchange Contracts - The Company enters into Forward Exchange Contracts which are 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 foreign exchange contract is recognized as income or expense for the year.

6. Inventories

a) Raw materials are valued at cost or net realizable value whichever is lower.

b) Stores and spares are valued at cost or net realizable value whichever is lower.

c) Finished goods are valued at cost value.

7. Revenue Recognition:

a) Revenue from Rental / Hiring of Equipments / Machineries is recognized, when the said assets are deployed and such revenue are contractually earned.

b) Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyers. Sales revenue is net of sales return, discounts and rebates.

c) Rebates / Discounts on Sales are accounted for in the year of settlement.

d) The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties when such revenue is recognized on their realization.

e) Receipts for Performance which are yet to be given or cost yet to be incurred in subsequent periods are classified as unearned revenue.

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

8. Employees'' Retirement Benefits:

Contribution to Provident Fund is accounted when accrued. The companies have the policy of encasing unutilized leave however there is no unutilized leave at the end of the year.

9. Borrowing Cost

Interest and other borrowing cost on specific borrowings, relatable to qualifying assets are capitalized as part of the cost of such assets up to the date when such asset is ready for its intended use. All other borrowing cost is charged to the profit and Loss Account.

10. Earnings per Share:

a) The basic earnings per share are calculated by dividing the profit after Tax for the period attributable to equity shareholders by the weighted average number of Equity Shares.

b) For the purpose of calculating diluted earnings per share, the profit after tax for the period and the Weighted average number of Equity Shares are adjusted for the effects of all dilutive Equity Shares.

11. Taxes on Income:

Tax expense comprises of current tax and deferred tax.

a. Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

b. Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognized, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognized only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

12. Provisions, Contingent Liabilities and Contingent Assets

a. A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

b. Contingent Liabilities are not provided for in the accounts and are shown separately in the Notes on Account.

13. Miscellaneous Expenditure:

Miscellaneous expenditure represents ancillary cost incurred in connection with the arrangement of borrowings (FCCB) and share issue expenses. It is decided to write off share issue expenses over the lower of a period of five years and the bond issue expenses are being amortized over the period of arrangement on a pro-rata basis.

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Mar 31, 2012

1. Basis of preparation of financial statements:

a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company except where otherwise stated.

b) The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

2. Fixed Assets:

a) Fixed Assets are stated at cost, less accumulated depreciation, less impairment, if any. Cost comprises the purchase price and any attributed cost of bringing the assets to its working condition for its intended use.

b) Depreciation on the fixed assets has been provided on straight line method at the rates prescribed and in the manner specified in schedule XIV to the Companies Act, 1956.

3. Investments:

Investments are classified'as current and Non-current investments. Current investments are stated at lower of cost or market value. Non-current investments are stated at cost. A Provision for diminution is made to recognize a decline, other that temporary in the value of Non-current investments.

4. Foreign Currency Transactions:

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 on the date of transaction.

c) Exchange differences - Exchange differences arising on the settlement or conversion of monetary current assets and liabilities are recognized as income or as expense in the year in which they arise.

d) Forward Exchange Contracts - The Company enters into Forward Exchange Contracts which are not intended for trading or speculation purposes. The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised 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 foreign exchange contract is recognised as income or expense for the year.

5. Inventories

a) Raw materials are valued at cost or net realizable value whichever is lower.

b) Stores and spares are valued at cost or net realizable value whichever is lower.

c) Finished goods are valued at cost value.

6. Revenue Recognition:

a) Revenue from Rental / Hiring of Equipments / Machineries is recognized, when the said assets are deployed and such revenue are contractually earned.

b) Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyers. Sales revenue is net of sales return, discounts and rebates.

c) Rebates / Discounts on Sales are accounted for in the year of settlement.

d) The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties when such revenue is recognized on their realization.

e) Receipts for Performance which .are yet to be given or cost yet to be incurred in subsequent periods are classified as unearned revenue.

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

7. Employees'Retirement Benefits;

Contribution to Provident Fund is accounted when accrued. The companies have the policy of encashing unutilized leave however there is no unutilized leave at the end of the year

8. Borrowing Cost :-

Interest and other borrowing cost on specific borrowings, relatable to qualifying assets are capitalised as part of the cost of such assets upto the date when such asset is ready for its intended use. All other borrowing cost is charged to the profit and Loss Account.

9. Earnings per Share:

a) The basic earnings per share are calculated by dividing the profit after Tax for the period attributable to equity shareholders by the weighted average number of Equity Shares.

b) For the purpose of calculating diluted earnings per share, the profit after tax for the period and the weighted average number of Equity Shares are adjusted for the effects of all dilutive Equity Shares.

10. Taxes on Income:

Tax expense comprises of current tax and deferred tax.

a) Current income tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

b) Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognised, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognised only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

11. Provisions, Contingent Liabilities and Contingent Assets

a) A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

b) Contingent Liabilities are not provided for in the accounts and are shown separately in the Notes on Account.

12. Miscellaneous Expenditure:

Miscellaneous expenditure represents ancillary cost incurred in connection with the arrangement of borrowings (FCCB) and share issue expenses. It is decided to write off share issue expenses over the lower of a period of five years and the bond issue expenses are being amortized over the period of arrangement on a pro-rata basis.

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Mar 31, 2010

1. Basis of preparation of financial statements:

a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company except where otherwise stated.

b) The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

d) During the year financial statements has been prepared on the basis of bank statements, residuary informations and on the basis of management representations due to the loss of financial and other records while shifting of office documents and furniture from Corporate office (Mumbai) to Registered office (Kolkata).

2. Fixed Assets:

a) Fixed Assets are stated at cost, less accumulated depreciation, less impairment, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

b) Depreciation on the fixed assets has been provided on straight line method at the rates prescribed and in the manner specified in schedule XIV to the Companies Act, 1956.

3. investments:

Investments are classified as current and long term investments. Current investments are stated at lower of cost or market value. Long term investments are stated at cost. A Provision for diminution is made to recognize a decline, other that temporary in the value of long term investments.

4. Foreign Currency Transactions:

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 on the date of transaction.

c) Exchange differences - Exchange differences arising on the settlement or conversion of monetary current assets and liabilities are recognized as income or as expense in the year in which they arise.

d) Forward Exchange Contracts - The Company enters into Forward Exchange Contracts which are not intended for trading or speculation purposes. The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised 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 foreign exchange contract is recognised as income or expense for the year.

5. Inventories (Store & Spares)

a) Inventories i.e. stores & spares are valued at cost or net realizable value whichever is lower.

6. Revenue Recognition:

a) Revenue from Rental / Hiring of Equipments / Machineries is recognized, when the said assets are deployed and such revenue are contractually earned.

b) Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyers. Sales revenue is net of sales return, discounts and rebates.

c) Rebates / Discounts on Sales are accounted for in the year of settlement.

d) The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties when such revenue is recognized on their realization.

e) Receipts for Performance which are yet to be given or cost yet to be incurred in subsequent periods are classified as unearned revenue.

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

7. Employees Retirement Benefits:

Contribution to Provident Fund is accounted when accrued. The companies have the policy of encashing unutilized leave however there is no unutilized leave at the end of the year.

8. Borrowing Cost :-

Interest and other borrowing cost on specific borrowings, relatable to qualifying assets are capitalised as part of the cost of such assets upto the date when such asset is ready for its intended use. All other borrowing cost is charged to the profit and Loss Account.

9. Earnings per Share:

a) The basic earnings per share are calculated by dividing the profit after Tax for the period attributable to equity shareholders by the Weighted average number of Equity Shares.

b) For the purpose of calculating diluted earnings per share, the profit after tax for the period and the weighted average number of Equity Shares are adjusted for the effects of all dilutive Equity Shares.

10. Taxes on Income:

Tax expense comprises of current tax, deferred tax and fringe benefit tax.

a) Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

b) Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognised, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognised only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

11. Provisions, Contingent Liabilities and Contingent Assets

a) A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

b) Contingent Liabilities are not provided for in the accounts and are shown separately in the Notes on Account.

12. Miscellaneous Expenditure:

Miscellaneous expenditure represents ancillary cost incurred in connection with the arrangement of borrowings (FCCB) and share issue expenses. It is decided to write off share issue expenses over the lower of a period of five years and the bond issue expenses are being amortized over the period of arrangement on a pro-rata basis.

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Mar 31, 2009

1. Basis of preparation of financial statements:

a) The financial statements are prepared in accordance with Generally Accepted Accounting Principles (Indian GAAP) under the historical cost convention on accrual basis and on principles of going concern. The accounting policies are consistently applied by the Company except where otherwise stated.

b) The financial statements are prepared to comply in all material respects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

c) The preparation of the financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized.

2. Fixed Assets:

a) Fixed Assets are stated at cost, less accumulated depreciation, less impairment, if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

b) Depreciation on the fixed assets has been provided on straight line method at the rates prescribed and in the manner specified in schedule XIV to the Companies Act, 1956.

3. Investments:

Investments are classified as current and long term investments. Current investments are stated at lower of cost or market value. Long term investments are stated at cost. A Provision for diminution is made to recognize a decline, other that temporary in the value of long term investments.

4. Foreign Currency Transactions:

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 on the date of transaction.

c) Exchange differences - Exchange differences arising on the settlement or conversion of monetary current assets and liabilities are recognized as income or as expense in the year in which they arise.

d) Forward Exchange Contracts - The Company enters into Forward Exchange Contracts which are not intended for trading or speculation purposes. The premium or discount arising at the inception of forward exchange contracts is amortised as expense or income over the life of the contract. Exchange differences on such contracts are recognised 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 foreign exchange contract is recognised as income or expense for the year.

5. Inventories (Store & Spares)

a) Inventories i.e. stores & spares are valued at cost or net realizable value whichever is lower.

6. Revenue Recognition:

a) Revenue from Rental / Hiring of Equipments / Machineries is recognized, when the said assets are deployed and such revenue are contractually earned.

b) Rebates / Discounts on Sales are accounted for in the year of settlement.

c) The Company generally follows the mercantile system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties when such revenue is recognized on their realization.

d) Receipts for Performance which are yet to be given or cost yet to be incurred in subsequent periods are classified as unearned revenue.

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

7. Employees Retirement Benefits:

Contribution to Provident Fund is accounted when accrued. The Companies have the policy of encashing unutilized leave however there is no unutilized leave at the end of the year.

8. Borrowing Cost :-

Interest and other borrowing cost on specific borrowings, relatable to qualifying assets are capitalised as part of the cost of such assets upto the date when such asset is ready for its intended use. All other borrowing cost is charged to the profit and Loss Account.

9. Earnings per Share:

a) The basic earnings per share are calculated by dividing the profit after Tax for the period attributable to equity shareholders by the number of Equity Shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the profit after tax for the period and the weighted average number of Equity Shares are adjusted for the effects of all dilutive Equity Shares.

10. Taxes on Income:

Tax expense comprises of current tax, deferred tax and fringe benefit tax.

a) Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities, computed in accordance with the applicable tax rates and tax laws.

b) Deferred Tax arising on account of "timing differences" and which are capable of reversal in one or more subsequent periods is recognised, using the tax rates and tax laws that are enacted or substantively enacted. Deferred tax asset is recognised only to the extent there is reasonable certainty with respect to reversal of the same in future years as a matter of prudence.

11. Provisions, Contingent Liabilities and Contingent Assets

a) A provision is recognised when the company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

b) Contingent Liabilities are not provided for in the accounts and are shown separately in the Notes on Account.

12. Miscellaneous Expenditure:

Miscellaneous expenditure represents ancillary cost incurred in connection with the arrangement of borrowings (FCCB) and share issue expenses. It is decided to write off share issue expenses over the period of five years and the bond issue expenses are being amortized over the period of arrangement on a pro-rata basis.