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Accounting Policies of Brahmaputra Infrastructure Ltd. Company

Mar 31, 2023

Significant Accounting Policies

(i) Revenue

Revenue is recognised upon transfer of control of promised product or services to customer in an amount that
reflect the consideration which the company expects to receive in exchange for those product or services at
the fair value of the consideration received or receivable, which is generally the transaction price, net of any
taxes/duties and discounts.

The company earns revenue from construction and real estate projects.

Revenue from related parties is recognized based on transaction price which is at arm''s length.

Revenue from construction activity

Income from construction contracts is recognized by reference to the stage of completion of the contract
activity as certified by the client.

Revenue from real estate projects

Revenue from real estate projects is recognized on the basis of percentage of completion method of
accounting.

Other operating income

a. Income from industrial park project is recognized on the time of execution of registered sale deed /
agreement to sale, in relation to sold areas only

b. “Bill raised but unsettled” have been accounted for in the books at the value reasonably ascertained by
the management on the date of raising the bill.

c. Claims in respect of civil contracts lodged/awarded with/by the respective Department which may
pertains to earlier years have been accounted for in the books in the year of its certainty and at value
/enhanced value reasonably ascertained by the management.

Other income

Rental income from investment property is recognised as part of revenue from operations in profit or loss on a
straight-line basis over the term of the lease except where the rentals are structured to increase in line with
expected general inflation. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease.

Interest income

Interest income on time deposits and inter corporate loans is recognised using the effective interest method.

The ‘effective interest rate'' is the rate that exactly discounts estimated future cash payments or receipts
through the expected life of the financial instrument to the gross carrying amount of the financial asset.

Dividend

Dividend income is recognised in profit and loss on the date on which the company''s right to receive payment
is established.

(ii) Property, plant and equipment

Recognition and measurement

Items of property, plant and equipment are measured at cost, net of recoverable taxes(wherever applicable),
which includes capitalised borrowing costs less accumulated depreciation and accumulated impairment
losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and
non-refundable purchase taxes, if any, after deducting trade discounts and rebates, any directly attributable
cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and
removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in the statement of profit
and loss.

Subsequent expenditure

Subsequent expenditure are included in the asset''s carrying amount or recognised as a separate asset, as
appropriate, only if it is probable that future economic benefits associated with the expenditure will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when replaced.

All other repairs and maintenance are charged to the statement of profit and loss during the reporting year in
which they are incurred.

Depreciation methods, estimated useful lives and residual values

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual
value over their useful life using straight line method,and is recognised in the statement of profit and loss.

The estimated useful lives of items of property, plant and equipment for the current and comparative periods
are as under and the same are equal to lives specified as per schedule II of the Act.

Based on technical evaluation and consequent advice, the management believes that its estimates of useful
lives as given above best represent the period over which management expects to use these assets.
Depreciation on addition to property, plant and equipment is provided on pro-rata basis from the date the
assets are ready for intended use. Depreciation on sale/discard from property, plant and equipment is
provided for up to the date of sale, deduction or discard of property, plant and equipment as the case may be.

Depreciation method, useful lives and residual values are reviewed at each financial year-end, and changes,
if any, are accounted for prospectively.

Reclassification to investment property

When the use of a property changes from owner-occupied to investment property, the property is reclassified
as investment property at its carrying amount on the date of reclassification.

(iii) Goodwill and other intangible assets

Goodwill

For measurement of goodwill that arises on a business combination. Subsequent measurement is at cost
less any accumulated impairment losses.

Other intangible assets

An intangible asset is recognised when it is probable that the future economic benefits attributable to the
asset will flow to the company and where its cost can be reliably measured.

Intangible assets are initially measured at cost. Such intangible assets are subsequently measured at cost
less accumulated amortisation and any accumulated impairment losses. Cost comprises the purchase price
and any cost attributable to bringing the assets to its working condition for its intended use.

Internally generated intangible assets

Expenditure on research activities is recognised in the statement of profit and loss as incurred.

Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the
expenditure can be measured reliably, the product or process is technically and commercially feasible, future
economic benefits are probable, and the Company intends to and has sufficient resources to complete
development and to use or sell the asset. Otherwise, it is recognised in the statementof profit and loss as
incurred. Subsequent to initial recognition, the asset is measured at cost less accumulated amortisation and
any accumulated impairment losses.

Others

Other intangible assets including those acquired by the Company in a business combination are initially
measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation
and any accumulated impairment losses.

Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is recognised in the statement of profit and loss as
incurred.

Amortisation

Goodwill is not amortised and is tested for impairment annually.

Amortisation is calculated to write off the cost of intangible assets over their estimated useful lives using the
straight-line method, and is included in depreciation and amortisation in the statement of profit and loss.

Amortisation method, useful lives and residual values are reviewed at each financial year-end, and changes,
if any, are accounted for prospectively.

Losses arising from the retirement of, and gain or losses arising from disposal of an intangible asset are
determined as the difference between the net disposal proceeds and the carrying amount of asset and
recognised as income or expense in the statement of profit and loss.

(iv) Business Combinations

In accordance with Ind AS 103, the Company accounts for these business combinations using the acquisition
method when control is transferred to the Company.The consideration transferred for the business
combination is generally measured at fair value as at the date the control is acquired (acquisition date), as are
the net identifiable assets acquired. Any goodwill that arises is tested annually for impairment. Any gain on a
bargain purchase is recognised in other comprehensive income(“OCI”) and accumulated in equity as capital
reserve if there exists clear evidence of the underlying reasons for classifying the business combination as
resulting in a bargain purchase; otherwise the gain is recognised directly in equity as capital reserve.
Transaction costs are expensed as incurred except to the extent of issue of debt or equity securities.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay
contingent consideration that meets the definition of a financial instrument is classified as equity, then it is not
re-measured subsequently and settlement is accounted for within equity. Other contingent consideration is
re-measured at fair value at each reporting date and changes in the fair value of the contingent consideration
are recognised in profit or loss.

(v) Impairment of non-financial assets

The Company''s non-financial assets, other than inventories and deferred tax assets are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists, then
the asset''s or CGU''s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets that do not generate independent cash inflows are grouped together into
cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates cash
inflows that are largely independent of the cash inflows of other assets or CGUs.

Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to
benefit from the synergies of the combination.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less
costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the CGU (or the asset).

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated
recoverable amount. Impairment losses are recognised in the statement of profit and loss. Impairment loss
recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the
CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro
rata basis.

After impairment, depreciation/amortisation is provided on the revised carrying amount of the asset over its
remaining useful life.

(vi) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not
for sale in the ordinary course of business, use in the production or supply of goods or services or for
administrative purposes. Upon initial recognition, an investment property is measured at cost. Subsequent to
initial recognition, investment property is measured at cost less accumulated depreciation and accumulated
impairment losses, if any.

The fair value of investment property is disclosed in the notes. Fair value is determined by an independent
valuer who holds a recognised and relevant professional qualification and has recent experience in the
relevant location and category of the investment property being valued.

Depreciation on building component of investment property is calculated on a straight-line basis using the
rate arrived at based on the useful life estimated by the management, which are equal to useful lives specified
as per Schedule II to the Act.

(vii) Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing
costs directly attributable to acquisition or construction of an asset which necessarily take a substantial
period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other
borrowing costs are recognised as an expense in the period in which they are incurred.

The Ministry of Corporate Affairs issued amendments to Ind AS 23, ‘Borrowing Costs'', which clarify that if
any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that
borrowing becomes part of the funds that an entity borrows generally when calculating the capitalisation rate
on general borrowings. There is no impact on the financial statement due to this amendment.

(viii) Financial instruments

i. Recognition and initial measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other
financial assets and financial liabilities are initially recognised when the Company becomes a party to the
contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, transaction costs that are
directly attributable to its acquisition or issue, except for an item recognised at fair value through profit
and loss. Transaction cost of financial assets carried at fair value through profit and loss is expensed in
the statement of profit and loss.

ii. Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at

• amortised cost;

• Fair value through other comprehensive income (OCI), or

• Fair value through profit and loss (FVTPL)

The classification depends on the entity''s business model for managing the financial assets and the
contractual terms of the cash flows.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period
theCompany changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL:

• the asset is held within a business model whose objective is to hold assets to collect contractual cash
flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as
at FVTPL:

• the asset is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are
solelypayments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect
to present subsequent changes in the investment''s fair value in OCI (designated as FVOCI - equity
investment). This election is made on an investment by investment basis.

All financial assets not classified to be measured at amortised cost or FVOCI as described above are
measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may
irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised
cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that
would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held
at a portfolio level because this best reflects the way the business is managed and information is provided to
management. The information considered includes:

• the stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management''s strategy focuses on earning contractual interest income, maintaining a
particular interest rate profile, matching the duration of the financial assets to the duration of any related
liabilities or expected cash outflows or realising cash flows through the sale of the assets;

• how the performance of the portfolio is evaluated and reported to the Company''s management;

• the risks that affect the performance of the business model (and the financial assets held within that
business model) and how those risks are managed;

• how managers of the business are compensated - e.g. whether compensation is based on the fair value
of the assets managed or the contractual cash flows collected; and

• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales
and expectations about future sales activity

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not
considered sales for this purpose, consistent with the Company''s continuing recognition of the assets

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair
value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ‘principal'' is defined as the fair value of the financial asset on initial
recognition. ‘Interest'' is defined as consideration for the time value of money and for the credit risk
associated with the principal amount outstanding during a particular period of time and for other basic
lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company
considers the contractual terms of the instrument. This includes assessing whether the financial asset
contains a contractual term that could change the timing or amount of contractual cash flows such that it
would not meet this condition. In making this assessment, the Company considers:

• contingent events that would change the amount or timing of cash flows;

• terms that may adjust the contractual coupon rate, including variable interest rate features; prepayment
and extension features; and

• terms that limit the Company''s claim to cash flows from specified assets (e.g. non- recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the
prepayment amount substantially represents unpaid amounts of principal and interest on the principal
amount outstanding, which may include reasonable additional compensation for early termination of the
contract. Additionally, for a financial asset acquired at a significant discount or premium to its contractual
paramount, a feature that permits or requires prepayment at an amount that substantially represents the
contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable
additional compensation for early termination) is treated as consistent with this criterion if the fair value of the
prepayment feature is insignificant at initial recognition.

Financial assets: Subsequent measurement and gains and losses

Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the
effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and
impairment are recognised in the statement of profit and loss. Any gain or loss o derecognition is recognised
in statement of profit and loss.

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses,
including any interest income, are recognised in the statement of profit and loss.

Debts investments at FVOCI: These assets are subsequently measured at fair value. Interest income under
the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or
loss. Other net gains and losses are recognised in OCI. On Derecognition, gains and losses accumulated in
OCI are reclassified to profit or loss.

Equity investments at FVOCI: These assets are subsequently measured at fair value. Dividends are
recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of
the investment. Other net gains and losses are recognised in oCi and are not reclassified to profit or loss.

Financial liabilities: classification, subsequent measurement & gain and loss

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held fortrading, or it is a derivative or it is designated as such on initial
recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any
interest expense, are recognised in the statement of profit and loss. Other financial liabilities are
subsequently measured at amortised cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognised in the statement of profit and loss. Any gain or loss on
derecognition is also recognised in the statement of profit and loss.

iii. Offsetting

Financial assets and monetary liabilities are offset and the net amount presented in the balance sheet when,
and only when, the Company currently has a legally enforceable right to set off the amounts and it intends
either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.

iv. Derecognition

Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the
Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not
retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but
retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets
are not derecognised.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or
cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under
the modified terms are substantially different. In this case, a new financial liability based on the modified
terms is recognised at fair value. The difference between the carrying amount of the financial liability
extinguished and the new financial liability with modified terms is recognised in the statement of profit and
loss.

v. Impairment of financial instruments:

The Company recognises loss allowances for expected credit losses on:¬
- Financial assets measured at amortised cost; and
- Financial assets measured at FVOCI- debt investments

At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt
securities at FVOCI are credit impaired. A financial asset is ‘credit-impaired'' when one or more events that
have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence
that a financial asset is credit- impaired includes the following observable data:

• significant financial difficulty of the borrower or issuer;

• a breach of contract such as a default or being past due for agreed credit period;

• the restructuring of a loan or advance by the Company on terms that the Company would not consider
otherwise;

• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or

• the disappearance of an active market for a security because of financial difficulties.

Expected credit loss:

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit
losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events
over the expected life of a financial instrument.

12-month expected credit losses are the portion of expected credit losses that result from default events that
are possible within 12 months after the reporting date (or a shorter period if the expected life of the
instrument is less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum
contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating expected credit losses, the Company considers reasonable and
supportable information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Company''s historical experience and
informed credit assessment and including forward looking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than
agreed credit period.

The Company considers a financial asset to be in default when:

• the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the
Company to actions such as realising security (if any is held); or

• the financial asset is past due and not recovered within agreed credit period.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as
the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in
accordance with the contract and the cash flows that the Company expects to receive).

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying
amount of the assets disclosed in the Balance Sheet.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is
no realistic prospect of recovery. This is generally the case when the Company determines that the debtor
does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
subject to the write-off. However, financial assets that are written off could still be subject to enforcement
activities in order to comply with the Company''s procedures for recovery of amounts due.

The Company has adopted the new accounting standard Ind AS 116 “Leases” w.e.f April 1, 2019 as per
Companies (Indian Accounting Standards) amendment Rules, 2019, notified by MCA on March 30, 2019.
Ind AS 116 is a single lessee accounting model and sets out the principles for the recognition, measurement,
presentation and disclosure of leases for both lessees and lessors. On application of Ind AS 116, the nature
of expenses has changed from lease rent in previous periods to depreciation cost for the right-of-use assets
(ROU), and finance cost for interest accrued on lease liability.

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period in exchange for consideration.

As a lessee

At the commencement date of the lease the Company recognizes a lease liability measured at the present
value of the lease payments that are not paid at that date. The lease payments included in the measurement
of the lease liability consist of the payments for the right of use the underlying assets during the lease term
that are not paid at the commencement date of the lease.

The payments included in the measurement of the lease liability include fixed payments lessany lease
incentives receivable variable lease payments that depend on an index or a rate,initially measured using the
index or rate as at the commencement date, residual valueguarantees, exercise price of a purchase option
where the Company is reasonably certain toexercise that option and payments of penalties for terminating
the lease, if the lease termreflects the lessee exercising an option to terminate the lease.

The lease payments are discounted using the interest rate implicit in the lease, if that rate isreadily
determined, if that rate is not readily determined, the lease payments arediscounted using the incremental
borrowing rate.

The Company recognizes a right-of-use asset from a lease contract at the commencementdate of the lease,
which is the date that the underlying asset is made available for use.

The cost of the right-of-use assets comprises the amount of the initial measurement of thelease liability, any
initial direct costs incurred and any lease payments made at or before thecommencement date of the lease
less any lease incentives received. Subsequently, the rightof-use assets is measured at cost less any
accumulated depreciation and accumulatedimpairment losses, if any and adjusted for any re measurement
of the lease liability.

The right-of-use assets is depreciated using the straight-line method from thecommencement date over the
shorter of lease term or useful life of right-of-use asset.It also considers possible asset retirement
obligations in the cost of the right-of-use asset.

Right-of-use assets are subject to impairment testing in future periods.On date of transition, the Company
has applied the standard to its leases, retrospectively,with the cumulative effect of initially applying the
Standard and accordingly not restatedcomparative information, instead, the cumulative effect of initially
applying this standardhas been recognised as an adjustment to the opening balance of retained earnings as
on April1,2019.

The Company has also applied the following practical expedient provided by the standard when applying Ind
AS 116.

a) By measuring the assets at an amount equal to the lease liability, adjusted by the amount of any prepaid
or accrued lease payment recognized immediately before the date of initial applications.

b) The Company has applied a single discount rate to a portfolio of leases of similar assets in similar
economic environment, consequently, the Company has recorded the lease liability at the present value
of remaining lease payments, discounted using the incremental borrowing rate at the date of initial
application.

c) not to reassess whether a contract is or contains a lease, accordingly the definition oflease in accordance
with Ind AS 17 will continue to be applied to those leases entered ormodified before April 1,2019.

d) excluded the initial direct costs from measurement of the ROU asset.

e) Not to recognize ROU assets and lease liabilities for leases with less than twelve monthsof lease term
and low-value assets on the date of initial application

As a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms
of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is
classified as a finance lease. All other leases are classified as operating leases.

For operating leases, rental income is recognized on a straight line basis over the term of the relevant lease.

(x) Inventories

Inventoriescomprising of traded goods are measured at the lower of cost and net realisable value.The cost
of inventories is based on the first in, first out formula.

The Cost comprises all costs of purchases and other costs incurred in bringing the inventory to their present
location and condition. Net realisable value is the estimated selling price in the ordinary course of business
less estimated costs necessary to make the sale. The comparison of cost and net realisable value is made
on an item by item basis.

(xi) Employee Benefits

Short term employee benefits:

Short term employee benefit obligations are measured on an undiscounted basis and are expenses off as
the related services are provided. Benefits such as salaries, wages, and bonus etc. are recognised in the
statement of profit and loss in the year in which the employee renders the related service. The liabilities are
presented as current employee benefit obligation in thebalance sheet.

Long term employee benefits

Defined contribution plan: Provident fund

All employees of the Company are entitled to receive benefits under the Provident Fund, which is a defined
contribution plan. Both the employee and the employer make monthly contributions to the plan at a
predetermined rate as per the provisions of The Employees Provident Fund and Miscellaneous Provisions
Act, 1952. These contributions are made to the fund administered and managed by the Government of
India. The Company has no further obligations under the plan beyond its monthly contributions. Obligation
for contribution to defined contribution plan are recognised as an employee benefit expenses in statement
of profit and loss in the period during which the related services are rendered by the employees.

Defined Benefit Plan: Gratuity

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

The Company provides for retirement benefits in the form of Gratuity, which provides for lump sum
payments to vested employees on retirement, death while in service or on termination of employment in an
amount equivalent to 15 days basic salary for each completed year of service. Vesting occurs upon
completion of five years of service. Benefits payable to eligible employees of the company with respect to
gratuity is accounted for on the basis of an actuarial valuation as at the balance sheet date.

'' The present value of such obligation is determined by the projected unit credit method and adjusted for past
service cost and fair value of plan assets as at the balance sheet date through which the obligations are to be
settled. The resultant actuarial gain or loss on change in present value of the defined benefit obligation or
change in return of the plan assets is recognised as an income or expense in the other comprehensive
income. The Company''s obligation in respect of defined benefit plans is calculated by estimating the amount
of future benefit that employees have earned in the current and prior periods, discounting that amount and
deducting the fair value of any plan assets.

The Company''s determines the net interest expense (income) on the net defined benefit liability (asset) for
the period by applying the discount rate used to measure the defined benefit obligation at the beginning of
the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net
defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net
interest expense and other expenses related to defined benefit plans are recognised in the statement of
profit and loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that
relates to past service (‘past service cost'' or ‘past service gain'') or the gain or loss on curtailment is
recognised immediately in the statement of profit and loss. The Company recognises gains and losses on
the settlement of a defined benefit plan when the settlement occurs.

Other long-term benefits: Compensated absences

Benefits under the Company''s compensated absences scheme constitute other employee benefits. The
liability in respect of compensated absences is provided on the basis of an actuarial valuation using the
Projected Unit Credit Method. done by an independent actuary as at the balance sheet date. Actuarial gain
and losses arerecognised immediately in the statement of profit and loss.

Share based payments

The Employee Stock Option Scheme (‘the Scheme'') provides for the grant of equity shares of the Company
to its employees. The Scheme provides that employees are granted an option to acquire equity shares of the
Company that vests in a graded manner. The options may be exercised within a specified period. The
Company uses the grant date fair value to account for its equity settled share based payment plans granted
to employee, with a corresponding increase in equity over the periodthat the employees unconditionally
become entitled to the awards.Compensation cost is measured using independent valuation by Black-
Scholes model. Compensation cost, if any is amortised over the vesting period.

The Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits'', in connection with
accounting for plan amendments, curtailments and settlements requiring an entity to determine the current
service costs and the net interest for the period after the remeasurement using the assumptions used for the
remeasurement; and determine the net interest for the remaining period based on the remeasured net
defined benefit liability or asset. There is no impact on the financial statement due to this amendment.

(xii) Foreign exchange transactions and translations

Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying the foreign currency
amount of exchange rate between the reporting currency and foreign currency at the date of transaction.

Conversion

Foreign currency monetary assets and liabilities outstanding as at balance sheet date are
restated/translated using the exchange rate prevailing at the reporting date. Non-monetary assets and
liabilities which are measured in terms of historical cost denomination in foreign currency, are reported using
the exchange rate at the date of transaction except for non-monetary item measured at fair value which are
translated using the exchange rates at the date when fair value is determined.

Exchange difference arising on the settlement of monetary items or on restatement of the Company''s
monetary items at rates different from those at which they initially recorded during the year or reported in
previous financials statement (other than those relating to fixed assets and other long term monetary
assets) are recognised as income or expenses in the year in which they arise.

Foreign operations:

The assets and liabilities of foreign operations are translated into INR the functional currency of the
Company, at the exchange rates at the reporting date. The income and expenses of foreign operations are
translated into INR at the exchange rates at the dates of the transaction or an average rate if the average
rate approximates the actual rate at the date of the transaction.

Income tax comprises current and deferred tax. It is recognised in the statement of profit and loss except to
the extent that it relates to a business combination or to an item recognised directly in equity or in other
comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax
reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty,
if any, related to income taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted
by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or
simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax is not
recognised for;

- temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss at the time of the
transaction;

- taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available
against which they can be used. The existence of unused tax losses is strong evidence that future taxable
profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a
deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing
other evidence that sufficient taxable profit will be available against which such deferred tax asset can be
realised. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax
benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized
or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting
date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and
liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be real.

On March 30, 2019, Ministry of Corporate Affairs has notified, Appendix C to Ind AS 12 which clarifies the
accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of
taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is
uncertainty over income tax treatments under Ind AS 12. The company has adopted this amendment and
there is no impact on financial statement due to adoption of Appendix C to Ind AS 12.

The Company has also adopted the other amendments to “Ind AS 12” Income Tax w.e.f April 01, 2019, in
connection with accounting for dividend distribution tax and there is no impact on financial statement due to
this amendment.

Minimum alternate tax

Minimum Alternative Tax (‘MAT'') credit entitlement under the provisions of the Income-tax Act, 1961 is
recognised as a deferred tax asset when it is probable that future economic benefit associated with it in the
form of adjustment of future income tax liability, will flow to the Company and the asset can be measured
reliably. MAT credit entitlement is set off to the extent allowed in the year in which the Company becomes
liable to pay income taxes at the enacted tax rates. MAT credit entitlement is reviewed at each reporting date
and is recognised to the extent that is probable that future taxable profits will be available against which they
can be used. Significant management judgement is required to determine the probability of recognition of
MAT credit entitlement.


Mar 31, 2018

I) Significant Accounting Policies followed by the Company

a) Basis of preparation

These financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101 First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. Reconciliations and descriptions of the effect of the transition has been summarized in note.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

b) Use of estimate

The preparation of the financial statements in conformity with IndAS requires management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

c) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured

a. Income from construction contracts is recognized by reference to the stage of completion of the contract activity as certified by the client.

b. Revenue from real estate projects is recognized on the basis of percentage of completion method of accounting.

c. Income from industrial park project is recognized on the time of execution of registered sale deed / agreement to sale, in relation to sold areas only

d. "Bill raised but unsettled” have been accounted for in the books at the value reasonably ascertained by the management on the date of raising the bill.

e. Claims in respect of civil contracts lodged/awarded with/by the respective Department which may pertains to earlier years have been accounted for in the books in the year of its certainty and at value /enhanced value reasonably ascertained by the management.

d) Property, plant and Equipment

Property, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such Cost includes the cost of replacing part of the plant and equipment and borrowing costs for long term construction projects if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria is satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred. No decommissioning liabilities are expected to be incurred on the assets of plant and equipment.

Depreciation is calculated on a straight line basis over the estimated useful lives of the assets as follows:

An item of Property, plant and equipment and any significant partiniaIly recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any Gain or Loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and carrying amount of the asset) is included in the income statement when the asset is derecognized.

e) Inventories

Inventories are valued as under:

a. Raw Materials: At Cost or Net Realisable Value whichever is lower

b. Finished Products: At Cost or Net Realisable Value whichever is lower

c. Stores, Spares and Components: At Cost

d. Stock in process: At Raw material Cost plus estimated cost of conversion up to the stage of completion or

Net Realisable Value whichever is lower.

Cost includes all direct cost and applicable manufacturing and administrative overheads. Inventories are valued on FIFO basis. Variation, if any, between books and physical stocks detected on physical verification, obsolete &slow moving stocks are adjusted in accounts as found appropriate.

f) Financial instruments

1. Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition. Regular way purchase and sale of financial assets are accounted for at trade date.

2. Subsequent measurement

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive in come

A financial asset is subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories is subsequently fair valued through profit or loss.

(iv) Financial liabilities

Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(v) Investment in subsidiaries, joint ventures and associates

Investment in subsidiaries, joint ventures and associates is carried at cost in the separate financial statements.

g) Impairment of Assets

a. Financial assets

The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to be recognised is recognized as an impairment gain or loss in profit or loss.

b. Non-financial assets

i. Property, plant and equipment

Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU to which the asset belongs.

If such assets are considered to be impaired, the impairment to be recognized in the Statement of Profit and Loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been determined (net of any accumulated amortization or depreciation) had no impairment loss been recognized for the asset in prior years.

h) Income Taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognized in net profit in the statement of profit and loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income.

Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for ail temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year. Tax benefits of deductions earned on exercise of employee share options in excess of compensation charged to income are credited to share premium.

i) Provisions, Contingent Liabilities and Contingent Assets

The Company makes a provision when there Is present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Contingent Assets are disclosed when an in flow of economic benefit is probable and/or certain.

j) Investments

Long term investments being Investment in Listed Equity Shares are stated at fair value through other comprehensive income. No provision for diminution in investment is made because of its Long Term Nature.

k) Leases

Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases.

Rental expense from operating leases is generally recognised on a straight line basis over the term of relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increase, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

I) Borrowing Costs

Borrowing Costs that are attributable to the acquisition and constructions of qualifying assets are capitalised as a 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. Other borrowing costs of the year are charged to revenue in the period in which they are incurred.

m) Earnings per equity share

The basic earnings per share (“EPS”) is computed by dividing the net profit after tax for the year by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, net profit after tax for the Year and the weighted average number of shares outstanding during the Year are adjusted with the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted as of the beginning of the Year, unless they have been issued at a later date.

n) Cash Flow Statements

Cash flows are reported using the indirect method, whereby profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

o) Employee benefits

a) Short Term & Post-Employment Benefits

Employee benefits of short-term nature are recognized as expense as and when those accrue. Post employments benefits are recognized as expenses based on actuarial valuation at Year end which takes into account actuarial gains and losses.

The Company recognizes compensation expense relating to share-based payments in net profit using fair-value in accordance with Ind AS 102, Share-Based Payment. The estimated fair value of awards is charged to income on a straight-line basis over the requisite service period for each separately vesting portion of the award as if the award was in-substance, multiple awards with a corresponding increase to share options outstanding account.

Ill) First-time adoption of Ind AS

These Financial Statements of Brahmaputra Infrastructure Limited for the year ended March 31, 2018 and ended March 31, 2017 have been prepared in accordance with Ind AS. For the purposes of transition to IndAS, the Company has followed the guidance prescribed in Ind AS 101 - First Time adoption of Indian Accounting Standard, with April 1,2016 as the transition date and IGAAP as the previous GAAP.

The transition to IndAS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 1 have been applied in preparing the Financial Statements of for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to IndAS has affected the Company''s Balance Sheet, Statement of Profit and Loss. Exemptions on first time adoption of IndAS availed in accordance with IndAS 101.

Exemptions availed on first time adoption of IndAS 101

IndAS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under IndAS. The Company has accordingly applied the following exemptions:

a) Designation of previously recognized financial instruments

Under IndAS 109, at initial recognition of a financial asset, an entity may make an irrevocable election to present subsequent changes in the fair value of an investment in an equity instrument in other comprehensive income. IndAS 101 allows such designation of previously recognized financial assets, as '' fair value through other comprehensive income'' on the basis of the facts and circumstances that existed at the date of transition to IndAS.

Accordingly, the Company has designated its investments in certain equity instruments at fair value through other comprehensive income on the basis of the facts and circumstances that existed at the date of transition to IndAS.

b) Deemed Cost

Under IndAS 101, a first time adopter is allowed to continue with the carrying value for all of its property, plant and equipment measured as per previous GAAP and use that as deemed cost on the date of transition.

Accordingly, the company from the date of transition has adopted the deemed cost for Property, Plant and Equipment, i.e., carrying values of PPE as per the previous GAAP, is the cost and any accumulated depreciation and provision for impairment under previous GAAP.

c) Investments in subsidiaries, associates and joint ventures

When an entity prepares separate financial statements, IndAS 27 requires it to account for its investment in subsidiaries, joint ventures and associates either (i) at cost or (ii) in accordance with IndAS 109.

If a first-time adopter measures such an investment at cost in accordance with IndAS 27, it shall measure that investment at one of the following amounts in its separate opening Ind-AS Balance Sheet (a) cost determined in accordance with IndAS 27; or (b) deemed cost.

The deemed cost of such an investment shall be its:

(i) fair value (determined in accordance with Ind AS 109) at the entity''s date of transition to Ind-AS in its separate financial statements; or

(ii) Previous GAAP carrying amount at that date.

A first-time adopter may choose either (i) or (ii) above to measure its investment in each subsidiary, jointly controlled entity or associate that it elects to measure using a deemed cost.

Accordingly, the company has accounted its investment in subsidiaries, joint ventures and associates at carrying amount as per previous GAAP on transition date.

d) Employee Benefits

Ind AS 19 requires recognition of actuarial gains and losses for post-employment defined benefit plans and other long-term employment benefit plans in other comprehensive income immediately and is not reclassified to profit or loss in a subsequent period. However, a first time adopter may elect to recognize all cumulative actuarial gains and losses subsequent to the date of transition to IndAS in other comprehensive income.


Mar 31, 2014

1. Basis of accounting

The financial statements have been prepared to comply with the requirements of the Companies Act, 1956, under the historical cost convention on the accrual basis of accounting except interest on Mobilization/Equipment Advances is being accounted for on actual recovery basis and Interest on Late / Non Payment of Term Loan Instalments of Financers accounted for as and when settled.

Also the financial statements have been prepared in accordance with the standards on accounting prescribed in Companies (Accounting Standard) Rule, 2006 referred to in section 211 (3C) of the Companies Act, 1956.

2. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported accounts of revenues and expenses for the years presented.

3. Revenue recognition

a. Income from construction contracts is recognized by reference to the stage of completion of the contract activity as certified by the client.

b. Revenue from real estate projects is recognized on the basis of percentage of completion method of accounting.

c. Income from industrial park project is recognized on the time of execution of registered sale deed / agreement to sale, in relation to sold areas only.

d. "Bill raised but unsettled" have been accounted for in the books at the value reasonably ascertained by the management on the date of raising the bill.

e. Claims in respect of civil contracts lodged/awarded with/by the respective Department which may pertains to earlier years have been accounted for in the books in the year of its certainty and at value/enhanced value reasonably ascertained by the management.

4. Joint Ventures

Revenues / Expenses from contracts executed by the Company in joint ventures on back-to-back arrangement basis are recognized on the same basis as similar contracts independently executed by the Company. Company''s share in the Profit / Loss from joint ventures is accounted as and when the same is determined by the joint venture.

5. Employee benefit

During the year under review the company has provided Bonus on accrual basis, Provident Fund and ESI contribution for eligible employees has been provided on actual liability basis and Gratuity and Leave Encashment has been provided based on actuarial valuation.

6. Investment

Long term and short term investments both are stated at cost. No provision for diminution in coated investment is made because of its Long Term Nature.

7. Inventory

All inventories consisting of Work in Progress (Contract), Materials & Stores in hand and Real-estate division has been valued at cost as determined by the Management. No Provision is being made for slow moving Work in Progress as the management is hopeful to recover at stated value.

8. Foreign currency transactions

a. Transactions in foreign currencies are accounted for at exchange rate prevailing as on date of transaction.

b. All assets and liabilities in foreign currencies existing at Balance Sheet date are translated at the rate of Balance Sheet date.

9. Misc. expenditure

a) Preliminary expenses are amortized over a period of 10 years.

b) Increase in share capital expenses are amortized over a period of 5 years.

c) Amalgamation expenses are amortized over a period of 5 years.

d) All expenditure exceeding Rs 5000/- incurred on any kind of software upto 31.03.2007, and its development termed as "Software Expenses" are amortized over a period of 5 years. However, w.e.f. 01.04.2007 expenditure on software were capitalized Computer and accessories and was amortised through depreciation as per the S.L.M. method rates prescribed under Schedule XIV of the Companies Act 1956.

10. Fixed assets

Fixed Assets mainly comprised of Earthmoving Machinery and Motor Lorries has been stated at cost less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

11. Depreciation

Depreciation is provided on straight line method as per rates specified in Schedule XIV to the Companies Act, 1956 subject to maximum of 95% of cost value.

12. Contingent liabilities

Contingent Liabilities not admitted by the company are not provided for in the accounts but are disclosed by way of other disclosures.

13. Taxation

Income Tax comprises current tax and deferred tax. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences subject to consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

14. Earning per share

The earnings considered in ascertaining company''s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year

15. Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

16. Prior Period Income/Expenses

Income/Expenses related to Prior Period are shown separately in "Note" to financial Statement under their natural head and the impact of amounts is separately disclosed in other disclosures.

17. Impairment of assets

Pursuant to Accounting Standard (AS-28) on - Impairment of assets issued by the Institute of Chartered Accountant of India, the company assessed its fixed assets for impairment as at the year end and concluded that there has been no significant impaired fixed assets that needs to be recognized in the books of accounts.

18. Lease rental payments being operating lease is accounted for as an expenses on accrual basis.

19. Insurance claims lodged / Receivable with the respective departments has been accounted for in the books at the value either mutually settled or reasonably ascertained by the management.

20. Provision for Doubtful Debts is made at value estimated by the management.


Mar 31, 2013

1 Basis of accounting

The financial statements have been prepared to comply with the requirements of the Companies Act, 1956, under the historical cost convention on the accrual basis of accounting except interest on Mobilization/Equipment Advances is being accounted for on actual recovery basis.

Also the financial statements have been prepared in accordance with the standards on accounting prescribed in Companies (Accounting Standard) Rules, 2006 referred to in section 211(3C) of the Companies Act, 1956.

2 Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported accounts of revenues and expenses for the years presented.

3 Revenue recognition

a. Income from construction contracts is recognized by reference to the stage of completion of the contract activity as certified by the client.

b. Revenue from real estate projects is recognized on the basis of percentage of completion method of accounting

c. Income from industrial park project is recognized on the time of execution of registered sale deed / agreement to sale, in relation to sold areas only.

d. "Bill raised but unsettled" have been accounted for in the books at the value reasonably ascertained by the management on the date of raising the bill.

e. Claims in respect of civil contracts lodged/awarded with/by the respective Department which may pertains to earlier years have been accounted for in the books in the year of its certainty and at value /enhanced value reasonably ascertained by the management.

4. Joint Ventures

Revenues / Expenses from contracts executed by the Company in joint ventures on back-to-back arrangement basis are recognized on the same basis as similar contracts independently executed by the Company. Company''s share in the Profit / Loss from joint ventures is accounted as and when the same is determined by the joint venture.

5. Employee benefit

During the year under review the company has provided Bonus on accrual basis, Provident fund and ESI contribution for eligible employees has been provided on actual liability basis and Gratuity and Leave Encashment has been provided based on actuarial valuation.

6. Investment

Long term and short term investments both are stated at cost. No provision for diminution in coated investment is made because of its Long Term Nature.

7. Inventory

All inventories consisting of Work in Progress (Contract), Materials & Stores in hand and Real-estate division has been valued at cost as determined by the Management.

8. Foreign currency transactions

a. Transactions in foreign currencies are accounted for at exchange rate prevailing as on date of transaction.

b. All assets and liabilities in foreign currencies existing at balance sheet date are translated at the rate of balance sheet date.

9. Misc. expenditure

a) Preliminary expenses are amortized over a period of 10 years.

b) Increase in share capital expenses are amortized over a period of 5 years.

c) Amalgamation expenses are amortized over a period of 5 years.

d) All expenditure exceeding Rs 5,000/- incurred on any kind of software upto 31.03.2007, and its development termed as "Software Expenses" are amortized over a period of 5 years. However, w.e.f. 01.04.2007 expenditure on software were capitalized under Computer and accessories and was amortised through depreciation as per the S.L.M. method rates prescribed under Schedule XIV of the Companies Act 1956.

10. Fixed assets

Fixed Assets mainly comprised of Earthmoving Machinery and Motor Lorries has been stated at cost less accumulated depreciation. Cost includes purchase price and all other attributable cost of bringing the assets to working condition for intended use.

11. Depreciation

Depreciation is provided on straight line method as per rates specified in Schedule XIV to the Companies Act, 1956 subject to maximum of 95% of cost value.

12. Contingent liabilities

Contingent Liabilities not admitted by the company are not provided for in the accounts but are disclosed by way of other disclosures.

13. Taxation

Income Tax comprises current tax and deferred tax. Deferred tax assets and liabilities are recognized for the future tax consequences of timing differences subject to consideration of prudence. Deferred tax assets and liabilities are measured using the tax rates enacted or substantively enacted by the balance sheet date.

14. Earnings per share

The earnings considered in ascertaining company''s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year

15. Borrowing cost

Borrowing costs that are directly attributable to the acquisition or construction of a qualifying asset are considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

16. Prior Period Income/Expenses

Income/Expenses related to Prior Period are shown separately in "Notes" to financial Statement under their natural head and the impact of amounts is separately disclosed in other disclosures.

17. Impairment of assets

Pursuant to Accounting Standard (AS-28) on - Impairment of assets issued by the Institute of Chartered Accountants of India, the company assessed its fixed assets for impairment as at the year end and concluded that there has been no significant impaired fixed assets that needs to be recognized in the books of accounts.

18. Lease rental payments being operating lease is accounted for as an expenses on accrual basis.

19. Insurance claims lodged / Receivable with the respective departments has been accounted for in the books at the value either mutually settled or reasonably ascertained by the management.

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