Accounting Policies of Coromandel Engineering Company Ltd. Company

Mar 31, 2018

1. CORPORATE INFORMATION

Coromandel Engineering Company Limited (CEC) was incorporated as a Public Limited Company in the year 1947 and the Equity Shares of the Company are listed in BSE Ltd. CEC is in the business of Construction and Property Development.

2. APPLICATION OF NEW AND REVISED INDAS

The financial statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards) Rules 2015.

3. SIGNIFICANT ACCOUNTING POLICIES

3.1. Statement of Compliances

Upto the year ended March 31,2016, the financial statements has been prepared in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer Note : 41 for the details of first time adoption exemptions availed by the Company.

3.2. Basis of preparation and presentation of Financial Statements

The financial statements have been prepared and presented in accordance with the Indian Accounting Standards (Ind AS) as prescribed by the Companies (Indian Accounting Standards) Rules, 2015 and Schedule III of the Companies Act, 2013 ("the Act"). The financial statements are presented in Indian Ru pees (I NR), which is also the functional currency.

The financial statements have been prepared under the historical cost convention, except for certain financial instruments that are measured at fair values at the end of each reporting period, as explained in accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in Ind AS 2 or value in use as in Ind AS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

b. Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability , either directly or indirectly;

c. Level 3 inputs are unobservable inputs for the asset or liability;

3.3. Use of estimates and judgements

The preparation of the financial statements requires the management to make estimates, assumptions and judgements that affect the reported amount of assets and liabilities , income and expenses. Actual amounts could differ from these estimates.

Estimates and underlying assumptions are reviewed on an on going basis. Revisions to accounting estimates are recognized prospectively. Judgements are made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements.

3.4. Property, Plant and Equipment

Property, Plant and Equipment are valued at historical cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognised, where applicable; when the carrying value of fixed assets exceeds its market value or the value in use, whichever is higher.

3.5. Depreciation

Depreciation on tangible assets is provided as per revised useful life contained in Schedule II of the Companies Act, 2013.

3.6. Intangible Assets and amortization

Intangible assets (computer software) acquired separately are carried at cost less accumulated amortization. Amortization is recognized on a straight-line basis over their estimated useful life as determined under Schedule II of the Companies Act, 2013.

3.7. Deemed Cost on transition to Ind AS

On transition to Ind AS, the company has elected to continue with the carrying value of all its tangible and intangible assets recognized as of April 01, 2016 (transition date) measured as per the previous GAAP and used that carrying value as its deemed cost as of the transition date.

3.8. Investments in equity instruments at FVTOCI

On initial recognition, the Company had made an irrevocable election on instrument by instrument basis, pertaining to investment in equity instruments, to present the subsequent changes in fair value in other comprehensive income.

Dividend on these investments is recognized when the Company''s right to receive the dividend is established and recognized in profit and loss in "other income" head.

3.9. Inventories

Materials at site are valued at cost on Weighted Average Method. Work-in- Progress in respect of contracts till attaining a reasonable progress level and in property development, till significant risks and rewards of ownership are transferred, is valued at cost plus proportionate overheads. Unsold land is valued at cost.

3.10. Revenue Recognition

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the revenue can be measured, irrespective of when the payment is being made. Revenue is measured at the fair value of the billing whether received or to be received, net of taxes collected on behalf of the Government.

i) Revenue in respect of Construction Contracts, is recognised on percentage of completion method.

ii) In case of Property development, Percentage of completion is arrived at as the proportion of costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total project costs.

iii) In case of indivisible works contracts, revenues are recognized on percentage completion method, synchronised to the billing schedules agreed by the customers.

iv) Revenue in respect of billed and unbilled contracts/property development in progress includes recognised profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

v) Revenue from Property

Development activity is recognised when significant risks and rewards of ownership in the land and/ or building are transferred to the customers.

vi) Bill raised for value of work done in respect of completed and ongoing contracts including retention on bill is disclosed as proceeds on contracts.

vii) Sale of goods is recognized when the goods are delivered and titles have passed.

viii) Sales are recorded net of trade discounts/ rebates exclusive of taxes collected on behalf of Government.

3.11. Other Income

i) Dividend Income from investments is recognized when the right to receive payment has been established.

ii) Interest Income from a financial asset is recognized and accrued on time proportion basis

iii) Insurance claims are accounted on the basis of claims admitted and to the extent amount recoverable can be measured reliably

3.12. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. Borrowing costs attributable to unsold properties that are under development are inventorised and charged to revenue as and when they are sold. All other borrowing costs are recognized in profit and loss in the period they are incurred.

3.13. Employee Benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Company''s scheme, based on expected obligations on undiscounted basis.

b. Long term

i. Leave encashment

This is recognized at the present value of the estimated future cash outflows expected to be made by the Company in respect of services provided by the employees upto the reporting date.

ii. Provident Fund

Contributions are made to the Company''s Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the trust to the beneficiaries every year is notified by the Government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

iii. Superannuation

This is defined contribution plan. Fixed contributions to the Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India are charged to the Statement of Profit and Loss. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as an expense in the year incurred.

iv. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuation, as at the Balance Sheet date, determined by independent Actuary. Remeasurement, comprising actuarial gains and losses, the effect of the changes to asset ceiling (if any) and the return on plan assets (excluding net interest), is recognized in Other Comprehensive income in the period in which they occur and this is not reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of plan amendment.

3.14. Taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Current income tax assets and liabilities are measured at the amount expected to be received or payable to taxation authorities.

Deferred tax is recognized on temporary differences between the carrying amount of assets and liabilities in the financial statements and corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible tax differences to the extent that it is probable that taxable profit will be available against which those deductible temporary differences can be utilized.

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

3.15. Provisions & Contingent Liabilities/ Assets:

Provisions are recognized for known liabilities that can be measured where the Company has a present obligation as a result of past event. It is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of obligation.

Contingent Liabilities are disclosed for possible obligation which will be confirmed only by future events not wholly within the control of the Company or present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made. Contingent assets are not recognized in the financial statements.

3.16. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expenses or income related to the dilutive potential equity shares by the weighted average number of equity shares considered for basic earnings per share and the weighted average number of equity shares including those which could have been issued on the conversion of all dilative potential equity shares.

3.17. Cash flow statement

Cash flows are reported using the indirect method, whereby the profit/ (loss) and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The Cash flows from operating, investing and financing activities of the Company are segregated based on available information.

For this purpose, cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances with original maturity of three months or less from the date of acquisition, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

3.18. Financial instruments

Financial assets and liabilities are recognized where the Company becomes a party to the contractual provisions of the instruments. They are initially measured at fair value.

All regular way purchases or sale of financial assets are recognized or derecognized on a trade date basis. All recognized financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Debt and equity instruments issued by a Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definition of financial liabilities and equity instrument.

3.19. Operating cycle

Based on the nature of activities of the Company and the normal time between acquisition of assets and their realization into cash/cash equivalents, the operating cycle has been determined as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

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Mar 31, 2017

1. SIGNIFICANT ACCOUNTING POLICIES

1.1. Basis of preparation of Financial Statements

The financial statements have been prepared under the historical cost convention, on accrual basis and in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 / Companies Act 1956, as applicable. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

1.2. Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses for the year and disclosure of contingent liabilities as on the date of Balance Sheet. The estimates and assumptions used in the accompanying financial statements are based upon the management’s evaluation of relevant facts and circumstances as on the date of the financial statements. Actual amounts could differ from these estimates and the differences between the actual results and estimates are recognized in the periods in which the results are known/materialise.

1.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognised, where applicable; when the carrying value of fixed assets exceeds its market value or the value in use, whichever is higher.

1.4. Depreciation

Depreciation on Fixed Assets is provided as per revised useful life contained in Schedule II of the Companies Act, 2013.

1.5. Investments

All investments are valued at cost. Diminution in the value of investments, other than those which are temporary in nature, is provided for.

1.6. Inventories

Materials at site are valued at cost on Weighted Average Method. Work-in-Progress in respect of contracts till attaining a reasonable progress level and in property development, till significant risks and rewards of ownership are transferred , is valued at cost plus proportionate overheads. Unsold land is valued at cost .

1.7. Revenue Recognition

i) Revenue in respect of construction contracts, including Property Development activity, is recognised on percentage of completion method. Percentage of completion is arrived at as the proportion of contract costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total contract costs.

ii) Dividend from investments is accounted when right to receive is established.

1.8. Contract Revenue /Sales

i) Revenue in respect of billed and unbilled contracts/property development in progress includes recognised profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

ii) Revenue from Property Development activity is recognised when significant risks and rewards of ownership in the land and/or building are transferred to the customers.

iii) Bill raised for value of work done in respect of completed and ongoing contracts including retention on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/ rebates exclusive of VAT.

1.9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. Borrowing costs attributable to unsold properties that are under development are inventorised and charged to revenue as and when they are sold. All other borrowing costs are charged to revenue.

1.10. Employee Benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Company’s scheme, based on expected obligations on undiscounted basis.

b. Long term

i. Leave encashment

This is provided for based on the actuarial valuation using the projected unit credit method.

ii. Provident Fund

Contributions are made to the Company’s Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the trust to the beneficiaries every year is notified by the Government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

iii. Superannuation

This is defined contribution plan. Fixed contributions to the Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India are charged to the Statement of Profit and Loss. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as an expense in the year incurred.

iv. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuation, as at the Balance Sheet date, determined every year by LIC using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognised in the Statement of Profit and Loss.

1.11. Taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable incomes and accounting income calculated at the tax rates enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realised and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.

1.12. Provisions & Contingent Liabilities:

Provisions are recognized for known liabilities that can be measured where the Company has a present obligation as a result of past event. Contingent Liabilities are disclosed by way of note.

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Mar 31, 2016

1. CORPORATE INFORMATION

Coromandel Engineering Company Limited (CEC) was incorporated as a Public Limited Company in the year 1947 and the shares of the Company are listed in Bombay Stock Exchange (BSE). CEC is in the business of Construction and Property Development.

2. SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis of preparation of Financial Statements

The financial statements have been prepared under the historical cost convention, on accrual basis and in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 / Companies Act 1956, as applicable. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2. Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses for the year and disclosure of contingent liabilities as on the date of Balance Sheet. The estimates and assumptions used in the accompanying financial statements are based upon the management''s evaluation of relevant facts and circumstances as on the date of the financial statements. Actual amounts could differ from these estimates and the differences between the actual results and estimates are recognized in the periods in which the results are known/materialize.

2.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognized, where applicable; when the carrying value of fixed assets exceeds its market value or the value in use, whichever is higher.

2.4. Depreciation

Depreciation on Fixed Assets is provided as per revised useful life contained in Schedule II of the Companies Act, 2013.

2.5. Investments

All investments are valued at cost. Diminution in the value of investments, other than those which are temporary in nature, is provided for.

2.6. Inventories

Materials at site are valued at cost on Weighted Average Method. Work-in-Progress in respect of contracts till attaining a reasonable progress level and in property development, till significant risks and rewards of ownership are transferred, is valued at cost plus proportionate overheads. Unsold land is valued at cost.

2.7. Revenue Recognition

i) Revenue in respect of construction contracts, including Property Development activity, is recognized on percentage of completion method. Percentage of completion is arrived at as the proportion of contract costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total contract costs.

ii) Dividend from investments is accounted when right to receive is established.

2.8. Contract Revenue /Sales

i) Revenue in respect of billed and unbilled contracts/property development in progress includes recognized profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

ii) Revenue from Property Development activity is recognized when significant risks and rewards of ownership in the land and/or building are transferred to the customers.

iii) Bill raised for value of work done in respect of completed and ongoing contracts including retention on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/ rebates exclusive of VAT.

2.9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. Borrowing costs attributable to unsold properties that are under development are inventoried and charged to revenue as and when they are sold. All other borrowing costs are charged to revenue.

2.10. Employee Benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Company''s scheme, based on expected obligations on undiscounted basis.

b. Long term

i. Leave encashment

This is provided for based on the actuarial valuation using the projected unit credit method.

ii. Provident Fund

Contributions are made to the Company''s Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the trust to the beneficiaries every year is notified by the Government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

iii. Superannuation

This is defined contribution plan. Fixed contributions to the Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India are charged to the Statement of Profit and Loss. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as an expense in the year incurred.

iv. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuation, as at the Balance Sheet date, determined every year by LIC using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognized in the Statement of Profit and Loss.

2.11. Taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable incomes and accounting income calculated at the tax rates enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realized and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.

2.12. Provisions & Contingent Liabilities:

Provisions are recognized for known liabilities that can be measured where the Company has a present obligation as a result of past event. Contingent Liabilities are disclosed by way of note.

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Mar 31, 2015

2.1. Basis of preparation of Financial Statements

The financial statements are prepared under the historical cost convention, on accrual basis and in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 / Companies Act, 1956, as applicable.

2.2. Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses for the year and disclosure of contingent liabilities as on the date of Balance Sheet. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluation of relevant facts and circumstances as on the date of the financial statements. Actual amounts could differ from these estimates.

2.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognised, where applicable; when the carrying value of fixed assets exceeds its market value or the value in use whichever is higher.

2.4. Depreciation

Depreciation on Fixed Assets is provided as per revised useful life contained in Schedule II of the Companies Act, 2013 and is higher by Rs 272.30 lakhs as compared to depreciation calculated as per rates adopted till March 31, 2014 under Companies Act, 1956. In respect of fixed assets whose remaining revised useful life is Nil as on 1st April, 2014, a sum of Rs 41.67 lakhs (net of Deferred Tax of Rs. 18.66 lakhs) has been charged against retained earnings in line with the above Schedule II provisions.

2.5. Investments

All investments are valued at cost. Diminution in the value of investments other than temporary in nature is provided for.

2.6. Inventories

Materials at site are valued at cost on Weighted Average Method. Work-in-Progress in respect of contracts till attaining a reasonable progress level and in property development till significant risks and rewards of ownership are transferred is valued at cost plus proportionate overheads. Unsold land is valued at cost .

2.7. Revenue Recognition

i) Revenue in respect of construction contracts including Property Development activity is recognised on percentage of completion method. Percentage of completion is arrived at as the proportion of contract costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total contract costs.

ii) Dividend from investments is accounted when right to receive is established.

2.8. Contract Revenue /Sales

i) Revenue in respect of billed and unbilled contracts/property development in progress includes recognised profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

ii) Revenue from Property Development activity is recognised when significant risks and rewards of ownership in the land and/or building are transferred to the customer.

iii) Bill raised for value of work done in respect of completed and ongoing contracts including retention on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/ rebates exclusive of sales tax.

2.9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. All other borrowing costs are charged to revenue.

2.10. Employee Benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Company's scheme, based on expected obligations on undiscounted basis.

b. Long term

i. Long term employee benefits comprise of leave encashment which is provided for based on the actuarial valuation using the projected unit credit method.

ii. Provident Fund

Contributions are made to the Company's Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the trust to the beneficiaries every year is being notified by the Government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

iii. Superannuation

This is defined contribution plan. Fixed contributions to the Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India are charged to the Statement of Profit and Loss. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as an expense in the year incurred.

iv. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuation, as at the Balance Sheet date, determined every year by LIC using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognised immediately in the Statement of Profit and Loss

2.11. Taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable incomes and accounting income calculated at the tax rates enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realised and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.

2.12. Provisions & Contingent Liabilities:

Provisions are recognized for known liabilities that can be measured where the Company has a present obligation as a result of past event. Contingent Liabilities are disclosed by way of note.

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Mar 31, 2014

1.1. Basis of preparaton of Financial Statements

The financial statements are prepared under the historical cost conventon, on accrual basis and in accordance with the Generally Accepted Accountng Principles in India(Indian GAAP) and comply with the Accountng Standards prescribed in the Companies (Accountng Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2.2. Use of estmates

The preparaton of the financial statements in conformity with the generally accepted accountng principles requires the management to make estmates and assumptons that afect the reported amount of assets and liabilites as of the date of the financial statements and the reported amount of revenues and expenses for the year and disclosure of contngent liabilites as of the date of Balance Sheet. The estmates and assumptons used in the accompanying financial statements are based upon the management''s evaluaton of relevant facts and circumstances as of the date of the financial statements. Actual amounts could difer from these estmates.

2.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciaton. Cost includes related taxes, dutes, freight, insurance etc. atributable to acquisiton and installaton of assets and borrowing costs incurred up to the date of commencing operatons. Impairment loss is recognised, where applicable, when the carrying value of fixed

assets exceeds its market value or the value in use whichever is higher.

2.4 . Depreciaton

Depreciaton on Fixed Assets is provided on Straight Line Method as per Schedule XIV of the Companies Act, 1956. Depreciaton on impaired assets is provided by adjustng the depreciaton charge in the remaining periods so as to allocate the asset''s revised carrying amount over its remaining useful life. Intangible Assets are amortsed over a period of three years.

2.5. Investments

All investments are valued at cost. Diminuton in the value of investments other than temporary in nature is provided for.

2.6. Inventories

Materials at site are valued at cost on Weighted Average method. During the year, the Company changed the method of valuaton of Materials at site from FIFO method to Weighted Average method. If the Company had valued the materials at site in FIFO method, the closing stock as on 31st March 2014 would have been lower by Rs. 2.41 lakhs and loss for the year would be higher by Rs. 2.41 lakhs. Work-in-Progress in respect of contracts tll ataining a reasonable progress level and in property development tll significant risks and rewards of ownership are transferred is valued at cost.

2.7. Revenue Recogniton

i) Revenue in respect of constructon contracts including Property Development actvity is recognised on percentage of completon method. Percentage of completon is arrived at as the proporton of contract costs incurred (including directly atributable borrowing costs) up to the Balance Sheet date to the estmated total contract costs.

ii) Dividend from investments is accounted when received.

2.8. Contract Revenue /Sales

i) Revenue in respect of billed and unbilled contracts/property development in progress includes recognised profits based on percentage of completon and retenton on bills. Provision for expected losses is made irrespectve of percentage of completon.

ii) Revenue from Property Development actvity is recognised when significant risks and rewards of ownership in the land and/or building are transferred to the customer.

iii) Bill raised for value of work done in respect of completed and ongoing contracts including retenton on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/ rebates exclusive of sales tax.

2.9. Borrowing Costs

Borrowing costs that are atributable to the acquisiton or constructon of assets that necessarily takes substantal period of tme to get ready for intended use are treated as part of the cost of such assets. All other borrowing costs are charged to revenue.

2.10. Employee benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Company''s scheme, based on expected obligatons on undiscounted basis.

b. Long Term

i. Long term employee benefits comprise of leave encashment which is provided for based on the actuarial valuaton using the projected unit credit method.

ii. Provident Fund

Contributons are made to the Company''s Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the trust to the benefciaries every year is being notfed by the Government. The company has an obligaton to make good the shortall, if any, between the return from the investments of the trust and the notfed interest rate.

iii. Superannuaton

This is Defined contributon plan. Fixed contributons to the Superannuaton Fund administered by trustees and managed by Life Insurance Corporaton of India are charged to the profit and Loss Account.

The Company has no further obligatons for future superannuaton benefits other than its annual contributons and recognizes such contributons as an expense in the year incurred.

iv. Gratuity

The Company makes annual contributon to a Gratuity Fund administered by trustees and managed by Life Insurance Corporaton of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuaton, as at the Balance Sheet date, determined every year by LIC using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the efects of changes in actuarial assumptons, are recognised immediately in the profit and loss account.

2.11. taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for tming diferences arising between the taxable income and accountng income calculated at the tax rates enacted or substantally enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realised and are reviewed for appropriateness of their respectve carrying values at each Balance Sheet date.

2.12. Provisions & Contngent Liabilites:

Provisions are recognized for known liabilites that can be measured where the Company has a present obligaton as a result of past event. Contngent Liabilites are disclosed by way of note.

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Mar 31, 2012

1.1. Basis of preparation of Financial Statements

The financial statements are prepared under the historical cost convention, on accrual basis and in accordance with the Generally Accepted Accounting Principles in India(Indian GAAP) and comply with the Accounting Standards prescribed in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

1.2. Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the date of Balance Sheet. The estimates and assumptions used in the accompanying financial statements are based upon the management's evaluation of relevant facts and circumstances as of the date of the financial statements. Actual amounts could differ from these estimates.

1.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognised, where applicable, when the carrying value of fixed assets exceeds its market value or the value in use whichever is higher.

1.4. Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method as per Schedule XIV of the Companies Act, 1956. Depreciation on impaired assets is provided by adjusting the depreciation charge in the remaining periods so as to allocate the asset's revised carrying amount over its remaining useful life. Intangible Assets are amortised over a period of three years.

1.5 Investments

All investments are valued at cost. Diminution in the value of investments other than temporary in nature is provided for.

1.6. Inventories

Materials at site are valued at cost on FIFO method. Work-in-Progress in respect of contracts till attaining a reasonable progress level and in property development till significant risks and rewards of ownership are transferred is valued at cost.

1.7. Revenue Recognition

i) Revenue in respect of construction contracts including Property Development activity is recognised on percentage of completion method. Percentage of completion is arrived at as the proportion of contract costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total contract costs.

ii) Dividend from investments is accounted when received.

1.8. Contract Revenue /Sales

i) Revenue in respect of billed and unbilled contracts/property development in progress includes recognised profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

ii) Revenue from Property Development activity is recognised when significant risks and rewards of ownership in the land and/or building are transferred to the customer.

iii) Bill raised for value of work done in respect of completed and ongoing contracts including retention on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/ rebates exclusive of sales tax.

1.9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. All other borrowing costs are charged to revenue.

1.10. Employee Benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Company's scheme, based on expected obligations on undiscounted basis.

b. Long term

i. Long term employee benefits comprise of leave encashment which is provided for based on the actuarial valuation using the projected unit credit method.

ii. Provident Fund

Contributions are made to the Company's Employees Provident Fund Trust in accordance with the fund rules. The interest rate payable by the trust to the beneficiaries every year is being notified by the Government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

iii. Superannuation

This is defined contribution plan. Fixed contributions to the Superannuation Fund administered by trustees and managed by Life

Insurance Corporation of India are charged to the Profit and Loss Account. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as an expense in the year incurred.

iv. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuation, as at the Balance Sheet date, determined every year by LIC using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognised immediately in the profit and loss account.

1.11. Taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable income and accounting income calculated at the tax rates enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is a virtual certainty that they will be realised and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.

1.12. Provisions & Contingent Liabilities:

Provisions are recognized for known liabilities that can be measured where the Company has a present obligation as a result of past event. Contingent Liabilities are disclosed by way of note.

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Mar 31, 2011

1.1. Basis of preparation of Financial Statements

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India and comply in all material respects with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

1.2. Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported

amount of revenues and expenses for the year and disclosure of contingent liabilities as of the date of Balance Sheet. The estimates and assumptions used in the accompanying financial statements are based upon the managements evaluation of relevant facts and circumstances as of the date of the financial statements. Actual amounts could differ from these estimates.

1.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognised, where applicable, when the carrying value of fixed assets exceeds its market value or the value in use whichever is higher.

1.4 Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method as per Schedule XIV of the Companies Act, 1956. Depreciation on

impaired assets is provided by adjusting the depreciation charge in the remaining periods so as to allocate the assets revised carrying amount over its remaining useful life. Intangible Assets are amortised over a period of three years.

1.5 Investments

All investments are valued at cost. Diminution in the value of investments other than temporary in nature is provided for.

1.6. Inventories

Materials at site are valued at cost on FIFO method. Work-in-Progress in respect of contracts till attaining a reasonable progress level and in property development till significant risks and rewards of ownership are transferred is valued at cost.

1.7. Revenue Recognition

I) Revenue in respect of construction contracts is recognised on percentage of completion method. Percentage of completion is arrived at as the proportion of contract costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total contract costs.

ii) Dividend from investments is accounted when received.

1.8. Contract Revenue/Sales

i) Revenue in respect of billed and unbilled contracts/ property development in progress includes recognised profits based on percentage of completion, and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

ii) Revenue from Property Development activity is recognised when significant risks and rewards of ownership in the land and/or building are transferred to the customer.

iii) Bill raised for value of work done in respect of completed and ongoing

contracts including retention on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/rebates exclusive of sales tax.

1.9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. All other borrowing costs are charged to revenue.

1.10 Employee Benefits

a. Short Term

Short term employee benefits, including accumulated compensated absences, are recognized as an expense as per the Companys scheme, based on expected obligations on undiscounted basis.

b. Long term

i. Long term employee benefits comprise of leave encashment which is provided for based on the actuarial valuation using the projected unit credit method.

ii. Provident Fund

Contributions are made to the Companys Employees Provident Fund Trust in accordance with the fund rules. The interest rate is payable by the trust to the beneficiaries every year is being notified by the Government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the trust and the notified interest rate.

iii. Superannuation

This is defined contribution plan. Fixed

contributions to the Superannuation Fund administered by trustees and managed by Life Insurance Corporation of India are charged to the Profit and Loss Account. The Company has no further obligations for future superannuation benefits other than its annual contributions and recognizes such contributions as an expense in the year incurred.

iv. Gratuity

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life Insurance Corporation of India (LIC). Liability for future gratuity benefits is accounted based on actuarial valuation, as at the Balance Sheet date, determined every year by LIC using projected unit credit method. Actuarial gains and losses, comprising of experience adjustments and the effects of changes in actuarial assumptions, are recognised immediately in the profit and loss account.

1.11. Taxation

Provision for current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws. Provision for deferred tax is made for timing differences arising between the taxable incomes and accounting income calculated at the tax rates enacted or substantially enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is a virtual certainly that they will be realised and are reviewed for appropriateness of their respective carrying values at each Balance Sheet date.

1.12 Provisions & Contingent Liabilities:

Provisions are recognized for known liabilities that can be measured where the Company has a present obligation as a result of past event. Contingent Liabilities are disclosed by way of note.

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Mar 31, 2010

1.1. Basis of preparation of Financial Statements

The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India and comply in all material respects with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

1.2. Use of estimates

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the date of the financial statements and the reported amount of revenues and expenses for the year and disclosure of contingent liabilities as of the date of Balance Sheet. The estimates and assumptions used in the accompanying financial statements are based upon the managements evaluation of relevant facts and circumstances as of the date of the financial statements. Actual amounts could differ from these estimates.

1.3. Fixed Assets

Fixed Assets are carried at cost less accumulated depreciation. Cost includes related taxes, duties, freight, insurance etc. attributable to acquisition and installation of assets and borrowing costs incurred up to the date of commencing operations. Impairment loss is recognised, where applicable, when the carrying value of fixed assets exceeds its market value or the value in use whichever is higher.

1.4 Depreciation

Depreciation on Fixed Assets is provided on Straight Line Method as per Schedule XIV of

the Companies Act, 1956. Depreciation on impaired assets is provided by adjusting the depreciation charge in the remaining periods so as to allocate the assets revised carrying amount over its remaining useful life. Intangible Assets are amortised over a period of three years.

1.5 Investments

All investments are valued at cost. Diminution in the value of investments other than temporary in nature is provided for.

1.6. Inventories

Materials at site are valued at cost on FIFO method. Work-in-Progress in respect of contracts till attaining a reasonable progress level and in property development till significant risks and rewards of ownership are transferred is valued at cost.

1.7. Revenue Recognition

i) Revenue in respect of construction contracts is recognised on percentage of completion method. Percentage of completion is arrived at as the proportion of contract costs incurred (including directly attributable borrowing costs) up to the Balance Sheet date to the estimated total contract costs.

ii) Dividend from investments is accounted when received.

1.8. Contract Revenue/Sales

i) Revenue in respect of billed and unbilled contracts/property development in progress includes recognised profits based on percentage of completion, and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

ii) Revenue from Property Development activity is recognised when significant risks and rewards of ownership in the land and/ or building are transferred to the customer.

iii) Bill raised for value of work done in respect of completed and ongoing contracts including retention on bill is disclosed as proceeds on contracts.

iv) Sale of goods and services are recognized when the goods are delivered or services rendered.

v) Sales are recorded net of trade discounts/rebates exclusive of sales tax.

1.9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of assets that necessarily takes substantial period of time to get ready for intended use are treated as part of the cost of such assets. All other borrowing costs are charged to revenue.

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Mar 31, 2000

1. Basis of Accounting

The Income and Expenditure are accounted on accrual basis except dividend income and technical knowhow payment which are accounted on cash basis. All Assets and Liabilities of the company are recorded at historical cost, save as regards item no. 7[c] infra. These costs are not adjusted to reflect the changing value in the purchasing power of the money.

2. Revenue Recognition

i) Sale of products and services are recognised when the products are delivered or services rendered and are recorded net of trade discounts and rebates.

ii) Proceeds on contract jobs are reckoned after adjusting for retention on bills.

iii a) Proceeds in respect of Property Development contracts are accounted in respect of completed projects, and completed flats of on-going projects. The direct expenses incurred on incomplete projects and on incomplete flats of on-going projects are taken as work-in-progress.

b) Revenue from Long Term Construction contract is recognised on the basis of value of work done billed to the customers.

iv) Dividend from investments is accounted only when received.

3. Fixed Assets

i) All Fixed Assets are carried at historical costs. These costs are not adjusted to reflect the changing value in the purchasing power of money and fluctuation in foreign currencies, save as regards item No. 7(c) infra.

ii) Depreciation on Fixed Assets is provided on Straight Line Method as per schedule XIV of the Companies Act, 1956 at the revised rates as per Notification issued by the Department of Company affairs, Government of India dated 16th December 1993, from 1st April 1993 on all assets including assets acquired prior to the date of said Notification.

4. Investments

All Investments are valued at cost.

5. Inventories

i) The stock of Raw Materials, Stores Materials, Materials at Site and Trading Goods are valued at cost (Net of credit under MODVAT Scheme) on FIFO method.

ii) Stock of Work-in-Progress and Finished Goods are valued at cost including the relevant appropriate overheads.

6. Sales

Sales are exclusive of Excise Duty and Sales Tax.

7. Foreign Currency Transactions.

a) Transaction in foreign exchange other than those covered by Forward contracts are accounted at the exchange rates prevailing on the dates the transactions took place.

b) The additional payments due to fluctuation in exchange rates on repayment of instalments during the year, in respect of Foreign Currency Loans taken for acquisition of Plant and Machinery in earlier years, is included in carrying cost of Plant & Machinery under "addition".

c) Transactions relating to Overseas Construction Division have been incorporated as under:

i) Opening Fixed Assets at the rate at which they were originally converted; Additions to Fixed Assets at the rate prevailing at the end of the year.

ii) Inventories at the beginning of the year, at the rates prevailing as at the beginning of the year.

iii) All other assets including Closing Inventories and Liabilities, at the rate prevailing at the end of the year.

(iv) Net Revenues, at the rates prevailing at the end of the year.

(v) The exchange difference on conversion is charged or credited to Profit & Loss Account under Exchange Fluctuation on conversion of Overseas Branch Net Assets.

8. Research & Development Expenses

Revenue Expenditure on Research and Development is charged to Profit & Loss Account in the year in which it is incurred.

9. Retirement Benefit

(i) Liability towards Gratuity in respect of eligible employees has been provided on the basis of annual contribution determined by acturaial valuation provided by Life Insurance Corporation of India under group Gratuity scheme.

(ii) Expenditure on Leave encashment, Medical Benefits and Leave Travel Allowance are accounted on cash basis. Even though non provision for leave encashment is not in accordance with Accounting Standard 15, accounting on cash basis is considered more appropriate.

10. EXCISE DUTY

(i) Excise Duty on Goods manufactured by the Company is accounted at the time of clearance.

ii) Modvat Credits availed for Raw Materials and Capital Goods are adjusted against cost of Raw Materials and Capital Goods respectively.

Signatures to Schedules 1 to 20