Accounting Policies of J Kumar Infraprojects Ltd. Company

Mar 31, 2023

Notice

NOTICE is hereby given that the 24^th (Twenty-Fourth)
Annual General Meeting (“AGM”) of the Members of
J. Kumar Infraprojects Limited (“the Company”) will be held
on Tuesday, September 26, 2023 at 11:00 A.M. (I.S.T.) at GMS
Community Hall, Sitladevi Complex, 1^st Floor, D.N. Nagar,
Opp. Indian Oil Nagar on link Road, Andheri (W), Mumbai
400 053, Maharashtra to transact the following businesses:

ORDINARY BUSINESS:

1. To receive, consider and adopt the Audited Financial
Statements of the Company for the financial year
ended March 31, 2023 together with the report of
the Board of Directors and Auditors'' thereon and in
this regard, to consider and if thought fit, to pass the
following resolution as an Ordinary Resolution:

“RESOLVED THAT the Audited Financial Statements
of the Company for the financial year ended March 31,
2023 together with the report of the Board of Directors
and Auditors thereon as circulated to the Members, be
and are hereby received, considered and adopted.”

2. To declare dividend on Equity Shares for the financial
year ended March 31, 2023 and in this regard, to
consider and if thought fit, pass the following resolution
as an Ordinary Resolution:

“RESOLVED THAT as recommended by the Board of
Directors in its meeting held on May 23, 2023, dividend
at the rate of H 3.50/- (Rupees Three and Fifty Paise
only) per equity share of face value of H 5/- (Five
Rupees) each fully paid-up of the Company be and is
hereby declared for the financial year ended March 31,
2023 and the said dividend be paid out of the profits
of the Company for the financial year ended March 31,
2023 to eligible shareholders.”

3. To appoint Dr. Nalin J. Gupta (DIN:00627832) who
retires by rotation as Director and being eligible offers
himself for re-appointment as a Director and in this
regard, to consider and if thought fit, pass the following
resolution as an Ordinary Resolution:

“RESOLVED THAT in accorda nce with provisions
of Section 152 and other applicable provisions of
the Companies Act 2013 (including any statutory
modification(s) or re-enactment(s) thereof, for the time
being in force), Dr. Nalin J. Gupta (DIN:00627832) who
retires by rotation as a Director at this Annual General
Meeting and being eligible has offered himself for re¬
appointment, be and is hereby re-appointed as a
Director of the Company whose period of office shall be
liable for determination by retirement of Directors by
rotation.”

SPECIAL BUSINESS:

4. To ratify the remuneration payable to M/s. Vaibhav P.
Joshi & Associates, Cost Accountants, of the Company
for the Financial Year ending March 31, 2024 and
in this regard, to consider and if though fit, pass the
following resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section
148 and all other applicable provisions of the Companies
Act, 2013 and the Companies (Audit and Auditors)
Rules, 2014 (including any statutory modification(s)
or re-enactment thereof, for the time being in force),
M/s. Vaibhav P. Joshi & Associates, Cost Accountant,
Cost Auditors (Membership Number: 15797) who
have been appointed by the Board of Directors of the
Company, to conduct the audit of the cost records of
the Company for the Financial Year ending March
31, 2024, be paid the remuneration of H 7,50,000/-
(Rupees Seven Lacs Fifty Thousand only) plus taxes as
applicable, be and is hereby ratified.”

“RESOLVED FURTHER THAT the Board of Directors of
the Company be and is hereby authorized to do all acts
and take all such steps as may be necessary, proper or
expedite to give effect to this resolution.”

5. To consider and approve for giving authorization
to Board of Directors under section 180(1)(c) of the
Companies Act, 2013 upto an aggregate limit of J
7,500 Crores and in this regard, to consider and, if
thought fit, to pass with or without modification(s), the
following resolutions as Special Resolution:

“RESOLVED THAT pursuant to the provisions of
Section 180(1)(c) of the Companies Act, 2013 and all
other applicable provisions, if any, of the Companies
Act, 2013 (including any statutory modification(s) or
reenactment(s) thereof, for the time being in force) and
the Memorandum and Articles of Association of the
Company, and in supersession of all earlier resolutions
passed in terms of Section 180(1)(c) of the Companies
Act, 2013, consent of the Members of the Company,
be and is hereby accorded to the Board of Directors
of the Company to borrow any sum or sum of monies
from time to time, in any form including but not limited
to by way of loans, including inter corporate deposits(s),
credit facilities, by issue of debentures (redeemable or
otherwise) or bonds or in form of guarantee, or in any
other form, on such terms and conditions as the Board
may deem fit, in both domestic and foreign currency,
from banks, financial institutions, and other sources for
the purpose of financing working capital requirements
as also for acquisition of capital assets and / or for the

that the money or monies to be borrowed together
with monies already borrowed by the Company (apart
from temporary loans obtained or to be obtained from
the bankers in the ordinary course of business) shall
not exceed at any point of time a sum aggregating to
H 7,500 Crores (Rupees Seven Thousand Five Hundred
Crores Only), excluding any interest on such borrowings
and such borrowings will exceed the aggregate of the
paid up capital of the Company and its free reserves,
that is to say, reserves not set apart for any specific
purpose.”

“RESOLVED FURTHER THAT for the purpose of giving
effect to this resolution, the Board be and is hereby
authorised to approve, finalise, modify, settle and
execute such documents / deeds /writings / papers
/ agreements as may be considered necessary or
desirable by the Board and to do all such acts, deeds
and things, as it may in its absolute discretion deem
necessary or desirable.”

“RESOLVED FURTHER THAT any Directors(s) of the
Company be and is/are hereby severally authorised
for and on behalf of the Company to do all such acts,
deeds, matters and things as may be necessary,
proper, expedient, or incidental to give effect to this
resolution.”

6. Authorizing the Board of Directors of the Company
under section 180(1)(a) of the Companies Act, 2013,
up to a total limit of J 7,500 Crores and in this regard,
to consider and, if thought fit, to pass with or without
modification(s), the following resolutions as Special
Resolution:

“RESOLVED THAT pursuant to the provisions of
Section 180(l)(a) of the Companies Act, 2013 and all
other applicable provisions, if any, of the Companies
Act, 2013 (including any statutory modification(s) or
reenactment(s) thereof, for the time being in force)
and the Memorandum and Articles of Association
of the Company, and in supersession of all earlier
resolutions passed in terms of Section 180(1)(a) of the
Companies Act, 2013, consent of the Members of the
Company, be and is hereby accorded to the Board
of Directors of the Company to create such charges
and/or mortgages and hypothecations in addition to
the existing charges, mortgages and hypothecations

created by the Company on such terms and conditions
and at such times and in such form and manner and
with such ranking as to priority as the Board may think
fit, on any of the Company''s moveable / immoveable
properties and/ or assets, wheresoever situated, both
present and future comprised in any undertaking or
undertakings of the Company, as the case may be,
in favour of the Lenders viz. Financial/lnvestment
Institutions, Banks and Trustees for the holders of
debentures/bonds/other debt instruments to secure
the repayment of loans/borrowings sanctioned and/ or
to be sanctioned by them from time to time, in foreign
currency and / or rupee currency and / or by way of
debt instruments issued / to be issued by the Company,
for a sum not exceeding H 7,500 Crores (Rupees Seven
Thousand Five Hundred Crores Only) in aggregate at
any time as per the approval of the shareholders under
Section 180(1)(c) of the Companies Act, 2013.”

“RESOLVED FURTHER THAT the Board be and is hereby
authorised to finalise with the Lenders agreements
and other documents, if any, necessary for creating
the mortgage(s) and/or charge(s), hypothecation(s) as
aforesaid, and do all such acts, deeds and things and to
execute all such documents, deeds and instruments in
writing as may be required, incidental and/or expedient
for giving effect to this resolution and to resolve any
question relating thereto, or otherwise considered by
the Board to be in the best interest of the Company.”

“RESOLVED FURTHER THAT any Directors(s) of the
Company be and is/are hereby severally authorised
for and on behalf of the Company to do all such acts,
deeds, matters and things as may be necessary,
proper, expedient, or incidental to give effect to this
resolution.”

By the order of the Board
For J. Kumar Infraprojects Limited

Place: Mumbai Poornima Reddy

Date: August 08, 2023 Company Secretary

Registered Off: J. Kumar House, CTS No. 448, 448/1,

449, Subhash Road, Vile Parle (East), Mumbai - 400 057,

Maharashtra, India

NOTES:

1. The relative Explanatory Statement pursuant to
Section 102 of the Companies Act, 2013 (“Act”) setting
out material facts concerning the business under Item
Nos. Item Nos. 3, 4, 5 and 6 of the Notice, is annexed
hereto alongwith the relevant details, pursuant to
Regulations 36(3) of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015
(“SEBI Listing Regulations/Listing Regulations”) and
1.2.5 of Secretarial Standard on General Meetings
(SS-2) issued by the Institute of Company Secretaries
of India, in respect of Directors seeking appointment/
re-appointment as Director at AGM, is annexed hereto
as “Annexure” to this Notice. In terms of Section 152 of
the Act, Dr. Nalin J. Gupta (Director) retires by rotation
at the meeting and being eligible, offer himself for
reappointment. The Nomination and Remuneration
Committee of the Board of Directors and the Board
of Directors of the Company recommended for re¬
appointment.

2. A member entitled to attend and vote at the meeting
is entitled to appoint a proxy to attend and vote
instead of himself. The proxy need not be a member of
the Company.

The proxy form duly completed and signed must be
deposited with the Company at its Registered Office not
later than 48 hours before the time of commencement
of the meeting.

No instrument of proxy shall be valid unless:

i) it is signed by the member or by his/her attorney
duly authorised in writing or, in the case of joint
holders, it is signed by the member first named
in the register of members or his/her attorney
duly authorised in writing or, in the case of body
corporate, it is executed under its common seal,
if any, or signed by its attorney duly authorised in
writing; provided that an instrument of proxy shall
be sufficiently signed by any member, who for any
reason is unable to write his/her name, if his/her
thumb impression is affixed thereto, and attested
by a judge, magistrate, registrar or sub-registrar of
assurances or other government gazetted officers
or any officer of a Nationalised Bank.

ii) It is duly stamped and deposited at the Registered
Office of the Company not less than 48 hours before
the time fixed for the meeting, together with the
power of attorney or other authority (if any), under
which it is signed or copy of that power of attorney
certified by a notary public or a magistrate unless
such a power of attorney or the other authority
is previously deposited and registered with the
Company/ Registrar and share Transfer Agent.

A person can act as a proxy on behalf of members not
exceeding (50) fifty and holding in the aggregate not

more than (10) ten percent of the total share capital
of the Company carrying voting rights. A member
holding more than (10) ten percent of the total share
capital of the Company carrying voting rights may
appoint a single person as proxy for any other person
or shareholder.

Dr. Nalin J. Gupta is interested in the Ordinary Resolution
set out in Item No 3 of the Notice with regard to the his
re-appointment.

Mr. Jagdishkumar M. Gupta, Executive Chairman and
Mr. Kamal J. Gupta, Managing Director being related
to Dr. Nalin J. Gupta and hence may be deemed to be
interested in the resolution set out at Item No. 3 of the
Notice.

Save and except the above, none of the Directors/Key
Managerial Personnel of the Company/ their relatives
are, in any way, concerned or interested, financially or
otherwise, in the Ordinary Business set out under Item
No. 1 to 6 of the Notice

3. Members who hold shares in dematerialized form are
requested to write their Client ID and DP ID Numbers
and those who hold shares in physical form are
requested to write their Folio Number in the attendance
slips and proxy form for attending the Meeting and
bring copy of Annual Report and their attendance slip
duly filled & signed at the meeting. Attendance slip and
proxy form are annexed to this report.

In case of joint holder attending the meeting, only such
joint holder who is higher in the order of name will be
entitled to vote.

4. Corporate Members intending to send their authorized
representatives to attend the AGM are requested to
send a certified copy of the Board Resolution to the
Company, authorizing them to attend and vote on their
behalf at the AGM.

5. The Register of Members and Share Transfer Books
of the Company will be closed from Friday September
15, 2023 to Tuesday, September 26, 2023 (both days
inclusive)

6. Any person who acquires shares of the Company and
becomes a Member of the Company after sending of
the Notice and holding shares as of the cut-off date i.e.
Tuesday, September 19, 2023, may obtain the login ID
and password by sending a request at evoting@nsdl.
co.in or from Registrar and Share Transfer Agent (“RTA”)
or by e-mail request on [email protected]
However, if he / she is already registered with NSDL for
remote e-voting then he / she can use his / her existing
user ID and password for casting the vote.

7. Notice of the AGM along with the Annual Report for
FY 2022-23 is being sent by electronic mode to those
Members whose email addresses are registered with
the Company/ Depositories, for members who have not

registered their email address, physical copies of the
Annual Report for 2023 is being sent in the permitted
mode on their request. Members may note that the
Notice and Integrated Annual Report for FY 2022¬
23 will also be available on the Company''s website
www.ikumar.com, websites of the Stock Exchanges

i.e. BSE Limited and National Stock Exchange of India
Limited at www.bseindia.com and www.nseindia.com
respectively and on the website of NSDL by email
at www.evoting.nsdl.com and the website of RTA
at www.bigshareonline.com.

8. The Register of Directors and Key Managerial Personnel
and their shareholding, maintained under Section 170
of the Act and other relevant documents referred to
in the Notice are open for inspection by the members
at the Registered Office of the Company on all working
days (except Saturdays, Sundays and Public Holidays)
during business hours up to the date of the Meeting.
The aforesaid documents will be also available for
inspection by members at the Meeting.

9. As per the provisions of Section 72 of the Act, the facility
for making nomination is available for the Members in
respect of the shares held by them. Members who have
not yet registered their nomination are requested to
register the same by submitting Form No. SH - 13. The
said form can be downloaded from RTA website www.
bigshareonline.com. Members are requested to submit
the said details to their Depository Participants (“DPs”)
in case the shares are held by them in electronic form
and to Bigshare Services Pvt. Ltd in case the shares are
held by them in physical form.

10. Securities and Exchange Board of India (“SEBI”) has
mandated that securities of listed companies can be
transferred only in dematerialized form w.e.f. April 1,
2019. Accordingly, the Company/RTA has stopped
accepting any fresh lodgment of transfer of shares in
physical form. Members holding shares in physical form
are advised to avail of the facility of dematerialization.

11. At the 22^nd AGM held on September 21, 2021 the
members had approved re-appointment of M/s. Todi
Tulsyan & Co., Chartered Accountants (Firm Registration
Number 002180C) as Statutory Auditors of the
Company to hold office for a period of five years from the
conclusion of that AGM till the conclusion of the 27^th AGM.
Hence no resolution is being proposed for ratification of
reappointment of statutory auditors at this AGM

12. The members who would like to ask questions/
express their views on the items of the business to be
transacted at the meeting can send in their questions/
comments in advance mentioning their name, demat
account number/ folio number, email id, mobile number
at [email protected]. The same will be
replied by the Company suitably during the AGM and
subsequently to those Members by e-mail.

13. The route map showing directions to reach the venue

of the AGM is annexed.

14. Members are requested to intimate changes, if any,
pertaining to their name, postal address, e-mail address,
telephone/mobile numbers, Permanent Account Number
(PAN), mandates, nominations, power of attorney, bank
details such as, name of the bank and branch details,
bank account number, MICR code, IFSC code, etc.:

a. For shares held in electronic form: to their
Depository Participant

The Company will not entertain any direct request
from such Members for change of address,
transposition of names, deletion of name of
deceased ioint holder and change in the bank
account details. While making payment of
Dividend, the RTA is obliged to use only the data
provided by the Depositories, in case of such
demateralized shares.

b. For shares held in physical form: to the Company/
RTA in prescribed Form ISR-1 and other forms
pursuant to SEBI Circular No. SEBI/HO/MIRSD/

MIRSD-PoD-1/P/CIR/2023/37 dt. March 16,
2023. Members may also refer to Frequently
Asked Questions (“FAQs”) on RTA website at www.
bigshareonline.com

c. Members who have not yet registered their e-mail
addresses are requested to register the same
with their DPs'' in case the shares are held by them
in electronic form and with the Company/RTA in
case the shares are held by them in physical form.
Members holding shares in physical form are
requested to dematerialize their holdings at the
earliest.

15. Freezing of Folios without PAN, KYC details
and Nomination.

SEBI vide its circular dated November 03, 2021 read
with circular dated December 14, 2021 and March 2023
Circular have made it mandatory for the shareholders
holding securities in physical form to furnish PAN, KYC
and Nomination details to the RTA of the Company
latest by September, 2023, failing which the said
shareholder folios shall be frozen by the RTA. In this
regard relevant forms ISR-1, 2 and 3 are available on
the website of the RTA at www.bigshareonline.com. All
the KYC required documents/details shall be provided
to Company/RTA at [email protected] and
send the documents at the address of registered
office of the Company or RTA. The shareholders can
download the forms mentioned in SEBI circular from
the website of the RTA at www.bigshareonline.com. The
shareholders are requested to complete their KYC at
the earliest.

The security holder(s) whose folio(s) have been frozen
shall be eligible:

a. to lodge grievance or avail any service request
from the RTA only after furnishing the complete
documents / details like Pan/KYC detail.

b. for any payment including dividend, interest or
redemption payment in respect of such frozen
folios, only through electronic mode with effect
from April 01, 2024.

c. Frozen folios shall be referred by the RTA /
Company to the administering authority under the
Benami Transactions (Prohibitions) Act, 1988 and/
or Prevention of Money Laundering Act, 2002, if
they continue to remain frozen as on December
31, 2025.

d. The RTA shall revert the frozen folios to normal
status upon receipt of all the documents/details
like PAN/KYC detail.

16. Members are requested to address all correspondence,
including pending dividend related matters, to the RTA,
M/s. Bigshare Services Private Limited Office No S6-2,
6^th Floor, Pinnacle Business Park, Next to Ahura Centre,
Mahakali Caves Road, Andheri (East) Mumbai - 400
093, Maharashtra by email at investor@biqshareonline.
com or by post.

17. Members wishing to claim dividends that remain
unclaimed a re requested to correspond with the RTA
as mentioned above, or with the Company Secretary,
at the Company''s registered office. Members are
requested to note that dividends that are not
claimed within seven years from the date of transfer
to the Company''s Unpaid Dividend Account will be
transferred to the Investor Education and Protection
Fund (IEPF). Accordingly the amount of dividend which
remained unpaid/unclaimed for a period of 7 years
for the year 2014-15 has already been transferred
to IEPF. Shareholders who have not encashed their
dividend warrant(s), for the years 2015-16, 2016-17,
2017-18, 2018-19, 2019-20, 2020-21 and 2022¬
23 are requested to make claim with the RTA of the
Company immediately. The Members, whose unclaimed
dividends/shares have been transferred to IEPF, may
claim the same by making an online application to the
IEPF Authority in web Form No. IEPF-5 available on
www.iepf.gov.in.

It is in the Members'' interest to claim any un-encashed
dividends and for future, opt for Electronic Clearing
Service, so that dividends paid by the Company are
credited to the Members'' account on time. Members
who have not yet encashed the dividend warrants,
from the financial year ended March 31, 2015, onwards
are requested to forward their claims to the Company''s
RTA. Members are requested to contact the Company''s
RTA to claim the unclaimed/ unpaid dividends at their
address as mentioned in the Notice.

Further Pursuant to the Rule 5(8) of the Investor
Education and Protection Authority (Accounting, Audit,

Transfer and Refund) Rules, 2016, the Company has
uploaded details of unpaid and unclaimed amounts
lying with the Company as on September 20, 2022
(date of last Annual General Meeting) on its website
at www.ikumar.com and also on the website of the
Ministry of Corporate Affairs.

18. In compliance with Section 108 of the Act, read with
the corresponding rules, and Regulation 44 of the SEBI
Listing Regulations, the Company has provided a facility
to its members to exercise their votes electronically
through the electronic voting (“e-voting”) facility
provided by the National Securities Depository Limited
(“NSDL”). Members who have cast their votes by remote
e-voting prior to the AGM may participate in the AGM
but shall not be entitled to cast their votes again.
The manner of voting remotely by members holding
shares in dematerialized mode, physical mode and for
members who have not registered their email addresses
is provided in the instructions for e-voting section which
forms part of this Notice. The Board has appointed Mr.
Dhrumil M. Shah, Partner of Dhrumil M. Shah & Co. LLP,
Practicing Company Secretaries, as the Scrutinizer to
scrutinize the e-voting in a fair and transparent manner.

19. The e-voting period commences on Saturday,
September 23, 2023 (9:00 A.M. IST) and ends on
Monday September 25, 2023 (5:00 P.M. IST). During
this period, members holding shares either in physical
or dematerialized form, as on cut-off date, i.e. as on
Tuesday, September 19, 2023, may cast their votes
electronically. The e-voting module will be disabled
by NSDL for voting thereafter. A member will not be
allowed to vote again on any resolution on which vote
has already been cast. The voting rights of members
shall be proportionate to their share of the paid-up
equity share capital of the Company as on the cut-off
date, i.e. as on Tuesday, September 19, 2023.

20. Dividend as recommended by the Directors, if declared
and approved by the Shareholders at the AGM will
be paid after Tuesday, September 26, 2023 to the
members whose names appear in the Company''s
Register of Members as on Thursday, September 14,
2023 (In respect of shares held in physical form) and
to those “deemed members” whose names appear in
the statement of beneficial ownership furnished by
National Securities Depository Limited (NSDL) and
Central Depository Services (India) Limited (CDSL) as
of the close of Business hours of Thursday, September
14, 2023 (in respect of shares held in electronic form).

21. The Scrutinizer will submit his report to the Chairman
of the Company (‘the Chairman'') or to any other person
authorized by the Chairman after the completion of the
scrutiny of the e-voting (votes casted during the AGM and
votes casted through remote e-voting), not later than 48
hours from the conclusion of the AGM. The result declared
along with the Scrutinizer''s report shall be communicated
to the stock exchanges, NSDL, and RTA and will also be
displayed on the Company''s and NSDL website, www.
ikumar.com & www.evoting.nsdl.com

22. The instructions for members for remote e-voting and joining general meeting are stated clearly after explanatory
statement.

23. Pursuant to the requirement of Income Tax Act, 1961, the Company will be required to withhold taxes at the prescribed
rates on the dividend paid to its shareholders. The withholding tax (WHT) rate would vary depending on the residential
status of the shareholder and documents submitted by shareholder with the Company/ RTA (in case of shares held in
physical mode) and with the Depository Participants (in case of shares held in demat mode)

24. Speaker Registration before AGM: The “Speaker
Registration” window shall be activated on Saturday,
September 23, 2023 at 9:00 A.M and shall be closed
on Monday, September 25, 2023 at 5:00 P.M. The
Company reserves the right to restrict the number of
questions and number of speakers, depending upon
availability of time as appropriate for smooth conduct
of the AGM.

By the order of the Board
For J. Kumar Infraprojects Limited

Date: August 08, 2023 Poornima Reddy

Place: Mumbai Company Secretary

1. The Forms 15G, 15H, 10F and the format of self-declaration referred above, are available on the Company''s website
www.ikumar.com Any communication on the tax/deduction received after Sunday, September 10, 2023 shall not
be considered.

2. In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation,
inaccuracy or omission of information provided / to be provided by the Shareholder(s), such Shareholder(s) will be
responsible to indemnify the Company and also, provide the Company with all information / documents and co¬
operation at the time of payment of dividend/during the course of any appellate proceedings.

3. The Company will send the TDS certificate to the shareholder''s registered email address in due course, post payment
of the dividend. In case the shareholder has not registered their email address with Company''s Registrar and
Transfer Agents, kindly register the same for shareholders holding shares in physical form and with the Depository
Participant for shareholders holding shares in demat form.

4. Above communication on tax deduction at source sets out the provisions of law in a summary manner only and
does not purport to be a complete analysis or listing of all potential tax consequences. Shareholders should consult
with their own tax advisors for the tax provisions that may be applicable to them.

5. The clearing members/ trading members holding shares of the Company in their pool account on the record date
are advised to take necessary steps to transfer the Shares to the demat accounts of the beneficial owners, in order
to avoid any complications related to deduction of tax at source, in connection with the dividend.

6. Pursuant to Section 72 of the Companies Act, 2013, members are entitled to make a nomination in respect of
shares held by them. Members desirous of making a nomination, pursuant to the Rule 19(1) of the Companies
(Share Capital and Debentures) Rules, 2014 are requested to send their requests in form no. SH-13, to the RTA
of the Company. Further, members desirous of cancelling/varying nomination pursuant to the Rule 19(9) of the
Companies (Share Capital and Debentures) Rules, 2014, are requested to send their requests in form no. SH-14, to
the RTA of the Company. These forms are available on the website of the RTA of the Company.

7. The Company has appointed Dhrumil M. Shah, Partner of Dhrumil M. Shah & Co. LLP, Practicing Company
Secretaries, as the Scrutinizer to scrutinise the votes cast through remote e-voting and through the e-voting
system during the meeting, in a fair and transparent manner. The Scrutiniser shall unlock the votes.

---

Mar 31, 2018

1.1 Summary of significant accounting policies

(a) Property, plant and equipment:

All items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The Company follows cost model for subsequent measurement for all classes and items of property, plant and equipment.

Subsequent costs are included in the carrying amount of asset or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the Statement of Profit and Loss during the period in which they are incurred. Gains or losses arising on retirement or disposal of assets are recognised in the Profit or Loss.

Spare parts, stand-by equipment and servicing equipment are recognised as property, plant and equipment if they meet the definition of property, plant and equipment.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as ‘Capital work-in-progress’.

Depreciation on Tangible Fixed Assets is provided on Straight Line Method on the basis of useful life of assets specified in Part C of Schedule II of the Companies Act, 2013.

Property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis with reference to the day of addition / deletion.

Gains and losses on disposals are determined by comparing the proceeds with the carrying method.

The residual values are not more than 5% of the original cost of the asset, wherever applicable.

The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each financial year end and any changes there-in are considered as change in estimate and accounted prospectively.

(b) Investment properties:

Property that is held for long-term rental yields or for capital appreciation or both, and that is not in use by the Company, is classified as investment property. Land held for a currently undetermined future use is also classified as an investment property.

Investment property is measured initially at its acquisition cost, including related transaction costs and where applicable borrowing costs and are carried at cost less accumulated impairment losses.

(c) Impairment of fixed assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are 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 asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognised in statement of profit and loss.

(d) Inventories: Inventories are carried in the balance sheet as follows: (i) Raw materials, components, stores and spares :

Raw materials, components, stores and spares are valued at lower of cost or net realisable value. Cost is determined on a FIFO basis and includes all applicable duties and taxes.

(ii) Contract Work-in-progress:

Costs incurred that relate to future activities on the contract are recognised as contract work-in-progress. Contract work-in progress comprises of construction cost and other directly attributable overhead valued at cost.

The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. Goods and materials in transit are valued at actual cost incurred upto the date of Balance Sheet.

(iii) Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

(e) Statement of Cash Flows:

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.

(f) Foreign currency transactions:

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised in statement of profit and loss.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

The Company has opted to continue the Accounting Policy availed under para 46A of “Accounting Standard 11 The Effects of Changes in Foreign Currency Rates” of previous GAAP inserted vide notification dated December29, 2011 issued by Ministry of Corporate Affairs, Government of India. Paragraph D13AA of Ind AS 101 allows an entity to continue this Accounting Policy availed under previous GAAP for all outstanding long-term foreign currency monetary items as on March31,2016. Consequently, foreign exchange difference on account of long-term foreign currency borrowings utilized to acquire a depreciable asset is adjusted in the cost of the depreciable asset, which will be depreciated over the balance useful life of the asset.

(g) Revenue recognition:

(i) Accounting of Construction Contracts

The Company follows the percentage completion method, based on the stage of completion at the Balance Sheet date, taking into account the contractual price and revision thereto by estimating total revenue including claims/variations as per Ind AS 11, Construction Contracts, and total cost till completion of the contract and the profit so determined proportionate to the percentage of the actual work done.

(ii) Accounting for Claims

Claims are accounted as income in the period of receipt of arbitration award or acceptance by client or evidence of acceptance received.

(iii) Accounting of Sale of Goods

Revenue from supply contract is recognised when the substantial risk and rewards of ownership is transferred to the buyer, which is generally on dispatch, and the collectability is reasonably measured. Revenue from product sales are shown as net of all applicable taxes and discounts.

(iv) Interest income

Interest income is recognised on a time proportion basis taking into account the amount outstanding using the effective interest rate method.

(v) Dividend income

Revenue is recognised when the company’s right to receive the payment is established.

(h) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

(i) Company as a lessee:

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the company is classified as a finance lease.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases

(ii) Company as a lessor:

Leases in which the company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the term of the relevant lease unless the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases or another systematic basis is available.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the company to the lessee. Amounts due from lessees under finance leases are recorded as receivables. Finance lease income is allocated to accounting periods to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

(i) Employee Benefits

(i) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

(ii) Post-Employment Benefits

The company operates the following post-employment schemes:

(i) defined benefit plans and

(ii) defined contribution plans Defined benefit plans - Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans - Provident fund

The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

(j) Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets. Borrowing costs are capitalized as part of the cost of such asset up to the date when the asset is ready for its intended use. All other borrowing costs are expensed as incurred. Borrowing costs consist of interest and other cost that an entity incurs in connection with the borrowing of funds. Borrowing cost includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

(k) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue; bonus element in a rights issue, share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

(l) Taxes on Income:

Income tax expense 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 items recognised directly in equity or in OCI.

(i) Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the company operates and generates taxable income.

Current income tax relating to items recognised outside profit or loss is (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI (Other Comprehensive Income) or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

(ii) Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss Taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

(m) Provisions, Contingent liabilities, Contingent assets and Commitments:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation

- a present obligation arising from past events, when no reliable estimate is possible

- a possible obligation arising from past events, unless the probability of outflow of resources is remote. Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

(n) Current and Non-current Classification:

The Company’s presents assets and liabilities in the balance sheet are based on current/non-current classification.

An asset as current when it is:

- Expected to be realised or intended to sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, Or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current. A liability is current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, Or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Deferred tax assets / liabilities are classified as non-current.

All other liabilities are classified as non-current.

(o) Fair Value Measurement:

The Company measures financial instruments of certain investments at fair value, at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

(p) Financial instruments

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets:

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

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

After initial recognition, financial assets (other than investments in subsidiaries and joint ventures) are measured either at:

i) fair value (either through other comprehensive income or through profit or loss) or,

ii) amortized cost

Measured at amortized cost:

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortized cost using the effective interest rate (‘EIR’) method less impairment, if any, the amortization of EIR and loss arising from impairment, if any is recognized in the Statement of Profit and Loss.

Measured at fair value through other comprehensive income (FVOCI):

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI) net of taxes.

Interest income measured using the EIR method and impairment losses, if any are recognized in Profit and Loss.

Gains or Losses on De-recognition

In case of investment in equity instruments classified as the FVOCI, the gains or losses on de-recognition are re-classified to retained earnings.

In case of Investments in debt instruments classified as the FVOCI, the gains or losses on de-recognition are reclassified to statement of Profit and Loss.

Measured at fair value through profit or loss (FVTPL):

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognized as ‘other income’ in the Statement of Profit and Loss.

The Company measures all its investments in equity (other than investments in subsidiaries and joint ventures) and mutual funds at FVTPL.

Changes in the fair value of financial assets measured at fair value through profit or loss are recognized in Profit and Loss.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVTPL are recognised in Profit and Loss.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost, FVTPL and FVOCI and debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivable only, the Company applies the simplified approach permitted by Ind AS - 109 Financial Instruments, De-recognition:

A financial asset is de-recognized only when

i) The Company has transferred the rights to receive cash flows from the financial asset or

ii) Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognized.

Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognized if the Company has not retained control of the financial asset.

Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

(ii) Financial liabilities

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at fair value.

Subsequent measurement

Financial liabilities other than those measured at fair value through profit and loss are subsequently measured at amortized cost using the effective interest rate method. The Company measures all debt instruments at amortised.

Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in Profit and Loss.

De-recognition.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires. Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty

(q) Investment in Subsidiary and Joint Ventures

The Company’s investment in its subsidiaries and joint ventures are carried at cost.

(r) Interest in Joint Arrangements

Under Ind AS 111 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement. The Company has joint operations.

Joint operations

The Company recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings.

(s) Segment Reporting - Identification of Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company’s chief operating decision maker to make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

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Mar 31, 2017

Notes to the Standalone Financial Statements for the year ended March 31, 2017

Background CORPORATE INFORMATION

J Kumar Infraprojects Limited (the ''Company'') is a Public limited company incorporated and domiciled in India whose shares are publicly traded. The registered office is located in Mumbai ,India.

The Company is engaged in the business of execution of contracts of various infrastructure projects including Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work etc.

The Financial Statements of the Company for the year ended March 31,2017 were authorised for issue by the Board of Directors on May 29, 2017

1.1 SIGNIFICANT ACCOUNTING POLICIES AND KEYACCOUNTING ESTIMATES AND JUDGEMENTS : a. Basis of preparation

i. Compliance with Ind AS:

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended and Companies (Indian Accounting Standards) Amendment Rules, 2016 (Ind AS) . The Financial Statements comply in all material respects with Ind AS.

The Financial Statements up to the year ended March 31, 2016 were prepared in accordance with the Accounting Standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Companies Act, 2013 , hereinafter referred to as previous GAAP.

The Financial Statements for the year ended 31st March,2017 , are the first Financial Statements of the Company under Ind AS. Refer “Note 52 First-time Adoption Notes” for an explanation of how the transition from the ''IGAAP'' to Ind AS has affected the financial position, financial performance and cash flows of the Company.

ii. Historical cost convention:

The Financial Statements have been prepared on a historical cost basis, except for the following:

a. certain financial assets and liabilities that are measured at fair value;

b. defined benefit plans - plan assets measured at fair value;

The Financial Statements are presented in Indian Rupees (''INR'') which is the functional and presentational currency and all values are rounded to the nearest Lakh, except otherwise indicated.

iii) RECENT ACCOUNTING PRONOUNCEMENTS Standards issued but not yet effective:

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of Cash Flows'' and Ind AS 102, ''Share-based Payment.'' These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of Cash Flows'' and IFRS 2, ''Share-based Payment,'' respectively. The amendments are applicable to the Company for accounting periods beginning on or after April 01, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of Financial Statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the Financial Statements is being evaluated.

Company does not have any impact on the Financial Statements on account of this pronouncement.

b. Property, plant and equipment:

All items of property, plant and equipment are stated at acquisition cost net of accumulated depreciation and accumulated impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The Company follows cost model for subsequent measurement for all classes and items of property, plant and equipment.

Subsequent costs are included in the carrying amount of asset or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance expenses are charged to the Statement of Profit and Loss during the period in which they are incurred. Gains or losses arising on retirement or disposal of assets are recognized in the Profit or Loss.

Spare parts, stand-by equipment and servicing equipment are recognized as property, plant and equipment if they meet the definition of property, plant and equipment.

Property, plant and equipment which are not ready for intended use as on the date of Balance Sheet are disclosed as ''Capital work-in-progress''.

Depreciation on Tangible Fixed Assets is provided on Straight Line Method on the basis of useful life of assets specified in Part C of Schedule II of the Companies Act, 2013.

Property, plant and equipment which are added / disposed off during the year, depreciation is provided on pro-rata basis with reference to the month of addition / deletion.

Gains and losses on disposals are determined by comparing the proceeds with the carrying method.

The residual values are not more than 5% of the original cost of the asset.

The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed at each financial year end and any changes there-in are considered as change in estimate and accounted prospectively.

c. Investment properties:

Property that is held for long-term rental yields or for capital appreciation or both, and that is not in use by the Company, is classified as investment property. Land held for a currently undetermined future use is also classified as an investment property.

Investment property is measured initially at its acquisition cost, including related transaction costs and where applicable borrowing costs and are carried at cost less accumulated depreciation and accumulated impairment losses.

d. Impairment of fixed assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are 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 asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognized in statement of profit and loss.

e. Inventories:

Inventories are carried in the balance sheet as follows:

(a) Raw materials, components, stores and spares :

Raw materials, components, stores and spares are valued at lower of cost or net realizable value. Cost is determined on a FIFO basis and includes all applicable duties and taxes.

(b) Contract Work-in-progress:

Costs incurred that relate to future activities on the contract are recognized as contract work-in-progress. Contract work-in progress comprises of construction cost and other directly attributable overhead valued at cost.

The cost of inventories have been computed to include all cost of purchases, cost of conversion and other related costs incurred in bringing the inventories to their present location and condition. Goods and materials in transit are valued at actual cost incurred upto the date of Balance Sheet.

f. Cash and cash equivalents:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

g. Statement of Cash Flows:

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.

h. Foreign currency transactions:

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognized in statement of profit and loss.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss.

Transition to Ind AS

The Company has opted to continue the Accounting Policy availed under para 46A of “Accounting Standard 11 The Effects of Changes in Foreign Currency Rates” of previous GAAP inserted vide notification dated December 29, 2011 issued by Ministry of Corporate Affairs, Government of India. Paragraph D13AA of Ind AS 101 allows an entity to continue this Accounting Policy availed under previous GAAP for all outstanding long-term foreign currency monetary items as on March31,2016. Consequently, foreign exchange difference on account of long-term foreign currency borrowings utilized to acquire a depreciable asset is adjusted in the cost of the depreciable asset, which will be depreciated over the balance useful life of the asset.

i. Revenue recognition: Accounting of Construction Contracts

The Company follows the percentage completion method, based on the stage of completion at the Balance Sheet date, taking into account the contractual price and revision thereto by estimating total revenue including claims/variations as per Ind AS 11, Construction Contracts, and total cost till completion of the contract and the profit so determined proportionate to the percentage of the actual work done.

Accounting for Claims

Claims are accounted as income in the period of receipt of arbitration award or acceptance by client or evidence of acceptance received.

Accounting of Sale of Goods

Revenue from supply contract is recognized when the substantial risk and rewards of ownership is transferred to the buyer, which is generally on dispatch, and the collectability is reasonably measured. Revenue from product sales are shown as net of all applicable taxes and discounts.

Interest income

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

Dividend income

Revenue is recognized when the company''s right to receive the payment is established. j. Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfillment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee:

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the company is classified as a finance lease.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased asset or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in the statement of profit and loss.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of the asset and the lease term.

Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term, unless the payments are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases

Company as a less or:

Leases in which the company does not transfer substantially all the risks and rewards of ownership of an asset are classified as operating leases. Rental income from operating lease is recognized on a straight-line basis over the term of the relevant lease unless the payments to the less or are structured to increase in line with expected general inflation to compensate for the less or’s expected inflationary cost increases or another systematic basis is available.

Leases are classified as finance leases when substantially all of the risks and rewards of ownership transfer from the company to the lessee. Amounts due from lessees under finance leases are recorded as receivables. Finance lease income is allocated to accounting periods to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

k. Employee Benefits (i) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

(ii) Post-Employment Benefits

The company operates the following post-employment schemes:

(a) defined benefit plans and

(b) defined contribution plans

Defined benefit plans - Gratuity obligations

The liability or asset recognized in the balance sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss as past service cost.

Defined contribution plans - Provident fund

The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.

l. Borrowing Costs:

Borrowing costs attributable to the acquisition or construction of qualifying assets. Borrowing costs are capitalized as part of the cost of such asset up to the date when the asset is ready for its intended use. All other borrowing costs are expensed as incurred. Borrowing costs consist of interest and other cost that an entity incurs in connection with the borrowing of funds. Borrowing cost includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

m. Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue; bonus element in a rights issue, share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

n. Taxes on Income:

Income tax expense comprises current and deferred tax. It is recognized in the statement of profit and loss except to the extent that it relates to a business combination, or items recognized directly in equity or in OCI.

Current tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the company operates and generates taxable income.

Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the balance sheet method on temporary differences between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

- When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

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

Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

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 the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in OCI or directly in equity.

o. Provisions, Contingent liabilities, Contingent assets and Commitments: General

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation

- a present obligation arising from past events, when no reliable estimate is possible

- a possible obligation arising from past events, unless the probability of outflow of resources is remote. Commitments include the amount of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

p. Current and Non-current Classification:

The Company''s presents assets and liabilities in the balance sheet are based on current/non-current classification.

An asset as current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realized within twelve months after the reporting period, Or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, Or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

Deferred tax assets / liabilities are classified as non-current.

All other liabilities are classified as non-current. q. Fair Value Measurement:

The Company measures financial instruments of certain investments at fair value, at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognized in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

r. Financial instruments

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i. Financial assets:

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

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss.

Sub-sequent measurement

After initial recognition, financial assets (other than investments in subsidiaries and j oint ventures) are measured either at:

i) fair value (either through other comprehensive income or through profit or loss) or,

ii) amortized cost

Measured at amortized cost:

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortized cost using the effective interest rate (''EIR'') method less impairment, if any, the amortization of EIR and loss arising from impairment, if any is recognized in the Statement of Profit and Loss.

Measured at fair value through other comprehensive income (FVOCI):

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI) net of taxes.

Interest income measured using the EIR method and impairment losses, if any are recognized in Profit and Loss.

Gains or Losses on De-recognition

In case of investment in equity instruments classified as the FVOCI, the gains or losses on de-recognition are re-classified to retained earnings.

In case of Investments in debt instruments classified as the FVOCI, the gains or losses on de-recognition are reclassified to statement of Profit and Loss.

Measured at fair value through profit or loss (FVTPL):

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognized as ''other income'' in the Statement of Profit and Loss.

The Company measures all its investments in equity (other than investments in subsidiaries and j oint ventures) and mutual funds at FVTPL.

Changes in the fair value of financial assets measured at fair value through profit or loss are recognized in Profit and Loss.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVTPL are recognized in Profit and Loss.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost, FVTPL and FVOCI and debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivable only, the Company applies the simplified approach permitted by Ind AS - 109 Financial Instruments, which requires expected lifetime losses to be recognized from initial recognition of such receivables.

De-recognition:

A financial asset is de-recognized only when

i) The Company has transferred the rights to receive cash flows from the financial asset or

ii) Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognized.

Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized.

Where the entity has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is de-recognized if the Company has not retained control of the financial asset.

Where the Company retains control of the financial asset, the asset is continued to be recognized to the extent of continuing involvement in the financial asset.

ii. Financial liabilities Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

Initial recognition and measurement

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at fair value.

Subsequent measurement

Financial liabilities other than those measured at fair value through profit and loss are subsequently measured at amortized cost using the effective interest rate method. The Company measures all debt instruments at amortized.

Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in Profit and Loss. De-recognition.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty

s. Investment in Subsidiary and Joint Ventures

The Company''s investment in its subsidiaries and joint ventures are carried at cost.

t. Segment Reporting - Identification of Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company''s chief operating decision maker to make decisions for which discrete financial information is available. Based on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

1.2 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company''s Financial Statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgments, Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

A. Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount.

B. Estimation of Defined benefit obligations/ plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

C. Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgments in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(a) Secured term loans from banks:

External Commercial Borrowing (ECB loan) of USD 10 Million from Standard Chartered bank bearing interest rate ranging from 8.48% p.a. to 11.95% p.a. on fully hedged. The loans are repayable in 4 years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of plant & machinery and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin J. Gupta. During the financial year 2016 - 17 the said loan has been repaid fully.

External Commercial Borrowing (ECB loan) of USD 7.90 Million from Standard Chartered bank bearing interest rate ranging from 12.60% p.a. to 12.70% p.a. on fully hedged. The loans are repayable in 5 years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of plant & machinery and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin J. Gupta.

Buyers Credit of USD 26.13 Million from Union Bank of India, Vijaya Bank, Standard Chartered Bank, Bank of Maharashtra and Dena Bank bearing interest rate ranging from 2.00% p.a. to 3.35% p.a. unhedged . The loans are repayable in 3 Years in Quarterly installment from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of plant & machinery and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin J. Gupta. The said loan repaid fully during the Financial year 2016 - 17.

Other term Loans includes loan from

HDFC bank bearing interest rate ranging from 8.25% p.a. to 9.36% p.a. The loans are repayable in 36 months to 48 months in equal monthly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of assets (i.e. Equipment, Vehicles and plant & machinery) and personal guarantee of Mr. Jagdishkumar M. Gupta.

ICICI bank bearing interest rate ranging from 8.45% p.a. to 10.99% p.a. The loans are repayable in 29 months to 48 months in equal monthly installments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of assets (i.e. Equipment, vehicles and plant & machinery)

Allahabad bank bearing interest rate ranging from 8.65% p.a. to 8.85% p.a. The loans are repayable in 48 months to 60 months in equal monthly installments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of Vehicle.

SREI Equipment Finance Limited bearing interest rate ranging from 8.25% p.a. to 9.00% p.a. The loans are repayable in 48 months to 60 months in equal monthly installments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of Assets (i.e. Equipment, Vehicles and plant & machinery).

18.1 Working capital loan (Cash credit ) from banks under consortium limit is secured against hypothecation of stock and book debts, details of security and limits (refer note 39 and 40).The interest rate ranging from 10.00% p.a. to 11.75 % p.a.

18.2 Overdraft facility from banks secured against Fixed Deposit receipts and are personal guarantee of promoter Directors. The interest rate ranging from 7.00% p.a. to 9.05% p.a.

18.3 Overdraft facility against Earnest Money Deposit (EMD) within non fund based facilities limit and details of security (refer note 39).The interest rate is 11.70% p.a. and repayable within 6 months from the date of disbursement. The said facility not availed during the year, outstanding as on 31/03/2017 is Nil.

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Mar 31, 2016

Note 1: SIGNIFICANT ACCOUNTING POLICIES 1.1 Corporate Information:

J. Kumar Infraprojects Limted (the Company) is a public Limited Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the two stock exchanges in India - BSE and NSE. The Company is engaged in execution of contracts of various infrastructure projects including Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work etc.

1.2 Basis of preparation of financial statements:

The financial statements of J. Kumar Infraprojects Limited (the Company) have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) including the accounting standards notified under the relevant provisions of the Companies Act, 2013. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations viz. SEBI guidelines override the same requiring a different treatment.

The financial statements have been prepared under the historical cost convention, on accrual basis, on the principles of going concern. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.3 Financial Statements - Presentation and Disclosures:

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III of the Companies Act, 2013 (“the Act”). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 “Cash Flow Statements”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Revised Schedule III of the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

1.4 Use of Estimates:

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures of contingent liabilities as on date of the financial statements and reported amount of revenue and expenses during the reporting period. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods. Difference between the actual results and estimates is recognised in the period in which the results are known / materialized.

1.5 Revenue Recognition:

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

The Company follows the percentage completion method as mentioned in Revised Accounting Standard (AS) 7 “Construction Contracts” on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend is recognized as and when the right to receive payment is established by the Balance Sheet date.

1.6 Fixed Assets:

(i) Tangible Assets

Cost comprises cost of acquisition or construction of assets (excluding revalued assets) less accumulated depriciation and impairment losses if any including borrowing costs attributable to bringing the assets to their intended use.

(ii) Capital Work in Progress

Tangible assets under installation or under construction as at balance sheet date are shown as Capital work-in-progress.

1.7 Depreciation:

Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. Depreciation is provided prorate to the period of use on all additions during the year except addition below Rs. 5,000/- which are depreciated at the rate of 100% in the year of purchase.

Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished.

1.8 Impairment of Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired as per AS - 28 on “Impairment of Assets”. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating units (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are 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 asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognised in statement of profit or loss.

During the year no assets were impaired.

1.9 Valuation of Inventories:

Inventories are valued as follows:

Raw materials, components, stores and spares: Raw materials, components, stores and spares are valued at lower of cost or net realisable value. Cost is determined on a FIFO basis and includes all applicable duties and taxes.

Contract work-in-progress: Costs incurred that relate to future activities on the contract are recognised as contract work-in-progress. Contract work-in progress comprises of construction cost and other directly attributable overhead valued at cost.

1.10 Investments:

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties etc.If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.However, all the investments are acquired in exchange of monetary assets.

Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in nature in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.11 Accounting for Taxes on Income:

Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities, using the applicable effective tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted or substantively enacted effective tax rate as on the balance sheet date , to the extent the timing differences are expected to crystallise. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each balance sheet date. the company reassesses recognised deferred tax assets and liabilities and recognises inrecognised deferred tax assets to the extent they become reasonably certain or virtually certain of realisation , as the case may be.

1.12 Foreign Currency Translations:

i) Initial recognition : Foreign currency transaction are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

ii) Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. Non -monetarry assets are carried at fair value.

iii) Exchange differences: Exchange differences arising on the settlement of monetary items or on reporting company’s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

Exchange difference arising on long term foreign currency monitory items related to acquisition of fixed assets are added / deducted from the cost of asset.

1.13 Borrowing Cost:

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

1.14 Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue; bonus element in a rights issue, share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.15 Provisions:

Provisions are recognised when the Company has a present obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Provisions are not discounted to their present values and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.16 Contingent Liabilities and Contingent Assets:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are neither recognized nor disclosed in the financial statements.

1.17 Segmental Reporting:

As the Management information system of the Company recognises and monitors “Construction” as the only business segment, the accounting standards “Segmental Reporting” does not apply.

1.18 Operating Lease:

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

1.19 Retirement and other employee benefits:

i) Retirement benefit in the form of Provident Fund is a defined contribution scheme. The contributions are charged to the statement of profit and loss of the year when the contributions are due. The company has no obligation other than the contribution payable to the provident fund.

ii) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

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

1.20 Accounting for interests in Joint Ventures:

In respect of contracts executed in integrated joint venture under profit sharing arrangements, net investment in the joint venture is reflected as Current Assets.

1.21 Cash and cash equivalents:

Cash and cash equivalents for purpose of the cash flow statements comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.22 Forward Exchange Contract

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

Buyers'' Credit is not hedged by the Company as its exposure to the movements in foreign currency exchange rates is adjusted against inflows.

1.23 Cash Flow Statement:

Cash Flow Statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of:

i) Transactions of a non-cash nature

ii) Any deferrals or accruals of past or future operating cash receipts or payments and

iii) Items of income or expense associated with investing or financing cash flows

Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.

2(b) The company has only one class of shares referred to as Equity Shares having a face value of Rs. 5/-* each (P.Y. Rs.10/-). resulting to increase in number of Equity shares from 3,78,32,753 of Rs. 10/- each to Equity Shares 7,56,65,506 of Rs. 5/- each . Each Equity share is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuring Annual General Meeting.

* Board of Directors at their Meeting held on 28^th June, 2015 had approved the sub-division of each Equity Share of face value of Rs.10/-(Rupees Ten Only) of the Company into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) further the Members of the Company have approved the said sub-division at the 16^th Annual General Meeting on 15⁴¹ September, 2015. The record date for the spilt of share 11^th December, 2015.

2(c) The Company has not issued any bonus shares during the last five years immediately preceding the balance sheet date.

2(d) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2(e) During the year, the Company has issued and allotted 56,06,548 (Previous Year 44,25,000) Equity Shares having a face value of Rs. 10/each at a premium of Rs. 720.00 (Previous Year Rs. 299.98) per share to the Qualified Institutional Investors rank Pari Passu with existing Equity Shares including rights in respect of dividends.

3.1 During the year, the Company has issued and allotted 56,06,548 (Previous Year 44,25,000) Equity Shares having a face value of Rs.10/each at premium of Rs. 720.00 (Previous Year Rs. 299.98) per share to the Qualified Institutional Investors rank Pari Passu with existing Equity Shares including rights in respect of dividends.

3.2 During the previous year the company has paid dividend of Rs. 3.75 per equity shares issued on additional 44,25,000 equity shares issued on 23^rd July , 2014 and allotted after balance sheet date but before book closure date i.e. 6 ^th September , 2014

3.3 The Directors recommended payment of final dividend of Rs.2/- per equity share of Rs. 5/- on each of the number of shares outstanding as on the record date.

ECB Loan of USD 10 Million from Standard Chartered Bank bearing interest rate ranging from 8.48% p.a. to 11.95% p.a. on fully hedged. The loans are repayable in 4 years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin J. Gupta.

ECB Loan of USD 7.90 Million from Standard Chartered Bank bearing interest rate ranging from 12.60% p.a. to 12.70% p.a. on fully hedged. The loans are repayable in 5 years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M.Gupta and Mr. Nalin J. Gupta.

Buyers Credit of USD 26.13 Million from Union Bank of India, Vijaya Bank, Standard Chartered Bank, Bank of Maharashtra and Dena Bank bearing interest rate ranging from 2.00% p.a. to 3.35% p.a. unhedged. The loans are repayable in 3 Years in Quarterly installment from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M.Gupta and Mr. Nalin J. Gupta.

Other term Loans includes loan from HDFC Bank bearing interest rate ranging from 9.30% p.a. to 11% p.a. The loans are repayable in 36 months to 48 months in equal monthly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M.Gupta.

Other term Loans includes loan from ICICI Bank bearing interest rate ranging from 8.45% p.a. to 10.59% p.a. The loans are repayable in 29 months to 48 months in equal monthly installments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of Plant & Machinery.

7.1 Working Capital Loan (Cash Credit ) from banks under consortium limit is secured against hypothecation of stock and book debts, details of security and limits (Refer Note 31 and 32).The interest rate ranging from 10.75% p.a. to 11.75 % p.a.

7.2 Overdraft facility from banks secured against Fixed Deposit receipts and are personal guarantee of promoter Directors. The interest rate ranging from 8% p.a. to 10.05% p.a.

7.3 Overdraft facility against Earnest Money Deposit (EMD) within Guarantee limit and details of security (Refer Note 31).The interest rate is 11.70% p.a. and repayable within 6 months from the date of disbursement.

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Mar 31, 2015

1.1 Corporate Information :

J. Kumar Infraprojects Limted (the Company) is a public Limited Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the two stock exchanges in India - BSE and NSE . The Company is engaged in execution of contracts of various infrastructure projects including Transportaion Engineering, Irrigation Projects, Civil Construction and Piling Work etc.

1.2 Basis of preparation of financial statements :

The financial statements of J. Kumar Infraprojects Limited (the Company) have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) including the accounting standards notified under the relevant provisions of the Companies, Act 2013. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations viz. SEBI guidelines override the same requiring a different treatment.

The financial statements have been prepared under the historical cost convention, on accrual basis, on the principles of going concern. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.3 Financial Statements - Presentation and Disclosures :

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ("the Act"). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 "Cash Flow Statements". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Revised Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

1.4 Use of Estimates :

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures of contingent liabilities as on date of the financial statements and reported amount of revenue and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods. Difference between the actual results and estimates is recognised in the period in which the results are known / materialized.

1.5 Revenue Recognition:

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

The Company follows the percentage completion method as mentioned in Revised Accounting Standard (AS) 7 "Construction Contracts" on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend is recognized as and when the right to receive payment is established by the Balance Sheet date.

1.6 Fixed Assets:

(i) Tangible Assets

Cost comprises cost of acquisition or construction of assets (excluding revalued assets) less accumulated depriciation and impairment losses if any including borrowing costs attributable to bringing the assets to their intended use.

(ii) Capital Work in Progress

Tangible assets under installation or under construction as at balance sheet date are shown as Capital work-in-progress.

1.7 Depreciation:

Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies Act, 2013. Depreciation is provided prorata to the period of use on all additions during the year except addition below Rs. 5,000/- which are depreciated at the rate of 100% in the year of purchase.

Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished.

1.8 Impairment of Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired as per AS - 28 on "Impairment of Assets". If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are 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 asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognised in statement of profit or loss.

During the year no assets were impaired.

1.9 Valuation of Inventories:

Inventories are valued as follows:

Raw materials and components : Raw materials, components, stores and spares are valued at lower of cost and net realisable value. Cost is determined on a FIFO basis and includes all applicable duties and taxes.

Work-in-progress: Costs incurred that relate to future activities on the contract are recognised as contract work-in-progress. Contract work-in- progress comprises of construction cost and other directly attributable overhead valued at cost.

1.10 Investments:

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties etc. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident. However, all the investments are aquired in exchange of monetary assets.

Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in nature in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss. None of the investments were disposed off during the year.

1.11 Accounting for Taxes on Income :

Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to recovered from the tax authorities, using the applicable effective tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted or substantively enacted effective tax rate as on the balance sheet date, to the extent the timing differences areexpected to crystallise. Deferred tax assets are reviewed for theappropriateness of their respective carrying values at each balancesheet date. The company reassesses recognised deferred tax assets andliabilities to the extent they become reasonably certain or virtually certain of realisation , as the case may be.

1.12 Foreign Currency Translations :

i) Initial recognition : Foreign currency transaction are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

ii) Conversion : Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. Non -monetory assets are carried at fair value.

iii) Exchange differences : Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

Exchange difference arising on long term foreign currency monetory items related to acquisition of fixed assets are added / deducted from the cost of asset.

1.13 Borrowing Cost :

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

1.14 Earnings Per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue; bonus element in a rights issue, share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

1.15 Provisions :

Provisions are recognised when the Company has a present obligation, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Provisions are not discounted to their present values and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

1.16 Contingent Liabilities and Contingent Assets :

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are neither recognized nor disclosed in the financial statements.

1.17 Segmental Reporting :

As the Management information system of the Company recognises and monitors "Construction" as the only business segment, the accounting standards "Segmental Reporting" does not arise.

1.18 Operating Lease :

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

1.19 Retirement and other employee benefits :

i) Retirement benefit in the form of Provident Fund is a defined contribution scheme. The contributions are charged to the statement of profit and loss of the year when the contributions are due. The company has no obligation other than its contribution payable.

ii) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

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

iv) Leave encashment is paid to employees on annual basis and recognized as expenses when it is due.

1.20 Accounting for interests in Joint Ventures :

Interests in joint ventures are accounted as follows:

Form of joint venture

Jointly controlled entities Unincorporated joint ventures: Company''s share in profits or losses of unincorporated joint ventures is accounted for on determination of the profits or losses by the joint ventureres.

In respect of contracts executed in integrated joint venture under profit sharing arrangements, net investment in the joint venture is reflected as Current Assets.

1.21 Cash and Cash Equivalents :

Cash and cash equivalents for purpose of the cash flow statements comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.22 Forward Exchange Contract

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

Buyers'' Credit is not hedged by the Company as its exposure to the movements in foreign currency exchange rates is adjusted against inflows.

1.23 Cash Flow Statement :

Cash Flow Statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of :

i) Transactions of a non-cash nature

ii) Any deferrals or accruals of past or future operating cash receipts or payments and

iii) Items of income or expense associated with investing or financing cash flows

Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.

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Mar 31, 2014

1 Corporate Information :

J. Kumar Infraprojects Limted (the Company) is a public Limited Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the two stock exchanges in India - BSE and NSE . The Company is engaged in execution of contracts of various infrastructure projects including Transportaion Engineering, Irrigation Projects, Civil Construction and Piling Work etc.

2 Basis of preparation of financial statements :

The financial statements of J. Kumar Infraprojects Limited (the Company) have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The financial statements have been prepared to comply in all material respects with the notified Accounting Standards issued by the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations viz. SEBI guidelines override the same requiring a different treatment.

The financial statements have been prepared under the historical cost convention, on accrual basis, on the principles of going concern. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3 Financial Statements - Presentation and Disclosures :

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Revised Schedule VI to the Companies Act, 1956 ("the Act"). The Cash Flow Statement has been prepared and presented as per the requirements of Accounting Standard (AS) 3 "Cash Flow Statements". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Revised Schedule VI to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

Amounts in the financial statements are presented in Indian Rupees in lacs [1 lacs = 0.10 million] rounded off to two decimal places in line with the requirements of Revised Schedule VI. Per share data are presented in Indian Rupees to two decimals places.

4 Use of Estimates :

The preparation and presentation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures of contingent liabilities as on date of the financial statements and reported amount of revenue and expenses during the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future periods. Difference between the actual results and estimates is recognised in the period in which the results are known / materialized.

5 Revenue Recognition:

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

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend is recognized as and when the right to receive payment is established by the Balance Sheet date.

The Company follows the percentage completion method as mentioned in Revised Accounting Standard (AS) 7 "Construction Contracts" on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

6 Fixed Assets:

(i) Tangible Assets

Cost comprises cost of acquisition or construction of assets (excluding revalued assets) less accumulated depriciation and impairment losses if any including borrowing costs attributable to bringing the assets to their intended use.

(ii) Capital Work in Progress

Tangible assets under installation or under construction as at balance sheet date are shown as Capital work-in-progress.

7 Depreciation:

Depreciation is provided using the Written Down Value Method as per Schedule XIV of the Companies Act, 1956. Depreciation is provided prorata to the period of use on all addition except addition below Rs. 5,000/- which are depreciated at the rate of 100% in the year of purchase.

Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished

8 Impairment of Assets:

The Company assesses at each reporting date whether there is an indication that an asset may be impaired as per AS - 28 on "Impairment of Assets". If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s or cash-generating unit''s (CGU) net selling price and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are 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 asset. In determining net selling price, recent market transactions are taken into account, if available. If no such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognised in statement of profit or loss.

During the year no assets were impaired

9 Valuation of Inventories:

Inventories are valued as follows:

Raw materials, components, stores and spares: Raw materials, components, stores and spares are valued at lower of cost and net realisable value. Cost is determined on a FIFO basis.

Contract work-in-progress: Costs incurred that relate to future activities on the contract are recognised as contract work-in-progress. Contract work-in-progress comprises of construction cost and other directly attributable overhead valued at cost.

10 Investments:

Investments, which are readily realisable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties etc.If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.However, all the investments are aquired in exchange of monetary assets.

Long term investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in nature in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss. None of the investements were disposed off during the year.

11 Accounting for Taxes on Income :

Tax expense comrises both current and deferred tax . Current tax is measured at the amount expected to be paid to / recovered from the tax authorities, using the applicable effective tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted or substantively enacted effective tax rate as on the balance sheet date , to the extent the timing differences are expected to crystallise. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

The company reaseesses recognised deferred tax assets and liabilities and recognises inrecognised deferred tax assets to the extent they become reasonably certain or virtually certain of realisation , as the case may be.

12 Foreign Currency Translations :

i) Initial recognition : Foreign currency transaction are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction.

ii) Conversion : Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined. Non -monetarry assets are carried at fair value.

iii) Exchange differences : Exchange differences arising on the settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

Exchange difference arising on long term foreign currency monetory items related to acquisition of fixed assets are added / deducted from the cost of asset.

13 Borrowing Cost :

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

14 Earnings Per Share :

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue; bonus element in a rights issue, share split; and reverse share split (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

15 Provision :

Provisions are recognised when the Company has a present obligation, as a result of past events, for which it is probable that an outfl ow of economic benefi ts will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Provisions are not discounted to their present values and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

16 Contingent Liabilities and Contingent Assets :

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are neither recognized nor disclosed in the financial statements.

17 Segmental Reporting :

As the Management information system of the Company recognises and monitors "Construction" as the only business segment, the accounting standards "Segmental Reporting" does not apply.

18 Operating Lease :

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term.

19 Retirement and other employee benefits :

i) Retirement benefit in the form of Provident Fund is a defined contribution scheme. The contributions are charged to the statement of profit and loss of the year when the contributions are due. The company has no obligation other than the contribution payable to the provident fund.

ii) Gratuity liability is defined benefit obligation and is provided for on the basis of an actuarial valuation on projected unit credit method made at the end of each financial year.

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

iv) Leave encashment is paid to employees on annual basis and recognized as expenses when it is incurred

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Mar 31, 2013

1 Corporate Information

J. Kumar Infraprojects Limted (the Company) is a public Limited Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the two stock exchanges in India. The Company is engaged in execution of contracts of various infrastructure projects including Transportaion Engineering, Irrigation Projects, Civil Construction and Piling Work etc.

2 Accounting Concepts:

The Financial Statement of the Company have been prepared in accordaence with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial Statement to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard ) Rules, 2006, (as amended ) and the relevant provisions of the Companies Act, 1956. The financial statement have been prepared on an accrual basis and under historical cost convention.

3 Use of Estimates:

The preparation of the financial statement is in conformity with the generally accepted accounting principle requiring estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known/ materialize.

4 Revenue Recognition:

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

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend is recognized as and when the right to receive payment is established by the Balance Sheet date.

The Company follows the percentage completion method as mentioned in Revised Accounting Standard (AS) 7 "Construction Contracts" on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

5 Fixed Assets:

A. Tangible Assets

Tangible Assets are recorded at their cost of acquisition, net of modvat / cenvat, less accumulated depreciation and impairment losses, if any.

B. Intangible Assets

Intangible Assets are recorded at their cost of acquisation less accumulated amortization / depletion . And impairment losses, if any.

6 Depreciation:

Depreciation on Fixed Assets is being provided on Written Down Value Method as specified in Schedule XIV of the Companies Act, 1956.

Depreciation in respect of additions to fixed assets is provided on pro-rata basis from the date on which such assets are acquired/ put to use.

Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished

7 Impairment of Assets:

The Company makes an assessment of any indicator that may lead to impairment of assets on an annual basis. According to AS - 28 on

"Impairment of Assets" an Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Statement of Profit & Loss in the year in which impairment is identified.

8 Valuation of Inventories:

Inventories are valued at the lower of cost or net realizable value except waste/scrap which is valued at net realizable value. The cost is computed on FIFO basis.

Work in Progress on construction contracts reflect the value of material inputs and expenses including appropriate overheads incurred on such contracts, at cost.

9 Investments:

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investment basis. Long-term investments are carried at cost, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

10 Taxes on Income:

Tax expense comprises both current and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities, using the applicable effective tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using relevant enacted or substantively enacted effective tax rate as on the balance sheet date, to the extent the timing differences are expected to crystallise. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each balance sheet date. The company reassesses recognised deferred tax assets and liabilities and recognises unrecognised deferred tax assets to the extent they become reasonably certain or virtually certain of realisation, as the case may be.

11 Foreign Exchange Transaction:

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transactions.

- Monetary assets and liabilities denominated in foreign currency are restated at the prevailing rates at the year end. Nonmonetary foreign currency items are carried at cost. ,

- Any gain/loss upon such transaction on account of foreign currency are accounted in the Statement of Profit & Loss.

12 Borrowing Cost:

Borrowing costs that arc attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the assets is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit & Loss Account as period costs.

13 Earnings Per Share:

Basic EPS is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the year. The number of shares used for computing diluted EPS is the weighted average number of outstanding during the year after considering the potential equity shares.

14 Provision, Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement is recognize when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions are determined based on Management estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current Management estimate. Contingent liabilities are not recognise but are disclosed in the notes. Contingent asset are neither recognized nor disclosed in the financial statements. Outstanding Bank Guarantee as on 31" March, 2013 is Rs. 746.81 Crores and outstanding Letter of Credit (L.C.) is Rs. 34.06 Crores as on 31" March, 2013.

The Block assessment order under section 153 A has been completed and assessment order has been received and the total liability raised by the CIT (A) for the Assessment Year 2004 - 05 to 2010 -11 is Rs. 569.18 lacs and the same has been paid by the company against which the company has gone in to appeal with Income Tax Appelate Tribunal.

15 Segmental Reporting:

As the Management information system of the Company recognises and monitors "Construction" as the only business segment, the accounting standards "Segmental Reporting" does not apply.

16 Employee Benefits:

Contribution to Provident Fund is charged to the profit and loss account. Provident Fund contribution is made to the Government Administered Provident Fund. Company has no further obligation beyond this contribution charged in financial statement.

Company also provides lor Retirement Benefits in the form of Gratuity. Such Benefits are provided for based on valuation on projected unit credit method made by independent actuaries as at the Balance Sheet date.

- Leave encashment is paid to employees on annual basis and recognized as expenses when it is incurred.

17 Accounting for Joint Venture Contracts:

In respect of contracts executed in integrated joint enture under profit sharing arrangements the profit or loss is accounted for. as when it is determined by thejoint venture and the net investment in thejoint venture is reflected as Current Assets.

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Mar 31, 2012

1 Corporate Information

J. Kumar Infraprojects Limted (the Company) is a public Limited Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the two stock exchanges in India. The Company is engaged in execution of contracts of various infrastructure projects including Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work etc

2 Accounting Concepts:

The accompanying financial statements have been prepared to comply in all material respects with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3 Presentation and Disclosure of Financial Statements

During the year ended March 31st, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

4 Use of Estimates:

The Management makes estimates and technical and other assumptions regarding the amounts of income and expenses in accordance with Indian GAAP in the preparation of the financial statements. Difference between the actual results and estimates are recognised in the period in which they are determined.

5 Accounting of Construction Contract:

The Company follows the percentage completion method as mentioned in Revised Accounting Standard (AS) 7 "Construction Contracts" on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

6 Revenue Recognition:

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

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend is recognized as and when the right to receive payment is established by the Balance Sheet date.

7 Fixed Assets:

Fixed Assets are valued at cost less accumulated depreciaticn / amortization. Cost comprises the purchase price and any other expenses related to acquisitions and installation and any attributable cost of bringing the asset to its working condition for its intended use.

8 Depreciation:

a) Depreciation on Fixed Assets is being provided on Written Down Value Method as specified in Schedule XIV to the Companies Act,! 956.

b) Depreciation in respect of additions I o fixed assets is provided on pro-rata basis from the date on which such assets are acquired' put to use.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished

9 Impairment of Assets:

The Company makes an assessment of any indicator that may lead to impairment of assets on an annual basis. According to AS-28 on "Impairment of Assets" an Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value.

Impairment Loss is charged to Profit & Loss a/c in the year in which impairment is identified.

10 Valuation of Inventories:

a) Inventories are valued at the lower of cost or net realizable value except waste/scrap which is valued at net realizable value. The cost is computed on FIFO basis.

b) Work in Progress on construction contracts reflect the value of material inputs and expenses including appropriate overheads incurred on such contracts, at cost.

11 Investments:

Current investments are carried in the financial statements at lower of cost or fair value determined on an individual investmentbasis. Long-term investments are carried at cost, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments

12 Provision for Taxes:

Provision for current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961.

Deferred Tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.

13 Foreign Exchange Transaction:

Transactions in foreign currency are recorded in the books of accounts in Indian rupees at the rate of exchange prevailing on the date of transaction.

14 Borrowing Cost:

Borrowing costs that are attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the assets is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit & Loss Account as period costs.

15 Earnings Per Share:

Basic EPS is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the year. Diluted EPS is computed using the weighted average number of equity shares and diluted equity equivalent shares outstanding during the year except where the result would be anti- dilutive.

16 Provision, Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement is recognize when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions are determined based on Management estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current Management estimate. Contingent liabilities are not recognise but are disclosed in the notes. Contingent asset are neither recognized nor disclosed in the financial statements. Outstanding Bank Guarantee is Rs. 43,414.03 Lacs and outstanding Letter of Credit (L.C.) is Rs. 2,311.37 Lacs as on 31st March, 2012.

The Block assessment order under section 153 A, has been completed and assessment order has been received and the total liability raised by the CIT (A) for the Assessment Year 2004 - 05 to 2010 - 11 is Rs. 569.18 Lacs against which the company has gone in to appeal with Income Tax Appelate Tribunal.

17 Segmental Reporting:

As per the Management information system of the Company recognises and monitors "Construction" as the only business segment, the accounting standards "Segmental Reporting" does not apply.

18 Retirement Benefits:

i) Contribution to Provident Fund is charged to the profit and loss account. Provident Fund contribution is made to the Government Administered Provident Fund. Company has no further obligation beyond this contribution charged in financial statement.

ii) Company also provides for Retirement Benefits in the form of Gratuity. Such Benefits are provided for based on valuation on proj ected unit credit method made by independent actuaries as at the Balance Sheet date.

iii) Leave encashment is paid to employees on annual basis and recognized as expenses when it is incurred

19 Accounting for Joint Venture Contracts:

In respect of contracts executed in integrated joint venture under profit sharing arrangements the profit or loss is accounted for, as when it is determined by the joint venture and the net investment in the joint venture is reflected as Investments / Current Assets.

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Mar 31, 2011

1. Accounting Concepts:

The accompanying financial statements have been prepared to comply in all material respects with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates :

The Management makes estimates and technical and other assumptions regarding the amounts of income and expenses in accordance with Indian GAAP in the preparation of the financial statements. Difference between the actual results and estimates are recognised in the period in which they are determined.

3. Accounting of Construction Contract:

The Company follows the percentage completion method as mentioned in Accounting Standard (AS) 7 "Construction Contracts" on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

4. Revenue Recognition:

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

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

Dividend is recognized as and when the right to receive payment is established by the Balance Sheet date.

5. Fixed Assets:

Fixed Assets are valued at cost less accumulated depreciation / amortization. Cost comprises the purchase price and any other expenses related to acquisitions and installation and any attributable cost of bringing the asset to its working condition for its intended use.

6. Depreciation:

a) Depreciation on Fixed Assets is being provided on Written Down Value Method as specified in Schedule XIV to the Companies Act, 1956.

b) Depreciation in respect of additions to fixed assets is provided on pro-rata basis from the date on which such assets are acquired/ put to use.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished

7. Impairment of Assets:

The Company makes an assessment of any indicator that may lead to impairment of assets on an annual basis. According to AS-28 on "Impairment of Assets" an Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Profit & Loss a/c in the year in which impairment is identified.

8. Valuation of Inventories:

a) Inventories are valued at the lower of cost or net realizable value except waste/scrap which is valued at net realizable value. The cost is computed on FIFO basis.

b) Work in Progress on construction contracts reflect the value of material inputs and expenses including appropriate overheads incurred on such contracts, at cost.

9. Investments:

Long-term investments are carried at cost.

10. Lease Transactions:

Leases, where significant portion of risk and reward of ownership are retained by the lesser, are classified as Operating Leases and lease rentals thereon are charged to the Profit and Loss Account.

11. Provision for Taxes:

Provision for current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961.

Deferred Tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.

12. Foreign Exchange Transaction:

Transactions in foreign currency are recorded in the books of accounts in Indian rupees at the rate of exchange prevailing on the date of transaction.

13. Borrowing Cost:

Borrowing costs that are attributable to the acquisition and construction of qualifying assets are capitalized as part of cost of such assets till such time the assets is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit & Loss Account as period costs.

14. Earnings Per Share:

Basic EPS is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity share outstanding during the year. Diluted EPS is computed using the weighted average number of equity shares and diluted equity equivalent shares outstanding during the year except where the result would be anti- dilutive.

15. Provision, Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement is recognize when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions are determined based on Management estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current Management estimate.

Contingent liabilities are not recognise but are disclosed in the notes. Contingent asset are neither recognized nor disclosed in the financial statements. Outstanding Bank Guarantee as on 31st March 2011 is Rs. 15,886.25 Lacs and outstanding Letter of Credit (L.C.) as on 31st March 2011 is Rs. 1,222.99 Lacs.

16. Segmental Reporting:

As the Management information system of the Company recognises and monitors "Construction" as the only business segment, the accounting standards "Segmental Reporting" does not apply.

17. Retirement Benefits:

i) Contribution to Provident Fund is charged to the profit and loss account. Provident Fund contribution is made to the Government Administered Provident Fund. Company has no further obligation beyond this contribution charged in financial statement.

ii) Company also provides for Retirement Benefits in the form of Gratuity. Such Benefits are provided for based on valuation on projected unit credit method made by independent actuaries as at the Balance Sheet date.

iii) Leave encashment is paid to employees on annual basis and recognized as expenses when it is incurred

18. Accounting for Joint Venture Contracts:

In respect of contracts executed in integrated joint venture under profit sharing arrangements (assessed as Partnership Firm under the Income Tax laws) the profit or loss is accounted for, as when it is determined by the joint venture and the net investment in the joint venture is reflected as Investments / Current Assets.

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Mar 31, 2010

1. Accounting Concepts:

The accompanying financial statements have been prepared to comply in all material respects with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Accounting of Construction Contract:

The Company follows the percentage completion method as mentioned in Accounting Standard (AS) 7 Construction Contracts" on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and profit so determined has been accounted for proportionate to the percentage of actual work done.

Claims are accounted as income in the year of receipt of arbitration award or acceptance by client or evidence of acceptance received.

3. Revenue Recognition:

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend is recognized as and when the right to receive is established.

4. Fixed Assets:

Fixed Assets are valued at cost less accumulated depreciation / amortization. Cost comprises the purchase price and any other expenses related to acquisitions and installation and any attributable cost of bringing the asset to its working condition for its intended use.

5. Depreciation:

a) Depreciation on Fixed Assets is being provided on Written Down value Method as specified in Schedule XIV to the Companies Act, 1956.

b) Depreciation in respect of additions to fixed assets is provided on pro-rata basis from the date on which such assets are acquired/ put to use.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their respective rates on pro-rata up to the date on which such assets are sold, discarded or demolished

6. Impairment of Assets:

According to AS-28 on "Impairment of Assets" an Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. Impairment Loss is charged to Profit and Loss A/c in the year in which impairment is identified.

7. Valuation of Inventories:

a) Inventories are valued at the lower of cost or net realizable value except waste/scrap which is valued at net realizable value. The cost is computed on FIFO basis.

b) Work in progress on construction contracts reflect the value of material inputs and expenses including appropriate overheads incurred on such contracts, at cost.

8. Investments:

Long-term investments are carried at cost.

9. Lease Transactions:

Leases, where significant portion of risk and reward of ownership are retained by the lesser, are classified as Operating Leases and lease rentals thereon are charged to the Profit and Loss Account.

10. Provision for Taxes:

Provision for current tax is determined as the amount of tax payable in respect of taxable income for the year, as per the provisions of Income Tax Act, 1961.

Deferred Tax resulting from timing difference between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.

11. Foreign Exchange Transaction:

Transactions in foreign currencies are recorded in the books of Account at the exchange rate prevailing on the date of transaction.

12. Borrowing Cost:

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are capitalized as part of cost of such assets till such time the assets is ready for its intended use. A qualifying asset is one that requires substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Profit and Loss Account as an expenses in the period in which they are incurred.

13. Earning Per Share:

Basic EPS is computed using the weighted average number of equity share outstanding during the year. Diluted EPS is computed using the weighted average number of equity and diluted equity equivalent shares outstanding during the year except where the result would be anti- dilutive.

14. Provision, Contingent Liabilities Contingent Asset:

Provision involving substantial degree of estimation in measurement is recognize when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Provisions are determined based on Management estimates required to settle the obligation at the Balance Sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current Management estimate.

Contingent liabilities are not recognize but are disclosed in the notes. Contingent asset are neither recognized nor disclosed in the financial statements. Outstanding Bank Guarantee as on March 31, 2010 is Rs. 8,344.99 Lacs.

15. Segmental Reporting:

As the Management information system of the Company recognises and monitors "Construction" as the only business segment, the accounting standards "Segmental Reporting" does not apply.

16. Retirement Benefits:

i) Contribution to Provident Fund is charged to the profit and loss account. Provident Fund contribution is made to the Government Administered Provident Fund. Company has no further obligation beyond this contribution charged in financial statement.

ii) Company also provides for Retirement Benefits in the form of Gratuity. Such Benefits are provided for, based on valuation, as at the Balance Sheet date, made by independent actuaries. Company has taken Group Gratuity Policy of L.I.C. of India and Premium paid is recognized as expenses when it is incurred.

iii) Leave encashment is paid to employees on annual basis and recognized as expenses when it is incurred

17. Accounting for Joint Venture Contracts:

In respect of contracts executed in integrated joint venture under profit sharing arrangements (assessed as Partnership Firm under the Income Tax laws) the profit or loss is accounted for, as when it is determined by the joint venture and the net investment in the joint venture is reflected as investments.