Mar 31, 2014
A) The Accounts are prepared under the historical cost convention,
except revaluation of certain Fixed Assets, as stated in D (ii) below
and that those comply with the Companies Act, 1956 ( Which continue to
be applicable in respect of section 133 of Companies Act, 2013 in terms
of circular 15/2013 dated 13.09.2013 of the Ministry of Corporate
Affairs as well as per circular 08/2014 dated 04.04.2014of the Ministry
of Corporate Affairs) and with the Applicable Accounting Standards ( AS
) and statements issued by the Institute of Chartered Accountants of
India.
B) Use of Estimates
The presentation of financial statements in conformity with the
Generally Accepted Accounting Principles requires 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 the actual result and estimates are recognized in
the period in which the results are known / materialized.
C) Revenue Recognition
Revenue from construction and project related activities is recognized
by applying percentage of completion to the contract value. Percentage
of completion is determined as a proportion of cost incurred to date to
the total estimated cost. No profit is recognized until a contract has
progressed to the point where ultimate realisable profit can be
reasonably determined. Full provision is made for any loss in the year
in which, it is foreseen.
Additional Claims (including for escalation), which in the opinion of
the Management are recoverable on the contract, are recognized as and
when claims are lodged and accepted by client. Extra work is accounted
for, after Clients acceptance or realization.
Income from technical services is accrued as per terms of relevant
agreement. Similarly, revenue from services rendered is recognized
based on services rendered.
D) Fixed Assets and Depreciation
I. Fixed Assets are generally stated at cost inclusive of all expenses
directly attributable in bringing the Assets to their working
condition.
II. Based on independent valuation reports by approved valuers, the
Company had revalued its Land and Buildings as on March 31, 1989 and
certain Assets such as Building, Plant & Machinery and Cranes as on
March 31, 1994. The surplus arising on such revaluation was credited to
''Revaluation Reserve'' and the incremental annual differential
depreciation on account of the revaluation is being charged against
such Reserve.
Based on independent valuation reports by approved valuers the Company
had revalued its Land, Building, Plant and Machinery (including Cranes)
as on March 31, 2005 , and the excess of revalued amount , over the
then carrying value of the said assets has been credited to
''Revaluation Reserve.''In pursuance to the Scheme of Arrangement
sanctioned by the Bombay High Court, Land , Building and Plant &
Machinery of the Company post merger were revalued as on 1st January
2009 by independent valuers and were taken at fair values. The excess
of revalued amount, over the then carrying value of the said assets
has been credited to ''General Reserve.
Depreciation on Fixed Assets is provided on straight line method,
including revalued amount, at the rates prescribed under Schedule XIV
to the Companies Act, 1956.
Impairment of Assets, Fixed Assets were reviewed for impairment with
reference to their carrying cost compared to the recoverable value and
the effect of impairment, if any, is considered in the Statement of
Profit and Loss in the accordance with AS 28.
E) Investments
Investments (Long term) are stated at cost, less provision for
permanent diminution in the value, if any. Current Investments are
stated at the lower of cost and market value.
F) Inventories
i) Inventory of Consumables, Stores and Spares at Project Sites, is
valued at cost on Weighted Average Price or net realizable value,
whichever is less.
ii) Work in Progress on construction contracts is valued at cost -
comprising Materials, Labor and Site Overheads or proportionate
contract value or net realizable value, whichever is less and as
certified by Management.
iii) Loose Tools stock and Tools & Tackles for Domestic operations,
purchased during the year, are amortized over a period of three years
and those used for Overseas operations are expensed to Site cost in the
year of Purchase.
G) Contract Costs
All the expenditure incurred at / for contract sites is shown under
Contract Costs. Taxes payable on Foreign contracts are recognized when
determined and paid / withheld.
H) Employee Benefit Expenses
i) Company provides liability towards Contribution to Provident Fund
including Employee''s Deposit Linked Insurance Scheme and it is
charged to the Profit and Loss account on accrual basis.
ii) Company provides liability for Gratuity as per the Actuarial
Valuation and the same is accrued and provided.
iii) Company provides for liability for Superannuation on accrual basis
and incremental liability for the period is provided.
iv) Liability on account of encashment of Leave entitlement of
employees in accordance with the Rules of the Company is provided for
the Current year on the basis of actuarial valuation.
I) Foreign Currency Transactions
i) Foreign Currency transactions are accounted for at the rates
prevailing on the date of the transaction. Exchange rate Differences
are accounted for under appropriate head in the Profit and Loss
Account.
ii) Translation of the financial statements of foreign site offices
other than fixed assets, have been made in accordance with the AS 11
dealing with Accounting for the Effect of Changes in Foreign Exchange
Rates issued by the Institute of Chartered Accountants of India.
J) Taxes on Income
Provision for Income Tax is made on the basis of taxable income for the
current accounting period in accordance with the Income Tax Act , 1961.
Deferred tax asset / liability is calculated at the current income tax
rate and is recognised on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of
reversal in one or more subsequent periods. Deferred tax assets subject
to the consideration of prudence, are recognised and carried forward
only to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax
assets can be realised.
Tax has been provided in accordance with provisions of Income Tax Act.
K) Contingent Liabilities
All known Liabilities, wherever material, are provided for and
Liabilities, which are disputed, are referred to by way of Notes on
Accounts.
L) Sundry Debtors, Loans & Advances
Specific debts and advances identified as irrecoverable or doubtful, if
any, are written off or provided for, respectively. Trade Receivables /
Trade Payables pertaining to back to back contracts are shown at net
values.
Mar 31, 2012
A) The Accounts are prepared on the basis of Going Concern and under
the historical cost convention, except revaluation of certain Fixed
Assets, as stated in D (ii) below and that those comply with the
Companies Act, 1956 and with the Applicable Accounting Standards (AS)
and statements issued by the Institute of Chartered Accountants of
India.
B) Use of Estimates
The presentation of financial statements in conformity with the
Generally Accepted Accounting Principles requires 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 the actual result and estimates are recognized in
the period in which the results are known / materialized.
C) Revenue Recognition
Revenue from construction and project related activities is recognized
by applying percentage of completion to the contract value. Percentage
of completion is determined as a proportion of cost incurred to date to
the total estimated cost. No profit is recognized until a contract has
progressed to the point where ultimate realizable profit can be
reasonably determined. Full provision is made for any loss in the year
in which, it is foreseen.
Additional Claims (including for escalation), which in the opinion of
the Management are recoverable on the contract, are recognized as and
when claims are lodged and accepted by client. Extra work is accounted
for, after Clients acceptance or realization.
Income from technical services is accrued as per terms of relevant
agreement. Similarly, revenue from services rendered is recognized
based on services rendered.
D) Fixed Assets and Depreciation
i) Fixed Assets are generally stated at cost inclusive of all expenses
directly attributable in bringing the Assets to their working
condition.
ii) Based on independent valuation reports by approved valuers, the
Company had revalued its Land and Buildings as on March 31, 1989 and
certain Assets such as Building, Plant & Machinery and Cranes as on
March 31, 1994. The surplus arising on such revaluation was credited to
ÃRevaluation Reserveà and the incremental annual differential
depreciation on account of the revaluation is being charged against
such Reserve.
Based on independent valuation reports by approved valuers the Company
had revalued its Land, Building, Plant and Machinery (including Cranes)
as on March 31, 2005, and the excess of revalued amount, over the then
carrying value of the said assets has been credited to ÃRevaluation
Reserve.Ã
In pursuance to the Scheme of Arrangement sanctioned by the Bombay High
Court, Land, Building and Plant & Machinery of the Company post merger
were revalued as on 1st January 2009 by independent valuers and were
taken at fair values. The excess of revalued amount, over the then
carrying value of the said assets has been credited to ÃGeneral
Reserve.
Depreciation on Fixed Assets is provided on straight line method,
including revalued amount, at the rates prescribed under Schedule XIV
to the Companies Act, 1956.
Impairment of Assets, Fixed Assets were reviewed for impairment with
reference to their carrying cost compared to the recoverable value and
the effect of impairment, if any, is considered in the Statement of
Profit and Loss in the accordance with AS 28.
E) Investments
Investments (Long term) are stated at cost, less provision for
permanent diminution in the value, if any. Current Investments are
stated at the lower of cost and market value.
F) Inventories
i) Inventory of Consumables, Stores and Spares at Project Sites, is
valued at cost on Weighted Average Price or net realizable value,
whichever is less.
ii) Work in Progress on construction contracts is valued at cost -
comprising Materials, Labor and Site Overheads or proportionate
contract value or net realizable value, whichever is less.
iii) Loose Tools stock and Tools & Tackles for Domestic operations,
purchased during the year, are amortised over a period of three years
and those used for Overseas operations are expensed to Site cost in the
year of Purchase.
G) Contract Costs
All the expenditure incurred at / for contract sites is shown under
Contract Costs. Taxes payable on Foreign contracts are recognized when
determined and paid / withheld.
H) Employee Benefit Expenses
i) Company provides liability towards Contribution to Provident Fund
including EmployeeÃs Deposit Linked Insurance Scheme and it is
charged to the Profit and Loss account on accrual basis, accordingly.
ii) Company provides liability for Gratuity as per the actuarial
valuation and the same is accrued and provided.
iii) Company provides for liability for Superannuation on accrual basis
and incremental liability for the period is provided.
iv) Liability on account of encashment of Leave entitlement of
employees in accordance with the Rules of the Company is provided for
the Current year on the basis of actuarial valuation.
I) Foreign Currency Transactions
i) All other Foreign Currency transactions are accounted for at the
rates prevailing on the date of the transaction. Exchange rate
Differences are accounted for under appropriate head in the Profit and
Loss Account.
ii) Translation of the financial statements of foreign site offices
other than fixed assets, have been made in accordance with the AS 11
dealing with Accounting for the Effect of Changes in Foreign Exchange
Rates issued by the Institute of Chartered Accountants of India.
J) Taxes on income
Provision for Income Tax is made on the basis of taxable income for the
current accounting period in accordance with the Income Tax Act, 1961.
Deferred tax asset / liability is calculated at the current income tax
rate and is recognized on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets subject to the consideration of prudence, are
recognized and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Tax has been provided in accordance with provisions of Income Tax Act.
Tax has been provided during current year for current tax liability and
foreign taxes.
K) Contingent Liabilities
All known Liabilities, wherever material, are provided for and
Liabilities, which are disputed, are referred to by way of Notes on
Accounts.
L) Sundry Debtors, Loans & Advances
Specific debts and advances identified as irrecoverable or doubtful, if
any, are written off or provided for, respectively. Trade Receivables /
Trade payables pertaining to back to back contracts are shown at net
values.
Mar 31, 2011
Notes to Abridged Balance Sheet as at March 31, 2011 and Abridged
Profit and Loss for the year ended on that date.
(The number against the Notes to Accounts refer to those in the
Un-abridged Annual Accounts for the Year ended March31, 2011)
1) In terms of "Accounting Treatment" referred to in the Scheme of
Arrangement sanctioned by the Bombay High Court in its Order dated 6th
March, 2009, the following accounting entries were made in the
accounts.
(a) Land, Building and Plant & Machinery, other Assets & Liabilities
were revalued / reviewed as on 1st January, 2009 at their fair market
values in respect of the Company and the erstwhile subsidiary and the
notional appreciation representing the difference between the revalued
values and their original cost amounting to Rs. 222.47 Million (net)
was credited to General Reserve which otherwise would have been taken
to Fixed Asset Revaluation Reserve during FY. 2008-09.
(b) Arrears of Deferred Tax Asset of Rs. 121.15 Million relating to
pre-merger period has been deducted from the above General Reserve
instead of recognizing in the Profit and Loss Account during FY 2009
-10.
The above treatment is however at variance with the Accounting Standard
Nos. 10 and 22 and the Generally Accepted Accounting principles, and
the General Reserve is not an appropriation out of profits, available
for dividend.
2) Sales (Income from Contracts ) include Claim of Rs. 135.78 Million
relating to an earlier year.
3) The overseas operations are not exposed to material loss on exchange
in view of natural hedging, accordingly the Company has not hedged
Overseas Financial Exposures against Currency Fluctuation. The amount
outstanding as on March 31,2011 Rs. 61.44 Million (Previous year Rs.
96.46 Million).
The Company has not entered into speculative derivative transactions.
Accounting Ratios :
i) Sales to Total Assets : 2.92 Times (Previous Year- 3.17 Times )
ii) Operating Profit to Closing Capital Employed: 24.04 % (Previous
Year - 26.69 %)
iii) Return on Closing Net Worth: 20.65% (Previous Year- 30.19%)
iv) Profit to Sales : 6.17% (PreviousYear- 7.62%)
Mar 31, 2010
A) The Accounts are prepared on the basis of Going Concern and under
the historical cost convention, except revaluation of certain Fixed
Assets, as stated in D (ii) below and that those comply with the
Companies Act, 1956 and with the Applicable Accounting Standards ( AS )
and statements issued by the Institute of Chartered Accountants of
India.
B) Use of Estimates
The presentation of financial statements in conformity with the
Generally Accepted Accounting Principles requires 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 the actual result and estimates are recognized in
the period in which the results are known / materialized.
C) Revenue Recognition
Revenue from construction and project related activities is recognized
by applying percentage of completion to the contract value. Percentage
of completion is determined as a proportion of cost incurred to date to
the total estimated cost. No profit is recognized until a contract has
progressed to the point where ultimate realisable profit can be
reasonably determined. Full provision is made for any loss in the year
in which, it is foreseen.
Additional Claims (including for escalation), which in the opinion of
the Management are recoverable on the contract, are recognized as and
when claims are lodged and accepted by client. Extra work is accounted
for after Clients acceptance or realization.
Income from technical services is accrued as per terms of relevant
agreement. Similarly, revenue from services rendered is recognized
based on services rendered.
D) Fixed Assets and Depreciation
i) Fixed Assets are generally stated at cost inclusive of all expenses
directly attributable in bringing the Assets to their working
condition.
ii) Based on independent valuation reports by approved valuers, the
Company had revalued its Land and Buildings as on March 31, 1989 and
certain Assets such as Building, Plant & Machinery and Cranes as on
March 31, 1994. The surplus arising on such revaluation was credited to
Revaluation Reserve and the incremental annual differential
depreciation on account of the revaluation is being charged against
such Reserve.
Based on independent valuation reports by approved valuers the Company
had revalued its Land, Building, Plant and Machinery (including Cranes)
as on March 31, 2005 , and the excess of revalued amount , over the
then carrying value of the said assets has been credited to
Revaluation Reserve.
In pursuance to the Scheme of Arrangement sanctioned by the Bombay High
Court, Land , Building and Plant & Machinery of the Company post merger
were revalued as on 1st January 2009 by independent valuers and were
taken at fair values. The excess of revalued amount, over the then
carrying value of the said assets has been credited to General Reserve.
Depreciation on Fixed Assets is provided on straight line method,
including revalued amount, at the rates prescribed under Schedule XIV
to the Companies Act, 1956.
As per AS 28- Impairment of Assets, Fixed Assets were reviewed for
impairment with reference to their carrying cost compared to the
recoverable value and the effect of impairment, if any , is considered
in the Profit and Loss Account.
E) Investments
Investments (Long term) are stated at cost, less provision for
permanent diminution in the value, if any. Current Investments are
stated at the lower of cost and market value.
F) Inventories
i) Inventory of Consumables, Stores and Spares at Project Sites
included under Contract Work in Progress, is valued at cost on FIFO
basis or net realizable value, whichever is less.
ii) Work in Progress on construction contracts is valued at cost -
comprising Materials, Labor and Site Overheads or proportionate
contract value or net realizable value whichever is less.
iii) Loose Tools stock and Tools & Tackles for Domestic operations,
purchased during the year, are amortized over a period of three years
and those used for Overseas operations are expensed to Site cost in the
year of purchase.
G) Contract Costs
All the expenditure incurred at / for contract sites is shown under
Contract Costs. Taxes payable on Foreign Contracts are recognized on
payment basis.
H) Employee Benefits
i) Company provides liability towards Contribution to Provident Fund
including Employees Deposit Linked Insurance Scheme and it is charged
to the Profit and Loss account on accrual basis, accordingly.
ii) Company provides liability for Gratuity as per the actuarial
valuation and the same is accrued and provided.
iii) Company provides for liability for Superannuation on accrual basis
and incremental liability for the period is provided.
iv) Liability on account of encashment of Leave entitlement of
employees in accordance with the Rules of the Company is provided for
the current year on the basis of actuarial valuation.
I) Foreign Currency Transactions
i) All other Foreign Currency transactions are accounted for at the
rates prevailing on the date of the transaction. Exchange rate
differences are accounted for under appropriate head in the Profit and
Loss Account.
ii) Translation of the financial statements of foreign site offices
other than fixed assets have been made in accordance with the AS 11
dealing with Accounting for the Effect of Changes in Foreign Exchange
Rates issued by the Institute of Chartered Accountants of India.
J) Taxes on income
Provision for Income Tax is made on the basis of taxable income for the
current accounting period in accordance with the Income Tax Act , 1961.
Deferred tax asset / liability is calculated at the current income tax
rate and is recognised on timing differences, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
Deferred tax assets subject to the consideration of prudence, are
recognised and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
Tax has been provided in accordance with provisions of Income Tax Act.
K) Contingent Liabilities
All known Liabilities, wherever material, are provided for and
Liabilities, which are disputed, are referred to by way of Notes on
Accounts.
L) Sundry Debtors, Loans & Advances
Specific debts and advances identified as irrecoverable or doubtful, if
any, are written off or provided for, respectively. Debtors / Creditors
pertaining to back to back contracts are shown at net values.