Mar 31, 2016
1 Basis of Accounting
The financial statements are prepared under historical cost convention, on going concern concept and in compliance with the accounting principles generally accepted in India, including the Accounting Standards specified under section 133 of the Companies Act, 2013 ("the Act") read with Rule 7 of the Companies (Accounts) Rules, 2014. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis to the extent measurable and where there is certainty of ultimate realization in respect of incomes. Accounting policies not specifically referred to otherwise, are consistent and in consonance with the generally accepted accounting policies.
2 Fixed Assets
(a) Tangible assets
Tangible assets are stated at cost, inclusive of incidental expenses related thereto and are net of recoverable taxes less accumulated depreciation and accumulated impairment loss, If any.
(b) Intangible assets
Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment. Internally generated intangible assets, excluding development cost, are expensed as incurred unless technical and commercial feasibility of the project is demonstrated, future economic benefits are probable, the Company has an intention and ability to complete and use or sell the intangible and the costs can be measured reliably.
3 Depreciation and amortization
(a) Depreciation on tangible fixed assets is provided on the written-down-value method based on useful life of the assets as prescribed under Schedule II to the Act. Depreciation on additions/ deletions to fixed assets is calculated pro-rata from/up to the date of such additions/ deletions.
(b) Intangible fixed assets are amortized on a straight line basis over the estimated useful economic life. The Company uses a rebuttable presumption that the useful life of an intangible asset will not exceed five years from the date when the asset is available for use.
4 Borrowing Costs
Borrowing cost include 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 adjustment ot the interest cots. 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 or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
5 Investments
(a) Investments, which are readily realizable 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. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis.
(b) Investment other than current investments, are classified as long-term investments and are stated at cost. Provision for diminution in value of Long term investments is made only if such a decline is other than temporary.
(c) An investment in land or buildings, which is not intended to be occupied substantially for use by, or in the operations of the company, is classified as investment property. Investment properties are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.
6 Inventories
Inventories of raw materials, stores and consumables and work in progress are valued at lower of cost or net realizable value on first-in-first out basis. Work in progress on construction contracts reflects the value of material inputs and expenses including appropriate overheads incurred on such contracts, at cost. Cost for this purpose comprises of raw material cost & appropriate overheads incurred for bringing them to their present condition.
Traded goods are valued at the cost or net realizable value which ever is less and cost is determined on weighted average basis/ first-in-first-out basis.
7 Cash and Cash equivalents
Cash and cash equivalent for the purpose of cash flow statement comprise cash in hand and cash at bank, cheques in hand and fixed deposits with maturity of three months or less.
8 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
9 Taxes on Income
(a) Provision for current tax is made considering various allowances and benefits available to the Company under the provisions of Income Tax Act, 1961.
(b) In accordance with Accounting Standard AS-22 "Accounting for Taxes on Income", deferred tax resulting from timing differences between book and tax profits are accounted for at tax rate substantially enacted by the Balance Sheet date to the extent the timing differences are expected to be crystallized. Deferred Tax Assets arising on account of carried forward losses and unabsorbed depreciation as per Income Tax Act, 1961 are recognized to the extent there is a virtual certainty supported by convincing evidence that such assets will be realized.
10 Employee Benefits
(a) Defined Contribution Plans
The Company contributes on a defined contribution basis to Employee''s Provident Fund and Employee''s State Insurance Fund towards post employment benefits, all of which are administered by the respective Government authorities, and has no further obligation beyond making its contribution, which is expensed in the year to which it pertains.
(b) Defined Benefit Plans
The Company has a Defined Benefit Plan namely Gratuity for all its employees. The liability for the defined benefit plan of Gratuity is determined on the basis of an actuarial valuation by an independent actuary at the year end, which is calculated using projected unit credit method.
Actuarial gains and losses which comprise experience adjustment and the effect of changes in actuarial assumptions are recognized in the statement of Profit and Loss.
(c) Employee Leave Entitlement
The employees of the Company are entitled to leave as per the leave policy of the Company. The liability in respect of unutilized leave balances is provided based on an actuarial valuation carried out by an independent actuary as at the year end and charged to the statement of Profit and Loss.
11 Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rates prevailing on the date of such transactions. Monetary assets and liabilities as at the Balance Sheet date are translated at the rates of exchange prevailing at the date of the Balance Sheet. Gains and losses arising on account of differences in foreign exchange rates on settlement/ translation of monetary assets and liabilities are recognized in the Statement of Profit and Loss. Non-monetary foreign currency items are carried at cost.
12 Revenue Recognition
(a) Income from construction is recognized as determined by the project manager by taking into consideration actual cost incurred and profit evaluated and duly certified by the client. All other income are recognized and accounted for an accrual basis. Losses on contracts are fully accounted for as and when incurred. Foreseeable losses are accounted for when they are determined. Insurance claims are accounted for on cash basis. Price escalation claims and additional claims, which in the opinion of the management, are probable of resulting in revenue and are capable of being reliable measured, are recognized as revenue.
(b) Turnover represent work certified as determined by the project managers by taking into consideration the actual costs incurred and profit evaluated and duly certified by the client and is inclusive of service tax.
(c) Dividends are accounted for when the right to receive dividend is established.
(d) Income from interest on deposits, loans and interest bearing securities is recognized on time proportionate method.
(e) Share of profit/loss from firms, in which the company is a partner, is accounted for in the financial year ending on (or immediately before) date of the balance sheet.
13 Impairment of Assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of Profit and Loss. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.
14 Provisions, Contingent Liabilities and Contingent Assets
The Company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.
Where there is a possible obligation or a present obligation but the likelihood of outflow of resources is remote, no provision or disclosure is made.
Contingent Assets are neither recognized nor disclosed.
15 Accounting Estimates
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Difference between the actual results and the estimates are recognized in the period in which the results are known/ materialized.
16 Earning Per Share
"Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue that have changed the number of equity shares outstanding, without a corresponding change in the resources.
For the purpose of calculating diluted earnings per share, the net profits for the period attributable to equity shareholders and weighted average number of shares outstanding during the period are adjusted for the effects of all potential equity shares.
17 Warranty
Warranty expense in respect of manufacturing sales made by the Company are provided for on the basis of estimated future costs that will be incurred under product warranties presently in force.
18 Accounting for Joint Venture Contracts
(a) Contracts executed in joint venture under work sharing arrangements (consortium) are accounted in accordance with the accounting policy followed by the company as that of an independent contract to the extent work is performed.
(b) In respect of contracts executed in integrated joint ventures under profit sharing arrangements, the service rendered to the joint ventures are accounted as income on accrual basis. The profit/ loss is accounted for as and when it is determined by the joint ventures and the net investment in the Joint Ventures is reflected as investments.
Mar 31, 2013
1. Basis of Accounting
The financial statements are prepared under historical cost convention,
on-going concern concept and in compliance with the Accounting
Standards notified under section 211(3C) of the Companies Act, 1956
(the "Act"). The Company follows mercantile system of accounting and
recognises income and expenditure on accrual basis to the extent
measurable and where there is certainty of ultimate realisation in
respect of incomes. Accounting policies not specifically referred to
otherwise, are consistent and in consonance with the generally accepted
accounting policies.
2. Fixed Assets
a) Tangible assets
Tangible assets are stated at cost, inclusive of incidental expenses
related thereto and are net of recoverable taxes less accumulated
depreciation and accumulated impairment loss. If any.
b) Intangible assets
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment. Internally generated intangible assets,
excluding development cost, are Expenses as incurred unless technical
and commercial feasibility of the project is demonstrated, future
economic benefits are probable, the Company has an intention and
ability to complete and use or sell the intangible and the costs can be
measured reliably.
3. Depreciation and amortization
a) Depreciation on tangible fixed assets is provided on the
written-down-value method at the rates and in the manner prescribed
under Schedule XIV to the Act. Depreciation on additions/ deletions to
fixed assets is calculated pro-rata from/up to the date of such
additions/deletions.
b) Intangible fixed assets are amortised on a straight line basis over
the estimated useful economic life. The Company uses a rebuttable
presumption that the useful life of an intangible asset will not exceed
five years from the date when the asset is available for use.
c) Assets individually costing Rs. 0.05 Lacs or less are fully
depreciated in the year of purchase.
4. Borrowing Costs
a) Borrowing cost include interest, amortisation of ancillary costs
incurred in connection with the arrangement of borrowing and exchange
differences arising from foreign currency borrowing to the extent they
are regarded as adjustment to the interest costs.
b) 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 or sale
are capitalised as part of the cost of the respective asset. All other
borrowing costs are expenses in the period they occur.
5. Investments
a) 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. Current investments are
carried in the financial statements at lower of cost and fair value
determined on an individual investment basis.
b) Investment other than current investments, are classified as
long-term investments and are stated at cost. Provision for diminution
in value of Long term investments is made only if such a decline is
other than temporary.
c) An investment in land or buildings, which is not intended to be
occupied substantially for use by, or in the operations of the company,
is classified as investment property. Investment properties are stated
at cost, net of accumulated depreciation and accumulated impairment
losses, if any.
6. Inventories
a) Inventories of raw materials, stores and consumables and
work-in-progress are valued at lower of cost or net realisable value on
first-in-first- out basis. Work in progress on construction contracts
reflects the value of material inputs and expenses including
appropriate overheads incurred on such contracts, at cost. Cost for
this purpose comprises of raw material cost & appropriate overheads
incurred for bringing them to their present condition.
b) Traded goods are valued at the cost or net realizable value
whichever is less and cost is determined on first-in-first-out basis.
7. Taxes on Income
a) Provision for current tax and fringe benefit tax is made considering
various allowances and benefits available to the Company under the
provisions of IncomeTax Act, 1961.
b) In accordance with Accounting Standard AS-22 "Accounting for Taxes
on Income", deferred tax resulting from timing differences between book
and tax profits are accounted for at tax rate substantially enacted by
the Balance Sheet date to the extent the timing differences are
expected to be crystalised.
c) Deferred Tax Assets arising on account of carried forward losses and
unabsorbed depreciation as per Income Tax Act, 1961 are recognised to
the extent there is a virtual certainty supported by convincing
evidence that such assets will be realised.
8. Sales Tax / WCT / VAT
a) Where the Company has contractual right to claim equal amounts
regarding the said liability from the clients, the same is not charged
as expenditure.
b) Where the ultimate liability is on the Company, the same is
accounted provisionally as per available information and the final
adjustment for the same is done as and when the demand is raised by the
concerned authorities on the Company. Sales tax expenses include amount
paid on account of assessment order issued by concerned authorities.
9. Employee Benefits
a) Defined Contribution Plans
The Company contributes on a defined contribution basis to Employee''s
Provident Fund and Employee''s State Insurance Fund towards
post-employment benefits, all of which are administered by the
respective Government authorities, and has no further obligation beyond
making its contribution, which is an expense in the year to which it
pertains.
b) Defined Benefit Plans
The Company has a Defined Benefit Plan namely Gratuity for all its
employees. The liability for the defined benefit plan of Gratuity is
determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method. Actuarial gains and losses which comprise experience
adjustment and the effect of changes in actuarial assumptions are
recognised in the Profit and Loss Account.
c) Employee Leave Entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilised leave
balances is provided based on an actuarial valuation carried out by an
independent actuary as at the year end and charged to the Profit and
Loss Account.
10. Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement/ translation of monetary assets and liabilities are
recognised in the Profit and Loss Account. Non-monetary foreign
currency items have been carried at cost.
11. Revenue Recognition
a) Income from construction is recognised as determined by the project
manager by taking into consideration actual cost incurred and profit
evaluated and duly certified by the client. All other income are
recognised and accounted for on accrual basis. Losses on contracts are
fully accounted for as and when incurred. Foreseeable losses are
accounted for when they are determined. Insurance claims are accounted
for on cash basis.
b) Turnover represents work certified as determined by the project
managers by taking into consideration the actual cost incurred and
profit evaluated and duly certified by the client and is inclusive of
service tax.
c) Dividends are accounted for when the right to receive dividend is
established.
d) Income from interest on deposits, loans and interest bearing
securities is recognised on time proportionate method.
e) Share of profit / loss from firms, in which the company is a
partner, is accounted for in the financial year ending on (or
immediately before) the date of the balance sheet.
12. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account. If at the Balance Sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
13. Provisions, Contingent Liabilities and Contingent Assets
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources.
Where there is a possible obligation or a present obligation but the
likelihood of outflow of resources is remote, no provision or
disclosure is made.
Contingent Assets are neither recognised nor disclosed.
14. Accounting Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the reporting period.
Difference between the actual results and the estimates are recognized
in the period in which the results are known/ materialised.
15. Leases
a) Where the company is lessee
Finance leases, which effectively transfers to the company
substantially all the risks and rewards incidental to ownership of the
leased item, are capitalised at the inception of the lease term at the
lower of the fair value of the leased property and present value of
minimum lease payments. Lease payments are apportioned between the
finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability.
Finance charges have been recognised as finance cost in the statement
of profit and loss.
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vest with the lessor, have been recognised as
operating lease. Lease rental under operating lease are charged off to
the Profit and Loss Account as incurred.
b) Where the company is lessor
Leases in which the company transfers substantially all the risks and
rewards of the ownership are classified as finance leases. Assets given
under the finance lease have recognised at an amount equal to the net
investment in the lease. After initial recognition, the company
apportions lease rentals between the principal repayment and interest
income so as to achieve a constant rate of return on the net investment
outstanding in respect of finance lease.
Leases in which the company does not transfer substantially all the
risks and rewards of ownership of the asset are classified as operating
leases. Assets subject to operating leases are included in assets.
Lease income on an operating lease is recognised in the statement of
profit and loss on a straight-line basis over the lease term.
16. Accounting for Joint venture contracts
a) Contracts executed in joint venture under work sharing arrangements
(consortium) are accounted in accordance with the accounting policy
followed by the company as that of an independent contract to the
extent work is performed.
b) In respect of contracts executed in Integrated Joint Ventures under
profit sharing arrangements, the services rendered to the joint
ventures are accounted as income on accrual basis. The profit/loss is
accounted for, as and when it is determined by the Joint Ventures and
the net investment in the Joint Ventures is reflected as investments.
Mar 31, 2012
The financial statements are prepared under historical cost convention,
ongoing concern concept and in compliance with the Accounting Standards
notified under section 211(3C) of the Companies let, 1956 (the "let").
The Company follows mercantile system of accounting and recognized
income and expenditure on accrual basis to the extent measurable and
where there is certainty of ultimate realization in respect of incomes.
Accounting policies not specifically referred to otherwise, are consist
ent and in consonance with the generally accepted accounting policies.
a) Tangible assets
Tangible assets are stated at cost, inclusive of incidental expenses
related thereto and are net of recoverable taxes less accumulated
depreciation and accumulated impairment loss. If any.
b) Intangible assets
Intangible assets are recorded at the consideration paid for
acquisition of such assets and are carried at cost less accumulated
amortization and impairment. Internally generated intangible assets,
excluding development cost, are expensed as incurred unless technical
and commercial feasibility of the project is demonstrated, future
economic benefits are probable, the Company has an intention and
ability to complete and use or sell the intangible and the costs can be
measured reliably.
a) Depreciation on tangible fixed assets is provided on the
written-down-value method at the rates and in the manner prescribed
under Schedule XIV to the Act. Depreciation on additions/ deletions to
fixed assets is calculated pro-rata from/up to the date of such
additions/deletions.
b) Intangible fixed assets are amortized on a straight line basis over
the estimated useful economic life. The Company uses a rebuttable
presumption that the useful life of an intangible asset will not exceed
five years from the date when the asset is available for use.
c) Assets individually costing Rs. 0.05 lacs or less are fully
depreciated in the year of purchase.
a) Borrowing cost include 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 adjustment to the interest costs.
b) Borrowing costs directly attributable to the acquisition,
constitution or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale
are capitalized as part of the cost of the respective asset. All other
borrowing costs are expensed in the period they occur.
a) Investments, which are readily realizable 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. Current investments are
carried in the financial statements at lower of cost and fair value
determined on an individual investment basis.
b) Investment other than current investments, are classified as
long-term investments and are stated at cost. Provision for diminution
in value of Long-term investments is made only if such a decline is
other than temporary.
c) An investment in land or buildings, which is not intended to be
occupied substantially for use by, or in the operations of the company,
is classified as investment property. Investment properties are stated
at cost, net of accumulated depreciation and accumulated impairment
losses, if any.
a) Inventories of raw materials, stores and consumables and
work-in-progress are valued at lower of cost or net realizable value on
first-in-first-out basis. Work in progress on construction contracts
reflects the value of material inputs and expenses including
appropriate overheads incurred on such contracts, at cost. Cost for
this purpose comprises of raw material cost& appropriate overheads
incurred for bringing them to their present condition.
b) Traded goods are valued at the cost or net realizable value which
eve r is less and cost is determined on first-in-first-
a) Provision for current tax and fringe benefit tax is made considering
various allowances and benefits available to the Company under the
provisions of Income Tax Act, 1961.
b) In accordance with Accounting Standard AS-22 "Accounting for Taxes
on Income", deferred tax resulting from timing differences between book
and tax profits are accounted for at tax rate substantially enacted by
the Balance Sheet date to the extent the timing differences are
expected to be crystallized.
Deferred Tax Assets arising on account of carried forward losses and
unabsorbed depreciation as per Income Tax Act, 1961 are recognized to
the extent there is a virtual certainty supported by convincing
evidence that such assets will be realized.
a) Where the Company has contractual right to claim equal amounts
regarding the said liability from the clients, the same is not charged
as expenditure.
b) Where the ultimate liability is on the Company, the same is
accounted provisionally as per available information and the final
adjustment for the same is done as and when the demand is raised by the
concerned authorities on the Company. Sales tax expenses include amount
paid on account of assessment order issued by concerned authorities.
a) Defined Contribution Plans
The Company contributes on a defined contribution basis to Employee's
Provident Fund and Employee's State Insurance Fund towards
post-employment benefits, all of which are administered by the
respective Government authorities, and has no further obligation beyond
making its contribution, which is expensed in the year to which it
pertains.
b) Defined Benefit Plans
The Company has a Defined Benefit Plan namely Gratuity for all its
employees. The liability for the defined benefit plan of Gratuity is
determined on the basis of an actuarial valuation by an independent
actuary at the year end, which is calculated using projected unit
credit method.
Actuarial gains and losses which comprise experience adjustment and the
effect of changes in actuarial assumptions are recognized in the Profit
and Loss Account.
c) Employee Leave Entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. T he liability in respect of un-utilized leave
balances is provided based on an actuarial valuation carried out by an
independent actuary as at the year end and charged to the Profit and
Loss Account.
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement/translation of monetary assets and liabilities are
recognized in the Profit and Loss Account. Non-monetary foreign
currency items are carried at cost.
a) Income from construction is recognized as determined by the project
manager by taking into consideration actual cost incurred and profit
evaluated and duly certified by the client. All other income are
recognized and accounted for on accrual basis. Losses on contracts are
fully accounted for as and when incurred. Foreseeable losses are
accounted for when they are determined. Insurance claims are accounted
for on cash basis.
b) Turnover represents work certified as determined by the project
managers by taking into consideration the actual cost incurred and
profit evaluated and duly certified by the client and is inclusive of
service tax.
c) Dividends are accounted for when the right to receive dividend is
established.
d) Income from interest on deposits, loans and interest bearing
securities is recognised on time proportionate method.
e) Share of profit / loss from firms, in which the company is a
partner, is accounted for in the financial year ending on (or
immediately before) the date of the balance sheet.
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognized in the
Profit and Los s Account. If at the Balance Sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
- The Company recognizes a provision when there is a present
obligation as a result of a past event that probably requires an
outflow of resources and a reliable estimate can be made of the amount
of the obligation.
- A disclosure for a contingent liability is made when there is a
possible obligation represent obligation that may but probably will
not, require an outflow of resources.
- Where there is a possible obligation or a present obligation but
the likelihood of outflow of resources is remote, no provision or
disclosure is made.
- Contingent Assets are neither recognized nor disclosed.
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the reporting period. Difference
between the actual results and the estimates are recognized in the
period in which the results are known / materialized.
a) Where the company is lessee
- Finance leases, which effectively transfers to the company
substantially all the risks and rewards incidental to ownership of the
leased item, are capitalized at the inception of the lease term at the
lower of the fair value of the leased property and present value of
minimum lease payments. Lease payments are apportioned between the
finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability
Finance charges are recognized as finance cost in the statement of
profit and Lease arrangements where the risks and rewards incident to
ownership of an asset substantially vest with the less or, are
recognized as operating lease. Lease rental under operating lease are
charged off to the Profit and Loss Account as incurred.
b) Where the company is less or
- Leases in which the company transfers substantially all the risks
and rewards of the ownership are classified as finance leases. Assets
given under the finance lease are recognized at an amount equal to the
net investment in the lease. After initial recognition, the company
apportions lease rentals between the principal repayment and interest
income so as to achieve a constant rate of return on the net investment
outstanding in respect of finance lease.
- Leases in which the company does not transfer substantially all the
risks and rewards of ownership of the asset are classified as operating
leases. Assets subject to operating leases are included in assets.
Lease income on an operating lease is recognized in the statement of
profit and loss on a straight -line basis over the lease term.
a) Contracts executed in joint venture under work sharing arrangements
(consortium ) are accounted in accordance with the accounting policy
followed by the company as that of an independent contract to the
extent work is performed.
b) In respect of contracts executed in Integrated Joint Ventures under
profit sharing arrangements, the services rendered to the joint
ventures are accounted as income on accrual basis. The profit/loss is
accounted for, as and when it is determined by the Joint Ventures and
the net investment in the Joint Ventures is reflected as investments.
- The Company has only one class of equity shares having a par value
of Rs. 2 Per share. Each holder of equity shares is entitled to one
vote per share. The company declares and pays dividends in Indian
rupees. The dividend proposed by the Board of Directors is subject to
the approval of the shareholders in the ensuing Annual General Meeting.
- During the year ended March 31, 2012 the amount of per share
dividend recognized as distributions to equity shareholders was Re. 1
(Previous Year: Re. 1).
- 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.
Details of security and terms of repayment
- Vehicle and equipment loans
Secured against specific charge on vehicles and equipment. These are
repayable in EMIs over a period of time spread from one year to five
years.
- Other Loans
a) To the extent of Rs.4,054.28 lacs are
Secured by: First pari -passu charge in favor of the project Lenders
by way of 1) Hypothecation of all Movable tangible and intangible
assets receivables cash and investment Created as part of project 2)
Monies lying in Escrow Account into which all the Project and revenues
are to be deposited 3) Assignment of all rights title benefits claims
and demands under Project document.
Term of repayment: 10 equal quarterly installments commencing after
moratorium period of 15 months from the date of first disbursement
Interest to be serviced monthly as and when due.
b) To the extent of Rs. 2,485.64 lacs are
Secured by: Specific Exclusive Charge on the Equipment proposes to be
purchased (Excavators Tippers dumpers) under the facility security cover
to remain at 1.15 times of the Facility amount outstanding.
Term of repayment: 3 equal semi-annual installments commencing 30
months from date of First drawdown in compliance with RBI minimum
maturity guidelines.
c) To the extent of Rs. 3,125.00 lacs are
Secured by; First charge by way of hypothecation on the entire Current
Assets of the company (excluding project specific current assets) on
pari pasu basis with all other banks / Financial institution which have
extended term loans and fund based and non-fund based working capital
facilities to the company against the security of its Current Assets.
Term of repayment: In 3 years (including moratorium period of one year)
commencing from June 11 quarterly payments.
d) To the extent of Rs. 2 91.39 lacs are
Secured by: Pari passu first charge by way of hypothecation of current
assets stores and spares with other banks under Multiple Banking
Arrangement.
Term of repayment: Principal shall be payable in 12 quarterly
installments from the date of release.
e) To the extent of Rs. 3,284.15 lacs are
Secured by: Exclusive charge on the Construction equipment bought from
the ECB facility with asset cover of. 1.25X
Term of repayment: Moratorium of 18 months and Repayments thereafter in
14 equal quarterly installments in years 2, 3, 4 & 5 of USS 0.857143
million (Weighted Average Maturity of >=3 years).
f) To the extent of Rs. 2,333.33 lacs are
Secured by: 1. First Charge on entire inventory and receivable of this
project in an account held with the Bank (on Best Effort Basis)
2. Fixed Deposit of INR 240 Million "under lien "held by the Bank for
a period till such time that the Customer is able to secure first
charge over the project receivables in favor of the Bank.
Term of repayment: The repayment would start from August 2012 in 12
equal monthly repayments. Incase NOC is not received the FD of Rs.
2,400.00 lacs will be used to set off the outstanding in a rear ended
manner.
g) To the extent of Rs. 180.83 lacs are
Secured By: First and Exclusive charge (Hypothecation) on currently
unencumbered construction equipment.
Mar 31, 2011
1. Basis of Accounting
The financial statements are prepared under historical cost convention,
on going concern concept and in compliance with the Accounting
Standards notified under section 211(3C) of the Companies Act, 1956
(the "Act"). The Company follows mercantile system of accounting and
recognises income and expenditure on accrual basis to the extent
measurable and where there is certainty of ultimate realisation in
respect of incomes. Accounting policies not specifically referred to
otherwise, are consistent and in consonance with the generally accepted
accounting policies.
2. Fixed Assets
Fixed Assets are stated at cost, inclusive of incidental expenses
related thereto and are net of Cenvat Credit less accumulated
depreciation. Cost of software includes license fees and
implementation/ integration expenses.
3. Borrowing Costs
Borrowing costs directly attributable to the acquisition/ construction
of fixed assets are apportioned to the cost of the fixed assets up to
the date on which the asset is put to use/ commissioned.
4. Depreciation
a) Depreciation on Fixed Assets is provided on the written-down-value
method at the rates and in the manner prescribed under Schedule XIV to
the Companies Act. Depreciation on additions/ deletions to fixed assets
is calculated pro-rata from/up to the date of such additions/
deletions.
b) Computer Software is amortized on the straight line method of five
years.
c) Assets individually costing Rs. 0.05 Lakhs or less are fully
depreciated in the year of purchase.
5. Investments
Investments are classified as current and long term investments.
Current Investments are valued at lower of cost or market value. Long
term Investments are stated at cost. The decline in the value of Long
term investments, other than temporary is provided for.
6. Inventories
Inventories of stores and construction raw materials are valued at
lower of cost or net realizable value on first-in-first-out basis.
Works in progress on construction contracts reflects the value of
material inputs and expenses including appropriate overheads incurred
on such contracts, at cost.
7. Taxes on Income
a) Provision for current tax is made considering various allowances and
benefits available to the Company under the provisions of Income Tax
Act, 1961.
b) In accordance with Accounting Standard AS-22 "Accounting for Taxes
on Income", deferred tax resulting from timing differences between book
and tax profits are accounted for at tax rate substantially enacted by
the Balance Sheet date to the extent the timing differences are
expected to be crystallized.
Deferred Tax Assets arising on account of carried forward losses and
unabsorbed depreciation as per Income Tax Act, 1961 are recognised to
the extent there is a virtual certainty supported by convincing
evidence that such assets will be realized.
8. Sales Tax / WCT / VAT:
Where the company has contractual right to claim equal amounts
regarding the said liability from the clients, the same is not charged
as expenditure.
Where the ultimate liability is on the Company, the same is accounted
provisionally as per the information and the final adjustment for the
same is done as and when the demand is raised by the concerned
authorities on the Company. During the year under review, sales tax
expenses include amount paid on account of assessment order during the
year.
9. Employee Benefits
a) Defined Contribution Plans
The Company contributes on a defined contribution basis to Employee's
Provident Fund, Employee's State Insurance Fund towards post employment
benefits, all of which are administered by the respective Government
authorities, and has no further obligation beyond making its
contribution, which is expensed in the year to which it pertains.
b) Defined Benefit Plans
The Company has a Defined Benefit Plan namely Gratuity for all its
employees. The liability for the defined benefit plan of Gratuity is
determined on the basis of an actuarial valuation carried out by the
insurer, HDFC Standard Life, from whom the Company has taken out Group
Gratuity Policy.
Actuarial gains and losses which comprise experience adjustment and the
effect of changes in actuarial assumptions are recognised in the Profit
and Loss Account.
c) Employee Leave Entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilised leave
balances is provided on the basis of an actuarial valuation carried out
by the insurer, HDFC Standard Life, as at the year end and charged to
the Profit and Loss Account.
10. Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement/ translation of monetary assets and liabilities are
recognised in the Profit and Loss Account. Non-monetary foreign
currency items are carried at cost.
11. Revenue Recognition
a) Income from Construction is recognized as determined by the Project
Manager by taking into consideration actual cost incurred and profit
evaluated and duly certified by the client. All other income
expenditure are recognized and accounted for on an accrual basis.
Losses on contracts are fully accounted for as and when incurred.
Foreseeable losses are accounted for when they are determined.
Insurance claims are accounted for on cash basis.
b) Turnover represents Work Certified as determined by the Project
Managers by taking into consideration the actual cost incurred and
profit evaluated and duly certified by the client and is inclusive of
service tax.
c) Dividends are accounted for when the right to receive dividend is
established.
d) Income from interest on deposits, loans and interest bearing
securities is recognized on time proportionate method.
e) Share of profit/loss from firms, in which the company is a partner,
is accounted for in the financial year ending on (or immediately
before) the date of the balance sheet.
12. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account. If at the Balance Sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
13. Provisions, Contingent Liabilities and Contingent Assets
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources.
Where there is a possible obligation or a present obligation but the
likelihood of outflow of resources is remote, no provision or
disclosure is made.
Contingent Assets are neither recognized nor disclosed.
14. Accounting Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the reporting period. Difference
between the actual results and the estimates are recognized in the
period in which the results are known/ materialised.
15. Leases
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vests with the lessor, are recognised as
operating lease. Lease rental under operating lease are charged off to
the Profit and Loss Account, as incurred.
16. Accounting for Joint Venture Contracts:
a) Contracts executed in Joint Venture under work sharing arrangements
(consortium) are accounted in accordance with the accounting policy
followed by the company as that of an independent contract to the
extent work is executed.
b) In respect of contracts executed in Integrated Joint Ventures under
profit sharing arrangements, the services rendered to the joint
ventures are accounted as income on accrual basis. The profit/loss is
accounted for, as and when it is determined by the Joint Ventures and
the net investment in the Joint Ventures is reflected as investments.
Mar 31, 2010
1. Basis of Accounting
The financial statements are prepared under historical cost convention,
on going concern concept and in compliance with the Accounting
Standards notified under section 211(3C) of the Companies Act, 1956
(the "Act"). The Company follows mercantile system of accounting and
recognises income and expenditure on accrual basis to the extent
measurable and where there is certainty of ultimate realisation in
respect of incomes. Accounting policies not specifically referred to
otherwise, are consistent and in consonance with the generally accepted
accounting policies.
2. Fixed Assets
Fixed Assets are stated at cost, inclusive of incidental expenses
related thereto and are net of Cenvat Credit less accumulated
depreciation.
3. Borrowing Costs
Borrowing costs directly attributable to the acquisition/ construction
of fixed assets are apportioned to the cost of the fixed assets up to
the date on which the asset is put to use/ commissioned.
4. Depreciation
Depreciation on Fixed Assets is provided on the written-down-value
method at the rates and in the manner prescribed under Schedule XIV to
the Companies Act. Depreciation on additions/ deletions to fixed assets
is calculated pro-rata from/up to the date of such additions/
deletions.
5. Investments
Investments are classified as current and long term investments.
Current Investments are valued at lower of cost or market value. Long
term Investments are stated at cost. The decline in the value of Long
term investments, other than temporary is provided for.
6. Inventories
Inventories of stores and construction raw materials are valued at
lower of cost or net realizable value on first-in-first- out basis.
Works in progress on construction contracts reflects the value of
material inputs and expenses including appropriate overheads incurred
on such contracts, at cost.
7. Taxes on Income
a) Provision for current tax is made considering various allowances and
benefits available to the Company under the provisions of Income Tax
Act, 1961.
b) In accordance with Accounting Standard AS-22 "Accounting for Taxes
on Income", deferred tax resulting from timing differences between book
and tax profits are accounted for at tax rate substantially enacted by
the Balance Sheet date to the extent the timing differences are
expected to be crystallized.
Deferred Tax Assets arising on account of carried forward losses and
unabsorbed depreciation as per Income Tax Act, 1961 are recognised to
the extent there is a virtual certainty supported by convincing
evidence that such assets will be realized.
8. Sales Tax / WCT / VAT:
Where the company has contractual right to claim equal amounts
regarding the said liability from the clients, the same is not charged
as expenditure.
Where the ultimate liability would be on the Company, the same is
accounted provisionally as per the information and the final adjustment
for the same would be done as and when the demand from concerned
authorities on the Company. During the year under review, sales tax
expenses also include amount paid on account of assessment order during
the year.
9. Employee Benefits
a) Defined Contribution Plans
The Company contributes on a defined contribution basis to Employees
Provident Fund, Employees State Insurance Fund towards post employment
benefits, all of which are administered by the respective Government
authorities, and has no further obligation beyond making its
contribution, which is expensed in the year to which it pertains.
b) Defined Benefit Plans
The Company has a Defined Benefit Plan namely Gratuity for all its
employees. The liability for the defined benefit plan of Gratuity is
determined on the basis of an actuarial valuation carried out by the
insurer, HDFC Standard Life, from whom the Company has taken out Group
Gratuity Policy.
Actuarial gains and losses which comprise experience adjustment and the
effect of changes in actuarial assumptions are recognised in the Profit
and Loss Account.
c) Employee Leave Entitlement
The employees of the Company are entitled to leave as per the leave
policy of the Company. The liability in respect of unutilised leave
balances is provided on the basis of an actuarial valuation carried out
by the insurer, HDFC Standard Life, as at the year end and charged to
the Profit and Loss Account
10. Foreign Currency Transactions
Foreign currency transactions are recorded at the exchange rates
prevailing on the date of such transactions. Monetary assets and
liabilities as at the Balance Sheet date are translated at the rates of
exchange prevailing at the date of the Balance Sheet. Gains and losses
arising on account of differences in foreign exchange rates on
settlement/ translation of monetary assets and liabilities are
recognised in the Profit and Loss Account. Non-monetary foreign
currency items are carried at cost.
11. Revenue Recognition
a) Income from Construction is recognized as determined by the Project
Manager by taking into consideration actual cost incurred and profit
evaluated and duly certified by the client. All other income
expenditure are recognized and accounted for on an accrual basis.
Losses on contracts are fully accounted for as and when incurred.
Foreseeable losses are accounted for when they are determined.
Insurance claims are accounted for on cash basis.
b) Turnover represents Work Certified as determined by the Project
Managers by taking into consideration the actual cost incurred and
profit evaluated and duly certified by the client and is inclusive of
service tax
c) Dividends are accounted for when the right to receive dividend is
established.
d) Income from interest on deposits, loans and interest bearing
securities is recognized on time proportionate method.
e) Share of profit/loss from firms in which the company is a partner is
accounted for in the financial year ending on (or immediately before)
the date of the balance sheet.
12. Impairment of Assets
The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account. If at the Balance Sheet date there is an
indication that if a previously assessed impairment loss no longer
exists, the recoverable amount is reassessed and the asset is reflected
at the recoverable amount.
13. Provisions, Contingent Liabilities and Contingent Assets
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources
Where there is a possible obligation or a present obligation but the
likelihood of outflow of resources is remote, no provision or
disclosure is made.
Contingent Assets are neither recognized nor disclosed
14. Accounting Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amounts of assets and
liabilities on the date of financial statements and the reported
amounts of revenue and expenses during the reporting period. Difference
between the actual results and the estimates are recognized in the
period in which the results are known/ materialised.
15.Leases
Lease arrangements where the risks and rewards incident to ownership of
an asset substantially vests with the lessor, are recognised as
operating lease. Lease rental under operating lease are charged off to
the Profit and Loss Account, as incurred.
16. Accounting for Joint Venture Contracts:
a) Contracts executed in Joint Venture under work sharing arrangements
(consortium) are accounted in accordance with the accounting policy
followed by the company as that of an independent contract to the
extent work is executed.
b) In respect of contracts executed in Integrated Joint Ventures under
profit sharing arrangements, the services rendered to the joint
ventures are accounted as income on accrual basis. The profit/loss is
accounted for, as and when it is determined by the Joint Ventures and
the net investment in the Joint Ventures is reflected as investments.