Accounting Policies of R J Shah & Company Ltd. Company

Mar 31, 2024

A. General Information

R J Shah & Company Ltd is a Public Company in India and incorporated under the provisions of the Companies Act, 1956. It''s shares are listed on Bombay
Stock exchange in India. The company is engaged in construction of small and medium size Hydroelectric Project with EPC contract or civil work with
Hydro Mechanical works since last several years. Company is specialized in underground works of tunnels, cavern shafts, inclined tunnels with government
and semi governments or various Electricity Boards, Railways, Atomic ower Station, Irrigation etc, and work receipts is mainly for these works .

B. Basis of preparation of financial statement

I.Compliance with Ind AS

Financial statements have been prepared in accordance with the Indian Accounting Standards (hereafter referred to as the “Ind AS”) as notified by the
Ministry of Corporate Affairs pursuant to Section 133 of Companies Act, 2013 (the “Act”) read with the Companies (Indian Accounting Standards (Ind AS)
Rules, 2015 as amended and other relevant provisions of the Act and rules framed thereunder.

II Historical cost convention:

The financial statements have been prepared on a historical cost basis.

III Rounding of amounts:

All the amounts disclosed in the financial statements and notes are presented in Indian Rupees and have been rounded off to the nearest lakhs as per the

IV Current and Non-current classification:

All assets and liabilities have been classifies as current or no-current as per the Company’s normal operating cycle (twelve months) and other criteria set out
in the schedule III to the act.

C. Property, Plant and Equipment

Freehold land is carried at historical cost. Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any. Cost
includes purchase price and expenditures directly attributable to bringing them into working condition for its intended use. Freehold land are carried at cost,
less accumulated impairment losses, if any are not depreciated.

Depreciation on property, plant and equipments is provided under the straight line method over the useful lives of assets as prescribed in Schedule II to the
Companies Act 2013 (“Act”), and management believes that useful life of assets are same as those prescribed in Schedule II to the Act except the useful life
of the building at wadala, based on terms of the lease deed signed as per orders of High Court of Judicature at Mumbai . The residual values are not more
than 5% of the Original cost of the asset. The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period. Gain or losses arising from derecognisation of property, plant and equipment are measured as difference between the net disposal proceeds and the
carrying amount of the assets and are recognized in the statement of profit and loss when the asset is derecognised.

D. Inventories:

Inventories are valued at lower of cost computed on weighted average basis or net realisable value after providing cost of obsolescence, if any. The cost of
inventories comprises cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Net realisable value is
estimated selling price in ordinary course of business less the estimated cost necessary to make the sale.

E. Revenue Recognition

Revenue from sale of products is recognised when the property in the goods, or all significant risks and rewards of ownership of the products have been
transferred to the buyer, and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of products as well
as regarding its collection. Revenues include excise duty and are shown net of sales tax, value added tax, and applicable discounts and allowances if any.
Revenue includes only those sales for which the Company has acted as a principal in the transaction, takes title to the products, and has the risks and rewards
of ownership, including the risk of loss for collection, delivery and returns. The Company uses the percentage of completion method using the input (cost
expended) method to measure progress towards completion in respect of fixed price contracts. Percentage of completion method accounting relies on
estimates of total expected contract revenue and costs.

F. Employee Benefits

As per the past practices and as per the understanding between the Company and the employees, the monthly salary is inclusive of leave salary, gratuity and
bonus and the salary is paid inclusive of these benefits to employee every month.

G. Income tax

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

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes.

H. Earnings per share

Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year
and excluding treasury shares

(ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares

K. Use of estimates and Judgements

The estimates and judgements used in the preparation of financial statements are continuously evaluated by the management and are based on historical
experience and various other assumptions and factors that the management believes to be reasonable under existing circumstances. Difference between
actual results and estimates are recognized in the period in which the results are known/materialized. The said estimates are based on the facts and the
events, that existed as at the reporting date, or that date but provide additional evidence about conditions existing on the reporting date.

I. Impairment of non financial asset:

Assessment is done at each Balance Sheet date to evaluate whether there is any indication that a nonfinancial asset may be impaired. An asset’s recoverable
amount is the higher of an asset’s fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the asset does not
generate cash inflows that are largely independent of those from other assets or a groups of assets. Where the carrying amount of an asset 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 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.

II. Depreciation/amortization and useful lives of property, plant and equipment/intangible assets:

Property, plant and equipment are depreciated over the estimated useful lives of the assets, after taking into account their estimated residual value.
Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation to be recorded
during any reporting period. The useful lives and residual values are based on the Company’s historical experience with similar assets and take into account
anticipated technological changes. The depreciation for future periods is adjusted if there are significant changes from previous estimates.

III. Recoverability of trade receivables:

Judgments are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is
required. Factors considered include the credit rating of the counter party, the amount and timing of anticipated future payments and any possible actions
that can be taken to mitigate the risk of non-payment.

IV. Provisions and contingent liabilities:

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events it is probable that an outflow of resources

L. Dividend and Interest Income

Dividend income from investments is recognised when the shareholder’s right to receive payment has been established (provided that it is probable that the
economic benefits will flow to the Group and the amount of income can be measured reliably).

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the company and the amount of income can
be measured reliably.

M. Investments

Investments are measured at fair value, with value changes recognised in Statement of Profit and Loss as per the business model of the Company.

N. Functional and Presentation currency

These financial statements are prepared in Indian rupees; the national currency of India, which is functional currency of the company.

28. Segment Reporting

The Company has a single segment namely " Engineering and Construction". Hence segment reporting as defined in Ind
AS 33 is not given.

29. In the opinion of the Management, current assets, loans and advances have a value on realization at least equal to the
amount at which they are stated in the Books of Accounts and provision for all known liabilities has been made, except
as mentioned otherwise.The balance of bank accounts are subject to confirmation.

30. Corporate Social Responsibility

The amount of Rs.NIl need to be spent on CSR Activites by the company for the financial year 2022-23. However
company has paid Rs. 1,00,000/- for CSR activity during the FY 2023-24.

31. Events occuring after Balance sheet date

The Board of directors has recommended equity dividend of Rs.2.50 per share ( Previous Year Rs. 2.50) for the
Financial year 2023-24.

32. Ratios

Kindly refer attached separate anexure for the same.

33. The figures for previous year have been regrouped/rearranged wherever necessary to make them comparable.

As per Report of even date attached For and on behalf of the Board

For N N K & Co. Chairperson & Managing Director

Chartered Accountants

Firm Registration No: 143291W

^sd/" ^sd/“ _sd/- sd/- sd/-

CA Archana Kumawat Ms. Ishani J. Vakharia Ms. Kalindi R. Shah Ms. Swati R. Agarwal Mr. Neville S. Mody

Partner CFO Managing Director Director Director

Membership No.: 620259 PAN-AABPV5503E DIN: 00402482 DIN: 00402476 DIN: 00187067

sd/- sd/- sd/-

Mr. Pranav R. Agarwal Mr. Sunil Masand Mr. Ram Gupta Narayan

Place: Mumbai Director Director Company Secretary

Date: 28th May 2024 DIN: 10590800 DIN: 00371211

UDIN: 24620259BKEAEC9484

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Mar 31, 2015

(a) Use of Estimates.

In preparation of financial statements requires the management to make judgments, estimates and assumption that affect the reported amounts of Assets and Liabilities on the date of financial statements and the reported amount of revenues 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 as liabilities In future periods.

(b) Fixed Assets:

Fixed Assets are stated at cost and includes amounts added on revaluations less accumulated depreciations and impairment loss, if any. All costs including financing cost till commencement of commercial activities attributable to the Fixed Assets are capitalized.

(c) Depreciation on Tangible Fixed Assets.

(i) Depreciation on Plant and Machinery, Electrical installations and Equipment etc. Is provided on a Straight Line Method over the estimated useful life of assets.

(ii) Effective 1st April 2014, the company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Companies Act 2013, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the companies act 1956.

(iii) Based on terms of the Lease Deed signed as per Orders of the High Court of Judicature at Bombay, the useful life of

building at Wadala has been estimated as 13 years (on a single shift basis), which Is different from that prescribed in Schedule II of the Act.

(iv) In case of pre-owned assets, the useful life is estimated on a case to case basis.

(v) Depreciation on additions to assets or on sale/discardment of assets, is calculated pro rata from the month of such addition or upto the month of such sale / discardment, as the case may be.

(d) Impairment of Assets:

An Asset is treated as impaired when the carrying cost of Assets exceeds its reasonable value. An impairment loss is charged to the profit and loss account in the year in which on asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(e) Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transactions.

(f) investments:

The long term investments are stated at cost provision for diminution in the value of the long term investments is made only if such a decline is other than temporary.

(g) Inventories:

The materials and consumables stores are valued at lower of cost or net realizable value. The cost is worked out on FI F 0 basis and the work in progress is valued at contract rate and I or at realizable value.

(h) Revenue recognition:

The work contracts are evaluated at the end of each year on stage completion method. On contract under execution revenue is recognized by evaluation of the work completed at the end of the accounting year. The claim (including escalations) which in the opinion of the management are recoverable on the contract are recognized at the time of evaluation of the work. Various claims, arbitration matters raised by company are subject to negotiation and redetermination. Claims make in respect thereof are accounted as income in the year of receipt of arbitration award and / or acceptance by client or evidence of acceptance received from the Client. Revenue from operations includes sale of scrap, services, service tax and value added tax.

Income from Services: Revenue from, warehousing contracts recognized pro-rata over the period of contract as and when services are rendered.

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

Dividend: Dividend income is recognized when right to receive is established

(i) Employee Benefits:

As per the past practices and as per the understanding between company and the employees the monthly salary is inclusive of leave salary, gratuity and bonus and the salary is paid inclusive of these benefits to employee every month.

(j) Provision for Current and Deferred Tax:

Provision for current tax is made after taking Into consideration benefits admissible under the provision of the provisions of The Income Tax Act 1961.

Deferred Tax reflect the impact of "timing difference" between taxable income and accounting income originating during the current year and reversal of timing difference for the earlier years. Deferred Tax is measured using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

Deferred Tax liabilities are recognized for all taxable timing differences. Deferred Tax Asset is recognized and cured forward only to the extent that there is a virtual certainty that the asset will be revised in future.

(k) Provisions and contingent liabilities.

A provision is recognized if the Company has present obligation, as a result of past event, that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligations at the reporting date.

Where no reliable estimate can be made, or disclosure is made as contingent liability A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probable will not require outflow of resources. Where there is possible obligation or a present obligation in respect of which the likely wood of outflow of resources is remote, no provision or disclosure is made. Contingent liabilities are not recognized but are disclosed in the notes.

(l) Earning per Share.

Basic earning per Share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2014

(a) Use of Estimates.

In preparation of financial statements requires the management to make judgments, estimates and assumption that affect the reported amounts of Assets and Liabilities on the date of financial statements and the reported amount of revenues 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 as liabilities in future periods.

(b) Fixed Assets :

Fixed Assets are stated at cost and includes amounts added on revaluations less accumulated depreciations and impairment loss, if any. All costs including financing cost till commencement of commercial activities attributable to the Fixed Assets are capitalized. -

(c) Depreciation on Tangible Fixed Assets.

Depreciation on Fixed Assets has been provided on straight line method as per section 2.5 (2) (b) of the Companies Act 1956 for pro-rata period for which the assets is put to use and lease hold land is stated at cost since inception. In respect of assets acquired upto 1.4.1987 on straight line method as per Circular No. 1/86 dated 20.5.1986 issued by the department of Company affairs and in respect of assets acquired from 2nd April 1987 and onwards at straight line method as the rates and in manner specified in schedule XIV of the Companies Act 1956.

(d) Impairment of Assets:

An Asset is treated as impaired when the carrying cost of Assets exceeds its reasonable value. An impaimlent loss is charged to the profit and loss account in the year in which on asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. -

(e) Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transactions.

(f) Investments:

The long term investments are stated at cost provision for diminution in the value of the long term investments is made only if such a decline is other than temporary.

(g) Inventories: .

The materials and consumables stores are valued at lower of cost or net realizable value. The cost is worked out on F I F O basis and the work in progress is valued at contract rate and / or at realizable value.

(h) Revenue recognition:

The work contracts are evaluated at the end of each year on stage completion method. On contract under execution revenue is recognized by evaluation of the work completed at the end of the accounting year. The claim (including escalations) which in the opinion of the management are recoverable on the contract are recognized at the time of evaluation of the work. Various claims, arbitration matters raised by company are subject to negotiation and redetermination. Claims make in respect thereof are accounted as income in the year of receipt of arbitration award and / or acceptance by client or evidence of acceptance received from the Client. Revenue from operations includes sale of scrap, services, service tax and value added tax. Income from Services: Revenue from, warehousing contracts recognized pro-rata over the period of contract as and when services are rendered. -

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

Dividend: Dividend income is recognized when right to receive is established

(i) Employee Benefits:

As per the past practices and as per the understanding between company and the employees the monthly salary is inclusive of leave salary, gratuity and bonus and the salary is paid inclusive of these benefits to employee every month.

(j) Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the provisions of The Income Tax Act 1961.

Deferred Tax reflect the impact of "timing difference" between taxable income and accounting income originating during the current year and reversal of timing

difference for the earlier years. Deferred Tax is measured using the tax rates and laws- that are enacted or substantively enacted as on the balance sheet date.

Deferred Tax liabilities are recognized for all taxable timing differences. Deferred Tax Asset is recognized and cured forward only to the extent that there is a virtual certainty that the asset will be revised in future.

(k) Provisions and contingent liabilities.

A provision is recognized if the Company has present obligation, as a result of past event, that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligations at the reporting date.

Where no reliable estimate can be made, or disclosure is made as contingent liability A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probable will not require outflow of resources. Where there is possible obligation or a present obligation in respect of which the likely wood of outflow of resources is remote, no provision or disclosure is made.'' Contingent liabilities are not recognized but are disclosed in the notes.

(l) Earning per Share.

Basic earning per Share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2013

(a) Presentation and disclosure of financial statements.

During the year ended 31st March, 2012 the revised schedule VI notified under the Companies Act, 1956, has become applicable to Company, for preparation and presentation of it''s financial statements. It has significant impact on presentation and disclosures made in the financial statements the Company have reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of Estimates.

In preparation of financial statements requires the management to make judgments, estimates and assumption that affect the reported amounts of Assets and Liabilities oh the date of financial statements and the reported amount of revenues 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 as liabilities in future periods.

(c ) Fixed Assets :

Fixed Assets are stated at cost and includes amounts added on revaluations less accumulated depreciations and impairment loss, if any. All costs including financing cost till commencement of commercial activities attributable to the Fixed Assets are capitalized.

(d) Depreciation on Tangible Fixed Assets.

Depreciation on Fixed Assets has been provided on straight line method as per section 2.5 (2) (b) of the Companies Act 1956 for pro-rata period for which the assets is put to use and lease hold land is stated at cost since inception. In respect of assets acquired upto 1.4.1987 on straight line method as per Circular No. 1/86 dated 20.5.1986 issued by the department of Company affairs and in respect of assets acquired from 2nd April 1987 and onwards at straight line method as the rates and in manner specified in schedule XTV of the Companies Act 1956.

(e) Impairment of Assets:

An Asset is treated as impaired when the carrying cost of Assets exceeds its reasonable value. An impairment loss is charged to the profit and loss account in the year in which on asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(f) Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transactions.

(g) Investments:

The long term investments are stated at cost provision for diminution in the value of the long term investments is made only if such a decline is other than temporary.

(h) Inventories:

The materials and consumables stores are valued at lower of cost or net realizable value. The cost is worked out on F IF O basis and the work in progress is valued at contract rate and / or at realizable value.

(i) Revenue recognition:

The work contracts are evaluated at the end of each year on stage completion method. On contract under execution revenue is recognized by evaluation of the work completed at the end of the accounting year. The claim (including escalations) which in the opinion of the management are recoverable on the contract are recognized at the time of evaluation of the work. Various claims, arbitration matters raised by company are subject to negotiation and redetermination. Claims make in respect thereof are accounted as income in the year of receipt of arbitration award and / or acceptance by client or evidence of acceptance received from the Client. Revenue from operations includes sale of scrap, services, service tax and value added tax. Income from Services: Revenue from, warehousing contracts recognized pro-rata over the period of contract as and when services are rendered. Interest: Interest income is recognized on a time proportion basis taking into account the amount outstanding and rate applicable. Dividend: Dividend income is recognized when right to receive is established

(J) Employee Benefits:

As per the past practices and as per the understanding between company and the employees the monthly salary is inclusive of leave salary, gratuity and bonus and the salary is paid inclusive of these benefits to employee every month.

(k) Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the provisions of The Income Tax Act 1961.

Deferred Tax reflect the impact of "timing difference" between taxable income and accounting income originating during the current year and reversal of timing difference for the earlier years. Deferred Tax is measured using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax liabilities are recognized for all taxable timing differences. Deferred Tax Asset is recognized and cured forward only to the extent that there is a virtual certainty that the asset will be revised in future.

(1) Provisions and contingent liabilities.

A provision is recognized if the Company has present obligation, as a result of past event, that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligations at the reporting date.

Where no reliable estimate can be made, or disclosure is made as contingent liability A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probable will not require outflow of resources. Where there is possible obligation or a present obligation in respect of which the likely wood of outflow of resources is remote, no provision or disclosure is made. Contingent liabilities are not recognized but are disclosed in the notes.

(m) Earning per Share.

Basic earning per Share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2012

(a) Presentation and disclosure of financial statements.

During the year ended 31st March, 2012 the revised schedule VI notified under the Companies Act, 1956, has become' applicable to Company, for preparation and presentation of its financial statements. It has significant impact on presentation and disclosures made in the financial statements the Company have reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Use of Estimates.

In preparation of financial statements requires the management to make judgments, estimates and assumption that affect the reported amounts of Assets and Liabilities on the date of financial statements and the reported amount of revenues 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 as liabilities in future periods.

(c) Fixed Assets

Fixed Assets are stated at cost and includes amounts added on revaluations less accumulated depreciations and impairment loss, if any. All costs including financing cost till commencement of commercial activities attributable to the Fixed Assets are capitalized.

(d) Depreciation on Tangible Fixed Assets.

Depreciation on Fixed Assets has been provided on straight line method as per section 2.5 (2) (b) of the Companies Act 1956 for pro-rata period for which the assets is put to use and lease hold land is stated at cost since inception. In respect of assets acquired upto 1.4.1987 on straight line method as per Circular No. 1/86 dated 20.5.1986 issued by the department of Company affairs and in respect of assets acquired from 2nd April 1987 and onwards at straight line method as the rates and in manner specified in schedule XIV of the Companies Act 1956.

(e) Impairment of Assets:

An Asset is treated as impaired when the carrying cost of Assets exceeds its reasonable value. An impairment loss is charged to the profit and loss account in the year in which on asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(f) Foreign currency transactions:

Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of transactions.

(g) Investments:

The long term investments are stated at cost provision for diminution in the value of the long term investments is made only if such a decline is other than temporary.

(h) Inventories: ^

The materials and consumables stores are valued at lower of cost or net realizable value. The cost is worked out on F IF O basis and the work in progress is valued at contract rate and / or at realizable value.

(i) Revenue recognition:

The work contracts are evaluated at the end of each year on stage completion method. On contract under execution revenue is recognized by evaluation of the work completed at the end of the accounting year. The claim (including escalations) which in the opinion of the management are recoverable on the contract are recognized at the time of

evaluation of the work. Various claims, arbitration matters raised by company are subject to negotiation and redetermination. Claims make in respect thereof are accounted as income in the year of receipt of arbitration award and / or acceptance by client or evidence of acceptance received from the Client. Revenue from operations includes sale of scrap, services, service tax and value added tax.

Income from Services: Revenue from warehousing contracts recognized pro-rata over the period of contract as and when services are rendered.

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

Dividend: Dividend income is recognized when right to receive is established O') Employee Benefits:

As per the past practices and as per the understanding between company and the employees the monthly salary is inclusive of leave salary, gratuity and bonus and the salary is paid inclusive of these benefits to employee every month.

(k) Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the provisions of The Income Tax Act 1961.

Deferred Tax reflect the impact of "timing difference” between taxable income and accounting income originating during the current year and reversal of timing difference for the earlier years. Deferred Tax is measured using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.

Deferred Tax liabilities are recognized for all taxable timing differences. Deferred Tax Asset is recognized and cured forward only to the extent that there is a virtual certainty that the asset will be revised in future.

(1) Provisions and contingent liabilities.

A provision is recognized if the Company has present obligation, as a result of past event, that can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligations at the reporting date.

Where no reliable estimate can be made, or disclosure is made as contingent liability A disclosure for contingent liability is also made when there is a possible obligation or a present obligation that may, but probable will not require outflow of resources. Where there is possible obligation or a present obligation in respect of which the likely wood of outflow of resources is remote, no provision or disclosure is made. Contingent liabilities are not recognized but are disclosed in the notes.

(m) Earnings per Share

Basic Earnings per Share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

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Mar 31, 2010

(i)Revenue Recognition:-

The works contracts are evaluated at the end of each year on stage completion method.. On contracts under execution, revenue is recognised by evaluation of the work completed at the end of the accounting year The claims (including escalations) which in the opinion of the management are recoverable on the contract are recognised at the time of evaluation of the work.

Various claims, arbitration matters raised by the company are subject to negotiations or redetermination. Claims made in respect thereof are accounted as income in the year of receipt of Arbitration Award and/or acceptance by Client or evidence of acceptance received from the Client.

(ii) Valuation of Fixed Assets:-Fixed Assets are valued at cost. In respect of assets scrapped. discarded the book value of such assets after deduction of estimated value is written off as loss .The receipts on sale of assets are accounted for as and when realised (iii) Depreciation-Depreciation of Fixed Assets has been provided on straight line method as per Section 205(2)(b) of the Companies Act, 1956 for pro rata period for which the asset is put to use as under:-

a)ln respect of assets acquired upto 1.4.1987 on straight line method as per Circular No. 1/86 dated 21.05.1986 issued bythe Department of Company affairs.

b)In respect of assets acquired from 2nd April 1987 onwards at straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act.

(iv) Borrowing Cost:-The borrowing costs that are attributable to the acquisition. construction or production of qualifying assets are capitalised as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sell. All other borrowing costs are recognised as an expense in the period in which they are incurred. (v) Valuation of Inventories:-

(a) Materials and consumable stores are valued at lower of cost or net realisable value. The cost is worked out on FIF O basis. (b)Work in progress is valued at contract rate and/or at realisable value.

(vi) Foreign Currency transactions:-The payment for expenditure in foreign currency has been accounted for at exchange rate on the date of payment.

(vii) Retirement Benefits:-Retirement benefits including gratuity and leave salary are provided in the accounts on accrual basis. (viii) Investments :-Investments are stated at cost

(ix) Research and developement:-Capital expenditure on this account are shown as additions to fixed assets. (x) Income Tax:

(a)Provision is made for income tax liability, which is likely to arise on the results for the year at the current rate of tax in accordance with provisions of The Income Tax Act, 1961.

(b)Deferred income tax is provided .using the liability method, on all temporary differences at the Balance Sheet date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. (c)Deferred tax assets are recognised on unabsorbed depreciation only to the extent that there is virtual certainty of their realisation.

(d)Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or subsequently enacted at the Balance Sheet level.