Accounting Policies of Shelter Infra Projects Ltd. Company

Mar 31, 2024

2) 2.1 SIGNIFICANT ACCOUNTING POLICIES

2.1.1 Basis for preparation of accounts

The accounts have been prepared in accordance with IND-AS and Disclosures
thereon comply with requirements of Ind-AS, stipulations contained in Schedule-
Ill (revised) as applicable under section 133 of the Companies Act. 2013 read
with Rule 7 of the Companies (Accounts) Rules 2014, Companies (Indian
Accounting Standards) Rules 2015 as amended from time to time, MSMED Act,
2006. other pronouncement of ICAI, provisions of the Companies Act and Rules
and guidelines issued by SEBI as applicable.

Assets and liabilities have been classified as current or non-current as per the
Company’s normal operating cycle and other criteria set out in revised Schedule-
Ill to the Companies Act, 2013

2.1.2 Use of Estimates

IND-AS enjoins management to make estimates and assumptions related to
financial statements, that affect reported amount of assets, liabilities, revenue,
expenses and contingent liabilities pertaining to the year. Actual result may differ
from such estimates. Any revision in accounting estimates is recognized
prospectively in the period of change and material revision, including its impact
on financial statements, is reported in the notes to accounts in the year of
incorporation of revision.

2.2 Recognition of Income and Expenses

i) Value of work done up to progressive billing stage at the end of the
accounting year and certified / accepted by the client within the said date
is taken at the appropriate rate as per contract.

ii) Value of work done up to progressive billable stage at the end of the
accounting year but not certified /accepted by the client within the said
date is taken at the appropriate rate as per contract and shown under the
head “Work done but bills not raised''.

iii) Value of work done below the progressive billable stage is however
valued at cost (material cost plus all other direct charges attributable to
the portion of work done) and shown under the head “Work-in-Progress".
Adjustments are made in case of any anticipated loss to complete a
contract.

iv) When work is completed beyond 20% of the total executable work, total
estimated cost of the project is reviewed vis-a-vis total revenue
receivable there from. Any loss accruable in this respect, pertaining to
completion of the project is provided for.

v) Arbitration claim/counter claim is accounted for on the basis of merit of
the case in terms of advice of Legal Experts.

2.3 Property. Plants and Equipments

These tangible assets are held for use in construction, supply of goods or
services or for administrative purposes. These are recognized and carried under
cost model i.e. cost less accumulated depreciation and impairment loss, if any
which is akin to recognition criteria under erstwhile GAAP

a) Cost includes freight, duties, taxes and other expenses directly incidental to
acquisition, bringing the asset to the location and installation including site
restoration up to the time when the asset is ready for intended use. Such
Costs also include Borrowing Cost if the recognition criteria are met

b) When a major inspection/repair occurs, its cost is recognized in the carrying
amount of the plant and equipment as a replacement if the recognition criteria
are satisfied. Any remaining carrying amount of the cost of previous
inspection/repair is derecognized.

c) Depreciation has been provided on straight line method in terms of expected
life span of assets as referred to in Schedule - II of the Companies Act, 2013
In the following category of property, plant and equipment, the depreciation
has been provided on the technical evaluation of the useful life which is
different from the one specified in Schedule - II to the Companies Act, 2013.

Buildings - 60 years

Plant and Machinery - 12 years

Furniture and Fixtures - 10 years

Office equipment - 10 years

Vehicles - 8 years

The residual value and useful life is reviewed annually and any deviation is
accounted for as a change in estimate.

d) During sales of fixed assets any profit earned/loss sustained towards
excess/shortfall of sale value vis-a-vis carrying cost of assets is accounted for
in statement of profit & loss.

2.4 Investments Property

Properties held to earn rentals or/and for capital appreciation but not for sale in
the ordinary course of business, use in the production or supply of goods or
services or for administrative purposes, are categorized as investment
properties. These are measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties are stated at cost less
accumulated depreciation and accumulated impairment loss, if any. The cost
shall also include borrowing cost if the recognition criteria are met. Said assets
are depreciated on straight line basis based on expected life span of assets
which is in accordance with Schedule II of Companies Act, 2013. Significant
parts of the property are depreciated separately based on their specific useful
lives. Any gain or loss on disposal of investment properties is recognized in profit
or loss account

Fair value of investments properties under each category are disclosed in the
notes. Fair values are determined based on the evaluation performed by an
accredited external independent valuer applying a recognized and accepted
valuation model or estimation based on available sources of information from
market

Transfers to or from the investment property is made only when there is a
change in use and the same is made at the carrying amount of investment
Property.

2.5 Intangible Assets

a) Intangible Assets are initially recognized at:-

1) In case the assets are acquired separately then at cost.

2) In case the assets are acquired in a business combination then at fair
value.

3) In case the assets are internally generated then at capitalized
development cost subject to satisfaction of criteria of recognition
(identifiability, control and future economic benefit) laid down from
clause 11 to 17 of IND-AS38.

Following initial recognition intangible assets are carried at cost less
any accumulated amortization and accumulated impairment loss.

b) Intangible assets with finite useful life are assessed for impairment
whenever there is an indication that the intangible assets may be
impaired. Intangible assets with infinite useful like including goodwill are
tested for impairment annually.

2.6. Impairment of Non-Financial Assets

a) An asset is deemed impairable when recoverable value is less than its
carrying cost and the difference between the two represents provisioning
exigency.

b) Recoverable value is the higher of the Value in Use'' and fair value as
reduced by cost of disposal.

c) Test of impairment of PPE, investment in subsidiaries/associates/joint
venture and goodwill are undertaken under Cash Generating Unit (CGU)
concept. For Intangible Assets and Investment Properties it is undertaken in
asset specific context

d) Test of impairment of assets are generally undertaken based on indication of
impairment, if any, from external and internal sources of information outlined
in para - 12 of lnd-AS-36.

Non-financial assets other than goodwill that suffered an impairment are
reviewed for possible reversal of the impairment at the end of each reporting
period.

2.7. Financial Instruments

(i) Financial Assets

Initial Recognition and Measurement

All financial assets are recognized initially at fair value plus, in the case of
financial assets not recorded at fair value through profit or loss, transaction costs
that are attributable to the acquisition of the financial asset.

Financial assets are classified, at initial recognition, as financial assets measured
at fair value or as financial assets measured at amortised cost

Subsequent Measurement

For purpose of subsequent measurement financial assets are classified in two
broad categories:-

• Financial Assets at fair value

• Financial Assets at amortised cost

Where assets are measured at fair value, gains and losses are either recognized
entirely in the statement of profit and loss, or recognized in other comprehensive
income.

A financial asset that meets the following two conditions is measured at
amortized cost

• Business Model Test: The Objective of the company’s business model
is to hold the financial asset to collect the contractual cash flows.

• Cash Flow characteristics test: The contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payment of
principal and interest on the principal amount outstanding.

A financial asset that meets the following two conditions is measured at fair value
through OCI:-

• Business Model Test: The financial asset is held within a business
model whose objective is achieved by both collecting contractual cash
flows and selling financial assets.

• Cash flow characteristics Test: The contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payment of
principal and interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit and loss.

All equity investments are measured at fair value in the balance sheet, with value
changes recognized in the statement of profit and loss except for those equity
investments for which the entity has elected irrevocable option to present value
changes in OCI

Investment in associates, joint venture and subsidiaries

The company has accounted for its investment in subsidiaries, associates and
joint venture at cost.

Impairment of financial assets

The company assesses impairment based on Expected Credit Losses (ECL)
model at an amount equal to>

• 12 Months expected credit losses, or

• Lifetime expected credit losses

depending upon whether there has been a significant increase in credit risk since
initial recognition.

However, for trade receivables, the company does not tract the changes in credit
risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.

(ii) Financial Liabilities

All financial liabilities are initially recognized at fair value and, in the case of loans
and borrowings and payables, net of directly attributable transaction costs

Financial liabilities are classified as measured at amortized cost or fair value
through profit and loss (FVTPL). A financial liability is classified as FVTPL if it is
classified as held for trading, or it is a derivative or is designated as such on
initial re^agrwfa^p. Financial Liabilities at FVTPL are measured at fair value and

net gain or losses, including any interest expense, are recognized in statement of
profit and loss. Other financial liabilities are subsequently measured at amortized
cost using the effective interest method. Interest expense and foreign exchange
gains and losses are recognized in statement of profit and loss Any gain or loss
on de-recognized is also recognized in statement of profit and loss.

2.8. Fair Value Measurement

The Company measures financial instruments, such as, derivatives at fair value
at each balance sheet date

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

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

• In the absence of a principal market, in the most advantageous market for
the asset or liability.

The principal or the most advantageous market must be accessible by the
company.

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

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

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

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

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

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

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

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

The Company’s Valuation Committee determines the policies and procedures for
both recurring fair value measurement, such as derivative instruments and
unquoted financial assets measured at fair value, and for non-recurring
measurement, such as assets held for distribution in discontinued operations.

2.9 Inventories

Inventories are valued at the lower of cost or net realizable value. Cost includes
purchase price, duties, transport & handling costs and other costs directly
attributable to the acquisition and bringing the inventories to their present location
and condition.

The basis of determination of cost remains as follows

a) Raw material, Packing Material. Moving Weighted Average Basis.

b) Stores & spares: at standard cost which approximates the cost.

c) Work-in-progress: Cost of input plus overhead upto the stage of completion.

d) Finished Goods: Cost of input plus appropriate overhead.

2.10. Employee Benefits

Liabilities in respect of employee benefits to employees are provided for as
follows:

a) Short term employee benefits

i) Liabilities for wages and salaries, including non-monetary benefits that
are expected to be settled wholly within 12 months after the end of the
period in which the employees render the related service are recognized
in respect of employees’ services up to the end of the reporting period
and are measured at the amounts expected to be incurred when the
liabilities are settled. The liabilities are presented as current employee
benefit obligations in the balance sheet

ii) ESI is provided on the basis of actual liability accrued and paid to
authorities

b) Post Separation Employee Benefit Plan
i) Defined Benefit Plan

• Gratuity Liability on the basis of actuarial valuation as per lnd-AS-19.
Liability recognized in the balance sheet in respect of gratuity is the
present value of the defined benefit obligation at the end of each
reporting period less the fair value of plan assets. The defined benefit
obligation is calculated annually by actuaries using the projected unit
credit method. The present value of defined benefit is determined by
discounting the estimated future cash outflows by reference to market
yield at the end of each reporting period on government bonds that
have terms approximate to the terms of the related obligation. The net
interest cost is calculated by applying the discount rate to the net
balance of the defined benefit obligation and the fair value of plan
assets. This cost is included in employee benefit expense in the
statement of profit and loss.

• Company contributes its share of contribution to Employees Provident
Fund Scheme administered by a separate trust with its obligation to
make good the shortfall, if any, in trust fund arising on account of
difference between the return on investments of the trust and the
interest rate on provident fund dues notified periodically by Central
Government.

• Actuarial gain/loss pertaining to I & II above and other components of
re-measurement of net defined benefit liability (asset) are accounted
for as OCI. All remaining components of costs are accounted for in

____ statement of profit & loss.

ii) Defined Contribution Plans :

• Liability for superannuation fund is provided on the basis of the
premium paid to insurance company in respect of employees
covered under Superannuation Fund Policy.

2.11. Income Tax and Deferred Tax

The liability of company on account of Income Tax is computed considering the
provisions of the Income Tax Act. 1961.

Deferred tax is provided using balance sheet approach on temporary differences
at the reporting date as difference between the tax base and the carrying amount
of assets and liabilities. Deferred tax is recognized subject to the probability that
taxable profit will be available against which the temporary differences can be
reversed.

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

Deferred tax relating to items recognized outside profit or loss is recognized
outside profit or loss (either in other comprehensive income or in equity).

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

Deferred tax assets are not recognized for temporary differences between the
carrying amount and tax bases of investments in subsidiaries, and interest in joint
arrangements where it is not probable that the differences will reverse in the
foreseeable future and taxable profit will not be available against which the
temporary difference can be utilized.

---

Mar 31, 2015

A) The financial statements are prepared under the historical cost convention on an accrual basis (except for revaluation of certain Fixed Assets) in accordance with Generally Accepted Accounting principles (Indian GAAP) and Accounting Standards notified and relevant provisions of the Companies Act, 2013.

b) Fixed Assets are stated at cost / revaluation. Cost include borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for use. All other borrowing costs are charged to revenue. Depreciation has been determined using the Straight Line Method based on the useful life of an asset as envisaged under the Schedule II of the Companies Act, 2013. Leasehold Land is amortized over the lease period.

The Fixed Assets having zero remaining useful life as on 1st April, 2014, their carrying amounts, after retaining their residual value have been transferred to general reserve.

In case of revalued Fixed Assets, having zero remaining useful life as on 1st April,2014, the amounts standing to the credit of revaluation reserve have been transferred to the general reserve.

The residual value of Fixed Assets is considered at 5% of the original cost of the assets as specified in Part C of Schedule II of the Companies Act, 2013.

c) Permanent Investments have been stated at cost less diminution in value, other than temporary.

d) Valuation of Inventories -

i) Stores, spares and construction materials have been valued at lower of cost or net realizable value. Cost has been considered on FIFO Basis.

ii) Work – in – Progress has been valued at material cost plus all other direct charges attributable to the portion of work executed. Anticipated loss to complete any contract, if any, are considered for valuation.

iii) Valuation of Staging Materials -

Cost of Staging Materials used in job is written off over a period of 4/6 years depending on the life of those materials.

iv) Tools at cost less write down depending on use in job.

e) Prepaid Expenses -

i) Bank Guarantee Commission, Insurance charges, processing fees etc. paid in advance have been appropriated at the time scale and the amount attributable to the relevant accounting year is charged to Profit and Loss Statement of for the relevant year and the balance transferred to Prepaid Expenses under "Advance Recoverable in cash or in kind or value to be received" in Accounts.

f) Consultancy Charges and initial transportation cost of Plant & machinery are charged to revenue in proportion to the value of work done at the year end to the total contractual value of the respective contracts. Expenditure on temporary hutments and fencing is charged to revenue over the contractual period of execution of the respective contracts.

g) All expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

h) Employee Benefits

Liabilities in respect of Employee Benefits are accounted for as under:

i) Short-term Employee Benefits -

Undiscounted amount of short-term employee benefits expected to be paid in exchange of the services rendered by employees is recognized during the period when the employees render the service. These include salaries, wages, bonus, social security contribution, medical care and short term compensated absence.

ii) Post Employment Benefits -

The Company makes monthly contribution to Trustees and State Authority for provident fund and pension entitlement of employees in service.

The Company has taken up Group Gratuity cover under "Cash Accumulation Scheme" with Life Insurance Corporation of India for payment of gratuity to retiring employees. Under this scheme the Company's liability in respect of gratuity payable to retiring employees as per Gratuity Act, 1972, including death and premature retirement is fully covered on the concept that the Company is a going concern.

The above-mentioned post employment benefits are accounted for as defined contribution plans.

iii) The Company has been following a practice of granting accumulated leave to its employees on separation and accordingly no provision for leave salary as per AS15 of ICAI has been made in the accounts.

iv) Gratuity liability and expenses has been provided on the basis of actuarial valuation based on AS-15.

i) Revenue Recognition -

i) Value of work done up to progressive billing stage at the end of the accounting year and certified/accepted by the client within the said date is taken at the appropriate rate as per contract.

ii) Value of work done up to progressive billable stage at the end of the accounting year but not certified/accepted by the client within the said date is taken at the appropriate rate as per contract and shown under the head "Work done but bills not raised.

iii) Value of work done below the progressive billable stage is however valued at cost (material cost plus all other direct charges attributable to the portion of work done) and shown under the head "Work – in – Progress". Adjustments are made in case of any anticipated loss to complete a contract.

iv) When work is completed beyond 20% of the total executable work, total estimated cost of the project is reviewed vis-à-vis total revenue receivable there from. Any loss accruable in this respect, pertaining to completion of the project is provided for.

j) Arbitration claim/counter claim is accounted for on the basis of merit of the case in terms of advice of Legal Experts.

k) As per the terms of the respective contract, Mobilization Advance received from the Contracted is progressively adjusted with the running bills raised on them at the agreed rate. Interest on such Mobilization Advance is charged to revenue account as per the terms of the respective contract. Mobilization Fees are considered proportionate to execution of the related contracts.

l) Contingent Liabilities and Provisions -

Claims against the company under dispute for which no reasonable estimate can be made of amount involved or which may not likely to require, an outflow of resources are not provided for in the accounts but disclosed by way of notes. Disputed claims for which reliable estimate can be made for likely outflow of resources are, however, recognized in accounts.

m) Impairment of Assets -

The company has a system of identifying impair able assets, if any, in terms of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India and on the basis of cash generating unit concept at the year end. Impairment loss thereon being the excess of book value over the recoverable value of such assets, if any, is charged to revenue for the year.

Reversal of impairment-loss recognized in earlier years is made if there is an indication that the impairment loss has decreased or does not exist.

Since Accounting Standard on Impairment of Assets is not applicable to assets arising from construction contracts as per Accounting Standard 7 on Construction Contracts issued by ICAI, the Company has not carried out any exercise of Impairment regarding the same.

n) Taxes on Income -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

o) Use of Estimate -

The preparation of financial statement requires estimates and assumptions to be made, that affect the amount of assets and liabilities on the date of financial statement and amount of revenue and expenses during the reporting period. The difference between the actual and estimates is recognized in the period in which the results are known or materialized.

p) Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

---

Mar 31, 2014

A) The financial statements are prepared under the historical cost convention on an accrual basis (except for revaluation of certain Fixed Assets) in accordance with Generally Accepted Accounting principles (Indian GAAP) and Accounting Standards notified and relevant provisions of the Companies Act, 1956.

b) Fixed Assets are stated at cost / revaluation. Cost include borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for use. All other borrowing costs are charged to revenue. Depreciation has been determined on written down value method at rates specified in schedule XIV to the Companies Act, 1956. Leasehold Land is amortised over the lease period.

The Intangible Assets acquired during this financial year 2013-14 relates to purchase of exclusive transferable development rights of land in Sarkar Bazar, Beliaghata, Kolkata. The cost incurred will be adjusted against the future revenues from the Project.

c) Permanent Investments have been stated at cost less diminution in value, other than temporary.

d) Valuation of Inventories -

i) Stores, spares and construction materials have been valued at lower of cost or net realizable value. Cost has been considered on FIFO Basis.

ii) Work - in - Progress has been valued at material cost plus all other direct charges attributable to the portion of work executed. Anticipated loss to complete any contract, if any, are considered for valuation.

iii) Valuation of Staging Materials —

Cost of Staging Materials used in job is written off over a period of 4/6 years depending on the life of those materials.

iv) Tools at cost less write down depending on use in job.

e) Prepaid Expenses —

i) Bank Guarantee Commission, Insurance charges, processing fees etc. paid in advance have been appropriated at the time scale and the amount attributable to the relevant accounting year is charged to Profit and Loss Statement of for the relevant year and the balance transferred to Prepaid Expenses under "Advance Recoverable in cash or in kind or value to be received" in Accounts.

f) Consultancy Charges and initial transportation cost of Plant & machinery are charged to revenue in proportion to the value of work done at the year end to the total contractual value of the respective contracts. Expenditure on temporary hutments and fencing is charged to revenue over the contractual period of execution of the respective contracts.

g) All expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

h) Employee Benefits

Liabilities in respect of Employee Benefits are accounted for as under

i) Short-term Employee Benefits —

Undiscounted amount of short-term employee benefits expected to be paid in exchange of the services rendered by employees is recognized during the period when the employees render the service. These include salaries, wages, bonus, social security contribution, medical care and short term compensated absence.

ii) Post Employment Benefits —

The Company makes monthly contribution to Trustees and State Authority for provident fund and pension entitlement of employees in service.

The Company has taken up Group Gratuity cover under "Cash Accumulation Scheme" with Life Insurance Corporation of India for payment of gratuity to retiring employees. Under this scheme the Company''s liability in respect of gratuity payable to retiring employees as per Gratuity Act, 1972, including death and premature retirement is fully covered on the concept that the Company is a going concern.

The above-mentioned post employment benefits are accounted for as defined contribution plans.

iii) The Company has been following a practice of granting accumulated leave to its employees on separation and accordingly no provision for leave salary as per AS15 of ICAI has been made in the accounts.

i) Revenue Recognition -

i) Value of work done up to progressive billing stage at the end of the accounting year and certified/accepted by the client within the said date is taken at the appropriate rate as per contract.

ii) Value of work done up to progressive billable stage at the end of the accounting year but not certified/accepted by the client within the said date is taken at the appropriate rate as per contract and shown under the head "Work done but bills not raised".

iii) Value of work done below the progressive billable stage is however valued at cost (material cost plus all other direct charges attributable to the portion of work done) and shown under the head "Work - in - Progress". Adjustments are made in case of any anticipated loss to complete a contract.

iv) When work is completed beyond 20% of the total executable work, total estimated cost of the project is reviewed vis-a-vis total revenue receivable therefrom. Any loss accruable in this respect, pertaining to completion of the project is provided for.

j) Arbitration claim/counter claim is accounted for on the basis of merit of the case in terms of advice of Legal Experts.

k) As per the terms of the respective contract, Mobilisation Advance received from the Contractee is progressively adjusted with the running bills raised on them at the agreed rate. Interest on such Mobilisation Advance is charged to revenue account as per the terms of the respective contract. Mobilisation Fees are considered proportionate to execution of the related contracts.

l) Contingent Liabilities and Provisions —

Claims against the company under dispute for which no reasonable estimate can be made of amount involved or which may not likely to require, an outflow of resources are not provided for in the accounts but disclosed by way of notes. Disputed claims for which reliable estimate can be made for likely outflow of resources are, however, recognized in accounts.

m) Impairment of Assets —

The company has a system of identifying impairable assets, if any, in terms of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India and on the basis of cash generating unit concept at the year end. Impairment loss thereon being the excess of book value over the recoverable value of such assets, if any, is charged to revenue for the year. Reversal of impairment-loss recognised in earlier years is made if there is an indication that the impairment loss has decreased or does not exist.

Since Accounting Standard on Impairment of Assets is not applicable to assets arising from construction contracts as per Accounting Standard 7 on Construction Contracts issued by ICAI, the Company has not carried out any exercise of Impairment regarding the same.

n) Taxes on Income —

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

o) Use of Estimate —

The preparation of financial statement requires estimates and assumptions to be made, that affect the amount of assets and liabilities on the date of financial statement and amount of revenue and expenses during the reporting period. The difference between the actual and estimates is recognized in the period in which the results are known or materialized.

p) Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

---

Mar 31, 2012

A) Accounts have been prepared on Historical Cost Convention (except in the case of revaluation of certain fixed assets).

b) Fixed Assets are stated at cost / revaluation. Cost include borrowing cost that are attributable to the acquisition or construction of qualifying assets are capitalized as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for use. All other borrowing costs are charged to revenue. Depreciation has been determined on written down value method at rates specified in schedule XIV to the Companies Act, 1956. Leasehold Land is amortised over the lease period.

c) Permanent Investments have been stated at cost less diminution in value, other than temporary.

d) Valuation of Inventories -

i) Stores, spares and construction materials have been valued at below cost or net realizable value. Cost has been considered on FIFO Basis.

ii) Work - in - Progress has been valued at material cost plus all other direct charges attributable to the portion of work executed.

iii) Valuation of Staging Materials -

Cost of Staging Materials used in job is written off over a period of 4/6 years depending on the life of those materials.

iv) Tools at cost less write down depending on use in job.

e) Prepaid Expenses -

i) Bank Guarantee Commission, Insurance charges, processing fees etc. paid in advance have been appropriated at the time scale and the amount attributable to the relevant accounting year is charged to Profit and Loss Account for the relevant year and the balance transferred to Prepaid Expenses under "Advance Recoverable in cash or in kind or value to be received" in Accounts.

f) Consultancy Charges and initial transportation cost of Plant & machinery are charged to revenue in proportion to the value of work done at the year end to the total contractual value of the respective contracts. Expenditure on temporary hutments and fencing is charged to revenue over the contractual period of execution of the respective contracts.

g) All expenses and income to the extent considered payable and receivable, unless stated

otherwise, have been accounted for on accrual basis.

h) Employee Benefits

Liabilities in respect of Employee Benefits are accounted for as under :

i) Short-term Employee Benefits -

Undiscounted amount of short-term employee benefits expected to be paid in exchange of the services rendered by employees is recognized during the period when the employees render the service. These include salaries, wages, bonus, social security contribution, medical care and short term compensated absence.

ii) Post Employment Benefits -

The Company makes monthly contribution to Trustees and State Authority for provident fund and pension entitlement of employees in service.

The Company has taken up Group Gratuity cover under "Cash Accumulation Scheme" with Life Insurance Corporation of India for payment of gratuity to retiring employees. Under this scheme the Company's liability in respect of gratuity payable to retiring employees as per Gratuity Act, 1972, including death and premature retirement is fully covered on the concept that the Company is a going concern.

The above-mentioned post employment benefits are accounted for as defined contribution plans.

iii) The Company has been following a practice of granting accumulated leave to its employees on separation and accordingly no provision for leave salary as per AS15 of ICAI has been made in the accounts.

i) Revenue Recognition -

i) Value of work done up to progressive billing stage at the end of the accounting year and certified/accepted by the client within the said date is taken at the appropriate rate as per contract.

ii) Value of work done up to progressive billable stage at the end of the accounting year but not certified/accepted by the client within the said date is taken at the appropriate rate as per contract and shown under the head "Work done but bills not raised".

iii) Value of work done below the progressive billable stage is however valued at cost (material cost plus all other direct charges attributable to the portion of work done) and shown under the head "Work - in - Progress". Adjustments are made in case of any anticipated loss to complete a contract.

iv) When work is completed beyond 20% of the total executable work, total estimated cost of the project is reviewed vis-a-vis total revenue receivable there from. Any loss accruable in this respect, pertaining to completion of the project is provided for.

j) Arbitration claim/counter claim is accounted for on the basis of merit of the case in terms of advice of Legal Experts.

k) As per the terms of the respective contract, Mobilisation Advance received from the Contractee is progressively adjusted with the running bills raised on them at the agreed rate. Interest on such Mobilisation Advance is charged to revenue account as per the terms of the respective contract. Mobilisation Fees are considered proportionate to execution of the related contracts.

l) Contingent Liabilities and Provisions -

Claims against the company under dispute for which no reasonable estimate can be made of amount involved or which may not likely to require, an outflow of resources are not provided for in the accounts but disclosed by way of notes. Disputed claims for which reliable estimate can be made for likely outflow of resources are, however, recognized in accounts.

m) Impairment of Assets -

The company has a system of identifying impairable assets, if any, in terms of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India and on the basis of cash generating unit concept at the year end. Impairment loss thereon being the excess of book value over the recoverable value of such assets, if any, is charged to revenue for the year.

Reversal of impairment-loss recognised in earlier years is made if there is an indication that the impairment loss has decreased or does not exist.

n) Taxes on Income -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

o) Use of Estimate -

The preparation of financial statement requires estimates and assumptions to be made, that affect the amount of assets and liabilities on the date of financial statement and amount of revenue and expenses during the reporting period. The difference between the actual and estimates is recognized in the period in which the results are known or materialized.

p) Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

---

Mar 31, 2010

A) Accounts have been prepared on Historical Cost Convention (except in the case of revaluation of certain fixed assets).

b) Fixed Assets are stated at cost / revaluation. Depreciation has been determined on written down value method at rates specified in schedule XIV to the Companies Act, 1956. Leasehold Land is amortised over the lease period.

c) Permanent Investments have been stated at cost less decline, if any, and current Investments stated at lower of cost and market value.

d) Valuation of Current Assets -

i) Stores, spares and construction materials have been valued at below cost or net realizable value. Cost has been considered on FIFO Basis. ii) Work - in - Progress has been valued at material cost plus all other direct charges attributable to the portion of work executed. iii) Valuation of Staging Materials - Cost of Staging Materials used in job is written off over a period of 4/6 years depending on the life of those materials. iv) Tools at cost less write down depending on use in job.

e) Prepaid Expenses -

i) Bank Guarantee Commission, Insurance charges etc. paid in advance have been appropriated at the time scale and the amount attributable to the relevant accounting year is charged to Profit and Loss Account for the relevant year and the balance transferred to Prepaid Expenses.

ii) Consultancy Charges and initial transportation cost of Plant and Machinery are charged to revenue in proportion to the value of work done at the year end to the total contractual value of the respective contracts.

iii) Expenditure on temporary hutments and fencing is charged to revenue over the contractual period of execution of the respective contracts.

f) All expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

g) Employee Benefits

Liabilities in respect of Employee Benefits are accounted for as under:

i) Short-term Employee Benefits -

Undiscounted amount of short-term employee benefits expected to be paid in exchange of the services rendered by employees is recognized during the period when the employees render the service. These include salaries, wages, bonus, social security contribution, medical care and short term compensated absence.

ii) Post Employment Benefits -

The Company makes monthly contribution to Trustees and State Authority for provident fund and pension entitlement of employees in service.The Company has taken up Group Gratuity cover under "Cash Accumulation Scheme" with Life Insurance Corporation of India for payment of gratuity to retiring employees. Under this scheme the Companys liability in respect of gratuity payable to retiring employees as per Gratuity Act, 1972, including death and premature retirement is fully covered on the concept that the Company is a going concern,

The above-mentioned post employment benefits are accounted for as defined contribution plans.

h) Revenue Recognition -

i) Value of work done up to progressive billing stage at the end of the accounting year and certified / accepted by the client within the said date is taken at the appropriate rate as per contract.

ii) Value of work done up to progressive billable stage at the end of the accounting year but not certified/accepted by the client within the said date is taken at the appropriate rate as per contract and shown under the head "Work done but bills not raised"

iii) Value of work done below the progressive billable stage is however valued at cost (material cost plus all other direct charges attributable to the portion of work done) and shown under the head "Work - in - Progress". Adjustments are made in case of any anticipated loss to complete a contract.

iv) When work is completed beyond 20% of the total executable work, total estimated cost of the project is reviewed vis-a-vis total revenue receivable therefrom. Any loss accruable in this respect, pertaining to completion of the project is provided for.

i) Borrowing Cost -

Borrowing Cost that are attributable to the acquisition or construction of qualifying assets are capitalized as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for use. All other borrowing costs are charged to revenue.

j) Arbitration claim/counter claim is accounted for on the basis of merit of the case in terms of advice of Legal Experts.

k) As per the terms of the respective contract, Mobilisation Advance received from the Contractee is progressively adjusted with the running bills raised on them at the agreed rate. Interest on such Mobilisation Advance is charged to revenue account as per the terms of the respective contract. Mobilisation Fees are considered proportionate to execution of the related contracts.

l) Contingent Liabilities and Provisions -

Claims against the company under dispute for which no reasonable estimate can be made of amount involved or which may not likely to require, an outflow of resources are not provided for in the accounts but disclosed by way of notes. Disputed claims for which reliable estimate can be made for likely outflow of resources are, however, recognized in accounts.

m) Impairment of Assets -

The company has a system of identifying impairable assets, if any, in terms of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India and on the basis of cash generating unit concept at the year end. Impairment loss thereon being the excess of book value over the recoverable value of such assets, if any, is charged to revenue for the year.

Reversal of impairment-loss recognised in earlier years is made if there is an indication that the impairment loss has decreased or does not exist.

n) Taxes on Income -

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax liabilities and assets are recognised at substantively enacted tax rates, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent years.

o) Accounting policies not specifically referred to are consistent with generally accepted accounting practice.