Accounting Policies of Vishnusurya Projects And Infra Ltd. Company

Mar 31, 2025

2. SIGNIFICANT ACCOUNTING POLICIES

(i) BASIS OF PREPARATION OF FINANCIAL
STATEMENTS

The significant accounting policies applied by the
Company in the preparation of its financial statements
are listed below. Such accounting policies have been
applied consistently to all the periods presented
in these financial statements, unless otherwise
specifically stated. These financial statements have
been prepared on accrual basis under the historical
cost convention.

(a) Statement of compliance

The financial statements of the Company have
been prepared in accordance with the Generally
Accepted Accounting Principles in India (Indian
GAAP). Indian GAAP comprises mandatory
Accounting Standards notified under Section
133 of the Companies Act 2013 (''the Act'') read
with Companies (Accounting Standards) Rules,
2021 (as amended) and the relevant provisions
of the Companies Act, 2013, together with other
pronouncements of the Institute of Chartered
Accountants of India (ICAI), as applicable.

(b) Use of estimates

In the preparation of these financial statements, the
management makes estimates and assumptions
that affect the carrying values of assets and
liabilities (including contingent liabilities) and the
reported income and expense, as at the date of the
financial statements. Significant estimates and
assumptions include those related to provision
for Retirement benefit obligations, Provision for
doubtful debts/ advances, Useful life of Property
Plant & Equipment, Impairment of assets and
other matters requiring management judgment

for the years presented. These estimates and
associated assumptions are based on historical
experience and other factors that are considered
to be relevant. Actual results may differ from
these estimates. Management believes that
the estimates used are prudent & reasonable.
These estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimate is revised, and prospectively
in future periods.

(ii) VALUATION OF INVENTORIES

Inventories comprise the followings: (a) Stock
of Materials at site (construction), (b) Gravel &
Aggregates, (c) Stores and spares

Inventories are recorded at the lower of cost and
net realizable value (NRV). NRV is the estimated
selling price in the ordinary course of business, less
estimated costs of completion and the estimated
costs necessary to make the sale. NRV does not
include selling and distribution expenses.

Determination of Cost:

• Gravel & Aggregates - Cost is determined using
weighted average cost of production per unit. Cost
of production includes direct materials, labour
charges and a proportionate share of production
overheads incurred in bringing the inventories to
their present condition.

• Stock of Materials at site (construction), Drones
& Accessories & Stores and spares - Cost is
determined on a First-in-First-out (FIFO) basis.
The cost includes the purchase price, non¬
creditable taxes and duties, freight, and other
directly attributable costs incurred in bringing such
inventories to their present location and condition.

(iii) CASH AND BANK BALANCES

Cash & cash equivalents - Cash and cash equivalents
comprise cash on hand, balances with banks in
current accounts, and demand deposits with an
original maturity of three months or less from the
date of acquisition. Cash equivalents are short-term

balances (with an original maturity of three months
or less from the date of acquisition), highly liquid
investments that are readily convertible into known
amounts of cash and are subject to insignificant risk
of changes in value. These balances are unrestricted
for withdrawal and usage.

Other bank balances comprise of items such as
balances with banks held as (1) margin money
deposits against bank guarantee, (2) Deposits pledged
/ offered as security against borrowings (3) Balances
under lien (4) Earmarked balances with bank (unpaid
dividend) etc. (5) term deposits with original maturities
of more than three months but less than or equal to
twelve months.

Term deposits with original maturity exceeding twelve
months are disclosed separately under other non¬
current assets.

(iv) CASH FLOW STATEMENT

The Consolidated Statement of Cash Flows has been
prepared in accordance with Accounting Standard
(AS) 3 - Cash Flow Statements. Cash flows are
reported using the Indirect Method, whereby net profit
before tax is adjusted for the effects of transactions
of a non-cash nature, deferrals or accruals of past or
future operating cash receipts or payments, and items
of income or expense associated with investing or
financing cash flows. The cash flows are segregated
into operating, investing, and financing activities.

(v) REVENUE RECOGNITION

Revenue from Construction contract is recognised in
accordance with AS-7 Construction Contracts using
the percentage of completion method, where the
performance obligations are satisfied over time and
where there is no uncertainty as to measurement
or collectability of consideration. Revenue from last
billing date to the Balance Sheet date is recognized as
unbilled revenue under other current assets. Unbilled
revenue represents value of services performed in
accordance with the contract terms but not yet billed
as at the Balance Sheet date. When it is probable that
the total contract cost will exceed the total contract
revenue, the expected loss is recognised immediately.

Revenue from Mining operations is recognised as
and when the right to receive such income arises, it
is probable that the economic benefits will flow to the
Company, and the amount of income can be measured
reliably.

Revenue from waste management services is
recognised as the services are rendered, based on
the tonnage of processed waste at rates agreed
with customers, provided no significant uncertainty
exists regarding the measurement or collectability of
consideration. Unbilled revenue represents value of
services performed in accordance with the contract
terms but not yet billed in accordance with contract
terms, is disclosed under Other Current Assets.

Revenue from sale of traded goods is recognized
when the significant risks and rewards of ownership of
goods have been passed to the buyer, which generally
coincides with the dispatch of goods. Revenue is
recognized based on the consideration received and
receivable net of discounts, rebates, returns, taxes,
and duties on sales. Revenues are recognized only
when it can be reliably measured and recognised
only when no significant uncertainty exists regarding
measurement or collectability.

Other operating income comprises

• Recovery of transport and other charges from
customers in the mining division, recognised
on the basis of contractual terms when the
related service is rendered and recognised only
when no significant uncertainty exists regarding
measurement or collectability.

• Revenue from sale of scrap is recognised when
control of the products has been transferred to
the customer, typically upon delivery, and it is
probable that the economic benefits will flow to
the Company, and the amount of income can be
measured reliably

• Revenue from other operating services is
recognised is recognised in accordance with
the terms of the relevant agreements with
the customers, as the services are performed
and there are no unfulfilled obligations, and no
significant uncertainty exists regarding collection.

Interest income is accrued on a time proportion basis
taking into account the amount outstanding and rate
applicable and is recognised in the statement of profit
or loss. Dividend income if any is recognised when the
right to receive payment is established. Other revenues
are recognized and accounted on their accrual with
necessary provisions for all known liabilities and
losses as per AS 9.

(vi) PROPERTY, PLANT & EQUIPMENT

An item of property, plant and equipment is recognised
as an asset when it is probable that future economic
benefits associated with the item will flow to the
Company and its cost can be measured reliably. This
recognition principle is applied to costs incurred initially
to acquire an item of property, plant and equipment and
also to costs incurred subsequently to add to, replace
part of, or service it. All other repair and maintenance
costs, including regular servicing, are recognised in
the statement of profit and loss as incurred. When
significant parts of an asset are replaced, the carrying
amount of the replaced part is derecognised. Where
an item comprises major components with different
useful lives, such components are accounted for
separately.

Property, plant and equipment are stated at cost,
less accumulated depreciation and impairment, if
any. Cost comprises the purchase price and any cost
directly attributable to bringing the asset to its working
condition for its intended use, including relevant
borrowing cost of qualifying asset and the cost of
dismantling & restoring the site on which the asset is
located.

An item of property, plant and equipment is
derecognised upon disposal or when no future
economic benefits are expected to arise from the
continued use of the asset. The gain or loss arising
from the de-recognition is the difference between the
net disposal proceeds, if any, and the carrying amount
of the item and is recognised in the Statement of Profit
and Loss.

Capital work-in-progress representing expenditure
incurred in respect of assets under development
and not ready for their intended use are ''carried at

cost''. Cost includes related acquisition expenses,
construction cost, related borrowing cost and other
direct expenditure. Such items are classified to the
appropriate category of property, plant and equipment,
when completed and ready for their intended use.

Advances given towards acquisition / construction
of property, plant and equipment outstanding at
each balance sheet date are classified as ''Capital
Advances''.

(vii) DEPRECIATION & AMORTIZATION

Depreciation on Property, Plant and Equipment is
provided on the Written Down Value (WDV) method
in accordance with the useful lives prescribed under
Schedule II of the Companies Act, 2013. Depreciation
is charged from the date the asset is available for use
and on a pro-rata basis for additions and disposals
during the year. The residual values, useful lives and
method of depreciation of PPE are reviewed at each
financial year-end and adjusted prospectively, if
appropriate.

(viii) FOREIGN CURRENCY TRANSACTIONS AND
TRANSLATIONS

Initial Recognition - Foreign currency transactions are
recorded in the reporting currency (INR), by applying
the exchange rate prevailing on the date of the
transaction to the foreign currency amount.

Subsequent measurement - Monetary items
denominated in foreign currencies are translated at
the closing exchange rate on the Balance Sheet date.
Non-monetary items, which are carried in terms of
historical cost and denominated in a foreign currency,
are reported using the exchange rate at the date of the
transaction.

Exchange Differences - Exchange differences arising
on settlement of monetary items or on restatement at
rates different from those at which they were initially
recorded are recognised as income or expense in the
Statement of Profit and Loss in the period in which
they arise.

(ix) INVESTMENTS

Investments, which are readily realizable and intended
to be held for not more than one year, are classified

as current investments and carried at the lower of
cost and fair value. All other investments including
investments in subsidiaries, associates, and joint
ventures, are classified as non-current investments
and carried at cost. On initial recognition, all
investments are measured at cost. The cost comprises
purchase price and directly attributable acquisition
charges such as brokerage, fees and duties, less
the pre-acquisition interest/dividend accrued if any.
Where an indication of impairment exists, the carrying
amount of investment is assessed and an impairment
provision is recognised, if required immediately to its
recoverable amount. On disposal of such investments,
the difference between the net disposal proceeds and
carrying amount is recognised in the statement of
profit and loss

Investments in Subsidiaries: A subsidiary is an entity
that is controlled by the Company. Control is the
power to govern the financial and operating policies
of an entity so as to obtain benefits from its activities,
generally presumed when the Company holds more
than one-half of the voting power or has control
over the composition of the board of directors. Such
investments are carried at cost in the standalone
financial statements in accordance with AS 13.

(x) EMPLOYEE BENEFITS

Short-term Employee benefits: The undiscounted
amount of short-term employee benefits expected
to be paid in exchange for the services rendered by
employees are recognised during in the period in
which the related service is rendered. These benefits
wages, salaries, performance incentives, and other
benefits expected to be settled wholly within twelve
months after the end of the reporting period. A liability
is recognised for the amount expected to be paid
when there is a present legal or constructive obligation
to pay this amount as a result of past service provided
by the employee and the obligation can be estimated
reliably

Defined Contribution plan: The Company''s
contributions to provident fund and Employees'' State
Insurance Corporation are recognised as expenses in
the Statement of Profit and Loss in the period during
which the employees render the related services,

based on the amount of contribution required to
be made. These benefits are classified as defined
contribution plans since the Company has no further
obligations beyond its monthly contributions.

Defined Benefit plan - Gratuity Non-funded: For

defined benefit retirement schemes, the cost of
providing benefits is determined using the Projected
Unit Credit Method, with actuarial valuation being
carried out at each year-end balance sheet date.
Defined benefit costs comprising current service
cost, gains or losses on settlements and net interest
on the net defined benefit liability are recognised
in the Statement of Profit and Loss as employee
benefits expense. Past service cost is recognised as
an expense when the plan amendment or curtailment
occurs or when any related restructuring costs or
termination benefits are recognised, whichever is
earlier. The Actuarial gains and losses are recognized
immediately in the statement of Profit and Loss
Account. The liability recognised in the balance sheet
represents the present value of the defined benefit
obligation, classified into current and non-current
portions as determined by the actuary in line with
Schedule III requirements.

Leave Encashment: - The Company does not have a
policy for encashment of unutilised leave credits.

(xi) BORROWING COST

Borrowing costs that are directly attributable to the
acquisition, construction or production of a qualifying
asset (i.e., 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 such asset until
the asset is substantially ready for its intended use
or sale. All other borrowing costs are recognised as
an expense in the Statement of Profit and Loss in the
period in which they are incurred.

(xii) SEGMENT REPORTING

The Company has three reportable business segments
for the year, viz. (1) Construction and allied activities
(2) Mining activities with crusher plant & M-Sand plant
and (3) Waste Management. Separate secondary

segment disclosure is not required as 100% of the
Company''s revenue is in the domestic market.

Segment accounting policies are consistent with
the accounting policies adopted by the Company.
Segment assets, liabilities, revenue and results are
identified to segments on the basis of their relationship
to the operating activities of the segment. Common
costs and unallocable assets and liabilities are treated
as relating to the Company as a whole. Disclosures in
accordance with AS 17 are presented in Note 43.

(xiii) LEASES

Lease arrangements under which substantially all
the risks and rewards of ownership are retained by
the lessor are classified as operating leases. Lease
expenses under such arrangements are recognized
in the Statement of Profit and Loss on a straight-line
basis over the lease term, unless the lease payments
are structured to increase in line with expected general
inflation, in which case they are recognized as per the
lease agreement terms. Disclosures in accordance
with AS 19 are presented in Note 46.

(xiv) EARNINGS PER SHARE(EPS)

Basic EPS is computed by dividing the profit / (loss)
after tax attributable to ordinary shareholders by
the weighted average number of equity shares
outstanding during the year.

Diluted EPS is computed by adjusting both the net
profit and the weighted average number of equity
shares for the effects of all dilutive potential equity
shares, if any.

(xv) ACCOUNTING FOR TAXES ON INCOME

Provision for Current tax is made based on the liability
computed in accordance with the relevant tax rates
and tax laws that have been enacted or substantially
enacted by the end of the reporting period. Current tax
assets and liabilities are presented in the Standalone
Balance Sheet after adjusting for advance taxes, tax
deducted at source, and other permissible set-offs

Deferred tax is recognised for all timing differences
between taxable income and accounting income

that originate in one period and reverse in one or
more subsequent periods. Deferred tax liabilities
are recognised for all taxable timing differences.
Deferred tax assets are recognised for deductible
timing differences only when there is reasonable
certainty of realisation, and in the case of unabsorbed
depreciation or carry-forward of losses, only when
there is virtual certainty of realisation. Deferred tax
assets and liabilities are measured at the tax rates
that have been enacted or substantively enacted as at
the reporting date. Deferred tax assets and liabilities
are offset when there is a legally enforceable right to
set off current tax assets against current tax liabilities.
The carrying amount of deferred tax assets is reviewed
at each reporting date and reduced to the extent it is
no longer probable that sufficient taxable profit will be
available to utilise the asset.

(xvi) IMPAIRMENT OF ASSETS

At each Balance Sheet date, the carrying values
of the tangible assets are reviewed to determine
whether there is any indication that those assets have
suffered an impairment loss. If any such indication
exists, the recoverable amount (higher of net selling
price and value in use) of the asset is estimated
in order to determine the extent of the impairment
loss (if any). Where there is an indication that there
is a likely impairment loss for a group of assets, the
company estimates the recoverable amount of the
group of assets as a whole, to determine the value of
impairment. In assessing value in use, the estimated
future cash flows are discounted to their present
value at the weighted average cost of capital. After

impairment, depreciation is provided on the revised
carrying amount of the assets over its remaining
useful life. Reversals of impairment are recognised to
the extent that the carrying amount does not exceed
the amount that would have been determined had no
impairment been recognised earlier.

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Mar 31, 2024

2. significant accounting policies

(i) basis of preparation of financial statements

The significant accounting policies applied by the Company in the preparation of its financial statements

are listed below. Such accounting policies have been applied consistently to all the periods presented in these financial statements, unless otherwise indicated. These financial statements have been prepared on accrual basis under the historical cost convention.

(a) Statement of compliance

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). Indian GAAP comprises mandatory Accounting Standards notified under Section 133 of the Companies Act 2013 read with Companies (Accounting Standards) Rules, 2021 (as amended) and the relevant provisions of the Companies Act, 2013.

(b) Use of estimates

In the preparation of these financial statements, the company makes estimates and assumptions that affect the carrying values of assets and liabilities, disclosures of contingent liabilities and the reported income and expense, as at the date of the financial statements. Significant estimates and assumptions include those related to provision for retirement benefit obligations, provision for doubtful debts/ advances, useful life of Property Plant & Equipment, Impairment etc for the years presented. These estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Management believes that the estimates used are prudent & reasonable. These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, and future periods affected.

(ii) VALUATION OF INVENTORIES

Inventories comprise the followings:

(a) Stock of Materials at site (construction)

(b) Gravel & Aggregates

(c) Drones & Accessories.

Inventories are recorded at the lower of cost and net realizable value (NRV). NRV is the price at which the inventories can be realised in the normal course of business after allowing for the cost of conversion from their existing state to a finished condition and for the cost of marketing, selling and distribution.

Determination of Cost:

Gravel & Aggregates - The cost is determined using weighted average cost of production per unit. Production cost includes labour charges and appropriate overhead cost incurred till the point of sale.

Stock of Materials at site (construction) & Drones & Accessories (Trading) - Cost is ascertained on a First in First out (FIFO) basis. The cost includes the purchase price, applicable taxes not eligible for credit, and all other direct costs.

(iii) CASH AND BANK BALANCES

Cash & cash equivalents - Cash comprises cash on hand and demand deposit with bank. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. These balances with banks are unrestricted for withdrawal and usage.

Other bank balances comprise of items such as balances with banks held as (1) margin money on bank guarantee, (2) offered as security against borrowings (3) under lien (4) Earmarked balances with bank (unpaid dividend) etc. It also includes term deposits with three to twelve months of maturity.

Term deposits with more than twelve months of maturity are disclosed separately under other noncurrent assets.

(iv) CASH FLOW STATEMENT

Statement of Cashflows is prepared segregating the cash flows into operating, investing, and financing activities. The Cashflows has been prepared under ''Indirect Method'' as set out in AS 3.

(v) REVENUE RECOGNITION

Construction contract receipts have been recognised as per AS-7. Revenue from construction services, where the performance obligations are satisfied over time and where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. Revenue from last billing date to the Balance Sheet date is recognized as unbilled revenue under other current assets. Unbilled revenue represents value of services performed in accordance with the contract terms but not billed. When it is probable that the total contract cost will exceed the total contract revenue, the company recognises the estimated loss.

Income from Mining operations is recognised as and when the right to receive such income arises, and it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably.

Revenue from trading activity (Drones & Accessories) is recognized when the significant risks and rewards of ownership of goods have been passed to the buyer, which generally coincide with the dispatch of goods. Revenue is recognized based on the consideration received and receivable net of discounts, rebates, returns, taxes, and duties on sales. Revenues are recognized only when it can be reliably measured, and it is reasonable to expect ultimate collection.

Income from other operating services rendered is recognised based on agreements/arrangements with

the customers as the services is performed and there are no unfulfilled obligations.

Income from sale of scrap is recognised when control of the products has been transferred to the customer, typically upon delivery, and it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably

Interest income is accrued on a time proportion basis taking into account the amount outstanding and rate applicable and is recognised in the statement of profit or loss. Income from mutual fund is recognised based on the NAV prevailing on the date of disposal or as on Balance sheet date through statement of profit and loss. Other revenues are recognized and accounted on their accrual with necessary provisions for all known liabilities and losses as per AS 9.

(vi) property, plant & equipment

An item of property, plant and equipment is recognised as an asset if it is probable that future economic benefits associated with the item will flow to the Company and its cost can be measured reliably. This recognition principle is applied to costs incurred initially to acquire an item of property, plant and equipment and also to costs incurred subsequently to add to, replace part of, or service it. All other repair and maintenance costs, including regular servicing, are recognised in the statement of profit and loss as incurred. When a replacement occurs, the carrying value of the replaced part is de-recognised. Where an item of property, plant and equipment comprises major components having different useful lives, these components are accounted for as separate items.

Property, plant and equipment are stated at cost, less accumulated depreciation and impairment, if any. Cost comprises the purchase price and any cost directly attributable to bringing the asset to its working condition for its intended use, including relevant borrowing cost of qualifying asset and the cost of dismantling & restoring the site on which the asset is located.

An item of property, plant and equipment is derecognised upon disposal or on retirement, when no future economic benefits are expected to arise from the continued use of the asset. The gain or loss arising from the de-recognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and is included in the statement of profit and loss when the item is derecognised.

Capital work-in-progress representing expenditure incurred in respect of assets under development and not ready for their intended use are ''carried at cost''. Cost includes related acquisition expenses, construction cost, related borrowing cost and other direct expenditure. Such items are classified to the appropriate category of property, plant and equipment, when completed and ready for their intended use. Advances given towards acquisition / construction of property, plant and equipment outstanding at each balance sheet date are classified as Capital Advances.

(vii) DEPRECIATION & AMORTIZATION

The company depreciates Property, Plant & Equipment over their estimated useful lives using written down value method as per Schedule II of Companies Act. These charges are commenced from the dates the assets are available for their intended use and are spread over their estimated useful lives. Depreciation on deletions has been provided on pro-rata basis. The residual values, useful lives and method of depreciation of PPE are reviewed at each financial year-end and adjusted prospectively, if appropriate.

(viii) FOREIGN CURRENCY TRANSACTIONS AND TRANSLATIONS

Initial Recognition - Foreign currency transactions are recorded in the reporting currency (INR), by applying the exchange rate between the reporting currency and the foreign currency at the date of transaction to the foreign currency amount.

Conversion - Foreign currency assets/liabilities items which are carried in terms of historical cost denominated in a foreign currency are reported using the closing rate. Revenue nature items are reported using the exchange rate at the date of the transaction.

Exchange Differences - Exchange differences arising on the settlement of monetary items at rates different from those at which they were initially recorded or reported are recognized as income/expense in the year in which they arise. The exchange difference on the date of closing due to change in closing rate is taken into statement of profit and loss account.

(ix) investments

Investments, which are readily realizable and intended to be held for not more than one year, are classified as current investments. All other investments are classified as non-current investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties, less the pre-acquisition interest/dividend accrued if any. Where an indication of impairment exists, the carrying amount of investment is assessed and an impairment provision is recognised, if required immediately to its recoverable amount. On disposal of such investments, the difference between the net disposal proceeds and carrying amount is recognised in the statement of profit and loss

I nvestments in Associates - Associates are entities over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. This is generally the case where the Company holds between 20% and 50% of the voting rights.

(x) employee benefits

Short-term Employee benefits: The undiscounted amount of short-term employee benefits expected

to be paid in exchange for the services rendered by employees are recognised during the year when the employee renders the service. These benefits include a performance incentive which is expected to occur within twelve months after the end of the period in which the employee renders the related services. A liability is recognised for the amount expected to be paid when there is a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Defined Contribution plan: Employee benefits in the form of contribution for provident fund, Employees State Insurance Corporation are charged as an expense to the statement of profit and loss, based on the amount of contribution required to be made as and when services are rendered by the employees. The above benefits are classified as Defined Contribution Plan, as the Company has no further obligations beyond the monthly contributions.

Defined Benefit plan - Gratuity Non-funded: For defined benefit retirement schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each year-end balance sheet date. Defined benefit costs comprising current service cost, gains or losses on settlements and net interest on the net defined benefit liability/(asset) are recognised in the Statement of Profit and Loss as employee benefits expense. Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognised, whichever is earlier. The Actuarial gains and losses are recognized immediately in the statement of Profit and Loss Account. The retirement benefit obligations recognised in the balance sheet represents the present value of the defined benefit obligations. The amount of current & non-current liability for unfunded post-employment

benefit obligation is disclosed, as determined by the actuary based on the definition of Current and Noncurrent assets and liabilities in Schedule III.

Leave Encashment: - The Company does not have a policy for encashing unutilised leave credits.

(xi) borrowing cost

Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for the intended use or sale. All other borrowing costs are recognised as expenses in the period in which it is incurred.

(xii) SEGMENT REPORTING

The Company has two main business activities for the year, viz. (1) Construction and allied activities (2) Mining activities with crusher plant & M-Sand plant.

Separate secondary segment disclosure is not required as the cent percent of the Company''s sale is in the domestic market.

Segment accounting policies are in line with the accounting policies of the Company. In addition, the following specific accounting policies have been followed for segment reporting:

a) Segment revenue includes sales and other revenue directly identifiable with/allocable to the segment.

b) Expenses that are directly identifiable with/ allocable to segments are considered for determining the segment result.

c) Most of the common costs are allocated to segments mainly on the basis of the respective segment revenue for the reporting period.

d) Income / Expenses which relates to the Company as a whole and not allocable to segments is

included in "un-allocable corporate income/ (expenditure)(net)”.

e) Segment result represents profit before tax.

f) Segment assets and liabilities include those directly identifiable with the respective segments. Un-allocable corporate assets and liabilities represent those that relate to the Company as a whole. Refer note 43 for segment details.

(xiii) EARNINGS PER SHARE

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, (if any) attributable to ordinary shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares, if any.

(xiv) ACCOUNTING FOR TAXES ON INCOME

Provision for Current tax is made based on the liability computed in accordance with the relevant tax rates and tax laws that have been enacted or substantially enacted by the end of the reporting period. Current tax is recognised based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Prepaid taxes and provisions for current income taxes are presented in the balance sheet on net basis

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted

as at the reporting date. Deferred tax liabilities are recognised for all the timing differences. Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are shown on net-basis. The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

(xv) impairment of assets

At each Balance Sheet date, the carrying values of the tangible assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where there is an indication that there is a likely impairment loss for a group of assets, the company estimates the recoverable amount of the group of assets as a whole, to determine the value of impairment.

The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of its recoverable amount, so that the increased carrying value does not exceed the carrying value that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised in the statement of profit and loss immediately.