Accounting Policies of Yuranus Infrastructure Ltd. Company

Mar 31, 2024

Note 2 - Material Accounting Policies

This note provides a list of the significant accounting policies adopted in the preparation of these Financial
Statements. Accounting policies have been consistently applied to all the years presented except where a
newly issued accounting standard is initially adopted or a revision to an existing accounting standard
requires a change in the accounting policy hitherto in use.

(a) Basis of Compliance

The Financial Statements have been prepared in accordance and comply in all material aspects with Indian
Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) read with
Rule 3 of the Companies (Indian Accounting Standards) Rules, 201 5 and relevant amendment rules issued
thereafter from time to time.

(b) Basis of Preparation of Financial Statement

The Financial Statements have been prepared on historical cost basis, except for certain financial
instruments that are measured at fair values at the end of each reporting period, as explained in accounting
policies below. All the values are rounded off to the nearest Lacs unless otherwise indicated.

All assets and liabilities have been classified as current or non-current as per the Company’s normal
operating cycle (i.e. 12 months) and other criteria set out in the Schedule III to the Companies Act, 2013.

(c) Critical accounting estimates, assumptions, and judgments

The preparation of the Financial Statements requires management to make estimates, assumptions and
judgments that affect the reported balances of assets and liabilities and disclosures as at the date of the
Financial Statements and the reported amounts of income and expense for the periods presented.

The 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 considering different assumptions
and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and future periods are affected.

This note provides an overview of the areas that involved a higher degree of judgment or complexity, and
of items which are more likely to be materially adjusted due to estimates and assumptions turning out to
be different than those originally assessed. Detailed information about each of these estimates and

judgments is included in relevant notes together with information about the basis of calculation for each
affected line item in the Financial Statements.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a
material adjustment within the next financial year are included in the following notes:

• Lease term: whether the Group is reasonably certain to exercise extension options.

• Revenue recognition: timing of revenue recognition based on when the performance obligations are
satisfied under contracts with customers

• Useful lives of property, plant and equipment, right of use assets and intangible assets

• Measurement of defined benefit obligations: key actuarial assumptions;

• Recognition of deferred tax assets: availability of future taxable profit against which deductible
temporary differences and tax losses carried forward can be utilised;

• Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and
magnitude of an outflow of resources; and

• Measurement of ECL allowance for trade and other receivables, loans and contract assets: key
assumptions in determining the weighted-average loss rate.

(d) Property, Plant and Equipment / Intangible Assets

An item of property, plant and equipment (‘PPE’) is recognised as an asset if it is probable that the future
economic benefits associated with the item will flow to the Company and its cost can be measured reliably.
These recognition principles are applied to the costs incurred initially to acquire item of PPE, to the pre¬
operative and trial run costs incurred (net of sales), if any and also to the costs incurred subsequently to
add to, replace part of, or service it.

Property, Plant and Equipment are stated at cost of acquisition/construction net of recoverable taxes and
less accumulated depreciation/amortization and impairment loss, if any. Cost includes cost of acquisition,
construction, installation, borrowing cost and any cost directly attributable to bringing the assets to its
working condition for its intended use, net of recoverable taxes. The Company capitalizes to project assets
all the cost directly attributable and ascertainable, to completing the project.

All other repairs and maintenance are charged to profit or loss during the reporting period in which they
are incurred. If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and equipment. The
carrying amount of any component accounted for as a separate asset is de-recognized when replaced.

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated
amortization and accumulated impairment losses.

Any item of property, plant and equipment / intangible assets is derecognized upon disposal or when no
future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of
the asset) is charged to revenue in the Statement of Profit and Loss when the asset is derecognized.

Capital work in Progress / Intangible assets under development

Projects under commissioning and other CWIP/ intangible assets under development are carried at cost,
comprising direct cost, related incidental expenses and attributable borrowing cost.

Subsequent expenditures relating to property, plant and equipment are capitalised only when it is
probable that future economic benefit associated with these will flow to the Company and the cost of the
item can be measured reliably. Advances given to acquire property, plant and equipment are recorded
as non-current assets and subsequently transferred to CWIP on acquisition of related assets.

Depreciation and Amortization, Estimated Useful Lives and Residual Values

Depreciation is calculated to systematically allocate the cost of property, plant and equipment and
intangible assets net of the estimated residual values over the estimated useful life. Freehold land is not
depreciated. Depreciation on property, plant and equipment is provided using Written Down Value
method over the useful life of assets, which is as stated in Schedule II of Companies Act, 2013 or based on
the certificate of technical engineers as accepted by the Management of Company. Intangible assets are
amortized over their respective individual estimated useful life on a Straight-Line Method commencing from
the date the asset is available to the Company for its use. The management estimates the useful life as
follows: -

For these classes of assets, based on internal assessment and independent technical evaluation carried out
by external valuers, the Management believes that the useful lives as given above best represent the
period over which the Management expects to use these assets.

The management believes that above useful lives are realistic and reflect fair approximation of the period
over which the assets are likely to be used. The useful lives are reviewed by the management at each
financial year end and revised, if appropriate. In case of a revision, the unamortized depreciable amount
(remaining net value of assets) is charged over the revised remaining useful lives. Based on management
estimate, residual value of 5% is considered for respective items of property, plant & equipment assets.
The residual values, useful lives and methods of depreciation of property, plant and equipment (PPE) /
intangible assets are reviewed at the end of each financial year and adjusted prospectively if appropriate.
Depreciation on items of property, plant and equipment acquired / disposed off during the year is
provided on pro-rata basis with reference to the date of addition / disposal.

The right-of-use asset (recognized under Ind AS 11 6 Leases) is depreciated using the straight-line method
from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or
the end of the lease term.

(e) Impairment of non-financial assets

For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows from other assets or groups of
assets is considered as a cash generating unit (“CGU”). The carrying values of assets / CGU at each
Balance sheet date are reviewed to determine whether there is any indication that an asset may be
impaired. If any indication of such impairment exists, the recoverable amount of such assets / CGU is
estimated and in case the carrying amount of these assets exceeds their recoverable amount, an impairment
loss is recognised in the Statement of Profit and Loss. The recoverable amount is the higher of the net selling
price and their value in use. Value in use is arrived at by discounting the future Cash Flows to their present
value based on an appropriate discount factor. Assessment is also done at each Balance sheet date as to
whether there is indication that an impairment loss recognised for an asset in prior accounting periods no
longer exists or may have decreased, consequent to which such reversal of impairment loss is recognised in
the Statement of Profit and Loss.

(f) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

Financial Asset

Initial recognition and measurement

A financial asset is recognised in the Balance Sheet when the Company becomes party to the contractual
provisions of the instrument. At initial recognition, the Company measures a financial asset at its fair value
plus or minus, in the case of a financial asset not measured at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition or issue of the financial asset except trade receivables
(not containing significant financing component) are measured at transaction price.

Subsequent measurement

For purpose of subsequent measurement, financial assets are classified as under:

- Financial assets measured at amortized cost;

- Financial assets measured at fair value through profit or loss (FVTPL); and

- Financial assets measured at fair value through other comprehensive income FVTOCI).

The Company classifies its financial assets in the above-mentioned categories based on:

- The Company’s business model for managing the financial assets, and

- The contractual cash flows characteristics of the financial asset.

A financial asset is measured at amortized cost if both of the following conditions are met:

- The financial asset is held within a business model whose objective is to hold financial assets in order
to collect contractual cash flows and

- The contractual terms of the financial assets give rise on specified dates to cash flows that are solely
payments of principal and interest (SPPI) on the principal amount outstanding.

Financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss.
A gain or loss on a debt investment that is subsequently measured at amortised cost is recognised in the
Statement of Profit and Loss when the asset is derecognised or impaired.

A financial asset is measured at fair value through other comprehensive income if both of the following
conditions are met:

- The financial asset is held within a business model whose objective is achieved by both collecting
the contractual cash flows and selling financial assets and

- The assets’ contractual cash flows represent SPPI.

A financial asset is measured at fair value through profit or loss unless it is measured at amortized cost or
at fair value through other comprehensive income. In addition, the Company may elect to designate a
financial asset, which otherwise meets amortized cost or FVTOCI criteria, as at FVTPL. However, such
election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ‘accounting mismatch’).

Equity Investments

The Company subsequently measures all equity investments at fair value. Equity instruments which are held
for trading are classified as at FVTPL. For all other equity instruments, the Company may make an
irrevocable election to present in other comprehensive income subsequent changes in the fair value. The
Company makes such election on an instrument by-instrument basis. The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI
to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss within
equity. Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the P&L.

For debt instrument, movements in the carrying amount are recorded through OCI, except for the
recognition of impairment gains or losses, interest revenue and foreign exchange gains or losses which are
recognised in the Statement of Profit and Loss. When the financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is reclassified from equity to the Statement of Profit and Loss.
Interest income from these financial assets is included in other income using the EIR method.

De-recognition

A financial asset is derecognised only when the Company:

- has transferred the rights to receive Cash Flows from the financial asset; or

- retains the contractual rights to receive the Cash Flows of the financial asset but assumes a
contractual obligation to pay the Cash Flows to one or more recipients.

Where the Company transfers an asset, it evaluates whether it has transferred substantially all risks and
rewards of ownership of the financial asset. Where the Company has transferred substantially all risks and
rewards of ownership, the financial asset is derecognised. Where the Company has not transferred
substantially all risks and rewards of ownership of the financial asset, the financial asset is not
derecognised. Where the Company has neither transferred a financial asset nor retained substantially all
risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company
has not retained control of the financial asset. Where the Company retains control of the financial asset,
the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

Impairment of Financial Assets

The Company assesses impairment based on expected credit loss (ECL) model to the following:

- Financial assets measured at amortized cost

- Financial assets measured at fair value through other comprehensive income

Expected credit losses are measured through a loss allowance at an amount equal to:

- The 12-months expected credit losses (expected credit losses that result from those default events
on the financial instrument that are possible within 12 months after the reporting date); or

- Life time expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument).

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on trade
receivables or contract revenue receivables. Under the simplified approach, the Company is not required
to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.

The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade
receivables. The provision matrix is based on its historically observed default rates over the expected life
of the trade receivable and is adjusted for forward looking estimates. At every reporting date, the
historical observed default rates are updated and changes in the forward-looking estimates are analyzed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the Statement of Profit and Loss. ECL is presented as an allowance, i.e., as an integral part of
the measurement of the financial assets in the Balance Sheet. The allowance reduces the net carrying
amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from
the gross carrying amount.

For assessing increase in credit risk and impairment loss for other than above financial assets, the Company
combines financial instruments on the basis of shared credit risk characteristics with the objective of
facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a
timely basis. The Company does not have any purchased or originated credit-impaired (POCI) financial
assets, i.e., financial assets which are credit impaired on purchase/ origination.

Financial Liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities measured at fair value through
profit or loss and financial liabilities measured at amortized cost as appropriate. All financial liabilities
are recognized initially at fair value and, in case of loans and borrowings and payables, net of directly
attributable transaction costs. The Company’s financial liabilities include trade and other payables, lease
liabilities, loan and borrowings including derivative liabilities etc.

Subsequent measurement

- Financial liabilities measured at amortized cost

- Financial liabilities subsequently measured at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near
term. Gains or losses on liabilities held for trading are recognized in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated
as such at the initial date of recognition, and only if the criteria in Ind AS 109 - Financial Instruments are
satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit
risk are recognized in OCI. These gains / losses are not subsequently transferred to P&L. However, the
Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such
liability are recognized in the Statement of Profit and Loss.

The Company has not designated any financial liability as at fair value through profit and loss. After initial
recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the
Effective Interest Rate (EIR) method. The effective interest rate is the rate that exactly discounts estimated
future cash payments through the expected life of the financial liability, or, where appropriate, a shorter
period. The EIR amortization is included as finance costs in the Statement of Profit and Loss. Changes to the
carrying amount of a financial liability as a result of renegotiation or modification of terms that do not
result in derecognition of the financial liability, is recognised in the Statement of Profit and Loss.

De-recognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the derecognition of the original liability and the recognition of a new liability.
The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there
is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net
basis or realize the asset and settle the liability simultaneously.

Fair Value Measurement

The Company measures certain financial instruments 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. In determining the fair value of its
financial instruments, the Company uses a variety of methods and assumptions that are based on market
conditions and risks existing at each reporting date. The methods used to determine fair value include
discounted cash flow analysis, available quoted market prices and dealer quotes. All methods of assessing
fair value result in general approximation of value.

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 under, 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.

(g) Inventories

Items of inventories are measured at lower of cost and net realisable value after providing for
obsolescence, if any, cost of inventories comprises of cost of purchase, cost of conversion and other costs
including manufacturing overheads net of recoverable taxes incurred in bringing them to their respective
present location and condition.

Net realisable value 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.

The net realisable value of work-in-progress is determined with reference to the selling prices of related
finished goods. Raw materials, components and other supplies held for use in the production of finished
products are not written down below cost except in cases when a decline in the price of materials indicates
that the cost of the finished products shall exceed the net realisable value.

The comparison of cost and net realisable value is made on an item-by-Item basis.

(h) Employee Benefits

Employee benefits consist of provident fund, gratuity fund, compensated absences, other short term
employee benefits.

Post-Employment Benefit Plans
Defined Contribution Plan:

Contribution towards provident fund for eligible employees are accrued in accordance with applicable
statutes and deposited with the regulatory provident fund authorities (Government administered provident
fund scheme). The Company does not carry any other obligation apart from the monthly contribution. The
Company’s contribution is recognized as an expense in the Statement of Profit and Loss during the period
in which the employee renders the related service.

Defined Benefit Plan:

The Company provides for gratuity, a defined benefit plan covering eligible employees in accordance
with the Payment of Gratuity Act, 1972. The cost of providing benefits is actuarially determined using the
projected unit credit method, with actuarial valuations being carried out at each Balance sheet date.

The retirement benefit obligation recognized in the Balance Sheet represents the present value of the
defined benefit obligation as reduced by the fair value of scheme assets. The present value of the said
obligation is determined by discounting the estimated future cash outflows, using market yields of
government bonds of equivalent term and currency to the liability.

The interest income / (expense) are calculated by applying the discount rate to the net defined benefit
liability or asset. The net interest income / (expense) on the net defined benefit liability is recognised in
the Statement of Profit and Loss.

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling (if any), are
recognised immediately in the Balance Sheet with a corresponding charge or credit to retained earnings
through OCI in the period in which they occur. Remeasurements are not reclassified to the Statement of
Profit and Loss in subsequent periods.

Changes in the present value of the defined benefit obligation resulting from plan amendments or
curtailments are recognised immediately in the Statement of Profit and Loss as past service cost.

Long Term Employee Benefits:

The liability in respect of accrued leave benefits which are expected to be availed or en-cashed beyond
12 months from the end of the year, is treated as long term employee benefits. The Company''s liability is
actuarially determined by qualified actuary at Balance Sheet date by using the Projected Unit Credit
method. Actuarial losses/ gains are recognized in the Statement of Profit and Loss in the year in which they
arise.

Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for services
rendered by employees is recognized during the period when the employee renders the services. Short
term employee benefits include salary and wages, bonus, incentive and ex-gratia and also include accrued
leave benefits, which are expected to be availed or en-cashed within 12 months from the end of the year.

(i) Borrowing

Borrowings are initially recognized at fair value, net of transaction costs incurred. Interest bearing loans
are subsequently measured at amortized cost by using the effective interest method (EIR method). Any
difference between the proceeds (net of transaction costs) and the redemption amount is recognized in
profit or loss over the period of borrowing using the effective interest method (EIR). The EIR Amortization is
included as Finance Costs in the Statement of Profit and Loss.

Borrowings are derecognized from the Balance Sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that
has been extinguished or transferred to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognized in profit or loss as other income or other expenses.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting period.

(j) Borrowing Cost

Borrowing costs are interest and ancillary costs incurred in connection with the arrangement of borrowings.
General and specific borrowing costs attributable to acquisition and construction of qualifying assets is
added to the cost of the assets upto the date the asset is ready for its intended use. Capitalisation of
borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods
when active development activity on the qualifying assets is interrupted. All other borrowing costs are
recognised in the Statement of Profit and Loss in the period in which they are incurred. Investment income
earned on the temporary investment of specific borrowing pending their expenditure on qualifying assets
is deducted from the borrowing costs eligible for capitalization.

(k) Foreign Currency Transactions

Items included in the Financial Statements are measured using the currency of the primary economic
environment in which the Company operates (''the functional currency''). The Financial Statements are
presented in Indian rupee (INR), which is the functional and presentation currency of the Company.

Foreign currency transactions are translated into the functional currency using the exchange rates at the
date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions
and from the translation of monetary assets and liabilities denominated in foreign currencies at the year-
end exchange rates are generally recognized in profit or loss. All foreign exchange gains and losses are
presented in the Statement of Profit and Loss on a net basis within other income or other expenses. Non¬
monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions.

(l) Revenue from Operations

Revenue from Contract with Customers

Revenue is recognised upon transfer of control of promised goods to customers in an amount that reflects
the consideration which the Company expects to receive in exchange for those goods. Revenue from the
sale of goods is recognised at the point in time when control is transferred to the customer which is usually
on dispatch / delivery of goods, based on contracts with the customers. Revenue is measured based on the
transaction price, which is the consideration, adjusted for volume discounts, price concessions, incentives, and
returns, if any, as specified in the contracts with the customers. Revenue excludes taxes collected from
customers on behalf of the government. Accruals for discounts/incentives and returns are estimated (using
the most likely method) based on accumulated experience and underlying schemes and agreements with
customers. Due to the short nature of credit period given to customers, there is no financing component in
the contract. Other operating income is accounted on accrual basis as and when the right to receive arises.

Other Income:

Interest income is recognised using effective interest rate (EIR) method. Dividend income is recognized, when
the right to receive the dividend is established by the reporting date. Insurance claims are accounted for
on the basis of claims admitted and to the extent that there is no uncertainty in receiving the claims.

(m) Taxation

Income tax expenses comprises current tax (i.e. amount of tax for the period determined in accordance
with the Income Tax Law) and deferred tax charge or credit (reflecting the tax effects of temporary
differences between accounting income and taxable income for the period). Income tax expenses are
recognized in Statement of Profit and Loss except tax expenses related to items recognized directly in
reserves (including other comprehensive income) which are recognized with the underlying items.

Income Taxes

The income tax expense or credit for the period is the tax payable on the current period''s taxable income
based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted
at the end of the reporting period i.e. as per the provisions of the Income Tax Act, 1961, as amended from
time to time. Management periodically evaluates positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation including amount expected to be
paid/recovered for uncertain tax positions. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.

Advance taxes and provisions for current income taxes are presented in the Balance Sheet after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying
units and where the Company is able to and intends to settle the asset and liability on a net basis. Current
tax assets and tax liabilities are offset where the Company has a legally enforceable right to offset and
intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Deferred Taxes

Deferred tax is provided in full on temporary difference arising between the tax bases of the assets and
liabilities and their carrying amounts in Financial Statements at the reporting date. Deferred tax are

recognised in respect of deductible temporary differences being the difference between taxable income
and accounting income that originate in one period and are capable of reversal in one or more subsequent
periods., the carry forward of unused tax losses and the carry forward of unused tax credits.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially
enacted by the end of the reporting period and are expected to apply when the related deferred income
tax asset is realized or the deferred income tax liability is settled.

Deferred tax assets are recognized for all deductible temporary differences and unused tax losses only if
it is probable that future taxable amounts will be available to utilize those temporary differences and
losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets and liabilities and when the deferred tax balances relate to the same taxation authority.

Any tax credit available is recognized as deferred tax to the extent that it is probable that future taxable
profit will be available against which the unused tax credits can be utilized. The said asset is created by
way of credit to the Statement of Profit and Loss and shown under the head deferred tax asset.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the
deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting
date and are recognized to the extent that it has become probable that future taxable profits will allow
the deferred tax asset to be recovered.

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Mar 31, 2014

1. Basis of Preparation of Financial Statement

The financial statements have been prepared under the historical cost convention method in accordance with the generally accepted accounting principles and the provisions of the Companies act 1956. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in the case of significant uncertainty relating to income.

2. Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

3. Revenue Recognition

Income and expenditure are recognized and accounted on accrual basis, except in case of significant uncertainties.

4. Fixed Assets and Depreciation

Fixed assets are stated at their cost on acquisition less accumulated depreciation. Cost of acquisition is inclusive of freight, duties and other directly attributable cost incurred to bring the assets to their working condition for use.

Depreciation on Fixed Assets is provided on Written Down Value method in accordance with the provisions of the Companies Act, 1956 in the manner and at the rates specified in the Schedule XIV to the said Act, on pro-rata basis.

5. Miscellaneous Expenditure

Preliminary Expenses are written off over a period of ten years.

6. Investment NIL

7. Inventories

NIL- However the closing stock of are valued at Cost or Market Value whichever is lower on FIFO basis.

8. Taxes on Income

a) Current Tax

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date.

9. Segment Reporting

The Company deals in only one reportable segment i.e Infrastructure and hence requirement of Accounting Standard 17 "Segment Reporting" issued by ICAI is not applicable.

10. Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company in respect of MSME (as defined in the Micro Small & Medium Enterprise Development Act, 2006) there are no delays in payment of dues to such enterprises during the year.

As per information available with the Company about suppliers whether they are covered under Micro, Small and Medium Enterprises Act, 2006. As on date, the Company has not received confirmation from any suppliers who have registered under the "Micro, Small and Medium Enterprise Development Act, 2006" and hence no disclosure has been made under the said Act.

11. Provision, Contingent Liabilities and Contingent Assets:-

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized in the books of accounts and disclosed as notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2013

Basis of Preparation of Financial Statement

The financial statementshave been prepared under the historical cost convention method in accordance with the generally accepted accounting principles and the provisions of the Companies act 1956, The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in the case of significant uncertainly relating to income.

Use of Estimates

The preparation of financial statement'', requires management to make estimates and assumption that affect the reported omount of assets and liabilities and disclosure of contigngent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates. Difference between the actual result and estimates are rcognized in the period in which the results are known/ materialised. Any revision to an accounting estimate is recognized prospectively inthe year of revision.

Revenue Recognition

Income and expenditure are recognized and accounted on accrual basis, except in case of significant uncertainties.

Fixed Assets and Depreciation

Fixed assets are stated at their cost on aquisition less accumulated depreciation. Cost of acquisition is inclusive of freight , duties and other directly attributable cost incurred to bring the assets to their working condition for use.

Depreciation on Fixed Assets is provided on Written Down Value method in accordance with the provisions of the Companies Act. 1956 in the manner and at the rates specified in the Schedule XIV to the said Act on pro-rata basis.

Miscellaneous Expenditur

Preliminary Expenses are written off over a period of ten years.

Investment NIL

Inventories

NIL, However the closing stock of are valued at Cost or Market Value whichever is lower on FIFO basis.

Taxes on Income

a) Current Tax

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act. I961.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date.

Segment Reporting

The Company deals in only one reportable segment and hence requirement of Accounting Standard 17 "Segment Reporting" issued by ICA1 is not applicable.

Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company in respect of MSME (as defined in the Micro Small & Medium Enterprise Development Act, 2006) there are no delays in payment of dues to such enterprises during the year.

As per information available with the Company about suppliers whether they are covered under Micro. Small and Medium Enterprises Act, 2006. As on date, the Company has not received confirmation from any suppliers who have registered under the "Micro, Small and Medium Enterprise Development Act, 2006"" and he nee no disclosure has been made under the said Act.

Provision, Contingent Liabilities and Contingent Assets:-

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized in the books of accounts and disclosed as notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2012

Basis of Preparation of Financial Statement

The financial statements have been prepared under the historical cost convention method in accordance with the generally accepted accounting principles and the provisions of the Companies act 1956. The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except in the case of significant uncertainty relating to income.

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of financial statements and reported amount of revenues and expenses for the year. Actual results could differ from these estimates.

Difference between the actual result and estimates are recognized in the period in which the results are known/ materialized. Any revision to an accounting estimate is recognized prospectively in the year of revision.

Revenue Recognition

Income and expenditure are recognized and accounted on accrual basis, except in case of significant uncertainties.

Fixed Assets and Depreciation

Fixed assets are stated at their cost on acquisition less accumulated depreciation. Cost of acquisition is inclusive of freight, duties and other directly attributable cost incurred to bring the assets to their working condition for use.

Depreciation on Fixed Assets is provided on Written Down Value method in accordance with the provisions of the Companies Act, 1956 in the manner and at the rates specified in the Schedule XIV to the said Act, on pro-rata basis.

Miscellaneous Expenditure

Preliminary Expenses are written off over a period of ten years.

Investment NIL

Inventories

NIL, However the closing stock of are valued at Cost or Market Value whichever is lower on FIFO basis.

Taxes on Income

a) Current Tax

The current charge for income tax is calculated in accordance with the relevant provisions as prescribed under the Income Tax Act, 1961.

b) Deferred Tax

Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date.

Segment Reporting

The Company deals in only one reportable segment and hence requirement of Accounting Standard 17 "Segment Reporting" issued by ICAI is not applicable.

Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company in respect of MSME (as defined in the Micro Small & Medium Enterprise Development Act, 2006) there are no delays in payment of dues to such enterprises during the year.

As per information available with the Company about suppliers whether they are covered under Micro, Small and Medium Enterprises Act, 2006. As on date, the Company has not received confirmation from any suppliers who have registered under the "Micro, Small and Medium Enterprise Development Act, 2006" and hence no disclosure has been made under the said Act.

Provision, Contingent Liabilities and Contingent Assets:-

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized in the books of accounts and disclosed as notes to accounts. Contingent assets are neither recognized nor disclosed in the financial statements.