1 Basis of accounting
The financial statements have been prepared to comply with the
requirements of the Companies Act, 1956, under the historical cost
convention on the accrual basis of accounting and in accordance with
the standards on accounting issued by the Institute of Chartered
Accountants of India referred to in section 211(3C) of the Companies
Act, 1956 as notified by Companies (Accounting Standard) Rules, 2006.
2 Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting policies requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statement and the reported accounts of revenues and expenses
for the years presented.
3 Revenue recognition
Income from construction contracts is recognized by reference to the
stage of completion of the contract activity as certified by the
4 Employee benefit
a) Contribution to Provident Fund, Family Pension and ESI Scheme are
accounted for on actual payment basis and is charged to profit and loss
account of the year. The eligible employees of the company are entitled
to receive benefits under Provident Fund, a defined contribution plan
in which both employees and the company makes monthly contributions at
a specified percentage of the covered employees salary, to the
provident fund/ESI authorities.
b) Liability on account of leave encashment and gratuity is provided on
the basis of Actuarial Certificate as prescribed by Accounting Standard
15 Employee Benefits.
Long term investments are stated at cost. No provision is made for
diminution in their value.
All inventories consisting of Work in Progress (Contract), Materials
and stores in hand has been valued at cost as certified by the
7 Fixed assets.
Fixed Assets has been stated at cost less accumulated depreciation.
Cost includes purchase price and all other attributable cost of
bringing the assets to working condition for intended use.
Depreciation is provided on straight line method as per rates specified
in Schedule XIV to the Companies Act, 1956 except Depreciation on
Shuttering Material which has been charged on the basis of useful life
estimated of 4 year by the Management taking into account 20% scrap
value at the end of the useful life.
9 Contingent liabilities
Contingent Liabilities not admitted by the company are not provided for
in the accounts but are disclosed by way of Notes to Accounts.
Income Tax comprises Current Tax and Deferred Tax. Deferred tax assets
and liabilities are recognized for the future tax consequences of
timing differences subject to consideration of prudence. Deferred tax
assets and liabilities are measured using the tax rates enacted or
substantively enacted by the balance sheet date.
11 Earning per share
The earnings considered in ascertaining company''s EPS comprises the
net profit after tax. The number of shares used in computing basic EPS
is the weighted average number of shares outstanding during the year.
12 Borrowing cost
Borrowing costs that are directly attributable to the acquisition or
construction of a qualifying asset are considered as part of the cost
of that asset. Other borrowing costs are recognized as an expense in
the year in which they are incurred.
13 Impairment of assets
Pursuant to Accounting Standard (AS-28) on - Impairment of assets
issued by the Institute of Chartered Accountant of India, the company
assessed its fixed assets for impairment as at the year end and
concluded that there has been no significant impaired fixed assets that
needs to be recognized in the books of accounts.
14 Insurance claims lodged / Receivable with insurance companies have
been accounted for in the books at the value estimated by the