1. Accounting Convention
These financial statements have been prepared under the historical cost
Conventions in accordance with the Accounting Standards issued by the
Institute of Chartered Accountants of India and Provisions of the
Companies Act, 1956 as adopted consistently by the company. The company
follows mercantile system of accounting to recognize all material
revenue and expenses, including provisions/adjustments for committed
obligations and amounts, determined as payable or receivable during the
period under review.
2. Fixed Assets
Fixed Assets are stated at cost of acquisition as reduced by
accumulated depreciation. All costs including financial costs up to the
date of commissioning and attributable to the fixed assets are
capitalized apart from taxes, freight and other incidental expenses
related to the acquisition and installation of the respective fixed
Depreciation on Fixed Assets has been provided on straight-line method,
as per the rates specified under schedules XIV of the Companies Act,
1956. No depreciation has been provided on land. Depreciation provided
on assets acquired during the year has been provided on prorated basis.
4. Valuation of Inventories
a) Stocks of consumables are valued at cost.
b) Project work in progress is valued with reference to the actual cost
incurred for the work performed up to the reporting date bear estimated
total project cost of each project.
5. Revenue recognition
Revenue is recognized on the basis of stage wise completion of the
Expenses are accounted on accrual basis and provisions are made for all
known losses and liabilities.
7. Taxe & on income
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is accounted, by computing
the tax effect on timing differences; being tax difference between
taxable income and accounting income that originate in one period and
are reversible in one or more subsequent periods.
8. Foreign Exchange Transactions
a) Assets and Liabilities denominated in foreign currencies are
translated at the rates prevailing on the date of the Balance Sheet.
Exchange gains/losses on the same are dealt with in the Profit and Loss
b) Expenditure and Income denominated in foreign currencies are
accounted for at the rates prevailing on the date of transaction.
Exchange differences arising on foreign currency transactions are
recognized as income or expense in the period in which they arise.
9. Retirement and other Benefits
a) Contributions to Provident Fund and Family Pension Fund are charged
to the Profit and Loss account as incurred.
b) Post retirement benefit such as gratuity is provided for based on
Valuations, as at the balance sheet date made by independent actuaries.
c) The company does not have a policy for encashment of unavailed
leaves during the tenure of services of employees and such leaves are
enchased only at the time employee leaves the organization and
accordingly leave encashment is accounted in the year of payment.