I.  Nature of Operations
 
 ITD Cementation India Limited (''ITD Cem'' or ''the Company'') was
 incorporated in 1978 and is engaged in construction of a wide variety
 of structures like maritime structures, mass rapid transport systems
 (MRTS), dams & tunnels, airports, highways, bridges & flyovers and
 other foundations and specialist engineering work.  The activities of
 the Company comprise only one business segment viz Construction.
 
 a) Terms/rights attached to equity shares
 
 The Company has only one class of equity shares having at par value of
 Rs.10 per share. Each holder of equity shares is entitled to one vote
 per share. The Company declares and pays dividends in Indian Rupees.
 The dividend proposed by the Board of Directors is subject to the
 approval of the shareholders in the ensuing Annual General Meeting,
 except interim dividend.
 
 During the year, the amount of per share dividend recognised as
 distributions to equity share holders was Rs.2.00 (31 December 2011 :
 Rs.2.00)
 
 In the event of liquidation of the Company, the holders of equity
 shares will be entitled to receive remaining assets of the Company,
 after distribution of all preferential amounts, if any. The
 distribution will be in proportion to the number of equity shares held
 by the shareholders.
 
 b) Aggregate number of bonus shares issued, shares issued for
 consideration other than cash and shares bought back during the period
 of five years immediately preceeding 31 December 2012
 
 The Company has not issued any bonus shares nor has there been any buy
 back of shares during five years immediately preceeding 31 December
 2012.
 
 c) Out of the total issued capital, 2,526 (31 December 2011 : 2,526)
 equity shares of Rs.10 each have been kept in abeyance pending final
 settlement of rights issues.
 
 Plant loan from financial institution (Secured)
 
 Loan obtained from Tata Capital Limited for purchase of vehicles and
 construction equipment which carries interest rate ranging between
 12.75 to 13.75 percent per annum and are repayble in 36 to 60 monthly
 installments. These loans are secured by first and exclusive charge on
 vehicles and specific equipment financed by the Institution.  Vehicle
 loan from bank (Secured)
 
 Loan obtained from HDFC Bank for purchase of vehicles which carries
 interest rate 12 percent approx per annum and are repayble in 60
 monthly installments. These loans are secured by hypothecation of the
 vehicle purchased out of this loan.
 
 Term loan - from bank (Unsecured)
 
 Term loan obtained from Vijaya Bank carries interest rate of base rate
 plus 2.50 percent per annum. These loans are repayable in six equal
 monthly installments commencing from January 2013.
 
 Term loan - from financial institution (Unsecured)
 
 Term loan obtained from SREI Equipment Finance Private Limited carries
 interest rate of 11.56 percent per annum. These loans are repayable in
 29 monthly installments commencing from September 15, 2012.
 
 The information on the allocation of the gratuity fund into major asset
 classes and the expected return on each major class is not readily
 available. However, the gratuity fund is invested in a Group Gratuity
 policy invested with the Life Insurance Corporation and Birla Sunlife
 Insurance. The fair value of plan assets with Life Insurance
 Corporation and Birla Sunlife Insurance at 31 December 2012 areRs.0.13
 lakhs (31 December 2011 :Rs.0.06 lakhs) and Rs.1,216.71 lakhs (31
 December 2011 :Rs.1,081.08 lakhs) respectively. The management
 understands that the assets in these portfolios are well diversified
 and as such the long term return thereon is expected to be higher than
 the rate of return on Government Bonds.
 
 The overall expected rate of return on assets is determined based on
 the market prices prevailing on that date, applicable to the period
 over which the obligation is to be settled.
 
 The estimates of future salary increases, considered in actuarial
 valuation take account of inflation, seniority, promotion and other
 relevant factors such as supply and demand in the employment market.
 
 In respect of provident funds, the Guidance issued by the Accounting
 Standards Board (''ASB'') of ICAI on implementing AS 15 states that
 provident funds trust is set up by employers, which requires interest
 shortfall to be met by the employer, needs to be treated as a defined
 benefit plan. The Company''s provident fund does not have any existing
 deficit or interest shortfall. In regard to any future obligation
 arising due to interest shortfall (i.e. government interest to be paid
 on provident fund scheme exceeds rate of interest earned on
 investment), pending the issuance of the Guidance Note from the
 Actuarial Society of India, the Company''s actuary has expressed his
 inability to reliably measure the same.
 
 The Company''s expense for the superannuation, a defined contribution
 plan aggregates Rs.287.24 lakhs during the year ended 31 December 2012
 (31 December 2011 :Rs.233.43 lakhs)
 
 The Company''s expense for the provident fund aggregates Rs.687.17 lakhs
 during the year ended 31 December 2012 (31 December 2011 :Rs.593.95
 lakhs)
 
 1 Segment reporting
 
 The activities of the Company comprises of only one business segment
 viz Construction. The Company operates in only one geographical segment
 viz India. Hence the Company''s financial statements also represents the
 segmental information.
 
 2 Related Party Disclosures :
 
 a) Names of related parties and description of relationship A
 Enterprise where control exists 
 
 i) Holding Company
 
 Italian-Thai Development Public Company Limited
 
 ii) Subsidiary Company
 
 ITD Cementation Projects India Limited
 
 B Other related parties
 
 i) Associate
 
 AVR Infra Private Limited
 
 ii) Joint Ventures (unincorporated)
 
 ITD Cemindia JV
 
 ITD - ITD Cem JV
 
 ITD - ITDCem JV (Consortium of ITD - ITD Cementation)
 
 iii)    Key management personnel (KMP)
 
 Mr. Adun Saraban - Managing Director
 
 Mr. S. Ramnath - Chief Financial Officer
 
 Mr. P. B. Patwardhan - Chief Financial Officer (resigned on 30 April
 2011)
 
 3 Trade receivables at 31 December 2012 include variation claims
 recognised by the Company aggregating Rs.3,278 lakhs (31 December 2011
 : Rs.3,455 lakhs) which are disputed by the customer. Out of this
 claims amounting to Rs.2,346 lakhs (31 December 2011 : Rs.2,346 lakhs)
 are a subject matter of arbitration. The Company has received
 arbitration award in its favour in respect of the balance amount
 ofRs.932 lakhs (31 December 2011 : Rs.1,109 lakhs) which have since
 been challenged by the customer. Considering the legal opinion from
 Company''s counsel in the matter, the management is reasonably confident
 of recovery of these amounts.
 
 4 Trade receivables as at 31 December 2012 include Rs. 3,384 lakhs (31
 December 2011 : Rs.3,384 lakhs) representing interim work bills for
 work carried out by the Company which have not been certified by
 customers beyond normal periods of certification.  The management is
 reasonably confident of the certification and recovery of the same
 progressively on these contracts based on past experience of the
 Company, assessment of work done and the fact that these amounts are
 not disputed by the customer and based on the legal opinion received on
 this matter.
 
 5 Trade receivables at 31 December 2012 include Rs.1,140 lakhs (31
 December 2011 : Rs.1,140 lakhs) relating to price escalation claims
 which are disputed by the customer. The Company has received favourable
 verdict from Dispute Redressal Board and also thereafter in Arbitration
 in respect of these claims. The Customer has appealed against the
 Arbitration Award. Management is reasonably confident of recovery of
 this amount based on the above and independent legal opinion from
 eminent legal counsel in the matter.
 
 6 Trade receivables at 31 December 2012 include variation claims of
 Rs.309 lakhs (31 December 2011 : Rs.309 lakhs) for which the Company
 had received an arbitration award in its favour which has subsequently
 been upheld by the District Court. The customer has challenged this
 Court Order. However, based on the above arbitration award, Court Order
 and legal opinion, management is reasonably confident of recovery of
 these amounts.
 
 7 Trade receivables and Unbilled work-in-progress at 31 December 2012
 include Rs.616 lakhs (31 December 2011 : Nil ) and Rs.2,757 lakhs (31
 December 2011 : Rs.2,757 lakhs), in respect of a contract which has
 been rescinded by the Company and Rs.5,929 lakhs (31 December 2011 :
 Rs.5,929 lakhs) in respect of another contract where the Company has
 received a notice from the customer withdrawing from the Company the
 balance works to be executed under the contract; besides the Company
 has also issued guarantees aggregating Rs.2,227 lakhs (31 December 2011
 : Rs.2,227 lakhs). The Company has made claims against the customer to
 recover these amounts and has initiated legal action. Based upon legal
 opinion received, management is reasonably confident of recovery of
 these amounts of work in progress and consequently no changes have been
 made to the values and classification of these amounts in the financial
 statements.
 
 8 Trade receivables and Unbilled work in progress as at 31 December
 2012 includes Rs.1,004 lakhs and Rs.17,222 lakhs, respectively in
 respect of certain road contracts which are currently being executed by
 the Company. The customer has already granted two extensions of time
 and the Company''s request for further extension is under consideration.
 These projects are yet to be taken over by the customer. The Company
 has made claims on the customer for recovery of these amounts.
 Considering the contractual tenability and legal opinion obtained, the
 management is reasonably confident of recovery of these amounts.
 
 9 Micro, Small and Medium Enterprises
 
 There are no Micro, Small and Medium Enterprises, to whom the Company
 owes dues, which are outstanding for more than 45 days as at December
 31, 2012. This information as required to be disclosed under the Micro,
 Small and Medium Enterprises Development Act, 2006, has been determined
 to the extent such parties have been identified on the basis of
 information available with the Company. This has been relied upon by
 the statutory auditors.
 
 10 Operating lease
 
 a) The Company has taken various residential/commercial premises and
 construction equipment on cancellable operating lease. These lease
 agreements are normally renewed on expiry. Rental expenses in the
 statement of profit and loss for the year includes lease payments
 towards premises Rs.1,765.63 lakhs (31 December 2011 -Rs.1,596.14
 lakhs). Plant hire expense relates to the lease payment for
 construction equipments.
 
 b) The Company, in addition to above, has taken construction equipments
 on leases (non-cancellable operating leases). The future minimum lease
 payments in respect of which as at 31 December 2012 are as follows:
 
 These leases have no escalation clauses.
 
 Rental expenses in the statement of profit and loss for the year
 includes Rs.129.09 lakhs (31 December 2011 : Rs.499.09 lakhs) towards
 such non-cancellable leases.
 
 c) General descriptions of non-cancellable lease terms :
 
 Lease rentals are charged on the basis of agreed terms.
 
 Assets are taken on lease over a period of 3-5 years.
 
 The Company did not sublease any of its assets and hence did not
 receive any sub lease payments during the current or previous year.
 
 11 The Company has changed the basis of measurement of percentage of
 completion from ''physical proportion of the contract work'' to
 ''proportion of contract costs incurred for the work performed to date
 to the estimated total contract costs''. Consequent to the change in
 method, turnover is lower by Rs.713 lakhs and profit before tax is
 higher by Rs.80 lakhs for the year ended 31 December 2012.
 
 12 Further in respect of existing contracts, the Company has adopted a
 policy of recording trade receivables only to the extent these are
 certified by the customer. Consequent to this change, uncertified
 receivables as of December 31, 2011 amounting toRs.25,391 lakhs have
 been reclassified from trade receivables to unbilled work in progress
 with respect to running contracts.
 
 13 During the year cheque was stolen and fraudulently encashed from
 Company''s bank account for a sum of Rs.54.24 lakhs and the same was
 subsequently recovered by the Company. Investigation to apprehend the
 culprits involved in the incident is in process.
 
 14 Prior year comparatives
 
 The financial statements for the year ended 31 December 2011 has been
 prepared as per the then applicable, pre-revised Schedule VI to the
 Companies Act, 1956. Consequent to the notification of Revised Schedule
 VI under the Companies Act, 1956, the financial statements for the year
 ended 31 December 2012 are prepared as per Revised Schedule VI.
 Accordingly, the previous year figures have also been reclassified to
 conform to this year''s classification.