Company overview
 
 The Company, IVRCL Limited, is engaged in the business of development
 and execution of Engineering, Procurement, Construction and
 Commissioning (EPCC) and Lump Sum Turn Key (LSTK) facilities in various
 Infrastructure projects like Water Supply, Roads and Bridges, Townships
 and Industrial Structures, Power Transmission, etc. for Central/State
 Governments, other local bodies and private sector in the country.
 
 A.  Accounting policies
 
 1.  Method of Accounting
 
 The financial statements are prepared under the historical cost
 convention on an accrual basis (except for revaluation of certain Fixed
 Assets) in accordance with Generally Accepted Accounting Principles
 (Indian GAAP) and Accounting Standards notified in the Companies
 (Accounting Standards) Rules, 2006 and relevant provisions of the
 Companies Act, 1956.
 
 2.  UJse of Accounting Estimate*
 
 The preparation of the financial statements in conformity with Indian
 GAAP requires management to make estimates and assumptions that affect
 the balances of assets and liabilities and disclosures relating to
 contingent liabilities as at the reporting date of the financial
 statements and amounts of income and expenses during the year of
 account. Examples of such estimates include contract costs expected to
 be incurred to complete construction contracts, provision for doubtful
 debts, income taxes and future obligations under employee retirement
 benefit plans. Management periodically assesses whether there is an
 indication that an asset may be impaired and makes provision in the
 accounts for any impairment losses estimated. Contingencies are
 recorded when it is probable that a liability will be incurred, and the
 amount can be reasonably estimated. Actual results could differ from
 those estimates.
 
 3.  Recognition of contract revenue and expense*
 
 3.1 Contract Revenue is recognised by reference to the stage of
 completion of the contract activity at the reporting date of the
 financial statements on the basis of percentage of completion method.
 
 3.2 The stage of completion of contracts is measured by reference to
 the proportion that contract costs incurred for work performed up to
 the reporting date bear to the estimated total contract costs for each
 contract.
 
 3.3 An expected loss on construction contract is recognised as an
 expense immediately when it is certain that the total contract costs
 will exceed the total contract revenue.
 
 3.4 Price escalation and other claims and /or variation in the contract
 work are included in contract revenue only when:
 
 (a) Negotiations have reached at an advanced stage such that it is
 probable that customer will accept the claim; and
 
 (b) The amount that is probable will be accepted by the customer can be
 measured reliably.
 
 3.5 Incentive payments, as per customerspecified performance standards,
 are included in contract revenue only when:
 
 (a) The contract is sufficiently advanced that it is probable that the
 specified performance standards will be met; and
 
 (b) The amount of the incentive payment can be measured reliably.
 
 4.  Revenue from Joint Venture contracts
 
 4.1 In work sharing joint Venture arrangements, revenues, expenses,
 assets and liabilities are accounted for in the Company''s books to the
 extent work is executed by the Company.
 
 4.2 In jointly Controlled Entities, the share of profits or losses are
 accounted as and when dividend / share of profit or loss are declared
 by the entities.
 
 5.  Revenue from sale of goods
 
 Revenue from sale of goods is recognized when substantial risks and
 rewards of ownership are transferred to the buyer under terms of the
 contract.
 
 6.  Employee Benefits
 
 Liability for employee benefits, both short and long term, for present
 and past services which are due as per the terms of employment are
 recorded in accordance with Accounting Standard 15 (Revised) Employee
 Benefits notified in the Companies (Accounting Standards) Rules, 2006.
 
 6.1 Gratuity
 
 The Company has an obligation towards gratuity, a defined benefit
 retirement plan covering eligible employees.  The plan provides for a
 lump sum payment to vested employees on retirement, death while in
 employment or on termination of employment in an amount equivalent to
 15 days salary payable for each completed year of service.  Vesting
 occurs upon completion of five years of service. Contributions to
 Gratuity fund are made to recognized funds managed by the Life
 Insurance Corporation of India. The Company accounts for the liability
 for future gratuity benefits on the basis of an independent actuarial
 valuation.
 
 6.2 Compensated Absences
 
 Liability for compensated absence is treated as other long term
 liability, short term portion of the liability is provided on an actual
 basis and long term portion of the liability is provided on the basis
 of valuation by an independent actuary at the year end.
 
 6.3 Superannuation
 
 The Company has a superannuation plan, which is a defined contribution
 plan. UJnder the plan, the Company contributes up to 15% of the
 eligible employees'' salary to the fund each year. Contributions are
 made to recognized funds managed by the Life Insurance Corporation of
 India. The Company recognizes such contributions as an expense when
 incurred. The Company has no further obligation beyond this
 contribution.
 
 6.4 Provident Fund
 
 In accordance with applicable local laws, eligible employees of the
 Company are entitled to receive benefits under the provident fund, a
 defined contribution plan to which both the employee and employer
 contributes monthly at a determined rate (currently up to 12% of an
 employee''s basic salary). These contributions are either made to the
 respective Regional Provident Fund Commissioner, or the Central
 Provident Fund under the state pension scheme, and are expensed as
 incurred.
 
 7.  Fixed Assets
 
 Fixed Assets are stated at cost/valuation less accumulated depreciation
 and amortisation. Direct costs inclusive of inward freight,
 nonclaimable duties and taxes, incidental expenses including interest
 relating to acquisition and cost of improvements thereon are
 capitalised until fixed assets are ready for use. Capital Work in
 Progress comprises advances paid to acquire fixed assets and the cost
 of fixed assets not ready for their intended use as at the reporting
 date of the financial statements.
 
 8.  Depreciation and amortisation
 
 8.1 Depreciation on fixed assets is provided on the straightline method
 as per rates prescribed in Schedule XIV to the Companies Act, 1956
 except the following which are depreciated based on useful life
 determined by the Company.
 
 Steel Shuttering 10%
 
 Wood Shuttering 33 1/3%
 
 8.2 Pucca sheds and lamd acquired for quarryimg are amortised over the
 period of the project or* project to project basis.
 
 9.  Impairment of assets
 
 The Compaq assesses at each balance sheet date whether there is amy
 indicator* that am asset may be impaired.  If amy such indication
 exists, the Company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the asset belongs is less than its
 carrying amount, the same is reduced to its recoverable amount and the
 reduction is treated as an impairment loss and is recognised in the
 profit and loss account. If at the balance sheet date there is an
 indication that a previously assessed impairment loss no longer exists,
 the recoverable amount is assessed and the asset is reflected at the
 recoverable amount subject to a maximum of depreciated historical cost
 and is accordingly reversed in the profit and loss account.
 
 10.  Foreign currency transactions and foreign operations
 
 Foreign currency denominated monetary assets and liabilities are
 translated at the exchange rate prevailing on the Balance Sheet date.
 Gains/Losses arising out of fluctuations in the exchange rates are
 recognised in Profit and Loss Account in the period in which they
 arise.
 
 Foreign branches are classified as nonintegral foreign operations. The
 Assets and Liabilities, both monetary and nonmonetary of the branch are
 translated at the exchange rate prevailing at the balance sheet date.
 Income and expenses are translated at monthly average exchange rate.
 All resulting exchange differences are accumulated in ''Foreign Currency
 Translation Reserve'' account.
 
 11.  Derivative Instruments
 
 In order to hedge its exposure to foreign exchange interest rate and
 commodity price risks, the Company enters into forward option, swap
 contracts and other derivative financial instruments.
 
 Derivative financial instruments that do not qualify for hedge
 accounting are marked to market at the balance sheet date and gains or
 losses are recognised in the profit and loss account immediately. Hedge
 accounting is discontinued when the hedging instrument expires or is
 sold, terminated or exercised, or no longer qualifies for hedge
 accounting.
 
 12.  Investments
 
 Current investments are carried at lower of cost and fair value. Long
 term investments are carried at cost less provision for permanent
 diminution in value of such investments. Dividend Income is accounted
 when the right to receive dividend is established.
 
 13.  Inventories
 
 Inventories are valued at cost. Cost is determined on firstinfirstout
 method. Inventory of manufactured goods and raw materials are valued at
 lower of cost and net realisable value. Cost of manufactured goods
 includes related overheads and excise duty paid/payable on such goods.
 
 14.  Borrowing costs
 
 Borrowing costs that are attributable to the acquisition and
 construction of qualifying assets are capitalised as part of cost of
 such assets till such time the asset is ready for its intended use. A
 qualifying asset is one that requires substantial period of time to get
 ready for its intended use. All other borrowing costs are charged to
 the Profit and Loss Account as period costs.
 
 15.  Provisions and Contingencies
 
 Provisions involving substantial degree of estimation in measurement
 are recognised when there is a present obligation as a result of past
 events and if it is probable that these liabilities can be properly
 estimated. Contingent liabilities are not recognized but are disclosed
 in the notes where, substantial estimation is dependent on the
 happening of another event which cannot be adequately judged.
 
 16.  Income tax
 
 Current tax it determined as the amount of tax payable in respect of
 taxable income for the year. A provision it made for income tax anally
 based on the tax liability computed, after considering tax allowances
 and exemptions.  Provisions are recorded when it is estimated that a
 liability due to disallowances or other matters are probable.
 
 Deferred tax assets and liabilities are recognised, subject to
 prudence, on timing 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 and quantified
 using the tax rates and laws enacted or substantively enacted by the
 reporting date. Deferred tax assets are recognised only if there is
 reasonable certainty that they will be realised and are reviewed for
 the appropriateness of their respective carrying values at each balance
 sheet date.
 
 17.  Earnings Per Share (EPS)
 
 In arriving at the EPS, the Company''s net profit after tax, computed in
 terms of the Indian GAAP, is divided by the weighted average number of
 equity shares outstanding on the last day of the reporting period. The
 EPS thus arrived at is known as ''Basic EPS''. To arrive at the diluted
 EPS the net profit after tax, referred above, is divided by the
 weighted average number of equity shares, as computed above and the
 weighted average number of equity shares that could have been issued on
 conversion of shares having potential dilutive effect subject to the
 terms of issue of those potential shares. The date''s of issue of such
 potential shares determine the amount of the weighted average number of
 potential equity shares.