1.  Nature of Operations
 
 Tantia Constructions Limited (‘The Company'') is one of the most
 experienced civil infrastructure solutions providers in India.
 Incorporated as a private limited Company in 1964 which became public
 limited Company in 1982, the Company is engaged in executing critical
 infrastructure projects. It began operations in the railways segment
 and over the years extended to seven core infrastructure segments of
 railways, roads, urban development, infrastructure and industrial
 fabrication, power, marine and aviation.
 
 2.  Basis of Preparation of Financial Statements
 
 The Financial Statements have been prepared and presented under the
 historical cost convention on the accrual basis of accounting and in
 accordance with Generally Accepted Accounting Principles (Indian GAAP)
 and comply in all material aspect with the applicable accounting
 standards notified under Section 211(3C) of the Companies Act, 1956,
 and the relevant provisions of the Companies Act, 1956 except where
 otherwise stated.
 
 For recognition of Income and Expenses mercantile system of accounting
 is followed except in case of insurance claims where on the ground of
 prudence as well as uncertainty in realisation, the same is accounted
 for as and when accepted/received.
 
 The accounting policies have been consistently applied by the Company
 except for the changes mentioned in Para 4.
 
 3.  Use of Estimates:
 
 The preparation of financial statements in conformity with the
 Generally Accepted Accounting Principles requires estimates and
 assumptions to be made that affect reported amount of assets and
 liabilities and disclosure of contingent liabilities on the date of
 financial statements and the reported amount of revenues and expenses
 during the reporting period. Difference between the actual results and
 estimates are recognised in the period in which the results are known.
 
 4.  Change in Accounting Policies:
 
 a) During the year the Company has capitalised the cost of Construction
 Accessories which will be depreciated on straight line method over a
 period of five years (being the useful life as estimated by the
 management). Previously such accessories were charged to revenue as
 consumption. However, the impact of the above change on Company''s
 profit is not ascertainable.
 
 b) During the year the Company has deferred the site establishment
 expenses i.e. the initial cost it has incurred on setting up the basic
 infrastructure required to execute the new projects and the same is
 amortised over the useful life of the projects.  Previously such costs
 were charged to revenue. However, due to this change the profit of the
 Company has gone up by Rs. 33,453 thousands.
 
 c) During the year, Company has credited revenue as billed amount net
 of retention money because the retention money does not arise or accrue
 in the year in which the job is executed but at a later date depending
 on the satisfactory completion of the contract. Due to this change
 there is an impact of reduction of income by Rs. 70,791 thousands.
 
 5.  Inventories
 
 a) Stock of raw materials, stores and spares and fuel (except for those
 relating to Construction activities) are valued at cost (weighted
 average basis) or net realisable value whichever is lower.
 
 b) Cost of Raw materials, stores, spares and fuel used in construction
 activities are valued at cost (weighted average basis).
 
 c) Work-in-progress is valued at cost and reflects the work done but
 not certified.
 
 d) The cost of inventories comprises all cost of purchase, cost of
 conversion and other incidental cost incurred in bringing the
 inventories to their present location and condition.
 
 e) Net realisable value is the estimated selling price in the ordinary
 course of business less the estimated cost of completion and estimated
 cost necessary to make the sale.
 
 6.  Fixed Assets
 
 Fixed Assets are stated at cost of acquisition inclusive of duties (net
 of VAT where input credit is availed) together with any incidental
 costs for bringing the asset to its working condition for its intended
 use less accumulated depreciation and impairment losses, if any.
 
 Capital work in progress is stated at amounts spent up to the date of
 the Balance Sheet.
 
 Intangible assets comprise of License fees and other implementation
 cost of software (SAP) acquired for in-house use and is net of
 amortisation.
 
 7.  Depreciation / amortisation
 
 Depreciation on fixed assets acquired upto the year ended on Diwali
 2040 S.Y. (Corresponding to 3rd November, 1983) is provided by applying
 the rates specified in Schedule-XIV of the Companies Act 1956 and
 calculated on written down value method.
 
 In respect of the assets acquired thereafter, other than Construction
 Accessories and Intangible Asset''s depreciation is charged on the
 straight line method at the rates prescribed in Schedule-XIV of the
 Companies'' Act, 1956. Construction Accessories are depreciated over a
 period of five years on straight line method from the year of addition.
 
 Intangible Assets are amortised over the best estimates of its useful
 life.
 
 8.  Impairment of Assets
 
 On annual basis the Company makes an assessment of any indicator that
 may lead to impairment of assets. An asset is treated as impaired when
 the carrying cost of the asset exceeds the recoverable value. If any
 indication of such impairment exists, the reasonable amounts of those
 assets are estimated and impairment loss is recognised. The impairment
 loss recognised in prior accounting period is adjusted if there has
 been a change in the estimate of recoverable amount.
 
 9.  Revenue Recognition
 
 On Construction Contracts:
 
 - The 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 completion method.
 
 - The stage of completion of contracts is measured by reference to the
 proportion that the contract costs incurred for work performed upto the
 reporting date bear to the estimated total contract costs for each
 contract.
 
 - Losses on contracts are fully accounted for as an expense immediately
 when it is certain that the total contract costs will exceed the total
 contract price. Total contract cost are ascertained on the basis of
 actual cost and cost to be incurred for the completion of contracts in
 progress which is determined by the management based on technical data,
 forecast and estimates of expenditure to be incurred in future.
 
 - Price escalation claims and other additional claims are recognised as
 revenue when:
 
 i.  They are realised or receipts thereof are mutually settled or
 reasonably ascertained.
 
 ii.  Negotiations with the client have reached such an advanced stage
 that there is reasonable certainty that the client will accept the
 claim.
 
 iii. Amount that is probable, if accepted by the client, to be measured
 reliably by the Company.
 
 On Sale of Goods:
 
 - In case of sale of goods, the transfer of property in goods results
 in the transfer of significant risks and rewards of ownership to the
 buyer and revenue is recognised at the time of transfer of property.
 
 10. Foreign Currency Transactions
 
 Transactions in foreign currency are recorded using the exchange rate
 prevailing at the date of transactions. Monetary assets and liabilities
 related to foreign currency transactions unsettled at the end of the
 year are translated at year end rate. All other foreign currency assets
 and liabilities are stated at the rates prevailing at the date of
 transaction other than those covered by forward contracts, which are
 stated at the contracted rate. Exchange differences arising on foreign
 currency transactions are recognised in the Profit & Loss Account.
 
 11. Investment
 
 Long-term investments are stated at cost, provision is made to
 recognise a decline, if any, other than temporary, in the value of long
 term investments. Investments in Joint Ventures are stated at cost.
 
 Current investments being readily realisable and intended to be held
 for less than a year are carried at cost or market rate whichever is
 lower, on individual investment basis.
 
 12. Employee Benefit (Retirement and Post Employment Benefit)
 
 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 (AS) – 15 “Employee
 Benefits” notified by Companies (Accounting Standard) Rules, 2006.
 
 I.  Gratuity
 
 Liability on account of Gratuity is:
 
 - Covered through recognised gratuity fund managed by Life Insurance
 Corporation of India and contributions are charged to revenue; and
 
 - Balance if any, is provided on the basis of valuation of the
 liability by an independent actuary as at the year end.
 
 II.  Provident Fund, ESI and Medical
 
 Contribution to provident fund (defined contribution plan) and ESI made
 to government administered Provident Fund and ESI are recognised as
 expenses. The Company has no further obligation beyond its monthly
 contribution. Those employees who are not covered under ESI scheme (as
 stated in the Act) get medical re-imbursement as per the HR policy of
 the Company.
 
 III.  Leave Encashment
 
 Liability for leave encashment is treated as a long term liability and
 is provided on the basis of valuation by an independent actuary as at
 the year end.
 
 13. Borrowing Costs
 
 Borrowing costs that are attributable to the acquisition or
 construction of qualifying assets are capitalised as part of the cost
 of such assets. A qualifying asset is one that necessarily takes
 substantial period of time to get ready for intended use. All other
 borrowing costs are charged to Profit and Loss account.
 
 14. Earnings Per Share
 
 The Company reports basic and diluted earnings per share in accordance
 with Accounting Standard (AS) - 20, “EPS” notified by Companies
 (Accounting Standards) Rules, 2006. Basic earnings per equity share is
 computed by dividing the net profit for the year attributable to the
 equity share holders by the weighted average number of the equity
 shares outstanding during the year. Diluted earnings per share is
 computed by dividing the net profit during the year, adjusted for the
 effects of dilutive potential equity share, attributable to the equity
 share holders by the weighted average number of the equity shares and
 dilutive equity potential equity shares outstanding during the year
 except where the results are anti dilutive.
 
 15. Taxation
 
 Tax expenses comprise of current tax and deferred tax.
 
 Current tax is determined in respect of taxable income for the year
 based on Income Tax Act 1961. Deferred tax is recognised, subject to
 consideration of prudence, on timing difference (being the difference
 between taxable income and accounting income that originates in one
 period and are capable of being reversed in one or more subsequent
 years) and is measured using tax rates and laws that have been enacted
 or substantively enacted by the Balance Sheet date. Deferred tax assets
 are reviewed at each Balance Sheet date and are recognised only if
 there is reasonable certainty that they will be realised.
 
 16. Accounting of Joint Venture contracts
 
 a) In respect of its interest in Jointly Controlled Operations, the
 Company recognise the asset that it controls and the liability that in
 incurs along with the expenses that it incurs and the income it earns
 from the Joint Venture in accordance with Accounting Standards (AS) 27.
 
 b) In respect of its interest in Jointly Controlled Entity, the same is
 recognised as an Investment in accordance with Accounting Standard (AS)
 13, Accounting for Investment.
 
 17. Provision, Contingent Liabilities & Contingent assets
 
 Provisions involving substantial degree of estimation in measurement
 are recognised 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 recognised but are disclosed in the
 Notes to Accounts. Disputed demands in respect of Income Tax and Sales
 Tax etc are disclosed as contingent liability. Payments in respect of
 such demands, if any, are shown as advance, till the final outcome.
 
 Contingent Assets are neither recognised nor disclosed in the financial
 statements.