1. Others include Rs. 25,519.10lakhs (31.03.2015 Rs. 27,639.92 lakhs) retention money
which are recoverable on completion of the project as per the terms of the relevant contract. The retention
money Rs. 5,305.99 lakhs (31.03.2015 Rs. 3,623.29 lakhs) are recoverable within the
operating cycle of the Company but due after a period of one year
2. Others also include retention money recoverable amounting to Rs 1,928.53 lakhs
which are not due as per the terms of relevant contract and have been collected against submission
of Bank guarantee. Corresponding liability is disclosed as ‘Advance received from customers under
i) Consumption figures disclosed above are inclusive of adjustments for excess or shortage found
during physical verification, write off of unserviceable items etc.
ii) Consumption of steel disclosed above is net of credit against sale of scrap of Rs. 618.69
lakhs (Previous year: Rs.709.45 lakhs)
3. The Company has incurred loss of Rs. 467.36 lakhs during the year ended March 31,2016(Previous year:
Loss of Rs 8,735.12 lakhs) and the accumulated losses as of the balance sheet date amounting to Rs. 17,407.58
lakhs has eroded the net worth of the Company. The Company expects to generate cash flows from liquidating
retention moneys relating to contracts that are in advanced stage of completion and expected dividend
remittances from its wholly owned subsidiaries, which will be sufficient to meet future obligations of the
Company in the next twelve months from the balance sheet date. Accordingly, the financial statements have
been prepared on a going concern basis.
4.The Board of Directors based on the audited accounts for the year ended March 31, 2015 have concluded
that the company is a Sick Company within the meaning of Section 3 (1) (o) of the Sick Industrial Companies
(special Provision) Act, 1985 (SICA). The Board of Directors has made a reference under section 15 of SICA to
the Board for Industrial and Financial Reconstruction (BIFR).The company has during the year filed a
rehabilitation scheme with BIFR.
5.The management had re-estimated the useful life of the fixed assets and aligned the useful life with
that indicated in Part C of Schedule II to the 2013 Act at the commencement of financial year 2014-15. During
the process the Company has also reclassified certain assets the effect of which has been reflected in Other
reclassification line in Note 11.
6. No provision has been made for liquidated damages and other claims by certain customers, wherever
these have been refuted by the Company and the management expects to settle them without any loss. Pending
settlement of these claims, they have been disclosed under contingent liabilities as Claims against the
Company not acknowledged as debt. [Refer Note 27.01.(e)]. The related sundry debtors balances have been
considered in the financial statements as fully recoverable.
7. Scrap and off-cuts generated at the contract sites are being accounted on cash basis, since
segregation and quantification of such items at the financial yearend are not practicable in view of the
contracts being in progress.
8. Revision in projected profit/(loss) on contracts arising from change in estimates of cost to
completion of contracts are reflected during the course of the work in each accounting year. These have not
been disclosed separately in the Financial Statements as the effect cannot be accurately determined.
9.The amortized portion of foreign exchange loss (net) incurred on long term foreign
currency monetary items for the current year ended March 31,2016 is Rs. 141.01 lakhs (31.03.2015 Rs. 254.58
lakhs) The unamortized portion carried forward as on 31st March, 2016 is Rs. 127.83 lakhs (31.03.2015 : Rs.
10. Segment Reporting
The Company has identified the business segments as primary segment for the purpose of reporting under
Accounting Standards (AS) 17 - Segment Reporting . Revenues and expenses directly attributable to business
segments are reported under the respective segments. Expenses which are not directly identifiable to each of
the business segments have been allocated on the basis of associated revenues and manpower efforts. All other
expenses which are not attributable or allocable to business segments have been disclosed as unallocable
expenses. Assets and liabilities that are directly attributable or allocable to business segments are
disclosed under the respective segments. All other assets and liabilities are included as part of
unallocable. The Company has identified the following business segments as primary segments
(a) Products & Services
(b) Projects & Services
In the Company''s operations within India there is no significant difference in the economic conditions
prevailing in the various states of India. Revenue from sales to customers outside India is less than 10% in
the current and previous year. Hence disclosure on geographical segment are not applicable.
11. Previousyear''s figures have been regrouped / reclassified where necessary to
correspond with the current year’s classification / disclosure.