a) Accounting Convention:
The Financial Statements have been prepared in accordance with the historical cost convention and accepted
b) Fixed Assets and Depreciation:
i) Fixed Assets are stated at cost of acquisition less accumulated depreciation provided on straight line
method in the manner and the rates as prescribed in Schedule XIV of the Companies Act, 1956.
ii) Capital Work-in-Progress:
Projects under Commissioning and other Capital Work-in-Progress are carried at cost comprising direct cost,
pre-operative expenses, interest on borrowings and related incidental expenses, before the Commercial
Investments are stated at cost and provisions are not made against temporary fall in the value of
investments. Profit/loss on Sale of Investments is computed with reference to average direct cost of
Stock of finished goods traded are valued at cost without taking into
account any other direct or indirect expenses. Work-in-Progress is
valued at cost comprising of direct labour and expenses at site which
actually represent the portion of unbilled/unrealised amount of
individual contracts. The foreseable loss in respect of contracts
where expenses have been over-run are considered while valuing such
year end work-in-progress.
e) Revenue Recognition:
Sales/Income are accounted for on the mercantile basis, as per the
consistent accounting practice of the Company, the revenue on long term contracts are recognised on the
basis of raising of Invoices as per terms of contracts. High Seas Sales/Purchases are considered on the basis
of exchange of relevant documents.
f) Retirement Benefits:
Retirement Benefits like provident fund and gratuities are accounted for on accrual basis with contributions
to the relevant recognised funds. The liabilities for encashment of earned leave has been provided on
g) Foreign Currency Transactions
All transactions of gains and losses are included in income/expenses in the year in which they generally
occur. Assets and liabilities denominated in foreign currencies are translated on the basis of invoices
raised/received. Those are reconverted at rates prevailing at the year end, resultant losses are accounted
while gains are not recognised.
h) Share Issue and deferred project development and advertisement expenses are amortised over a period of