Jog Engineering Ltd. कंपली की लेखा नीति

Mar 31, 2015

1.1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except accrued interest is not provided for the period after maturity, on deposits from public, which are matured but not paid. Such interest amounts to Rs. 208.07 lacs during the year. The Management is of opinion, on the basis of the Company Law Board orders, that. Company is liable to provide the interest only up to date of maturity.

1.2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

1.3. Inventories

Inventory of raw material, stores and spares are valued at cost on FIFO basis. Work in progress, which includes extra expenditure for extra work/s falling beyond the scope of contract, is valued at cost, and includes price variation and realizable claims in respect of long-term projects.

1.4. Contract Cost

During the year, there is no any contract cost incurred by the company. In previous years, all the expenditure incurred at I for contracts sites including material are shown under contract cost.

1.5. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.6. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.7. Fixed assets, Depredation and amortization

Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes and incidental expenses related to acquisition, installation and commissioning. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

1.8. Revenue recognition

During the year, there is no revenue from on-going construction contracts. In previous years wherever applicable , revenue from construction contracts are accounted based on stage of completion reached as evaluated by the Management at the end of each accounting period and includes down payments. Additional claims in respect of contracts, which in the opinion of the Management are recoverable, are also recognized in the accounts.

1.9. Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

1.10. Foreign currency transactions and translations No such transaction during the audit period.

1.11. Non-current Investments

Long Term investments are stated at cost less provision for permanent diminution in value. Current investments are stated at lower of cost and fair value computed category wise.

1.12. Employee Benefits

The Company's contribution payable to Provident Fund during the period is charged to the Profit & Loss Account. Provisions for Gratuity and Leave Encashment benefits are made on acturial valuation basis.

1.13. Segment reporting

As the Company is engaged only in one line of business i.e. Infrastructure Projects, no separate reportable segment is identifiable as required by Accounting Standard - 17 on "Segment Reporting".

1.14. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented.

1.15. Taxes on Income

No provision for Income Tax is made in view of carried forward losses of the Company.

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profits offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that these can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized.

1.16. Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2014

1.1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except accrued interest is not provided on deposits from public, which are matured but not paid. Such interest amounts to Rs. 193.71 lac during the year. The Management is of opinion, on the basis of the Company Law Board orders, that, Company is liable to provide the interest only up to date of maturity.

1.2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

1.3. Inventories

Inventory of raw material, stores and spares are valued at cost on FIFO basis. Work in progress, which includes extra expenditure for extra work/s falling beyond the scope of contract, is valued at cost, and includes price variation and realizable claims in respect of long-term projects.

1.4. Government Grants

Government Grant in Aid received for specific fixed asset has been shown as "Deferred Government Grant" in accordance with the Accounting Standard-12 "Accounting for Government Grants" as issued by the Institute of Chartered Accountants of India. Deferred income is recognized in the profit and loss statement over the useful life of the asset.

1.5. Contract Cost

During the year, there is no any contract cost incurred by the company. In previous years, all the expenditure incurred at / for contracts sites including material are shown under contract cost.

1.6. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

1.7. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.8. Fixed assets, Depreciation and amortization

Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes and incidental expenses related to acquisition, installation and commissioning. Depreciation is provided on straight-line basis as per the rates prescribed under Schedule XIV of the Companies act, 1956, on all the assets of the Company except Labour Quarters and civil works for installation of machinery at sites where depreciation on straight-line method at 33.33% and 50% is provided to ensure full amortization over the period of contract. These rates are higher than that prescribed under Schedule XIV of the Companies Act, 1956. As per AS 28: Impairment of Assets, Fixed Assets are reviewed for impairment by Management with reference to their carrying cost compared to the recoverable value and the effect of impairment if any, is considered accordingly.

1.9. Revenue recognition

During the year, there is no revenue from on-going construction contracts. In previous years, revenue from construction contracts are accounted based on stage of completion reached as evaluated by the Management at the end of each accounting period and includes down payments. Additional claims in respect of contracts, which in the opinion of the Management are recoverable, are also recognized in the accounts.

1.10. Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it, is established.

1.11. Foreign currency transactions and translations

No such transaction during the audit period.

1.12. Non-current Investments

Long Term investments are stated at cost less provision for permanent diminution in value. Current investments are stated at lower of cost and fair value computed category wise.

1.13. Employee Benefits

The Company''s contribution payable to Provident Fund during the period is charged to the Profit & Loss Account. Provisions for Gratuity and Leave Encashment benefits are made on actuarial valuation basis.

1.14. Segment reporting

As the Company is engaged only in one line of business i.e. Infrastructure Projects, no separate reportable segment is identifiable as required by Accounting Standard - 17 on "Segment Reporting".

1.15. Earnings per share

Basic earning per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented.

1.16. Taxes on Income

No provision for Income Tax is made in view of carried forward losses of the Company.

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profits offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that these can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized.

1.17. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

Preparation of Accounts on "Going Concern" Assumption

The Company has not received a single contract for last eight years. The Company has incurred continuous losses for last many years, which has eroded net worth of the Company. The Company is passing through severe liquidity crisis and is unable to honour the commitment to Preference Shareholders, Banks, Financial Institutions and Public depositors. The legal matters by and against the Company are in process at various levels of judiciary like DRT, DRAT, District Courts & Bombay High Court of India. The Company has defaulted in payment of various statutory dues like Income Tax, FBT, Works Contract Tax, VAT etc. raise the doubts over Company''s going concern status. The Management''s view is that the Company is a going concern although the Company has not secured any contracts for last many years, this is only due to the Management''s conscious decision to replace the construction contracting business with Property Development Business. The Liquidity crisis, and resultant inability of the Company to meet its liabilities to Preference shareholders and other creditors, is expected to change soon.

The Company has been intermittently repaying the fixed deposit holders but has been unable to repay the fixed depositors as ordered by the Company Law Board vide its order dated 14th June 2010. The Promoters of the Company have now decided to sell some of their properties held through their other private Companies, inter alia, to meet this requirement. Redemption of Preference Shares has to be done only from distributable profits. The Company expects to be able to turn the tables completely and to redeem the Preference Shares in near future. Legal matters are ongoing against the Company and also from the Company. The claims made by the Company in courts of law and in arbitrations primarily against various counter parties are nearly 40 times claims of other parties against the Company. A careful perusal of these various subjudice matters shows that though there have been certain so-called defaults in payments of various Taxes and other dues, the Company has certain legal and sagacious grounds behind the non-payments and once these are settled, the apparent liabilities shall disappear.

Even in the present circumstances, the Company has some property development options to turn itself around in the next 2 to 3 years. These projects shall generate for the Company sufficient liquidity in the next some years to meet all liabilities of the Company, to wipe off all its losses and to generate a healthy status. With this, the Company trusts that it has sound prospects and ought to be considered as a Going Concern. Based on this, the accounts have been prepared on "going concern" basis.

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Mar 31, 2013

1.1. Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except accrued interest is not provided on deposits from public, which are matured but not paid. Such interest amounts to Rs. 179.31 lac. The Management is of opinion, on the basis of the Company Law Board Orders that Company is liable to provide the interest only up to date of maturity.

1.2. Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

1.3. Inventories

Inventory of raw material, stores and spares are valued at cost on FIFO basis. Work in progress, which includes extra expenditure for extra work/s falling beyond the scope of contract, is valued at cost, and includes price variation and realizable claims in respect of long-term projects.

1.4. Government Grants

Government Grant in Aid received for specific fixed asset has been shown as "Deferred Government Grant" id accordance with the Accounting Standard-12 "Accounting for Government Grants'' as issued by the Institute of Chartered Accountants of India. Deferred income is recognized in the profit and loss statement over the useful life of the asset.

1.5. Contract Cost

During the year, there is no any contract cost incurred by the company. In previous years, all the expenditure incurred at / for contracts sites including material are shown under contract cost.

1.6. Cash and cash equivalents (tor purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible Into known amounts of cash and which are subject to insignificant risk of changes in value.

1.7. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.8. Fixed assets, Depreciation and amortization

Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes and incidental expenses related to acquisition, installation and commissioning. Depreciation is provided on straight-line basis as per the rates prescribed under Schedule XIV of the Companies act, 1956, on all the assets of the Company except Labour Quarters and civil works for installation of machinery at sites where depreciation on straight-line method at 33.33% and 50% Is provided to ensure full amortization over the period of contract. These rates are higher than that prescribed under Schedule XIV of the Companies Act, 1956. As per AS 28: Impairment of Assets, Fixed Assets are reviewed for impairment by Management with reference to their carrying cost compared to the recoverable value and the effect of impairment if any, is considered accordingly.

1.9. Revenue recognition

During the year, there is no revenue from on-going construction contracts. In previous years, revenue from construction contracts are accounted based on stage of completion reached as evaluated by the Management at the end of each accounting period and includes down payments. Additional claims in respect of contracts, which in the opinion of the Management are recoverable, are also recognized In the accounts.

1.10. Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it, is established.

1.11. Foreign currency transactions and translations No such transaction during the audit period.

1.12. Non-current Investments

Long Term investments are stated at cost less provision for permanent diminution In value. Current investments are stated at lower of cost and fair value computed category wise.

1.13. Employee Benefits

The Company''s contribution payable to Provident Fund during the period is charged to the Profit & Loss Account. Provisions for Gratuity and Leave Encashment benefits are made on actuarial valuation basis.

1.14. Segment reporting

As the Company is engaged only in one line of business i.e. Infrastructure Projects, no separate reportable segment is identifiable as required by Accounting Standard -17 on "Segment Reporting".

1.15. Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend, Interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented.

1.16. Taxes on Income

No provision for Income Tax is made in view of carried forward losses of the Company.

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profits offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there Is reasonable certainty that these can be realized. The carrying amount of deferred tax assets Is reviewed at each Balance Sheet date and reduced to the extent that It is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized.

1.17. Provisions and contingencies

A provision Is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2012

1.1. Basis of accounting and preparation of financial statements

Ihe financial statements of tho Company have boon prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with tho Accounting Standards notified under tho Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. Ihe financial statements have boon prepared on accrual basis under the historical cost convention. I he accounting policies adopted in the preparation of the financial statements are consistent with those followed in tho previous yoar except accrued interest is not provided on deposits from public, which are matured bui not paid.

Such interest amounts to Rs. 164,88 lac. Ihe Management is of opinion, on the basis of tho Company I.aw Board Orders that Company is liable to provide tho interest only up to date of maturity. .

1.2. Use of estimates

Ihe preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in tho reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable, f uture results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which tho results are known / materialize.

1.3. Inventories

Inventory of raw material, stores and spares are valued at cost on FIFO basis. Work in progress, which includes extra expenditure for extra work/s falling beyond the scope of contract, is valued at cost, and includes price variation and realizable claims in respect ol long term projects.

1.4. Government Grants

Government Grant in Aid received for specific fixed asset has boon shown as “Deferred Government Grant" in accordance with tho Accounting Standard 12 “Accounting for Government Grants" as issued by tho Institute of Chartered Accountants of India. Deferred incomo is recognized in the profit and loss statement over the useful life of tho asset.

1.5. Contract Cost

During the yoar, there is no any contract cost incurred by the company. In previous years, all tho expenditure incurred at i for contracts sites including material are shown under contract cost.

1.6 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short term balances (with an original maturity ol three months or loss from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which arc subject to insignificant risk of changes in value.

1.7. Cash Flow Statement

Cash flows arc reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of past or future cash receipts or payments. Ihe cash flows from operating, investing and financing activities of the Company arc segregated based on the available information.

1.8, Fixed assets, Depreciation and amortization

Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes and incidental expenses related to acquisition. - installation and commissioning. Depreciation is provided on straight line basis as per tho rates prescribed under Schedule XIV of the Companies act, 1956, on all tho assets of the Company except l abour Quarters and civil works for installation of machinery at sites where depreciation on straight line method at 33.33% "find 50% is provided to ensure full amortization over the period of contract.

Ihcse rates arc higher than that prescribed under Scheduio XIV of the Companios Act. 1956. As per AS 28: Impairment of Assets,

Fixed Assets are reviewed for impairment by Management with reference to their carrying cost compared to the recoverable value and the effect of impairment if any, is considered accordingly ’

1.9. Revenue recognition

During the year, there is no revenue from on going construction contracts. In previous years, revenue from construction contracts are accountcd based on stage of completion reached as evaluated by tho Management at the end of each accounting period and includes down payments. Additional claims in respect of contracts, which in tho opinion of the Management are recoverable, arc also recognized in tho accounts.

1.10 Other Income

Interest incomo is accounted on accrual basis. Dividend incomo is accounted for when the right to receive it, is established.

1.11 Foreign currency transactions and translations

No such transaction during tho audit period.

1.12. Non-curren Mnvestmcnts

long lorm investments are stated at cost loss provision for permanent diminution in value. Current investments are stated at lower of cost and fair value computed category wise.

1.13. Employee Benefits

Ihe CompanyHs contribution payable to Provident Fund during the period is chargcd to tho Profit & Loss Account. Provisions for Gratuity and leave Fncashmont benefits arc made on actuarial valuation basis.

1.14 A. Segment reporting

As the Company is engaged only in one line of business i.e. Infrastructure Projects, no separate reportable segment is identifiable as required by Accounting Standard 1 / on "Scgmont Reporting". '

1.15 Earnings per share

Basic earning per share is computod by dividing the profit / (loss) after tax by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing tho profit / (loss) after tax as adjusted for dividend, interest and other chargos to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of oquity shares which could have been issued on tho conversion of all dilutive potential oquity shares. Potential oquity sharos are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per sharo from continuing ordinary operations. Potential dilutive equity shares are deemed to be convortod as at tho beginning of tho period, unless they have boon issued at a later dato, I he dilutive potential oquity shares are adjusted for tho proccods receivable had the shares been actually issued at fair value (i.e. average market value of tho outstanding shares). Dilutive potential equity shares are determined independently for each period presented.

1.16 Taxes on Income

No provision for Income Tax is made in view of carried forward lossos of tho Company.

Deferred tax asset or liability is recognizcd for timing differences between the profit as per financial statements and the profits offered for incomo tax,, based on tax rates that have been enacted or substantively enacted at the Balance Shoot date. Deferrod tax assets aro recognized only if there is rcasonablo certainty that those can bo realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to tho extent that it is no longer probable that sufficient taxable income will bo available to allow all or part of the deferred tax asset to be utilized.

1.17. Provisions and contingencies

A provision is recognizcd when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can bo made. Provisions (excluding retirement benefits) are not discounted to thoir prosont value nnd am determined based on the best estimate required to settle tho obligation at tho Balance Sheet date. Those are reviewed at each Balance Sheet date and adiustod to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2011

(a) Method of Accounting: The Company maintains its accounts as per historical cost convention on accrual basis except accrued Interest is not provided on deposits from public, which are matured but not paid. Such interest amounts to Rs. 150.03 Lac. The Management is of opinion on the basis of the Company Law Board orders; Company is liable to provide the interest only up to date of maturity.

(b) Fixed Assets: Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes and incidental expenses related to acquisition, installation and commissioning. Depreciation is provided on straight-line basis as per the rates prescribed under Schedule XIV of the Companies Act, 1956, on all the assets of the Company except Labour Quarters and civil works for installation of machinery at sites where depreciation on straight-line method at 33.33% and 50% is provided to ensure full amortization over the period of contract. These rates are higher than that prescribed under Schedule XIV of the Companies Act, 1956. As per AS 28: Impairment of Assets, Fixed Assets are reviewed for impairment by Management with reference to their carrying cost compared to the recoverable value and the effect of Impairment, if any, is considered accordingly.

(c) Inventories: Inventory of raw material, stores and spares are valued at cost on FiFO basis. Work In progress, which includes extra expenditure for extra work/s falling beyond the scope of contract, is valued at cost, and Includes price variation and realizable claims in respect of long-term projects.

(d) Contract Costs: During the year, there is no any contract cost incurred by the company. In previous years, all the expenditure incurred at / for contracts sites including material are shown under contract cost.

(e) Revenue Recognition: During the year, there is no revenue from on-going construction contracts. In previous years, revenue from construction contracts are accounted based on stage of completion reached as evaluated by the Management at the end of each accounting period and Includes down payments. Additional claims in respect of contracts, which in the opinion of the Management are recoverable, are also recognized in the accounts.

(f) Foreign Currency Transactions: No such transaction during the audit period.

(g) Investments: Long Term investments are stated at cost less provision for permanent diminution in value. Current investments are stated at lower of cost and fair value computed category wise.

(h) Retirement Benefits: The Company's contribution payable to Provident Fund during the period is charged to the Profit & Loss Account. Provisions for Gratuity and Leave Encashment benefits are made on actual liability basis for all employees Including ex-employees.

(i) Accounting tor Taxes on Income: Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profits offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that these can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized.

(j) Government Grant: Government Grant in Aid received for specific fixed asset has been shown as "Deferred Government Grant" In accordance with the Accounting Standard-12 "Accounting for Government Grants" as issued by the Institute of Chartered Accountants of India. Deferred income is recognized in the profit and loss statement over the useful life of the asset.

(k) Contingent Liabilities: These are disclosed by way of notes to accounts. Provision is made in the accounts In respect of those contingencies which are likely to materialize after the year-end till approval of the accounts by the Board of Directors and which have material effect on the position stated in the Balance Sheet.

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Mar 31, 2010

(a) Method of Accounting: The Company maintains its accounts as per historical cost convention on accrual basis except accrued interest is not provided on deposits from public which are matured but not paid. Such interest amounts to Rs. 132.90 Lac. The Management is of opinion on the basis of the Company Law Board orders; Company is liable to provide the interest only upto date of maturity.

(b) Fixed Assets: Fixed Assets are valued at cost of acquisition inclusive of freight, duties, taxes and incidental expenses related to acquisition, installation and commissioning. Depreciation is provided on straight line basis as per the rates prescribed under Schedule XIV of the Companies Act, 19S6, on all the assets of the Company except Labour Quarters and civil works for installation of machinery at sites where depreciation on straight-line method at 33.33% and 50% is provided to ensure full amortization over the period of contract. These rates are higher than that prescribed under Schedule XIV of the Companies Act, 1956. As per AS 28: Impairment of Assets, Fixed Assets are reviewed for impairment by Management with reference to their carrying cost compared to the recoverable value and the effect of impairment, if any, is considered accordingly. The asset write off during audit period is Rs. 268.38 Lac.

(c) Inventories: Inventory of raw material, stores and spares are valued at cost on FIFO basis. Work in progress, which includes extra expenditure for extra work/s falling beyond the scope of contract, is valued at cost, and includes price variation and realizable claims in respect of long-term projects.

(d) Contract Costs: All the expenditure incurred at / for contracts sites including material are shown under contract cost.

(e) Revenue Recognition: Revenue from Construction contracts are accounted based on stage of completion reached as evaluated by the Management at the end of each accounting period and includes down payments. Additional claims in respect of contracts, which in the opinion of the Management are recoverable, are also recognized in the accounts.

(f) Foreign Currency Transactions: No such transaction during the audit period.

(g) Investments: Long Term investments are stated at cost less provision for permanent diminution in value. Current investments are stated at lower of cost and fair value computed category wise.

(h) Retirement Benefits: The Companys contribution payable to Provident Fund during the period is charged to the Profit & Loss Account. Provisions for Gratuity and Leave Encashment benefits are made on actual liability basis for all employees including ex-employees.

(i) Accounting for Taxes on Income: Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profits offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is reasonable certainty that these can be realized. The carrying amount of deferred tax assets is reviewed at each Balance Sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilized.

(j) Government Grant: Government Grant in Aid received for specific fixed asset has been shown as "Deferred Government Grant" in accordance with the Accounting Standard-12 "Accounting for Government Grants" as issued by the Institute of Chartered Accountants of India. Deferred income is recognized in the profit and loss statement over the useful life of the asset.

(k) Contingent Liabilities: These are disclosed by way of notes to accounts. Provision is made in the accounts in respect of those contingencies which are likely to materialize after the year end till approval of the accounts by the Board of Directors and which have material effect on the position stated in the Balance Sheet