1 Significant Accounting Policies
a Company Overview
Niraj Cement Structurals Ltd. (“the Company”) is a Public Limited Company incorporated and domiciled in India
having its registered office at Unit No. 820 to 825,Epicentre Commercial Building, Wadhwa Dukes Horizon, Pepsi
Company, Off. Sion Trombay Road, Nr. R K Studio, D G Patil Road, Mumbai - 400088 Mumbai, Maharashtra,
India. The Company is engaged in infrastructural services.
b Statement of Compliance with Indian Accounting Standards (Ind AS)
The Company's financial statements have been prepared in accordance with the provisions of the Companies Act,
2013 and the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting
Standards) Rules, 2015 and amendments thereof issued by Ministry of Corporate Affairs in exercise of the powers
conferred by section 133 of the Companies Act, 2013. In addition, the guidance notes/announcements issued by
the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other
statutory promulgations require a different treatment. These financials statements have been approved by the
Board of Directors at their meeting held on 22nd May 2025.
c Basis of Accounting
The Company maintains its accounts on accrual basis following historical cost convention, except for certain
financial instruments that are measured at fair value in accordance with Ind AS. Fair value measurements are
categorised as below based on the degree to which the inputs to the fair value measurements are observable and
the significance of the inputs to the fair value measurement in its entirety:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company
can access at measurement date;
Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability,
either directly or indirectly; and
Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.
Above level of fair value hierarchy are applied consistantly and generally, there are no transfer between the level
of the fair value hierarchy unless the circumstances changes warranting such transfers.
d Presentation of financial statements
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in
the Schedule III to the Companies Act, 2013 (“the Act”). The Statement of Cash Flows has been prepared and
presented as per the requirements of Ind AS 7 “Statement of Cash Flows”. The disclosure requirements with
respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the
Act, are presented by way of notes forming part of the financial statements along with the other notes required to
be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 as amended.
e Operating cycle for current and non-current classification
Operating cycle for the business activities of the company covers the duration of the specific project/contract/
product line/service including the defect liability period wherever applicable and extends up to the realisation of
receivables (including retention monies) within the agreed credit period normally applicable to the respective lines
of business.
f Use of judgement and estimates
The preparation of the financial statements in conformity with Ind AS requires management to make certain
estimates, judgements and assumptions. These affect the application of accounting policies, the reported
amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the reporting date of the
financial statements and reported amounts of income and expenses during the period. Accounting estimates
could change from period to period and the actual results could differ from those estimates. These are reviewed
by the management on an on-going basis and appropriate changes in estimates are made prospectively as
management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes are made and, if material, their effects are
disclosed in the notes to the financial statements.
The management believes that the estimates used in preparation of these financial statements are just, prudent
and reasonable.
g Exceptional Items
An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional item and disclosed as such in the
financial statements.
h Property, Plant and Equipment (PPE)
PPE is recognised when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. PPE is stated at original cost net of tax/duty credits
availed, if any, less accumulated depreciation and cumulative impairment, if any. PPE acquired on hire purchase
basis are recognised at their cash values. Cost includes professional fees related to the acquisition of PPE and for
qualifying assets, borrowing costs capitalised in accordance with the Company's accounting policy.
Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and
other general overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing
the PPE to working condition are allocated and capitalised as a part of the cost of the PPE.
PPE not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”.
(Also refer to policy on leases, borrowing costs, impairment of assets and foreign currency transactions infra).
Depreciation is recognised using straight line method so as to write off the cost of the assets (other than freehold
land and properties under construction) less their residual values over their useful lives specified in Schedule II to
the Companies Act, 2013, or in the case of assets where the useful life was determined by technical evaluation,
over the useful life so determined. Depreciation method is reviewed at each financial year end to reflect the
expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful life
and residual values are also reviewed at each financial year end and the effect of any change in the estimates of
useful life/ residual value is accounted on prospective basis.
Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that
part is different from the useful life of the remaining asset, useful life of that significant part is determined
separately and such asset component is depreciated over its separate useful life.
Depreciation on additions to/deductions from, owned assets is calculated pro rata to the period of use. Extra shift
depreciation is provided on a location basis.
Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying
amount of the asset is allocated over its remaining useful life. Assets acquired under finance leases are
depreciated on a straight line basis over the lease term. Where there is reasonable certainty that the Company
shall obtain ownership of the assets at the end of the lease term, such assets are depreciated based on the useful
life adopted by the Company for similar assets.
The Company has a program of verification to cover all the items of fixed assets in a phased manner. Fixed
assets were physically verified by the management during the year.
i Revenue Recognition
Ind AS 115: The objective of this Standard is to establish the principles that an entity shall apply to report useful
information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash
flows arising from a contract with a customer.
Indentifying the Contract
An entity shall account for a contract with a customer that is within the scope of this Standard only when all of the
following criteria are met:
(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other
customary business practices) and are committed to perform their respective obligations;
(b) the entity can identify each party's rights regarding the goods or services to be transferred;
(c) the entity can identify the payment terms for the goods or services to be transferred;
(d) the contract has commercial substance (ie the risk, timing or amount of the entity's future cash flows is
expected to change as a result of the contract); and
(e) it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods
or services that will be transferred to the customer. In evaluating whether collectability of an amount of
consideration is probable, an entity shall consider only the customer's ability and intention to pay that
amount of consideration when it is due. The amount of consideration to which the entity will be entitled may
be less than the price stated in the contract if the consideration is variable because the entity may offer the
customer a price concession.
Identifying Performance Obligation:
At contract inception, an entity shall assess the goods or services promised in a contract with a customer and
shall identify as a performance obligation each promise to transfer to the customer either: (a) a good or service (or
a bundle of goods or services) that is distinct; or 596 (b) a series of distinct goods or services that are
substantially the same and that have the same pattern of transfer to the customer.
Satisfaction of performance obligations:
An entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a
promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains
control of that asset.
Performance obligations satisfied over time
When either party to a contract has performed, an entity shall present the contract in the balance sheet as a
contract asset or a contract liability, depending on the relationship between the entity's performance and the
customer's payment. An entity shall present any unconditional rights to consideration separately as a receivable.
Measurement
When (or as) a performance obligation is satisfied, an entity shall recognise as revenue the amount of the
transaction price (which excludes estimates of variable consideration) that is allocated to that performance
obligation.
Determining the transaction price
An entity shall consider the terms of the contract and its customary business practices to determine the
transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of
third parties (for example, some sales taxes). The consideration promised in a contract with a customer may
include fixed amounts, variable amounts, or both.
j Investments:
Under Ind AS, these financial assets have been classified as Fair Value through Profit or Loss (FVTPL) on the
date of transition and fair value changes after the date of transition has been recognised in profit or loss.
k Fair value measurement :
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between willing parties.
The following methods and assumptions were used to estimate the fair values:
(a) Fair value of current assets which includes loans given, cash and cash equivalents, other bank balances and
other financial assets - approximate their carrying amounts.
(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value
of such instruments is not materially different from their carrying amounts.
l Borrowings
Borrowing costs include interest expense calculated using the effective interest method, finance charges in
respect of assets acquired on finance lease and exchange differences arising on foreign currency borrowings to
the extent they are regarded as an adjustment to interest costs.
Borrowing costs net of any investment income from the temporary investment of related borrowings that are
attributable to the acquisition, construction or production of a qualifying asset are capitalised / inventoried as part
of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs
are recognised in Profit or Loss in the period in which they are incurred.
m Financial Instruments
Financial assets and/or financial liabilities are recognised when the company becomes party to a contract
embodying the related financial instruments. All financial assets, financial liabilities and financial guarantee
contracts are initially measured at transaction values and where such values are different from the fair value, at
fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial
liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or
deducted from as the case may be, the fair value of such financial assets or liabilities, on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in Profit or Loss.
In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares,
the excess of the actual amount of the funding over initially measured fair value is accounted as an equity
investment.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a
current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or
to realise the asset and settle the liability simultaneously.
(i) Financial Assets
(A) All recognised financial assets are subsequently measured in their entirety either at amortised cost or at fair
value depending on the classification of the financial assets as follows:
(i) Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair
value.
(ii) Investments in debt instruments that meet the following conditions are subsequently measured at
amortised cost (unless the same designated as fair value through profit or loss):
The asset is held within a business model whose objective is to hold assets in order to collect contractual
cash flows; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
(iii) Investment in debt instruments that meet the following conditions are subsequently measured at fair
value through other comprehensive income [FVTOCI] (unless the same are designated as fair value
through profit or loss)
The asset is held within a business model whose objective is achieved both by collecting contractual
cash flows and selling financial assets; and
The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
(iv) Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are
recognised in profit or loss.
(v) Investment in equity instruments issued by subsidiary, associate and joint venture companies are
measured at cost less impairment.
(vi) Investment in preference shares of the subsidiary companies are treated as equity instruments if the
same are convertible into equity shares or are redeemable out of the proceeds of equity instruments
issued for the purpose of redemption of such investments. Investment in preference shares not meeting
the aforesaid conditions are classified as debt instruments at FVTPL.
(vii) Investments in equity instruments are classified as at FVTPL, unless the related instruments are not held
for trading and the Company irrevocably elects on initial recognition to present subsequent changes in
Fair Value in Other Comprehensive Income.
(B) For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for
impairment and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes
in fair value (other than on account of above income or expense) are recognised in other comprehensive
income and accumulated in other equity. On disposal of debt instruments at FVTOCI, the cumulative gain or
loss previously accumulated in other equity is reclassified to profit or loss. In case of equity instruments at
FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments.
(C) A financial asset is primarily derecognised when:
(i) the right to receive cash flows from the asset has expired, or
(ii) the company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a pass-through
arrangement; and (a) the company has transferred substantially all the risks and rewards of the asset, or
(b) the company has neither transferred nor retained substantially all the risks and rewards of the asset,
but has transferred control of the asset.
On derecognition of a financial asset in its entirety, the difference between the carrying amounts
measured at the date of derecognition and the consideration received is recognised in Profit or Loss.
(D) Impairment of financial assets: The Company recognises impairment loss on trade receivables using
expected credit loss model, which involves use of a provision matrix constructed on the basis of historical
credit loss experience as permitted under Ind AS 109. Impairment loss on investments is recognised when
the carrying amount exceeds its recoverable amount.
(ii) Financial Liabilities
(i) Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement
at FVTPL are subsequently measured at fair value. Financial guarantee contracts are subsequently
measured at the amount of impairment loss allowance or the amount recognised at inception net of
cumulative amortisation, whichever is higher. All other financial liabilities including loans and borrowings are
measured at amortised cost using Effective Interest Rate (EIR) method.
(ii) A financial liability is derecognised when the related obligation expires or is discharged or cancelled.
n Inventories
Inventories are valued after providing for obsolescence, as under:
(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted
average cost or net realisable value. However, these items are considered to be realisable at cost if the
finished products in which they will be used, are expected to be sold at or above cost.
(ii) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net
realisable value. In some cases, manufacturing work-in-progress are valued at lower of specifically
identifiable cost or net realisable value. In the case of qualifying assets, cost also includes applicable
borrowing costs vide policy relating to borrowing costs.
(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average
cost or net realisable value. Cost includes related overheads and GST paid/payable on such goods.
(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of
specifically identifiable cost or net realisable value.
Assessment of net realisable value is made at each reporting period end and when the circumstances that
previously caused inventories to be written-down below cost no longer exist or when there is clear evidence
of an increase in net realisable value because of changed economic circumstances, the write-down, if any, in
the past period is reversed to the extent of the original amount written-down so that the resultant carrying
amount is the lower of the cost and the revised net realisable value.
o Cash and Bank Balances
Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and
other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to
more than insignificant risk of change in value, are not included as part of cash and cash equivalents.
p Securities Premium Account
Securities premium includes:
(i) The difference between the face value of the equity shares and the consideration received in respect of
shares issued.
(ii) The issue expenses of securities which qualify as equity instruments are written off against securities
premium account.
q Employee Benefits
(i) Short Term Employee Benefits
Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-
gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are
classified as short term employee benefits and are expensed in the period in which the employee renders the
related service.
(ii) Post Employment Benefits
(a) Defined contribution plans: The Company's superannuation scheme, state governed provident fund
scheme, employee state insurance scheme and employee pension scheme are defined contribution
plans. The contribution paid/payable under the schemes is recognised during the period in which the
employee renders the related service.
(b) Defined Benefit Plans: The employees' gratuity fund schemes and employee provident fund schemes
managed by board of trustees established by the Company, the post-retirement medical care plan and
the Company pension plan represent defined benefit plans. The present value of the obligation under
defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method.
The obligation is measured at the present value of the estimated future cash flows using a discount rate
based on the market yield on government securities of a maturity period equivalent to the weighted
average maturity profile of the defined benefit obligations at the Balance Sheet date.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts
included in net interest on the net defined benefit liability or asset) and any change in the effect of asset
ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings
and the same is not eligible to be reclassified to profit or loss. Defined benefit costs comprising current
service cost, past service cost and gains or losses on settlements are recognised in the Statement of
Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is
recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any
defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as
expense at the earlier of the plan amendment or curtailment and when the company recognises related
restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the
defined benefit plans to recognise the obligation on a net basis.
(iii) Long Term Employee benefits
The obligation recognised in respect of long term benefits such as compensated absences, long service
award etc. is measured at present value of estimated future cash flows expected to be made by the Company
and is recognised in a similar manner as in the case of defined benefit plans vide (ii)(B) supra.
Long term employee benefit costs comprising current service cost and gains or losses on curtailments and
settlements, re-measurements including actuarial gains and losses are recognised in the Statement of Profit
and Loss as employee benefit expenses. Interest cost implicit in long term employee benefit cost is
recognised in the Statement of Profit and Loss under finance cost.
(iv) Terminal Benefits
Termination benefits such as compensation under employee separation schemes are recognised as expense
when the Company's offer of the termination benefit is accepted or when the Company recognises the related
restructuring costs whichever is earlier.
r Taxes on Income
Tax on income for the current period is determined on the basis of taxable income and tax credits computed in
accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessments/
appeals.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in
the Company's financial statements and the corresponding tax bases used in computation of taxable profit and
quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary
differences associated with investments in subsidiaries and associates, and interests in joint ventures, except
where the company is able to control the reversal of the temporary difference and it is probable that the temporary
difference will not reverse in the foreseeable future.
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable
that taxable profits will be available against which those deductible temporary differences can be utilised. The
carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are
recognised and carried forward to the extent of available taxable temporary differences or where there is
convincing other evidence that sufficient future taxable income will be available against which such deferred tax
assets can be realised.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of
its assets and liabilities.
Transaction or event which is recognised outside Profit or Loss, either in Other Comprehensive Income or in
equity, is recorded along with the tax as applicable.
s Accounting for Joint Ventures :
The company has booked turnover and related cost of Joint Venture entities and partners in its books of account.
However, the whole projects have been handled by Joint Venture Partners / Entities and related GST and TDS
complied by Joint Venture Partners/ Entities.
t Leases
Ind AS 116 - Leases which sets out the principles for the recognition, measurement, presentation and disclosure
of leases for both parties to a contract and replaces the previous standard on leasing, Ind AS 17 - Leases. Ind AS
116 eliminates the classification of leases for the lessee as either operating leases or finance leases as required
by Ind AS 17 and instead, introduces a single lessee accounting model whereby a lessee is required to recognise
assets and liabilities for all leases with a term that is greater than 12 months, unless the underlying asset is of low
value, and to recognise depreciation of leased assets separately from interest on lease liabilities in the income
statement.
The accounting by lessors under the new standard is substantially unchanged from today's accounting in Ind AS
17. Lessors classify all leases using the same classification principle as in IAS 17 and distinguish between two
types of leases: operating and finance leases. For operating leases, lessors continue to recognize the underlying
asset. For finance leases, lessors derecognize the underlying asset and recognize a net investment in the lease
similar to today's requirements. Any selling profit or loss is recognized at lease commencement.
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