2.01 Statement of Compliance:
Standalone Financial Statements have been prepared inaccordance with the accounting
principles generally acceptedin India including Indian Accounting Standards (Ind
AS)prescribed under the section 133 of the Companies Act,2013 read with rule 3 of the
Companies (Indian AccountingStandards) Rules, 2015 and the Companies (Accounting
Standards) Amendment Rules, 2016.
The aforesaid financialstatements have been approved by the Board of Directors in the
meeting held on 30th May,2025.
2.02 Basis of Preparation and Presentation:
The Standalone Financial Statements have been prepared on the historical cost basis except
for certain financial instruments measured at fair values at the end of eachreporting period,
as explained in the accounting policies below.
Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services. Fair value is the price that would be received to sell an assetor paid for
transfer a liability in an orderly transaction between market participants at the measurement
date, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company takes
in to account the characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the asset or liability at the measurement date.
Fair value for measurement and/or disclosure purposes in these financial statements is
determined on such a basis, except for sharebased payment transactions that are within the
scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and
measurements that have some similarities to fairvalue but are not fair value, such as net
realizable value in Ind AS 2 or value in use in Ind AS 36.
In addition, for financial reporting purposes, fair value measurements are categorized into
Level 1,2, or 3 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 measurements in its entirety,
which are described as follows:
Level 1 input are quoted prices (unadjusted) in active markets for identical assets or liabilities
that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable
for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
Accounting policies have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.
As the year-end figures are taken from the source and rounded to the nearest digits, the
figures reported for the previous quarters might not always add up to the year figures reported
in the statement.
2.03 Use of Estimates & Judgements:
(a) The preparation of the financial statements in conformity with Ind AS requires the
Management to make estimates, judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting policies and the reported amounts of
assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. The
application of accounting policies that require critical accounting estimates involving complex
and subjective judgments and the use of assumptions in these financial statements have been
disclosed. Accounting estimates could change from period to period.
Actual results could differ from those estimates. Appropriate changes in estimates are made
as the 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.
(b) Estimation of uncertainities relating to the global health pandemic from COVID-19.
The Company has considered the possible effects that may result from the pandemic relating
to COVID-19 on the carrying amounts of receivables, unbilled revenues and investment in
subsidiaries. In developing the assumptions relating to the possible future uncertainties in the
global economic conditions because of this pandemic, the Company, as at the date of approval
of these financial statements has used internal and external sources of information including
credit reports and related information, economic forecasts. The Company has performed
sensitivity analysis on the assumptions used and based on current estimates expects the
carrying amount of these assets will be recovered. The impact of COVID-19 on the Company’s
financial statements may differ from that estimated as at the date of approval of these
financial statements.
2.04 Basis of Classifications of Current and Non-Current:
All the assets and liabilities have been classified as current or non-current in the balance
sheet.
An asset has been classified as current if (a) it is expected to be realized in, or is intended for
sale or consumption in, the Company’s normal operating cycle; or (b) it is held primarily for
the purpose of being traded; or (c) it is expected to be realized within twelve months after the
reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged
or used to settle a liability for at least twelve months after the reporting date. All other assets
have been classified as non-current.
A liability has been classified as current when (a) it is expected to be settled in the Company’s
normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is
due to be settled within twelve months after the reporting date; or (d) the Company does not
have an unconditional right to defer settlement of the liability for at least twelve months after
the reporting date. All other liabilities have been classified as non-current.
Deferred tax assets and liabilities are classified as non-current assets and liabilities.
2.05 Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended March 31,2025, MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.
2.06 Revenue Recognition:
Company mainly derives business from executing turnkey projects and sale of goods and
services. Company is also in the business of real estate sector, manufacturing of plastic caps
and hotel business activities.
Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with
Customers” using the cumulative catch-up transition method, applied to contracts that were
not completed as of April 1, 2018. In accordance with the cumulative catch-up transition
method, the comparatives have not been retrospectively adjusted. The following is a summary
of new and/ or revised significant accounting policies related to revenue recognition. Refer Note
1 “Significant Accounting Policies,” in the Company’s 2018 Annual Report for the policies in
effect for revenue prior to April 1, 2018. The effect on adoption of Ind AS 115 was
insignificant.
IND AS 115 lays down five step model for revenue recognition which is as follows:
1 Identify contract with customer
2 Identify performance obligations
3 Determine transaction price
4 Allocate transaction price to different performance obligations
5 Revenue recognition
A. Engineering Segment
Revenue is recognized upon transfer of control of promised products or services to customers
in an amount that reflects the consideration we expect to receive in exchange for those
products or services.
• Sale of Goods or Services
In case of sale of goods performance obligation is satisfied when control is transferred to
customer and recoverability of amount is probable. Transaction price is same as invoice value
excluding taxes. Revenue is recognized as and when performance obligation is satisfied.
In case of sale of service performance obligation is satisfied when work is executed, customer
approves the work performed and recoverability of amount is probable. Transaction price is
same as invoice value excluding taxes. Revenue is recognized as and when performance
obligation is satisfied.
The company accounts for discounts and pricing incentives to customers as a reduction of
revenue based on the ratable allocation of the discounts/ incentives to each of the underlying
performance obligation that corresponds to the progress by the customer towards earning the
discount/ incentive. Such situation generally does not arise in company.
• Accounting of Turnkey Projects
Trunkey projects includes building of dam, canals, power house boards building dam gates
etc. in executing turnkey projects many revenue emerges like direct contacts price which is
mentioned, claims for arbitrations, or any other income related to projects.
In item rate contracts, the Company has applied the guidance in Ind AS 115, Revenue from
contract with customer, by applying the revenue recognition criteria for each distinct
performance obligation.
As company’s major revenue comes through tendering of projects. Generally different set of
performance obligations are already identified in tenders for which company has to quote
separate price for each performance obligations. So performance obligations are identified at
preliminary stage. Transaction price for each performance obligation is allocated in contract
itself.
Performance obligation is satisfied when project authority approves the work and issue
running bill on account of service or goods supplied by the company.
Revenue is recognized over a period of time using output method, Milestone Method. Milestone
is being approved by the project awarding authority by issuing running bill against work
executed by the company.
Variable considerations like escalation/claims/ arbitration or any incentives cannot be
identified at initial level. Though provision of variable consideration is always forms part of
contract with customer but as per past experience of company, variable consideration is very
fluctuating and depends on the current work execution by the company. Determination of
variable consideration is quite a complex task because it cannot be measured reliably and
variable consideration is not directly related to each performance obligation.
In such situation performance obligations is being satisfied when project authorities approved
the bill or paid the bills issued by company. After which revenue is recognized on the basis of
bills approved.
In case of some claims filed by company which is being approved by third party authority like
arbitrator/ courts, then such claims are accounted and revenue recognized only when order
from third party is in favor of company unconditionally and project authority doesn’t have any
further right to appeal in higher courts.
Contract modifications, either to the contract scope or contract price are accounted for when
additions, deletions or changes are approved either of the parties. The accounting for
modifications of contracts involves assessing whether the work added to an existing contract is
distinct and whether the pricing is at the standalone selling price. Work added that are not
distinct are accounted for on a cumulative catch up basis, while those that are distinct are
accounted for prospectively, either as a separate contract, if the additional services are priced
at the standalone selling price, or as a termination of the existing contract and creation of a
new contract if not priced at the standalone selling price.
• Trade Receivables and Contract Balances
The company classifies the right to consideration in exchange for deliverables as either a
receivable or as unbilled revenue.
A receivable is a right to consideration that is unconditional upon passage of time. Revenue
for time and material contracts are recognized as related service are performed. Revenue for
fixed price maintenance contracts is recognized on a straight line basis over the period of the
contract. Revenues in excess of billings is recorded as unbilled revenue and is classified as a
financial asset for these cases as right to consideration is unconditional upon passage of time
Invoicing in excess of earnings is classified as unearned revenue.
Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.
B. Accounting of Realestate Transactions
(i) Revenue from real estate projects - The Company derives revenue, primarily from sale of
properties comprising of both commercial and residential units. Revenue from sale of
constructed properties is recognised at a ‘Point of Time’, when the Company satisfies the
performance obligations, which generally coincides with completion/ possession of the unit.
To estimate the transaction price in a contract, the Company adjusts the contracted amount
of consideration to the time value of money if the contract includes a significant financing
component.
(ii) The revenue on account of interest on delayed payment by customers and expenditure on
account of compensation / penalty for project delays are accounted for at the time of
acceptance / settlement with the customers due to uncertainties with regard to determination
of amount receivable / payable.
(iii) Amount received on booking is classified as contract liabilities and shown in balance sheet as
current or non-current as classification permits.
(iv) Eligible expenses incurred for building of real estate units/flats are capitalized and shown as
inventory as Work in progress stock.
C. Accounting for Joint Arrangements Contracts:-
(a) Under Ind AS 111, Joint arrangement, Investment in joint arrangements are classified as
either joint operations or joint ventures. The classification depends on the contractual rights
or obligations of each investor, rather than the legal structure of the joint arrangement.
Company has both joint operations and joint ventures.
(i) Joint Operations
Company recognize its direct right to the asset, liability, revenue and expenses of joint
operations and its share of any jointly held or incurred assets, liability, revenue and expenses
in standalone financial statements.
(ii) Joint Ventures
Joint ventures are accounted for using the equity method in consolidated financial
statements. Such investments after being recognized at cost in standalone financial
statements.
(b)
(i) In respect of contract executed in joint ventures under profit sharing arrangement
(Assessment as AOP/Firm under Income Tax Laws) , the services rendered to the Joint
Ventures are accounted as income on accrual basis. The profit/Loss is accounted for, as and
when it is determined by the Joint Venture and the net investment in the Joint venture is
reflected as investment, loans and advance or current liabilities.
(ii) Profit from those joint ventures which are Firms, are accounted directly in investment
accounts and respective investment get increased.
2.07 Other Income:
a) Dividend and Interest Income:-
Revenue is recognized when the shareholder’s right to receive payment is established
(provided that it is probable that the economic benefit will flow to the company and the
amount of income can be measured reliably). Dividend from subsidiaries is recognized even if
the same is declared after the balance sheet date but pertains to period on or before the date
of balance sheet as per the Companies Act., 2013.
Interest income from a financial asset is recognized when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on, time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset’s net carrying
amount on initial recognition.
A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.
Company as a lessee
The Company accounts for each lease component within the contract as a lease separately
from non-lease components of the contract and allocates the consideration in the contract to
each lease component on the basis of the relative stand-alone price of the lease component
and the aggregate stand-alone price of the non-lease components.
The Company recognises right-of-use asset representing its right to use the underlying asset
for the lease term at the lease commencement date. The cost of the right-of-use asset
measured at inception shall comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before the commencement date less any
lease incentives received, plus any initial direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing the underlying asset or restoring the
underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease liability. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets
are determined on the same basis as those of property, plant and equipment.
Right-of-use assets are tested for impairment whenever there is any indication that their
carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the
statement of profit and loss.
The Company measures the lease liability at the present value of the lease payments that are
not paid at the commencement date of the lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate. For leases with reasonably
similar characteristics, the Company, on a lease by lease basis, may adopt either the
incremental borrowing rate specific to the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include fixed payments, variable lease
payments, residual value guarantees, exercise price of a purchase option where the Company
is reasonably certain to exercise that option and payments of penalties for terminating the
lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease
liability is subsequently remeasured by increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or lease modifications or to
reflect revised in-substance fixed lease payments. The company recognises the amount of the
re-measurement of lease liability due to modification as an adjustment to the right-of-use
asset and statement of profit and loss depending upon the nature of modification. Where the
carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in
the measurement of the lease liability, the Company recognises any remaining amount of the
re-measurement in statement of profit and loss.
The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term
leases of all assets that have a lease term of 12 months or less and leases for which the
underlying asset is of low value. The lease payments associated with these leases are
recognized as an expense on a straight-line basis over the lease term.
Company as a lessor
At the inception of the lease the Company classifies each of its leases as either an operating
lease or a finance lease. The Company recognises lease payments received under operating
leases as income on a straight-line basis over the lease term. In case of a finance lease,
finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor’s net investment in the lease. When the Company is an
intermediate lessor it accounts for its interests in the head lease and the sub-lease separately.
It assesses the lease classification of a sub-lease with reference to the right-of-use asset
arising from the head lease, not with reference to the underlying asset. If a head lease is a
short term lease to which the Company applies the exemption described above, then it
classifies the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, the Company applies Ind AS 115
Revenue from contracts with customers to allocate the consideration in the contract.
The incremental borrowing rate applied to lease liabilities created after April 1,2022 is 11%.
2.09 Foreign Currency Transaction:
The Functional and reporting currency of the company is INR. Transactions other than
functional currency are treated as foreign currency transactions.
(i) Initial Recognition
Foreign currency transactions are recorded in the functional currency, by applying to the
foreign currency amount the exchange rate between the functional currency and the foreign
currency at the date of the transaction.
(ii) Conversion
Foreign currency monetary items are reported using the closing rate. Non-monetary items
which are carried in terms of historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.
(iii) Treatment of Exchange Differences
Exchange differences arising on settlement/restatement of short term foreign currency
monetary assets and liabilities of the Company are recognized as income or expense in the
Statement of Profit and Loss.
Exchange differences arising on long-term foreign currency monetary items related to
acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the
asset. Exchange differences arising on other long-term foreign currency monetary items are
accumulated in the “Foreign Currency Monetary Translation Account” and amortized over the
remaining life of the concerned monetary item.
(iv) Translation of Foreign operation
The results and financial position of a foreign operation (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
• Assets and liabilities for each balance sheet presented (i.e. including comparatives) are
translated at the closing rate at the date of that balance sheet;
• Income and expenses for each statement of profit and loss presented (i.e. including
comparatives) are translated at average exchange rates; and
• All resulting exchange differences have been recognised in other comprehensive income.
On disposal of a foreign operation, the associated exchange differences are re-classified to
profit or loss, as part of the gain or loss on disposal.
2.10 Borrowing Costs:
Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use.
All other borrowing costs are recognized in the Statement of Profit and Loss in the period in
which they are incurred.
The Company determines the amount of borrowing costs eligible for capitalization as the
actual borrowing costs incurred on that borrowing during the period less any interest income
earned on temporary investment of specific borrowings pending their expenditure on
qualifying assets, to the extent that an entity borrows funds specifically for the purpose of
obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for
obtaining a qualifying asset, borrowing costs eligible for capitalization are determined by
applying a capitalization rate to the expenditures on that asset.
The Company suspends capitalization of borrowing costs during extended periods in which it
suspends active development of a qualifying asset.
Defined Contribution Plans
(a) Payment to defined contribution retirement benefit plans are recognized as an expense
when employees, as certified by board of directors have rendered service entitling them to the
contributions.
(b) Provident fund of the Company is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company
recognizes contribution payable to the provident fund scheme as expenditure, when an
employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already
paid.
(c) Pension Fund of the Company is a defined contribution scheme. The Company has no
obligation, other than the contribution payable to the provident fund. The Company
recognizes contribution payable to the provident fund scheme as expenditure, when an
employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already
paid.
Defined Benefit Obligation Plans
For defined benefit obligation plants, the cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations being carried out at the end of each
annual reporting period. Remeasurement, comprising actuarial gains and losses, the effects of
changes to the assets, ceiling(if applicable) and the return on plan assets (excluding interest
)is reflected immediately in the statement of financial position with a charge or credit
recognised in other comprehensive income in the year in which they occur. Remeasurement
recognised in OCI is reflected immediately in retained earnings will not be classified to profit &
loss. Net interest is calculated by applying the discount rate to the net defined liability/asset.
Defined benefit costs are categorized as follows:
1. ) Service costs (including current service cost, past service cost as well as gains and losses
on curtailment and settlements).
2. ) Net interest expense or income
3. ) Remeasurement
(d) Gratuity liability is a defined benefit obligation of the company. The Company provides for
gratuity to employees as calculated by actuarial valuer. The benefit is in the form of Lump
sum payments to vested employees on resignation, retirement, on death while in employment
or on termination of employment of and amount equivalent to 15 days basic salary payable to
each completed year of services. Vesting occurs upon completion of 5 years of services. The
company has not made annual contributions to funds administered by trustees or managed
by insurance companies.
(e) Accumulated leave, which is expected to be utilized within the next 12 months, is treated
as short-term employee benefit. The Company measures the expected cost of such absences
as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.
The Company treats accumulated leave expected to be carried forward beyond twelve months,
as long-term employee benefit for measurement purposes. Such long-term compensated
absences are provided for based on the actuarial valuation using the projected unit credit
method at the year-end. The Company presents the entire leave as a non-current liability in
the balance sheet.
The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.
The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in employee
benefits expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognized in the period in which they occur, directly in other
comprehensive income and such re-measurement gain / (loss) are not reclassified to the
statement of profit and loss in the subsequent periods. They are included in retained earnings
in the statement of changes in equity.
2.12 Taxation:
Tax expense comprises of current tax, deferred tax and Dividend Tax which are described as
follows -:
(a) Current Tax
Current tax is measured after providing deductions under chapter VI A of Income Tax Act,
1961 and making adjustments of ICDS prescribed under Income Tax Act, 1961 at the amount
expected to be paid to the tax authorities, using the applicable tax rates. Current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of
reporting period. Current Tax is generally charged to profit & loss except when they relate to
items which are recognized in other comprehensive income or equity.
(b) Deferred Tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets
and liabilities in the financial statements and the corresponding tax bases used in the
computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable
temporary differences. Deferred tax assets are generally recognized for all deductible
temporary differences to the extent that it is probable that taxable profits will be available
against which those deductible temporary differences can be utilized.
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 liabilities and assets are measured at the tax rates that are expected to apply in
the period in which the liability is settled or the asset realized, based on tax rates (and tax
laws) that have been enacted or substantively enacted by the end of the reporting period.
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 the reporting
period, to recover or settle the carrying amount of its assets and liabilities.
Deferred Tax is generally charged to profit & loss except when they relate to items which are
recognized in other comprehensive income or equity.
Deferred tax asset and deferred tax liabilities are off-set if a legally enforceable right exist to
set-off current tax asset against current tax liabilities and the deferred taxes relates to the
same taxable entity and the same taxation authority.
2.13 Property, Plant and Equipment:
(a) Property, Plant and Equipment is recognized when it is probable that future economic
benefits associated with the items will flow to the company and the cost of the item can be
measured reliably.
The cost of Property Plant & Equipment comprises its purchase price net of any trade
discounts and rebates, any import duty and other taxes any directly attributable expenditure
on making the asset ready for its intended use including relevant borrowing cost for qualifying
asset. Expenditure incurred after Property Plant & Equipment have been put into operation
such as repair & maintenance are charged to the statement of Profit & Loss in the year in
which the costs are incurred, Major shutdown and overhaul expenditure are capitalized as the
activities undertaken improves the economic benefit expected to arise from the assets.
Assets in the course of construction are capitalized in the assets under construction account.
At the point when the asset is operating at management’s intended use, the cost of
construction is transferred to the appropriate category of the Property, Plant and Equipment
and depreciation commences. Cost associated with the commissioning of the asset and any
obligatory decommissioning costs are capitalized where the asset is available for use but
incapable of operating at normal levels until a year of commissioning has been completed.
Revenue generated from production during the trial period capitalized.
Capital subsidy received against specific assets is reduced from the value of relevant
Property, Plant and Equipment.
(b) Free hold land is carried at historical cost.
(c) Leasehold land is not amortized as all leasehold land is on 99 years lease with local
authority and such leasehold land is outside the scope of Ind AS-16.
Items of stores and spares that meet the definition of property, plant and equipment are
capitalized at cost. Otherwise, such items are classified as inventories.
An item of Property, Plant and Equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of asset. Any gain or loss
arising on the disposal or retirement of an item of Property, Plant and Equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognized in statement of profit & loss.
Depreciation and Estimates
Depreciable amount for assets is the cost of an asset, or other amount substituted for costs,
less its estimated residual value. Depreciation is recognized so as to write off the cost of
asset(other than free hold land and lease hold land having 99 years of lease and properties
under construction) less their residual values(after considering the restoration cost) over their
useful lives using Written down value method as prescribed in schedule II of companies act,
2013.
2.14 Intangible Assets:
Intangible assets (which comprises of software acquired (useful life 3-5 years)) and
depreciation /amortization on WDV method as per Companies Act 2013 and impairment
losses if any.
Amortization is recognized on a written down value basis over their estimated useful lives. The
estimated useful life and amortization method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost
less accumulated impairment losses.
2.15 Capital Work in Progress:
Capital work in progress are stated at cost and inclusive of preoperative expenses, project
development expenses etc.
2.16 Impairment of Property, Plant & Equipments and Intangible Assets:
At the end of each reporting year, the company reviews the carrying amount of its tangible
and intangible assets to determine whether there is any indication that those assets are
suffered an impairment loss. If any such indication exists the recoverable amount of the asset
is estimated in order to determine the extent of impairment loss (if any). Where it is not
possible to estimate the recoverable amount of the individual asset, the company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating unit or otherwise they are allocated to the smallest
group of cash-generating unit for which a reasonable and consistent allocation basis can be
identified.
Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing
value in use the estimated future cash flow are discounted to their present value using pretax
discount rate that reflects current market assessment if the time value of money and the risk
specific to the asset for which the estimates of future cash flows have not been adjusted.
An impairment loss is recognized in the Statement of Profit and Loss whenever the carrying
amount of an asset or a cash-generating unit exceeds its recoverable amount. A previously
recognized impairment loss is increased or reversed depending on changes in circumstances.
However the carrying value after reversal is not increased beyond the carrying value that
would have prevailed by charging usual depreciation if there was no impairment.
Costs of inventories are determined on FIFO basis. Net realizable value is estimated selling
price in the ordinary course ofbusiness.
Goods in transit are stated at actual cost and freight if any.
2.18 Investment in Subsidiaries and Joint Venture:
Investment in subsidiaries is carried at deemed cost in the separate financial statements.
Investment in joint ventures and associates are valued at cost after adjusting impairment.
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