| 1. Basis of preparation
The financial statements have been prepared in compliance with the
Accounting Standards Notified by Companies (Accounting Standards)
Rules,2006 (as amended) and the relevant provisions of the Companies
Act, 1956. The financial statements have been prepared under the
historical cost convention on an accrual basis. The accounting policies
have been consistently applied by the Company and are Consistent with
those used in the previous year.
2. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) require the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
the financial statements and the result of operations during the
reporting period. The management believes that the estimates used in
the preparation of financial statements are prudent and reasonable.
However, future results may defer from these estimates and the
differences between the actual results and the estimates are recognized
in the period in which results are known/materialize .
3. Revenue Recognition
Revenue is primarily derived from the fixed price contracts and
recognized on the basis of completion of the project work and billing
of the same to customers.
4. Fixed Assets
Fixed assets are stated at cost of acquisition or construction. less
accumulated depreciation. Cost comprises of the purchase price and
other attributable expenses including cost of borrowings till the date
of capitalization of the asset acquired / commissioned.
All the expenditure incurred on establishing / setting up of new
projects / substantial expansion of existing facilities / creation of
new assets is capitalized. Such expenditure to be capitalized includes
borrowing / finance costs, direct and indirect expenditure incurred on
such assets up to the time they are completed.
5. Depreciation
Depreciation on fixed assets has been provided on the written down
value method and at the rates and in manner specified in Schedule xiv
to the Companies Act, 1956.
6. Investments
Long term investments are stated at cost. The diminution in the market
value of such investments is not recognized unless it is considered
permanent in nature. Current investments are valued at the cost or
market value whichever is lower.
7. Accounting for Leases
Rentals in respect of leased premises are charged to profit and loss
account.
8. Taxes on Income
a. Current Tax
Provision for current tax is made for the amount of tax payable in
respect of taxable income for the year computed under the provision of
the income Tax Act.1961.
b. Deferred Tax
Deferred tax is recognized on timing difference being the difference
between taxable income and accounting income that originate in one
period and are capable of being reversed in the subsequent period / s,
subject to the consideration of prudence.
9. Provisions, Contingent Liabilities and Contingent Assets
Provision involving substantial degree of estimation in measurement is
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are disclosed when the Company has possible
obligation or a present obligation and it is probable that a cash
outflow will not be required to settle the obligation. Contingent
Assets are neither recognized nor disclosed in the financial
statements.
10. Impairment
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/ external
factors. An impairment loss will be recognized if the carrying amount
of an asset exceeds its estimated recoverable amount. The recoverable
amount is greater of asset's net selling price and value in use. In
assessing the value in use the estimated future economic benefits are
discounted to the present value at the weighted average cost of
capital.
11. : Payments to Statutory Auditor:
2014-15 2013-14
Audit fee
Statutory Fee 15,000 15,000
Income Tax Matters 10,000 10,000
Total 25,000 25,000
12. Segment Reporting:
The company is engaged in the business of construction and
infrastructure works which all together is only one business segment
and the segment reporting not applicable for the company.
13. Related party Disclosures:
1. Related Party disclosures in accordance with AS-18 issued by The
Institute of Chartered Accountants of India by virtue of share holding
and key management personnel.
a) Relation Ship
i. Associate Companies : Nil
ii 100% Subsidiary Companies : Nil
Iii Other Indian Subsidiaries : Nil
iii. Key Management Personnel : Director
b) The following transactions were carried out with related parties in
the ordinary course of business.
ii. Key Management Personnel
Remuneration paid NIL NIL
15. There are no amounts due to small-scale industrial undertakings,
to whom the company owes a sum which is outstanding for more than 30
days and hence the details in respect of outstanding dues to
small-scale industrial undertakings are not furnished, as required as
per the notification No.GSR 129(E) dated 22nd February 1999.
16. Previous year's figures have been reclassified/ regrouped wherever
necessary to conform to the current years' classification.
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