a. Basis of preparation:
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 specified under
Section 133 of the Companies Act, 201 3, read with Rule 7 of the Companies (Accounts) Rules, 201 4 and the
relevant provisions of the Companies Act, 2013 ("the 2013 Act"), as applicable. The financial statements
have been prepared on accrual basis and 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.
b. Use of estimates:
In preparing the Company's financial statements in conformity with the accounting principles generally
accepted in India, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the
current and future periods.
c. Property, Plant & Equipment and Depreciation:
Property Plant & Equipment
Property, Plant and Equipment are stated at cost of acquisition (net of CENVAT, wherever applicable) as
reduced by accumulated depreciation. The cost of assets includes other direct/indirect and incidental cost
incurred to bring them into their working condition.
When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss
arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and
the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial
year.
Depreciation
The depreciation on assets for own use is provided on "Straight Line Method (SLM)" on the basis of useful
life of assets as specified in Schedule II to the Companies Act, 2013 on Pro-rata Basis.
When assets are disposed or retired, their accumulated depreciation is removed from the financial
statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference
between sales proceeds and the carrying amount of the asset and is recognized in the Statement of Profit
and Loss for the relevant financial year.
d. Intangible Assets & Amortizations Intangible Assets:
Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All
costs, including financing costs in respect of qualifying assets till commencement of commercial production,
net charges on foreign exchange contracts and adjustments arising from exchange rate variations
attributable to the intangible assets are capitalized.
Intangible assets are amortised on a straight - line basis over their estimated useful lives. A rebuttable
presumption that the useful life of an intangible asset will not exceed ten years from the date when the
asset is available for use is considered by the management. The amortization period and the amortization
method are reviewed at least at each reporting date. If the expected useful life of the asset is significantly
different from previous estimates, the amortization period is changed accordingly.
The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference
between net disposal proceeds and the carrying amount of the asset and is recognised as income or
expenses in the Statement of Profit and Loss in the year or disposal.
Amortization
Intangible assets are amortized on a straight - line basis over their estimated useful lives of 5 years. A
rebuttable presumption that the useful life of an intangible asset will not exceed ten years from the date
when the asset is available for use is considered by the management. The amortization period and the
amortization method are reviewed at least each reporting date. If the expected useful life of the asset is
significantly different from previous estimates, the amortization period is changed accordingly.
e. Provision for Current and Deferred Tax:
Provision for current tax is made after taking into consideration benefits admissible under the provision of
the Income Tax Act, 1961.
Deferred Tax resulting from "timing difference" between taxable and accounting income is accounted for
using the tax rates and laws that are enacted or subsequently enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent that there is virtual certainty that the
assets will be realized in future.
f. Revenue Recognition:
(i) Contract Revenue
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and revenue can be reliably measured on the percentage of completion method as
mentioned in Accounting Standard (AS) 7 "Construction contracts" notified by the Companies
Accounting Standards Rules, 2006. Running Account Bills for work completed are recognized on
percentage of completion method based on completion of physical proportion of the contract work.
Income on account of claims and extra item work is recognized to the extent company expects
reasonable certainty about receipts or acceptance from the client.
(ii) Interest Income
Revenue is recognized on a time proportion basis taking into account the amount outstanding and the
rate applicable except interest on income tax refund is recognised in the year of receipt.
(iii) Dividend
Dividend income is recognised when right to receive the same is established.
(iv) Rental Income
Rental income from renting is recognized in the statement of profit or loss and other income on a
straight- line basis over the term of the agreement.
g. Foreign Currency Transactions:
i) Transactions in foreign currencies are recorded in Indian rupees using the rates of exchange prevailing
on the date of the transactions. At each balance sheet date, monetary balances are reported in Indian
Rupees at the rates of exchange prevailing at the Balance Sheet date. All realized or unrealized
exchange adjustment gains or losses are dealt with in the Statement of Profit and Loss.
ii) In order to hedge exposure to foreign exchange risks arising from export or import foreign currency,
bank borrowings and trade receivables, the company enters into forward contracts. In case of forward
exchange contract, the cost of the contracts is amortised over the period of the contract, any profit or
loss arising on the cancellation or renewal of a forward exchange contract is recognised as income or
expenses for the year.
iii) Exchange difference is calculated as the difference between the foreign currency amount of the
contract translated at the exchange rate at the reporting date, or the settlement date where the
transaction is settled during the report period and the corresponding foreign currency amount
translated at the later of the dates of inception of the forward exchange contract and the last reporting
date. Such exchange difference rate recognised in the Statement of profit and loss in the reporting
period in which the exchange rates change.
iv) 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.
h. Borrowing cost:
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as
part of the cost of such assets, whenever applicable, till the assets are ready for their intended use. A
qualifying asset is one which necessary takes substantial period to get ready for intended use. All other
borrowing costs are charged to revenue accounts. Capitalization of borrowing cost is suspended when active
development is interrupted.
i. Inventories:
The basis of valuation of inventories is "Lower of cost and net realizable value". Work in Progress is valued
on weighted average method. Cost in respect of inventories is computed on FIFO basis and Net realizable
value is the estimated selling price in the ordinary course of business, reduced by the estimated costs of
completion and costs to affect the sale.
j Investments:
Long Term Investments are stated at cost. Provision is only made to recognize a decline other than
temporary, in the value of investments. However, where quotation as on 31 st March 2025 was not available,
last available quotation was considered.
k. Employees* Benefits:
(i) The Employee and Company make monthly fixed Contribution to Government of India-Employee's
Provident Fund equal to a specified percentage of the Covered employee's salary, Provision for the
same is made in the year in which services are rendered by the employee.
(ii) The Liability for Gratuity to employees is determined on the basis of actuarial valuation as per AS-15.
Actuarial gain/loss in respect of the same is charged to the Statement of profit and loss.
(iii) The Company povides Bonus to the employees as per Payment of Bonus (Amendment) Act, 201 5.
(iv) The Company allows carry forward of unavailed leaves.
(v) Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of
Profit and Loss of the year in which the related service is rendered.
l. Segment Information:
Based on the principles for determination of segments given in Accounting Standard 17 "Segment
Reporting" issued by accounting standard notified by Companies (Accounting Standard) Rules, 2008, the
company is mainly engaged in one segment i.e., the business of Construction Activities and all other
activities surrounded with main business of the Company.
m. Impairment:
The management periodically assesses, using external and internal sources whether there is an indication
that an asset may be impaired. If an asset is impaired, the company recognizes an impairment loss as the
excess of the carrying amount of the asset over the recoverable amount. The impairment loss recognised in
prior accounting periods is reversed if there has been a change in the estimate of recoverable amounts.
n. Accounting for Lease:
The Company's significant leasing arrangements are in respect of operating lease for premises that are
cancelable in nature. The lease rentals paid under such agreements are charged to the Statement of Profit
and Loss.
o. Earnings per Share:
Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity
Shareholders of the company by the weighted average number of Equity Shares outstanding during the
year. Diluted earnings per share is calculated by dividing net profit attributable to equity Shareholders (after
adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.
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