n. Provisions and contingent liabilities
The Company creates a provision where there is present obligation (legal or constructive) as a result of past event that
probably requires an outflow of resources embodying economic benefits and a reliable estimate can be made of the amount
of the obligation.
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but
probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of
which the likelihood of outflow of resource is remote, no provision or disclosure is made.
o. Contract receipts / revenue recognition
Revenue is recognized when it is probable that economic benefits associated with a transaction flows to the Company in the
ordinary course of its activities and the amount of revenue can be measured reliably.
Revenue is measured at the fair value of the consideration received or receivable.
Contract revenue:
Contract revenue includes the initial amount agreed in the contract plus any variations in contract work, claims and incentive
payments, to the extent that it is probable that they will result in revenue and can be measured reliably. When the outcome
of a construction contract can be estimated reliably, contract revenue is recognised in the statement of profit or loss in
proportion to the stage of completion of the contract. The stage of completion is assessed by reference to surveys of work
performed. When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised only to
the extent of contract costs incurred that are likely to be recoverable. Full provision is made for any loss in the year in which
it is first foreseen. Cost incurred towards future contract activity is classified as project work in progress.
Revenue from operations is measured at fair value of the consideration receivable or received, taking into account contractually
defined terms of payment and excluding taxes collected on behalf of the government.
In respect of contracts executed, the company accounts for income to the extend of work completed, on the basis of invoices
certified. Uncertified contract receipts are determined on technical estimates.
Material supplied by the clients in accordance with the terms of contract is not taken into account as contract receipts.
Prices, escalations and de-escalations are accounted as and when certified.
Sale of goods & Services:
Revenue from sale of goods is recognized when the Company transfers all significant risks and rewards of ownership to the
buyer, while the Company retains neither continuing managerial involvement nor effective control over the goods sold.
Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.
Interest and dividend:
Interest income is recognized using effective interest method.
Dividend income is recognized when the right to receive payment is established.
p. Employee benefit expenses
Short Term Employee benefits
The undiscounted amount of short-term employee benefits expected to be paid in exchange of the services rendered by
employees are recognized as an expense during the period when the employees render the services.
Post-Employment Benefits
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to
separate entities. The Company makes specified monthly contributions towards Provident Fund, State Insurance, and
Pension Scheme. The Company's contribution is recognised as an expense in the Statement of Profit and Loss during the
period in which the employee renders the related service.
The company also provides retirement benefits in the form of Gratuity on the basis of valuation, as at the Balance Sheet date.
Gratuity liability is covered by a Group Gratuity policy with life insurance Corporation of India.
Defined Benefit Plans
The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of
resignation/superannuation.
The company also provides retirement benefits in the form of Gratuity on the basis of valuation, as at the Balance Sheet date.
Gratuity liability is covered by a Group Gratuity policy with life insurance Corporation of India.
Re-measurement of Defined Benefit Plans in respect of Post-Employment are charged to other Comprehensive Income.
NOTES..........“44”
Sundry Debtors and Creditors & advance are subject to confirmation by the respective parties. Necessary adjustments in accounts
will be made in the year in which discrepancy, if any, may be noticed.
NOTES ..........“45”
Sundry Loan & Advances and other assets are, in the opinion of management stated at the amount realizable in the ordinary course
of business and provision for all known and determined liabilities are adequate and not in excess of the amounts reasonably
required.
NOTES ..........“46”
In accordance with Indian Accounting Standard (IND AS) 19 - “Employee Benefits” disclosures in respect of the Defined Benefit
Gratuity Plan (to the extent of information made available by LIC) are given below:
Effects due to COVID-19..........“47”
The company has evaluated the impact of COVID-19 resulting from:
a. the possibility of constraints to render services which may require revision of estimations of costs to complete the contract
because of additional efforts;
b. onerous obligations;
c. penalties relating to breaches of service level agreements, and
d. Termination or deferment of contracts by customers.
The company has concluded that the impact of COVID-19 is not material based on these estimates. Due to the nature of the
pandemic, the company continues to monitor developments to identify significant uncertainties relating to revenue in future periods
Rounding off..........“48”
Figures have been rounded off to the nearest rupee.
Reclassification and re-grouping...........“49”
Previous year figures have been regrouped / reclassified wherever necessary.
For and on behalf of the Board
For Govind Prasad & Co Conart Engineers Limited
Chartered Accountants (Jitendra S Sura) (Jimish J Sura)
(Govind Prasad) Chairman & Managing Director Executive Director (Finance)
Partner DIN - 00480172 DIN - 03096064
Membership No. 047948 (Kavaljitkaur Dhillon)
Firm Registration No. 114360W Company Secretary, ACS 53248
Mumbai Vadodara
Dated : 30th, May, 2024 Dated : 30th, May, 2024
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