i Basis of Preparation
These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian
GAAP), including the Accounting Standards notified under Section 133 of the Companies Act, 2013 read togather with paragraph 7
of the companies (Accounts) rules 2014 and companies (accounting standards) Rules, 2021 (as amended from time to time). The
financial statements have been prepared on going concern on an accrual basis and under the historical cost convention. The
financial statements are presented in Indian rupees and rounded off to the nearest lacs.
ii Use of estimates
The preparation of financial statements requires the management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and disclosure of contingent liabilities, at the end of the reporting
period. Although, these estimates are based on the management's best knowledge of current events and actions, uncertainty about
these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
iii Property, Plant and Equipment and Intangible assets
Property, Plant and Equipment
Property, plant and equipment is stated at acquisition cost ner of accumulated depreciation and accumulated impairment losses, if
any. Cost of acquisition or construction of property, plant and equipment comprises its purchase price including import duties and
non-refundable purchase taxes after deducting trade discounts, rebates and any directly attributable cost of bringing the item to its
working condition for its Intended use.
a. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only 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. All other repairs and maintenance cost are charged to the standalone statement of profit and loss during the period in
which they are incurred.
b. Gains or losses that arise on disposal or retirement of an asset are measured as the difference between net disposal proceeds
and the carrying value of property, plant and equipment and are recognized in the statement of profit and loss when the same in
derecognized.
Intangible assets
Acquired intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if
any. 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 amortisation period and the amortisation method are reviewed at least at each financial year end. If the
expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly.
iv Depreciation on property, plant and equipment
Depreciation is calculated on pro rata basis on written down value method based on estimated useful life prescribed in Schedule II
of the Companies Act, 2013. Free hold land is not depreciated.
The Company has adopted Schedule II to the Companies Act, 2013 which requires identification and determination of separate
useful life for each major component of the property, plant and equipment, if they have useful life that is materially different from
that of the remaining asset. (Component Accounting).
Depreciation on addition to tangible assets is provided on pro-rata basis from the date the assets are ready for intended use.
Depreciation on sale/discard from tangible assets is provided for upto the date of sale, deduction or discard of tangible assets as
the case may be.
v Impairment of Assets
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 is recognised wherever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the assets' net selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value at the weighted average cost of capital.
After impairment, depreciation/amortization is provided on the revised carrying amount of the asset over its remaining useful life.
vi Foreign currency translation
Initial recognition:
Foreign currency transactions are recorded in the reporting currency by applying the exchange rate between the reporting currency
and the foreign currency at the date of the transaction.
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; non-monetary items
which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates
that existed when such values were determined.
Exchange differences:
Exchange differences arising on the settlement of monetary items or on reporting the Company's monetary items at rates different
from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as
income or as expenses in the year in which they occur.
vii Revenue recognition
Revenue from Operations:
(i) The Company recognizes revenue for the goods and services rendered on the basis of time and material contracts. Revenue
from time and material contracts is recognised as the services are rendered by the Company in accordance with the terms of
agreement with the customer.
Other Operational Revenue:
(i) All other revenues are recognized only when collectability of the resulting receivable is reasonably assured and related goods /
services are transferred to the customer.
ii) Revenue is reported net of discounts, if any.
Other Income:
i) Interest income is accounted on accrual basis as per applicable interest rates and on time proportion basis taking into account
the amount outstanding.
ii) Dividend income is accounted in the year in which the right to receive the same is established.
iii) Insurance claims are accounted for on cash basis.
viii Investment
Non-Current Investment
Non-current investments are investments intended to be held for a period of more than a year. Non-current investments are carried
individually at cost less provision for diminution, other than temporary, in the value of such investments.
Current Investment
Current investments are investments intended to be held for a period of less than a year. Current investments are stated at the
lower of cost and market value, determined on an individual investment basis.
ix Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposits with banks. Bank overdrafts are shown within borrowings in
current liabilities in balance sheet.
x Inventories and Work in progress
Raw Materials, Construction Materials and Stores &Spares are valued at lower of weighted average cost or net realizable value.
Cost includes Direct Material, work expenditure, labour cost and appropriate overheads excluding refundable duties and taxes.
Cost of materials utilised in the contract work, which is not reached certain level, not quantified, and qualified for billing is
considered as work in progress at the end of the reporting period.
Provision of obsolescence on inventories is considered on the basis of management's estimate based on demand and market of
the inventories.
Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the
estimated costs necessary to make the sale.
xi Income taxes
Tax expense for the period comprises of current tax, deferred tax and Minimum alternate tax credit considered in determining the
net profit or loss for the year.
Current tax
Provision for current tax is recognized on the basis of estimated taxable income for the current accounting year in accordance with
the Income-tax Act, 1961.
Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts,
and there is an intention to settle the asset and the liability on a net basis.
Deferred tax
The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws
that have been substantively enacted as of the reporting date.
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only to the extent
there is reasonable certainty that the assets can be realised in future; however, where there is unabsorbed depreciation or carry
forward of losses, deferred tax assets are recognised only if there is a virtual certainty of realisation of such assets. Deferred tax
assets are reviewed at each balance sheet date and are written-down or written up to reflect the amount that is reasonably/virtually
certain (as the case may be) to be realised.
At each reporting date, the Company reassesses the unrecognized deferred tax assets, if any.
Minimum alternate tax
Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The Company recognizes
MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax
during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. In the year in which the Company
recognizes MAT credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum
Alternative Tax under the Income-tax Act, 1961, the said asset is created by way of credit to the Statement of Profit and Loss and
shown as “MAT Credit Entitlement.” The Company reviews the “MAT credit entitlement” asset at each reporting date and writes
down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.
xii Leases
Operating leases - As a lessee
Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating
leases. Payments made under operating leases are charged to Statement of Profit and Loss on a straight-line basis over the period
of lease.
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