Artefact Projects Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

This note provides a list of the significant accounting policies adopted in the preparation of these
financial statements of the Company. These policies have been consistently applied to all the years
presented, unless otherwise stated.

1.01 Basis of preparation

Compliance with Ind AS

i The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS)
notified under Section 133 of the Companies Act, 2013 (the Act) (Companies (Indian Accounting
Standards) Rules, 2015 and Companies (Indian Accounting Standards) Rules, 2016} and other
relevant provisions of the Act.

The financial statements up to year ended March 31, 2017 were prepared in accordance with
Indian GAAP, including the accounting standards notified under Companies (Accounting
Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.

The financial statements for the year ended 31st March, 2025 were the first financial statements
of the Company under Ind AS.
a Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following:
Defined benefit plans - plan assets measured at fair value; and
iii Current and non-current classification

All assets and liabilities have been classified as current and non-current as per the Company''s
normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

1.02 Foreign Currency Translation

i Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the
primary economic environment in which the Company operates ( the functional currency''). The
financial statements arc presented in Indian rupee (INR / Rs.), which is the Company''s functional
and presentation currency.

« Transaction and balances

Foreign currency transactions, if any are translated into the functional currency using the
exchange rates on the dates of the transaction. Foreign exchange gains and losses resulting from
the settlement of such transactions if any and from the translation of monetary assets and
liabilities denominated in foreign currencies at year end exchange rates are generally recognised in
profit or loss or Other Comprehensive Income.

All foreign exchange gains and losses are presented in the statement of profit and loss on a net
basis within other gains/ (losses),if any

1.03 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and is
Net of GST.

The Company recognises revenue when the amount of revenue accepted by client as per
contract. It is probable that future economic benefits will flow to the entity.

Revenue from services

Project Consultancy Income is recognized in the accounting period in which the services
arc rendered, and accepted and approved by client. The Services Provided and for Bills
submitted pending approval are considered as work in progress at cost . This includes
bills of previous years pending approval and accounted for as Revenue now considered as
work in progress as per the uniform accounting policy applicable therefore.

1.04 Income Tax

The income tax expense or credit for the period is the tax payable on the current period''s taxable
income based on the applicable income tax rate adjusted by changes in deferred tax assets and
liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively
enacted at the end of reporting period in India where the Company operates and generates taxable
income. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulations is subject to interpretation. It establishes provisions
where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial
statements. Deferred tax assets are recognised for all deductible temporary differences and
unused tax losses only if it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.

Current and deferred tax is recognised in profit or loss, except to the extent that: it relates to items
recognised in other comprehensive income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in equity, respectively.

1.05 Impairment of assets

Property, plant and equipment and other assets are tested for impairment whenever events or
changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its
recoverable amount, The recoverable amount is the higher of an asset''s fair value less costs of
disposal and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash inflows which are largely independent
of the cash inflows from other assets or groups of assets (cash-generating units).Non-financial
assets other than goodwill that suffered an impairment are reviewed for possible reversal of
impairment at the end of each reporting period.

1.06 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes
cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within
borrowings in current liabilities in the balance sheet.

1.07 Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest method, less provision for impairment.

1.08 Investments and other financial assets
Classification

The Company classifies its financial assets in the following measurement categories: -those to be
measured subsequently at fair value (through profit or loss), and -those measured at amortised
cost.The classification depends on the entity''s business model for managing the financial assets
and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded in profit or loss. For investment
in debt instrument, this will depend on the business model in which the investment is held. For
investments in equity instruments, this will depend on whether the Group has made an
irrevocable election at the time of initial recognition to account for the equity investment at fair
value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing
those assets changes.

Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a
financial asset not at fair value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction costs of financial assets carried
at fair value through profit or loss are expensed in statement of profit and loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Company''s business model for
managing the asset and the cash flow characteristics of the asset.

Equity instruments

The Company subsequently measures all equity investments at fair value. Dividends from such
investments are recognised in profit or loss as other income when the right to receive payments is
established. Changes in the fair value of financial assets at fair value through profit or loss are
recognised in other gain/ (losses) in the statement of profit and loss. Impairment losses (and
reversal of impairment losses) on equity investments measured at FVOCI are not reported
separately from other changes in fair value.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its
assets carried at amortised. For trade receivables , the company applies the simplified approach
permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be
recognised from initial recognition of the receivables.

Derecognition of financial assets

A financial asset is derecognised only when: The Company has transferred the rights to receive
cash flows from the financial asset or retains the contractual rights to receive the cash flows of the
financial asset, but assumes a contractual obligation to pay the cash flows to one or more
recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred
substantially all risks and rewards of ownership of the financial asset. In such cases, the financial
asset is derecognised. Where the entity has not transferred substantially all risks and rewards of
ownership of the financial asset, the financial asset is not derecognised.

Where the entity has neither transferred a financial asset nor retains substantially all risks and
rewards of ownership of the financial asset, the financial asset is derecognised if the Company has
not retained control of the financial asset. Where the Company retains control of the financial
asset, the asset is continued to be recognised to the extent of continuing involvement in the
financial asset.

1.09 Property, plant and equipment

Property, plant and equipment arc stated at historical cost less depreciation and impairment
losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of
the items.

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. The carrying amount of any
component accounted for as a separate asset is derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the reporting period in which they are incurred.
Transition to Ind As

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its
property, plant and equipment recognised as at April 1,2016 measured as per the previous GAAP
and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation methods on above

Depreciation on property, plant and equipment (other than leasehold land, leasehold
improvements, continuous process plant and machinery and vehicles) is calculated using the
straight-line method to allocate their cost, net of their residual values, over their estimated useful
lives as prescribed under Schedule II to the Companies Act, 2013, which approximate the useful
lives of the assets estimated by the management.

The residual values are not more than 5% of the original cost of the asset. The asset''s residual
values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting
period.

The residual values are not more than 5% of the original cost of the asset. The asset''s residual
values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting
period.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s
carrying amount is greater than its recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with earning amount.
These are included in profit or loss within other gains/ (losses).

1.10 Intangible assets

Acquired intangible assets are shown at historical cost. They have a finite useful life and are
subsequently carried at cost less accumulated amortisation and impairment losses, if any.
Amortisation methods and periods

The Company amortises intangible assets with a finite useful life using the straight-line method
over the following periods: Computer software: 3 years
Transition to Ind As

On transition to Ind AS, the Company has elected to continue with the carrying value of all of
intangible assets recognised as at April 1,2016 measured as per the previous GAAP and use that
carrying value as the deemed cost of intangible assets.

1.11 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the
end of financial year which are unpaid. The amounts are unsecured and are usually paid within 90
days of recognition. Trade and other payables are presented as current liabilities unless payment
is not due within 12 months after the reporting period. They arc recognised initially at their fair
value and subsequently measured at amortised cost using the effective interest method.

1.12 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in profit or loss over the period of the borrowings
using the effective interest method. Fees paid on the establishment of loan facilities are recognised
as transaction costs of the loan to the extent that it is probable that some or all of the facility will be
drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no
evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised
as a prepayment for liquidity services and amortised over the period of the facility to which it
relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial
liability that has been extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as
other gains/(losses). Borrowings are classified as current liabilities unless the Company has an
unconditional right to defer settlement of the liability for at least 12 months after the reporting
period. Where there is a breach of a material provision of a long-term loan arrangement on or
before the end of the reporting period with the effect that the liability becomes payable on demand
on the reporting date, the entity docs not classify the liability as current, if the lender agreed, after
the reporting period and before the approval of the financial statements for issue, not to demand
payment as a consequence of the breach.

1.13 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction
or production of a qualifying asset are capitalised during the period of rime that is required to
complete and prepare the asset for its intended use or sale. Qualifying assets are assets that
necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their
expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.
Other borrowing costs are expensed in the period in which they are incurred.

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Mar 31, 2024

Note 1 Significant accounting policies

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements of the Company. These policies have been consistently applied to all the years presented, unless otherwise stated.

1.01 Basis of preparation

Compliance with Ind AS

i The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS)

notified under Section 133 of tiie Companies Act, 2013 (the Act) (Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Rules. 2016} and other relevant provisions of the Act.

The financial statements up to year ended March 31, 2017 were prepared in accordance with Indian GAAP, including Lhe accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act

The financial statements for the year ended 31 st March,2018 were the first financial statements of the Company under Ind AS. it Historical cost convention

The financial statements have been prepared on a historical cost basis, except for the following: Defined benefit plans - plan assets measured at fair value; and iii. Current and non-current classificationAU assets and liabilities have been classified as current and non-current as per the Company''s normal operating cycle (twelve months) and other criteria set out in the Schedule III to the Act.

1.02 Foreign currency translation

i Functional and presentation currency

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates ( the functional currency''). The financial statements are presented in Indian rupee (INR / Rs.). which is the Company''s functional and presentation currency.

ii Tra nsaction a nd ha lances

Foreign currency Iransactions, if any arc translated into the functional currency using the exchange rates on the dates of the transaction. Foreign exchange gains and losses resulting from the settlement of such transactions if any and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates arc generally recognised in profit or loss or Other Comprehensive Income.

All foreign exchange gains and losses are presented in the statement of profit and loss on a net basis within other gains/(losses),if any

1.03 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable and is Net of GST.The Company recognises revenue when the amount of revenue can be reliably accepted by client as per contract. It is probable that future economic benefits will flow to the entity.

Revenue from services

Project Consultancy Income is recognized in the accounting period in which the services are rendered, and accepted and approved by client.

1.04 Income Tax

The income lax expense or credit for the period is the tax payable on the current period''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of reporting period in India where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their cariying amounts in the financial statements.Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

1.05 Impairment of assets

Property, plant and equipment and other assets tire tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount, The recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets arc grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).Non-financia! assets other than goodwill that suffered an impairment are reviewed for possible reversal of impairment at the end of each reporting period.

1.06 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

1.07 Trade receivables

Trade receivables arc recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

1.08 Investments and other financial assets

Classification

The Company classifies its financial assets in the following measurement categories: -those to be measured subsequently at fair value (through profit or loss), and -those measured at amortised cost.The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash Hows.

For assets measured at fair value, gains and losses will be recorded in profit or loss. For investment in debt instrument, this will depend on the business model in which the investment is held. For investments in equity instruments, this will depend on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at fail-value through other comprehensive income.

The Company reclassifies debt investments when and only when its business model for managing those assets changes.

Measurement

At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in statement of profit and loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash How characteristics of the asset.

Equity instruments

The Company subsequently measures all equity investments at fair value. Dividends from such investments are recognised in profit or loss as other income when the right to receive payments is established.Changes in the fair value of financial assets at fair value through profit or loss are recognised in other gain/ (losses) in the statement of profit and loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.

Impairment of financial assets

The company assesses on a forward looking basis the expected credit losses associated with its assets carried at amortised. For trade receivables . the company applies the simplified approach permitted by Ind AS 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

A financial asset is derecognised only when: The Company has transferred the rights to receive cash flows from the financial asset or retains the contractual rights to receive the cash Hows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

Where the Company has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is derecognised. Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not derecognised.

Where the entity'' has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Company has not retained control of the financial asset. Where the Company retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

1.09 Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.

Transition to In cl As

On transition to Ind AS, the Company has elected to continue with the earning value of all of its property, plant and equipment recognised as at April 1,2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation methods on above

Depreciation on property, plant and equipment (other than leasehold land, leasehold improvements, continuous process plant and machinery and vehicles) is calculated using the straight-line method to allocate their cost, net of their residual values, over their estimated useful lives as prescribed under Schedule II to the Companies Act, 2013, which approximate the useful lives oft he assets estimated by the management.

The residual values are not more than 5% of the original cost of the asset. The asset''s residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

The residual values are not more than 5% of the original cost of the asset. The asset''s residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with earning amount. These are included in profit or loss within other gains/(losses).

1.10 Intangible assets

Acquired intangible assets arc shown at historical cost. They have a finite useful life and arc subsequently carried at cost less accumulated amortisation and impairment losses, if any. Amortisation methods and periods

The Company amortises intangible assets with a finite useful life using the straight-line method over the following periods: Computer software: 3 years Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of intangible assets recognised as at April 1,2016 measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

1.11 Trade and other payables

These amounts represent liabilities for goods and sendees provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 90 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.

1.12 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings arc subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity'' services and amortised over the period of the facility to which it relates.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the earning amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other gains/(losses).

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. Where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the entity does not classify the liability as current, if the lender agreed, after the reporting period and before the approval of the financial statements for issue, not to demand payment as a consequence of the breach.

1.13 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. Other borrowing costs are expensed in the period in which they are incurred.

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Mar 31, 2017

NOTE 1

SIGNIFICANTACCOUNTING POLICIES

1.01 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under relevant provisions of the Companies Act, 2013 as adopted consistently by the company. The Financial Statements have been prepared on a Going Concern basis under the historical cost convention.

1.02 USEOFESTIMATES

The preparation of financial statements in conformity with Indian GAAP required judgments, estimates & assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.03 INVENTORIES

Inventories represents the WIP in respect of Project Management Consultancy Services in progress and remained inbuilt. Inventories have been valued at cost.

1.04 REVENUERECOGNITION

Income from Consultancy and Infrastructure project services are recognized in accordance with the Contract/Agreement entered into. Revenues are recognized when it is earned and no significant uncertainty exists as to its ultimate collection and includes, service tax, wherever applicable. Interest income is recognized on a time proportion basis. Dividend is considered when the right to receive is established.

1.05 FIXEDASSETS-TANGIBLEASSETS

Tangible Assets are stated at cost net of Central Value Added Tax & Value Added Tax credits less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

1.06 FIXEDASSETS-INTANGIBLEASSETS

Intangible Assets are stated at cost less accumulated amortization. Software’s which is not an integral part of the related hardware is classified as an Intangible asset and is amortized over the useful life of three years on Straight Line Basis.

1.07 DEPRECIATION

a) Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method over the useful life of the assets and in the manner prescribed in Schedule II to the Companies Act, 2013.

b) Additions, which form integral part of the fixed assets, are depreciated during the residual useful life of the asset.

c) In respect of fixed assets whose actual cost does not exceed Rs, 5000, depreciation is provided at 100% in the year of addition.

1.08 IMPAIRMENTOFASSETS

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.09 INVESTMENTS

Long-term investments are carried at cost. Current Investments are carried at the lower of cost and quoted/ fair value computed script wise. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary.

1.10 BORROWINGCOSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets (Net of income earned on temporary deployment of funds) are capitalized as part of the cost of such assets. Qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.11 EMPLOYEE’SBENEFITS

(i) Short-term employee benefits are recognized as an expense at the un-discounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense on the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

1.12 FOREIGNCURRENCYTRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary items denominated in foreign currencies at the year-end are restated at year-end rates. Non-Monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.13 ACCOUNTING FORJOINTVENTURE OPERATIONS

The financial statements reflect the share of the Company’s assets and liabilities as well as income and expenditure of Joint Venture Operations which are accounted for according to the participating interest of the Company as per the various Joint Venture Agreements on a line by line basis along with similar items in the Company’s financial statements.

1.14 DERIVATIVE INSTRUMENTS

In respect of derivative contracts, premium paid gains / losses on settlement and provision for losses, if any, are recognized in the Statement of Profit and Loss.

1.15 PROVISION FOR CURRENTAND DEFFERED 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 differences” between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable/ virtual certainty that asset will be realized against future taxable profits.

1.16 PROVISION, CONTINGENT LIABILITIESAND CONTINGENTASSETS

Provisions involving substantial degree of estimation in measurement are 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 not recognized but are disclosed in the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.17 SHAREISSUEEXPENSES

Share issue expenses are adjusted against the Securities Premium Account.

2.03 Rights to Equity Shareholders

The Company has only one class of equity shares having face value of K 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the company, the equity shareholders will be entitled to receive any of remaining assets of the company after distribution of all preferential amounts . The distribution will be in proportion to the number of equity shares held by the shareholders.

4.01 Term Loan from a Bank referred to above and K 9,999,996 included in current maturity of long term debts in Note No. 9 are Secured against Mortgage of Building and Hypothecation of other Fixed Assets, Equipments, Hardwires and Software’s. The Term loan is repayable in 120 equal monthly installments of K 8,33,333 (only principal) starting from 31^st July, 2015 and ending on 30^th September, 2025 and carries interest @ 14.50% p.a.

4.02 The above term loan from a bank is guaranteed by a Director and two of his relatives in their personal capacity.

4.03 Vehicle Loan referred to above and K 3,70,837 included in current maturity of long term debts in Note No. 9 are secured against hypothecation of the specific vehicle financed and is repayable in 22 monthly installments of K 35,430 (including interest) starting from 31^st March 2017 as per repayment schedule.

7.01 Working Capital Loan from a Bank to the extent of:

(i) K 82,074,292 referred to above are secured by way of hypothecation of whole of the movable properties Including Book Debts and Assets both present and future and are further secured collaterally by mortgage of immovable properties of the Company and also guaranteed by one of the director and two of his relatives in their personal capacity and by a Corporate Guarantee of a Company i.e. Vidarbha Holdings Ltd.

NOTE 8

TRADE PAYABLES - TOTAL OUTSTANDING DUES OF MICRO AND SMALL ENTERPRISES

The Company has sent letters for getting confirmation from all the creditors regarding their status as Micro Small and Medium Enterprises (MSME), however the Company has received response only from few creditors stating that they do not fall under MSME category. Accordingly Micro, Small and Medium Enterprises under the Micro, Small and Medium Enterprises Development Act, 2006 have been determined based on the information available with the Company.

* Does not include any amount due and outstanding to be credited to Investor Education & Protection Fund.

** Mainly includes payable to employees, joint ventures and provision for expenses, etc.

9.01 Statutory Liabilities includes pending reconciliation of service tax collected and paid, the company has not filed the service tax returns since April, 2015. The company has recognized the interest on default in payment of service tax in the financial statements. Any other impact on the financial statements on account of above which cannot be quantified at this stage and therefore will be recognized upon the completion of reconciliation and filing of returns of service tax.

12.02 Refer Note No 1.08 for the basis of Valuation.

12.03 During the year, the company has sold 40 Lacs Equity Shares of Artefact Infrastructure Limited, a wholly owned subsidiary company consequently company''s investment in Artefact Infrastructure Limited reduced to 18.37% and Artefact Infrastructure Limited ceased to be a Subsidiary of the company w.e.f. January 02^nd 2017.

13.01 MAT Credit Entitlement under section 115JB of the Income Tax Act, 1961 (The Act) is allowed to be carried forward for being set off against the future tax liabilities computed in accordance with the provisions of the Act other than section 115JB, in next fifteen years from the payment of MAT. During the year ended 31^st March, 2017 the Company is liable to pay the income tax computed as per the provisions, other than under section 115 JB of the Act and accordingly as advised in Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under the Income Tax Act, 1961” issued by the Institute of Chartered Accountants of India, the Company has utilized the MAT credit to the extent of K 29,401. The aggregate MAT Credit Entitlement available to company as at 31^st March, 2017is K 6,870,035 (Previous Year - K 6,899,436).

15.01 Outstanding for a period exceeding six months amounting to K 99,246,872 mainly includes amount receivable from Government Departments, predominantly from NHAI, MMRDA, etc and are in relation to the execution of contract services, deployment of additional personnel, price escalations etc. The services have been provided on express written orders. The procedural delays in respect of reconciliation of accounts and disbursement of funds at government departments are normal. The Management is of the view that all these amounts are good for recovery and no further provision for doubtful debts is required.

Above loans are given for business purpose.

17.02 All the projects undertaken by the Meinhardt Singapore Pte. Ltd-Artefact Projects JV were completed in the year 2011-12, during the previous financial year JV partners decided to dissolve the JV after completion of due statutory compliance if any required. the board of Directors of the Company has approved the said decision in their meeting dated 09*'' February, 2016 and accordingly the Company has withdrawn the capital from the JV. The dissolution of JV is pending as on 31^st March, 2017

17.03 The Company has not filled the Service Tax Returns since 1^st April, 2015. Balance with the Cenvat Excise includes K 13,645,434/- outstanding for more than six months, in respect of which the Company has been advised by the consultants that the same is eligible for Cenvat Credit and is good for recovery.

17.04 Other Loans and Advances includes K 7,272,300 recoverable from an individual with whom Company has entered into Financial Sponsorship Agreement for higher education and as per the terms, after completing education he was suppose to join company for rendering Project Management Consultancy Services or repay the full amount if does not render the services to the company. However from last 2 years he has neither joined the services nor confirmed the company to repay the amount. Management is of the view that amount is good for recovery and hence no provision is required.

Defined Benefit Plan

The employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a Trust maintained with Life Insurance Corporation of India (LIC). The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation.

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Mar 31, 2015

1.01 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 as adopted consistently by the Company. The financial statements have been prepared on a going concern basis under the historical cost convention.

1.02 USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.03 REVENUE RECOGNITION

Income from Mining Contracts, Consultancy & Infrastruture project services and Engineering Procurement Construction Contracts are recognised in accordance with the Contract/Agreement entered into. Revenues are recognised when it is earned and no significant uncertainty exists as to its ultimate collection and includes, service tax, wherever applicable. Interest income is recognised on a time proportion basis. Dividend is considered when the right to receive is established.

1.04 FIXED ASSETS - TANGIBLE ASSETS

Tangible Assets are stated at cost net of Central Value Added Tax and Value Added Tax Credits, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

1.05 INTANGIBLE ASSETS

Intangible Assets are stated at cost less accumulated amortisation. Softwares which is not an integral part of the related hardware is classified as an Intangible asset and is amortised over the useful life of three years on Straight Line Basis.

1.06 DEPRECIATION

a) Depreciation on fixed assets is provided to the extent of depreciable amount on Straight Line Method over the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

b) Additions, which form integral part of the fixed assets, are depreciated during the residual useful life of the asset.

c) In respect of fixed assets whose actual cost does not exceed Rs. 5000, depreciation is provided at 100% in the year of addition.

1.07 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.08 INVESTMENTS

Long-term investments are carried at cost. Current Investments are carried at the lower of costs and quoted/ fair value computed script wise. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary.

1.09 BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets (Net of income earned and deployment of funds) are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.10 EMPLOYEE'S BENEFITS

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense on the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

1.11 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary items denominated in foreign currencies at the year-end are restated at year-end rates. Non-Monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 ACCOUNTING FOR JOINT VENTURE OPERATIONS

The financial statements reflect the share of the Company's assets and liabilities as well as income and expenditure of Joint Venture Operations which are accounted for according to the participating interest of the Company as per the various Joint Venture Agreements on a line by line basis along with similar items in the Company's financial statements.

1.13 DERIVATIVE INSTRUMENTS

In respect of derivative contracts, premium paid gains / losses on settlement and provision for losses, if any; are recognised in the Statement of Profit and Loss.

1.14 PROVISION FOR CURRENT AND DEFFERED 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 differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable / virtual certainty that the assets will be realised against future taxable profits.

1.15 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised 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 not recognised but are disclosed in the financial statements. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.16 SHARE ISSUE EXPENSES

Share issue expenses are adjusted against the Securities Premium Account.

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Mar 31, 2014

1.01 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants Of India and the provisions of the Companies Act, 1956

1.02 USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.03 REVENUE RECOGNITION

Income from Consultancy and Infrastructure project services are recognised in accordance with the Contract/Agreement entered into. Revenues are recognised when it is earned and no significant uncertainty exists as to its ultimate collection and includes, service tax, wherever applicable. Interest income is recognised on a time proportion basis. Dividend is considered when the right to receive is established.

1.04 FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation, net of Central Value Added Tax. All costs including financing cost till the assets ready to use are capitalised.

1.05 INTANGIBLE ASSETS

Intangible Assets are stated at cost less accumulated amortisation. Softwares are amortised over a period of three years.

1.06 DEPRECIATION

Depreciation on fixed assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956. Additions, which form integral part of the fixed assets, are depreciated during the residual useful life of the asset. In respect of fixed assets whose actual cost does not exceed Rs. 5000, depreciation is provided at 100% in the year of addition.The leasehold improvements has been depreciated over the lease period.

1.07 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.08 INVESTMENTS

Long-term investments are carried at cost. Current Investments are carried at the lower of costs and quoted/ fair value computed script wise. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary.

1.09 BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets (Net of income earned and deployment of funds) are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.10 EMPLOYEE''S BENEFITS

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense on the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

1.11 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary items denominated in foreign currencies at the year-end are restated at year-end rates. Non-Monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 ACCOUNTING FOR JOINT VENTURE OPERATIONS

The financial statements reflect the share of the Company''s assets and liabilities as well as income and expenditure of Joint Venture Operations which are accounted for according to the participating interest of the Company as per the various Joint Venture Agreements on a line by line basis along with similar items in the Company''s financial statements.

1.13 DERIVATIVE INSTRUMENTS

In respect of derivative contracts, premium paid gains / losses on settlement and provision for losses, if any; are recognised in the Statement of Profit and Loss.

1.14 PROVISION FOR CURRENT AND DEFFERED 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 differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that asset will be realized in future.

1.15 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised 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 not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.16 SHARE ISSUE EXPENSES

Share issue expenses are adjusted against the Securities Premium Account.

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Mar 31, 2013

1.01 BASISOF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles, accounting standards issued by the institute of Chartered Accountants Of India and the provisions of the Companies Act, 1956

1.02 USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the dale of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.03 REVENUE RECOGNITION

Income from Consultancy and Infrastructure project services are recognised in accordance with the Contract/Agreement entered into. Revenues are recognised when it is earned and no significant uncertainty exists as to its ultimate collection and includes, service tax, wherever applicable. Interest income is recognised on a time proportion basis. Dividend is considered when the right to receive is established.

1.04 FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation, net of Central Value Added Tax. All costs including financing cost till the assets ready to use are capitalised.

The leasehold improvements has been depreciated over the lease period.

1.05 INTANGIBLE ASSETS

Intangible Assets are stated at cost less accumulated amortisation. Softwares are amortised over a period of three years.

1.06 DEPRECIATION

Depreciation on fixed assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956. Additions, which form integral part of the fixed assets, are depreciated during the residual useful life of the asset. In respect of fixed assets whose actual cost does not exceed Rs. 5000, depreciation is provided at 100% in the year of addition.

1.07 IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.08 INVESTMENTS

Long-term investments are carried at cost. Current Investments are carried at the lower of costs and quoted/ fair value computed script wise. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary.

1.09 BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or constmction of qualifying assets (Net of income earned and deployment of funds) are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.10 EMPLOYEE''S BENEFITS

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered. (ii) Post employment and other long term employee benefits are recognized as an expense on the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable detennined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

1.11 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary items denominated in foreign currencies at the year-end are restated at year-end rates. Non-Monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 ACCOUNTING FOR JOINT VENTURE OPERATIONS

The financial statements reflect the share of the Company''s assets and liabilities as well as income and expenditure of Joint Venture Operations which are accounted for according to the participating interest of the Company as per the various Joint Venture Agreements on a line by line basis along with similar items in the Company''s financial statements,

1.13 DERIVATIVE INSTRUMENTS

In respect of derivative contracts, premium paid gains / losses on settlement and provision for losses, if any; are recognised in the Statement of Profit and Loss.

1.14 PROVISION FORCURRENT AND DEFFERED 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 differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The defeircd tax asset is recognized and carried forward only to the extent that there is virtual certainty that asset will be realized in future.

1.15 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised 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 not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.16 SHARE ISSUE EXPENSES

Share issue expenses are adjusted against the Securities Premium Account.

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Mar 31, 2012

1.01 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956

1.02 USE OF ESTIMATES The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.03 REVENUE RECOGNITION Income from Consultancy and Infrastructure project services are recognised in accordance with the Contract/Agreement entered into. Revenues are recognised when it is earned and no significant uncertainty exists as to its ultimate collection and includes, service tax, wherever applicable. Interest income is recognised on a time proportion basis. Dividend is considered when the right to receive is established.

1.04 FIXED ASSETS Fixed Assets are stated at cost less accumulated depreciation, net of Central Value Added Tax. All costs including financing cost till the assets ready to use are capitalised.

1.05 INTANGIBLE ASSETS "Intangible Assets are stated at cost less accumulated amortisation. Softwares are amortised over a period of three years."

1.06 DEPRECIATION Depreciation on fixed assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956. Additions, which form integral part of the fixed assets, are depreciated during the residual useful life of the asset. In respect of

fixed assets whose actual cost does not exceed Rs. 5000, depreciation is provided at 100% in the year of addition.

1.07 IMPAIRMENT OF ASSETS An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

1.08 INVESTMENTS

Long-term investments are carried at cost. Current Investments are carried at the lower of costs and quoted/ fair value computed script wise. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary.

1.09 BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets (Net of income earned and deployment of funds) are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to Statement of Profit and Loss.

1.10 EMPLOYEE’S BENEFITS

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense on the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the Statement of Profit and Loss.

1.11 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary items denominated in foreign currencies at the year-end are restated at year-end rates. Non-Monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.12 ACCOUNTING FOR JOINT VENTURE OPERATIONS

The financial statements reflect the share of the Company’s assets and liabilities as well as income and expenditure of Joint Venture Operations which are accounted for according to the participating interest of the Company as per the various Joint Venture Agreements on a line by line basis along with similar items in the Company’s financial statements.

1.13 DERIVATIVE INSTRUMENTS

In respect of derivative contracts, premium paid gains / losses on settlement and provision for losses, if any; are recognised in the Statement of Profit and Loss.

1.14 PROVISION FOR CURRENT AND DEFFERED 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 differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that asset will be realized in future.

1.15 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised 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 not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

1.16 SHARE ISSUE EXPENSES

Share issue expenses are adjusted against the Securities Premium Account.

2.03 Rights to Equity Shareholders

The Company has only one class of equity share having face value of Rs. 10 per share. Each shareholder is eligible for one vote per share held

In the event of liquidation of the company , the equity shareholders will be entitled to receive any of remaining assets of the company after distributiion of all preferential amounts . The distribution will be in proportion to the number of equity shares held by the shareholder.

2.04 Reserved Shares :

The Convertible Share Warrants holders have the option to convert their Share Warrants into Nil Equity Share (Previous Year 10,22,400) of Rs. 10 each at the Terms and Condition referred in Note No. 4.

NOTE 4

MONEY RECEIVED AGAINST SHARE WARRANTS

As approved by the Shareholders in the Extra- Ordinary General Meeting held on February 23, 2010, the Company had alloted 1,022,400 Convertible Warrants on preferential basis @ Rs. 101 each to be converted into one fully paid-up equity share of the Company of Rs. 10 each at a premium of Rs. 91 per equity share at any time prior to 18 months from the date of allotment of warrants i.e April 27, 2010. During the year the warrants holders have exercise option in respect of 547,400 warrants and 547,400 Equity Shares are allotted. In respect of 475,000 warrants, warrant holders did not exercise their option, accordingly Rs.11,993,750 being the amount received against these Convertible Share Warrants has been forfeited by the Company and credited to Capital Reserve.

5.01 Term Loan from a Bank referred to above and Rs.14,834,402 included in current maturity of long term debts in Note No.9 is Secured against Mortgage of Building and Hypothecation of other Fixed Assets, Equipments, Hardwares and Softwares. The loan is repayable in 42 equal monthly installments (including interest) of Rs. 2,373,415 as per repayment schedule, ending on September 6, 2015 and carry a prevailing interest rate @ 16% p.a.

5.02 Guaranteed by Directors or others :

The above term loan from a bank is guaranteed by some of the Directors in their personal capacity and also covered by a Corporate Guarantee of a Company i.e. Vidharbha Holding Limited.

5.03 Vehicle Loan referred to above and Rs.315,975 included in current maturity of long term debts in Note No.9 is secured by the hypothecation of the specific vehicle financed. The loan is repayable in 43 monthly equal instalments (including interest) of Rs. 34,570 as per repayment schedule.

7.01 Working Capital Loans form Banks

(i) aggregating to Rs.87,888,880 (Previous Year Rs. 81,245,319) referred to above are secured by the hypothecation of whole of the movable properties Including Book Debts and Assets both present and future, and are further secured collaterally by mortgage of immovable properties of the Company, guaranteed by some of the directors in their personal capacity and also covered by a Corporate Guarantee of a Company i.e. Vidharbha Holding Ltd.

(ii) aggregating to Rs.20,252,589 (Previous Year Rs. Nil) referred to above are secured by the Pledge of Fixed Deposit with Bank (Refer Note No. 15.01).

EMPLOYEES BENEFIT EXPENSES

20.01 Salaries, Wages and Allowance includes Remuneration to Executive Directors of Rs. Nil (Previous Year Rs. 2,263,505) paid in excess of the amount eligible under schedule XIII of the Companies Act, 1956. The Company has already applied for the approval to the Central Government.

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Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles, accounting standards issued by the Institute of Chartered Accountants Of India and the provisions of the Companies Act, 1956

2. USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

3. REVENUE RECOGNITION

Income from Consultancy and Infrastructure project services are recognised in accordance with the Contract/Agreement entered into. Revenues are recognised when it is earned and no significant uncertainty exists as to its ultimate collection and includes, service tax, wherever applicable.

4. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation, net of Central Value Added Tax. All costs including financing cost till commencement of commercial production are capitalised.

5. INTANGIBLE ASSETS

Intangible Assets are stated at cost less accumulated amortisation. Softwares are amortised over a period of three years.

6. DEPRECIATION

Depreciation on fixed assets has been provided on Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act 1956. Additions, which form integral part of the fixed assets, are depreciated during the residual useful life of the asset. In respect of fixed assets whose actual cost does not exceed ?. 5000, depreciation is provided at 100% in the year of addition.

7. INVESTMENTS

Long-term investments are carried at cost. Current Investments are carried at the lower of costs and quoted/fair value computed script wise. Provision for diminution in the value of long-term investments is made only if such decline is other than temporary.

8. BORROWING COSTS

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

9. EMPLOYEES BENEFITS

(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

(ii) Post employment and other long term employee benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to the profit and loss account.

10. FOREIGN CURRENCYTRANSACTION

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. Monetary items denominated in foreign currencies at the year-end are restated at year-end rates. Non-Monetary foreign currency items are carried at cost. Any income or expense on account of exchange difference either on settlement or on translation is recognized in the Profit and Loss account.

11. TAXATION

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 differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that asset will be realized in future

12. ACCOUNTING FOR JOINT VENTURE OPERATIONS

The financial statements reflect the share of the Companys assets and liabilities as well as income and expenditure of Joint Venture Operations which are accounted for according to the participating interest of the Company as per the various Joint Venture Agreements on a line by line basis along with similar items in the Companys financial statements.

13. DERIVATIVE INSTRUMENTS

In respect of derivative contracts, premium paid gains / losses on settlement and provision for losses, if any; are recognised in the Profit and Loss Account.

14. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

15. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognised 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 not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.

Notes:

1 Bracket indicates cash outflow.

2 The above cash flow statement has been prepared under the "Indirect Method" as set out in the Accounting Standard 3 - "Cash Flow Statement" as notified by Companies (Accounting Standard) Rules, 2006.

3 Cash And Cash Equivalents At The End Of The Year includes deposits with banks aggreagating to Rs. 98,32,000/- which are pledged against bank guaranteesw and overdraft.