Notes forming part of accounts - 31.03.2015

Note-1. BUSINESS PROFILE:

Consolidated Construction Consortium Ltd. (The Company) is a public limited company incorporated under the provisions of the Companies Act., and its shares are listed in two Stock Exchanges in India (BSE and NSE). The company is an integrated turnkey construction service provider having pan India brsence with expertise in construction design engineering, procurement, construction and project management. We also provide construction alliedservices such as Mechanical &ElectricalPlumbing, Fire Fighting, Heating! ventilation and air conditioning, interior fit out services and glazing solutions. The Company also caters to ^requirements of Readymix concrete, Solid blocksand br-cast items for clients.

The company has promoted wholly owned subsidiaries to carry on the business of glazing, interiors, power, infrastructure and sector specific SEZ services.

Note-2 SIGNIFICANT ACCOUNTING POLICIES:

2.1 Basis of Preparation and Use of Accounting Estimates:

The financial statements are brpared under the Historical Cost convention, on accrual basis of accounting and in accordance with Generally Accepted Accounting Principles in India (IGAAP) including the Accounting standards notified under the provisions of Companies Act, 2013.

Further, the guidance notes / announcements issued by the institute of Chartered accountants of India (ICAI) are also considered, wherever applicable except to the extent where compliance with other statutory promulgations viz. SEBI Guidelines, override the same requiring a different treatment.

The brparation of Financial Statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of income and expenses for the period, the reported balances of Assets and Liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include useful lives of tangible and intangible fixed assets, contract costs expected to be incurred to complete construction contracts, provision fordoubtful debts income taxes and future obligations under the employee retirement benefit plans, etc. Actual results could differfrom those estimates and differences, if any, are recognized in the period in which results are known.

2.2 Presentation of Financial Statements

The Balance sheet and statement of profit and loss are brpared in the format brscribed in the Schedule III to the Companies Act, 2013.The Cash Flow Statement has been brpared and brsented as per the requirements of Accounting Standard (AS) 3 "Cash Flow Statements". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as brscribed in the Schedule III to the Act, are brsented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards and the Listing Agreement.

With respect to Herve Pomerleau - CCCL, a joint venture wherein the company is having substantial shareholding, in line with principle of substance over form, its income from operations and it's related expenditure together with the assets and liabilities are grouped under respective heads in the financial statements of the company and the share of profit/(loss) of the other joint venture is dealt with appropriately.

2.3 Revenue Recognition:

a. Revenue from Construction Contracts:

i. Revenue recognition and valuation of contract WIP are as per Accounting Standard 7 -Construction Contracts

ii. Fixed Price Contracts: Contract revenue is recognized only to the extent of cost incurred till such time the outcome of the job cannot be ascertained reliably. When the outcome of the contract is ascertained reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using the percentage of completion method which are duly netted for applicable taxes.

iii. Stage / percentage of completion is determined with reference to the proportion that contract costs incurred for work performed upto the reporting date bear to the estimated total contract costs or surveys of work performed depending on the nature of the contract.

iv. Stage / Percentage of completion is determined with reference to the Certificates given by the clients/management as well as on the billing schedule agreed with them, for the value of work done during the year.

v. Valuation of Contract WIP:

At Realizable Sale Value on Percentage Completion method in respect of contracts where the outcome of the contract can be estimated reliably. Where the outcome cannot be estimated reliably, no profit is being recognized. Expected losses on contracts are assessed periodically and recognized immediately.

b) Sales /Service:

i. Sale of building products exclude the respective States' VAT and are stated net of discounts recognized when the substantial risks and rewards of ownership are transferred to the buyer under the terms of the contract

ii. Service Income from designing charges excludes applicable Service Tax and are stated net of discounts.

c) Other Operational Revenue

Other operational revenue rebrsents income earned from the activities incidental to the business and is recognized when the right to receive the income is established as per the terms of the contract

d) Other Income

I. Dividends on Investments are accounted on the basis of declaration of dividends on the underlying investments.

II. Interest income is recognized using the time proportion method taking into account the amounts invested and the applicable rate of interest.

e) Other items of income are accounted as when the right to receive arises.

f) Profit or Loss on Contracts executed by Joint ventures under profit sharing arrangements (being jointly controlled entities, in terms of Accounting Standards 27, "Financial reporting of Interests in Joint ventures")' is accounted as and when the same is determined by the Joint Venture. Revenue from services rendered to such Joint ventures is accounted on accrual basis. In determining this policy due weightage is given to the principle of Substance over Form.

2.4. Employee Benefits:

Liability for employee benefits, both short and long term, for brsent and past services which are due as per the terms of employment and as required by law are recordedin accordance with Accounting Standard (AS) 15 (Revised) "Employee Benefits" issued bythe Institute of Chartered Accountants of India.

a. Gratuity: Gratuity is a defined benefit plan, provided in respect of past services based on the actuarial valuation carried out by LIC of Indiaand corresponding contribution to thefundis expensed in the year of such contribution.

b) Superannuation: Superannuation Scheme is a defined contribution plan, which is funded with LIC of India, and corresponding contribution to the fund is expensed.

c) Provident Fund: Provident fund is a defined contribution plan with the Regional Provident Fund Commissioner and the contribution made during the yearas per the plan is expensed.

2.5. Fixed Assets and Debrciation:

a. Tanfible Assets:

Tangible Assets are stated at cost net of tax duty credits availed, accumulated debrciation and impairment losses where applicable. Cost comprises purchase price andall direct / indirect costs incurred to bring the asset to its working condition for its intended use.

b. Debrciation:

Debrciation on Fixed Assets is provided to the extent of debrciable amount on the Written Down Value (WDV) method. Debrciation is provided based on useful life of the assets brscribed in Schedule II of the Companies Act, 2013 except Building. The useful life of the building details is given below.

- Building Estimated useful life = 57 years

- Estimated use fillies as per Schedulell = 60years

2.6. Impairment of Assets:

Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use, estimated periodically, is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

2.7. Leases:

Assets acquired under leases where substantially all the risks and rewards of ownership are retained by the company are classified as finance leases.

Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the less or are classified as operating leases. Lease rentals are charged to the Profit and Loss Account on accrual basis.

2.8. Investments:

I. Investments are classified as Long Term and Current investments. Long Term Investments are carried at cost less provision for permanent diminution, if any, in value of such investments. Current investments are carried at lower of cost and fair value, determined on the basis ofspecific identification.

II. The Company has securities (trade & non-trade), immovable properties and investments in Partnership firms and Joint Ventures, which are classifiedas referred to above.

2.9. Inventories:

Inventory of Construction materials is valued at lower of cost and net realizable value. The cost is determined under FIFO method. Cost of manufactured goods includes related overheads.

Constructions aids viz., scaffolding materials, temporary structures are initially charged off to the revenue and periodically reversal of such write downs are done on the basis of physical count and ascertainments balance useful life.

2.10.BorrowingCost:

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and brpare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred and reported in finance costs

2.11. Foreign Currency Transactions:

The Company has adopted Accounting Standard (AS)-11(Revised 2003) in respect of Foreign Currency transactions.

Pursuant to the above, Foreign currency transactions are recorded on initial recognition in the reporting currency using the exchange rate on the date of such transaction. All exchange differences arising on settlement/conversion of foreign currency transactions are charged off / credited to the Statement of profit and loss.

2.12. Taxation:

a. Current Tax: Provision for current income tax is made based on the estimated tax liability in accordance with the relevant tax rates and tax laws. Current tax is payable on taxable profits, which differ from profit or loss in the financial statements. Current tax is computed based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date.

b. Deferred Tax: Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year, and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date. Deferred tax assets relating to unabsorbed debrciation/business losses are recognized and carried forward to the extent there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. Other deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

2.13. Extraordinary and exceptional items:

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the company are classified as extraordinary items. Specific disclosure of such events / transactions is made in the financial statements. Similarly any external events beyond the control of the company, significantly impacting income or expenses, is also treated as extraordinary item and disclosed as such.

On certain occasions, the size, type or incidence of an item of income or expenses, pertaining to the ordinary activities of the company, is such that its disclosure improves a understanding of the performance of the company. Such income or expense if classified as an exceptional item and accordingly disclosed in the notes of accounts.

2.14. Accounting for Interests in Joint ventures:

Interest in Jointly controlled entities and operations is accounted as follows:

a. Company's share in profits or losses is accounted on determination of the Profit or loss by the Joint venture.

b. Investment is carried at cost net of Company's share in recognized profit or loss.

2.15. Earnings Per Share (EPS):

In arriving at the Basic EPS, the Company's net profit after tax, computed in terms of the Indian GAAP, is divided by the weighted average number of equity shares outstanding on the last day of the reporting period.

5.14.4 Previous year's figures have been regrouped / consolidated wherever applicable / required and furnished accordingly, figures have been rounded off to the nearest rupee.

As per our report of even date

for ASA & Associates LLP

Firm Regn. No. : 009571N/N500006

Chartered Accountants

J.Sivasankaran

Partner

Membership No. 200/22103

For and on behalf of Board of directors

R.Sarabeswar

Chairman & CEO

S.Sivaramakrishnan

Managing Director

T.R.Seetharaman

Chief Financial Officer

R.Siddharth

Company Secretary

Place : Chennai

Date :27.05.2015