Enviro Infra Engineers Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Mar 31, 2025

1B MATERIAL ACCOUNTING POLICIES & OTHER EXPLANATORY INFORMATION

A. STATEMENT OF COMPLIANCES

These Standalone financial statements comprise of the Standalone Balance Sheet as at March 31, 2025, the Standalone
Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Standalone Statement
of Changes in Shareholders'' Equity and the Standalone Statement of Cash Flow for the year ended March 31, 2025
and a summary of material accounting policies and other explanatory notes (collectively, the "Standalone Financial
Statements")

The Standalone financial statements have been prepared in accordance with Indian Accounting Standard (Ind
AS) notified under Section 133 of Companies Act, 2013, (the ''Act'') read with the Companies (Indian Accounting
Standards) Rules, 2015 (as amended from time to time) and presentation requirements of Division II of Schedule III
to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the standalone financial statements.

B. PRESENTATION AND BASIS OF THE STANDALONE FINANCIAL STATEMENT
Historical cost convention

The Standalone Financial Statements have been prepared on accrual basis and historical cost basis, except for certain
financial assets and liabilities accounting to IND AS measured at fair value (refer accounting policy regarding
financial instruments).

Going Concern Assumption

The Company has prepared the Standalone Financial Statements on the basis that it will continue to operate as a
going concern.

Measurement of fair values

Certain accounting policies and disclosures of the Company require the measurement of fair values, for both
financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values and regularly
reviews significant unobservable inputs and valuation adjustments.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible.
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period
during which the change has occurred.

C. PRINCIPAL OF PREPARATION OF FINANCIAL STATEMENTS

The Standalone Financial Statements have been prepared on the following basis:

a) The Standalone Financial Statements have been prepared using uniform accounting policies for like transactions
and other events in similar circumstances.

b) The Company''s interest in its joint operation are accounted for using the Proportional Consolidation Method in the
Standalone Financial Statements.

If a member of the Company uses accounting policies other than those adopted in the Standalone Financial
Statements for like transactions and events in similar circumstances, appropriate adjustments are made to that
Company member''s financial statements in preparing the Standalone Financial Statements to ensure conformity
with the Company''s accounting policies. The Standalone Financial Statements of all entities used for the purpose
of consolidation are drawn up to same reporting date as that of the parent company, i.e. year ended on 31st March,
2025. The details of the Standalone entities are as follows;

D. INTERESTS IN JOINT OPERATIONS

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities, relating to the arrangement. Joint control is the contractually
agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require
unanimous consent of the parties sharing control.

The Company recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its
share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the
standalone financial statements under the appropriate headings.

E. CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS

The preparation of The Standalone Financial Statements in conformity with Indian Accounting Standards (Ind AS)
requires management to make estimates and assumptions that affect the reported balances of assets and liabilities
and disclosure of contingent liabilities at the date of The Standalone Financial Statement and results of operations
during the reporting period. The Management believes that the estimates used in preparation of The Standalone
Financial Statement are prudent and reasonable. Differences between actual results and estimates are recognised in
the period in which the results are shown /materialised.

i) Estimated useful life of intangible asset and property, plant and equipment

The Company assesses the remaining useful lives of Intangible assets and property, plant and equipment on the
basis of internal technical estimates. Management believes that assigned useful lives are reasonable.

ii) Income taxes:

Deferred tax assets are recognised for the unused tax credit to the extent that it is probable that taxable profits
will be available against which the losses will be utilised. Significant management judgment is required to
determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level
of future taxable profits.

iii) Defined benefit plans and Other Long-Term Benefits:

The cost of the defined benefit plan and other long-term benefit and their present value are determined using
actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and
mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting
date. The most sensitive is discount rate. Future salary increases and gratuity increases are based on expected
future inflation rates.

iv) Contingent liabilities:

Management judgment is required for estimating the possible outflow of resources, in respect of contingencies/
claim/litigations against the Company as it is not possible to predict the outcome of pending matters with
accuracy. The management believes the estimates are reasonable and prudent.

v) Revenue Recognition

The Company uses the stage of completion method using input method to measure progress towards completion
in respect of construction contracts. This method is followed when reasonably dependable estimates of costs
applicable to various elements of the contract can be made. Key factors that are reviewed in estimating the future
costs to complete include estimates of future labour costs and productivity efficiencies. Because the financial
reporting of these contracts depends on estimates that are assessed continually during the term of these contracts,
recognised revenue and profit are subject to revisions as the contract progresses to completion. When estimates
indicate that a loss will be incurred, the loss is provided for in the period in which the loss becomes probable.

vi) Provision for doubtful receivables and contract assets:

In assessing the recoverability of the trade receivables and contracts assets, management''s judgement involves
consideration of aging status, evaluation of litigations and the likelihood of collection based on the terms of the
contract.

vii) Estimation of net realisable value of inventories:

Inventories are stated at the lower of cost and Fair value. In estimating the net realisable value/ Fair value of
Inventories, the Company makes an estimate of future selling prices and costs necessary to make the sale.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision
affects only that period. If the revision affects both current and future period, the same is recognised accordingly.

F. CURRENT AND NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current
assets and liabilities, respectively.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. Based on the nature of service and the time between rendering of services and their realization in cash
and cash equivalents, 12 months has been considered by the Company for the purpose of current / non-current
classification of assets and liabilities.

G. FUNCTIONAL AND PRESENTATION CURRENCY

The Functional currency and Presentation Currency of the Company is Indian Rupee.

Amount in the Standalone Financial Statements are presented in Indian Rupee in lakhs rounded off to two decimal
places as permitted by Schedule III to the Act.

H. CLASSIFICATION OF EXPENDITURE / INCOME

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads of account.

ii) All expenditure and income are accounted for on accrual basis.

I. REVENUE FROM CONTRACTS WITH CUSTOMER

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the
customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for
those goods and services.

The Company derives revenue principally from following streams:

i) Construction contracts

ii) Sale of Services (Operation and Maintenance contracts)

The accounting policies for the specific revenue streams of the Company as summarized below:

i) Construction contracts

The Company recognises revenue from engineering, procurement and construction contracts (''EPC'') over the
period of time, as performance obligations are satisfied over time due to continuous transfer of control to the
customer. EPC contracts are generally accounted for as a single performance obligation as it involves complex
integration of goods and services.

The performance obligations are satisfied over time as the work progresses. The Company recognises revenue
using input method (i.e. percentage-of-completion method), based primarily on contract cost incurred to date
compared to total estimated contract costs. Changes to total estimated contract costs, if any, are recognised in the
period in which they are determined as assessed at the contract level. If the consideration in the contract includes
price variation clause or there are amendments in contracts, the Company estimates the amount of consideration to
which it will be entitled in exchange for work performed.

Due to the nature of the work required to be performed on many of the performance obligations, the estimation
of total revenue and cost of completion is complex, subject to many variables and requires significant judgment.
Variability in the transaction price arises primarily due to liquidated damages, price variation clauses, changes
in scope, incentives, if any. The Company considers its experience with similar transactions and expectations
regarding the contract in estimating the amount of variable consideration to which it will be entitled and
determining whether the estimated variable consideration should be constrained. The Company includes
estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative
revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.
The estimates of variable consideration are based largely on an assessment of anticipated performance and all
information (historical, current and forecasted) that is reasonably available.

Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract.
Billing terms of the over-time contracts vary but are generally based on achieving specified milestones. The
difference between the timing of revenue recognised and customer billings result in changes to contract assets and
contract liabilities. Payment is generally due upon receipt of the invoice, payable within 90 days or less. Contractual
retention amounts billed to customers are generally due upon expiration of the contract period.

The contracts generally result in revenue recognised in excess of billings which are presented as contract assets
on the statement of financial position. Amounts billed and due from customers are classified as receivables on the
statement of financial position. The portion of the payments retained by the customer until final contract settlement
is not considered a significant financing component since it is usually intended to provide customer with a form
of security for Company''s remaining performance as specified under the contract, which is consistent with the
industry practice. Contract liabilities represent amounts billed to customers in excess of revenue recognised till
date. A liability is recognised for advance payments and it is not considered as a significant financing component
because it is used to meet working capital requirements at the time of project mobilisation stage.

For construction contracts the control is transferred over time and revenue is recognised based on the extent of
progress towards completion of the performance obligations. When it is probable that total contract costs will
exceed total contract revenue, the expected loss is recognised as an expense immediately.

Revenue from long term construction contracts, where the outcome can be estimated reliably and 5% of the project
cost is incurred, is recognized under the percentage of completion method by reference to the stage of completion
of the contract activity.

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any
resulting increases or decreases in estimated revenues or costs are reflected in Standalone Statement of profit and
loss in the period in which the circumstances that give rise to the revision become known by management.

Contract revenue earned in excess of billing is reflected under as "contract asset" and billing in excess of contract
revenue is reflected under "contract liabilities".

The major component of contract estimate is "budgeted cost to complete the contract" and on assumption that
contract price will not reduce vis-a-vis agreement values. While estimating the various assumptions are considered
by management such as

a) Work will be executed in the manner expected so that the project is completed timely;

b) Consumption norms will remain same;

_c) Cost escalation comprising of increase in cost to compete the project are considered as a part of budgeted cost to
complete the project etc.

Due to technical complexities involved in the budgeting process, contract estimates are highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.

ii) Sale of Services (Operation and Maintenance contracts)

Revenue from providing operating and maintenance services is recognised in the accounting period in which the
services are rendered. Invoices are issued according to contractual terms and are usually payable as per the credit
period agreed with the customer.

Revenues are shown net of Goods & Service Tax, applicable discounts and allowances.

iii) Variable consideration

The nature of the Company''s contracts gives rise to several types of variable consideration, including claims, bonus,
price escalation, award and incentive fees, change in law, liquidated damages and penalties etc. Such amount are
recognized as revenue in the year in which said amount are finally accepted by the clients. Claims under arbitration/
disputes are accounted as income based on final award. Expenses on arbitration are accounted as incurred.

iv) Contract modifications

Contract modifications are accounted for when additions, deletions or changes are approved either to the contract
scope or contract price. The accounting for modifications of contracts involves assessing whether the services added
to the existing contract are distinct and whether the pricing is at the standalone selling price. Services added that
are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for
prospectively, either as a separate contract, if additional services are priced at the standalone selling price, or as a
termination of existing contract and creation of a new contract if not priced at the standalone selling price.

v) Cost to fulfill the contract

The Company recognises asset from the cost incurred to fulfill the contract such as camp set up and mobilisation
costs which is amortises it over the contract tenure on a systematic basis that is consistent with the transfer to the
customer of the goods or services to which the asset relates.

vi) Contract balances
Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the
Company performs by transferring goods or services to a customer before the customer pays consideration or
before payment is due, a contract asset is recognised for the earned consideration that is conditional.

vii) Trade receivables

A receivable is recognised if an amount of consideration that is unconditional (i.e., only the passage of time is
required before payment of the consideration is due).

viii) Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made,
or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company
performs under the contract.

ix) Dividend income, Interest income & Insurance Claims

Dividend income is recognised in profit or loss on the date on which the Company''s right to receive payment is
established.

Interest income is recognised using the effective interest method in accordance Ind AS 109.

Insurance claims are accounted for on the basis of claims admitted/expected to be admitted and to the extent that
there is no uncertainty in receiving the claims.

x) Other income

All other income is accounted on accrual basis when no significant uncertainty exist regarding the amount that will
be received.

J. EXCEPTIONAL ITEMS

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an
understanding of the performance of the Company is treated as an exceptional items and disclosed as such in the
Standalone Financial Statements.

K. PROPERTY, PLANT AND EQUIPMENT (PPE)

PPE is recognised 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 PPE is stated at original cost net of tax/duty credits
availed, if any less accumulated depreciation and cumulative impairment, if any All directly attributable costs
related to the acquisition of PPE and, borrowing costs case of qualifying assets are capitalised in accordance with
the Company''s accounting policy.

Subsequent costs are included in the assets 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
can be measured reliably.

PPE not ready for the intended use on the date of the Balance Sheet are disclosed as "capital work-in-progress"

Depreciation is recognised using written down value method so as to write off the cost of the assets (other than
freehold land and capital work-in-progress) less their residual values over their useful lives specified in Schedule
II to the Companies Act, 2013, or in the case of assets where the useful life was determined by technical evaluation,
over the useful life so determined.

Depreciation on additions to deductions from, owned assets is calculated pro rata to the period of use.

The estimated useful lives, residual values and depreciation method are reviewed at each financial year end and the
effect of any change is accounted for on prospective basis.

The carrying amount of the all property, plant and equipment are derecognized on its disposal or when no future
economic benefits are expected from its use or disposal and the gain or loss on de-recognition is recognized in the
statement of profit & loss.

L. INTANGIBLE ASSETS

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the
asset will flow to the Company and the cost of the asset can be measured reliably. Intangible assets are stated at
original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment.
All directly attributable costs and other administrative and other general overhead expenses that are specifically
attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible
assets.

Intangible assets not ready for the intended use on the date of the Balance Sheet are disclosed as "Intangible assets
under development"

Intangible assets are amortised on straight line method basis over the estimated useful life. The method of
amortisation and useful life are reviewed at the end of each financial year with the effect of any changes in the
estimate being accounted for on a prospective basis.

M. IMPAIRMENT OF ASSETS

Intangible assets, investment property and property, plant and equipment

As at the end of each financial year, the carrying amounts of PPE, intangible assets and investments in subsidiary
and Joint Operations are reviewed to determine whether there is any indication that those assets have suffered an
impairment loss if such indication exists, PPE, investment property and intangible assets are tested for impairment
so as to determine the impairment loss if any. Intangible assets with indefinite life are tested for impairment each
year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable
amount is determined:

(i) In the case of an individual asset, at the higher of the fair value less costs to sell and the value in use.

(ii) In the case of a cash generating unit (the smallest identifiable group of assets that generates independent cash
flows), at the higher of the cash generating unit''s fair value less costs of disposal and the value-in-use.

N. IMPAIRMENT OF FINANCIAL ASSETS

The Company recognises loss allowances using the Expected Credit Loss (ECL) model for the financial assets
which are not at fair value through profit or loss. Loss allowance for trade receivables with no significant financing
component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses
are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk
from initial recognition in which case those are measured at lifetime ECL. The amount of expected credit losses (or
reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or
loss in the statement of profit or loss.

O. IMPAIRMENT OF NON-FINANCIAL ASSETS

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing,
the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in use) is determined on an
Individual asset basis unless the asset does not generate cash flows that are largely Independent of those from other
assets. In such cases, the recoverable amount is determined for the Cash Generating Unit (CGU) to which the asset
belongs. If such assets are considered to be impaired, the impairment to be recognised in the statement of profit
and loss is measured by the amount by which the carrying value of the assets exceeds the estimated recoverable
amount of the asset. An impairment loss is reversed in the statement of profit and loss if there has been a change
in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its
revised recoverable amount, provided that this amount does not exceed the carrying amount that would have been
determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised for the
asset in prior years.

P. CLAIMS & COUNTER CLAIMS

Claims and counter claims including under arbitrations are accounted for on their final Settlement/ award. Contract
related claims are recognised when there is a reasonable certainty.

Q. INVENTORIES

Inventories comprise of Construction material. Inventories are measured at the lower of cost and net realisable
value.

Construction materials: cost includes cost of purchase, all non-refundable taxes and other costs incurred in bringing
the inventories to their present location and condition. Cost is determined on FIFO method.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale. The company has written down inventory where
the net realizable value is estimated to be lower than the inventory carrying value.

R. FINANCIAL INSTRUMENTS
Initial Recognition:

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition,
except for trade receivables/payables and where cost of generation of fair value exceeds benefits, which are initially
measured at transaction price. Transaction costs directly related to the acquisition or issue of the financial assets
and financial liabilities (other than financial assets and financial liabilities through profit & loss account) are added
to or deducted from the cost of financial assets or financial liabilities. Transaction cost directly attributed to the
acquisition of financial assets or financial liabilities at fair value through profit & loss account are recognized
immediately in the statement of profit & loss.

Subsequent Recognition:

Non-derivative financial instruments

(i) Financial assets carried at amortized cost: A financial asset is subsequently measured at amortized cost if it is
held within a business model whose objective is to hold the asset in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income: A financial asset is subsequently measured
at fair value through other comprehensive income if it is held within a business model whose objective is
achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.

(iii) Financial assets at fair value through profit or loss: A financial asset which is not classified in any of the above
categories (including investment in units of mutual funds) is subsequently fair valued through profit or loss.

(iv) Financial liabilities: Financial liabilities are subsequently carried at amortized cost using the effective interest
method, except for contingent consideration recognized in a business combination which is subsequently
measured at fair value through profit and loss. For trade and other payables maturing within one year from the
Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

(v) Investment in Subsidiaries/Joint Operations: Investment in subsidiaries / Joint Operations are carried at cost
in the separate financial statements. Any gain or losses on disposal of these investments are recognized in the
statement of profit & loss.

(vi) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and
only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to
settle them on a net basis or to realise the asset and settle the liability simultaneously.

S. Fair values measurement

The company measurement financial instrument, such as derivative, equity investment and mutual fund at fair
values at each balance sheet date.

The company''s management determines the policies and procedures for both recurring fair value measurement,
such as derivative instruments, unquoted financial assets measured at fair value and for non-recurring fair value
measurement such as asset under the scheme of business undertaking.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are
categorised within the fair value hierarchy, based on the lowest level input that is significant to the fair value
measurement as a whole:

For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based
on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting
period.

The financial reporting team regularly reviews significant unobservable inputs and valuation adjustments. If third
party information, such as pricing services, is used to measure fair values, then the financial reporting team assesses
the evidence obtained from the third parties to support the conclusion that these valuations meet the requirements
of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities on the basis
of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained
above.

T. CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits,
as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company''s cash
management.

U. FINANCIAL LIABILITIES

Financial liabilities are initially recognized at the fair value of the consideration received less directly attributable
transaction cost.

Subsequent to initial measurement, financial liabilities viz borrowings are measured at amortized cost. The
difference in the initial carrying amount of the financial liabilities and their redemption value is recognized in the
statement of profit & loss over the contractual term using the effective interest rate method.

Financial liabilities are further classified as current and non-current depending whether they are payable within 12
months from the balance date or beyond.

Financial liabilities are derecognized when the company is discharged from its obligation; they expire, are cancelled
or replaced by a new liability with substantial modified terms.

V. EARNING PER SHARE

Basic Earnings Per Share is computed by dividing the net profit attributable to the equity shareholders of the
company to the weighted average number of Shares outstanding during the period & Diluted earnings per share
is computed by dividing the net profit attributable to the equity shareholders of the company after adjusting the
effect of all dilutive potential equity shares that were outstanding during the period. The weighted average number
of shares outstanding during the period includes the weighted average number of equity shares that could have
issued upon conversion of all dilutive potential.

W. TAXATION
Current Tax

Current tax is expected tax payable on the taxable income for the year, using the tax rate enacted at the reporting
date, and any adjustment to the tax payable in respect of the earlier periods.

Current tax assets and liabilities are offset where the company has legally enforceable right to offset and intends
either to settle on net basis, or to realize the assets and settle the liability simultaneously.

Deferred Tax Assets and Liabilities

Deferred tax is recognized for all taxable temporary differences and is calculated based on the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied when the asset is realized or the liability is
settled, based on the laws that have been enacted or substantively enacted at the reporting date.

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available
against which the assets can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred
tax balances relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but the Company intends to settle current tax liabilities and assets on a net basis or their tax assets and liabilities
will be realized simultaneously.

Current and Deferred Tax for the Year

Current and deferred tax are recognized in the statement of profit & loss, except when they relates to items that are
recognized in other comprehensive income or directly in equity, in which case, the current tax and deferred tax is
recognized directly in other comprehensive income or equity respectively.

X. EMPLOYEE BENEFITS

The company provides for the various benefits plans to the employees. These are categorized into Defined Benefits
Plans and Defined Contributions Plans. Defined contribution plans includes the amount paid by the company
towards the liability for Provident fund to the employees provident fund organization and Employee State
Insurance fund in respect of ESI and defined benefits plans includes the retirement benefits, such as gratuity and
paid absences (leave benefits) both accumulated and non-accumulated.

a. In respect Defined Contribution Plans, contribution made to the specified fund based on the services rendered
by the employees are charged to Statement of Profit & Loss in the year in which services are rendered by the
employee.

b. Liability in respect of Defined Long Term benefit plan is determined at the present value of the amounts payable
determined using actuarial valuation techniques performed by an independent actuarial at each balance sheet
date using the projected unit credit methods. Re-measurement, comprising actuarial gain and losses, the effects
of assets ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in
the statement of Financial Position with a charge or credit recognized in other comprehensive income in the
period in which they occur. Past Service cost is recognized in the statement of profit & loss in the period of plan
amendment.

c. Liabilities for accumulating paid absences is determined at the present value of the amounts payable determined
using the actuarial valuation techniques performed by an independent actuarial at each balance sheet date
using the projected unit credit method. Actuarial gain or losses in respect of accumulating paid absences are
charged to statement of profit & loss account.

d. Liabilities for short term employee benefits are measured at undiscounted amount of the benefits expected to be
paid and charged to Statement of Profit & Loss in the year in which the related service is rendered.

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Mar 31, 2024

IB MATERIAL ACCOUNTING POLICIES & OTHER EXPLAINATORY INFORMATION
A BASIS OF PREPARATION OF STANDALONE FINANCIAL STATEMENT

The Standalone Financial Statement of the Company comprise of Standalone Statements of Assets and Liabilities as at 31 March, 2024 and 31 March, 2023, the Standalone
Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Cash flows, the Standalone Statement of Changes in Equity for the year
ended 31 March, 2024 and 31 March 2023, the Significant Accounting Policies and Other Explanatory Notes, and Statement of Restatement Adjustments to Audited Standalone
Financial Statements (collectively, the ‘Standalone Financial Statement'').

The Standalone financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian
Accounting Standards) Rules, 2015. In accordance with the notification issued by the Ministry of Corporate Affairs, the Company, with effect from April 01, 2016, has adopted
Indian Accounting Standards (the ‘Ind AS’) notified under the Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto. Accounting
policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in
the accounting policy hitherto in use. The Standalone financial statements ore presented in Indian rupees ('''' ’) and all values are rounded to die nearest Rupees.

The Company’s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards (“Ind AS’’) notified
under the Companies (Indian Accounting Standards) Rules, 2015 and amendments thereto issued by Ministry of Corporate Affairs under section 133 of the Companies Act,
2013. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other
statutory promulgations require a different treatment.

In accordance with the notification dated February 16, 2015, issued by Ministry of Corporate Affairs, the Company has voluntarily adopted Indian Accounting Standards notified
under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS") with effect from April 01, 2021. Accordingly, the
transition date for adoption of Ind AS is April 1. 2020 for reporting under requirements of the Act.

B PRESENTATION AND BASIS OF STANDALONE FINANCIAL STATEMENT
Historical cost convention

The Standalone Financial Statement have been prepared on accrual basis and historical cost basis, except for certain financial assets and liabilities accounting to IND AS
measured at fair value (refer accounting policy regarding financial instruments).

Going Concern Assumption

The Company has prepared the Standalone Financial Statement on the basis that it will continue to operate as a going concern.

Measurement of fair vulues

Certain accounting policies and disclosures of die Company require the measurement of fair values, for both financial and non-financiol assets and li abilities.

The Company has an established control framework with respect to the measurement of fair values and regularly reviews significant unobservable inputs and valuation
adjustments.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level I: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (La. derived from prices).
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a
liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest
level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

C PRINCIPAL OF PREPRATION OF FINANCIAL STATEMENTS

The Standalone Financial Statement have been prepared on the following basis:

a) The Standalone Financial Statement of the Company and its joint operation are combined on a line by line basis by adding together like items of assets, liabilities, equity,
income, expenses and cash flows, after fully eliminating intra-group balances and intra-group transactions.

b) The Standalone Financial Statement have been prepared using uniform accounting policies for like transactions and other events in similar circumstances.

c) The Company''s interest in its joint operation are accounted for using the Proportional Consolidation Method in Standalone Financial Statement. The Standalone Financial
Statements are prepared using uniform accounting policies for like transactions and oilier events in similar circumstances.

If a member of the Company uses accounting policies other than those adopted in the standalone financial statements for like transactions and events in similar circumstances,
appropriate adjustments are made to that Company member''s financial statements in preparing the standalone financial statements to ensure conformity with the Company''s
accounting policies. The Standalone financial statements of all entities used for the purpose of consolidation are drawn up to same reporting date as that of the parent company,
i.e., year ended on 31 March 2024 and 31 March 2023. Standalone Statement of Profit and loss and each component of other comprehensive income (OC1) are attributed to the
equity holders of the parent of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary,
adjustments are made to the financial statements of its Joint Operations to bring their accounting policies into line with the Company''s accounting policies. All intra-group assets
and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Company are eliminated in full on consolidation. The details of the
Standalone entities are as follows;

D INTERESTS IN JOINT OPERATIONS

A joint operation is a joint arrangement w hereby the parties that have joint control of the arrangement have rights to the assets and obligations for the liabilities, relating to the
arrangement Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous
consent of the parties sharing control. When a company undertakes its activities under joint operations, the Company as a joint operator recognises in relation to its interest in a
joint operation:

1 Its assets, including its share of any assets held jointly,

2 Its liabilities, including its share of any liabilities incurred jointly.

3 Its revenue from the sale of its share arising from the joint operation,

4 Its share of the revenue from the joint operations, and

5 Its expenses, including its share of any expenses incurred jointly.

The Company accounts for the assets, liabilities, revenues, and expenses relating to its interest in a joint operation in accordance with the Ind AS applicable to the particular
assets, liabilities, revenues, and expenses.

E CRITICAL ACCOUNTING ESTIMATES & JUDGEMENTS

The preparation of Standalone financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make estimates and assumptions that
affect the reported balances of assets and liabilities and disclosure of contingent liabilities at llie date of Standalone financial Statement and results of operations during the
reporting period. The Management believes that the estimates used in preparation of Standalone Financial Statement are prudent and reasonable. Differences between actual
results and estimates are recognised in the year in which the results are shown /materialised.

i) Estimated useful life of intangible asset and property, plant and equipment

The Company assesses Hie remaining useful lives of Intangible assets and property, plant and equipment on the basis of internal technical estimates. Management believes
that assigned useful lives are reasonable

ii) Income taxes:

Deferred tax assets are recognised for the unused tax credit to the extent that it is probable that taxable profits will be available against which the losses will be utilised.
Significant management judgment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely liming and the level of future
taxable profits.

iii) Defined benefit plans and Other Long-Term Benefits:

The cost of the defined benefit plan and other long-term benefit and their present value are determined using actuarial valuations. An actuarial valuation involves making
various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates.
Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions
are reviewed at each reporting date. The most sensitive is discount rate. Future salary increases and gratuity increases are based on expected future inflation rates.

iv) Contingent liabilities:

Management judgment is required for estimating the possible outflow of resources, in respect of contingencies/claim/liligalions against the Company os it is not possible to
predict the outcome of pending matters with accuracy. The management believes the estimates are reasonable and prudent.

v) Revenue Recognition

The Company uses the stage of completion method using survey method and /or on completion of physical proportion of the contract work to measure progress towards
completion in respect of construction contracts. This method is followed when reasonably dependable estimates of costs applicable to various elements of the contract can
be made. Key factors that are reviewed in estimating the future costs to complete include estimates of future labour costs and productivity efficiencies. Because the
financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognised revenue and profit are subject to
revisions os the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is provided for in (he period in which the loss becomes
probable.

vii) Provision for doubtful receivables and contract assets:

In assessing the recoverability of the trade receivables and contracts assets, management’s judgement involves consideration of aging status, evaluation of litigations and
the likelihood of collection based on the terms of the contract.

viii) Estimation of net realisable value of inventories:

Inventories are stated at the lower of cost and Fair value. In estimating the net realisable value/ Fair value of Inventories, the Company makes an estimate of future selling
prices and costs necessary to make the sole.

Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects Qi^ly >ho> pefiod. If the revision affects both current and
future period, the same is recognised accordingly. ^

F CURRENT AND NON-CURRENT CLASSIFICATION

The Company presents assets and liabilities based on current/ non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in normal operating cycle.

• Held primarily for the purpose of trading

• Expected to be realised within twelve months after the reporting period, or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities ore classified as non-current

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. Based on the nature of service and the lime
between rendering of services and their realization in cash and cash equivalents. 12 months has been considered by the Company for the purpose of current / non-current
classification of assets and liabilities.

G FUNCTIONAL AND PRESENTATION CURRENCY

The Functional currency and Presentation Currency of the Company is Indian Rupee.

Amount in the Standalone Financial Statements are presented in Indian Rupee in lakhs rounded ofTto two decimal places as permitted by Schedule III to the Act.

H CLASSIFICATION OF EXPENDITURE / INCOME

Except otherwise indicated:

i) All expenditure and income are accounted for under the natural heads of account.

ii) All expenditure and income are accounted for on accrual basis.

I REVENUE RECOGNITION

Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or services to a customer.

For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress
is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue.

Over a period of lime if one of the follow ing criteria is met:

(a) the customer simultaneously consumes the benefit of the Company’s performance or

(b) the customer controls the asset as it is being created/ enhanced by the Company’s performance or

(c) there is no alternative use of the asset, and the Company has either explicit or implicit right of payment considering legal precedents.

In all other cases, performance obligation is considered os satisfied at a point in time.

The revenue towards satisfaction of performance obligation is measured at transaction price is recognised to the extent of transaction price allocated to that performance
obligation. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer excluding
amounts collected on behalf of a third parly. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of
the variable consideration and when it is probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable
consideration is resolved. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms
agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction price and accounted as interest income.

Costs to obtain a contract w hich are incurred regardless of w hether the contract was obtained are charged-off in profit or loss immediately in the period in which such costs are
incurred. Incremental costs of obtaining a contract, if any. and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the
progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards
complete satisfaction of performance obligation.

b. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

c. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.

Design-Build-Operate-Transfer (DBOT) contracts on hybrid annuity basis contain three streams of revenue-construction income. Financing income and Operation &
Maintenance (O&M) income. The construction stream of DBOT revenue are accounted for in the construction phase of DBOT, O&M income is recognised in the operating
phase of DBOT, while finance income will be recognised along with capex annuity received.

I) Revenue Recognition

Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and other claims which are not asccrtainable/acknowledged by
customers are not taken into account.

A) Revenue from conslruction/project related activity is recognised as follows:

• Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the extent performance obligations have been satisfied. The

amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the
customer. _ "

/V&^- s-----

• Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is
recognised at allocable transaction price which represent the cost of work performed on die contract plus proportionate margin, using die percentage of completion method.
Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.

For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the case may be) exceeds the progress billing, the
surplus is shown as contract asset and termed ns "Due from customers". For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus
recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract liability and termed as “Due to customers”. Amounts received before the
related work is performed are disclosed in the Balance Sheet as contract liability and termed as “Advances from customer”. The amounts billed on customer for work performed
and are unconditionally due for payment i.e. only passage of time is required before payment falls due, are disclosed in the Balance Sheet as trade receivables. The amount of
retention money held by the customers pending completion of performance milestone is disclosed as part of contract asset and is reclassified as trade receivables when it
becomes due for payment.

Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the extent the carrying amount of the contract asset
exceeds the remaining amount of consideration that the Company expects to receive towards remaining performance obligations (after deducting the costs that relate directly to
fulfill such remaining performance obligations). The Company recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial
statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to trade receivables.

B. Revenue from rendering of services is recognised over time as the customer receives the benefit of the Company''s performance and the Company has an enforceable right to
payment for services transferred. Unbilled revenue represents value of services performed in accordance with the contract terms but not billed.

C. Other Recognition in revenue represents income earned from the activities incidental to the business and is recognised when complete certainly of its realizations is
established. Revenue Recognition and maintenance where revenue consists of Fixed and variable. Fixed Component is unconditional and variable component is conditional,
both are booked as revenue when complete certainty is established and the company has an enforceable right to payment for services rendered. In the absence of complete
certainty company is recognising revenue as Unbilled revenue to the extent of amount which has certainty to payment

D. Design-Build-Operate-Transfer (DBOT) contracts on hybrid annuity basis contain three streams of revenue-construction evenue. Financing income and Operation &
Maintenance (O&M) income. The construction stream of DBOT revenue are accounted for in the construction phase of DBOT, O&M income is recognised in the operating
phase of DBOT. while finance income will be recognised along with capex annuity received.

E. Revenue related to construction services provided under the service concession arrangement is recognised based on stage of completion of the work performed. The stage of
completion is assessed by reference to input method i.e. cost incurred till date in proportion to total estimated cost to complete the work.

U) Other Income

A. Interest income shall be calculated by using EIR method.

B. Awards and settlements. Revenue in relation to awards; such as arbitration awards and settlement; such as settlement of agreement is recognized as revenue, whenever
complete certainty of its realizations is established.

C. Other items of income are accounted as and when the right to receive such income arises and it is probable that the economic benefits will flow to the Company and the
amount of income can be measured reliably.

D. Dividend income is accounted in the period in which the right to receive the same is established.

J EXCEPTIONAL ITEMS

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an
exceptional items and disclosed as such in the financial statements.

K PROPERTY, PLANT AND EQUIPMENT (PPE)

PPE is recognised 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 PPE is
slated at original cost net of tax/duty credits availed, if any less accumulated depreciation and cumulative impairment, if any All directly attributable costs related to ''le
acquisition of PPE and, borrowing costs case of qualifying assets are capitalised in accordance with the Company''s accounting poliev.

Subsequent costs are included in the assets 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 can be measured reliably.

PPE not ready for the intended use on the dale of the Balance Sheet are disclosed as "capital work-in-progress"

Depreciation is recognised using written down value method so as to w-rite off the cost of the assets (other than freehold land and capital work-in-progress) less their residual
values over their useful lives specified in Schedule II to the Companies Act, 2013, or in the cose of assets where the useful life was determined by technical evaluation, over the
useful life so determined.

Depreciation on additions to deductions from, ow ned assets is calculated pro rata to the period of use.

The estimated useful lives, residual values and depreciation method are reviewed at each financial year end and the elTect of any change is accounted for on prospective basis.

The carrying amount of the oil property, plant and equipment are derecognized on its disposal or when no future economic benefits are expected from its use or disposal and the
gain or loss on de-recognition is recognized in the statement of profit & loss.

L INTANCIBLE ASSETS

Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the Company and the cost of the asset can be
measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment. All direMy
attributable costs and other administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as
a part of the cost of the intangible assets.

Intangible assets not ready for die intended use on the date of the Balance Sheet are disclosed as “Intangible assets under development"

Intangible assets are amortised on straight line method basis over the estimated useful life. The method of amortisation and useful life are reviewed at the end of each financial
year with the effect of any changes in the estimate being accounted for on a prospective basis.

IM IMPAIRMENT OF ASSETS

Intangible assets, investment property and property, plant and equipment

As at the end of each financial year, the carrying amounts of PPE, intangible assets and investments in subsidiary and Joint Operations are reviewed to determine whether there
is any indication that those assets have suffered an impairment loss if such indication exists, PPE, investment property and intangible assets are tested for impairment so as to
determine the impairment loss if any. Intangible assets with indefinite life are tested for impairment each year.

Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined:

(i) In the case of an individual asset, at the higher of the fair value less costs to sell and the value in use.

(ii) In the case of a cash generating unit (the smallest identifiable group of assets that generates independent cosh flows), at the higher of the cash generating unit’s fair value less
costs of disposal and the vaiue-in-use.

N IMPAIRMENT OF FINANCIAL ASSETS

The Company recognises loss allowances using the Expected Credit Loss (ECL) model for the financial assets which are not at fair value through profit or loss. Loss allowai ;e
for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all other financial assets, expected credit losses are measured
at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL.
The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the statement
of profit or loss.

O IMPAIRMENT OF NON-FINANCIAL ASSETS

Intangible assets and property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be
recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value-in use) is determined on an Individual
asset basis unless the asset does not generate cash flows that are largely Independent of those from oilier assets. In such cases, the recoverable amount is determined for the Cash
Generating Unit (CGU) to w hich the asset belongs. If such assets are considered to be impaired, the impairment to be recognised in the statement of profit and loss is measured
by the amount by which the carrying value of the assets exceeds the estimated recoverable amount of the asset. An impairment loss is reversed in the statement of profit and loss
if there has been a change in the estimates used to determine the recoverable amount. The carrying amount of the asset is increased to its revised recoverable amount, provided
that this amount does not exceed the earn ing amount that would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.

P CLAIMS & COUNTER CLAIMS

Claims and counter claims including under arbitrations are accounted for on their final Settlement/ award. Contract related claims are recognised when there is a reasonable
certainty.

Q INVENTORIES

Raw Materials: •

Raw Materials are valued at lower of cost, based on First in First out method arrived after including Freight inward and other expenditure directly attribute to acquisition or net
realizable value.

Work in Progress:

Work in Progress, are valued at cost based on First in First out method.

Stores, Fuel and Packing Materials ore valued at lower of cost based on First in First out method or net realizable value.

Cost of inventories comprises all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

R FINANCIAL INSTRUMENTS
Initial Recognition:

The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are
recognized at fair value on initial recognition, except for trade receivables/payables and where cost of generation of fair value exceeds benefits, which are initially measured at
transaction price. Transaction costs directly related to the acquisition or issue of the financial assets and financial liabilities (other than financial assets and financial liabilities
through profit & loss account) are added to or deducted from the cost of financial assets or financial liabilities. Transaction cost directly attributed lo the acquisition of financial
assets or financial liabilities at fair value through profit & loss account ore recognized immediately in the statement of profit & loss.

Subsequent Recognition:

Non-derivative financial instruments

(i) Financial assets carried at amortized cost: A financial asset is subsequently measured at amortized cost if it is held within a business model whose objective is to hold
the asset in order to collect contractual cosh flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(ii) Financial assets at fair value through other comprehensive income: A financial asset is subsequently measured at fair value through other comprehensive income if it is
held w''ithin a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial
asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through profit or loss: A financial asset which is not classified in any of the above categories (including investment in units of mutual
funds) is subsequently fair valued through profit or loss.

(iv) Financial liabilities: Financial liabilities are subsequently carried at amortized cost using the effective interest method, except for contingent consideration recognized in a
business combination which is subsequently measured at fair value through profit and loss. For trade and other payables maturing within one year from the Balance Sheet
date, the carrying amounts approximate fair value due lo the short maturity of these instruments.

(v) Investment in Subsidiaries/Joint Operations: Investment in subsidiaries / Joint Operations are carried at cost in the separate financial statements. Any gain or losses on
disposal of these investments are recognized in the statement of profit & loss.

S CASH AND CASH EQUIVALENTS

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with ap-flftgftfnl’Ti^lmity of three months or less, that are readily
convertible to a known amount of cash and subject to an insignificant risk of changes in value. S'' I x.

__ M/W vA

_____ /rv/W \A\

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they
are considered an integral part of the Company''s cash management.

T FINANCIAL LIABILITIES

Financial liabilities are initially recognized at the fair value of the consideration received less directly attributable transaction cost.

Subsequent to initial measurement, financial liabilities viz borrowings are measured at amortized cost. The difference in the initial carrying amount of the financial liabilities and
their redemption value is recognized in the statement of profit & loss over the contractual term using the effective interest rale method.

Financial liabilities are further classified as current and non-current depending whether they are payable within 12 months from the balance date or beyond.

Financial liabilities are derecognized when the company is discharged from its obligation; they expire, are cancelled or replaced by a new liability with substantial modified
terms.

U EARNING PER SHARE

Basic Earnings Per Share is computed by dividing tire net profit attributable to the equity shareholders of the company to the weighted average number of Shares outstanding
during the period & Diluted earnings per share is computed by dividing the net profit attributable to the equity shareholders of the company after adjusting the effect of all
dilutive potential equity shares that were outstanding during the period. The weighted average number of shares outstanding during the period includes the weighted average
number of equity shares that could have issued upon conversion of all dilutive potential.

V TAXATION
Current Tax

Current tax is expected tax payable on the taxable income for the year, using the tax rate enacted at the reporting date, and any adjustment to the tax payable in respect of the
earlier periods.

Current tax assets and liabilities are offset where the company has legal enforceable right to offset and intends either to settle on net basis, or to realize the assets and settle the
liability’ simultaneously.

Deferred Tax Assets and Liabilities

Deferred tax is recognized for all taxable temporary differences and is calculated based on the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are expected to be applied when the asset is realized or the liability is settled, based on the laws that have been enacted or
substantively enacted at the reporting date

Deferred tax assets are recognized only to the extent that it is probable that future taxable profits will be available against which the assets can be utilized. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset and when the deferred tax balances relate to taxes levied by the same tax authority
on the same taxable entity, or on different lax entities, but the Company intends to settle current lax liabilities and assets on a net basis or their tax assets and liabilities will be
realized simultaneously.

Current and Deferred Tax for the Year

Current and deferred tax are recognized in the statement of profit & loss, except when they relates to items that are recognized in other comprehensive income or directly in
equity, in which case, the current tax and deferred tax is recognized directly in other comprehensive income or equity respectively.

W EMPLOYEE BENEFITS

The company provides for the various benefits plans to the employees. These are categorized into Defined Benefits Plans and Defined Contribution:; Plans. Defined contribution
plans includes the amount paid by the company towards the liability for Provident fund to the employees provident fund organization and Employee Stale Insurance fund in
respect of ESI and defined benefits plans includes the retirement benefits, such as gratuity and paid absences (leave benefits) both accumulated and rion-accumulated.

a. In respect Defined Contribution Plans, contribution made to the specified fund based on the services rendered by the employees are charged to Statement of Profit & Loss
in the year in which services are rendered by the employee.

b. Liability in respect of Defined Long Term benefit plan is determined at the present value of the amounts payable determined using actuarial valuation techniques
performed by an independent actuarial at each balance sheet date using the projected unit credit methods. Re-measurement, comprising actuarial gain and losses, the
effects of assets ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the statement of Financial Position with a charge or
credit recognized in other comprehensive income in the period in which they occur. Past Service cost is recognized in the statement of profit & loss in the period of plan
amendment.

c. Liabilities for accumulating paid absences is determined at the present value of the amounts payable determined using the actuarial valuation techniques performed by an
independent actuarial at each balance sheet date using the projected unit credit method. Actuarial gain or losses in respect of accumulating paid absences are charged to
statement of profit & loss account.

d. Liabilities for short term employee benefits are measured at undiscounted amount of the benefits expected to be paid and charged to Statement of Profit & Loss in the year
in which the related service is rendered.