Viviana Power Tech Ltd. நிறுவனத்தின் கணக்கியல் கொள்கைகள்

Note 2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Statement of Compliance

The Financial Statements have been prepared in accordance with Ind AS notified under the Companies (Indian Accounting Standards)
Rules, 2015 (as amended). These are the Company''s first Ind AS Financial Statements. The date of transition to Ind AS is April 1, 2024.
The mandatory exceptions and optional exemptions availed by the Company on first-time adoption have been detailed in Note 2.24.

Comparative financial information for the year ended March 31, 2025 has been restated in accordance with Ind AS.

Up to the year ended March 31, 2025, the Company had prepared its Financial Statements in accordance with the accounting standards
notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Companies Act, 2013 ("Previous
GAAP"). In accordance with Ind AS 101 "First Time adoption of Indian Accounting Standards", the Company has presented a
reconciliation of Shareholders'' equity under Previous GAAP to Shareholders'' equity under Ind AS as at 31st March, 2025 and 1st April,
2024, of the Net Profit as per Previous GAAP and total Comprehensive Income and Cash flow under Ind AS for the year ended 31st
March, 2025. Refer note 54 for an explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial
position, financial performance and cash flows.

2.2 Basis of preparation of financial statements

The financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at
fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the
liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which
the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its
entirety, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the

asset or liability, either directly or indirectly; and

Level 3 inputs are unobservable inputs for the asset or liability.

2.3 Significant Accounting Estimates and Judgments

The preparation of the standalone financial statements requires management to make judgments, estimates, and assumptions that
affect the reported amounts of assets, liabilities, income, and expenses, as well as the accompanying disclosures. These estimates and
assumptions are based on management''s best knowledge of current events, historical experience, and other factors deemed relevant.
Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis, and any revisions are recognized prospectively in the period of
revision and future periods, as applicable.

In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that
have the most significant effect on the amounts recognized in the financial statements are included in the following notes:

i) Useful lives and residual values of property, plant and equipment and intangible assets

Management reviews its estimate of useful lives of property, plant and equipment and intangible assets at each reporting date, based
on the expected utility of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change
the utility of property, plant and equipment and intangible assets. Refer Note 2.4 for further details.

ii) Recognition and measurement of deferred tax assets and liabilities

The Company reviews the carrying amount of deferred tax assets at the end of each reporting period. The policy for the same has been
explained under Note 2.18.

iii) Allowances for expected credit losses on trade receivables

The Company''s trade receivables primarily comprise amounts receivable from Public Sector Undertakings (PSUs) and State Electricity
Boards. In accordance with Ind AS 109, the Company applies the expected credit loss (ECL) model for measuring impairment of financial
assets. Based on historical credit loss experience, past payment trends, current creditworthiness of the counterparties, and an
assessment of forward-looking information, management has concluded that the credit risk associated with these receivables is low
and that the expected credit losses are not material. Accordingly, no impairment allowance has been recognised against such trade
receivables as at the reporting date.

Management reviews the recoverability of trade receivables and the assumptions used in estimating expected credit losses at each
reporting date.

iv) Financial liabilities

In applying the Company''s accounting policies, management has exercised judgement in relation to loans obtained from banks and Non¬
Banking Financial Companies (NBFCs). Under Ind AS 109, financial liabilities are required to be initially recognised at fair value and
subsequently measured at amortised cost using the effective interest rate method.

Management has assessed the impact of applying the effective interest rate method to such borrowings and concluded that the
difference between the transaction value and the amortised cost is not material to the financial statements, considering the nature and
volume of the loans and the individually insignificant impact of discounting. Accordingly, these borrowings have been recognised at
their transaction value.

This assessment is reviewed at each reporting date. Should the impact of discounting become material in future reporting periods, the
Company will apply the measurement requirements of Ind AS 109 accordingly.

v) Financial Assets

In applying the Company''s accounting policies, management has exercised judgement in relation to security deposits given. Under Ind
AS 109, such financial assets are required to be initially recognised at fair value and subsequently measured at amortised cost using the
effective interest rate method. Management has assessed the impact of discounting these security deposits and concluded that the
difference between the transaction value and the amortised cost is not material to the financial statements, considering the nature of
the deposits and the individually insignificant impact of discounting. Accordingly, such deposits have been recognised at their
transaction value.

This assessment is reviewed at each reporting date. If the impact of discounting is considered material in future periods, the Company
will apply the measurement requirements of Ind AS 109 accordingly.

2.4 Property, Plant and Equipment

Property, Plant and Equipment are stated at cost, net of tax/duty credit availed less accumulated depreciation and impairment, if any. It
includes the direct costs attributable to bringing the assets to its working condition for its intended use. Property, Plant & Equipment
(PPE) comprises of Tangible assets and Capital Work in progress. The cost of PPE comprises of its purchase price or its construction cost
(net of applicable tax credit, if any), any cost directly attributable to bring the asset into the location and condition necessary for it to be
capable of operating in the manner intended by the management and decommissioning costs. Direct costs are capitalized until the
asset is ready for its intended use and includes borrowing cost capitalised in accordance with the Company''s accounting policy.

Capital work-in-progress comprises of the cost of the assets that are not yet ready for their intended use at the reporting date.

Property, Plant and Equipment are derecognised on disposal or when no future economic benefits are expected from use or disposal.
Gains or losses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds
and the carrying amount of the asset and recognised in the Statement of Profit and Loss when the asset is derecognised.

The depreciation during the year has been provided on straight line basis as per Schedule II of the Companies act 2013 since the
acquisition of respective fixed assets. The depreciation on fixed assets is provided on the straight line method considering the useful life
and residual value of respective fixed asset. The residual values, useful lives and method of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. This reassessment may result in a change
in depreciation charge in future period.

For transition to Ind AS, the company elected to continue with carrying value of all its Property, plant, equipment and intangible assets
recognised as of April 1, 2024 (transition date) measured as per the previous GAAP and use that carrying value as deemed cost as of the
transition date.

2.5 Intangible Assets

Intangible Assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to
the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less
accumulated amortization and accumulated impairment losses, if any. Goodwill arising on acquisition is carried at cost as established at
the date of acquisition of the business less accumulated impairment losses, if any.

Intangible assets are amortized over the estimated period of benefit, not exceeding ten years. The amortisation period and the
amortisation method for Intangible Assets with a finite useful life are reviewed at each reporting date.

Intangible assets is derecognised on disposal or when no future economic benefits are expected from use or disposal. Gains or losses
arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carrying
amount of the asset and recognised in the Statement of Profit and Loss when the asset is derecognised.

2.6 Impairment of Tangible & Intangible Assets

The Company tests for impairments at the close of the accounting period if and only if there are indications that suggest a possible
reduction in the recoverable value of an asset. If the recoverable value amount of an asset, i.e. the net realisable value or the economic
value in use of a cash generating unit, is lower than the carrying amount of the Asset the difference is provided for as impairment.
However, if subsequently the position reverses and the recoverable amount become higher than the then carrying value the provision
to the extent of the then difference is reversed, but not higher than the amount provided for.

For the purpose of impairment testing, goodwill is allocated to each of the cash-generating units expected to benefit from the synergies
of the combination.

Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an
indication that the unit may be impaired. If the recoverable amount of the cash generating unit is less than the carrying amount of the
unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other
assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is
not reversed in a subsequent period.

2.7 Revenue recognition

Revenue is recognized from engineering, procurement and commissioning 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 revenue is recognised to the extent of
transaction price allocated to the performance obligation satisfied. Revenue is adjusted towards liquidated damages wherever delay
are attributable to the company and price variations, wherever applicable. Escalation, variations in contract work and other claims are
included to the extent that the amount can be measured reliably and its receipt is considered probable.

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 party. Transaction price does not include any significant
financing component.

(i) Sale of products:

The Company recognizes revenue in relation to sale of products and ancillary products when it satisfies a performance obligation in
accordance with the contract with the customer. This is achieved when control of the product has been transferred to the customer,
which is generally determined when legaltitle, physical possession, risk of obsolescence, loss and rewards of ownership pass to the
customer and the Company has the present right to payment, all of which occurs at a point in time upon shipment or delivery of the
product.

(ii) Sale of Services:

The Company recognises revenue in relation to services using input method (i.e percentage-of-completion method), based primarily on
contract cost incurred to date compared to total estimated contract costs. 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.

Amounts billed and due from customers are classified as trade receivables in the balance sheet when right to consideration is
unconditional and only the passage of time is required before payment of the consideration is due. 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
Interest Income

Interest income is recognized on time proportion basis.

Dividend Income

Dividend income is recognised when the Company''s right to receive payment is established.

2.8 Investments in Subsidiaries

Investments in subsidiaries is accounted for at cost in the standalone financial statements in accordance with Ind AS 27 - Separate
Financial Statements. The cost of investment includes any directly attributable acquisition costs.

Such investments are subsequently measured at cost less any impairment losses, if applicable. The Company assesses at each reporting
date whether there is any indication that an investment may be impaired. If any indication exists, the carrying amount of the
investment is tested for impairment and written down to its recoverable amount, if required.

Dividend income from such investments is recognised in profit or loss when the Company''s right to receive the dividend is established.
On disposal of an investment, the difference between the carrying amount and the consideration received is recognised in profit or loss.

2.9 Inventories

Inventories are valued at the lower of cost and net realisable value. Cost comprises the purchase price, import duties, and any directly
attributable cost of bringing the inventories to their present location and condition. Cost is determined using the FIFO method.
Inventories include raw materials, work-in-progress, finished goods, stock-in-trade, and stores & consumables. Inventories are written
down to net realisable value when the expected selling price is less than cost, and a provision is made for obsolete or slow-moving
items. Such write-downs are recognised as an expense in the period in which they occur.

2.10 Cash and Cash Equivalents (for purpose of Cash Flow Statement)

All highly liquidated financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant
risk of change in value and having original maturities of three months or less from the date of purchase are considered to be cash
equivalents.

2.11 Cash Flow Statement

The above Statement of Cash Flows has been prepared using the Indirect Method in accordance with Ind AS 7, "Statement of Cash
Flows", as prescribed under the Companies (Indian Accounting Standards) Rules, 2015.

2.12 Foreign Currency Transactions & Forward Contracts
Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying the exchange rate between the reporting currency and
the foreign currency at the date of the transaction.

Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate at the date of the transaction; non-monetary items which are
carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed
when such values were determined.

Exchange differences:

Exchange differences arising on the settlement of monetary items or on reporting the Entity''s monetary items at rates different from
those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as
expenses in the year in which they occur.

2.13 Employee Benefits

Defined benefit plans and other long-term employee benefits

i ) Defined Contribution Plan

The Entity makes defined contribution to Government Employee Provident Fund, Government Employee Pension Fund, Employee
Deposit Linked Insurance and ESI, which are recognised in the Profit and Loss Account on accrual basis.

The Entity has no further obligations under these plans beyond its monthly contributions.

ii ) Defined Benefit Plan

The defined benefit plan of Company i.e. gratuity plan, provides for lump sum payment to vested employees on retirement / separation
as per the Payment of Gratuity Act, 1972. The Company''s liability towards gratuity is determined on the basis of actuarial valuation
done by an independent actuary using projected unit credit method, taking effect of Remeasurement gain and losses in Other
Comprehensive Income.

Remeasurement recognised in other comprehensive income is reflected immediately in retained earnings and is not reclassified to the
Statement of Profit and Loss.

iii ) Other Long-term Benefits

Compensated absences benefits comprise of encashment and availment of leave balances that were earned by the employees over the
period of past employment. The Company provides for the liability towards the said benefits on the basis of actuarial valuation carried
out yearly as at the reporting date, by an independent qualified actuary using the projected-unit-credit method. The related re¬
measurements are recognised in the statement of Profit and Loss in the period in which they arise.

iv) Short-term employee benefits

Short term employee benefits such as Salaries, wages, short term compensated absences, bonus, ex gratia and performance linked
rewards including non-monetary benefits that are expected to be settled wholly within 12 months after the end of period in which the
employees rendered the related services are recognised in respect of employee services upto the end of reporting period and are
measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as other provisions in the
balance sheet.

Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to
be paid in exchange for the related service.

2.14 Borrowing Costs

Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of lease liabilities.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets are capitalised as part of the
cost of such assets until they are ready for their intended use or sale.

Income earned on temporary investment of specific borrowings is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred.

2.15 Segment disclosures

In accordance with Ind AS 108, The operating segments are identified based on the internal reports that are regularly reviewed by the
Chief Operating Decision Maker ("CODM") in order to allocate resources to the segments and assess their performance. The Company''s
operating segments are determined in accordance with the manner in which performance is evaluated and resources are allocated. The
Board of Directors is collectively the Company''s ''Chief Operating Decision Maker'' or ''CODM'' within the meaning of Ind AS 108.

Segment revenue, expenses, assets and liabilities include items directly attributable to the segment as well as those that can be
allocated on a reasonable basis. Revenue, expenses, assets and liabilities that relate to the Company as a whole and are not allocable to
segments are presented as unallocable items, which primarily comprise corporate assets and liabilities, income tax assets and liabilities,
and other items not specifically attributable to any segment.

2.16 Lease

The Company considers whether a contract is, or contains a lease. A lease is defined as "a contract, or part of a contract, that conveys
the right to use an asset (the underlying asset) for a period of time in exchange for consideration". To apply this definition the Company
assesses whether the contract meets three key evaluations which are whether:

- the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at
the time the asset is made available to the Company.

- the Company has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period
of use, considering its rights within the defined scope of the contract.

- the Company has the right to direct the use of the identified asset throughout the period of use. The Company assesses whether it has
the right to direct ''how and for what purpose the asset is used throughout the period of use.

Measurement and recognition of leases as a lessee:

At lease commencement date, the Company recognizes a right-of-use asset and a lease liability on the balance sheet.

The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs
incurred by the Company, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments
made in advance of the lease commencement date (net of any incentives received). The Company depreciates the right-of-use assets
on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the
end of the lease term. The Company also assesses the right-of-use asset for impairment when such indicators exist.

At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date,
discounted using the interest rate implicit in the lease if that rate is readily available or the Company''s incremental borrowing rate. The
Company has elected to account for short-term leases using the practical expedients. Instead of recognizing a right-of-use asset and
lease liability, the payments in relation to these are recognized as an expense in profit or loss on a straight-line basis over the lease
term. Short-term leases are leases with a lease term of 12 months or less.

2.17 Earnings Per Share

The Company presents both basic and diluted earnings per share (EPS) for its ordinary shares.

Basic earnings per share is calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the year, adjusted for bonus elements in equity shares.

Diluted earnings per share is calculated by dividing the profit or loss attributable to equity shareholders, adjusted for the effects of
dilutive potential equity shares, by the weighted average number of equity shares outstanding during the year, adjusted for the effects
of all dilutive potential equity shares. Potential equity shares are considered dilutive only when their conversion reduces earnings per
share or increases loss per share.

2.18 Taxes on Income

Income tax expense represents the sum of the current tax and deferred tax. Current and deferred tax are recognised in the statement of
profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case,
the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively.

(a) Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from''profit before tax'' as reported in the
Statement of Profit and Loss because of items of income or expense that are taxable or deductible in other years and items that are
never taxable or deductible. The Company''s current tax is calculated using tax rates and laws that have been enacted or substantively
enacted by the end of the reporting period.

(2) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements
and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all
taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting period and reduced to the extent that it is no longer probable
that sufficient taxable profits will be available to utilize all or part of the deferred tax asset.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled
or the asset realised,based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting
period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in
which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax assets and liabilities and when
the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are offset when the Company has
legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability
simultaneously.

2.19 Operating cycle

Operating cycle for the business activities of the company related to long term contracts i.e. supply or construction contracts covers the
duration of the specific project/ contract including the defect liability period, wherever applicable and extends up to the realization of
receivables (including retention monies) within the agreed credit period normally applicable to the respective project/contract.

Assets and liabilities other than those relating to long-term contracts are classified as current if it is expected to realize or settle within
12 months after the balance sheet date.

Note 2 SIGNIFICANT ACCOUNTING POLICIES

2.1 Basis of Preparation of Financial Statements

The financial statements are prepared under the historical cost convention in accordance with the generally
accepted accounting principles in India. As per MCA notification dated 16th February 2015, the companies whose
shares are listed on "SME exchange" are exempted from the compulsory requirement of adoption of IND AS. As the
company is exempted from the compulsory requirement of adoption of IND AS, the company has not adopted IND
AS. The applicable mandatory Accounting Standards (as amended) specified under Section 133 of the Companies
Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014 of India have been followed in preparation of
these financial statements.

2.2 Use of Estimates

The preparation of Financial Statements requires the management to make certain estimates and assumptions that
affect the amounts reported in the Financial Statements and notes thereto. The management believes that the
estimates and assumptions are reasonable and prudent but actual results may differ from them. They are reviewed
on a on-going basis and any revision to accounting estimates is recognised prospectively in current and future
period. Accounting estimates and assumptions that have a significant effect on the amounts reported in the
Financial Statements include:

i) Net Realisable Value of Inventories;

ii) Useful life and residual value of Property, Plant and Equipment''s and Intangible Assets;

iii) Defined Benefit Obligation;

iv) Deferred Tax Asset or Liability;

v) Provision for Trade Receivable;

vi) Other Provisions and Contingencies

2.3 Revenue Recognition

Revenue is recognised to the extent, that it is probable that the economic benefits will flow to the Entity and the
revenue can be reliably measured.

(1) Sales

i) Sale of Goods;

Revenue from sale of goods is recognised when the significant risks and rewards of ownership of the goods are
transferred to the buyer and are recorded net of trade discounts, rebates, Sales Tax, Value Added Tax, Goods and
Service Tax.

ii) Sale of Services;

In case of Completed service contract revenues are recognised immediately when the service is provided and
approved by the contractee, whereas in case of Proportionate completion of contract revenue is recognised
proportionately by reference to the performance of each act.

The collection of Goods and Service Tax by company on behalf of government are not economic benefits to the
Company and hence they are excluded from the revenue and in case of services, the revenue is recognised when
the benefits are transferred.

(2) Interest Income

Interest income is recognized on accrual basis except when realization of such income is uncertain.

(3) Dividend

Dividend income is recognized when the right to receive payment is established.

(4) Insurance Claims

Insurance and other claims are recognised only when it is reasonably certain that the ultimate collection will be

2.4 Property, Plant and Equipment

Property, Plant & Equipment (PPE) comprises of Tangible assets and Capital Work in progress. PPE are stated at
cost, net of tax/duty credit availed, if any, after reducing accumulated depreciation and accumulated impairment
losses, if any; until the date of the Balance Sheet. The cost of PPE comprises of its purchase price or its construction
cost (net of applicable tax credit, if any), any cost directly attributable to bring the asset into the location and
condition necessary for it to be capable of operating in the manner intended by the management and
decommissioning costs. Direct costs are capitalized until the asset is ready for its intended use and includes
borrowing cost capitalised in accordance with the Company''s accounting policy.

Depreciation of PPE commences when the assets are ready for their intended use. Depreciation is provided on the
cost of PPE (other than properties under construction) less their residual values, using straight line method (SLM)
over the useful life of the PPE as stated in the Schedule II to the Companies Act, 2013. Useful Life of each class of
PPE as prescribed under Part C of Schedule II to Companies Act.

2.5 Foreign Currency Transactions & Forward Contracts
Initial recognition:

Foreign currency transactions are recorded in the reporting currency by applying the exchange rate between the
reporting currency and the foreign currency at the date of the transaction.

Conversion:

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in
terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the
transaction; non-monetary items which are carried at fair value or other similar valuation denominated in a foreign
currency are reported using the exchange rates that existed when such values were determined.

Exchange differences:

Exchange differences arising on the settlement of monetary items or on reporting the Entity''s monetary items at
rates different from those at which they were initially recorded during the year, or reported in previous financial
statements, are recognised as income or as expenses in the year in which they occur.

NOTE 2 SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India. The applicable mandatory Accounting Standards (as amended) specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014 of India have been followed in preparation of these financial statements.

(b) Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Management believes that these estimates and assumptions are reasonable and prudent. However, actual results could differ from estimates. Differences between the actual results and the estimates are recognised in the period in which the same are known/materialised.

(c) Revenue Recognition

(i) Sales

1) Sale of Goods;

In case of sale of goods, revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

2) Sale of Services;

In case of Completed service contract revenues are recognised immediately when the service is provided and approved by the contractee, whereas in case of Proportionate completion of contract revenue is recognised proportionately by reference to the performance of each act.

The collection of Goods and Service Tax by company on behalf of government are not economic benefits to the Company and hence they are excluded from the revenue and in case of services, the revenue is recognised when the benefits are transferred.

(ii) Interest Income

Interest income is recognized on accrual basis except when realization of such income is uncertain.

(iii) Dividend

Dividend income is recognized when the right to receive payment is established.

(iv) Insurance Claims

Insurance and other claims are recognised only when it is reasonably certain that the ultimate collection will be made.

(d) Property Plant and Equipment:

Property, Plant & Equipment (PPE) comprises of Tangible assets and Capital Work in progress. PPE are stated at cost, net of tax/duty credit availed, if any, after reducing accumulated depreciation and accumulated impairment losses, if any; until the date of the Balance Sheet. The cost of PPE comprises of its purchase price or its construction cost (net of applicable tax credit, if any), any cost directly attributable to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended by the management and decommissioning costs. Direct costs are capitalized until the asset is ready for its intended use and includes borrowing cost capitalised in accordance with the Company''s accounting policy.

Depreciation of PPE commences when the assets are ready for their intended use. Depreciation is provided on the cost of PPE (other than properties under construction) less their residual values, using straight line method (SLM) over the useful life of the PPE as stated in the Schedule II to the Companies Act, 2013. Useful Life of each class of PPE as prescribed under Part C of Schedule II to Companies Act.

(e) Intangible Assets and amortisation

Intangible Assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprise and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and accumulated impairment losses, if any.

Intangible assets are amortized over the estimated period of benefit, not exceeding ten years.

(f) Impairment of Assets

Intangible assets with finite useful life acquired separately, are recognized only if it is probable that future economic benefits that are attributable to the assets will flow to the enterprise and the cost of assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortization and accumulated impairment losses, if any. Intangible assets under development includes the cost of assets. Intangible assets are amortized over the estimated period of benefit, not exceeding ten years.

(h) Investments

Investments are either classified as current or long term based on the management intention at the time of purchase. Current investments are stated at lower of cost or fair value. Long term investments are shown at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

However, when there is decline, other than temporary in the value of long term investment, the carrying amount is reduced to recognize the decline.

(i) Borrowing Costs

Borrowing costs are interest and ancillary costs incurred in connection with the arrangement of borrowings.

General and specific borrowing costs attributable to acquisition and construction of qualifying assets is added to the cost of the assets up to the date the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted. All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred.

(j) Employee Benefits

a) Post employment benefits

i) Defined Contribution plan

The company''s contribution plan to defined contribution plan paid/payable for the year is charged to the Statement of Profit and loss.

ii) Defined Benefit plan

The Liabilities towards defined benefit schemes are determined using the Projected Unit Credit Method. Actuarial valuations under the Projected Unit Credit Method are carried out at the balance sheet date. Actuarial gains and losses are recognized in the Statement of Profit and Loss in the period of occurrence of such gains and losses. Past service cost is recognized immediately to the extent of benefits are already vested and otherwise it is amortized on straight-line basis over the remaining average period until the benefits become vested.

The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as reduced by the plan assets.

b) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability. These benefits include salary, wages, bonus, performance incentives etc.

c) Long term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized on the basis of unutilized leave balances at the end of the year.

(k) Taxes on Income

Tax expense for the year comprises current tax and deferred tax.

(i) Current Tax

The provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

(ii) Deferred Tax

Deferred tax assets and liabilities are recognized on timing differences, being the differences between taxable incomes and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods using tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax assets, other than on unabsorbed depreciation and carried forward losses, are recognised only if there is reasonable certainty that they will be realised in the future. Deferred tax assets in respect of unabsorbed depreciation and carry forward losses are recognized if there is virtual certainty that there will be sufficient future taxable income available to realize such losses. Deferred Tax assets are reviewed at each balance sheet date for their realisability.

(I) Leases

Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Lease rentals are charged to Statement of Profit and Loss.