Accounting Policies of Globe Civil Projects Ltd. Company

Mar 31, 2025

3.1. Property, Plant and Equipment

Cost of Property, Plant and Equipment comprises its purchase price net of any trade discounts and rebates,
any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any
directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing
costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after Property,
Plant and Equipment are ready for intended use, viz repairs and maintenance, are charged to Statement of
Profit and Loss in the period in which the costs are incurred.

Subsequent costs are included in asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to Company and
the cost of the item can be measured reliably. The carrying amount of any component accounted for as a
separate asset is derecognised when replaced.

Depreciation method, estimated useful life and residual value

Depreciation on tangible fixed assets is provided under Written Down Value method based on useful life of the
assets as prescribed in Schedule II to the Companies Act, 2013.

Depreciation on additions is being provided on pro-rata basis from the date of such additions. Similarly,
depreciation on assets sold/ disposed off during the period is being provided up to the date on which such
assets are sold/ disposed off.

Each part of an item of PPE with a cost that is significant in relation to the total cost of the item is depreciated
separately.

3.2. Investment Property
Recognition

Property (land or a building-or part of a building-or both) that is held for long term rental yields or for capital
appreciation or both is recognized as Investment Property, except

i. Use in the production or supply of goods or services or for administrative purposes; or

ii. Sale in the ordinary course of business

Investment property is measured initially at its cost, including related transaction costs. Borrowing costs are
capitalized if the asset is a qualifying asset per Ind AS 23.

Subsequent Measurement

Subsequent expenditure is capitalized to the assets carrying amount only when it is probable that future
economic benefits associated with the expenditure will flow to Company and cost of item can be measured
reliably. All other expenses viz repairs, and maintenance costs are expensed when incurred. When part of an
investment property is replaced, carrying amount of replaced part is derecognised.

Depreciation

Depreciation is provided on all Investment Property on Written Down Value method, based on useful life of
the relevant assets as prescribed in Schedule II to the Companies Act, 2013. The estimated useful life, residual
values and depreciation method are reviewed at end of each reporting period.

Derecognition

An Investment Property is derecognised (eliminated from the balance sheet) on disposal or when the
investment property is permanently withdrawn from use and no future economic benefits are expected from
its disposal.

An Investment Property is also derecognised when property is transferred to owner-occupied property; or
commencement of development with a view to sale, or transfer to inventories.

3.3. Intangible assets & Amortisation of Intangible assets

Intangible assets represent computer software and are at their cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import
duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any
directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts
and rebates.

Intangible assets are being amortised on Written Down Value method over the useful life, not exceeding 5
years, as estimated by management to be the economic life of the asset over which economic benefits are
expected to flow.

3.4. Leases

Company assesses at contract inception where a contract is, or contains, a lease. That is, if contract conveys
right to control use of an identified asset for a period of time in exchange for consideration.

Company as a Lessee

The company applies a single recognition and measurement approach for a portfolio of leases with reasonably
similar characteristics, except for short-term leases and certain leases of low-value assets.

Company recognizes lease liabilities to make lease payments and right-of-use assets representing right to
use underlying assets.

Right-of-use assets (ROU Assets)

Company recognizes Right-of-Use assets at commencement date of lease (i.e., date underlying asset
is available for use). Right-of-Use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. Cost of Right-of-Use assets
includes amount of lease liabilities recognized, initial direct costs incurred, estimate of costs to be incurred by
Company in restoring office to condition required by terms and conditions of lease and lease payments made
at or before commencement date less any lease incentives received. Right-of-Use assets are depreciated on
a straight-line basis over the shorter of lease term and estimated useful life of assets. Right-of-Use assets are
also subject to impairment.

Lease Liabilities

At commencement date of lease, Company recognizes lease liabilities measured at present value of lease
payments to be made over lease term. Lease payments include fixed payments (including in-substance fixed
payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate,
and amounts expected to be paid under residual value guarantees. Lease payments also include exercise
price of a purchase option reasonably certain to be exercised by Company and payments of penalties for
terminating lease, if lease term reflects Company exercising option to terminate.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in period
in which event or condition that triggers payment occurs. In calculating present value of lease payments,
Company uses its incremental borrowing rate at lease commencement date. Incremental borrowing rate
represents rate Company would have to pay to borrow over a similar term, and with a similar security, funds
necessary to obtain asset of similar value to leased asset in a similar economic environment.

After commencement date, amount of lease liabilities is increased to reflect accretion of interest and
reduced for lease payments made. In addition, carrying amount of lease liabilities is remeasured if there is a
modification, a change in lease term, a change in lease payments (e.g., changes to future payments resulting
from a change in an index or rate used to determine such lease payments) or a change in assessment of an
option to purchase underlying asset.

Lease liability and ROU asset have been separately presented in Balance Sheet and lease payments have
been classified as financing cash flows.

Short-term leases and leases of low-value assets

The company applies short-term lease recognition exemption to its leases with a lease term of 12 months or
less from commencement date and do not contain a purchase option (short-term leases).

It also applies lease of low-value assets recognition exemption to leases of assets that are considered to be
low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense
on a straight-line basis over lease term.

Company as a Lessor

The company acts as lessor through entering into leases related to office building. Leases for which Company
is a lessor is classified as a finance or operating lease. Whenever terms of lease transfer substantially all risks
and rewards of ownership to lessee, contract is classified as a finance lease. All other leases are classified as
operating leases.

Assets subject to operating leases are presented according to nature of underlying asset in statement of
financial position as Investment Properties.

Rental income arising from an operating lease is accounted for on a straight-line basis over lease term and
is included in other income.

3.5. Impairment of Tangible, Intangible Assets and Right of Use Assets

Management of Company assesses at each reporting date and each Balance Sheet date whether there
is any indication that carrying amount of its non- financial asset has been impaired. If any such indication
exists, provision for impairment is made in accordance with Ind AS-36. An Impairment loss is recognized as
exceptional item for amount by which asset’s carrying amount exceeds its recoverable amount.

Recoverable amount is higher of an asset’s fair value less costs of disposal and value in use. Non-financial
assets that suffered an impairment are reviewed for possible reversal of impairment at end of each reporting
period.

3.6. Inventories

Construction Material

Construction Materials are valued at the lower of cost or net realisable value. Cost is determined using the
weighted average method and includes all direct costs incurred in bringing the materials to the site, including
freight, duties (non-recoverable), and handling charges.

Work-in-Progress (WIP)

Work-in-Progress in respect of construction contracts is valued at lower of cost or net realisable value.
Cost comprises direct materials, direct labour, site overheads, and other attributable costs incurred up to
the reporting date, determined using the percentage of completion method, where applicable. The stage
of completion is measured based on actual progress certified by clients, technical estimates, or internal
measurements. It also includes costs relating to contractual variations, claims, substitute items, extra items,
part rates, and deviations to the extent these are reasonably measurable and expected to be recoverable.

Consumables and Disposables

Consumables and disposables are valued at cost or net realisable value, whichever is lower. Cost is determined
on a weighted average basis. However, consumables/disposables which are purchased specifically for a
contract and expected to be consumed in full during the period are expensed off at the time of purchase if
immaterial in value.

Stock-in-Trade (Resale Goods)

Stock-in-trade is valued at the lower of cost or net realisable value. Cost is determined using the weighted

average method and includes purchase price, duties (other than those recoverable), freight, and other costs
incurred to bring the inventory to its present location and condition. 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.

3.7. Cash and Cash Equivalents

Cash and Cash equivalents include Cash on hand and at bank and other short-term highly liquid investments
with original maturities of three months or less that are readily convertible to a known amount of cash and
are subject to an insignificant risk of changes in value and are held for purpose of meeting short-term cash
commitments.

3.8. Revenue Recognition
Measurement of Revenue

Rendering of services represents revenue earned under a wide variety of contracts with customers to provide
Construction related services to clients.

Revenue from contracts with customers is recognized over time using the input method, as services are
progressively provided. This approach is applied in cases where the Company has an enforceable right to
payment, including a reasonable profit margin, for work performed to date. In other cases, where services are
consumed by customers as they are performed, revenue is also recognized over time, as control of the service
transfers continuously.

The input method is used to measure progress towards satisfying the performance obligation, as it reflects
the Company’s actual efforts and costs incurred, which are directly aligned with the transfer of services to
customers. This method provides a faithful representation of service delivery, since billing is generally based
on costs incurred.

Variable consideration is estimated at contract inception or at the moment of an adjustment in the scope or
price of the contract and constrained until it is highly probable that a significant revenue reversal in amount
of cumulative revenue recognized will not occur when the associated uncertainty with variable consideration
is subsequently resolved.

Payment is generally due upon specific agreed moments during the performance of services, on moments
that coincide with the work being performed. Using practical expedient in Ind AS 115, Company does not adjust
the consideration for the effects of a significant financing component if it expects, at contract inception, that
the period between Company’s entitlement to payment from the customer and Company’s performance
under the contract will be less than twelve months.

Item rate contracts

In case of item rate contracts, revenue is recognized according to the method of billing provided in agreement
with the contractees and on the basis of physical measurement of work actually completed and certified by
the contractees before finalization of project accounts at the balance sheet date.

Lump sum contracts

In case of lump sum contracts, Revenue is recognized on the completion of milestones as specified in the
contract or as identified by the management. Foreseeable losses are accounted for as and when they are
determined except to the extent they are expected to be recovered through claims or to be presented to the
contractee or in arbitration.

Sale of Goods

Revenue from supply contract is recognized when substantial risk and rewards of ownership is transferred to
the buyer, which normally coincide with the delivery of goods.

Income from scrap/salvage and waste material is recognized as and when sold.

Claims

(i) Arbitration claims are recognized as revenue in the year of receipt of arbitration award or acceptance
by the contractee or evidence of acceptance received and there is reasonable certainty that awarded
amount shall be realized.

(ii) Additional claims (including for escalation), which in the opinion of the management are recoverable
under the contract, are recognized at the time of executing the job or acceptance by the contractee
or evidence of acceptance received and there is reasonable certainty that awarded amount shall be
realized.

Unbilled revenue i.e “Contract Asset” represents unmeasured/ uncertified work executed on ongoing projects
which have achieved the stage/ benchmarking of billing.

Contract Modifications, Claims, and Reassessment of Variable Consideration

The Company evaluates contract modifications on an ongoing basis to determine whether they should be
accounted for as a separate contract or as part of the existing contract. A contract modification is accounted
for as a separate contract if the modification results in the addition of distinct goods or services and the price
increases by an amount that reflects the stand-alone selling price of the additional goods or services.

For ongoing projects, the Company reassesses its estimates related to variable consideration, including claims,
performance bonuses, and penalties, at each reporting date. Adjustments to revenue are made prospectively
when the outcome of a contract modification or a change in estimate becomes known, provided it is highly
probable that a significant reversal of revenue will not occur.

Contractual claims (including escalation or scope variations) are recognized only when there is sufficient
evidence that the amount is enforceable, can be reliably measured, and it is highly probable that a significant
revenue reversal will not occur.

Contract Balances

• Amounts to be billed

A contract asset is recognized when the Company has a right to consideration in exchange for goods or
services that the entity has transferred to a customer when that right is conditional on something other
than the passage of time. A contract receivable is an amount to be billed for which payment is only a
matter of passage of time.

• Trade Receivables

A receivable represents Company’s right to an amount of consideration that is unconditional (i.e., only
the passage of time is required before payment of the consideration is due). Reference is made to the
accounting policies of financial assets.

• Payments on account

A contract liability is the obligation to transfer services to a customer for which Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration
before Company transfers services to the customer, a contract liability is recognized when the payment
is made or the payment is due (whichever is earlier) as Payments on account, presented in Trade and
Other Payables.

3.9. Income Recognition

Interest Income

Interest income from debt instruments is recognised using effective interest rate method. The Effective Interest
Rate (eir) is rate that exactly discounts estimated future cash receipts through expected life of financial asset
to gross carrying amount of a financial asset. When calculating effective interest rate, Company estimates
expected cash flows by considering all contractual terms of financial instrument but does not consider
expected credit losses.

Other Income

Other claims including interest on outstanding are accounted for when there is virtual certainty of ultimate
collection.

3.10. Borrowing costs

Borrowing Costs directly attributable to acquisition, construction or production of a qualifying asset that
necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part
of the cost of asset. Financing Cost incurred on general borrowing used for projects is capitalized at weighted
average cost. Amount of such borrowing is determined after setting off amount of internal accruals. All other
borrowing costs are expensed in the period in which they occur.

Borrowing costs consist of interest and other costs that the Company incurs in connection with the borrowing
of funds and interest on tax matters. Borrowing cost also includes exchange differences to the extent regarded
as an adjustment to borrowing cost.

3.11. Financial Instruments - Initial Recognition and Subsequent Measurement

A Financial Instrument is any contract that gives rise to a Financial Asset of one Entity and a Financial Liability
or Equity Instrument of another Entity.

Financial Assets

Financial Assets are measured at amortised cost or Fair Value through Other Comprehensive Income or
Fair Value through Profit or Loss, depending on its business model for managing those Financial Assets and
Liabilities and Assets and Liabilities contractual cash flow characteristics.

Subsequent measurements of Financial Assets are dependent on initial categorisation. For impairment
purposes significant financial assets are tested on an individual basis, other financial assets are assessed
collectively in Companies that share similar credit risk characteristics.

Financial Liabilities

Financial Liabilities at Fair Value through Statement of Profit and Loss include financial liabilities held for trading
and financial liabilities designated upon initial recognition as at Fair Value through Statement of Profit and
Loss.

Loans and Borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using Effective Interest Rate (hereinafter referred as EIR) method. Gains and Losses are recognised in
statement of profit and loss when liabilities are derecognised as well as through EIR amortisation process. EIR
amortisation is included as Finance Costs in statement of profit and loss.

Trade and Other Payables

A payable is classified as ’Trade Payable’ if it is in respect of amount due on account of goods purchased or
services received in normal course of business. These amounts represent liabilities for goods and services
provided to Company prior to end of financial year which are unpaid. Trade and other payables are presented
as current liabilities unless payment is not due within 12 months after reporting period.

Offsetting of Financial Instruments

Financial Assets and Financial Liabilities are offset, and net amount is reported in balance sheet if there is a
currently enforceable legal right to offset recognised amounts and there is an intention to settle on a net basis,
to realise assets and settle liabilities simultaneously.

3.12. Impairment of Financial Assets

In accordance with Ind AS 109, Company applies Expected Credit Loss (ecl) model for measurement and
recognition of impairment loss on financial assets that are debt instruments, and are measured at amortised
cost e.g., Loans, Debt Securities, Deposits and Trade Receivables or any contractual right to receive cash or

another financial asset that result from transactions that are within scope of Ind AS 115.

Company follows ‘Simplified Approach’ for recognition of impairment loss allowance on trade receivables.
Application of simplified approach recognises impairment loss allowance based on lifetime ECL at each
reporting date, right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not
increased significantly, 12-month ECLis used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, Company reverts to recognising
impairment loss allowance based on 12-month ECL.

ECL impairment loss allowance (or reversal) recognized during the period is recognized under the head ‘Other
Expenses’ in the statement of Profit and Loss. The Balance Sheet presentation for various financial instruments
is described below:

Financial assets measured as at amortised cost:

ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the Balance
Sheet. This allowance reduces the net carrying amount.

Debt instruments measured at FVTPL:

Since financial assets are already reflected at fair value, impairment allowance is not further reduced from its
value. Change in fair value is taken to the statement of Profit and Loss.

Debt instruments measured at FVTOCI:

Since financial assets are already reflected at Fair Value, impairment allowance is not further reduced from
its value. Company does not have any Purchased or Originated Credit Impaired (POCl) financial assets, i.e.,
financial assets which are credit impaired on purchase/origination.

3.13. De-Recognition of Financial Assets & Financial Liabilities

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial
assets) is primarily derecognised (i.e. removed from the Company’s Balance Sheet) when:

i. The rights to receive cash flows from asset has expired, or

ii. Company has transferred its rights to receive cash flows from the asset or has assumed an obligation
to pay the received cash flows in full without material delay to a third party under a ‘pass through’
arrangement and either

(a) Company has transferred substantially all risks and rewards of the asset, or

(b) Company has neither transferred nor retained substantially all risks and rewards of the asset but
has transferred control of the asset.

When Company has transferred its rights to receive cash flows from an asset or has entered into a pass¬
through arrangement, it evaluates, if and to what extent it has retained risks and rewards of ownership.

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, Company continues to recognise transferred asset to the extent of the
Company’s continuing involvement. In that case, Company also recognises an associated liability. Transferred
asset and the associated liability are measured on a basis that reflects rights and obligations that Company
has retained.

Financial Liability is de-recognised when obligation under the liability is discharged or cancelled or expires.
Consequently, write back of unsettled credit balances is done on the previous experience of Management
and actual facts of each case and recognised in Other Operating Income if arising during normal course of
business. When an existing Financial Liability is replaced by another from same lender on substantially different

terms, or the terms of an existing liability are substantially modified, such an exchange or modification is
treated as de-recognition of the original liability and the recognition of a new liability. Difference in respective
carrying amounts is recognised in the Statement of Profit and Loss.

3.14. Statement of Cash Flows

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby
profit/ (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or
accruals of past or future cash receipts or payments. Cash flows from operating, investing and financing
activities of the Company are segregated based on available information.

For purpose of Statement of Cash Flows, Cash and Cash Equivalents consists of cash and short-term deposits,
as defined above, net of outstanding bank overdraft as they are considered an integral part of Company’s
cash management.

3.15. Equity and Reserves

Share Capital represents nominal value of shares that have been issued. Any transaction costs associated
with issuing of shares are deducted from retained earnings, net of any related income tax benefits.

Other Components of Equity includes Other Comprehensive Income arising from actuarial gain or loss on re¬
measurement of defined benefit liability and return on plan assets

Retained Earnings include all current and prior period retained profits.

3.16. Earnings Per Share (EPS)

Company presents basic and diluted earnings per share (“EPS”) data for its equity shares.

Basic EPS is calculated by dividing profit/ (loss) attributable to equity shareholders of the Company by
weighted average number of equity shares outstanding during the period.

Diluted EPS is computed using profit/ (loss) for the year attributable to equity shareholders and weighted
average number of equity and potential equity shares outstanding during the period, except where the
result would be anti-dilutive. Potential equity shares that are converted during the year are included in the
calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential
equity shares, to the date of conversion.

3.17. Fair Value Measurement

Company measures financial instruments at fair value at each balance sheet date.

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. Fair value measurement is based on
presumption that transaction to sell asset or transfer liability takes place either:

i. In the principal market for asset or liability, or

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

iii. The principal or the most advantageous market must be accessible to Company.

Fair Value of an asset or liability is measured using assumptions that market participants would use when
pricing the asset or liability, assuming that market participants act in their economic best interest.

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

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

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized

within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole.

Level 1- Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2- Valuation techniques for which lowest level input that is significant to fair value measurement is
directly or indirectly observable.

Level 3- Valuation techniques for which lowest level input that is significant to fair value measurement is
unobservable.

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

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.

Other Fair Value related disclosures are given in the relevant notes.

3.18. Employee benefits

Provident Fund and Employees'' State Insurance

Company makes contributions to statutory Provident Fund in accordance with the Employees Provident Fund
and Miscellaneous Provisions Act, 1952 which is a defined contribution plan. These funds are administered
through Regional Provident Fund Commissioner and the contribution paid or payable is recognised as an
expense in the year in which services are rendered by the employee. Company has no legal or constructive
obligations to pay further contributions after payment of fixed contribution.

The company’s contribution to state plans namely Employee’s State Insurance Fund and Employee’s Pension
Scheme 1995 for eligible employees is recognised as an expense in the year in which services are rendered by
employee.

Gratuity

Liability recognized in respect of gratuity is present value of defined benefit obligation at end of reporting period
less fair value of plan assets. Defined benefit obligation is calculated annually by actuary using Projected Unit
Credit Method.

Remeasurement comprising actuarial gains and losses and return on plan assets (excluding net interest) are
recognized in Other Comprehensive Income for period in which they occur and is not reclassified to profit or
loss.

Other Short-Term benefits

Expense in respect of other short-term benefits is recognized on the basis of amount paid or payable for the
year during which services are rendered by employees.

Leave Encashment and Compensated Absences

Liabilities for Leave Encashment and Compensated Absences as on balance sheet date is not necessary as
leaves are not accumulated and are encashed during the year or lapsed as per the policy of the company.

3.19. Foreign Currencies

Functional and Presentation Currency

Items included in Standalone Financial Statements are measured using currency of primary economic
environment in which entity operates (‘functional currency’).

Standalone Financial Statements is presented in Indian Rupees 5, which is Company’s functional and

presentation currency. Financial Statements are presented in g in million rounded off up to two decimal points.
Transactions and Balances

In Standalone Financial Statements of the Company, transactions in currencies other than functional currency
are translated into functional currency at exchange rates ruling at date of transaction. Monetary assets and
liabilities denominated in other currencies are translated into functional currency at exchange rates prevailing
on reporting date. Non-monetary assets and liabilities denominated in other currencies and measured at
historical cost or fair value are not retranslated.

All exchange differences are included in the statement of profit and loss.

For advance consideration received or paid in a foreign currency, the date of transaction for determining the
exchange rate is the date on which the advance is recognized, in accordance with Ind AS 21.

3.20. Share Issue Expenses

Share issue expenses comprise incremental costs directly attributable to the issuance of equity shares. Such
expenses are initially recorded as Other Current Assets when incurred, pending completion of the share issue.

Upon successful issuance of shares, these expenses are adjusted against the Securities Premium Account, in
accordance with the provisions of Section 52 of the Companies Act, 2013 and the requirements of Ind AS 32 -
Financial Instruments: Presentation.

Any share issue-related costs that are not directly attributable to the equity issuance are charged to the
Statement of Profit and Loss in the period in which they are incurred.

3.21. Segment Reporting

i. Operating segments are reported in a manner consistent with internal reporting provided to the Chief
Operating Decision Maker.

ii. Revenue and Expenses are identified to segments on the basis of their relationship to the operating
activities of the segment.

iii. The Company generally accounts for intersegment sales and transfers at cost plus appropriate margins.

iv. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are
included under “Unallocated revenue/ expenses/ assets/ liabilities”.

3.22. Income Taxes

Income tax expense represents sum of tax currently payable and deferred tax.

Tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as
reported in 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 that have been enacted or substantively enacted by end of reporting period.

Deferred tax is recognised on temporary differences between carrying amounts of assets and liabilities
in Standalone Financial Statements and corresponding tax bases used in computation of taxable profits.
Deferred income tax assets and liabilities are recognized for all temporary differences arising between tax
bases of assets and liabilities and their carrying amounts in Standalone Financial Statements.

Carrying amount of deferred tax assets is reviewed at end of each reporting period and reduced to extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of asset to be recovered.

Deferred tax liabilities and assets are measured at tax rates that are expected to apply in period in which
liability is settled or asset realised, based on tax rates (and tax laws) that have been enacted or substantively
enacted by end of reporting period.

Current and Deferred Tax are recognised in profit or loss, except when they relate to items that are recognised
in other comprehensive income or directly in equity, in which case, income taxes are also recognised in other
comprehensive income or directly in equity respectively.