Accounting Policies of Ishan International Ltd. Company

Mar 31, 2025

1 Significant Accounting Policies a Company Overview

Ishan International Limited. (“the Company”) is a limiited Company incorporated in India having its registered office at New Delhi, India. The Company is in Engineering , Procurement and Construction (EPC) Business. The Company was registred as Private Limited Company under the provisions of The Companies Act, 1956 and got converted in to Limited company on 17th January, 2022. It''s Equity Shares are Listed at National Stock Exchange (NSE)

b Basis of Preperation

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 thereof issued by Ministry of Corporate Affairs in exercise of the powers conferred by 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. These financials statements have been approved for issue by the Board of Directors at their meeting held on 22nd May, 2025.

c Basis of Accounting

The Company maintains its accounts on accrual basis following historical cost convention, except for certain financial instruments that are measured at fair value in accordance with Ind AS. Fair value measurements are categorised as below 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:

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

Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.

d Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash Flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

e Operating cycle for current and non-current classification

Operating cycle for the business activities of the company covers the duration of the specific project/contract/ product line/service including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention monies) within the agreed credit period normally applicable to the respective lines of business.

f Use of judgement and estimates

The preparation of the financial statements in conformity with Ind AS requires management to make certain estimates, judgements and assumptions. These affect the application of accounting policies, the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the reporting date of the financial statements and reported amounts of income and expenses during the period. Accounting estimates could change from period to period and the actual results could differ from those estimates. These are reviewed by the management on an on-going basis and appropriate changes in estimates are made prospectively as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

The management believes that the estimates used in preparation of these financial statements are just, prudent and reasonable. g 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 item and disclosed as such in the financial statements.

h 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. PPE acquired on hire purchase basis are recognised at their cash values. Cost includes professional fees related to the acquisition of PPE and for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy.

Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and capitalised as a part of the cost of the PPE.

PPE not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”. (Also refer to policy on leases, borrowing costs, impairment of assets and foreign currency transactions infra).

Depreciation is recognised using written Down value method so as to write off the cost of the assets (other than freehold land and properties under construction) 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 method is reviewed at each financial year end to reflect the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/ residual value is accounted on prospective basis.Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is depreciated over its separate useful life

Depreciation on additions to/deductions from, owned assets is calculated pro rata to the period of use. Extra shift depreciation is provided on a location basis.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is allocated over its remaining useful life.

Assets acquired under finance leases are depreciated on a straight line basis over the lease term. Where there is reasonable certainty that the Company shall obtain ownership of the assets at the end of the lease term, such assets are depreciated based on the useful life adopted by the Company for similar assets.

Freehold land is not depreciated Such classes of assets and their estimated useful lives are as under:	Useful Lives (In Years)
Particulars of Assets	15
Plant and Machinery	30
Factory Premises and Weighbridge	8
Motor cars, Trucks and Dumpers etc.	10
Furniture and Other equipments	5
Office equipments	3
Computers

i Foreign currency Transactions

Transactions arising in foreign currencies during the year are converted at the rates closely approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign currency are restated at the year-end exchange rates. All exchange rate differences arising from conversion in terms of the above are included in the statement of profit and loss

j Revenue Recognition

Ind AS 115: The objective of this Standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

Indentifying the Contract

An entity shall account for a contract with a customer that is within the scope of this Standard only when all of the following criteria are met:

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations;

(b) the entity can identify each party’s rights regarding the goods or services to be transferred;

(c) the entity can identify the payment terms for the goods or services to be transferred;

(d) the contract has commercial substance (ie the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract); and

(e) it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In

evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer’s ability and intention to pay that amount of consideration when it is due. The amount of consideration to which the entity will be entitled may be less than the price stated in the contract if the consideration is variable because the entity may offer the customer a price concession.

Identifying Performance Obligation:

At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer either: (a) a good or service (or a bundle of goods or services) that is distinct; or 596 (b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

Satisfaction of performance obligations:

An entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

Performance obligations satisfied over time

When either party to a contract has performed, an entity shall present the contract in the balance sheet as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment. An entity shall present any unconditional rights to consideration separately as a receivable.

Measurement

When (or as) a performance obligation is satisfied, an entity shall recognise as revenue the amount of the transaction price (which excludes estimates of variable consideration) that is allocated to that performance obligation.

Determining the transaction price

An entity shall consider the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

k Investments:

Under Ind AS, these financial assets have been classified as Fair Value through Profit or Loss (FVTPL) on the date of transition and fair value changes after the date of transition has been recognised in profit or loss.

l Fair value measurement :

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties.

The following methods and assumptions were used to estimate the fair values:

(a)

Fair value of current assets which includes loans given, cash and cash equivalents, other bank balances and other financial assets - approximate their carrying amounts.

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

m Borrowings

Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised in Profit or Loss in the period in which they are incurred.

n Financial Instruments

Financial assets and/or financial liabilities are recognised when the company becomes party to a contract embodying the related financial instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from as the case may be, the fair value of such financial assets or liabilities, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in Profit or Loss.

In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares, the excess of the actual amount of the funding over initially measured fair value is accounted as an equity investment.

A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability simultaneously.

(i) Financial Assets

(A) All recognised financial assets are subsequently measured in their entirety either at amortised cost or at fair value dependi ng on the classification of the financial assets as follows:

(i) Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value.

⁽ⁱⁱ⁾ Investments in debt instruments that meet the following conditions are subsequently measured at - at amortised cost (unless the same designated as fair value through profit or loss):

The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Investment in debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)

The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iv) Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or loss.

(v) Investment in equity instruments issued by subsidiary, associate and joint venture companies are measured at cost less impairment.

(^vi) Investment in preference shares of the subsidiary companies are treated as equity instruments if the same are convertible into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose of redemption of such investments. Investment in preference shares not meeting the aforesaid conditions are classified as debt instruments at FVTPL.

(vii) Investments in equity instruments are classified as at FVTPL, unless the related instruments are not held for trading and the Company irrevocably elects on initial recognition to present subsequent changes in fair value in Other Comprehensive Income.

(B)

For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified to profit or loss.

In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments.

(C) A financial asset is primarily derecognised when:

(i) the right to receive cash flows from the asset has expired, or

(ii) the 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 (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amounts measured at the date of derecognition and the consideration received is recognised in Profit or Loss.

^(D) Impairment of financial assets: The Company recognises impairment loss on trade receivables using expected credit loss model, which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS 109. Impairment loss on investments is recognised when the carrying amount exceeds its recoverable amount.

(ii) Financial Liabilities

⁽ⁱ⁾ Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are subsequently measured at fair value. Financial guarantee contracts are subsequently measured at the amount of impairment loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher. All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method.

A financial liability is derecognised when the related obligation expires or is discharged or cancelled.

Inventories

Inventories are valued after providing for obsolescence, as under:

(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net realisable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are expected to be sold at or above cost.

(ii) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. In the case of qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing costs.

⁽ⁱⁱⁱ⁾ Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable value. Cost includes related overheads and GST paid/payable on such goods.

^(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically identifiable cost or net realisable value.

Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.

p Cash and Bank Balances

Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation.

Short term and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash equivalents.

q Securities Premium Account

Securities premium includes:

(i) The difference between the face value of the equity shares and the consideration received in respect of shares issued.

(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium account.

r Employee Benefits

(i) Short Term Employee Benefits

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period i n which the employee renders the related service.

(ii) Post Employment Benefits

(a) Defined contribution plans: The Company’s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/payable under the schemes is recognised during the period in which the employee renders the related service.

^(b) Defined Benefit Plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of trustees established by the Company, the post-retirement medical care plan and the Company pension plan represent defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss. Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the company recognises related restructuring costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise the obligation on a net basis.

(iii) Long Term Employee benefits

The obligation recognised in respect of long term benefits such as compensated absences, long service award etc. is measured at present value of estimated future cash flows expected to be made by the Company and is recognised in a similar manner as in the case of defined benefit plans vide (ii)(B) supra.

Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements, re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefit expenses. Interest cost implicit in long term employee benefit cost is recognised in the Statement of Profit and Loss under finance cost.

(iv) Terminal Benefits

Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company’s offer of the termination benefit is accepted or when the Company recognises the related restructuring costs whichever is earlier.

s Taxes on Income

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessments/ appeals.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company’s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that 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 the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and carried f orward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

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 reporting period, to recover or settle the carrying amount of its assets and liabilities.

Transaction or event which is recognised outside Profit or Loss, either in Other Comprehensive Income or in equity, is recorded along with the tax as applicable. t Leases

Ind AS 116 - Leases which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract and replaces the previous standard on leasing, Ind AS 17 - Leases. Ind AS 116 eliminates the classification of leases for the lessee as either operating leases or finance leases as required by Ind AS 17 and instead, introduces a single lessee accounting model whereby a lessee is required to recognise assets and liabilities for all leases with a term that is greater than 12 months, unless the underlying asset is of low value, and to recognise depreciation of leased assets separately from interest on lease liabilities in the income statement.

The accounting by lessors under the new standard is substantially unchanged from today’s accounting in Ind AS 17. Lessors classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. For operating leases, lessors continue to recognize the underlying asset. For finance leases, lessors derecognize the underlying asset and recognize a net investment in the lease similar to today’s requirements. Any selling profit or loss is recognized at lease commencement.

u Provisions, contingent Liabilities and Contingent Assets

Provisions are recognised only when

(i) the Company has a present obligation (legal or constructive) as a result of a past event; (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(ii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible. Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

v Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as at the date of Balance Sheet.

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Mar 31, 2024

1 Significant Accounting Policies a Company Overview

Ishan International Limited. (“the Company”) is a limiited Company incorporated in India having its registered office at New Delhi, India. The Company is in Engineering , Procurement and Construction (EPC) Business. The Company was registred as Private Limited Company under the provisions of The Companies Act, 1956 and got converted in to Limited company on 17th January, 2022. Its equity shares are listed at National Stock Exchange (NSE)

b Basis of prepration

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 issued by the Institute of Chartered Accountants of India (ICAI) are also applied except where compliance with other statutory promulgations require a different treatment. These financials statements have been approved for issue by the Board of Directors at their meeting held on 4th July, 2024.

c Basis of Accounting

The Company maintains its accounts on accrual basis following historical cost convention, except for certain financial instruments that are measured at fair value in accordance with Ind AS. Fair value measurements are categorised as below 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:

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

Level 2 inputs are inputs, other than quoted prices included in level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs are unobservable inputs for the valuation of assets or liabilities.

Above level of fair value hierarchy are applied consistantly and generally, there are no transfer between the level of the fair value hierarchy unless the circumstances changes warranting such transfers

d Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 (“the Act”). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 “Statement of Cash Flows”. The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the financial statements along with the other notes required to be disclosed under the notified Accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended.

e Operating cycle for current and non-current classification

Operating cycle for the business activities of the company covers the duration of the specific project/contract/ product line/service including the defect liability period wherever applicable and extends up to the realisation of receivables (including retention monies) within the agreed credit period normally applicable to the respective lines of business.

f Use of judgement and estimates

The preparation of the financial statements in conformity with Ind AS requires management to make certain estimates, judgements and assumptions. These affect the application of accounting policies, the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the reporting date of the financial statements and reported amounts of income and expenses during the period. Accounting estimates could change from period to period and the actual results could differ from those estimates. These are reviewed by the management on an on-going basis and appropriate changes in estimates are made prospectively as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements. The management believes that the estimates used in preparation of these financial statements are just, prudent and reasonable.

g 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 item and disclosed as such in the financial statements.

h 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. PPE acquired on hire purchase basis are recognised at their cash values. Cost includes professional fees related to the acquisition of PPE and for qualifying assets, borrowing costs capitalised in accordance with the Company’s accounting policy.

Own manufactured PPE is capitalised at cost including an appropriate share of overheads. Administrative and other general overhead expenses that are specifically attributable to construction or acquisition of PPE or bringing the PPE to working condition are allocated and capitalised as a part of the cost of the PPE.

PPE not ready for the intended use on the date of the Balance Sheet are disclosed as “capital work-in-progress”. (Also refer to policy on leases, borrowing costs, impairment of assets and foreign currency transactions infra).

Depreciation is recognised using written Down value method so as to write off the cost of the assets (other than freehold land and properties under construction) 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 method is reviewed at each financial year end to reflect the expected pattern of consumption of the future economic benefits embodied in the asset. The estimated useful life and residual values are also reviewed at each financial year end and the effect of any change in the estimates of useful life/ residual value is accounted on prospective basis. Where cost of a part of the asset (“asset component”) is significant to total cost of the asset and useful life of that part is different from the useful life of the remaining asset, useful life of that significant part is determined separately and such asset component is depreciated over its separate useful life.

Depreciation on additions to/deductions from, owned assets is calculated pro rata to the period of use. Extra shift depreciation is provided on a location basis.

Depreciation charge for impaired assets is adjusted in future periods in such a manner that the revised carrying amount of the asset is allocated over its remaining useful life. Assets acquired under finance leases are depreciated on a straight line basis over the lease term. Where there is reasonable certainty that the Company shall obtain ownership of the assets at the end of the lease term, such assets are depreciated based on the useful life adopted by the Company for similar assets.

Freehold land is not depreciated

Such classes of assets and their estimated useful lives are as under:

Useful Lives (In

Particulars of Assets

Years)

Plant and Machinery 15

Factory Premises and Weighbridge 30

Motor cars, Trucks and Dumpers etc. 8

Furniture and Other equipments 10

Office equipments 5

Computers 3

The Company have a program of verification to cover all the items of fixed assets in a phased manner. Fixed assets were physically verified by the management during the year.

i Foreign currency Transactions

Transactions arising in foreign currencies during the year are converted at the rates closely approximating the rates ruling on the transaction dates. Liabilities and receivables in foreign currency are restated at the year-end exchange rates. All exchange rate differences arising from conversion in terms of the above are included in the statement of profit and loss

j Revenue Recognition

Ind AS 115: The objective of this Standard is to establish the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

Indentifying the Contract

An entity shall account for a contract with a customer that is within the scope of this Standard only when all of the following criteria are met:

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform their respective obligations;

(b) the entity can identify each party’s rights regarding the goods or services to be transferred;

(c) the entity can identify the payment terms for the goods or services to be transferred;

(d) the contract has commercial substance (ie the risk, timing or amount of the entity’s future cash flows is expected to change as a result of the contract); and

(e) it is probable that the entity will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In evaluating

whether collectability of an amount of consideration is probable, an entity shall consider only the customer’s ability and intention to pay that amount of consideration when it is due. The amount of consideration to which the entity will be entitled may be less than the price stated in the contract if the consideration is variable because the entity may offer the customer a price concession.

Identifying Performance Obligation:

At contract inception, an entity shall assess the goods or services promised in a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer either: (a) a good or service (or a bundle of goods or services) that is distinct; or 596 (b) a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

Satisfaction of performance obligations:

An entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (i.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

Performance obligations satisfied over time

When either party to a contract has performed, an entity shall present the contract in the balance sheet as a contract asset or a contract liability, depending on the relationship between the entity’s performance and the customer’s payment.

An entity shall present any unconditional rights to consideration separately as a receivable.

Measurement

When (or as) a performance obligation is satisfied, an entity shall recognise as revenue the amount of the transaction price (which excludes estimates of variable consideration) that is allocated to that performance obligation.

Determining the transaction price

An entity shall consider the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both.

k Investments:

Under Ind AS, these financial assets have been classified as Fair Value through Profit or Loss (FVTPL) on the date of transition and fair value changes after the date of transition has been recognised in profit or loss.

l Fair value measurement :

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties.

The following methods and assumptions were used to estimate the fair values:

(a) Fair value of current assets which includes loans given, cash and cash equivalents, other bank balances and other financial assets - approximate their carrying amounts.

(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

m Borrowings

Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an adjustment to interest costs.

Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the acquisition, construction or production of a qualifying asset are capitalised/inventoried as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised in Profit or Loss in the period in which they are incurred.

n Financial Instruments

Financial assets and/or financial liabilities are recognised when the company becomes party to a contract embodying the related financial instruments. All financial assets, financial liabilities and financial guarantee contracts are initially measured at transaction values and where such values are different from the fair value, at fair value. Transaction costs that are attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from as the case may be, the fair value of such financial assets or liabilities, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in Profit or Loss.

In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares, the excess of the actual amount of the funding over initially measured fair value is accounted as an equity investment.

A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability simultaneously.

(i) Financial Assets

(A) All recognised financial assets are subsequently measured in their entirety either at amortised cost or at fair value depending on the classification of the financial assets as

(i) Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value.

(ii) Investments in debt instruments that meet the following conditions are subsequently measured at - at amortised cost (unless the same designated as fair value through profit or The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Investment in debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income [FVTOCI] (unless the same are designated as fair value through profit or loss)

The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iv) Debt instruments at FVTPL is a residual category for debt instruments, if any, and all changes are recognised in profit or loss.

(v) Investment in equity instruments issued by subsidiary, associate and joint venture companies are measured at cost less impairment.

(vi) Investment in preference shares of the subsidiary companies are treated as equity instruments if the same are convertible into equity shares or are redeemable out of the proceeds of equity instruments issued for the purpose of redemption of such investments. Investment in preference shares not meeting the aforesaid conditions are classified as debt instruments at FVTPL.

(vii) Investments in equity instruments are classified as at FVTPL, unless the related instruments are not held for trading and the Company irrevocably elects on initial recognition to present subsequent changes in fair value in Other Comprehensive Income.

(B) For financial assets that are measured at FVTOCI, income by way of interest and dividend, provision for impairment and exchange difference, if any, (on debt instrument) are recognised in profit or loss and changes in fair value (other than on account of above income or expense) are recognised in other comprehensive income and accumulated in other equity. On disposal of debt instruments at FVTOCI, the cumulative gain or loss previously accumulated in other equity is reclassified to profit or loss. In case of equity instruments at FVTOCI, such cumulative gain or loss is not reclassified to profit or loss on disposal of investments.

(C) A financial asset is primarily derecognised when:

(i) the right to receive cash flows from the asset has expired, or

(ii) the 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 (a) the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.On derecognition of a financial asset in its entirety, the difference between the carrying amounts measured at the date of derecognition and the consideration received is recognised in Profit or Loss.

(D) Impairment of financial assets: The Company recognises impairment loss on trade receivables using expected credit loss model, which involves use of a provision matrix

constructed on the basis of historical credit loss experience as permitted under Ind AS 109. Impairment loss on investments is recognised when the carrying amount exceeds its recoverable amount.

(ii) Financial Liabilities

(i) Financial liabilities, including derivatives and embedded derivatives, which are designated for measurement at FVTPL are subsequently measured at fair value. Financial

guarantee contracts are subsequently measured at the amount of impairment loss allowance or the amount recognised at inception net of cumulative amortisation, whichever is higher. All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method.

A financial liability is derecognised when the related obligation expires or is discharged or cancelled. o Inventories

Inventories are valued after providing for obsolescence, as under:

(i) Raw materials, components, construction materials, stores, spares and loose tools at lower of weighted average cost or net realisable value. However, these items are considered to be realisable at cost if the finished products in which they will be used, are expected to be sold at or above cost.

(ii) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some cases, manufacturing work-in-progress are valued at lower of specifically identifiable cost or net realisable value. In the case of qualifying assets, cost also includes applicable borrowing costs vide policy relating to borrowing

(iii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable value. Cost includes related overheads and GST paid/payable on such goods.

(iv) Completed property/work-in-progress (including land) in respect of property development activity at lower of specifically identifiable cost or net realisable value.

Assessment of net realisable value is made at each reporting period end and when the circumstances that previously caused inventories to be written-down below cost no longer exist or when there is clear evidence of an increase in net realisable value because of changed economic circumstances, the write-down, if any, in the past period is reversed to the extent of the original amount written-down so that the resultant carrying amount is the lower of the cost and the revised net realisable value.

p Cash and Bank Balances

Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash equivalents.

q Securities Premium Account

Securities premium includes:

(i) The difference between the face value of the equity shares and the consideration received in respect of shares issued.

(ii) The issue expenses of securities which qualify as equity instruments are written off against securities premium account. r Employee Benefits

(i) Short Term Employee Benefits

Employee benefits such as salaries, wages, short term compensated absences, expected cost of bonus, ex-gratia and performance-linked rewards falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related seivice.

(ii) Post Employment Benefits

(a) Defined contribution plans: The Company’s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans.The contribution paid/payable under the schemes is recognised during the period in which the employee renders the related service.

(b) Defined Benefit Plans: The employees’ gratuity fund schemes and employee provident fund schemes managed by board of trustees established by the Company, the postretirement medical care plan and the Company pension plan represent defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss. Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee benefits expense. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the company recognises related restructuring costs or termination benefits.In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise the obligation on a net basis.

(iii) Long Term Employee benefits

The obligation recognised in respect of long term benefits such as compensated absences, long service award etc. is measured at present value of estimated future cash flows expected to be made by the Company and is recognised in a similar manner as in the case of defined benefit plans vide (ii)(B) supra.Long term employee benefit costs comprising current service cost and gains or losses on curtailments and settlements, re-measurements including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefit expenses. Interest cost implicit in long term employee benefit cost is recognised in the Statement of Profit and Loss under finance cost.

(iv) Terminal Benefits

Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company’s offer of the termination benefit is accepted or when the Company recognises the related restructuring costs whichever is earlier.

s Taxes on Income

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act,1961 and based on the expected outcome of assessments/ appeals.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company’s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax liabilities are generally recognised for all taxable temporary differences including the temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are generally recognised for all taxable temporary differences to the extent that 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 the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head “capital gains” are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.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 reporting period, to recover or settle the carrying amount of its assets and liabilities.Transaction or event which is recognised outside Profit or Loss, either in Other Comprehensive Income or in equity, is recorded along with the tax as applicable.

t Leases

Ind AS 116 - Leases which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract and replaces the previous standard on leasing, Ind AS 17 - Leases. Ind AS 116 eliminates the classification of leases for the lessee as either operating leases or finance leases as required by Ind AS 17 and instead, introduces a single lessee accounting model whereby a lessee is required to recognise assets and liabilities for all leases with a term that is greater than 12 months, unless the underlying asset is of low value, and to recognise depreciation of leased assets separately from interest on lease liabilities in the income statement.

The accounting by lessors under the new standard is substantially unchanged from today’s accounting in Ind AS 17. Lessors classify all leases using the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. For operating leases, lessors continue to recognize the underlying asset. For finance leases, lessors derecognize the underlying asset and recognize a net investment in the lease similar to today’s requirements. Any selling profit or loss is recognized at lease commencement.

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Mar 31, 2023

Significant Accounting Policies

¦ Company Overview

Itfwn International Limited, (the Company'') is a hmnted Company incorporated m India having its rep-stored office at New Delhi, India. The Company is in Engineering . Procurement and Construction (EPC) BuMnesa. The Company was repaired as
Private Limited Company under the provisions of The Companies Act 1956 and got converted in to Limited company on 17th January. 2022.
b Statement of Compbence

Tha Company''s financial statements have been prepared m accordance with the provisions of the Companies Act. 2013 and the Indian Accowrtmg Standards find AS") notified under the Comparves (Indian Accounting Standards) Rules. 2015 and
amendments thereof issued by Miisstry of Corporate Affairs m everc.-se of the powers conferred by section 133 of the Companies Ad 2013. In addOon. the guidance notssfannounoemsnts -ssued by the Institute of Chartered Accountants of India |ICAI) are
also applied except where compliance with other statutory promulgations require a different treatment. These financials statements have bean approved for issue by the Board of Directors at their meeting held on 30th June. 2021.
c Basis of Accounting

Tht Company maintains its accounts on accrual basis foNowmg histoncal cos* convention, except for certain financial insbuments that are measured at fan value In accordance with Ind AS. Fair value measurements are categorised as below based on the

degree to which die inputs to die fair value measurements are observable and the significance of the irputs to the tair value measurement n its entirety

Level I inputs are quoted prices (uiedjusted) ei active markets for identical assets or labilities that the company can access at measurement date

Level 2 infests are inputs, other than quoted prices included in level 1, that era observable for the asset or liabJity either directly or indirectly and

Level 3 inputs are ixiobeervable inputs for the valuation of assets or fiattbOes.

Above level of fan vakie hierarchy are applied coneislantiy and generally, there are no transfer between the level of die fair value hierarchy unless the circumstances changes warranting such transfers
d Presentation of financial statements

The Balance Sheet and the Statement of Profit and Loss ere prepared and presented in the format prescribed in the Schedule III to the Compares Act, 2013 rtha Act''). Tha Statement of Cash Flows has bam prepared and presented as per the requiremen
of Ind AS 7 ''Statement of Cash Flows'' The dsdowure requirements with respect to items m the Balance Sheet and Statement of Profit and Loss as preserved «n the Schedule III to the Act or# presented by way of notes forming part of the financial
siafoments along with tha other notes required to be dsdoaed under the notified Accounting Standards and the SEBI | Listing Obligations and Osdosur* Requirements) Regulations 2015 as amended
e Operating cycle for current and non-current classification

Operating cyde for the business activities of the company covers the (fixation of the specific project/eontract/ product Imefsemce indudmg the defect totality period wherever applicable and extends up to the realisation of receivable* (indudmg retention
monies) wttfrn the agteed credit period normally applicable to the respective lines of txuwnese.

1 Use of lodgement and estimates

The preparation of the financial statement* m conformity vwth Ind AS requires management to make certain estimates lodgement* and assumption* These affect the application of accounting policies the reported amounts of assets end liabilities the
dsdosu-efe of contingent assets and liabilities at the reporting date of tha financial statements and reported amount* of income and expenses during the period. According estimates could change from period to penod and the actual resets could after fror
those estimates. These are reviewed by the management on an on-gomg basis and appropriate changes m estimates are made prospectively as management becomes aware of changes in circumstances sunouiding the estimates Changes in estimates
are reflected in the financial statements in the period in which changes are made and, if material, thee affects are disclosed m the notes to the financial statements
The management befceve* that the estimates used in preparation of these financial statements are just prudent and reasonable
g 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 item and drsdoeed as such m the financial statements
h Property, Plant and Equipment (PPE)

Pf>£ is recogn.sed when it -s probaNe that tuftre 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 credit* availed, if any. less »cumulated
dep''eoatlon and cumulative impairment, if any. PPE acquired on hire purchase basis are reeogrssed at their cash values. Cost indudes professional fees related to the acquisition of PPE and for qualifying assets, bonowung costs capitaksed in accorfiance
with the Company’s accounting pokey.

Own manufactured PPE is capitalised at cost indudmg an appropriate share of overheads. Administrative and other general overhead expenses that are specifically attributable to construction or acquisrtion of PPE or brmgr^j the PPE to working condition
ar* allocated and capitalised as a part of the cost ot tha PPE.

PPE not ready for the mtended use on the data of the Balance Sheet are disclosed as ''capital workwvprogr#**'' (Also refer to policy on leases borrowing costs, impairment of assets end foreign currency transactions infra).

Depreciation is recogn.sed using written Down value method so as to write off the cost of the assets (other than freehold land and properties under construction) less their residual values over their useful lives specified in Schedule II to the Compar.es Act
2013 or in the case of assets where the useful life was determined by techmcal evakat.cn over the useful life so determmed. Depreciation method is reviewed at each financ-al yeai end to retted the expected pattern of consumption of the future economic
benefits emboded in the asset The estimated useful life and residual values are also reviewed at each financial year and and the effect of any change in the estimates of usafU kfe/ residual value is accounted on prospective basis

ViAiere cost ot a part of the asset (''asset component'') is srgmficant to total coat of the asset and useful If* of that part is Afferent from the useful life of the remaining asset usefii life of that significant part is determined separately and such asset componer
is depreciated over its separate useful life.

Depredation on additions tofdaduebons from, owned assets is cakxiated pro rata to tha penod of use Extra atutt depreciafion is provided on a location basis.

Depreciation charge for impaired assets is adjusted m future period* m such a manner that the revised carrying amount of the asset is allocated over its remaining useful life. Assets acquired under finance leases are depreciated on a straight line basis over
ffie lease term. Where there is reasonaMe certainty that the Company shall obtain ownershp of the assets at tha and of tha lease term, such assets are depreciated based (to the useful Me adopted by the Company for similar assets
Freehold land •* not depreciated

Such classes of assets and their estimated useful lives are as under

P«r«cwl»s at A».n u^tul Lives |h V.srsl

Plant and Machinery

Factory Premises and Weighbridge

Motor cars. Trucks and CXjmpers etc. g

Furniture and Other equipments »

Office equpmont* j

Computers ₃

The Company does not have a program of verification to cover all the items of fixed assets in a phased manner. Fixed assets were not physicety venfled by the management during the year.

I Revenue Recognition

Ind AS 115 The objective of this Standard is to establish the principles that an on Sty shill apply to report useful mformatHto to users of financial statements about the nature, amount timing and uncertainty of revenue and cash flows anting from a contract
with a customer,
tndenbfyeng the Contract

An entity shall account for a contract with a customer that is within the scope of ttvs Standard only when all of the foflowmg criteria are met

(a) the parties to the contract have approved the contract (in writing, orally or in accordance with other customary business practices) and are committed to perform thee respective obligations.

(b) the entity can identify each party * rights regarding the goods or services to be transferred

(c) the entity can identify the payment terms for the goods or services to be transferred.

(d) the contract has commercial substance (ie the ntk, timing or amount of the entity''s future cash flows is expected to change as a rest* of the contact), end

(#) it is probable that the entity will collect the consideration to which it wrti be entitled in exchange tor the good* or services that will be transferred to the customer. In evaluating whether coMactabihty of an amount of consideration is probaMe. an enbty
shall consider only the customer * ability and intention to pay that amount of conwderabon when it is due The amount of conwderaSon to which the entity wdl be entitled may be less than the price stated in the contract it the consideration is variable
because the entity may offer tie customer a price concession
Identifying Performance Obligation:

At contract inception, an entity shal assess the goods or services promised In a contract with a customer and shall identify as a performance obligation each promise to transfer to the customer other (a) a good or service (v a bundle of goods or services)
that is AsbncC or 596 (b) a sene* of distinct goods or services that are substantial the same and that have the same pattern of transfer to the customer.

Satisfaction of performance obligations:

An entity shall recognise revenue when (or as) the entity satisfies a performance obligation by transferring a promised good or service (t.e. an asset) to a customer. An asset is transferred when (or as) the customer obtains control of that asset.

Performance obligations satisfied over time

WiAien either party to a connect has performed, an entity shal present the contract m the balance sheet as a contract asset or a contract liability, dependng on the relabonsfxp between tne entity''s performance and the customer s payment An entity ehel
present any unconditional nj^its to consideration separately as a receivable.

Measurement

When (or as) a performance obligation is sabsfied. an entity shad recognise as revenue the amount of the transaction price (which excludes estimates of variable consideration) that is allocated to that performance obligation
Determining the transaction price

An entity shall consider the terms of the contract and It* customary business practices to determine the transaction pnee The transaction pnea is the amount of consideration to which an entity expects to be entitled m exchange lor transferring promised
goods or services to a customer, excluding amounts collected on behalf of third parties (for example, tom* sales taxes) The consideration promised in a contract with a customer may mdude fixed amounts, variable amounts, or both.

| Investments:

Under Ind AS. these financial assets have been classified as Fair Value through Profit or Lots (FVTPL) on the data of transition end fair value changes after the data of transition has been recopxsed m profit or loss,
k Fair value measurement:

Tha fair values of (he financial assets and liabilities are included at tha amount at which the instrument could be exchanged in a current transaction between willing parties.

Tha following methods and assumptions were used to estimate the fair values.

(a) Fair vafire of current assets vAwch includes loans given cash and cash equivalents, other bank balances and other financial assets - apcxoemale their carrying amomt*

(b) Financial nstrument* with fixed and van a tie interest rates are evaluated by the Company based on parameter* mch as interest rates end individual credit worthiness of the coirtterparty. Based on this evaluation, allowance* are taken to account for
expected losses of these receivable*. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

I Borrowings

Borrowing costs incfed* interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease and exchange differences arising on foreign currency borrowings to the extent they are regarded as an
ad|u*tment to interest costa.

Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to the acquisrtion, construction or production of a qualifying asset are caprtalisedfinventoned as part of cost ot such asset Ml such time
ttw asset is ready for rts intended use or sale. A quakfying asset is an asset that necessarty requires a substantial penod of time to get ready for its intended use ot sale AM other borrowing costs are recognised in Profit or Loss in the penod in which they are
incurred.

m Financial Instruments

Financial assets andior finenoai liabilities are recognised when the company becomes party to a contract embodying the related financial instruments. All Anenoal assets, financial iabiMas and financial guarantee contract* are irabalty measured at
transaction values and where such values are d-Hexent horn the ten value, at fa* value. Transaction costs that are aiti-butobte to the acquisition or issue of financial assets and financial liatxlmes (othar than financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted from as the case may be the fair value of auch financial assets or kabdties. on irsnal recognition Transaction cost* directly attributable to the acquisition of ftnanoal assets or financial liabilities at fair value
through profit or loss are racogrxsed immediately in Profit or Loas.

In case of funding to subsidiary companies in the form of interest free or concession loans and preference shares, the excess of he actual amount of tha funding over inibaAy measured fair value is accounted as an equity investment.

(I) Financial Assets

(A) All recognised financial assets are subsequently measured in their entirety eilher at amortised cost or at fair value depending on the classification of the financial assets as follows
(i) Investments in debt instruments that are designated as fair value through profit or loss (FVTPL) - at fair value.

(II) Investments In debt instrument* that meet the following conditions are subsequently measured at - at amortised cost (ihless the same designated as fair value through profit or lots):

The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flow*, and

Tha contractual terms of instrument give nte on apeofied date* to cash flows that are solely payment* of prmcipM and interest on the principal amount outstanding. f''

(Si) Investment m debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income [FVTOCI) (unless the same are desipiated as lair value through profit or toes) \

Tha asset is held within a business model whose objective is achieved both by collecting contractual cash flows and seflmg financial assets and \

The cone-actual terms of instrument give rise on specified dates to cash flows that aie solely payments of principal and interest on the pnnopal amount outsianAr^j.

(Iv) Debt nstrument* at FVTPL is a residual category for debt Instruments, if any. and all changes are recognised in profit or loss. *

(v) Investment in equty instruments issued by eubOKhary, associate and joint venture companies are measured at cost less impairment \ \

VA,

(V») Investment in preference shares ot the Si*)S>t>ary companies are treated es equity imminent* if the same are convertible mto eqiaty sheree or are redeemable out of the proceede of equity instruments issued for the purpose of redemption of euch
investments. Investment m preference share* not meeting the aforesaid conditions are classified es debt instruments at FVTPL.

(vh) Investment* in equity instruments are classified as at FVTPL, unless the related instruments are not held for tradng and the Company irrevocably elects on initial recognition to present subsequent changes m for value in Other Comprehensive

(B) For financial assets that are measured at FVTOCI "come by way of interest and dividend provision for impairment and exchange afferent* if eny. (on debt instrument) ere recogrxsed in profit or loss and changes m ta* value (other than on
account of above income or expense) ere recognised in oVier comprehensive income and accumulated in other equity. On disposal of debt instruments at FVTOCI the cumulative gam or losa previously accumulated in other eqiety i* reclassified to
profit or loss. In case of equity msbtanents at FVTOCI, such cumulative gain or lose is not reclassified to profit or loss on disposal of investments.

(C) A financial asset is pnmarily daracogrvsad >vh»n

(i) the right to receive cash flows from the asset has expired, or

(*) the company has transferred its rights to receive cash flows from the asset or has assumed an obligator) to pay the received cash flows in full without material delay to a third party under a pass-through arrangement and (a) the company has
transferred substantially all the risks and rewards of the asset or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset *1 its entirety the difference between the carrying amounts measured at the data of derecognition end (he consideration received is recogrvsed m Proflt or Lose.

(D) Impairment of financial assets The Company recognises impairment loss on trade receivables using expected credit loss model, which involves use of a provision matrix constructed on the bests of historical credit toes experience as permitted under
Ind AS 109. Impairment loss on awestments is recognised when the carrying amount exceeds its recoverable amount

(H) Financial UaMHbet

(I) Financial liabilities including derivative* and embedded derivatives which are designated for measurement at FVTPL are subsequently measured at fa* value Financial guarantee contracts are subsequently measured at the amocre of impairment
loss allowance or the amount recognised at inception net of cumulative amortisation whichever is higher All other financial liabilities including loans and borrowings are measured at amortised cost using Effective Interest Rate (EIR) method

A financial liability ia derecognised when the related obligation expires or is discharged or cancelled,
n Inventories

Inventones are valued after providing for obsolescence as under

10 Raw materials components, construction materials stores, spares and loose tools at lower of weighted average cost or net realisable value. However, these items are considered to be realisable at cost if the finished products in which they wifl be
used, are expected to be sold at or above cost.

(''•) Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value. In some cases, manufactunng work-in-progress are valued at lower of speafically identifiable cost or net realisable value. In the
case of qualifying assets, cost also includes applicable borrowing costa vide policy relating to borrowing costs.

(•ii) Finished goods and stock-in-trade (in respect of goods acquired for trading) at lower of weighted average cost or net realisable value. Cost includes related overheads and GST paidfeayabte on such goods.

(rv) Completed property/work-in-progress (hcluifing land) in respect of property development activity at lower of speoficatty identifiable cost or net realisable value.

Assessment of net realisable value is made at each reporting penod end and when the circumstances that previously caused inventories to be written-down below cost no longer exist or whan there is dear evidence of an increase m net realisable value
because of changed economic circumstance*, the wnte-down, if any. in the pest period is reversed to the extent of the original amount written-down so hat the resxJtant carrying amount is the lower of the cost and the revised net realisable value,
e Cash and Bank Balances

Cash and bank balances also indud* fixed deposits margin money deposits, earmarked balances wath banks and other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to more than ^significant risk of
change in value, are not induded as part of cash and cash equivalents,
p Securities Premium Account

Securities premium includes:

|i) The difference between the face value of the equity share* and the conoderation received in respect of shares issued.

(ii ) The issue expenses of securities which qualify as equity instruments are written off against securities premium account

q Employee Benefits

(i) Short Term Employee Benefits

Employee benefits such as salancs. wage* short tsrm compensated absences, expected cost of bonus, ex-gratia and performance-* nked rewards fafcng due wholly witten twrfve month* of rwidenng the swvice are classified as short term employee
benefits and are expensed in the period «i which the employee renders the related service.

(a) Post Employment Benefits

(a) Defined contribution plans: The Company s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee penewn scheme are defined contribution plans The contribution paid/payable under
the schemes is recognised during the penod in wfech the employee renders the related service

(b) Defined Benefit Plans: The employees gratuity fund schemes end employee provident fijnd schemes managed by board of trustee* established by the Company, the post-retirement medical cei* plan end the Company pension plan represent
defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation usng the Projected Unit Credit Method.

The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on government securities ot a maturity penod equivalent to the weighted average maturity profile of the defined benefit
obligations at the Balance Sheet date.

Re-measurement, comprising actuarial gams and tosses the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset) and any change in the effect of asset ceding (if applicable) comprehensive income and is reflected in retamed eammgs and the same is not efcgble to be reclassified to profit or loss Defined benefit costs comprismg current service cost peat service cost and gams or losses on settlements are recoyssed in the
Statement of Profit and Loss as employee benefits expense Interest cost implicit in defined benefit employe* cost is recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised
when the settlement occurs. Past service cost rs recognised as expense at the earlier of the plan amendment or curtailment and vriien the company recognise* related restructLrmg costs or termination benefits.

In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise die othgabon on a net basis.

(ill) Long Term Employee benefits

The obligation recognised in respect ot long term benefits such a* compensated absence*, long service award etc is measured at present value of estimated future cash flow* expected to be made by th# Company and is recounted in a similar manner as in
Vie case of defined benefit plans vide (*)(B) supra.

Long term employee benefit costs comprising current service coat and gems or losses on curtailments and settlements. r*-m*asur#m*nts including actuarial gains and losses are recognised in the Statement of Profit and Loss as employee benefit exposes.
Interest coat Implicit in long term employee benefit cost is recognised ir. Vie Statement of Profit and Loss under finance cost. _v

(iv) Terminal Benefit*

Termination benefits such as compensation under employee separation scheme* are recogmsed as expense when (he Company * offer of the termination benefit is accepted or when the Company recogreses th# related restructuring costs wtechever is
r Taxes on Income

Tax on moo me for the current penod is determined on the basis of taxable income and tax credits computed m accordance with the provision* of the Income Tax Act 1961 and based on the expected outcome of assessments/ appeals.

Deferred tax is recognised on temporary differences between the carrying amount* of assets end liabilities in the Company * financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and
laws enacted or substantively enacted as on the Balance Sheet date

Deferred tax liabilities are generaVy recognised for al taxable temporary differences mckiding th# temporary differences associated with investments m subsidiaries and associates, and eiterests m joed ventores, except where th* company is able to control
the reversal of the temporary difference and it is probable that the temporary difference vwfl not reverse In the foreseeable future

Deferred tax aseet* are generally recognised for all taxable temporary differences to th# extent that •* probable that taxable profits wfll be avaflabt# against which those deductible temporary differences can be uMieed. Th# carrying amoiad of deferred tax
assets is reviewed at the end of each reporting penod end reduced to the extent that it is no longer probable that sufficient taxable profits wifl be available to allow all or part of the asset to be recovered

Deferred tax assets relating to inabsorbed deprecubonfeutine** lossesflosses under the head ''captal gams* are recogrased and earned forward to Vie extent of available taxable temporary differences or where there is convincing other evidence that
sufficient future taxable income wtH be available against wtveh such deferred tax assets can be realised.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at th# end of reporting period, to recover or sortie the carrying amount of its assets and liabilities
Transaction or event which is recognised outside Profit or Lose, either In Other Comprehensive Income or in equity, is recorded along with the tax as applicable,
s Accounting for Joint Ventures:

The company has booked turnover and related coat of Joint Venhee entities and partners in its books of account However, the whole projects have bean handled by Joint Vent ire Partners / Entities and related GST and TDS complied by Joint Venture
Partners/ Entities
s Leases

Ind AS 116 - Leases w*»ch sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract and replace* the previous standard on leasing, tod AS 17 - Leases Ind AS 116 eliminates the
da66rfication of leases for the lessee as either operating leases or finance leases as required by Ind AS 17 and instead, introduces a single lessee accounting model whereby a lessee •* required to recoyvse assets and liabilities for all leases with a term that
is greater than 12 months, unless the undertying asset is of low value and to recognise depreciation of leased assets separately from interest on lease Debilities in the income statement

Th* accounting by lessors under th* new standard is substanbaHy unchanged from today''s accounting in Ind AS 17. Lessors classify all teases using the same classification pnncipie a* m IAS 17 and distinguish between two types of operating and

finance leases For operating leases, lessors continue to recognize We underlying asset. For finance leases lessors derecognize the underlying asset and recognize a net investment in Vi# lease smular to today * requirement*. Any sMhng profit or loss is
recognized at lease commencement