Accounting Policies of Om Infra Ltd. Company

Mar 31, 2025

2.01 Statement of Compliance:

Standalone Financial Statements have been prepared inaccordance with the accounting
principles generally acceptedin India including Indian Accounting Standards (Ind
AS)prescribed under the section 133 of the Companies Act,2013 read with rule 3 of the
Companies (Indian AccountingStandards) Rules, 2015 and the Companies (Accounting
Standards) Amendment Rules, 2016.

The aforesaid financialstatements have been approved by the Board of Directors in the
meeting held on 30th May,2025.

2.02 Basis of Preparation and Presentation:

The Standalone Financial Statements have been prepared on the historical cost basis except
for certain financial instruments measured at fair values at the end of eachreporting period,
as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for
goods and services. Fair value is the price that would be received to sell an assetor paid for
transfer a liability in an orderly transaction between market participants at the measurement
date, regardless of whether that price is directly observable or estimated using another
valuation technique. In estimating the fair value of an asset or a liability, the Company takes
in to account the characteristics of the asset or liability if market participants would take
those characteristics into account when pricing the asset or liability at the measurement date.
Fair value for measurement and/or disclosure purposes in these financial statements is
determined on such a basis, except for sharebased payment transactions that are within the
scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and
measurements that have some similarities to fairvalue but are not fair value, such as net
realizable value in Ind AS 2 or value in use in Ind AS 36.

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

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

Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable
for the asset or liability, either directly or indirectly; and

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

Accounting policies have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting standard requires a
change in the accounting policy hitherto in use.

As the year-end figures are taken from the source and rounded to the nearest digits, the
figures reported for the previous quarters might not always add up to the year figures reported
in the statement.

2.03 Use of Estimates & Judgements:

(a) The preparation of the financial statements in conformity with Ind AS requires the
Management to make estimates, judgments and assumptions. These estimates, judgments
and assumptions affect the application of accounting policies and the reported amounts of
assets and liabilities, the disclosures of contingent assets and liabilities at the date of the
financial statements and reported amounts of revenues and expenses during the period. The
application of accounting policies that require critical accounting estimates involving complex
and subjective judgments and the use of assumptions in these financial statements have been
disclosed. Accounting estimates could change from period to period.

Actual results could differ from those estimates. Appropriate changes in estimates are made
as the 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.

(b) Estimation of uncertainities relating to the global health pandemic from COVID-19.

The Company has considered the possible effects that may result from the pandemic relating
to COVID-19 on the carrying amounts of receivables, unbilled revenues and investment in
subsidiaries. In developing the assumptions relating to the possible future uncertainties in the
global economic conditions because of this pandemic, the Company, as at the date of approval
of these financial statements has used internal and external sources of information including
credit reports and related information, economic forecasts. The Company has performed
sensitivity analysis on the assumptions used and based on current estimates expects the
carrying amount of these assets will be recovered. The impact of COVID-19 on the Company’s
financial statements may differ from that estimated as at the date of approval of these
financial statements.

2.04 Basis of Classifications of Current and Non-Current:

All the assets and liabilities have been classified as current or non-current in the balance
sheet.

An asset has been classified as current if (a) it is expected to be realized in, or is intended for
sale or consumption in, the Company’s normal operating cycle; or (b) it is held primarily for
the purpose of being traded; or (c) it is expected to be realized within twelve months after the
reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged
or used to settle a liability for at least twelve months after the reporting date. All other assets
have been classified as non-current.

A liability has been classified as current when (a) it is expected to be settled in the Company’s
normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is
due to be settled within twelve months after the reporting date; or (d) the Company does not
have an unconditional right to defer settlement of the liability for at least twelve months after
the reporting date. All other liabilities have been classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.05 Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
For the year ended March 31,2025, MCA has not notified any new standards or amendments
to the existing standards applicable to the Company.

2.06 Revenue Recognition:

Company mainly derives business from executing turnkey projects and sale of goods and
services. Company is also in the business of real estate sector, manufacturing of plastic caps
and hotel business activities.

Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue from Contracts with
Customers” using the cumulative catch-up transition method, applied to contracts that were
not completed as of April 1, 2018. In accordance with the cumulative catch-up transition
method, the comparatives have not been retrospectively adjusted. The following is a summary
of new and/ or revised significant accounting policies related to revenue recognition. Refer Note
1 “Significant Accounting Policies,” in the Company’s 2018 Annual Report for the policies in
effect for revenue prior to April 1, 2018. The effect on adoption of Ind AS 115 was
insignificant.

IND AS 115 lays down five step model for revenue recognition which is as follows:

1 Identify contract with customer

2 Identify performance obligations

3 Determine transaction price

4 Allocate transaction price to different performance obligations

5 Revenue recognition

A. Engineering Segment

Revenue is recognized upon transfer of control of promised products or services to customers
in an amount that reflects the consideration we expect to receive in exchange for those
products or services.

• Sale of Goods or Services

In case of sale of goods performance obligation is satisfied when control is transferred to
customer and recoverability of amount is probable. Transaction price is same as invoice value
excluding taxes. Revenue is recognized as and when performance obligation is satisfied.

In case of sale of service performance obligation is satisfied when work is executed, customer
approves the work performed and recoverability of amount is probable. Transaction price is
same as invoice value excluding taxes. Revenue is recognized as and when performance
obligation is satisfied.

The company accounts for discounts and pricing incentives to customers as a reduction of
revenue based on the ratable allocation of the discounts/ incentives to each of the underlying
performance obligation that corresponds to the progress by the customer towards earning the
discount/ incentive. Such situation generally does not arise in company.

• Accounting of Turnkey Projects

Trunkey projects includes building of dam, canals, power house boards building dam gates
etc. in executing turnkey projects many revenue emerges like direct contacts price which is
mentioned, claims for arbitrations, or any other income related to projects.

In item rate contracts, the Company has applied the guidance in Ind AS 115, Revenue from
contract with customer, by applying the revenue recognition criteria for each distinct
performance obligation.

As company’s major revenue comes through tendering of projects. Generally different set of
performance obligations are already identified in tenders for which company has to quote
separate price for each performance obligations. So performance obligations are identified at
preliminary stage. Transaction price for each performance obligation is allocated in contract
itself.

Performance obligation is satisfied when project authority approves the work and issue
running bill on account of service or goods supplied by the company.

Revenue is recognized over a period of time using output method, Milestone Method. Milestone
is being approved by the project awarding authority by issuing running bill against work
executed by the company.

Variable considerations like escalation/claims/ arbitration or any incentives cannot be
identified at initial level. Though provision of variable consideration is always forms part of
contract with customer but as per past experience of company, variable consideration is very
fluctuating and depends on the current work execution by the company. Determination of
variable consideration is quite a complex task because it cannot be measured reliably and
variable consideration is not directly related to each performance obligation.

In such situation performance obligations is being satisfied when project authorities approved
the bill or paid the bills issued by company. After which revenue is recognized on the basis of
bills approved.

In case of some claims filed by company which is being approved by third party authority like
arbitrator/ courts, then such claims are accounted and revenue recognized only when order
from third party is in favor of company unconditionally and project authority doesn’t have any
further right to appeal in higher courts.

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

• Trade Receivables and Contract Balances

The company classifies the right to consideration in exchange for deliverables as either a
receivable or as unbilled revenue.

A receivable is a right to consideration that is unconditional upon passage of time. Revenue
for time and material contracts are recognized as related service are performed. Revenue for
fixed price maintenance contracts is recognized on a straight line basis over the period of the
contract. Revenues in excess of billings is recorded as unbilled revenue and is classified as a
financial asset for these cases as right to consideration is unconditional upon passage of time

Invoicing in excess of earnings is classified as unearned revenue.

Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.

B. Accounting of Realestate Transactions

(i) Revenue from real estate projects - The Company derives revenue, primarily from sale of
properties comprising of both commercial and residential units. Revenue from sale of
constructed properties is recognised at a ‘Point of Time’, when the Company satisfies the
performance obligations, which generally coincides with completion/ possession of the unit.
To estimate the transaction price in a contract, the Company adjusts the contracted amount
of consideration to the time value of money if the contract includes a significant financing
component.

(ii) The revenue on account of interest on delayed payment by customers and expenditure on
account of compensation / penalty for project delays are accounted for at the time of
acceptance / settlement with the customers due to uncertainties with regard to determination
of amount receivable / payable.

(iii) Amount received on booking is classified as contract liabilities and shown in balance sheet as
current or non-current as classification permits.

(iv) Eligible expenses incurred for building of real estate units/flats are capitalized and shown as
inventory as Work in progress stock.

C. Accounting for Joint Arrangements Contracts:-

(a) Under Ind AS 111, Joint arrangement, Investment in joint arrangements are classified as
either joint operations or joint ventures. The classification depends on the contractual rights
or obligations of each investor, rather than the legal structure of the joint arrangement.
Company has both joint operations and joint ventures.

(i) Joint Operations

Company recognize its direct right to the asset, liability, revenue and expenses of joint
operations and its share of any jointly held or incurred assets, liability, revenue and expenses
in standalone financial statements.

(ii) Joint Ventures

Joint ventures are accounted for using the equity method in consolidated financial
statements. Such investments after being recognized at cost in standalone financial
statements.

(b)

(i) In respect of contract executed in joint ventures under profit sharing arrangement
(Assessment as AOP/Firm under Income Tax Laws) , the services rendered to the Joint
Ventures are accounted as income on accrual basis. The profit/Loss is accounted for, as and
when it is determined by the Joint Venture and the net investment in the Joint venture is
reflected as investment, loans and advance or current liabilities.

(ii) Profit from those joint ventures which are Firms, are accounted directly in investment
accounts and respective investment get increased.

2.07 Other Income:

a) Dividend and Interest Income:-

Revenue is recognized when the shareholder’s right to receive payment is established
(provided that it is probable that the economic benefit will flow to the company and the
amount of income can be measured reliably). Dividend from subsidiaries is recognized even if
the same is declared after the balance sheet date but pertains to period on or before the date
of balance sheet as per the Companies Act., 2013.

Interest income from a financial asset is recognized when it is probable that the economic
benefits will flow to the Company and the amount of income can be measured reliably.
Interest income is accrued on, time basis, by reference to the principal outstanding and at the
effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset’s net carrying
amount on initial recognition.

A contract is, or contains, a lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company accounts for each lease component within the contract as a lease separately
from non-lease components of the contract and allocates the consideration in the contract to
each lease component on the basis of the relative stand-alone price of the lease component
and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset
for the lease term at the lease commencement date. The cost of the right-of-use asset
measured at inception shall comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before the commencement date less any
lease incentives received, plus any initial direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing the underlying asset or restoring the
underlying asset or site on which it is located. The right-of-use assets is subsequently
measured at cost less any accumulated depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease liability. The right-of-use assets is
depreciated using the straight-line method from the commencement date over the shorter of
lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets
are determined on the same basis as those of property, plant and equipment.

Right-of-use assets are tested for impairment whenever there is any indication that their
carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the
statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are
not paid at the commencement date of the lease. The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be
readily determined, the Company uses incremental borrowing rate. For leases with reasonably
similar characteristics, the Company, on a lease by lease basis, may adopt either the
incremental borrowing rate specific to the lease or the incremental borrowing rate for the
portfolio as a whole. The lease payments shall include fixed payments, variable lease
payments, residual value guarantees, exercise price of a purchase option where the Company
is reasonably certain to exercise that option and payments of penalties for terminating the
lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease
liability is subsequently remeasured by increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or lease modifications or to
reflect revised in-substance fixed lease payments. The company recognises the amount of the
re-measurement of lease liability due to modification as an adjustment to the right-of-use
asset and statement of profit and loss depending upon the nature of modification. Where the
carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in
the measurement of the lease liability, the Company recognises any remaining amount of the
re-measurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term
leases of all assets that have a lease term of 12 months or less and leases for which the
underlying asset is of low value. The lease payments associated with these leases are
recognized as an expense on a straight-line basis over the lease term.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating
lease or a finance lease. The Company recognises lease payments received under operating
leases as income on a straight-line basis over the lease term. In case of a finance lease,
finance income is recognised over the lease term based on a pattern reflecting a constant
periodic rate of return on the lessor’s net investment in the lease. When the Company is an
intermediate lessor it accounts for its interests in the head lease and the sub-lease separately.
It assesses the lease classification of a sub-lease with reference to the right-of-use asset
arising from the head lease, not with reference to the underlying asset. If a head lease is a
short term lease to which the Company applies the exemption described above, then it
classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies Ind AS 115
Revenue from contracts with customers to allocate the consideration in the contract.

The incremental borrowing rate applied to lease liabilities created after April 1,2022 is 11%.

2.09 Foreign Currency Transaction:

The Functional and reporting currency of the company is INR. Transactions other than
functional currency are treated as foreign currency transactions.

(i) Initial Recognition

Foreign currency transactions are recorded in the functional currency, by applying to the
foreign currency amount the exchange rate between the functional currency and the foreign
currency at the date of the transaction.

(ii) Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items
which are carried in terms of historical cost denominated in a foreign currency are reported
using the exchange rate at the date of the transaction.

(iii) Treatment of Exchange Differences

Exchange differences arising on settlement/restatement of short term foreign currency
monetary assets and liabilities of the Company are recognized as income or expense in the
Statement of Profit and Loss.

Exchange differences arising on long-term foreign currency monetary items related to
acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the
asset. Exchange differences arising on other long-term foreign currency monetary items are
accumulated in the “Foreign Currency Monetary Translation Account” and amortized over the
remaining life of the concerned monetary item.

(iv) Translation of Foreign operation

The results and financial position of a foreign operation (none of which has the currency of a
hyperinflationary economy) that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:

• Assets and liabilities for each balance sheet presented (i.e. including comparatives) are
translated at the closing rate at the date of that balance sheet;

• Income and expenses for each statement of profit and loss presented (i.e. including
comparatives) are translated at average exchange rates; and

• All resulting exchange differences have been recognised in other comprehensive income.

On disposal of a foreign operation, the associated exchange differences are re-classified to
profit or loss, as part of the gain or loss on disposal.

2.10 Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get
ready for their intended use, are added to the cost of those assets, until such time as the
assets are substantially ready for their intended use.

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

The Company determines the amount of borrowing costs eligible for capitalization as the
actual borrowing costs incurred on that borrowing during the period less any interest income
earned on temporary investment of specific borrowings pending their expenditure on
qualifying assets, to the extent that an entity borrows funds specifically for the purpose of
obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for
obtaining a qualifying asset, borrowing costs eligible for capitalization are determined by
applying a capitalization rate to the expenditures on that asset.

The Company suspends capitalization of borrowing costs during extended periods in which it
suspends active development of a qualifying asset.

Defined Contribution Plans

(a) Payment to defined contribution retirement benefit plans are recognized as an expense
when employees, as certified by board of directors have rendered service entitling them to the
contributions.

(b) Provident fund of the Company is a defined contribution scheme. The Company has no

obligation, other than the contribution payable to the provident fund. The Company

recognizes contribution payable to the provident fund scheme as expenditure, when an

employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already
paid.

(c) Pension Fund of the Company is a defined contribution scheme. The Company has no

obligation, other than the contribution payable to the provident fund. The Company

recognizes contribution payable to the provident fund scheme as expenditure, when an

employee renders the related service. If the contribution payable to the scheme for service
received before the balance sheet date exceeds the contribution already paid, the deficit
payable to the scheme is recognized as a liability after deducting the contribution already
paid.

Defined Benefit Obligation Plans

For defined benefit obligation plants, the cost of providing benefits is determined using the
projected unit credit method, with actuarial valuations being carried out at the end of each
annual reporting period. Remeasurement, comprising actuarial gains and losses, the effects of
changes to the assets, ceiling(if applicable) and the return on plan assets (excluding interest
)is reflected immediately in the statement of financial position with a charge or credit
recognised in other comprehensive income in the year in which they occur. Remeasurement
recognised in OCI is reflected immediately in retained earnings will not be classified to profit &
loss. Net interest is calculated by applying the discount rate to the net defined liability/asset.
Defined benefit costs are categorized as follows:

1. ) Service costs (including current service cost, past service cost as well as gains and losses
on curtailment and settlements).

2. ) Net interest expense or income

3. ) Remeasurement

(d) Gratuity liability is a defined benefit obligation of the company. The Company provides for
gratuity to employees as calculated by actuarial valuer. The benefit is in the form of Lump
sum payments to vested employees on resignation, retirement, on death while in employment
or on termination of employment of and amount equivalent to 15 days basic salary payable to
each completed year of services. Vesting occurs upon completion of 5 years of services. The
company has not made annual contributions to funds administered by trustees or managed
by insurance companies.

(e) Accumulated leave, which is expected to be utilized within the next 12 months, is treated
as short-term employee benefit. The Company measures the expected cost of such absences
as the additional amount that it expects to pay as a result of the unused entitlement that has
accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months,
as long-term employee benefit for measurement purposes. Such long-term compensated
absences are provided for based on the actuarial valuation using the projected unit credit
method at the year-end. The Company presents the entire leave as a non-current liability in
the balance sheet.

The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows by reference to market yields at the end of the reporting period on
government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in employee
benefits expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognized in the period in which they occur, directly in other
comprehensive income and such re-measurement gain / (loss) are not reclassified to the
statement of profit and loss in the subsequent periods. They are included in retained earnings
in the statement of changes in equity.

2.12 Taxation:

Tax expense comprises of current tax, deferred tax and Dividend Tax which are described as
follows -:

(a) Current Tax

Current tax is measured after providing deductions under chapter VI A of Income Tax Act,
1961 and making adjustments of ICDS prescribed under Income Tax Act, 1961 at the amount
expected to be paid to the tax authorities, using the applicable tax rates. Current tax is
calculated using tax rates that have been enacted or substantively enacted by the end of
reporting period. Current Tax is generally charged to profit & loss except when they relate to
items which are recognized in other comprehensive income or equity.

(b) Deferred Tax

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that
would follow from the manner in which the Company expects, at the end of the reporting
period, to recover or settle the carrying amount of its assets and liabilities.

Deferred Tax is generally charged to profit & loss except when they relate to items which are
recognized in other comprehensive income or equity.

Deferred tax asset and deferred tax liabilities are off-set if a legally enforceable right exist to
set-off current tax asset against current tax liabilities and the deferred taxes relates to the
same taxable entity and the same taxation authority.

2.13 Property, Plant and Equipment:

(a) Property, Plant and Equipment is recognized when it is probable that future economic
benefits associated with the items will flow to the company and the cost of the item can be
measured reliably.

The cost of Property Plant & Equipment comprises its purchase price net of any trade
discounts and rebates, any import duty and other taxes any directly attributable expenditure
on making the asset ready for its intended use including relevant borrowing cost for qualifying
asset. Expenditure incurred after Property Plant & Equipment have been put into operation
such as repair & maintenance are charged to the statement of Profit & Loss in the year in
which the costs are incurred, Major shutdown and overhaul expenditure are capitalized as the
activities undertaken improves the economic benefit expected to arise from the assets.

Assets in the course of construction are capitalized in the assets under construction account.
At the point when the asset is operating at management’s intended use, the cost of
construction is transferred to the appropriate category of the Property, Plant and Equipment
and depreciation commences. Cost associated with the commissioning of the asset and any
obligatory decommissioning costs are capitalized where the asset is available for use but
incapable of operating at normal levels until a year of commissioning has been completed.
Revenue generated from production during the trial period capitalized.

Capital subsidy received against specific assets is reduced from the value of relevant
Property, Plant and Equipment.

(b) Free hold land is carried at historical cost.

(c) Leasehold land is not amortized as all leasehold land is on 99 years lease with local
authority and such leasehold land is outside the scope of Ind AS-16.

Items of stores and spares that meet the definition of property, plant and equipment are
capitalized at cost. Otherwise, such items are classified as inventories.

An item of Property, Plant and Equipment is derecognized upon disposal or when no future
economic benefits are expected to arise from the continued use of asset. Any gain or loss
arising on the disposal or retirement of an item of Property, Plant and Equipment is
determined as the difference between the sales proceeds and the carrying amount of the asset
and is recognized in statement of profit & loss.

Depreciation and Estimates

Depreciable amount for assets is the cost of an asset, or other amount substituted for costs,
less its estimated residual value. Depreciation is recognized so as to write off the cost of
asset(other than free hold land and lease hold land having 99 years of lease and properties
under construction) less their residual values(after considering the restoration cost) over their
useful lives using Written down value method as prescribed in schedule II of companies act,
2013.

2.14 Intangible Assets:

Intangible assets (which comprises of software acquired (useful life 3-5 years)) and
depreciation /amortization on WDV method as per Companies Act 2013 and impairment
losses if any.

Amortization is recognized on a written down value basis over their estimated useful lives. The
estimated useful life and amortization method are reviewed at the end of each reporting
period, with the effect of any changes in estimate being accounted for on a prospective basis.
Intangible assets with indefinite useful lives that are acquired separately are carried at cost
less accumulated impairment losses.

2.15 Capital Work in Progress:

Capital work in progress are stated at cost and inclusive of preoperative expenses, project
development expenses etc.

2.16 Impairment of Property, Plant & Equipments and Intangible Assets:

At the end of each reporting year, the company reviews the carrying amount of its tangible
and intangible assets to determine whether there is any indication that those assets are
suffered an impairment loss. If any such indication exists the recoverable amount of the asset
is estimated in order to determine the extent of impairment loss (if any). Where it is not
possible to estimate the recoverable amount of the individual asset, the company estimates
the recoverable amount of the cash-generating unit to which the asset belongs. Where a
reasonable and consistent basis of allocation can be identified, corporate assets are also
allocated to individual cash-generating unit or otherwise they are allocated to the smallest
group of cash-generating unit for which a reasonable and consistent allocation basis can be
identified.

Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing
value in use the estimated future cash flow are discounted to their present value using pretax
discount rate that reflects current market assessment if the time value of money and the risk
specific to the asset for which the estimates of future cash flows have not been adjusted.

An impairment loss is recognized in the Statement of Profit and Loss whenever the carrying
amount of an asset or a cash-generating unit exceeds its recoverable amount. A previously
recognized impairment loss is increased or reversed depending on changes in circumstances.

However the carrying value after reversal is not increased beyond the carrying value that
would have prevailed by charging usual depreciation if there was no impairment.

Costs of inventories are determined on FIFO basis. Net realizable value is estimated selling
price in the ordinary course ofbusiness.

Goods in transit are stated at actual cost and freight if any.

2.18 Investment in Subsidiaries and Joint Venture:

Investment in subsidiaries is carried at deemed cost in the separate financial statements.

Investment in joint ventures and associates are valued at cost after adjusting impairment.

---

Mar 31, 2024

2 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:

2.01 Statement of Compliance:

Standalone Financial Statements have been prepared inaccordance with the accounting principles generally acceptedin India including Indian Accounting Standards (Ind AS)prescribed under the section 133 of the Companies Act,2013 read with rule 3 of the Companies (Indian AccountingStandards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules,

The aforesaid financialstatements have been approved by the Board of Directors inthe meeting held on 23rd May,2024.

2.02 Basis of Preparation and Presentation:

The Standalone Financial Statements have been prepared on the historical cost basis except for certain financial instruments measured at fair values at the end of eachreporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an assetor paid for transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for sharebased payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fairvalue but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36.

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

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

Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

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

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

As the year-end figures are taken from the source and rounded to the nearest digits, the figures reported for the previous quarters might not always add up to the year figures reported in the

2.03 Use of Estimates & Judgements:

(a.) The preparation of the financial statements in conformity with Ind AS requires the Management to make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. The application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements have been disclosed. Accounting estimates could change from period to period.

Actual results could differ from those estimates. Appropriate changes in estimates are made as the 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.

(b.) Estimation of uncertainities relating to the global health pandemic from COVID-19.

The Company has considered the possible effects that may result from the pandemic relating to COVID-19 on the carrying amounts of receivables, unbilled revenues and investment in subsidiaries. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of this pandemic, the Company, as at the date of approval of these financial statements has used internal and external sources of information including credit reports and related information, economic forecasts. The Company has performed sensitivity analysis on the assumptions used and based on current estimates expects the carrying amount of these assets will be recovered. The impact of COVID-19 on the Company''s financial statements may differ from that estimated as at the date of approval of these financial statements.

2.04 Basis of classifications of current and non-current:

All the assets and liabilities have been classified as current or non-current in the balance sheet.

An asset has been classified as current if (a) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is expected to be realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets have been classified as non-current.

A liability has been classified as current when (a) it is expected to be settled in the Company''s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is due to be settled within twelve months after the reporting date; or (d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. All other liabilities have been classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.05 Recent Accounting Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

2.06 Revenue Recognition:

Company mainly derives business from executing turnkey projects and sale of goods and services. Company is also in the business of real estate sector, manufacturing of plastic caps and hotel business activities.

Effective April 1, 2018, the Company adopted Ind AS 115 "Revenue from Contracts with Customers" using the cumulative catch-up transition method, applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch-up transition method, the comparatives have not been retrospectively adjusted. The following is a summary of new and/or revised significant accounting policies related to revenue recognition. Refer Note 1 "Significant Accounting Policies," in the Company''s 2018 Annual Report for the policies in effect for revenue prior to April 1, 2018. The effect on adoption of Ind AS 115 was insignificant.

IND AS 115 lays down five step model for revenue recognition which is as follows:

1 Identify contract with customer

2 Identify performance obligations

3 Determine transaction price

4 Allocate transaction price to different performance obligations

5 Revenue recognition

A. Engineering Segment

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.

• Sale of Goods or Services

In case of sale of goods performance obligation is satisfied when control is transferred to customer and recoverability of amount is probable. Transaction price is same as invoice value excluding taxes. Revenue is recognized as and when performance obligation is satisfied.

In case of sale of service performance obligation is satisfied when work is executed, customer approves the work performed and recoverability of amount is probable. Transaction price is same as invoice value excluding taxes. Revenue is recognized as and when performance obligation is satisfied.

The company accounts for discounts and pricing incentives to customers as a reduction of revenue based on the ratable allocation of the discounts/ incentives to each of the underlying performance obligation that corresponds to the progress by the customer towards earning the discount/ incentive. Such situation generally does not arise in company.

• Accounting of turnkey projects

Trunkey projects includes building of dam, canals, power house boards building dam gates etc. in executing turnkey projects many revenue emerges like direct contacts price which is mentioned, claims for arbitrations, or any other income related to projects.

In item rate contracts, the Company has applied the guidance in Ind AS 115, Revenue from contract with customer, by applying the revenue recognition criteria for each distinct performance obligation.

As company''s major revenue comes through tendering of projects. Generally different set of performance obligations are already identified in tenders for which company has to quote separate price for each performance obligations. So performance obligations are identified at preliminary stage. Transaction price for each performance obligation is allocated in contract itself.

Performance obligation is satisfied when project authority approves the work and issue running bill on account of service or goods supplied by the company.

Revenue is recognized over a period of time using output method, Milestone Method. Milestone is being approved by the project awarding authority by issuing running bill against work executed by the company.

Variable considerations like escalation/claims/ arbitration or any incentives cannot be identified at initial level. Though provision of variable consideration is always forms part of contract with customer but as per past experience of company, variable consideration is very fluctuating and depends on the current work execution by the company. Determination of variable consideration is quite a complex task because it cannot be measured reliably and variable consideration is not directly related to each performance obligation.

In such situation performance obligations is being satisfied when project authorities approved the bill or paid the bills issued by company. After which revenue is recognized on the basis of bills approved.

In case of some claims filed by company which is being approved by third party authority like arbitrator/ courts, then such claims are accounted and revenue recognized only when order from third party is in favor of company unconditionally and project authority doesn''t have any further right to appeal in higher courts.

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

• Trade receivables and Contract Balances

The company classifies the right to consideration in exchange for deliverables as either a receivable or as unbilled revenue.

A receivable is a right to consideration that is unconditional upon passage of time. Revenue for time and material contracts are recognized as related service are performed. Revenue for fixed price maintenance contracts is recognized on a straight line basis over the period of the contract. Revenues in excess of billings is recorded as unbilled revenue and is classified as a financial asset for these cases as right to consideration is unconditional upon passage of time .

Invoicing in excess of earnings is classified as unearned revenue.

Trade receivable and unbilled revenues are presented net of impairment in the Balance Sheet.

B. Accounting of Realestate Transactions

(i.) Revenue from real estate projects - The Company derives revenue, primarily from sale of properties comprising of both commercial and residential units. Revenue from sale of constructed properties is recognised at a ''Point of Time'', when the Company satisfies the performance obligations, which generally coincides with completion/ possession of the unit. To estimate the transaction price in a contract, the Company adjusts the contracted amount of consideration to the time value of money if the contract includes a significant financing component.

(ii.) The revenue on account of interest on delayed payment by customers and expenditure on account of compensation / penalty for project delays are accounted for at the time of acceptance / settlement with the customers due to uncertainties with regard to determination of amount receivable / payable.

(iii.) Amount received on booking is classified as contract liabilities and shown in balance sheet as current or non-current as classification permits.

(iv.) Eligible expenses incurred for building of real estate units/flats are capitalized and shown as inventory as Work in progress stock.

C. Packaging Segment

In case of sale of goods performance obligation is satisfied when control is transferred to customer and recoverability of amount is probable. Transaction price is same as invoice value excluding taxes. Revenue is recognized as and when performance obligation is satisfied.

In case of sale of service performance obligation is satisfied when work is executed, customer approves the work performed and recoverability of amount is probable. Transaction price is same as invoice value excluding taxes. Revenue is recognized as and when performance obligation is satisfied.

The company accounts for discounts and pricing incentives to customers as a reduction of revenue based on the ratable allocation of the discounts/ incentives to each of the underlying performance obligation that corresponds to the progress by the customer towards earning the discount/ incentive. Such situations generally does not arise in company.

The Company presents revenues net of indirect taxes in its statement of Profit and loss.

D. Accounting for Joint Arrangements Contracts:-

(a.) Under Ind AS 111, Joint arrangement, Investment in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights or obligations of each investor, rather than the legal structure of the joint arrangement. Company has both joint operations and joint ventures.

(i.) Joint Operations

Company recognize its direct right to the asset, liability, revenue and expenses of joint operations and its share of any jointly held or incurred assets, liability, revenue and expenses in standalone financial statements.

(ii.) Joint Ventures

Joint ventures are accounted for using the equity method in consolidated financial statements. Such investments after being recognized at cost in standalone financial statements.

(b.)

(i.) In respect of contract executed in joint ventures under profit sharing arrangement (Assessment as AOP/Firm under Income Tax Laws) , the services rendered to the Joint Ventures are accounted as income on accrual basis. The profit/Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint venture is reflected as investment, loans and advance or current liabilities.

(ii.) Profit from those joint ventures which are Firms, are accounted directly in investment accounts and respective investment get increased.

2.07 Other Income:

a) Dividend and Interest Income:-

Revenue is recognized when the shareholder''s right to receive payment is established (provided that it is probable that the economic benefit will flow to the company and the amount of income can be measured reliably). Dividend from subsidiaries is recognized even if the same is declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the Companies Act., 2013.

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

2.08 Leases:

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company accounts for each lease component within the contract as a lease separately from nonlease components of the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment.

Right-of-use assets are tested for impairment whenever there is any indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the statement of profit and loss.

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is reasonably certain to exercise that option and payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease. The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognises any remaining amount of the remeasurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The Company recognises lease payments received under operating leases as income on a straight-line basis over the lease term. In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate of return on the lessor''s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies Ind AS 115 Revenue from contracts with customers to allocate the consideration in the contract.

The incremental borrowing rate applied to lease liabilities created after April 1, 2022 is 11%.

2.09 Foreign Currency Transaction:

The Functional and reporting currency of the company is INR. Transactions other than functional currency are treated as foreign currency transactions.

(i.) Initial Recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.

(ii.) Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(iii.) Treatment of Exchange Differences

Exchange differences arising on settlement/restatement of short term foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss.

Exchange differences arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Translation Account" and amortized over the remaining life of the concerned monetary item.

(iv.) Translation of Foreign operation

The results and financial position of a foreign operation (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• Assets and liabilities for each balance sheet presented (i.e. including comparatives) are translated at the closing rate at the date of that balance sheet;

• Income and expenses for each statement of profit and loss presented (i.e. including comparatives) are translated at average exchange rates; and

• All resulting exchange differences have been recognised in other comprehensive income.

On disposal of a foreign operation, the associated exchange differences are re-classified to profit or loss, as part of the gain or loss on disposal.

2.10 Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use.

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

The Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalization are determined by applying a capitalization rate to the expenditures on that asset.

The Company suspends capitalization of borrowing costs during extended periods in which it suspends active development of a qualifying asset.

Defined Contribution Plans

(a.) Payment to defined contribution retirement benefit plans are recognized as an expense when employees, as certified by board of directors have rendered service entitling them to the contributions.

(b.) Provident fund of the Company is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.

(c.) Pension Fund of the Company is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.

Defined Benefit Obligation Plans

For defined benefit obligation plants, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effects of changes to the assets, ceiling(if applicable) and the return on plan assets (excluding interest )is reflected immediately in the statement of financial position with a charge or credit recognised in other comprehensive income in the year in which they occur. Remeasurement recognised in OCI is reflected immediately in retained earnings will not be classified to profit & loss. Net interest is calculated by applying the discount rate to the net defined liability/asset. Defined benefit costs are categorized as follows:

1. ) Service costs (including current service cost, past service cost as well as gains and losses on curtailment and settlements).

2. ) Net interest expense or income

3. ) Remeasurement

(d.) Gratuity liability is a defined benefit obligation of the company. The Company provides for gratuity to employees as calculated by actuarial valuer. The benefit is in the form of Lump sum payments to vested employees on resignation, retirement, on death while in employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of services. Vesting occurs upon completion of 5 years of services. The company has not made annual contributions to funds administered by trustees or managed by insurance companies.

(e.) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. The Company presents the entire leave as a non-current liability in the balance sheet.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefits expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income and such re-measurement gain / (loss) are not reclassified to the statement of profit and loss in the subsequent periods. They are included in retained earnings in the statement of changes in equity.

2.12 Taxation:

Tax expense comprises of current tax, deferred tax and Dividend Tax which are described as follows -:

(a.) Current Tax

Current tax is measured after providing deductions under chapter VI A of Income Tax Act, 1961 and making adjustments of ICDS prescribed under Income Tax Act, 1961 at the amount expected to be paid to the tax authorities, using the applicable tax rates. Current tax is calculated using tax rates that have been enacted or substantively enacted by the end of reporting period. Current Tax is generally charged to profit & loss except when they relate to items which are recognized in other comprehensive income or equity.

(b.) Deferred Tax

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred Tax is generally charged to profit & loss except when they relate to items which are recognized in other comprehensive income or equity.

Deferred tax asset and deferred tax liabilities are off-set if a legally enforceable right exist to set-off current tax asset against current tax liabilities and the deferred taxes relates to the same taxable entity and the same taxation authority.

2.13 Property, Plant and Equipment:

(a.) PROPERTY, PLANT & EQUIPMENT is recognized when it is probable that future economic benefits associated with the items will flow to the company and the cost of the item can be measured reliably.

The cost of Property Plant & Equipment comprises its purchase price net of any trade discounts and rebates, any import duty and other taxes any directly attributable expenditure on making the asset ready for its intended use including relevant borrowing cost for qualifying asset. Expenditure incurred after Property Plant & Equipment have been put into operation such as repair & maintenance are charged to the statement of Profit & Loss in the year in which the costs are incurred, Major shutdown and overhaul expenditure are capitalized as the activities undertaken improves the economic benefit expected to arise from the assets.

Assets in the course of construction are capitalized in the assets under construction account. At the point when the asset is operating at management''s intended use, the cost of construction is transferred to the appropriate category of the PROPERTY, PLANT & EQUIPMENT and depreciation commences. Cost associated with the commissioning of the asset and any obligatory decommissioning costs are capitalized where the asset is available for use but incapable of operating at normal levels until a year of commissioning has been completed. Revenue generated from production during the trial period capitalized.

Capital subsidy received against specific assets is reduced from the value of relevant PROPERTY, PLANT & EQUIPMENT.

(b.) Free hold land is carried at historical cost.

(c.) Leasehold land is not amortized as all leasehold land is on 99 years lease with local authority and such leasehold land is outside the scope of Ind AS-16.

Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost. Otherwise, such items are classified as inventories.

An item of PROPERTY, PLANT & EQUIPMENT is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of PROPERTY, PLANT & EQUIPMENT is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in statement of profit & loss.

Depreciation and Estimates

Depreciable amount for assets is the cost of an asset, or other amount substituted for costs, less its estimated residual value. Depreciation is recognized so as to write off the cost of asset(other than free hold land and lease hold land having 99 years of lease and properties under construction) less their residual values(after considering the restoration cost) over their useful lives using Written down value method as prescribed in schedule II of companies act, 2013.

2.14 Intangible Assets:

Intangible assets (which comprises of software acquired (useful life 3-5 years)) and depreciation /amortization on WDV method as per Companies Act 2013 and impairment losses if any.

Amortization is recognized on a written down value basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated impairment losses.

2.15 Capital Work in Progress:

Capital work in progress are stated at cost and inclusive of preoperative expenses, project development expenses etc.

2.16 Impairment of Property, Plant & Equipments and Intangible Assets:

At the end of each reporting year, the company reviews the carrying amount of its tangible and intangible assets to determine whether there is any indication that those assets are suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of impairment loss (if any). Where it is not possible to estimate the recoverable amount of the individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating unit or otherwise they are allocated to the smallest group of cash-generating unit for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use the estimated future cash flow are discounted to their present value using pretax discount rate that reflects current market assessment if the time value of money and the risk specific to the asset for which the estimates of future cash flows have not been adjusted.

An impairment loss is recognized in the Statement of Profit and Loss whenever the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount. A previously recognized impairment loss is increased or reversed depending on changes in circumstances.

However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

Costs of inventories are determined on FIFO basis. Net realizable value is estimated selling price in the ordinary course ofbusiness.

Goods in transit are stated at actual cost and freight if any.

2.18 Investment in Subsidiaries and Joint Venture:

Investment in subsidiaries is carried at deemed cost in the separate financial statements.

Investment in joint ventures and associates are valued at cost after adjusting impairment.

---

Mar 31, 2023

1 Company Overview:

Om rnfm limitert (Formerly known j; Om Metal-5 Infrapnojecl? LimitedI(Company}^ in the field of turnkey eaecutlon - from des-ig-n. creta-l engineering, nsanufacture, supply, installation, testmg and comniissiomng oi complete tange of Hydro mechanical equipment of hydroelectric power and Irrigation projects with Us manufacturing facilities located at Kota Rajasthan and project sites.

Om Infra Lim-tuo is a Public Limited company registered under Companies Act. IS5P, listed in Bombay Stock Exchange and National Stock Exchange. The registered office of company is situated at 2nd FLOOR, A-BIOCK, OM TOWER CHURCH ROAO, Ml ROAD JAIPUR Jaipur RJ

J STATEMENT OF SiGNIFICflMT ACCOUNTING POLICIES:

2.01 State merit of Compliance:

Standalone Financ''d I Statements have been prepaied maccordance with the accounting pr.nciples generally accept edln India including Indian Accounting standards (hu AS)preset shed under I hr: section 133 of the Companies Act,20I3 read with rule 3 of the Companies (Indian AcCOurtingStandards) Rules, 2015 and the Companies (Accounting Standards] Amendment Rules, 2016

The aforesaid hnanciabatements have been approved by the board of Directors mthe meeting held on 27th Aprl 1,202?.

2.02 Basis of Preparation and Presentation:

The Standalone Finance Statements have been prepared on the historical- tost basis except for certain financial instfuments measured at fair values at the end of eechreportmg period, as explained in the accounting policies below.

Hrstprical cost is generally based On the fair value Of (he consideration given in exchange for goods and services Fair value is the price that would be received t-o sell an assetorpaid for transfer a liability in an orderly transaction between maiket participants at the measurement date, regardless af whether that price -s directly observable or estimated using anothei valuation technique. In eshmating the fan'' value of an asset or a liability, the Company takes in to account the ehadtcKflstlcs of the asset ui liability if market participants would take !hor.p rharacterist-cs into account when pricing the asset or liability at the measurement date, fair value tor measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for sharebased payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of ind A5 17, and measurements that have some similarities to fairvalue but are not fair value, such as net realisable value in Ind AS 2 Of value In die m tnd AS 3n.

in addition, for finanrial reporting purposes, fair value- measurements ere categor-ted into level 1,2, pr 3 hased on the degree to which the inputs to the fair u&lue measurements are observable and the significance of tne i n puts La the fai r va lue mea sure mertls i n Ilfs en tirety, wh ic n a ra descri bed as fo li ow s ¦

Level 1 input are quoted prices (una-djustedl m active markets for ident cal assets or liab-lities that the entity can access at the measurement date;

Level 1 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly Or indirectry; and

Level 2 inputs are unndhervHble inputs for Lhs asset or liatu-ity.

Anrn-Lintir.R policies hsuf been ronsisiently applied except where a [Spuyty .siued accounting standard is initially adopted or 3 revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

As the year--§nd figures are taken from the source arid rounded to the nearest digits, the figures reported for the previous quartets might not always add up to the year Tigures reported Ip 1 lie statement.

2.03 Use of Estimates & Judgements:

|a.) The preprii alien of ttie financial statements in conformity with Ind AS requires the Management to make est''mates, judgments ana assumptions. These estimates. judgments and assumptions aftert the application of accounting policies and the reported amounts ot assets and liabilities, the disclosures of contingent assets and I labilities at the date of the financier statements and reported amounts of revenues and expenses during the period the application of accounting polities that require critical accounting estimates involving complex arid subjective judgments and the use of assumptions in these financiat statements have been disclosed. Accounting estimates could change from period to period.

Actual results cpljjd differ from those estrmaleb. Appropriate changes In estimates are made as lhe Management becomes aware of changes in. cirri:instances surrounding (he estimates. Changes in estimates are rejectee in the financial statements in the period in which ch-ang.es are made and, d material their effects are disclosed in the notes to the Financial statements.

(b-] Estimation of uncertainties relating tq the g^bal health pandemic from COVID-19.

The Company has conslllumd tho pPSiibiu tdFuets Him may ujiult from Tils; paildtrrtk rdul.ng to COVID 1H an (he carrying amounts of receivables, unbilled revenues and Investment in subsidiaries. In developing the assumptions relating tr? the possihle future uncertainties in the ginhal pcnnomir rcinriihnns berause of This

pandemic, the Company, as at the date ot approval ot these financial statements has used internal and external scruices of In fen mat ion Including credit reports and related information, economic forecasts, she Company has performed sensitivity jivjlysis an the assumption* used and based cm current estimates expects the carrying amount of these assets will be recovered. The impart of COVID-19 on the Company''s financial statements may differ from that est''mated as at the date of approval of these financial statements

2.04 BqsjS

All the assets arid liabilities have been classified as current or non-current In Lhe balance sheet.

An asset has been classified as current if

consumption m_r the Company''s ri Or mill operating cycle; or IU j- it is held pri manly for the purpose of being traded, or (c( it is expected to in? realizFil within twelve months after the reporting date; ot jd) it is cash or rash equivalent unless it is restarted from being exchanged or used to settle 0 liability tor at least twelve months after the reporting date All other assets have teen c''assifiea as hdh current.

A liability has been classified as current whan (a) It Is expected to be settled in the Company''s normal operating cycle; or (b) it 15 held primarily For the purpose of being traded; or jc) H is due to be settled within twelve months after the reporting date; or (d) the Company does not have an uneemrations- right to defer settlement of the ''lability tor at Feast months after tne reporting date, Ad ether l abilities have been Classified as non current.

nefe rr?d tax assets and i ah il it :es are c lassif ied a s non -current a ssets a n d l a bi lifies

The Company has not early adopted any other standard or amendment that has beep issued bur is not yet effective;

fl| Oncruin Contracts- t Obis of fulfilling a Contract ¦ Amfrndrfiertti to hid AS 37

the amendmenti to Ind As 37 specify which casts art entity needs in include when assessing whether h contract is [jnprnjs or loss-making. The amendments apply a "directly related cost a fin roach". The costs that relate directly to a contract to provide goods or services ncSude both incremental costs for example direct labour and materials and an allocation of other costs directly related Ed contract activities for example an allocation of the depreciation Charge for an item of property, plant and equipment used In fulfilling that contract. General and administrative costs do not relate directly to a contract and are excluded unless they arc explicitly chargeable ct> the counterparty under the contract. The amendments are net expected to have a material -mpact on the Group

|Ji) P''jfc rente to the Conceptual Framework - Amendments to Ind AS 1U3

I he amendments replaced the reference to the iCA''A "framework for the Preparation and Presentation of P Manual Statements under Indian Accounting Standards" with the reference to the "Conceptual framework For F ,na nci a Report m g u ri U er I n d lan Arc Oun11 ng 3t a nd ard " wi < hout signi ftca n t ly Ch angi ng i is requirement s.

The amendment* also added an exception to tup recognition ptiheipfe ot md AS 103. Business Combinations to ovoid the Issue of potential ''day 2'' gains or losses arising ior h abilities and contingent 11 abilities that would be within the scope of md AS 37 Piovisicms, Contingent Liabilities and Contingent Assets or Appendix C, levies, of Ind AS 37, it incurred ipparately.

tt has also been clarified that the existing guidance in md AS 103 for contingent assets would not be affected by replacing the reference to the Framework for Lhe Preparation and Presentation of Financial Statements under Indvaii .Accounting Standards. 1 fie amendment* do not have a material Impact on the Group.

fill} Property, Plant and Equipment: Proceeds before Intended Use -Amendments to tod A3 IE

The amendment* modified paragraph 1 7(e} of Ind AS 1G to clarify that encess of net sate proceeds of items produced over the cost of testing, if any, shall not be recoRniyed in the profit or loss but deducted from the directly attributable costs considered as part of cost of an item of property, plant, and equipment. The amendment* do not have a material impact on the Group.

jiv] ind AS 101 First-time Adoption of Indian Accounting Standards-Subsidiary Os a first time adopter

the amendment permit* a Subsidiary that elects to apply I tie exemption m paragraph LTt.ja) of lod AS 101 to measure cumulative translation differences for ell foreign operation* in its financial statement* using flip amounts reported by the parent, based on the parent''s Cate of transition to Ind AS, if no adjustments were made for consolidation procedure* and for the effects or the business combination In which the patent acquired the subsidiary. This amendment Is also available to an associate

The amendments du not apply to the Group us it was first lime adopter in un earlier year.

(v) Ind A5 103 Financial instruments - Tees In the ''10 per cent'' test for derecognition of Fin an cl a I Ira bill ties

The am Ferment ; arifip* th-p Ipps that an pntity iirlurlpi when as seising whether the term* gF a new m modified financial liability are substantially different from the te- ms of the original financial liability. These fees include only those paid or received between the borrower and the Fender, including lees paid or rece-ved by either the borrower or lender on the other''s behalf. The amend merits do not have a material impact on the Group.

(vij Ind AS 41 Agriculture - Taxation in fair value measurements

lhe amendment removes the requirement In paragraph 21 of ind AS 41 that entitles exclude cash flows for taxation when measuring the fax vflue of assets with it i (he stops of it''d as 41 The amendment* do not have any Impact On the Group 5* it does not carry Out any agri: ullarsl activities.

Company mainly derives business from a Heading turnkey projects and saJt? of ggqds and services. Company is also in the business of real estate sector, manufacturing of plastic raps and hotel business activities.

Effective April I, 20L3. (lie Company adopted inti A3 115 "Revenue from Contracts wlEh Customers" using the cumulative ratch-up tianjltign method, applied to rgnTrarts that were opt completed as of Apnl L, 2.0 LS in accordance with the cumulative catch-up transition method, the comparatives have not been teTrospertively adjusted The following is a summary ot new and/or revised significant accounting policies related ta revenue recognition. Ftefe: Note 1 "Significant Accounting Policies/ in the Company''s 2013 Annual Report for the polities in effect for revenue piiar to April 1, 2013. Tho Crffe-Lt On adoption of Ind AS 115 was insignificant.

iND AS 115 lays down five step model for revenue recognition which is as follows:

1 I dftnli Fy eg n t r act with tustu flier

2 Identity performance obligations

3 Determine transaction price

a Allocate transaction price to different performance obiigat ons 5 Revenue recognition

A, Engineering Segment

Revenue is recognized upon transfer ot control of promised products or services to customers in an amount that reflect? the consider ahem wu c*uua to receipt In exchange for those products or services-.

* Safe of Grinds or Services

In case of safe of goods performance obligation is satisfied when control is transferred to customer and recoveribihi; of amount is probable transaction price is same as Invoice value excluding taxes. Revenue is recognized as and when p&rfurrrldnct! obligation is satisfied.

In case of sale of service performance obligation is satisfied when work is executed, customer approves the work performed and recoverability of amount is probab''e 1 ransactlon price is same as Invoice value excluding taxes. Revenue is recognised as and when performance obligation is satisfied.

Thh company account? for discounts and pricing Incentive? to custcrners ns a reduction oT revenue ba.HEd on the ratable allocation of the discounts/ incentives rr> each gf the underty-ng performance obligation that corresponds to the progress by th-e customer towards earning (h-e discount/ mcent-ve Such situation generally does not arise In company

• Auto unting of turnkey projects

Trnnkey prp|ect5 incJgdes tiuildmg of dam, canals, power house hoards hulldinp dam gates etc. in executing turnkey p reject s rr.a n y revenue e merges I i« e H irecl c ontaefs pri ce wh icn Is m e nt io n e n, c la i m s for a rbit rati ons, o r any other income related to projects

ip item rate ronfrarts, the Company baa applied the guidance in ind AS US, Revenue from contract with customer, by applying the revenue recognition criteria for each distinct performance obligation

As company''s major revenue comes through tendering of projects Generally different set of performance obligations are already Identified In tenders for which company has to quote separate price for each performance obligations. 5o performance'' obligations, iiie identified at preliminary stage. Transaction price fo, each performance obligation IS allocated in contract Itstlf.

Performance obligation is satisfied when project aothonty approves the work and issue running bill on account of service or goods supplied hy the company.

Revenue is recognized ove^r a period of time using output method. Milestone Method. Milestone is being approved by the project awarding aulhcnity by issuing running bill against work executed by the company

Variable considerations like escalation/claims/ arbitration or any incentives cannot be identified at initial level. Though provision of variable consideration is always forms part of Contract witii customer but as p«t past experience of company, variable consideration is very fluctuating and depends on the current work execution by ttie company Determination of variable consideration Is quite a complex task because it cannot Oe ffieasur u;J reliably *rtd variable consderduon is not directly related to each performance* QbllgetEpr,

In such situ at. on performance obligations is being satisfied when project author it es approved tqe b:l or paid the bills fss-jccI by company After _wheh revenue Is retog nite-d on the basis of bills approved.

m case of some claim: tiled bv company whicn is being approved by third party authority iike arbitrator/ courts, then such claims are accounted and revenue recognlted only when order from third party Is in favor of company unconditionally and project authority doesn''t 11Hive any further right to appeal in higher-worts,

Contract mcdtficatlaris, eiLher to (he curiLract scout¹ of contract price are accounted for when additions, riplptions nr changes are approved eiTher of tha parties. The arrountir,R for modifications of conTrarrs involves assessing whether the work added to an existing contract is distinct and whether the pricing is at the standalone soiling price. Work added that are not distinct are accounted for on a cumulative catch up basis, white those that are distinct arc accounted for prospectively, either as a separate contract, if Lhe additional services an? priced at The standalone selling prire, or as ft termination of the existing contract and creation of fi new contract if not priced at the standalone selling price.

* Trade receiva hies and Contract Bala pees

The company classifies the right to consideration in exchange fox deliverables as either a receivable or as

unbilled revenue.

A receivable is a right to tDnside''atjjon that is unconditional upon passage of time. Revenue for time and material contracts are recognized as related service are performed. Revenue for fixed price maintenance contracts lj retegnlied on a straight line basis over the period uf the- contract Revenues in excess of billings is recorded as unbilled revenue and is r^: a ss-ifte rf as a financial asset far Hi air? cases as right to consideration is unconditional upon passage of Time

In voicing in excess of earnings is classified as unearned revenue.

Trade receivable and unbilled revenues are presented net of Impairment In the Balance flfiud B- Accounting of fteafestate Transactions

(i.) Revenue from reaf estate projects - The Company derives revenue, primarily from sale of properties comprising of both commercial and residential units. Revenue from sale of constructed properties tirtrogntsed

at a Tgint pf Timth, when the Company satisfie*. the performance obligations., wblrh generally coincides with completion/ possession of the unit. To estimate the transaction price in a contract, The Company adjusts the contracted amount ot consideration to the time value of money if the contract includes ¹ significant financing component.

[ii-t Tim revenue on account rtf interest on delayed payment hy customers and expenditure on account of compensation / penalty for prciect delays ate accounted for at the time of acceptance / settlement with the rusi iiriH? rs d u i-: D lu i ce 11 r-tu 11 lus wl t h regard ¹ n d et e rt i luih tl on of an to u nt recervab le / payab In.

[iii.} Amount received on booking is classified as contract liabilities and shown in balance sheet as current or noncurrent as classification permits

fiv.) Eligible exoerses inturrea for huiid ng ot rea estate unrts/Hats ace capitalised and shown as inventory as Work in progress stock.

c Packaging Segment

In rase of Hie of goods performance obligation if satisfied when control if transferred to Customer and recovergbi Nty of amDuni is probahle Transact''on price is same as invoice value end tiding taxes, Revenue Is recognized as and when performance aLI.gab on is satisNea.

In case of sale of service performance obligation is satisfied wheft work is executed, customer approves the work performed and recoverability ot amount is probable Transaction price s same as invoice value excluding taxes, ftevenue is recognised as and when performance crbligal ion is satisfied.

Tfip company accounts for (focounts and pricing incentive to customers as a reduction of revenue based cm the ratable allocation of the discounts/ incentives to each of the underlying performance obligation that corresponds to the progress by the customer towards earning the Pisco unt/ incentive. Such situations generally does not prise in company.

The Conn pany p resent s revenues n ei of in d i reel t axes in i ts statement of Profit an d loss-D. Actounting for Joi nt Arrsrigentents Corstracis: ¦

(a.f Under Ind Al ] ] J. ;o^:nt arrangement, Investment rn joint arr-tngR merits are classified an either joint operations or joint ventures The classification depends on the contractual rights or obligations of each investor, ratner than the legal structure of the ioint arrangement. Company has both iomt operations and joint vent tires

(i.) Joint Opera lions

Company recognize its direct r.grit to the asset, fiaoility, revenue and expenses of iomt oporations and its share of any | ointly h eld o r incurred a s sets, l isbi I ity, revenue and expe n ses i n sia n da lone f meno a I statements,

jli.j Joint Ventures

Joint ventures are accounted for using the equity method in consolidated financial statements. Such investments after being recognized at cost in stand atone financial statements.

|l.| in respect of contract executed in Joint ventures under profit sharing arrangement ¦!Assessment as AOP/Firm under Income lax Laws) , the services rendered la the J aim Ventures are accounted as income On S«rual hafis The profit/La s''; is accounted far, as and when it is dprer mined hy the Joint Venture and the net I n vest me nt i n the Joi nt vent u re is ^retl ected as it i vestrr enl, loans and a dva nee o r cu rre ii t li at il it ies.

lii.j Profit from those joint ventures which are Firms, sre accounTerl [tirerrlv in investment arrounts and respective investment get increased.

2,07 Other Income:

a) Dividend and Interest Income:-

ffevenue is recognized when the shareholder''s light to receive payment is established (provided that n is probable that the economic benefit will flow to the company and the amount ot income can tie measured reliably), Dividend From Subsidiaries is rccc-goitelS even if the same is declared jftsi the balance sheet date bill pertain? fo period (jn or before the date rebalance sheet a? tier the Companies Act., 2d 13,

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rote applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net tarrying amount an initial recognition..

2,08 leases:

Aiuhirdit is, or contains, d {ease if the contuct corveyj tfit right to conti ol the um of an identified asset for a period of lime in exchange For oonoderat>nn.

Company as 3 lessee

TFte Company accounts for each Jease component within the contract as a lease separately from non lease components of The contract and allocates the consideration in (tie contract To each lease comoonght on the bas''s of the relative stand-alone price of the lease component arnt the aggregate stand-alone price of the nonlease components

The Company recognises ngtit-gf-use asset representing its right to use the underlying asset Fpr I he lease term at the lease commencement date, Toe cost of The right-of-use asset measured at Inception shall corn-prise of the amount of the nltiai measurement of the lease liability adjusted tor any lease payments marie at or before the commencement date less any lease incentives received, plus aay initial direct costs incurred and an astimate of costs to be meurred by Lite lessee in dlsman ding and i pffioving tb< underlyin:¦ asset or i usiurttSi the underlying asset or site on which ¦: is located. The ¦ ,RFi!-nf-use assets is su-bsanuer.tly measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasorement of the lease liability The right-of-use assets is dec related using the straight-line method from the commencement date oyer the shorter of lease term or L-sefu! life of right-of-use asset. The estimated useful lives of nght oF use iissets an* determined on tFie same biisis ns those of property, plant and equipment;

Ri r h t-ot-u se a ssets a re te sted for i mpa i rm e n t whenever t here is any ind ication t hat the ;r ca r ryi n g emo u n ts may not be recoveranle impairment less, riany, >3 recognised in the statement of protit and loss,

Ihe Company measures the lease I.ability at the present value of the lease payments that are not paid at the commencemertt date of tire tease. Tim lease payments ace discounted using the interest rate implicit in the {teases if That rate ran he readily determiner;. If that rate cannot be readily determined, The Company uses incremental borrowing rate. For leases with reasonably similar characteristics, the Company, or a lease by lease bas s, may adopt either the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole. ''lie lease payments shall include lired payments, variable lease payments, residual va I u e gua ran tees, exercise price of a purchase option where the Co m pa ny is rea sonah ly ce rial rr to exercise I hat Option and paymFnts Of p^nn tie-s for Terminating the lease, if the tease term reflects the lessee exercising an option to terminate the lease. Toe =ease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability; reducing the tarrying amount to reflect the lease payments m3de and remeasuring the carrying amount to reflect any reassessment or lease modifications or fo reflect revised nv substance fixed lease payments. The company recognises the amount of the re-measurement of lease liability due to modification 35 an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of modification Where the carrying amount ot the r:ght-of-tjse asset 15 reduced to zero and there 15 a further reduction m the measurement of the lejse (lability, the Company 1 ecogmses any remaining amount ol jthp re-measurement in s''a1 urn-unI of profit and loss.

The Company has elected not to apply the requirements ot rnd AS 115 Leases to short-term leases of all assets that have a lease term of 12 months or less and leases for which the underlying asset Is of low value ihe lease payments associated with these leases ape recognized as an expense on a straight line basis over the lease term

Company as a lessor

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. rim Company recognises lease payments received under operating leases as Income on straight-lino basis over the lease term In case of a finance lease, finance income s recognised over the lease term based gn a pattern reflecting a constant periodic rate of return cm the lessor''s net investment in the lease When the

Company is an interfilediste lessor it accounts far its interests in the head tease and the sub-lease separately, It assesses the lease classliitollon of a sub lease with reference to the right of-use asset arising From the head least, nut With reference to the unde dying asset. If 3 Head lease Is a short term lease to which the Company applies t-he exemption described Above, then it classifies the sub-lease as an poerating lease.

if an arrangement Contains lease and ncjn-Sease components, the Company applies Ind AS 115 Revenue frpm

contracts with customers to allocate the consideration in the contract

Ihe incremental borrowing rate applied to lease 1 lab. I it os created after April 1, 2022 Is 11%

2.09 Foreign Currency Transaction:

The Fund ion a! and reporting currency of the Company is INF. Transactions other than functional currency are treated as foreign currency Transactincis

(i,) Initial Recognition

Foreign currency i''ansaclruns are recorded in the Functional currency, by auplymg lo the foreign currency amount the ench^nae rate between the fun-ctlo-nsi currency and the foreign currency at the date of the transaction

(ii.J Conversion

Fuiaifir currency monetary Me mi are reported using the dosing r ei Ljj Ntm-motWtSry itemt which are carried in terms, of historical cost denominated in a foreign ctmenry are reported n-sirg tne exchange rate at the date of the transaction.

(iil.J Treatment of Exchange Differences

Exchange differ trices (rising On sutllemeril/ru statu muni of Short lurni ftsrtMgn currency monetary assets and liabilities of the Company are recognized as nnnme nr expense in the Statement of Profit and Loss.

Fxthange differences arising on I Dnfi-term foreign currency monetary items related ft) actors it¹ on of a fined asset ore capitalized and depreciated over the remaining useful life of the asset Exchange ditterentes arising on octiei long term foreign euirarity monetary items are aotumuSated In the "Foreign Currency Monetary Translation Account" and amortized ewer (he remaining iife of the concerned monetary item.

Jiu.J Translation of foreign operation

the results and finanoal position oF a foreign operation (none of which has toe currency of a hypermflatiOTiarv economy) that have a functional currency different from the presentation currency are translated into the

presentation currency ns fellows:

• Assets and liabilities for earh balance sheer presented fi.e. I pci u ding com para live si arp translated at the closing rate at the date of that balaocE sheet,

• income and expenses for each statement of profit and loss presented (i.e. including comparatives) are translated at average exchange rates; and

• All resulting exchange differences have bifen rm.o united in oilier cplnpnehersive income.

On d Isposa I o f a f orel gn opetati on, the assoc lated exchange d i ffe ren t e s a re re- cl assif I ed to p rofu or loss, as part of the gam or loss on disposal.

2.10 Borrowing Costs;

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period ot time to get ready tor them intended use, are added to the tost uf Mi use assets, unu I such ti me =s tl i# a ssetx a i a substant la I ly r ea by for their I rrt e n dud use -

All other borrowing costs are recognized In the Statement or Profit and Loss in the period in which they are Incurred.

The Company determines the amount of harrowing costs eiigihie fgr capitalization as the actual borrowing costs incurred on that uorrowng during the period less any interest income earned on temporary investment r?f specifit borrowings pending their expenditure on Qualify mg assets, to the extent that an entity borrows funds specifically for I he puipose of obtaining a qualifying asset. In ease If the Comp any borrows generally and uses the funris forobta ning a qua^:ifying asset, borrowing costs olig bte far rip.tainilion are determined by applying a capitalization rate to ttie expenditures on that asset.

The Company suspends capital:, tail on of borrowing costs during extended periods In which it suspends active development of a qualifying asset,

Defined Contribution Plans

(a.) Hayment to defined contribution retirement benefit plans are recognized as an expense when employees, si csrtBtd by boai :J of directors have rendered service entitling them to the contributions..

|b-} Prpvfrient fund of the Company is 5 defined contribution scheme. The Company has no oh-''iRation, other Than the contribution payable to the provident fund The Company recognises rorrtrlinjtion payable to the provident fund scheme as expenditure, when in employee renders the related service ll the contribution payable Is the scheme for service received before the balance sheet date exceeds the contribution already paid, ihe deficit payable to the scheme li r SC 0 gmz e ft as a liability after C4ductirt-g lhe COrtlribuliPn already p;iid

jc ( Pension fund of the Company is a defined contribution scheme. The Company has no obligat on, other than the contribution payable to the provident fond. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the rotated sen vice, if the run Lnbu Lion payable to the scheme for service received before the balance sheet date exceeds the coniribuiion already paid, the deficit payable to the scheme is recognized as * liability afier deducting the contribution already paid

Defined fionelit Obligation Plans

For defined benefit obligation pants, the tost of providing benefits is deter mined using the projected umL credit method, with actuarial valuations he mg carried put at the end of each annual reporting period-Remeasuremem. comprising actuarial gains anr losses, the ertects of changes to the assets, ceiVgfit applicable) and the rcluru on plan assets [excluding interest }ls reflected immediately In the statement of fin And si position with- A charge or credit recognised In ulhei COriWe he 11 blue income in Elbe year in which they OCCUi Re men sure merit lecop nixed in OfT is ref leered immediately "id retained eai Mini’s will not be c''asdfieri to profit & loss. -Met interest is calculates by applying the discount rate to the net defined liabil''ty/asset. Def.ned benefit costs are categorized as follows

1.) Service costs [including current service cost, past service costas well as gams and losses on curtailment and settlements).

2 } Met interest expense or income 3.) Remeasnrpment

(d.| Gratuity liability is a defined benefit obligation of the company. The Company provides for gistuity to employees as calculated by actuarial valuer. The benefit ts in the form of Lump sum payment to vested employees on resignation, retirement, on death while ''n employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of services. Vesting occurs upon completion of 5 year; of services. The company has not made annual cotitribuliuns to funds alimtnlstored by trustees Or managed by Insurance companies.

(u.) Accumulated leave, which Is expected to be utilized within the next 12 months, Is treated as short-term employee benefit, the Company measures the expected cost of such absences as thu rfddihtnia.1 amount that It expects to pay as a result of the unused entitlement that has Sccomulaleri at the reporting date.

The Conananv treats scrumulaten. leave expected TP he carried forward cFynnd twelve months, as IpnR-term employee benefit tor measurement purposes. Such long-term compensaten absences are provided tor based on the Actuarial valuation using the projected unit credit method at. the year-end. I fie Company presents the onLire leave as a non-cur rent liability in the balance shout.

The present value ot tne defined benefit obi''gab on is determined by discounting the estimated luture cash outflows by reference to market yields at the end of the reporting period ori government bonds that have Lemis approximating to the (ei ms uf (he related ubligril in.

The net Interest cost is calculated by ajxplying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefits expense in the statement ot profit and loss,

ftemeasureinent E^lns anti losses arlsrng from experience adjustments and changes In actuarial assumptions are recognized in the period in which they occur, directly in other Lonipiuherrsrve income and such remeasurement gain f (lass) ire not reclassified ta I he statement of profit and loss in the subsequent pa rinds. They are included in retained earning? in the statement of changes in equity

2.12 Taxation:

’ax expense composes pf cor renl; 1ax, deferred tax and Dividend Tax which are described es Foilpw?

|a.) Current Tax

Current tax is mrtusuied after providing deduction^ under chapter VI A of Income lax Act, 19hi and making adjustments of ICDS prescribed tinder Income Tax Act, 156] at the amount expected to be paid Ed the tax authorities, using the applicable tax rates. Current tax is calculated using tax rates that have been enacted or substantively enacted by the end ol reporting penod. Current lax rs generally charged to profit & loss except when they relate to Items yvliich are recognized n other compiehenjhr* income: or equity.

jb,] Deferred Tax

Deferred fox It reCOgmied on temp era ry differences between the carrying amounts Of assets and liabilities in the finqnrial statements nqd the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recogniz&d for all taxable temporary differences Deferred tax assets are generally recognized for all deductible temporary differences to the extent Lh3t it is probable that taxable profits will be available against which those deductible temporary differences can be utilized

The carrying amount of deferred tax assets Is reviewed at the end of each reporting period and reduced to the exte rvt th nt it is no l onger pioba ble that suf fici en t taxa ble pnofi ts will ue a va il a U le to ail ow a II or pa rt of the a sset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates chat are expected to apply in the period lr which the liability ts settled or the asset realized, based on tax tales Jamf tax laws) that have been enacted cu substantially enacted by The eririof the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end ot the reporting period, to recover or settle the canying amount of its assets and liabilities.

Deferred t₃x i_S generally charged to prcih! & loss except when they relate to Hems which are recognized in other comprehensive income or equity,

Deferred rax asset and deferred tax !iabilities are ptf-se; if a legally enforceable right exist to set-off rurrent tax asset against current tax liabilities and the deferred Eaves relates to the same taxable entity and the same taxation authority.

2.13 Property, Plant and Equipment:

(g.) PRDPFRTY, PLANT & FQU1PMENT is recognized when it is urpbabli? Ib-al future economic benefits a ssoci ated wtth t he items wi 11 flow to the com pany and the cost of t h = tern ra n be rnea SU red re :i ah ly,

ihe cost of Property Plant & Equipment comprises its purchase price net of any bade discounts and rebates, any import duty and Other tiixtfi any directly attributable expenditure on making tire distil red cry for its inrenrlpri ns? incluri up, relevant borrowing cost for riiualifying asset. Enprmriiture inrurrert after Property Plant Si Equipment have been put into operation such as repair Si maintenance-ace charged to the statement of Prof it Si Loss in the year m which the costs are Incurred, Major shutdown and overhaul expenditure are capitalized as the activities undertaken improves 1 he economic benefit expected co arise from the assets.

Assets .n the course of construction are capital-zed In the assets under construction account. At the point when the asset is operating at management''s intended use, the cost of construction is transferred to- the- appropriate category of the PROPERTY, PLANT Ji EQUIPMENT and depreciation commences. Cost associated with the commissioning of the asset and any obligatory decommissioning costs are capitali7ert where the asset is available for use but Incapable of operating el normal levels uni I a year iff coinmissiooing has been completed. Revenue generated from production during the Inal period capitalized

Capital subsidy received against specific assets is reduced from the value of relevant PROPERTY, PLANT a EQUIPMENT.

(b.) free hold Fflnrf is named at historical cast

(c.J Leasehold land IS ml a mg hup:: as ell leasehold ;ann Is on 91? years lease with Ideal authority and such leasehold land is outside the scope of Ind A5-16,

items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost. OthetVfrSfly snttt items are classified as inventories.

An Iferr- gt PHQPfFITY, PLANT ft EQUIPMENT is derecogniied upon disposal or when no future economic benefits are expected to arise from the continued use af asset- Any earn or loss arising on the disposal or retirement of an item of PkOPUli Trr, PLAN I ft CQuiPViENi .:s determined as the difference between the sates pr oceeds and the c a 11 yl ng j ittoun t of ft is a iset and i s ¦ etugm ted i p riWtemet m of prpflt & I oss

Depreciation and Estimates

Depreciable amount for assets is the cost ot an asset, or other amount substituted for costs, less its estimated res id uaf va lue, Depreci ation is recogni ced so as to write off the cost of asset! other tha n tree h ol rt land a rnf lea se hold land having 99 yea''s of tease and properties under^- construction! less theu residual va^!ues(afLer considering tire Tustoraucm cost| over thuiT useful liven using Written down value methpd as prescribed in Schedule 11 pf companies SCt, 2hl3.

2.14 intangible Assets.

Intanp.bie assets (which comprise* of snffwarp arnnirpd (useful life 3-3 yearsl) and deprpc’.atinn /amoi teat.on on WDV method as per Companies Act 2013 and impairment losses if any

Amortisation is reminded on a written down value bas-soupr H i-i: estimated uspFu iivps The estimated useful life and a mo it i7ati on rr.ethod are reviewed at the end of ear h reporting period., with the effect of any changes in estimate being accounted for on a prospective basis Intangible assets with Indefinite useful fives that are acquired separately ace earned at cost less accumulated impairment losses.

2.15 Capital Work .in Progress:

Capital work In nrPB''tSS are stated at cost and Inclusive pf pregpprative expenses, project development expenses etc.

2.16 Impairment of Property, Plant fi Equipments and intangible Assets:

At the end of each reporting year, the company reviews the carrying amount of its tangible and Intangible assets To netarmine whether them is any indication that those assets are suffered an impairment loss If any such indication exists the recoverable aniount of thE asset is estimated in order to determine the extent of impairment loss (If anyl Where it is not possible to estimate the recoverable amount of the individual asset, the company estimates the recoverable amount oF the cash generating unn to which the asset belongs. Where a easonaLle aim consistent basis cf allocation can be identified, corporate assets are also allocated la Inrflvirl ea I ca sh-Rene rati n g u nit a r a t h p rwlsp may are al Inc ated To the n m ah p st g roup nf paS-b-generat ing unit For which a reasonable and consistent allocation basis can. he identified

Recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value m use the estimaUjU future cash flow arc discounted to their present value using pretax discount rate I hat reflects current market assessment if the time value of money and the risX spFnfir to the asset for which the estimates rtf future cash flow; have not been adjusted

Aii i ii :p-i inrten.t Iasi iiocagru zed in (he Statemtwit of Frafit and Leas wh(newer I hi: Larryin^ ai nounti.bf an asset ora cgsh-£iSnerarin£ unit exceeds its recoverable? ampunt- A previously reroEoirer: impairment loss rsincreased or reversed depending on changes in circumstances.

However the carrying value after ''eversal .s not Increased beyond the tarrying value that would have prevailed by charging usual depreciation if there was no Impelsment

2,17 Invert tones:

inventories ere stated at the lower of castor net realizab''e ypSue, details as fdlowsi-

Raw Material,stores a spares, Components. MrtStmetidn material.	Cusl Includes tost of puiChase and Other Lusts incurred in bringing the inventories lu the present location and cunditmn
Process mocks arid finished grinds	Cost Tnf [his purpose includes direct material cost, labor cost plus appropriate share of manufacturing overheads allocated on absorpllpn cost bails,(eluding borrowing cost)
Work In prepress in case ot Real Estate Projects	Chit tor this purpose includes Lund. turrawing costs, direct material cost, la bar lost plus appropriate share of manufacturing overheads allocated on absorption cost hasis.(excluding borrowing cost)

Costs of inventories are determined on FIFO basis. Kef readable value is estimated sell ins price in rhe ordinary course eFbusiness-

Ga:;ds in transrt am stated si actual cost and freight if any.

2,13 investment in Subsidiaries and Joint Venture;

Investment in subsidiaries is carried at dee me (f tost in the sttps rate financial statements.

Investment in joint venlui es and associates are valued at lost after adjusting .mpairmunt.

2,19 Provisions, Contingent Liabilities & Assets;

A Provision is recognized when an enterprise has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settled the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to Its present value and art; determined based on bfjst management estimate taking into account the risks and uncertainties surrounding ihf? obligation rgqueed to settle tne ohiigabon at the naianre sheet dfte.

these are rev.eW^d at each ba''ante shealdate and adjusted tO reflect I he Current bent estimates.

A Luritinyurii ¹ ability is a possible obligation I fiat arises from past events and the existence of which will be confirmed nniy by The occurrence or nnn-nccurrpr.ce of one nr moFR uncertain future events not wholly within the control of the enterprise or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation

A contingent a:,Sift is a possible asset that arises from past events the existence of which will be canRrrmid Only by rhe occurrence qr non-occurrence of ore or more uncertain future events not wholly within the control of the enterprise

Con Urgent liabilities and assets ar( not recognise C but are disci nsed in the notes.

2,20 Financial Jnstrumefits:

Finance assets and (mancal liabilities are r¦icog.ulzced when the Company becomes a party to the contractual provision?, Of I ho 11-1 strum art tb. Randal aiSfili drift firiHiizidl liabilitiaS jrH I ril tidily measured at fair vdluv. Transaction costs that are directly attrihutahlp to the acquisition or issue of financial assets and financial liabilities lot nee than financial assets and financial liabilities at fair vame through profit or loss) are added to or deducted from the- fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Iran sect ion costs directly attributable to the acquisition of financial assets or financial I abilities at fan value through profit cn toss are recognized immudiaiely in profit or loss.

Financial Assets:

la.) Classification The Company classifies it*, financial asset*, in the following measurement caceRories-

¦ those to be measured subsequently at fair value (either through other comprehensive income, or through profit or toss), end those measured at amortised cost.

The classification Depends on the entity''s business monel for nmnagiqg the financial assets and the contractual terms of the t ash flow:

|b.) nitiaj ftecoerrllioji: Financial assets are recognised .nklafly aL fan value consider-ng the concept oi materiality. Ttaniactlo-rr costs that art directly attributable to the acquisition of the financial asset (other than financial assets at fail value, through profit Or loss) are added to the fair value measured on initial recognition of financial assets

(c.) Subsequent Measurement of financial Assets Financial assets are subsequently measured at amortized cost if they are held within a business whose objective is to hold these assets in order to collect contractual cash Tows and (he contractual terms of the financial asset give -rise- on specified dates to cash flows that are solfAy paymant:; of pcinespaI anrf intfvest on thh r:rincipa.l amount oufstandrng.

Finan d a I assets at fa i r vdl lie through other eu m pr e h a n s ivt* I nco m a | FVTOCI); Fin arte la I a s sets are su b bOputi n L ly measured at fair value through othei comprehensive income (FUTOGf, if it is held within a business model whoss objective s achieved by both mom collection ot contractual cash flows and selling the financial assets, where the assets'' cash flows represent solely payments of principal and mterest. Further equity instruments where the Company has made an irrevocable election based on its business model, to classify as instruments measured FVTOCI, are measured subsequently at fair value through ol her comprehensive income.

(d.) rrrtnairmenl df Financial Assets The Company assesses On a Forward looking bails the expected credit losses associated with its assets carried at amortized cost and FVTQCI deb1 insTruments. The impairment methodology applied depends on whether thene has beer, a significant increase in credit fist.

In accordance with

(a.) gecgcogi.it ion of f inane a I assets'' A financial asset is prinwily derecognised whan

- The rights to receive cesh flows from the asset have expired, or

The Company has transferred *ts rights to receive cash flows from the asset or has assumed an oblrgation to pay the received tash flews m full without material delay to a third party under a pass-through'' arrangement; anil Hither (af the Company has transferred substantially all the rtisks qnri rewards of The asset, or |b| rhe Company has neither transferred nor retained substent-ai''y ah the risks and rewards of the asset, but has transferred control of the asset

When the Cam pariy h-av. transferred its rights (o rEfteiue cash flows from an asset Or has entered into a passthrough, arrangement. it evaluates if and to what extent it has retained the 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, the Canrpcmy continues to recognise the transferred asset to the extent of the Company''s connruing involvement In that case, the Company a ( so recognises jn associated liability. The

transferred asset and the associate liability are measured on a basr; that reflects The rights arm obligations that the Company has retained

Financial liabilities:

ia.) Classification The Company classifies its ffhanrial I''nbirities in the folowing measurement categories''

Those to tie measured iubsapuently at fair value through profit or loss, and

Those measured at amortized cost using the effective interest method ''he classification depends on the

entity''s business mode) for managing the financial liabilities and the contractual [turns of tin¹ cash flows.

(b.J I nil id I FterQ&nition: Financial liabilities urti m l ogn izno at fair value on initial rucOgriil ion consider ngthc concept pf materiality. Transaction costs that are directly attributable to the issue of hnancia. liabilities that are not at fair value through profit or loss are ''educed from the fair value on initial recognition.

|c.| Subsequent Measurement ₀f Financial al;i itiet The measurement of financial liabilities depends on their class if lean on, as d e scnbed below:

Amortised cast: After in Mia I recognition, interest-tearing loans arm borrowings are subsequently measured at amortized cost using ihe Fffective interest rate (FIR) method, inains and losses are recognised in profit or toss when the liabilities are derecognised as well as through the FIR amortization process.

Amortised cost is culcuiated by taking into account any discount ot premium on acquisition and foes or costs that are an integral part of the EIR The FIR amortization is included as Finance costs in the statement of profit and loss

|d.] PcrecpEuit-op of fmanLiitl liabilities: A financial liability Is derecognised when Ibe obligation underttve liability

---

Mar 31, 2018

1.1 Statement of Compliance

Standalone Financial Statements have been prepared inaccordance with the accounting principles generally acceptedin India including Indian Accounting Standards (Ind AS)prescribed under the section 133 of the Companies Act,2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016. The aforesaid financialstatements have been approved by the Board of Directors inthe meeting held on 30.05.2018 For all periods up to and including the year ended 31 March 2017, the Company prepared its Standalonefinancial statements in accordance with requirements ofthe Accounting Standards notified under the Companies(Accounting Standards) Rules, 2006 ("Previous GAAP").These are the first Ind AS Standalone Financial Statements ofthe Company. The date of transition to Ind AS is 1 April, 2016.Refer note 2.24 below for the details of first-time adoptionexemptions availed by the Company.

Basis of preparation and presentation

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company is required to prepare its Standalone Financial Statements as per the Indian Accounting Standards (''Ind AS'') prescribed under section 133 of the Companies Act, 2013 read with rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Accounting Standards) Amendment Rules, 2016 with effect from 1 April, 2017. Accordingly, the Company has prepared these Standalone Financial Statements which comprise the Balance Sheet as at 31 March, 2018, the Statement of Profit and Loss, the Statements of Cash Flows and the Statementof Changes in Equity for the year ended 31 March, 2018, and accounting policies and other explanatory information (together hereinafter referred to as "Standalone Financial Statements" or "financial statements").

The Standalone Financial Statements have been prepared on the historical cost basis except for certain financial instruments measured at fair values at the end of eachreporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an assetor paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes in to account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for sharebased payment transactions that are within the scope of Ind AS 102, leasing transactions that are within the scope of Ind AS 17, and measurements that have some similarities to fairvalue but are not fair value, such as net realizable value in Ind AS 2 or value in use in Ind AS 36. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1,2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows:

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

Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

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

2.2 Basis of classifications of current and non current

All the assets and liabilities have been classified as current or non-current in the balance sheet,

An asset has been classified as current if (a) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is expected to be realized within twelve months after the reporting date; or (d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date. All other assets have been classified as non-current.

A liability has been classified as current when (a) it is expected to be settled in the Company''s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is due to be settled within twelve months after the reporting date; or (d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. All other liabilities have been classified as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

2.3 Revenue Recognition

Revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the Revenue can be reliably measured. The company recognizes revenue on sale of products, net of discounts, rebates granted, returns and duties when the products are delivered to customer which is when significant risk and rewards of ownership pass to the customer. Revenue from operations (gross) is net of adjustments on account of cancellation / returns. Revenue is measured at fair value of the consideration received or receivable.

Sales tax/Value added tax (VAT)/Goods and Service Tax (GST) is not received by the company on its own account.

Rather, its is tax collected on value added to the commodity/ services by the seller on behalf of the Government. Accordingly, it is excluded from revenue. However such tax expense is included in cost where Company is not availing any tax credit of the same.

A. Engineering Division

i) Accounting of Turnkey Projects:-

In case of item rate contracts, physical measurement of work actually completed becomes the basis of running bills approved by the awarders at the balance sheet date. Escalation and erection receipts are accounted for on the basis of bills/invoices acknowledged or paid by the project authorities. As per Ind AS-18, Revenue should be recognized by Stage of Completion Method. In case of the company, Stage of completion is determined by running bills approved by the awarder.

ii) Accounting of supply contract for sales of goods:-

Revenue from supply contract is recognized when following conditions are satisfied -:

a. the Company has transferred to the buyer the significant risks and rewards of ownership of the goods;

b. the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

c. The amount of revenue can be measured reliably;

d. It is probable that the economic benefits associated withthe transaction will flow to the Company; and

e. The costs incurred or to be incurred in respect of the transaction can be measured reliably.

iii) Accounting policy for claims:-

Claims are accounted as income in the period of receipt of Arbitration award or acceptance by client or evidence of acceptance received by client or evidence of payment received. Interest awarded, being in the nature of additional compensation under the terms of the contract, is accounted as contract revenue on receipt of favorable award.

iv) Accounting for Joint venture Contracts :-

- Contracts executed in joint venture under work sharing arrangement (Consortium) are accounted in accordance with the Accounting policy followed by the company as that of an independent contracts to the extent of company''s share in the work executed.

- In respect of contract executed in joint ventures under profit sharing arrangement (Assessment as AOP/Firm under Income Tax Laws) , the services rendered to the Joint Ventures are accounted as income on accrual basis. The profit/Loss is accounted for, as and when it is determined by the Joint Venture and the net investment in the Joint venture is reflected as investment, loans and advance or current liabilities.

- Profit from those joint ventures which are Firms, are accounted directly in investment accounts and respective investment get increased.

- Joint Operations are consolidated line by line in standalone financial statements in proportionate share of company.

B. Packaging Division,OM CINE PLEX /Hostel/Hotel (discontinued from 01.07.2017)

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the Revenue can be reliably measured. Revenue from operations (gross) is net of adjustments on account of cancellation / returns.

C. Real Estate Division A. For projects commenced on or after 1-April-2012 and also to projects which have already commenced but where revenue is being recognized for the first time on or after 1-April-2012.

Revenue from constructed properties/project is recognized in accordance with the "Revised guidance note issued by the institute of Chartered Accountants of India ("ICAI") on "Accounting for Real Estate Transaction (Revised 2012).The estimates of salable area and cost are revised periodically by the management. The effect of such changes to estimates is recognized in the period such changes are determined. As per this guidance Note, the revenue have been recognized on percentage of completion method provided all of the following conditions are meet at the reporting date:-

i) Required critical approvals for commencement of the project have been obtained.

ii) At least 25% of estimated construction and development cost (Excluding land cost) have been incurred.

iii) At least 25% of the saleable project area is secured by the agreements to sell/application form (containing salient terms of the agreement to sell) and .

iv) At least 10% of the total revenue as per agreement to sell are realized in respect of these agreements .

B. COST OF REVENUE:

Cost of constructed properties/project includes cost of land (including cost of development right/land under agreements to purchase) estimated internal development charges, direct overheads construction costs and development/construction materials, which is to the statement of profit and loss based on the revenue recognized as per the accounting policy, in consonance with the concept of matching costs and revenue, final adjustment is made upon completions of the specific project. Cost incurred /items purchased specifically for projects are taken as consumed as and when incurred/received.

C. UNBILLED RECEIVABLE:

Unbilled receivables disclosed under note no 18 & 49A . "Trade Receivable" represents revenue recognized based on percentage of completion method over and above the amount due as per the payment plans agreed with the customer

D. Revenue from Electricity Sales

Income from sale of electricity generated has been recognized on the basis of actual unit generated and transmitted to the SEB as per power purchase agreement.

E. Dividend Incomes:-

Revenue is recognized when the shareholder''s right to receive payment is established (provided that it is probable that the economic benefit will flow to the company and the amount of income can be measured reliably). Dividend from subsidiaries is recognized even if the same is declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the Companies Act., 2013.

F. Interest Income:-

Interest income from a financial asset is recognized when it is probable that the economic benefits will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on, time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

2.4 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Group as a lessor

Rental income from operating leases is recognised on straight-line basis over the term of the relevant lease. Initial direct cost incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on straight-line basis over the lease term.

The Group as a lessee

Assets held under finance leases are initially recognised as assets of the Group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the consolidated balance sheet as a finance lease obligation.

Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Consolidated Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Group''s general policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the term of the relevant lease. Where the rentals are structured solely to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases, such increases are recognised in the year in which such benefits accrue. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

2.5 Foreign currency Transaction:

The Functional and reporting currency of the company is INR. Transactions other than functional currency are treated as foreign currency transactions.

i) Initial Recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.

ii) Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

iii) Treatment of Exchange Differences

Exchange differences arising on settlement/restatement of short term foreign currency monetary assets and liabilities of the Company are recognized as income or expense in the Statement of Profit and Loss.

Exchange differences arising on long-term foreign currency monetary items related to acquisition of a fixed asset are capitalized and depreciated over the remaining useful life of the asset. Exchange differences arising on other long-term foreign currency monetary items are accumulated in the "Foreign Currency Monetary Translation Account" and amortized over the remaining life of the concerned monetary item.

iv)Translation of Foreign operation

The results and financial position of a foreign operation (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

- Assets and liabilities for each balance sheet presented (i.e. including comparatives) are translated at the closing rate at the date of that balance sheet;

- Income and expenses for each statement of profit and loss presented (i.e. including comparatives) are translated at average exchange rates; and

- All resulting exchange differences have been recognised in other comprehensive income.

On disposal of a foreign operation, the associated exchange differences are re-classified to profit or loss, as part of the gain or loss on disposal.

Cumulative currency translation differences for a foreign operation are deemed to be zero at the date of transition, viz., April 01, 2016. Gain or loss on a subsequent disposal of any foreign operation excludes translation differences that arose before the date of transition and includes only translation differences arising after the date of transition.

2.6 Borrowing costs:

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use..

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

The Company determines the amount of borrowing costs eligible for capitalization as the actual borrowing costs incurred on that borrowing during the period less any interest income earned on temporary investment of specific borrowings pending their expenditure on qualifying assets, to the extent that an entity borrows funds specifically for the purpose of obtaining a qualifying asset. In case if the Company borrows generally and uses the funds for obtaining a qualifying asset, borrowing costs eligible for capitalization are determined by applying a capitalization rate to the expenditures on that asset.

The Company suspends capitalization of borrowing costs during extended periods in which it suspends active development of a qualifying asset.

2.7 Retirement and other employee benefits:

(a) Payment to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

(b) Provident fund of the Company is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.

(c) Pension Fund of the Company is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the provident fund. The Company recognizes contribution payable to the provident fund scheme as expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.

(d)Gratuity liability is a defined benefit obligation of the company. The Company provides for gratuity to all eligible employees as calculated by actuarial valuer. The benefit is in the form of Lump sum payments to vested employees on resignation, retirement, on death while in employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of services. Vesting occurs upon completion of 5 years of services. The company has not made annual contributions to funds administered by trustees or managed by insurance companies.

(e) Accumulated leave, which is expected to be utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the year-end. The Company presents the entire leave as a non current liability in the balance sheet,

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefits expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income and such re-measurement gain / (loss) are not reclassified to the statement of profit and loss in the subsequent periods. They are included in retained earnings in the statement of changes in equity.

2.8 TAXATION:

Tax expense comprises of current tax, deferred tax and Dividend Tax which are described as follows -:

(a) Current Tax

Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Current tax is calculated using tax rates that have been enacted or substantively enacted by the end of reporting period. Current Tax is generally charged to profit & loss except when they relate to items which are recognized in other comprehensive income or equity.

(b) Deferred Tax

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

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

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred Tax is generally charged to profit & loss except when they relate to items which are recognized in other comprehensive income or equity.

Deferred tax asset and deferred tax liabilities are off-set if a legally enforceable right exist to set-off current tax asset against current tax liabilities and the deferred taxes relates to the same taxable entity and the same taxation authority.

(c) Dividend Tax

Tax on distributed profits payable in accordance with the provisions of section 115 O of the Income Tax Act., 1961 which is accounted in the year in which dividend get declared.

2.9 Property, Plant and Equipment

PROPERTY, PLANT & EQUIPMENT is recognized when it is probable that future economic benefits associated with the items will flow to the company and the cost of the item can be measured reliably.

PROPERTY, PLANT &EQUIPMENTS are stated at cost net of Cenvat less accumulated depreciation and impairment losses, if any. Cost of acquisition is inclusive of freight, duties, attributable overheads, taxes and incidental/preoperative expenses and interest on loans attributable to the acquisition of assets up to the date of commissioning of assets.

Assets in the course of construction are capitalized in the assets under construction account. At the point when the asset is operating at management''s intended use, the cost of construction is transferred to the appropriate category of the PROPERTY, PLANT & EQUIPMENT and depreciation commences.

Capital subsidy received against specific assets is reduced from the value of relevant PROPERTY, PLANT & EQUIPMENT.

Free hold land is carried at historical cost.

Leasehold land is not amortized as all leasehold land is on 99 years lease with local authority and such leasehold land is outside the scope of Ind AS-16.

All other items of property plant and equipment are stated at historical cost. Historical cost includes expenditure that is directly attributable to the acquisition of items.

Subsequent costs are included in assets carrying amount or recognized as a separate asset, as the case may be, only when it is probable that future economic benefits with the PROPERTY, PLANT & EQUIPMENT will flow to the entity and cost of the item will be measured reliably.

Carrying amount of component is recognized as a separate asset. Such component is derecognized when replaced.

Items of stores and spares that meet the definition of property, plant and equipment are capitalized at cost. Otherwise, such items are classified as inventories.

Repairs and maintenance are charged to profit and loss account as and when they are incurred.

An items of PROPERTY, PLANT & EQUIPMENT is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of asset. Any gain or loss arising on the disposal or retirement of an item of PROPERTY, PLANT & EQUIPMENT is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in statement of profit & loss.

Transition to IND AS

- On transition to Ind AS, Company elected to continue with the carrying value of all its PROPERTY, PLANT & EQUIPMENT recognized as at 1^st April, 2016 as per previous GAAP and use that carrying value as the deemed cost of property, plant and equipment less accumulated depreciation and cumulative impairment on the transition date of April 1, 2016.

- Such deemed cost exemption has been availed by the company as per para D-5 of Ind AS-101 First time adoption of Ind AS.

Depreciation and estimates

- Depreciation is calculated using written down value method to allocate their cost, net off there residual value (In Cineplex division depreciation is provided on SLM basis).

- The useful life of asset has been taken as specified in schedule 11 of Companies Act, 2013

- The residual value is not more than 5% of asset.

- The residual value is taken after considering the restoration cost.

- The assets'' residual values and useful lives of the assets are reviewed and adjusted if appropriate at the end of each reporting period.

2.10 Intangible Assets

Intangible assets (which comprises of software acquired) and depreciation /amortization on WDV method as per Companies Act 2013 and impairment losses if any.

Amortization is recognized on a written down value basis over their estimated useful lives. The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulatedimpairment losses.

Transition to IND AS

- On transition to Ind AS, Company elected to continue with the carrying value of all its Intangible Assets recognized as at 1^st April, 2016 as per previous GAAP and use that carrying value as the deemed cost of Intangible assets less accumulated depreciation and cumulative impairment on the transition date of April 1, 2016.

- Such deemed cost exemption has been availed by the company as per para D-5 of Ind AS-101 First time adoption of Ind AS.

2.11 Capital Work in Progress

Capital work in progress are stated at cost and inclusive of preoperative expenses, project development expenses etc.

2.12 Expenditure on New project and substantial expansion

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extent to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure (including borrowing costs)incurred during the construction period which is neither related to the construction activity nor is incidental thereto is charged to the statement of profit and loss. Income earned during construction period is deducted from the total of the indirect expenditure.

2.13.Impairment of Non-Financialassets:

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors.

An impairment loss is recognized in the Statement of Profit and Loss whenever the carrying amount of an asset or a cash generating unit exceeds its recoverable amount. The recoverable amount of the assets (or where applicable, that of the cash generating unit to which the asset belongs) is estimated as the higher of its net selling price and its value in use. A previously recognized impairment loss is increased or reversed depending on changes in circumstances.

However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

* Net realizable value is estimated selling price in the ordinary course ofousiness.

Hotel/Hostel Division :

Stock of operating supplies i.e. crockery, cutlery, glassware, utensils, linen etc. in circulation are written offas and when issued from the stores .

2.14 Provisions, contingent liabilities & Assets:

A Provision is recognized when an enterprise has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settled the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to its present value and are determined based on best management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.

A contingent asset is a possible asset that arises from past events the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise.

Other contingent liabilities and assets are not recognized but are disclosed in the notes.

2.15 Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly 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 the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

2.16.1 Financial assets

Initial recognition and measurement

The Company initially recognises loans and advances, deposits, debt securities issues andsubordinated liabilities on the date on which they originate. All other financial instruments (including regular way purchases and sales of financial assets) are recognised on the trade date, which is the date on which the Company becomes a party to the contractual provisions of the instrument. A financial asset or liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue.

Classification of financial assets

On initial recognition, a financial asset is classified to be measured at amortised cost, fair value through other comprehensive income (FVTOCI) or FVTPL.

Subsequent measurement

Debt Instruments-

Subsequent measurement of debt instruments depends on the Company''s business model for managing the asset and the cash flow characteristics of the asset. For the purposes of subsequent measurement, debt instruments are classified in three categories:

- Debt instruments at amortised cost;

- Debt instruments at fair value through other comprehensive income (FVTOCI);

- Debt instruments at fair value through profit or loss (FVTPL).

Debt instruments at amortised cost

A debt instrument is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

Interest free loan to subsidiary & joint ventures is carried at their fair value. For fair valuation 10 year risk free bond rate of Reserve bank of India rate is used. Difference between fair value and actual proceeds is recognized as the capital contribution to subsidiary & joint ventures and added to net investment in subsidiary& joint ventures.

Debt instrument at FVTOCI

A ''debt instrument'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). However, the Company recognizes interest income, impairment losses & reversals in the statement of profit and loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to the statement of profit and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Income is recognized on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL. Interest income is recognized in profit or loss and is included in the ''Other income'' line item.

Equity Instruments-

For the purposes of subsequent measurement, equity instruments are classified in two categories:

-Equity instruments measured at fair value through other comprehensive income (FVTOCI)

All equity investments are measured at fair value. The Company may make an irrevocable election to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument -by-instrument basis. The classification is made on initial recognition and is irrevocable..

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to statement of profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Quoted Investments are subsequently measured at closing quoted price and differences arising is charged to other comprehensive Income. Unquoted Investments are subsequently measured at intrinsic value of share and any differences arising is charged to other comprehensive Income.

Investment in subsidiaries and joint venture

Investment in subsidiaries is carried at deemed cost in the separate financial statements.

Investment in joint ventures and associates are valued at cost after adjusting impairment.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized when:

- The rights to receive cash flows from the asset have expired, or

- 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 either (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.

Impairment of financial assets

The Company assesses on a forward looking basis the expected credit losses associated with its assets carried at mortised cost and FVTOCI debt instruments. The impairment methodology applied depends on whether there has-been a significant increase in credit risk since initial recognition.

2.16.2 Financial liabilities Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss (FVTPL) include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Company chooses to subsequently measure it loans and borrowings at amortized cost using the interest rate mentioned in loan agreement of loans taken before 01.04.2017.. Gains and losses are recognised in profit or loss when the liabilities are de-recognised as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss. This category generally applies to borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another financial liability from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Offsetfng of financial instruments

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

2.17 Fair Value Measurement

The Company measures financial instruments, such as, equity instruments at fair value at each reporting 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. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

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

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

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

The fair value of an asset or a liability is measured using the 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 the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the 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 the lowest level input that is significant to the fair value measurement is directly or indirectly observable

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

For assets and liabilities that are recognized in the financial statements on a recurring basis, the 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 the fair value measurement as a whole) at the end of each reporting period.

The Company''s management determines the policies and procedures for both recurring fair value measurement, such as instruments and unquoted financial assets measured at fair value, and for non-recurring measurement, such as assets held for disposal in discontinued operation.

External valuers are involved for valuation of significant assets, such as properties and unquoted financial assets, and significant liabilities, such as contingent consideration, if any.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company''s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents.

The management, in conjunction with the Company''s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

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.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

2.18 Non Current Asset held for Sale and discontinued operations

Non-current assets (or disposal group) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The criteria for held for sale is regarded met only when the assets is available for immediate sale in its present condition, subject only to terms that are usual and customary for sale of such assets, its sale is highly probable; and it will genuinely be sold, not abandoned.

Non-current assets held for sale are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets.

An impairment loss is recognised for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset(or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of de-recognition.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and:

- represents a separate major line of business or geographical area of operations,

- is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

Discontinued operations are excluded from the results of continuing operations and are presented as profit or loss before / after tax from discontinued operations in the statement of profit and loss.

2.19 Segment Reporting Policies

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Chief operating decision maker review the performance of the Company according to the nature of products manufactured traded and services provided, with each segment representing a strategic business unit that offers different products and serves different markets. The analysis of segments is based on the activities performed by each segment.

2.20 Segment accounting policies

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting financial statements of the Company as a whole.

2.21 Cash and Cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

2.22 Dividend to equity holders of the Company

The Company recognises a liability to make dividend distributions to equity holders of the Company when the distribution is authorised and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognized directly in equity.

2.23 Earningsper Share

a. Basic EPS

Basic EPS is calculated by dividing the profit attributable to shareholders by the weighted average number of shares outstanding during financial year adjusted for bonus elements in the equity shares issued during the year.

b. Diluted EPS

Diluted EPS adjusts the figures used in the determination of basic EPS to take into account:

- The after income tax effect of interest and other financing costs associated with the dilutive potential equity share and

- The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential shares

2.24 First-time adoption - mandatory exceptions, optional exemptions

These are the Company''s first financial statements prepared in accordance with Ind AS. The significant accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet as at April 01, 2016 (the date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amount reported previously in financial statements prepared in accordance with the Accounting Standards notified under Section133 of the Companies Act, 2013, read with paragraph 7 of the Companies (Accounts) Rules, 2014 (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

(a) Optional exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under IndAS. The Company has applied the following exemptions:

(i) Business combinations

Ind AS 101 provides the option to apply Ind AS 103 prospectively from the transition date or from a specific date prior to the transition date. This provides relief from full retrospective application that would require restatement of all business combinations prior to the transition date. The Company elected to apply Ind AS 103 prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

(ii) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment (PROPERTY, PLANT &EQUIPMENT) as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities in case there is no change in the functional currency. This exemption can also be used for intangible assets covered by Ind AS 38 ''Intangible Assets''.

(iii) Investment in subsidiaries and joint venture

As per Ind AS 27, investment in subsidiaries and joint venture needs to be accounted into the books either at cost or at value determined in accordance with Ind AS 109. If a first time adopter measures such an investment at cost in accordance with Ind AS 27, it shall measure its investment at one of the following amounts in its separate opening balance sheet:

- Cost determined in accordance with the Ind AS 27; or

- Deemed cost

Deemed cost shall be either:

(a) The fair value at the entity''s date of transition to Ind AS; or

(b) The carrying value as per the previous GAAP at the date of transition.

A first time adopter may choose either (a) or (b) above to measure its investment in each subsidiary and joint venture.

(b) Ind AS mandatory exceptions applied

(i) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies),unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

-Investment in equity instruments carried at FVTP L or FVTOCI;

-Investment in debt instruments carried at FVTPL; and

-Impairment of financial assets based on expected credit loss model.

(ii) De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities, derecognised as a result of past transactions, was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109, prospectively from the date of transition to Ind AS.

(iii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments)on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

3. Critical judgments and estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires the management to make judgment, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and Liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

The areas involving critical estimates or judgments are:

- Estimation of current tax expense and payable

- Estimated useful life of Property Plant and equipment

- Estimated Useful life of intangible assets

- Estimation of defined benefit obligations

- Estimation for the value of contingent liabilities

- Recognition of revenue

- Estimation of repayment period of loan to subsidiaries and joint ventures Key sources of estimation uncertainty and critical accounting judgements

In the course of applying the policies outlined in all notes under section 2 above, the Company is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

Key sources of estimation uncertainty

i) Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based on various internal and external factors including relative efficiency and operating costs. Accordingly, depreciable lives are reviewed annually using the best information available to the Management.

ii) Impairment of property plant and equipment

Determining whether the property, plant and equipment are impaired requires an estimate in the value in use of plant and equipment. The value in use calculation requires the Management to estimate the future cash flows expected to arise from the property, plant and equipment and a suitable discount rate in order to calculate present value. When the actual cash flows are less than expected, a material impairment loss may arise

iii) Provisions and liabilities

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events that can reasonably be estimated. The timing of recognition requires application of judgment to existing facts and circumstances which may be subject to change. The amounts are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

iv) Impairment of investments in joint ventures and associate

Determining whether the investments in joint ventures and associate are impaired requires an estimate in the value in use of investments. In considering the value in use, the Management have anticipated the future commodity prices, capacity utilization of plants, operating margins, mineable resources and availability of infrastructure of mines, discount rates and other factors of the underlying businesses / operations of the investee companies. Any subsequent changes to the cash flows due to changes in the above mentioned factors could impact the carrying value of investments.

v) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

vi) Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgements include consideration of inputs such as liquidity risk, credit risk and volatility. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in note 2.23.

vii) Taxes

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

---

Mar 31, 2014

1.1 ACCOUNTING CONVENTION :

The financial statements of the company have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Ac3counting Standards) rules , 2006 (as amended) and the relevant provisions of the Companies Act. , 1956 and provisions of companies act 2013 to the extent applicable. The financial statements have been prepared under the historical cost convention method on an accrual basis except in case of assets for which provision for impairment Is made and revaluation is carried out. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year, claims of liquidated damages on supplies. Warranties, fuel escalation charges payable to the electricity board which are accounted for on acceptance and other claims accounted for receipt/ payment basis. In view of uncertainty involved.

1.2 FIXED ASSETS AND DEPRECIATION :

(a) Fixed Assets ( Other than land & building, plant & machinery of the company which have been re-valued and stated at the revalued figures ) are stated at cost net of cenvat less accumulated depreciation and impairment losses, if any. Cost of acquisition or construction is inclusive of freight, duties, taxes and incidental/preoperative expenses and interest on loans attributable to the acquisition of assets upto the date of commissioning of assets . Capital subsidy received against specific assets is reduced from the value of relevant fixed assets .

(b) The depredation has been provided on straight line method of depreciation at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on assets used in Engineering and real estate divisions, which is on written down value method.

(c) Depreciation is calculated on a prorate basis from the date of additions and on assets sold, discarded etc during the year. Depreciation is provided up to the date of sale / discard.

(d) Lease hold land are not amortized.

1.3 EXPENDITURE ON NEW PROJECT AND SUBSTANTIAL EXPANSION

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extant to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure (including borrowing costs)incurred during the construction period which is not related to the construction activity nor is incidental thereto is charged to the statement of profit and loss . Income earned during construction period is deducted from the total of the indirect expenditure,

1.4 INVENTORIES

Inventories are valued as follows

* Net realizable value is estimated selling price in the ordinary course of business.

B) Hotel Division:

Stock of operating supplies i.e. crockery, cutlery, glassware, utensils, linen etc. in circulation are written off as and when issued from the stores.

1.5 FOREIGN CURRENCY TRANSACTION :

a) Transactions in foreign currencies are recorded on initial recognition at the exchange rates prevailing on the date of the transaction .

b) Monetary items (i.e. receivables , payables ,loans etc) denominated in foreign currencies at the year end are restated at year end rates. In case of monetary items which are covered by forward exchange contracts , the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract,

c) Non monetary foreign currency items are carried at cost.

d) Any income or expenses on account of exchange difference either on settlement or on translation is recognized as revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

1.6 REVENUE RECOGNITION:

a) Engineering Division :

Sales of products (Fabricated goods) escalation and erection receipts (sales is net of trade discount and sales tax) are accounted for on the basis of bills/invoices acknowledged or paid by the project authorities.

b) Other Divisions:

Sales comprises of sales of goods, room sales etc. are excluding sales tax/VAT . It is being accounted for net of returns/discount/claims etc.

c) Income of interest on refund of income tax is accounted for in the year, the order is passed by the concerned authority.

d) Revenue from real estate division are recognized on the percentage of completions method of accounting. Revenue is recognized as per AS-7, in relation to the sold areas only, on the basis of percentage of actual Direct cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual costs being 25% or more of the total estimated cost. The estimates of saleable area and cost are revised periodically by the management. The effect of such changes to estimates is recognized in the period such changes are determined.

e) Revenue is recognized when the shareholder''s right to receive payment is established by the balance sheet date . Dividend from subsidiaries is recognized even if the same is declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of Schedule VI of the Companies Act., 1956.

f) The share of profits from partnerships firm has been taken as share of income in the head other income as against the previous policy of line by line consolidation .The effect of income due to this is Rs.19.19 cr in this current fiscal and previous years Rs,18.24 cr which has been considered in reserves and surplus..

1.7 INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are from the date on which such investments are made, are classified as current investments. All other investments are classified as long Term Investments on initial recognition , all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, Provision for diminution in the value is made to recognize a decline other than temporary in the value of the investments.

1.8 RESEARCH AND DEVELOPMENT:

The revenue expenditure on research and development is charged as an expense in the year in which it is incurred. Capital expenditure is included in fixed assets

1.9 BORROWING COSTS:

Borrowing costs directly attributable to the acquisition, construction or production of an assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds.

1.10 TAXATION:

(a) Current Tax;

The income tax liability provided in accordance with the provisions of the Income Tax Act, 1961, as advised by income tax consultant,

(b) Deferred Tax Liabilities/(Assets)

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax assets or a deferred tax liabilities . They are measured using the substantively enacted tax rate and tax laws.

(c) Dividend Tax

Tax on distributed profits payable In accordance with the provisions of section 115 O of the Income Tax Act., 1961 which is accounted for in accordance with the Guidance Not on Accounting for Corporate Dividend tax is regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

1.11 RETIREMENT AND OTHER EMPLOYEE BENEFITS :

a) Retirement benefit in the form of provident fund is a defined benefit obligation of the company and the contributions are charged to the statement of profit and loss of the year when the contributions to the funds are due. The company is liable to meet the Shortfall, if any, in payment of intent at the rates declared by the central Government , and such liability is recognized in the year of shortfall.

b) Gratuity:

Gratuity liability is a defined benefit obligation of the company. The Company provides for gratuity to all eligible employees. The benefit is in the form of Lump sum payments to vested employees on resignation, resignation, retirement, on death while in employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of services. Vesting occurs upon completion of 5 years of services. The company has not made annual contributions to funds administered by trustees or managed by insurance companies. Actuarial valuation for the liabilities has been provided as per report submitted by the certified valuer.

c) Leave Salaries:

Liabilities for privilege leave benefits, in accordance with the rules of the company is provided for, as prevailing salary rate for the entire un-availed leave balance as at the balance sheet date. Actuarial valuation for the liabilities has been provided as per report submitted by the certified valuer.

1.12 IMPAIRMENT OF ASSETS:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimation of recoverable amount

1.13 PROVISIONS. CONTINGENT LIABILITIES & ASSETS:

A Provision is recognized when an enterprise has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settled the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to its present value and are determined based on best management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates , Other contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statement.

1.14 EARNING PER SHARE:

Basic earnings per share is calculated by dividing the Net Profit or Loss for the year attributable to equity share holders (After deducting taxes etc.) by the weighted average number of the equity shares outstanding during the year are adjusted for the effect.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year are attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.15 USE OF ESTIMATE:

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires the management to make judgment, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and Liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions , uncertainty about these assumptions and estimates could result in the out comes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.16 OPERATING LEASE

Operating Lease receipts and payments are recognized as income or expense in the statement of profit and loss as per the terms of the lease agreement.

1.17 CASH FLOW STATEMENT

The Cash flow statement is prepaid using "in direct method " set out in Accounting Standard - 3 cash flow statement "and presents the cash flow by operating, investing and financing activities of the company. Cash and Cash equivalents presented in the cash flow statement consist of cash'' on hand and highly liquid bank balances.

---

Mar 31, 2013

1.1 ACCOUNTING CONVENTION :

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) rules , 2006 (as amended) and the relevant provisions of the Companies Act. , 1956. The financial statements have been prepared under the historical cost convention method on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year, claims of liquidated damages on supplies, Warranties, fuel escalation charges payable to the electricity board which are accounted for on acceptance and other claims accounted for receipt/ payment basis, In view of uncertainty involved.

1.2 FIXED ASSETS AND DEPRECIATION :

(a) Fixed Assets ( Other than land & building, plant & machinery of the company which have been re-valued and stated at the revalued figures) are stated at cost net of cenvat less accumulated depreciation and impairment , if any. Cost of acquisition or construction is inclusive of freight, duties, taxes and incidential/preoperative expenses and interest on loans attributable to the acquisition of assets upto the date of commissioning of assets . Capital subsidy received against specific assets is reduced from the value of relevant fixed assets.

(b) The depreciation has been provided on straight line method of depreciation at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on assets used in Engineering and real estate divisions , which is on written down value method.

(c) Depreciation is not provided during the year in respect of assets sold, discarded etc during the year upto the date of sales/discard in the Engineering and real estate divisions.

(d) Depreciation is calculated on pro-rata basis from the date of additions except on assets of Engineering real estate divisions which are depreciated for a full year.

(e) Lease hold land are not amortized .

1.3 Expenditure on New project and substantial expansion

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extant to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure (including borrowing costs)incurred during the construction period which is not related to the construction activity nor is incidental thereto is charged to the statement of profit and loss . Income earned during construction period is deducted from the total of the indirect expenditure.

1.4 INVENTORIES

Inventories are valued as follows :-

(A) (a) Raw Material, Stores & Spares, Components, construction material. food & beverages, liquor, crockery, cutlery, glassware, utensils and linen

At cost (FIFO method) or net realizable value, whichever is lower.

(b) Process Stocks At cost or net realizable value, which ever is lower. Cost for this purpose includes direct material cost plus appropriate share of manufacturing overheads on work done basis.

© Finished Goods A Cost or net realizable value*, which ever is lower. Cost for this purpose includes direct material cost plus appropriate share of overhead.

(d) Goods in transit Are stated at actual cost plus freight, if any.

* Net realizable value is estimated selling price in the ordinary Course of business.

B) Hotel Division :

Stock of operating supplies i.e. crockery, cutlery, glassware, utensils, linen etc. in circulation are written off as and when issued from the stores .

1.5 Foreign currency Transaction :

a) Transactions in foreign currencies are recorded on initial recognition at the exchange rates prevailing on the date of the transaction .

b) Monetary items (i.e. receivables , payables , loans etc) denominated in foreign currencies at the year end are restated at year end rates. In case of monetary items which are covered by forward exchange contracts , the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expenses on account of exchange difference either on settlement or on translation is recognized as revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

1.6 Revenue Recognition :

a) Engineering Division :

Sales of products (Fabricated goods) escalation and erection receipts (sales is net of trade discount and sales tax) are accounted for on the basis of bills/invoices acknowledged or paid by the project authorities.

b) Other Divisions :

Sales comprises of sales of goods, room sales etc. are excluding sales tax/VAT . It is being accounted for net of returns/discount/claims etc

c) Income of interest on refund of income tax is accounted for in the year, the order is passed by the concerned authority .

d) Revenue from real estate division are recognized on the percentage of completions method of accounting. Revenue is recognized , in relation to the sold areas only, on the basis of percentage of actual Direct cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual costs being 25% or more of the total estimated cost. The estimates of saleable area and cost are revised periodically by the management . The effect of such changes to estimates is recognized in the period such changes are determined.

e) Revenue is recognized when the shareholder''s right to receive payment is established by the balance sheet date . Dividend from subsidiaries is recognized even if the same is declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of Schedule VI of the Companies Act., 1956.

1.7 INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are from the date on which such investments are made, are classified as current investments. All other investments are classified as long Term Investments on initial recognition , all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long term investments are carried at cost. However, Provision for diminution in the value is made to recognize a decline other than temporary in the value of the investments.

1.8 RESEARCH AND DEVELOPMENT :

The revenue expenditure on research and development is charged as an expense in the year in which it is incurred. Capital expenditure is included in fixed assets

1.9 Borrowing costs :

Borrowing costs directly attributable to the acquisition, construction or production of an assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur . Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds.

1.10 TAXATION :

(a) Current Tax :

The income tax liability provided taking into considerations of claiming of deduction under section 80 IB of the Income Tax Act. and in accordance with the provisions of the Income Tax Act, 1961, as advised by income tax consultant.

(b) Deferred Tax Liabilities/(Assets)

The tax effect of the timing differences that result between taxable income and accounting income and are capable of reversal in one or more subsequent periods are recorded as a deferred tax assets or a deferred tax liabilities . They are measured using the substantively enacted tax rate and tax laws.

© Dividend Tax

Tax on distributed profits payable in accordance with the provisions of section 115 O of the Income Tax Act., 1961 which is accounted for in accordance with the Guidance Not on Accounting for Corporate Dividend tax is regarded as a tax on distribution of profits and is not considered in determination of profits for the year.

1.11 Retirement and other employee benefits :

a) Retirement benefit in the form of provident fund is a defined benefit obligation of the company and the contributions are charged to the statement of profit and loss of the year when the contributions to the funds are due. The company is liable to meet the Shortfall, if any, in payment of intent at the rates declared by the central Government , and such liability is recognized in the year of shortfall.

b) Gratuity:

The company has provided for gratuity as per actuarial valuation done by certified actuarial valuer. However interest cost is not been provided which aggregates to Rs. 533060/-.

c) Leave Salaries:

Liabilities for privilege leave benefits, in accordance with the rules of the company is provided for, as prevailing salary rate for the entire un-availed leave balance as at the balance sheet date.

1.12 Impairment of assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimation of recoverable amount

1.13 Provisions, contingent liabilities & Assets:

A Provision is recognized when an enterprise has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settled the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not disclosed to its present value and are determined based on best management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates . Other contingent liabilities are not

1.14 Earning per Share:

Basic earnings per share is calculated by dividing the Net Profit or Loss for the year attributable to equity share holders (After deducting taxes etc.) by the weighted average number of the equity shares outstanding during the year are adjusted for the effect.

For the purpose of calculating diluted earning per share, the net profit or loss for the year are attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.15 Use of Estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires the management to make judgment, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and Liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions , uncertainty about these assumptions and estimates could result in the out comes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

1.16 Operating Lease - Operating Lease receipts and payments are recognized as income or expense in the statement of profit and loss as per the terms of the lease agreement.

1.17 Cash flow statement

The Cash flow statement is prepaid the "in direct method " set out in Accounting Standard - 3 cash flow statement "and presents the cash flow by operating , investing and financing activities of the company. Cash and Cash equivalents presented in the cash flow statement consist of cash on hand and highly liquid bank balances.

---

Mar 31, 2012

1.1 ACCOUNTING CONVENTION:

The financial statements have been prepared to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) rules , 2006 (as amended) and the relevant provisions of the Companies Act. , 1956. The financial statements have been prepared under the historical cost convention method on an accrual basis except in case of assets for which provision for impairment is made and revaluation is carried out. The accounting policies have been consistently applied by the company and are consistent with those.used irLthe previous year, claims of liquidated damages on supplies, Warranties, fuel escalation charges payable to the electricity board which are accounted for on acceptance and other claims accounted for receipt/ payment basis, In view of uncertainty involved.

12 FIXED ASSETS AND DEPRECIATION :

(a) Fixed Assets ( Other than land & building, plant & machinery of the company which have been re-valued and stated at the revalued figures ) are stated at cost net of cenvat less accumulated depreciation and impairment , if any. Cost of acquisition or construction is inclusive of freight, duties, taxes and incidential/preoperative expenses and interest on loans attributable to the acquisition of assets upto the date of commissioning of assets.^jCapital subsidy received against specific assets is reduced from the value of relevant fixed assets .

(b) The depreciation has been provided on straight line method of depreciation at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on assets used in Engineering Division, which is on written down value method.

(c) Depreciation is not provided during the year in respect of assets sold, discarded etc during the year upto the date of sales/discard in the Engineering Division.

(d) Depreciation is calculated on pro-rata basis from the date of additions except on assets of Engineering Division which are depreciated for a full year.

(e) Lease hold land are not amortized .

1.3 Expenditure on New project and substantial expansion

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extant to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure {including borrowing costs)incurred during the construction period which is not related to the construction activity nor is incidental thereto is charged to the statement of profit and loss . Income earned during construction period is deducted from the total of the indirect expenditure.

1.4 INVENTORIES

Inventories are valued as follows :-

(A) (a) Raw Material/ Stores & Spares, Components, construction material. food & beverages, liquor, crockery, cutlery, glassware, utensils and linen

At cost (FIFO method) or net realizable value, whichever is lower.

(b) Process Stocks

At cost or net realizable value, which-ever- is lower. Cost for this purpose includes direct material cost and appropriate of manufacturing overheads on work done basis.

(c) Finished Goods

A Cost or net realizable value*, which ever is lower. Cost for this purpose includes direct material cost and a proportion of manufacturing overhead.

(d) Goods in transit

Are stated at actual cost plus freight, if any.

* Net realizable value is estimated selling price in the ordinary course of business.

B) Hotel Division :

Stock of operating supplies i.e. crockery, cutlery, glassware, utensils, linen etc. in circulation are written off as and when issued from the stores .

1.5 Foreign currency Transaction :

a) Transactions in foreign currencies are recorded on initial recognition at the exchange rates prevailing at the

b) Monetary items (i.e. receivables, payables , loans etc) denominated in foreign currencies at the year end are restated at year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c} Non monetary foreign currency items are carried at cost.

d> Any income or expenses on account of exchange differenc either on settlement or on translation is recognized as revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

1.6 Revenue Recognition :

a) Engineering Division :

Sales of products {Fabricated goods) escalation and erection receipts {sales is net of trade discount and sales tax) are accounted for on the basis of bills/invoices acknowledged or paid by the project authorities.

b) Other Divisions:

Sales comprises of sales of goods, room sales etc. are excluding sales tax/VAT . It is being accounted for net of returns/discount/claims etc

c) Income of interest on refund of income tax is accounted for in the year, the order is passed by the concerned authority .

d) Revenue from real estate division are recognized on the percentage of completions method of accounting. Revenue is recognized , in relation to the sold areas only, on the basis of percentage of actual Direct cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual costs being 30% or more of the total estimated cost. The estimates of saleable area and cost are revised periodically by the management. The effect of such changes to estimates is recognized in the period such changes are determined.

e) Revenue is recognized when the shareholder's right to receive payment is established by the balance sheet date . Dividend from subsidiaries is recognized even if the same is declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirement of Schedule VI of the Companies Act., 1956.

1.7 INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long Term Investments Current inyestments are carried at lower of cost and fair value determined on and individual investment basis. Long term investments are carried at cost. However, Provision for diminution in the value is made to recognize a decline other than temporary in the value of the investments.

1.8 RESEARCH AND DEVELOPMENT:

The revenue expenditure on research and development is charged as an expense in the year in which it is incurred. Capital expenditure is included in fixed assets

1.9 Borrowing costs :

Borrowing costs directly attributable to the acquisition and construction of and assets that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur . Borrowing costs consists of interest and other costs that an entity incurs in connection with the borrowing of funds.

1.11 TAXATION :

(a) Current Tax:

The income tax liability provided taking into considerations of claiming of deduction under section 80 IB of the Income Tax Act and in accordance with the provisions of the Income Tax Act, 1961, as advised by income tax consultant.

(b) Deferred Tax Liabilities/(Assets)

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.12 Retirement and other employee benefits :

Retirement benefit in the form of provident fund is a defined benefit obligation of the company and the contributions ares charged to the statement of profit and loss of the year when the contributions to the funds are due. Shortfall in the funds, if any, is adequately provided for by the company.

b) Gratuity:

Gratuity liability is a defined benefit obligation of the company . The company provides for gratuity to all eligible employees. The benefit is in the form of lump sump payments to vested employees on resignation, retirement, on death while in employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of service. Vesting occurs upon completion of 5 years of services. The company has not made annual contributions to funds administered by trustees or managed by insurance companies. Actuarial valuation for the liabilities has , however has not been done.

c) Leave Salaries:

Liabilities for privilege leave benefits, in accordance with the rules of the company is provided for, as prevailing salary rate for the entire un-availed leave balance as at the balance sheet date.

1.13 Impairment of assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimation of recoverable amount

1.14 Provisions, contingent liabilities & Assets:

A Provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settled the obligation , in respect of which a reliable estimate can be made. Provisions are not disclosed to its present value and are determined based on best management estimate required to settle; the" obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates . Other contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statement.

1.15 Earning per Share:

Basic earnings per share is calculated by dividing the Net Profit or Loss for the period attributable to equity share holders (After deducting taxes etc.) by the weighted average number of the equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or Loss for the period attribuable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

1.16 Use of Estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and Liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operation during the reporting period end. Although these estimates are based upon management's best no knowledge of current events and actions , actual results could differ from these estimates . Difference between actual results and estimates is recognized in the period in which the results are known / materialized.

1.17 Operating Lease - Lease rentals in respect of assets taken are charged to statement of profit and loss as per the terms of the lease agreement.

---

Mar 31, 2010

(i) ACCOUNTING CONVENTION :

The financial statements of the Company are prepared under the historical cost convention method and in accordance with the applicable accounting standards except where other wise stated. The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except claims of liquidated damages on supplies, Warranties, fuel escalation charges payable to the electricity board which are accounted for on acceptance and other claims accounted for receipt/ payment basis, In view of uncertainty involved.

(ii) FIXED ASSETS AND DEPRECIATION :

(a) Fixed Assets ( Other than land & building, plant & machinery of the company - which have been re-valued and stated at the revalued figures) are stated at cost net of cenvat less accumulated depreciation and impairment, if any. The Cost of acquisition or construction is inclusive of freight, duties, taxes and incidential/preoperative expenses and interest on loans attributable to the acquisition of assets upto the date of commissioning of assets . Capital subsidy received against specific assets is reduced from the value of relevant fixed assets .

(b) The depreciation has been provided on straight line method of depreciation at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on assets used in Engg. Div. Which is on written down value method.

(c) Depreciation is not provided during the year in respect of assets sold, discarded etc during the year upto the date of sales/discard.

(d) Depreciation is calculated on pro-rata basis from the date of additions except on assets of Engg. Division which are depreciated for a full year.

(e) Lease hold land are not depreciated.

(f) Expenditure on New project and substantial expansion

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extant to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure including borrowing costs)incurred during the construction period which is not related to the construction activity nor is incidental thereto is charged to the profit & loss account. Income earned during construction period is deducted from the total of the indirect expenditure.

iv) Hotel Division :

Stock of operating supplies i.e. crockery, cutlery, glassware, utensils, linen etc. in circulation are treated as consumption as and when issued from the stores .

v) Foreign currency Transaction:

a) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of the transaction .

b) Monetary items denominated in foreign currencies at the year end are restated at , year end rates. In case of monetary items which are covered by forward exchange contracts , the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

Non monetary foreign currency items are carried at cost.

d) Any income or expenses on account of exchange difference either on settlement or on translation is recognized as revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

vi) Revenue Recognition :

a) Engineering Division :

Sales of products (Fabricated goods) escalation and erection receipts are accounted for on the basis of bills/invoices acknowledged or paid by the project authorities.

b) Other Divisions :

Sales comprises of sales of goods, room sales etc. are excluding sales tax/VAT . It is being accounted for net of returns/discount/claims etc

c) Income of interest on refund of income tax is accounted for in the year, the order is passed by the concerned authority .

d) Revenue from construction contracts/projects and real estate are recognized on the percentage of completions method of accounting. Revenue is recognized , in relation to the sold areas only, on the basis of percentage of actual cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual costs being 30% or more of the total estimated cost . The estimates of saleable area and cost are revised periodically by the management. The effect of such changes to estimates is recognized in the period such changes are determined.

e) Dividend from investments in shares/units is recognized when the company/mutual fund in which they are held declares the dividend and the right to receive the same is established.

vii) INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long Term Investments .Current investments are carried at lower of cost and fair value determined on and individual investment basis. Long term investments are carried at cost. However, Provision for diminution in the value is made to recognize a decline other than temporary in the value of the investments.

viii) MISCELLANEOUS EXPENDITURE ( To the extent not written off or ; adjusted)

Miscellaneous expenditure such as public issue expenditure are amortized over a period of 5 years.

ix) RESEARCH & DEVELOPMENT :

Research & development costs ( Other than cost of fixed assets acquired are charged as an expense in the year in which they are incurred.

x) Borrowing costs :

Borrowing costs are recognized as expenses in the period in which they are incurred except for borrowings for acquisition of qualifying assets which are capitalized upto the date, the assets is ready for its intended use.

xi) TAXATION :

(a) Current Tax :

The income tax liability provided in accordance with the provisions of the Income Tax Act, 1961 or as advised by income tax consultant after claiming deduction

under section 80 I.

(b) Deferred Tax Liabilities/(Assets)

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

xii) Retirement benefits and other employee benefits :

a) Companys contribution to recognized provident fund maintained and managed by the office of regional provident fund commissioner paid/payable during the year is recognized the profit and loss account.

b) Gratuity:

The company provides for gratuity to all eligible employees. The benefit is in the form of lump sump payments to vested employees on resignation, retirement, on death while in employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of service. Vesting occurs upon completion of 5 years of service. The company has not made annual contributions to funds administered by trustees or managed by insurance companies. Actuarial valuation for the liabilities has , however has not been done.

c) Leave Salaries:

Liabilities for privilege leave benefits, in accordance with the rules of the company is provided for, as prevailing salary rate for the entire un-availed leave balance as at the balance sheet date.

xiii) Impairment of assets:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimation of recoverable amount

xiv) Provision, contingent liabilities and contingent assets:

Provisions involving substantial degree of estimation in measurement - are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Other contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statement.

xv) Earning per Share:

Basic earnings per share is calculated by dividing the Net Profit or Loss for the period attributable to equity share holders (After deducting taxes etc.) by the weighted average number of the equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effect of all diluted potential equity shares.

xvi) Use of Estimate:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual result and estimates are recognized in the period in which results are known / materialized.

xvii) Operating Lease - Lease rentals in respect of assets taken are charged to profit & loss account as per the terms of the lease agreement.

---

Mar 31, 2009

I. ACCOUNTING CONVENTION:

The financial statements of the Company are prepared under the historical cost convention method and in accordance with the applicable accounting standards except where other wise stated. The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis except claims of liquidated damages on supplies, Warranties, fuel escalation charges payable to the electricity board which are accounted for on acceptance and other claims accounted for receipt/ payment basis, In view of uncertainty involved.

ii. FIXED ASSETS AND DEPRECIATION:

a) Fixed Assets ( Other than land & building, plant & machinery of the company which have been re-valued and stated at the revalued figures ) are stated at cost net of cenvat less accumulated depreciation and impairment , if any. The Cost of acquisition or construction is inclusive of freight, duties, taxes and incidential/preoperative expenses and interest on loans attributable to the acquisition of assets upto the date of commissioning of assets . Capital subsidy received against specific assets is reduced from the value of relevant fixed assets .

b) The depreciation has been provided on straight line method of depreciation at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 except on assets used in Engg. Div. Which is on written down value method.

c) Depreciation is not provided during the year in respect of assets sold, discarded etc during the year upto the date of sales/ discard.

d) Depreciation is calculated on pro-rata basis from the date of additions except on assets of Engg. Division which are depreciated for a full year.

e) Lease hold land are not depreciated.

f) Expenditure on New project and substantial expansion

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction period is capitalized as part of the indirect construction cost to the extent to which the expenditure is indirectly related to construction or is incidental thereto. Other indirect expenditure (including borrowing costs)incurred during the construction period which is not related to the construction activity nor is incidental thereto is charged to the profit & loss account. Income earned during construction period is deducted from the total of the indirect expenditure.

iii. INVENTORIES:

Inventories are valued as follows:-

A. a) Raw Material, Stores & Spares, Components, construction material. food & beverages, liquor, crockery, cutlery, glassware, utensils and linen

At cost (FIFO method) or net realizable value, whichever is lower.

b) Process Stocks

At cost or net realizable value, which ever is lower. Cost for this purpose includes direct cost and factory overheads allocated on absorption cost method.

c) Finished Goods

Cost as stated in (b) above or net realizable value*, which ever is lower. The cost here includes taxes and duties wherever applicable.

d) Goods in transit

Are stated at actual cost plus freight, if any.

* Net realizable value is estimated selling price in the ordinary course of business.

IV. HOTEL DIVISION:

Stock of operating supplies i.e. crockery, cutlery, glassware, utensils, linen etc. in circulation are treated as consumption as and when issued from the stores.

V. FOREIGN CURRENCY TRANSACTION:

a) Transactions denominated in foreign currencies are normally recorded at the exchange rates prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates. In case of monetary items which are covered by forward exchange contracts , the difference between the year end rate and rate on the date of the contract is recognized as exchange difference and the premium paid on forward contracts is recognized over the life of the contract.

c) Non monetary foreign currency items are carried at cost.

d) Any income or expenses on account of exchange difference either on settlement or on translation is recognized as revenue except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

VI. REVENUE RECOGNITION:

a) Engineering Division:

Sales of products (Fabricated goods) escalation and erection receipts are accounted for on the basis of bills/invoices acknowledged or paid by the project authorities.

b) Other Divisions :

Sales comprises of sales of goods, room sales etc. are excluding sales tax/VAT . It is being accounted for net of returns/ discount/claims etc

c) Income of interest on refund of income tax is accounted for in the year, the order is passed by the concerned authority .

d) Revenue from construction contracts/projects and real estate are recognized on the percentage of completions method of accounting. Revenue is recognized , in relation to the sold areas only, on the basis of percentage of actual cost incurred thereon including land as against the total estimated cost of the project under execution subject to such actual costs being 30% or more of the total estimated cost . The estimates of saleable area and cost are revised periodically by the management. The effect of such changes to estimates is recognized in the period such changes are determined.

f) Dividend from investments in shares/units is recognized when the company/mutual fund in which they are held declares the dividend and the right to receive the same is established.

VII. INVESTMENTS:

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long Term Investments .Current investments are carried at lower of cost and fair value determined on individual investment basis. Long term investments are carried at cost. However, Provision for diminution in the value is made to recognize a decline other than temporary in the value of the investments.

VIII. MISCELLANEOUS EXPENDITURE:

(To the extent not written off or; adjusted) Miscellaneous expenditure such as public issue expenditure are amortized over a period of 5 years.

IX. RESEARCH & DEVELOPMENT:

Research & development costs ( Other than cost of fixed assets acquired are charged as an expense in the year in which they are incurred.

X. BORROWING COSTS:

Borrowing costs are recognized as expenses in the period in which they are incurred except for borrowings for acquisition of qualifying assets which are capitalized upto the date, the assets is ready for its intended use.

XI. TAXATION:

a) Current Tax:

The income tax liability provided in accordance with the provisions of the Income Ta x Act, 1961 or as advised by income tax consultant after claiming deduction under section 80 I .

b) Deferred Ta x Liabilities/(Assets)

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

c) Fringe benefit tax :

Fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the provision of Income Tax Act, 1961.

XII. RETIREMENT BENEFITS AND OTHER EMPLOYEE BENEFITS:

a) Companys contribution to recognized provident fund maintained and managed by the office of regional provident fund commissioner paid/payable during the year is recognized the profit and loss account.

b) Gratuity :

The company provides for gratuity to all eligible employees. The benefit is in the form of lump sump payments to vested employees on resignation, retirement, on death while in employment or on termination of employment of and amount equivalent to 15 days basic salary payable to each completed year of service. Vesting occurs upon completion of 5 years of service. The company has not made annual contributions to funds administered by trustees or managed by insurance companies. Actuarial valuation for the liabilities has , however has not been done.

c) Leave Salaries:

Liabilities for privilege leave benefits, in accordance with the rules of the company is provided for, as prevailing salary rate for the entire un-availed leave balance as at the balance sheet date.

XIII. IMPAIRMENT OF ASSETS:

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimation of recoverable amount.

XIV. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an out flow of resources. Other contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statement.

XV. EARNING PER SHARE:

Basic earnings per share is calculated by dividing the Net Profit or Loss for the period attributable to equity share holders (After deducting taxes etc.) by the weighted average number of the equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effect of all diluted potential equity shares.

XVI. USE OF ESTIMATE:

The preparation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and Liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual result and estimates are recognized in the period in which results are known / materialized.