Notes to Accounts of Rajnandini Metal Ltd.

Mar 31, 2025

vi) Provisions, Contingent Liabilities and Contingent Assets

Disclosure of contingencies as required by the Indian accounting standard is furnished in the Notes on accounts.

. Provisions are made when (a) the Company has a present obligation as a result of past events; (b) it is probable that an outflow of resources
. embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate is made of the amount of the obligation.

Contingent Liability is disclosed after careful evaluation of facts, uncertainties and possibility of reimbursement, unless the possibility of an
outflow of resources embodying economic benefits is remote. Contingent liabilities are not recognized but are disclosed in notes. Contingent
assets are not recognized. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, and
is recognized as an asset. Information on contingent liabilities is disclosed in the notes to the financial statement. A contingent asset is disclosed ''
. ’ where an inflow of economic benefits is probable.

vii) Financial Instruments

(a) Financial Assets

Initial recognition and measurement

The company recognizes financial assets and liabilities when it becomes a party to the contractual provisions of the instrument. All financial
assets are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or
loss are added to the fair value on initial recognition. Purchase and sale of financial assets are accounted for at trade date.

Subsequent Measurement : Non-derivative financial instruments
Financial assets carried at amortized cost (AC)

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

Financial assets at fair value through other comprehensive income (FVTOCI)

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

Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are subsequently fair valued through profit or loss.

(b) Financial liabilities

Initial recognition and measurement

The Company’s financial liabilities include trade and other payables, loans and borrowings etc. All financial liabilities are recognized initially at
fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs, if any.

Offsetting of Financial Liabilities

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 recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

Derecognition of financial instruments

. The company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the ,

'' financial asset and the transfer qualifies for derecognition under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized
from the company''s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

viii) Operating Cycle

(a) The Company presents its assets and liabilities in the balance sheet based on current/noncurrent classification which is based upon the
Company''s operating cycle. The Company has identified twelve months as its operating cycle.

(b) An asset is treated as current when it is:

(i) Expected to be realized or intended to be sold or consumed in normal operating cycle;

(ii) Held primarily for the purpose of trading;

, (iii) Expected to be realized within twelve months after the reporting period; or

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

(c) A liability is treated as current when :

(i) It is expected to be settled in normal operating cycle;

(ii) It is held primarily for the purpose of trading;

(iii) It is due to be settled within twelve months after the reporting period, or

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

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

ix) Borrowing Costs

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

’x) Cash and cash equivalents ''

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of twelve
months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash
equivalents consist of cash and short-term deposits. ''

xi) Fair Value Measurement

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

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary 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:

(i) In the principal market for asset or liability, or

(ii) 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 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. ^L _

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

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair
value, maximising the use of relevant observable inputs and 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 material 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 material to the fair value measurement is directly or indirectly observable
Level 3- Valuation techniques for which the lowest level input that is material 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 reass ssing categorization (based on the lowest level input that is material to fair value measurement
as a whole) at the end of each reporting period.

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

xii) Rounding Off

These Stanalone financial statements are presented in Rs and all values are rounded to nearest Lakh ,Except when otherwise indicated. ''

2 Financial risk management

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and
controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions
and the Company''s activities.

a) Credit Risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks,
foreign exchange transactions and other financial instruments.

i) Trade Receivables _

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk
management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance
with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by Trade
Receivable buyout facility without recourse, letters of credit and other forms of security.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The
Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables and contract assets as
low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

b) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk
comprises three type of risks: Foreign exchange risk, Interest rate risk and other price risk.

Interest Rate Risk ''

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest
rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. The Company
mitigates this risk by regularly assessing the market scenario and finding appropriate fi nancial instruments like Interest Rate Swap.

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the
risk arising from the volatility in raw material prices and freight costs. The company’s commodity risk is managed centrally through well-established
trading operations and control processes. In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of
purchase.

c) Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining
sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to
meet the liquidity needs.

3 Capital Management

The Company’s objective with respect to capital management is to ensure continuity of business while at the same time provide reasonable returns to its
various stakeholders. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into
account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and
borrowings, both short term and long term. Net debt (total borrowings less investments and cash and cash equivalents) to equity ratio is used to monitor
capital.

5 Commitments and Contingencies

The Company is involved in certain appellate and judicial proceedings (including those described below) concerning matters arising in the normal course
of business. The proceedings in respect of these matters are in various stages. Management has assessed the possible obligations arising from such claims
against the Company, in accordance with the requirements of Indian Accounting Standard (Ind AS) 37 and based on judicial precedents, consultation with
lawyers or based on its historical experiences. Accordingly, Management is of the view that based on currently available information no provision in
addition to that already recognised in its financial statements is considered necessary in respect of the below:

6 Management Assesment on Tax Litigation .

During the year ,the business premises of the company had been searched by the GST authorities in the connection with some information in their _

possesion .As a result of the search ,the Gst authority had alleged that the company had claimed fruadlent ineligible credit of GST in earlier year and
accoridngly ,passsed an order under Section 74 of CGST Act, 2017 dated January 16 2025 directing the company to deposit the ineligible input credit of
GST amounting to Rs 96.14crores along with interest of Rs 98.42 crores and penalty aggregating to Rs 96.14 crores aggregating to total demand of Rs

290.70 Crores.

The managment is of strong view that the company had availed the Gst Input credit legibly and the allegation made by the Gst Authority are not ''

teneable.The company is in the process of seeking legal recourse agnist the demand and in the interim filed a rectified application before the Authorites
concerned requesting availment of said input credit and further based on legal advice, this liability will not crysatlize.Accordingly ,no provision for the
liability has been considered necessary by the managment in thses accounts.

10 Dividend

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The
remittance of dividends outside India is governed by Indian law on foreign exchange is also subject to witholding tax at applicable rates. The Company
has not paid any dividend during the year ended March 31,2024 and March 31, 2025.

12 Non-adjusting event

Pursuant to the requirements of Ind AS 10 - Events after the Reporting Period, the Company has evaluated subsequent events from the balance sheet
date till the date of approval of the financial statements. The following material non-adjusting event was identified:

Accrual of Interest on Outstanding Dues to MSME Creditors: 12.57 Lakhs

As per the provisions of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, interest is payable on delayed payments to
suppliers registered under the said Act. Between the balance sheet date (i.e., March 31, 2025) andthe date of approval of these financial statements (i.e.,
May 29, 2025), an amount of ^ 12.57 Lakhs has accrued as interest on such outstanding dues.

Since this interest has accrued after the reporting date and does not relate to conditions existing as on the balance sheet date, it is considered a non- ''
adjusting event as defined under Ind AS 10. Accordingly, no adjustment has been made in the financial statements for the year ended March 31, 2025.
However, the same has been disclosed in these notes for the sake of transparency and compliance.

27 Prior year''s figures have been regrouped, wherever necessary, to conform to the current year''s presentation.

28 The Company has not traded or invested in crypto currency or virtual currency during the year and previous year.

29 There are no borrowing costs to be capitalised as at 31 March 2025 (31 March 2024: ^ Nil).

As per our Report of even date attached

For KAPG & Associates For and on behalf of the Board of Directors

Chartered Accountants

(Karun Agarwal) (Ashok Kalra) (Sanjeev Chhaudha)

Partner Managing Director Director

FRN : 032569N, M.No. : 519869 (DIN 09024019) (DIN 08932721)

Place : New Delhi (Manoj Kumar Jangir) (Yogender Kumar Sharma)

Date : 29th May 2025 CFO & Director Company Secretary

UDIN: 25519869BMNYRP7560_(DIN 08069170)

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Mar 31, 2024

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market ( for example traded bonds) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable , the instrument is included in level 2

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iii)F air value of financial assets and liabilities measured at amortized cost

As of March 31,2024, March 31, 2023 the fair value of cash and bank balances, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amount largely due to the short term nature of these instruments.

For other financial assets that are measured at amortised cost, the carrying amounts approximate the fair value.

2 Financial risk management

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

a) Credit Risk

Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables).

Customer credit risk is managed in accordance with the Company’s established policy, procedures and controls relating to customer credit risk management. The Company assesses the credit quality of the counterparties taking into account their financial position, past experience and other factors.

. Credit risk is reduced to a significant extent if the projects(s) are funded by the Central and state Government and also by receiving pre-payments__

(including mobilization advances) and achieving project completion milestone within the contracted delivery schedule. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss allowance for trade receivables. Impairment, if any, is provided as per the respective credit risk of individual customer as on the reporting date.

b) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks: Foreign exchange risk, Interest rate risk and other price risk.

Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. The Company mitigates this risk by regularly assessing the market scenario and finding appropriate fi nancial instruments like Interest Rate Swap. ''

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs. The company’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of purchase.

c) Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to meet the liquidity needs.

3 Capital Management

The Company’s objective with respect to capital management is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done throughjudicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt (total borrowings less investments and cash and cash equivalents) to equity ratio is used to monitor capital.

Notes:

The above figures are net of provisions made by the Company. The Company is contesting these demands and the management believe that its position is likely to be upheld in the appellate process. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company’s financial position and results of operations.

Defined Benefit Plan

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn basic salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The following tables summaries the components of net benefit '' expense recognised in the statement of profit or loss and amounts recognised in the balance sheet:

4. The Company does not have any provisions for Corporate social responsibility expenses.

5. The Company does not have any ongoing projects as at 31st March, 2024 and 31st March, 2023.

9 Dividend

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The '' . , '' remittance of dividends outside India is governed by Indian law on foreign exchange is also subject to witholding tax at applicable rates.

10.1 Title deeds of immovable properties not held in the name of Company.

Details of all the immovable properties (other than properties where the Company is the leesee of and the lease agreements are duly executed in favour of the leesee) whose deeds are not held in the name of the Company:

NIL

10.2 There are no investment in properties

10.3 The Company has not revalued its Property,Plant and Equipment during the year.

10.4 The Company has not revalued its intangible assets during the year.

10.5 The Company had not granted any Loans or advances to promoters, directors, KMPs and the related parties (as defined underCompanies Act, 2013,) either severally or jointly with any other person

10.6 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of Benami Transactions Act,1988 (Earliers titled as Benami transactions (Prohibitions) Act,1988

10.8 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender

The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under section 530 of Companies ^{10 9} Act,1956

^r ... .... . .

10.10 No charges of satisfication are pending for registration with the Registrar of Companies (ROC)

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Mar 31, 2023

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fairvalue of financial instruments that are not traded in an active market ( for example traded bonds) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable , the instrument is included in level 2

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iii)F air value of financial assets and liabilities measured at amortized cost

As of March 31, 2023, March 31,2022 the fair value of cash and bank balances, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amount largely due to the short term nature of these instruments.

For other financial assets that are measured at amortised cost, the carrying amounts approximate the fair value.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

a) Credit Risk

Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables).

Customer credit risk is managed in accordance with the Company’s established policy, procedures and controls relating to customer credit risk management. The Company assesses the credit quality of the counterparties taking into account their financial position, past experience and other factors. Credit risk is reduced to a significant extent if the projects(s) are funded by the Central and state Government and also by receiving pre-payments (including mobilization advances) and achieving project completion milestone within the contracted delivery schedule. Outstanding customer receivables _ are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss allowance for trade receivables.

Impairment, if any, is provided as per the respective credit risk of individual customer as on the reporting date.

b) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks: Foreign exchange risk, Interest rate risk and other price risk.

Interest Rate Risk

. The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest _ rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. The Company mitigates this risk by regularly assessing the market scenario and finding appropriate fi nancial instruments like Interest Rate Swap.

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs. The company’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of

c) Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to meet the liquidity needs.

The Company’s objective with respect to capital management is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals andborrowings, both short term and long term. Net debt (total borrowings less investments and cash and cash equivalents) to equity ratio is used to monitor capital.

8 Dividend

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute dividend after deducting applicable taxes. The remittance of dividends outside India is governed by Indian law on foreign exchange is also subject to witholding tax at applicable rates.

9 Additonal Regulatory Information

9.1 Title deeds of immovable properties not held in the name of Company.

Details of all the immovable properties (other than properties where the Company is the leesee of and the lease agreements are duly executed in favour of the leesee) whose deeds are not held in the name of the Company:

NIL

9.2 There are no investment in properties

9.3 The Company has not revalued its Property,Plant and Equipment during the year. _

9.4 The Company has not revalued its intangible assets during the year.

9.5 The Company had not granted any Loans or advances to promoters, directors, KMPs and the related parties (as defined underCompanies Act, 2013,) either

severally or jointly with any other person ''

9.6 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of Benami Transactions Act,1988

_ (Earliers titled as Benami transactions (Prohibitions) Act,1988

9.7 The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the books of accounts

9.8 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender

9 9 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under section 530 of Companies

.⁹ Act,1956

9.10 No charges of satisfication are pending for registration with the Registrar of Companies (ROC)

10 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year

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Mar 31, 2021

(i)Fair Value Hierarchy

This section explains the judgements and estimates made in determining fair values of the financial instruments that are (a)recognised and measured at fair value and (b)measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market ( for example traded bonds) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable , the instrument is included in level 2

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iii)Fair value of financial assets and liabilities measured at amortized cost

As of March 31, 2021, March 31, 2020 and April 01, 2019, the fair value of cash and bank balances, trade receivables, other current financial assets, trade payables and other current financial liabilities approximate their carrying amount largely due to the short term nature of these instruments.

For other financial assets that are measured at amortised cost, the carrying amounts approximate the fair value.

2 Financial risk management

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk in the financial statements.

a) Credit Risk

Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily Trade Receivables).

Customer credit risk is managed in accordance with the Company’s established policy, procedures and controls relating to customer credit risk management. The Company assesses the credit quality of the counterparties taking into account their financial position, past experience and other factors. Credit risk is reduced to a significant extent if the projects(s) are funded by the Central and state Government and also by receiving pre-payments (including mobilization advances) and achieving project completion milestone within the contracted delivery schedule. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss allowance for trade receivables. Impairment, if any, is provided as per the respective credit risk of individual customer as on the reporting date.

b) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three type of risks: Foreign exchange risk, Interest rate risk and other price risk.

Interest Rate Risk

The Company is exposed to risk due to interest rate fluctuation on long term borrowings. Such borrowings are based on fixed as well as floating interest rate. Interest rate risk is determined by current market interest rates, projected debt servicing capability and view on future interest rate. The Company mitigates this risk by regularly assessing the market scenario and finding appropriate fi nancial instruments like Interest Rate Swap.

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs. The company’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of purchase.

c) Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to meet the liquidity

3 Capital Management

The Company’s objective with respect to capital management is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt (total borrowings less investments and cash and cash equivalents) to equity ratio is used to monitor capital.

6 First time adoption of Ind AS Transition to Ind AS

The accounting policies set out in Note 26C have been applied in preparing financial statements for the year ended March 31, 2021, the comparative information presented in these financial statements for the year ended March 31, 2020 and in preparation of an opening Ind AS balance sheet at April 1, 2019 (the Company''s date of transition). In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (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.

i) Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optionl exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Xf\f § mg §H '' | £\ fC| l-H

Ind AS optional exemptions

a) Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value of all its property, plant and equipment as recognised 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 de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Asset. Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.

Ind AS mandatory exceptions

b) Estimates

As per Ind AS 101, an entity’s estimates at the date of transition to Ind AS and for comparative period presented in the entity’s first Ind AS financial statements, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies. As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

On assessment of estimates made under the previous GAAP financial statements, the Company has concluded that there is no necessity to revise such estimates under Ind AS, as there is no objective evidence of an error in those estimates.

c) Derecognition of financial assets and financial liabilities

Ind AS 101 required a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occuring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements from a date of entity''s choosing, provided 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 these transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

d) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortized cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on the facts and circumstances that existed on the date of transition to Ind AS. ii) Reconciliation between previous GAAP and Ind AS

The following reconciliations provide the explanation and qualification of the differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101, First Time Adoption of Indian Accounting Standards.

(a) Reconciliation of Total Equity As at April 01, 2019 and March 31, 2020

(b) Reconciliation of Total Comprehensive Income for the year ended March 31, 2020

Interest due to suppliers registered under the MSMED Act and remaining unpaid as at year end

Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year

. . . .

Interest paid, under Section 16 of MSMED Act, to suppliers registered under the MSMED Act,

beyond the appointed day during the year

Interest paid, other than under Section 16 of MSMED Act, to supplier registered under the MSMED Act, beyond the appointment day during the year

Amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under the MSMED Act

Interest accrued and remaining unpaid at the end of each accounting year Amount of further interest remaining due and payable even in the succeeding years, until such date when the interest dues above are actually paid to the small enterprise, for the purpose of disallowance of a deductible expenditure under section 23 of MSMED Act

8 On March 11, 2020, the World Health Organization declared the novel strain of coronavirus disease (“COVID-19”) as a pandemic. The extent of COVID-19’s effect on the Company’s operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic. As a result of the uncertainty and difficulty to predict, adverse impact to the Company''s business may occur. Such potential impact is unknown at this time.

COVID-19 pandemic has been rapidly spreading throughout the world, including in India. The Government of India together with State Governments have taken significant measures to curb the spread of the virus including imposing mandatory lockdowns and restrictions in the activities. In view of the lockdown, the Company’s operations at all of its locations were temporarily closed down. The company’s Operations have since resumed in a staggered manner beginning May 2020 with adequate precautions being taken in accordance with Government guidelines, and the Company’s offices are operational as at the date of approval of the financial statements. Based on management evaluation, no material impact on the carrying amounts of current and non-current assets is expected. Further, based on the assessment, presently there are no significant concerns regarding liquidity and continuity of the business. The Company has assessed its existing internal controls and internal financial reporting processes and made appropriate modifications, as required, in view of the situation arising due to COVID-19 pandemic. The Company has also reviewed its contractual arrangement and does not expect any material impact on account of non-fulfilment of the obligations by any party. The management has considered various internal and external information available up to the date of approval of financial results in assessing the impact of COVID-19 pandemic in the financial statements and will continue to monitor changes of future economic conditions. Given the effect of COVID-19 pandemic on the overall economic activity, the eventual outcome of the impact may be different from that estimated as on the date of approval of these financial statements for the year ended March 31, 2021. Although the consequences of the COVID-19 are uncertain in the long term, the Company does not expect any material adverse effect on its financial condition or liquidity.