NOTE 2: Statement on Significant Material Accounting Policies

The significant Material accounting policies applied by the company in the preparation of its financial statements are
listed below. Such accounting policies have been applied consistently to all the periods presented in these financial
statements, unless otherwise indicated.

1. Statement of Compliance:

These financial statements have been prepared in accordance with the Indian Accounting Standards (referred to as
"Ind AS") as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules as amended from time to time.

2. Basis of Preparation of Financial Statements:

These financial statements have been prepared in Indian Rupee (Rs. In lakhs) which is the functional currency of the
Company.

The financial statements have been prepared under the historical cost convention with the exception of certain assets
and liabilities that are required to be carried at fair values by Ind AS and inventories at Cost or NRV whichever is lower.
Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. Fair
value is the price that would be received to sell an asset or paid to transfer a liability in orderly transaction between
market participants at the measurement date.

3. Use of Estimates:

In preparation of the financial statements, the Company makes judgments, estimates and assumptions about the
carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the
associated assumptions are based on historical experience and other factors that are considered to be relevant.
Actual results may differ from these estimates.

Significant judgments and estimates relating to the carrying values of assets and liabilities include useful lives of
property, plant and equipment and intangible assets, impairment of property, plant and equipment, intangible assets
and investments, provision for employee benefits and other provisions, recoverability of deferred tax assets,
commitments and contingencies.

4. Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable,
taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government. Accordingly, it is excluded from revenue.

The specific recognition criteria described below must also be met before revenue is recognised.

i. Recognition of revenue from real estate projects

Revenue is recognized upon transfer of control of commercial units to customers, in an amount that reflects the
consideration the Company expects to receive in exchange for those commercial units. The Company shall
determine the performance obligations associated with the contract with customers at contract inception and
also determine whether they satisfy the performance obligation over time or at a point in time. In case of
commercial units, the Company satisfies the performance obligation and recognizes revenue at a point in time
i.e., upon handover of the commercial units.

ii. Recognition of revenue from Infrastructure projects

Revenue is recognized upon satisfaction of stipulated milestones specified in the contract with customers. The
amount of revenue recognized reflects the consideration expected to be received in exchange of satisfaction of
performance obligations. The company determines the performance obligations associated with the contract
at the beginning and decides whether they are satisfied over time or at a specific point in time. For turnkey
projects, revenue is recognized at a specific point in time, which is the satisfaction of stipulated milestones
specified in the contract with customers.

iii. Dividend income:

Revenue is recognised when the shareholders' or unit holders' right to receive payment is established, which is
generally when shareholder approve the dividend.

iv. Share in profits of partnership firm investments in LLP

The Company's share in profits from a firm & LLP where the Company is a partner, is recognised on the basis of
such firm's audited accounts, as per terms of the partnership deed.

v. Interest income

Interest income, including income arising from other financial instruments, is recognised using the effective
interest rate method.

5. Property, Plant and Equipment:

Property, plant and equipment are stated at their cost of acquisition/construction, net of accumulated depreciation
and impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met,
directly attributable cost of bringing the asset to its working condition for the intended use and initial estimate of
decommissioning, restoring and similar liabilities. Each part of an item of property, plant and equipment with a cost
that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components
for machinery. When significant parts of plant and equipment are required to be replaced at intervals, the Company
depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its
cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are
satisfied. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.
Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it
increases the future benefits from the existing asset beyond its previously assessed standard of performance.
Borrowing costs directly attributable to acquisition of property, plant and equipment which take substantial period of
time to get ready for its intended use are also included to the extent they relate to the period till such assets are ready
to be put to use.

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal
or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition
of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the statement of profit and loss when the property, plant and equipment is derecognised.

Expenditure directly relating to construction activity is capitalized. Indirect expenditure incurred during construction
period is capitalized 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 statement of profit and loss.

Advances paid towards the acquisition of property, plant and equipment outstanding at each balance sheet date is
classified as capital advances under other non-current assets.

6. Depreciation on Property Plant & Equipment:

Depreciation on property, plant and equipment provided as per cost model on Written down value basis over the
estimated useful lives of the asset as follows:

A. Plant and machinery - Civil construction

i. Concreting, Crushing, Piling Equipments : 12 years

ii. Earth-moving equipments : 9 Years

B. Computers : 3 years

C. Vehicles : 8 Years

Based on technical evaluation, the management believes that the useful lives given above best represents the
period over which the management expects to use the asset. Hence the useful lives of the assets are same as
prescribed under Part C of schedule II of Companies Act, 2013.

The estimated useful life of the assets is reviewed at the end of each financial year. The residual value of Property,
plant and equipment considered as 5% of the original cost of the asset. Depreciation on the assets added /
disposed of during the year is provided on pro-rata basis with reference to the month of addition / disposal.

7. Impairment (other than Financial Instruments)

At each balance sheet date, the Company reviews the carrying values of its property, plant and equipment and
intangible assets to determine whether there is any indication that the carrying value of those assets may not be
recoverable through continuing use. If any such indication exists, the recoverable amount of the asset is reviewed in
order to determine the extent of impairment loss (if any).

Where the asset does not generate cash flows that are independent from other assets, the Company estimates the
recoverable amount of the cash generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks 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 as and
when the carrying value of an asset exceeds its recoverable amount.

Where an impairment loss subsequently reverses, the carrying value of the asset (or cash generating unit) is
increased to the revised estimate of its recoverable amount so that the increased carrying value does not exceed
the carrying value that would have been determined had no impairment loss been recognized for the asset
(or cash generating unit) in prior years. The remaining reversal of an impairment loss is recognized in the statement
of profit and loss immediately.

8. Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial Assets and Financial Liabilities are recognized when the Company becomes a party to the contractual
provisions of the instrument. Financial assets and 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 and loss) are added to or deducted from the fair value
measured on initial recognition of financial asset or financial liability. The transaction costs directly attributable to
the acquisition of financial assets and financial liabilities at fair value through profit and loss are immediately
recognized in the statement of profit and loss.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a financial instrument and of
allocating interest income or expense over the relevant period. The effective interest rate is the rate that exactly
discounts future cash receipts or payments through the expected life of the financial instrument, or where
appropriate, a shorter period.

(a) Financial Assets:Cash and Bank Balances:

(I) Cash and cash equivalents - which includes cash in hand, deposits held at call with banks and other short-term
deposits which have maturities of less than one year from the date of such deposits.

(ii) Other bank balances - which includes balances and deposits with banks that are restricted for withdrawal and
usage.

Financial assets at amortized cost:

Financial assets are subsequently measured at amortized cost if these financial assets are held within a business
model whose objective is to hold these assets 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:

Financial assets are measured at fair value through other comprehensive income if these financial assets are held
within a business model whose objective is to hold these assets in order to collect contractual cash flows or to sell
these 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.

The Company in respect of equity investments (other than in subsidiaries, associates and joint ventures) which are
not held for trading has made an irrevocable election to presentation other comprehensive income subsequent
changes in the fair value of such equity instruments. Such an election is made by the Company on an instrument-
by- instrument basis at the time of initial recognition of such equity investments.

Financial asset not measured at amortized cost or at fair value through other comprehensive income is carried at
fair value through the statement of profit and loss.

Impairment of financial assets

Loss allowance for expected credit losses is recognized for financial assets measured at amortized cost and fair
value through other comprehensive income. The Company recognizes life time expected credit losses for all trade
receivables that do not constitute a financing transaction.

For financial assets whose credit risk has not significantly increased since initial recognition, loss allowance equal to
twelve months expected credit losses is recognized. Loss allowance equal to the lifetime expected credit losses is
recognized if the credit risk on the financial instruments has significantly increased since initial recognition.

De-recognition of financial assets

The Company de-recognizes a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to another
entity.

If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to
control the transferred asset, the Company recognizes its retained interest in the assets and an associated liability
for amounts it may have to pay.

If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the
Company continues to recognize the financial asset and also recognizes a collateralized borrowing for the
proceeds received.

(b) Financial Liabilities and Equity Instruments:

Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.

An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting
all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

Financial Liabilities

Trade and other payables are initially measured at fair value, net of transaction costs, and are subsequently
measured at amortized cost, using the effective interest rate method where the time value of money is significant.

Interest bearing bank loans, overdrafts and issued debt are initially measured at fair value and are subsequently
measured at amortized cost using the effective interest rate method. Any difference between the proceeds (net of
transaction costs) and the settlement or redemption of borrowings is recognized over the term of the borrowings
in the statement of profit and loss.

De-recognition of financial liabilities

The Company de-recognizes financial liabilities when, and only when, the Company's obligations are discharged,
cancelled or they expire.

Reclassification of financial assets

The company determines classification of financial assets and liabilities on initial recognition. After initial
recognition of financial assets and financial liabilities, a reclassification is made only if there is a change in the
business model for managing those assets. Changes to the business model are expected to be infrequent. The
company's senior management determines change in the business model as a result of external or internal
changes which are significant to the company's operations.

Such changes are evident to external parties. A change in the business model occurs when the company either
begins or ceases to perform an activity that is significant to its operations. If the group reclassifies financial assets, it
applies the reclassification prospectively from the reclassification date which is the first day of the immediately next
reporting period following the change in business model. The company does not restate any previously recognized
gains, losses (including impairment gains or losses) or interest.

The following table shows various reclassification and how they are accounted for :

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.

9. Inventory

Inventories are stated at the lower of Weighted average cost and net realizable value. Costs comprise direct
materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. Net realizable value is the price at which the inventories can be
realized in the normal course of business after allowing for the cost of conversion from their existing state to a
finished condition and for the cost of marketing, selling and distribution.

10. Cash and cash equivalents:

Cash and cash equivalents comprise cash at bank and in hand and short-term investments with a balance maturity
of three months or less.

11. Income Taxes:A. Current Tax

Current income tax is recognised based on the estimated tax liability computed after taking credit for
allowances and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets and
liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date.

B. Deferred Tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally
recognized for all taxable temporary differences. In contrast, deferred tax assets are only recognized to the
extent that it is probable that future taxable profits will be available against which the temporary differences can
be utilized. Current and deferred tax are recognized as an expense or income in the statement of profit and loss,
except when they relate to items credited or debited either in other comprehensive income or directly in equity,
in which case the tax is also recognized in other comprehensive income or directly in equity.