2. Summary of material accounting policies

2.1 Basis of preparation of standalone financial
statements

2.1.1 Statement of compliance

The standalone financial statements have been
prepared in accordance with Indian Accounting
Standards (Ind AS) as per the Companies (Indian
Accounting Standards) Rules, 2015 notified under
Section 133 of the Companies Act, 2013, (the Act'),
as amended, and other relevant provisions of the Act.

The standalone financial statements have been
authorised for issue by the Company's Board of
Directors on 29th May, 2025.

Current versus non-current classification

The Company presents assets and liabilities in
the Balance Sheet based on current/ non-current
classification in accordance with Schedule III,
Division II of Companies Act, 2013 notified by the
Ministry of Corporate Affairs.

An asset is classified as current when it is: a) Expected to
be realised or intended to be sold or consumed in normal
operating cycle, b) Held primarily for the purpose of
trading, c) Expected to be realised within twelve months
after the reporting period, or d) Cash or cash equivalent
unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting
period. All other assets are classified as non-current.

A liability is classified as current when: a) It is expected to
be settled in normal operating cycle, b) It is held primarily
for the purpose of trading, c) It is due to be settled within
twelve months after the reporting period, or d) There
is no unconditional right to defer the settlement of the
liability for at least twelve months after the reporting
period. All other liabilities are classified as non-current.

Based on the nature of products and the time between
the acquisition of assets for processing and their
realisation in cash and cash equivalents, the Company
has ascertained its operating cycle as 12 months for
the purpose of current and non- current classification
of assets and liabilities, except for projects business.
The projects business comprises long-term contracts
which have an operating cycle exceeding one year. For
classification of current assets and liabilities related to
projects business, the Company uses the duration of the
contract as its operating cycle.

All assets and liabilities have been classified as current
or non-current as per the Company's normal operating
cycle and other criteria set out in the Companies
(Accounts) Rules 2014.

2.1.2 Basis of measurement

The standalone financial statements have been
prepared on historical cost basis, except for the
following:

• certain financial assets and liabilities (including
derivatives instruments) - measured at fair value,

• defined benefit assets / liability - fair value
of plan assets less present value of defined
benefit obligations.

2.1.3 Functional currency

The standalone financial statements are presented
in Indian Rupees (Rupees or ?), which is the
Company's functional and presentation currency and
all amounts are rounded to the nearest million and
one decimals thereof, except as stated otherwise.

2.1.4 Use of estimates and judgements

In preparing these standalone financial statements,
management has made judgements, estimates
and assumptions that affect the application of
accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual
results may differ from these estimates.

Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting
estimates are recognised prospectively.

Assumptions and estimation uncertainties

Assumptions and estimation uncertainties that have
a significant risk of resulting in a material adjustment
recognised in the standalone financial statements
are as under:

1. Expected credit losses on trade receivables

The impairment provisions for trade receivables
disclosed are based on assumptions about
risk of default and expected loss rates. The
Company uses judgement in making these
assumptions and selecting the inputs to the
impairment calculation, based on the historical
experience, market conditions and credit ratings
available as well as forward looking estimates
at the end of each reporting period. Estimates
and judgements are continually evaluated.
Risk of Delay are based on market conditions,
applicable discount rate and other factors,
including expectations of future events that
may have a financial impact on the Company
and that are believed to be reasonable under
the circumstances.

2. Provision for employee benefits

The measurement of obligations and assets
related to defined benefit / other long term
benefits plans makes it necessary to use several
statistical and other factors that attempt to
anticipate future events. These factors include
assumptions about the discount rate, the rate
of future compensation increases, withdrawal,
mortality rates etc. The management has used
the past trends and future expectations in
determining the assumptions which are used in
measurements of obligations.

3. Provision for litigation

Due to uncertainty associated with litigations,
there is a possibility that on the conclusion,
the final outcome may differ. Though the
management determines the estimated
probability of outcome of any litigation based on
its assessment supported by technical advice
on the litigation matters, wherever required.

4. Property, plant and equipment

The charge in respect of periodic depreciation
is derived after determining an estimate of an
asset's expected useful life and the expected
residual value at the end of its life. The useful
lives and residual values of Company's assets
are determined by the management at the time
the asset is acquired and reviewed periodically,
including at each financial year end. The lives
are based on historical experience with similar
assets as well as anticipation of future events,
which may impact their life, such as changes in
technology.

5. Leases - Estimating the lease term and
incremental borrowing rate

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgment. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and the
applicable discount rate. The discount rate is
generally based on the incremental borrowing
rate specific to the lease being evaluated or for
a portfolio of leases with similar characteristics.

6. Estimation of cost to complete and provision
for contract losses

The estimation of total costs involves significant
judgment and is assessed throughout the
period of the contract to reflect any changes
based on the latest available information.
Provisions for estimated losses, if any, on
incomplete contracts are recorded in the period
in which such losses become probable based
on the estimated efforts or costs to complete
the contract.

7. Estimation of provision for warranty

The Company generally offers 18-24 months
warranties for its products. Management
estimates the related provision for future warranty
claims based on certain percentages of cost. The
provision is based on historical warranty claim
information, and global experience, provided for
on a best estimate basis.

The assumptions made in relation to the current
period are consistent with those in the prior
year. Factors that could impact the estimated
claim information include the success of the
Company's productivity and quality initiatives.

2.1.5 Measurement of fair values

A number of the accounting policies and disclosures
require measurement of fair values, for both financial
and non-financial assets and liabilities.

Fair values are categorised into different levels in a
fair value hierarchy based on the inputs used in the
valuation techniques as follows:

Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities.

Level 2: inputs other than quoted prices
included in Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that
are not based on observable market data
(unobservable inputs).

The Company has an established control framework
with respect to the measurement of fair values.
This includes a finance team that has overall
responsibility for overseeing all significant fair value
measurements, including Level 3 fair values, and
reports directly to the chief financial officer.

The finance team regularly reviews significant
unobservable inputs and valuation adjustments. If
third party information, is used to measure fair values,
then the finance team assesses the evidence obtained
from the third parties to support the conclusion that
these valuations meet the requirements of Ind AS,
including the level in the fair value hierarchy in which
the valuations should be classified.

Significant valuation issues are reported to the
Company's audit committee.

When measuring the fair value of an asset or a
liability, the Company uses observable market data
as far as possible. If the inputs used to measure the
fair value of an asset or a liability fall into different
levels of the fair value hierarchy, then the fair
value measurement is categorised in its entirety
in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire
measurement.

The Company recognises transfers between levels
of the fair value hierarchy at the end of the reporting
period during which the change has occurred.

Further information about the assumptions made
in measuring fair values used in preparing these
standalone financial statements is included in the
respective notes.

2.2 Property, plant and equipment and depreciation

Items of property, plant and equipment are stated at
cost less accumulated depreciation and accumulated
impairment losses, if any. Cost includes purchase price
including import duties and non refundable purchase
taxes after deducting trade discounts and rebates, if
any, directly attributable cost of bringing the item to its
location and condition for its intended use and estimated
costs of dismantling and removing the item and restoring
the site on which it is located. Special tools are capitalised
as plant and equipment.

Freehold land is carried at historical cost.

If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components) of
property, plant and equipment.

Gains or losses arising from disposal or retirement of
property, plant and equipment are measured as the
differences between the net disposal proceeds and the
carrying amount of the property, plant and equipment
and are recognised in the statement of profit and loss.

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

amount of any component accounted for as a separate
asset is derecognised when replaced. All other repairs and
maintenance are charged to the statement of profit and
loss during the reporting period in which they are incurred.

The cost of property, plant and equipment not ready
for their intended use is recorded as capital work-in¬
progress before such date. Cost of construction that
relate directly to specific property, plant and equipment
and that are attributable to construction activity in
general and can be allocated to specific property, plant
and equipment are included in capital work-in-progress.

Depreciation methods, estimated useful lives and
residual value:

Property, plant and equipment, other than land, are
depreciated on a pro-rata basis on Straight Line Method
(SLM) using the rates arrived based on the useful lives
of assets specified in Part C of Schedule II thereto of the
Companies Act, 2013 or useful lives of assets estimated
by the management based on technical advice in cases
where a useful life is different than the useful lives indicated
in Part C of Schedule II of the Companies Act, 2013, which
represents the period over which management expects to
use these assets, as follows:

2.3 Intangible assets and amortisation

Intangible assets are stated at acquisition cost, net of
accumulated amortisation and accumulated impairment
losses, if any. Intangible assets acquired separately are
measured on initial recognition at cost. After initial recognition,
intangible assets are carried at cost less any accumulated
amortisation and accumulated impairment losses, if any.

Gains or losses arising from derecognition of assets are
measured as the differences between the net disposal
proceeds and the carrying amount of the assets and are
recognized in the statement of profit and loss when the
asset is derecognized.

Amortisation methods, estimated useful lives and
residual value:

Intangible assets are amortised on a straight line basis
over their estimated useful lives.

The amortisation period, residual value and the
amortisation method are reviewed at least at each
financial year end. If the expected useful life of the asset
is significantly different from previous estimates, the
amortisation period is adjusted prospectively.

The Company amortises intangible assets with finite useful
life using the straight-line method over the following periods:

Where a company estimated the useful life of an asset on
a single shift basis at the beginning of the year but use
the asset on double or triple shift during the year, then
the depreciation expense would increase by 50 or 100
per cent as the case may be for that period.

Freehold land is not depreciated. Leasehold improvements
are amortised over the period of the lease or the estimated
useful life, whichever is lower.

Asset's residual values and useful lives are reviewed
at each financial year end, considering the physical
condition of the assets and benchmarking analysis or
whenever there are indicators for review and adjusted
prospectively.

2.4 Leases

The Company lease asset classes consist of leases
for buildings, plant and equipment and vehicles. The
Company assesses whether a contract contains a lease,
at inception of a contract. 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. To assess whether a contract conveys
the right to control the use of an identified asset, the
Company assesses whether: (i) the contract involves
the use of an identified asset (ii) the Company has
substantially all of the economic benefits from use of
the asset through the period of the lease and (iii) the
Company has the right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements in

which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases.
For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease. Certain
lease arrangements includes the options to extend or
terminate the lease before the end of the lease term. ROU
assets and lease liabilities includes these options when it
is reasonably certain that they will be exercised.

The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.

Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.

The lease liability is initially measured at amortized cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable, using
the incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are remeasured with a
corresponding adjustment to the related right of use asset
if the Company changes its assessment if whether it will
exercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the Balance Sheet.

2.5 Impairment of non financial assets

Assessment is done at each Balance Sheet date as to
whether there is any indication that an asset (property,
plant and equipment and intangible) may be impaired.
For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows

from continuing use that are largely independent of the
cash inflows from other assets or groups of assets,
is considered as a cash generating unit. If any such
indication exists, an estimate of the recoverable amount
of the asset/cash generating unit is made. Assets whose
carrying value exceeds their recoverable amount are
written down to the recoverable amount. Recoverable
amount is higher of an asset's or cash generating unit's
(CGU) fair value less cost of disposal and its value in use.
Value in use is the present value of estimated future cash
flows using a pre-tax discount rate that reflects current
market assessment of the time value of money and risk
specific to the CGU (or the asset) expected to arise from
the continuing use of an asset and from its disposal at
the end of its useful life.

Assessment is also done at each Balance Sheet date as
to whether there is any indication that an impairment loss
recognised for an asset in prior accounting periods may
no longer exist or may have decreased. Such a reversal is
made only to the extent that the asset's carrying amount
does not exceed the carrying amount that would have
been determined, net of depreciation or amortisation, if
no impairment loss had been recognised.

After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.

2.6 Cash and cash equivalents

In the cash flow statement, cash and cash equivalents
include cash on hand, demand deposits with banks,
other short-term highly liquid investments with original
maturities of three months or less that are readily
convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

2.7 Inventories

Inventories are stated at the lower of cost and net
realisable value. The cost of inventories comprise cost
of purchase (net of recoverable taxes where applicable),
and other cost incurred in bringing the inventories to their
respective present location and condition. The cost of
various categories of inventories is arrived at as follows:

Raw materials and components - at cost determined
on the weighted average method.

Packing materials, loose tools and consumables, being
immaterial in value terms, and also based on their
purchase mostly on need basis, are expensed to the
statement of profit and loss at the point of purchase.

Contracts work-in-progress (herein referred to as
"work in progress") is valued at cost. Cost includes
direct materials, labour and appropriate proportion of
overheads including depreciation.

Net realisable value is the estimated selling price in the
ordinary course of business less estimated costs of
completion and estimated costs necessary to make the sale.

Provision for obsolescence is made, wherever necessary.

The comparison of cost and net realisable value is made
on an item-by-item basis.

2.8 Employee benefits

(i) Short-term employee benefits

Short-term employee benefit obligations are
measured on an undiscounted basis and are
expensed as the related service is provided. A
liability is recognised for the amount expected
to be paid e.g., under short-term cash bonus, if
the Company has a present legal or constructive
obligation to pay this amount as a result of past
service provided by the employee, and the amount
of obligation can be estimated reliably.

(ii) Post-employment obligations
Defined contribution plans

Provident fund: Contribution towards provident
fund for certain employees is made to the
regulatory authorities, where the Company has no
further obligations. Such benefits are classified as
defined contribution schemes as the Company does
not carry any further obligations, apart from the
contributions made on a monthly basis.

Superannuation: Contribution to Superannuation
fund is charged to the statement of profit and loss
on accrual basis. The Company pays contribution
to a trust, which is maintained by Life Insurance
Corporation of India to cover Company's liabilities
towards Superannuation. Such benefits are
classified as defined contribution plan as the
Company does not carry any further obligations,
apart from the contributions made on monthly basis.

Defined benefit plans

For defined benefit plans, the amount recognised
as 'Employee benefit expenses' in the Statement
of Profit and Loss is the cost of accruing employee

benefits promised to employees over the year
and the costs of individual events such as past/
future service benefit changes and settlements
(such events are recognised immediately in the
Statement of Profit and Loss). The amount of net
interest expense calculated by applying the liability
discount rate to the net defined benefit liability or
asset is charged or credited to 'Finance costs' in
the Statement of Profit and Loss. Any differences
between the expected interest income on plan
assets and the return actually achieved, and any
changes in the liabilities overthe year due to changes
in actuarial assumptions or experience adjustments
within the plans, are recognised immediately in
'Other comprehensive income' and subsequently
not reclassified to the Statement of Profit and Loss.

The defined benefit plan surplus or deficit on the
Balance Sheet date comprises fair value of plan assets
less the present value of the defined benefit liabilities
using a discount rate by reference to market yields on
Government bonds at the end of the reporting period.

Provident Fund: Contributions towards provident
fund for certain employees are made to a Trust
administered by the Company. Such benefits are
classified as defined benefit plan. The Company's
liability is actuarially determined (using the Projected
Unit Credit method) at the end of the year and any
shortfall in the fund size maintained by the Trust set
up by the Company is additionally provided for.

Gratuity liability is a defined benefit obligation and is
provided on the basis of its actuarial valuation based
on the projected unit credit method made at each
Balance Sheet date. The Company funds gratuity
benefits for its employees within the limits prescribed
under The Payment of Gratuity (Amendment) Act,
2018 through contributions to a Scheme administered
by the Life Insurance Corporation of India ('LIC').

The Ministry of Corporate Affairs issued
amendments to Ind AS 19, 'Employee Benefits', in
connection with accounting for plan amendments,
curtailments and settlements requiring an entity to
determine the current service costs and the net
interest for the period after the remeasurement
using the assumptions used for the remeasurement;
and determine the net interest for the remaining
period based on the remeasured net defined benefit
liability or asset. The adoption of amendment to
Ind AS 19 did not have any material impact on the
standalone financial statements of the Company.

(iii) Other long-term employee benefit obligations

Compensated absences: The employees can
carry-forward a portion of the unutilised accrued
compensated absences and utilise it in future
service periods or receive cash compensation on
termination of employment. Since, the compensated
absences do not fall due wholly within twelve months
after the end of the period in which the employees
render the related service and are also not expected
to be utilised wholly within twelve months after the
end of such period, the benefit is classified as a
long-term employee benefit.

The Company records an obligation for such
compensated absences in the period in which the
employee renders the services that increase their
entitlement. The obligation is measured on the basis
of independent actuarial valuation using the projected
unit credit method on the Balance Sheet date.

(iv) Termination benefits

Termination benefits are expensed at the earlier
of when the Company can no longer withdraw the
offer of those benefits and when the Company
recognises costs for a restructuring. If benefits are
not expected to be settled wholly within 12 months
of the reporting date, then they are discounted.

2.9 Foreign currency

(i) Foreign currency transactions

Transactions in foreign currencies are translated into
the respective functional currencies of Company at
the exchange rates at the dates of the transactions
or an average rate if the average rate approximates
the actual rate at the date of the transaction. Foreign
exchange gains and losses from settlement of these
transactions are recognised in the Statement of
Profit and Loss.

Monetary assets and liabilities denominated in
foreign currencies are translated into the functional
currency at the exchange rate at the reporting
date. Non-monetary assets and liabilities that
are measured at fair value in a foreign currency
are translated into the functional currency at the
exchange rate when the fair value was determined.
Non-monetary assets and liabilities that are
measured based on historical cost in a foreign
currency are translated at the exchange rate at the

date of the transaction. Related expense or income
are recognised using the same exchange rate.
Exchange differences are recognised in statement
of profit and loss.

(ii) Financial instruments

a. Recognition and initial measurement

Trade receivables are initially recognised when
they are originated. All other financial assets
and financial liabilities are initially recognised
when the Company becomes a party to
the contractual provisions of the financial
instrument. However, trade receivables that do
not contain a significant financing component
are measured at transaction price.

A financial asset or financial liability is initially
measured at fair value plus, for an item not
at fair value through profit and loss (FVTPL),
transaction costs that are directly attributable
to its acquisition or issue.

b. Classification and subsequent measurement
Financial assets

On initial recognition, a financial asset is
classified as measured at

amortised cost;

FVOCI (fair value though other
comprehensive income);

FVTPL (fair value through profit and loss)

Financial assets are not reclassified subsequent
to their initial recognition, except if and in the
period the Company changes its business
model for managing financial assets.

A financial asset is measured at amortised cost
if it meets both of the following conditions and
is not designated as at FVTPL:

the asset is held within a business model
whose objective is to hold assets 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.

On initial recognition of an equity investment
that is not held for trading, the Company may
irrevocably elect to present subsequent changes
in the investment's fair value in OCI. This election
is made on an investment-by-investment basis.

All financial assets not classified as measured at
amortised cost or FVOCI as described above are
measured at FVTPL. This includes all derivative
financial assets. On initial recognition, the
Company may irrevocably designate a financial
asset that otherwise meets the requirements to
be measured at amortised cost or at FVOCI as
at FVTPL if doing so eliminates or significantly
reduces an accounting mismatch that would
otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the
objective of the business model in which a
financial asset is held at a portfolio level because
this best reflects the way the business is managed
and information is provided to management. The
information considered includes:

the stated policies and objectives for
the portfolio and the operation of those
policies in practice. These include whether
management's strategy focuses on earning
contractual interest income, maintaining
a particular interest rate profile, matching
the duration of the financial assets to
the duration of any related liabilities or
expected cash outflows or realising cash
flows through the sale of the assets;

how the performance of the portfolio is
evaluated and reported to the Company's
management;

the risks that affect the performance of the
business model (and the financial assets
held within that business model) and how
those risks are managed;

the frequency, volume and timing of sales
of financial assets in prior periods, the
reasons for such sales and expectations
about future sales activity.

Financial assets that are held for trading or are
managed and whose performance is evaluated
on a fair value basis are measured at FVTPL.

Financial assets: Assessment whether
contractual cash flows are solely payments of
principal and interest

For the purposes of this assessment, 'principal'
is defined as the fair value of the financial asset
on initial recognition. 'Interest' is defined as
consideration for the time value of money and
for the credit risk associated with the principal
amount outstanding during a particular period
of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative
costs), as well as a profit margin.

In assessing whether the contractual cash flows
are solely payments of principal and interest,
the Company considers the contractual terms
of the instrument. This includes assessing
whether the financial asset contains a
contractual term that could change the timing
or amount of contractual cash flows such that
it would not meet this condition. In making this
assessment, the Company considers:

contingent events that would change the
amount or timing of cash flows;

terms that may adjust the contractual
coupon rate, including variable interest
rate features;

prepayment and extension features; and

terms that limit the Company's claim to
cash flows from specified assets (e.g.
non-recourse features).

Financial liabilities: Classification, subsequent
measurement and gains and losses

Financial liabilities are classified as measured
at amortised cost or FVTPL. A financial liability
is classified as at FVTPL if it is classified as
held-for-trading, or it is a derivative or it is
designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any
interest expense, are recognised of profit and
loss. Other financial liabilities are subsequently
measured at amortised cost using the effective
interest method. Interest expense and foreign
exchange gains and losses are recognised in
profit and loss. Any gain or loss on derecognition
is also recognised in profit and loss.

c. Impairment of financial assets

The Company recognises impairment loss on
trade receivables using lifetime expected credit
loss model, which involves use of historical
credit loss experience as permitted under Ind
AS 109. In case of other assets, the Company
determines if there has been a significant
increase in credit risk of the financial asset
since initial recognition. If the credit risk of
such assets has not increased significantly, an
amount equal to 12-month ECL is measured
and recognised as loss allowance. However,
if credit risk has increased significantly, an
amount equal to lifetime ECL is measured and
recognised as loss allowance.

d. Derecognition
Financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers
the rights to receive the contractual cash flows
in a transaction in which substantially all of the
risks and rewards of ownership of the financial

by changes in deferred tax assets and liabilities attributable
to temporary differences and to unused tax losses.

Current tax

Current tax comprises the expected tax payable or
receivable on the taxable income or loss for the year and
any adjustment to the tax payable or receivable in respect
of previous years. The amount of current tax reflects the
best estimate of the tax amount expected to be paid or
received after considering the uncertainty, if any, related
to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting
date. The Company has used judgement, to determine
whether each tax treatment should be considered
separately or whether some can be considered together.
The decision based on the approach which provides
better predictions of the resolution of the uncertainty.
The Company has assumed that the taxation authority
will have full knowledge of all relevant information while
examining and has considerred the probability of the
relevant taxation authority accepting the tax treatment
and the determination of taxable profit (tax loss), tax
bases, unused tax losses, unused tax credits and tax
rates would depend upon the probability.

Current tax assets and current tax liabilities are offset
only if there is a legally enforceable right to set off the
recognised amounts, and it is intended to realise the asset
and settle the liability on a net basis or simultaneously.

Appendix C to Ind AS 12 clarifies the accounting for
uncertainties in income taxes. The interpretation is to
be applied to the determination of taxable profit (tax
loss), tax bases, unused tax losses, unused tax credits
and tax rates, when there is uncertainty over income tax
treatments under Ind AS 12. The adoption of Appendix
C to Ind AS 12 did not have any material impact on the
standalone financial statements of the Company.

Deferred tax

Deferred tax is recognised in respect of temporary
differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the
corresponding amounts used for taxation purposes.
Deferred tax is also recognised in respect of carried
forward tax losses and tax credits.

Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses only if it is
probable that future taxable amounts will be available to
utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset current period tax
assets and liabilities and when the deferred tax balances
relate to the same taxation authority. Current period tax
assets and tax liabilities are offset where the entity has
a legally enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and settle the
liability simultaneously.

Current period tax and deferred tax is recognised in the
statement of profit and loss, except to the extent that
it relates to items recognised in other comprehensive
income or directly in equity. In this case, the tax is also
recognised in other comprehensive income or directly in
equity, respectively.

Deferred tax assets are recognised to the extent that it
is probable that future taxable profits will be available
against which they can be used. Therefore, in case of
a history of recent losses, the Company recognises
a deferred tax asset only to the extent that it has
sufficient taxable temporary differences or there is
convincing other evidence that sufficient taxable profit
will be available against which such deferred tax asset
can be realised. Deferred tax assets - unrecognised or
recognised, are reviewed at each reporting date and are
recognised/ reduced to the extent that it is probable/ no
longer probable respectively that the related tax benefit
will be realised.

2.11 Borrowing costs

Borrowing costs include interest and other costs
(including exchange differences relating to foreign
currency borrowings to the extent that they are
regarded as an adjustment to interest costs) incurred in
connection with the borrowing of funds. Borrowing costs
directly attributable to the acquisition or construction of
an asset which necessarily takes a substantial period of
time to get ready for its intended use are capitalized as
part of the cost of that asset. Other borrowing costs are
recognised in the period in which they are incurred.

2.12 Revenue from contracts with customer

Revenue is recognized, when or as control over distinct
goods or services is transferred to the customer; i.e.
when the customer is able to direct the use of the
transferred goods or services and obtains substantially
all of the remaining benefits, provided a contract with
enforceable rights and obligations exists and amongst
others collectability of consideration is probable, taking
into account customer's credit- worthiness and towards

the satisfaction of the performance obligations which is
measured at the amount of transaction price allocated to
each performance obligations.

Amounts due in respect of price escalation claims
including those linked to published indices and/or
contract modification including variation in contract
work are recognized, only if the contract allows for such
claims or variations and /or there is evidence that the
customer has accepted it and it is probable that these
will result in revenue and are capable of being reliably
measured. Variable consideration is included in the
transaction price if it is highly probable that a significant
reversal of revenue will not occur once uncertainties are
resolved. If a contract contains more than one distinct
good or service, the transaction price is allocated to
each performance obligation. Revenue is recognized for
each performance obligation either at a point in time or
over time. Amounts disclosed as revenue are exclusive
of Goods and Service Tax and net of returns, trade
allowances, rebates and amounts collected on behalf of
third parties.

Revenue from construction contracts:

Revenues are recognized over time under the percentage-
of-completion method, based on the percentage of costs
incurred to date compared to total estimated costs.
An expected loss on the contract is recognized as an
expense immediately. The differences between the timing
of our revenue recognized (based on costs incurred) and
customer billings (based on contractual terms) results in
changes to revenue in excess of billing or billing in excess
of revenue. The percentage-of-completion method
places considerable importance on accurate estimates
to the extent of progress towards completion and may
involve estimates on the scope of deliveries and services
required for fulfilling the contractually defined obligations.
The estimation of total costs involves significant judgment
and is assessed throughout the period of the contract
to reflect any changes based on the latest available
information. Under the percentage-of-completion
method, changes in estimates may lead to an increase or
decrease of revenue.

Revenue from sale of services

Sale of services (other than long term contracts) are
recognized in the period in which the services are rendered.

Revenue from sale of products

Revenues are recognized at a point in time when control
of the products passes to the buyer.

Liquidated damages/penalties are provided for, based
on management's assessment of the estimated liability,
as per contractual terms, technical evaluation, past
experience and/or acceptance

Other operational revenue represents income earned
from the activities incidental to the business and is
recognised when the right to receive the income is
established as per the terms of contract.

2.13 Other income / other operating income

Interest income is recognised using the effective interest
method. The 'effective interest method' is the rate that
exactly discounts estimated future cash receipts through
the expected life of the financial instrument to the gross
carrying amount of the financial asset.

Export benefits are accounted for to the extent there is
reasonable certainty of utilisation/realisation of the same.

Rental income is recognized on a straight line basis over
the term of the relevant lease.

Insurance claims are accounted for when it is actually
received or virtually certain that the claim amount will
be received, usually upon approval or acceptance of the
claim by the insurance company.

2.14 Earnings per share

a) Basic earnings per share is calculated by dividing the
net profit or loss after tax for the year attributable to
equity shareholders by the weighted average number
of equity shares outstanding during the year.

b) For the purpose of calculating diluted earnings
per share, the net profit or loss after tax for the
period attributable to equity shareholders and the
weighted average number of shares outstanding
during the period is adjusted for the effects of all
dilutive potential equity shares.