Materia] Accounting Policies:
A summary of the material accounting policies applied in the preparation of the Standalone .Financial Statements are as given below. These accounting
policies have been applied consistently to all periods presented in the Standalone Financial Statements.
(3.a) Property plant and equipment (PPE]
3,a.l. Initial recognition and measurement
Property, plant and equipments ('‘PPE") are measured at cost less accumulated depreciation/amortization and accumulated impairment losses. Cost includes
expenditure that is directly attributable to bringing the asset, inclusive of non-refundable taxes & duties, to the location and condition necessary for it to be
capable of operating in the manner intended by management
When parts of an item of property, plant and equipments have different useful lives, they are recognized separately.
Spare parts are capitalized when they meet the definition of PPE, i.e. when the Company intends to use these for a period exceeding 12 months.
On transition to IND AS, the Company has elected to continue with the carrying value of all of its PPE recognized, measured as per the previous GAAP and use
that carrying value as the deemed cost of the PPE.
3.a.2. Depreciation
Depreciation on Property, Plant and Equipment, including assets taken on lease, other than freehold land is charged based on Written down method on an
estimated useful life as prescribed in Schedule II to the Companies Act, 2013.
Depreciation on additions to/deductions from property, plant and equipment during the year is charged on pro-rata basis from/up to the date on which the
asset is available for use/disposed.
Depreciation/amortisation is not recorded on Intangible Assets underdevelopment until development and installation are complete and the asset is ready
for its intended use.
An item of Property, Plant and Equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of
the asset. Any gain or loss arising on the disposal or retirement of an item of Property, Plant and Equipment are determined as a difference between the sale
proceeds and the carrying amount of the asset and is recognized in the profit and loss. At the end of each reporting period, the Company reviews the carrying
amounts of tangible and Intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
(3.b) Revenue recognition:
With Effective 1st April, 2018, the Company has applied Ind AS 115 - Revenue from Contracts with Customers Pursuant to adoption of Ind AS 115, Revenue
from contracts with customers are recognized when the control over the goods or services promised in the contract are transferred to the customer. The
amount of revenue recognized depicts the transfer of promised goods and services to customers for an amount that reflects the consideration to which the
Company is entitled to in exchange for the goods or services.
3.b.l Interest Income: The Company recognises interest income using Effective Interest Rate (EIR) on all financial assets subsequently measured at
amortised cost EIR is circulated by considering all costs and other incomes attributable to acquisition of a financial assets.
3.b.2 Dividend:Dividend income from investments is recognised when the shareholders' right to receive payment has been established which is generally
when the shareholders approve the dividend.
3.b.3 Other revenue from operations:The Company recognises revenue from contracts with customers (other than financial assets to which Ind AS 109
‘Financial Instruments’ is applicable] based on a comprehensive assessment model as set out in Ind AS 115 'Revenue from contracts with customers'.
The Company identifies contracts] with a customer and its performance obligations under the contract, determines the transaction price and its
allocation to the performance obligations in the contract and recognises revenue only on satisfactory completion of performance obligations. Revenue
is measured at fair value of the consideration received or receivable.
(3.c) Financial Instruments;
3.C.1 Financial Assets:-
Recognition and initial measurement; -
Financial assets and financial liabilities are initially recognised when the Companytiecctnes a party to the contractual provisions of the instrument
and are measured initially at fair value adjusted for transaction cost
Subsequent measurement: *
Equity Instrument and Mutual Fund; - All equity Instrument and mutual funds within scope of Ind-AS 109 are measured at fair value. Equity
instrument and Mutual fund which are held for trading are classified as at fair value through profit & loss (FVTPL). For all other equity instruments,
the Company decided to classify them as at fair value through other comprehensive income (FVTOC1).
Debt instrument: - A 'debt instrument' is measured at the amortised cost if both the following conditions are met The assets are held within a
business model whose objective is to hold assets for collecting contractual cash flows, and contractual terms of the assets give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial measurement, such financial assets
are subsequently measured at amortised cost using the effective interest rate (EIR) method.
De- Recognition of financial Assets: -
A financial asset is primarily de-recognised when the rights to receive cash flows from the asset have expired or Company has transferred its right to
receive cash flow from the asset
Impairment of financial assets: -
The Company determines whether there has been a significant increase in the credit risk since initial recognition and if credit risk has increased
significantly, impairment loss is provided.
3.C.2 Financial Liabilities : -
Recognition and Initial measurement; *
All financial liabilities are recognised initially at fair value and transaction cost that is attributable to the acquisition of the Financial liabilities is also
adjusted. Financial liabilities are classified at amortised cost.
Subsequent measurement: •
Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest rate method.
De-recognition of financial liabilities
Financial liabilities are derecognized when the obligation under the liabilities are discharged or cancelled or expires. Consequently, write back of
unsettled credit balances is done on closure of the concerned project or earlier based on the previous experience of Management and actual facts of
each case and recognized in other Operating Revenues.
Further when an existing Financial liability is replaced by another from the same lender on substantially different terms, or the terms of existing
liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a
new liability. The difference in the respective carrying amounts is recognized in the Statement of Profit and Loss.
3.c.3 Off setting of financial Instrument: -
Financial assets and Financial liabilities are offset and the net amount is reported in the Balance Sheet if there is currently enforceable legal right to
offset the recognized amounts and there is an intention to settle on net basis, to realize the assets and settle the liabilities simultaneously.
3.C.4 Impairment of Financial Assets: -
Equity imctrnmpnts. Debt Instruments and Mutual Fund: - fn accordance with Ind-AS 109, the Company applies Expected Credit Loss model for
measurement and recognition of impairment loss for financial assets. Expected Credit Loss is the difference between all contractual cash flows that
are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive.
Other Financial Assets: - The Company determines whether there has been a significant increase in the credit risk since initial recognition and if
credit risk has increased significantly, impairment loss is provided.
3.C.5 Expected Credit Loss fECL); -
The Company recognizes loss allowances using the expected credit loss (ECL) model for the financial assets which are not fair valued through profit
or loss. Loss allowances on Loans with significant financing component is measured at an amount equal to 12-month ECL. For all other financial
assets, expected credit losses are measured at an amount equal to the lifetime 12-month ECL, unless there has been a significant increase in credit
risk from initial recognition in which case those are measured at lifetime ECL.
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future
economic conditions. The Company considers current and anticipated future economic conditions relating to industries the Company deals with and
the countries where it operates.
The amount of expected credit losses (or reversal) that is required to adjust the loss allowance at the reporting date to the amount that is required to
be recorded is recognized as an impairment gain or loss in condensed consolidated statement of comprehensive income.
(3.d) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise of cash at bank and on hand and short* term deposits with an original maturity of three months or
less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash
and short-term deposits, as defined above, net of outstanding bank overdrafts if they are considered an integral part of the Company's cash management.
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(3,e) Taxation
^"e Current Income tax: Provision for current tax is made as per the provisions of the Income Tax Act, 1961.The tax rates and tax laws used to compute
the amount are those that are enacted or substantively enacted, at the reporting date.Current income tax relating to items recognized outside profit
or loss is recognized outside profit or loss (either In other comprehensive income or in equity). Management periodically evaluates positions taken in
the tax returns with respect to applicable tax regulations which are subject to interpretation and establishes previsions where appropriate.
3.e.2 Deferred Tax: Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date, Deferred tax assets and liabilities are measured based on tax rates (and
tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is
recognized outside profit or loss (either in other comprehensive income or in equity).
(3.f) Employee benefits
Short Term Benefits
Short>term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognized for the amount expected to be paid under performance related pay 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 obligation can be estimated reliably.
Post-employment benefit
The Company's gratuity scheme is a defined benefit plan. The liability for gratuity Is determined on the basis of an actuarial valuation carried out at the
Balance Sheet date using the Projected Unit Credit Method. Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in accordance with the applicable accounting standards.
(3.g) Earning per share
Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any
bonus shares issued during the period and also after the Balance Sheet date but before the date the Ind AS financial statements are approved by the Board of
Directors.
For the purpose of calculating diluted earnings/ (loss) per share, the net profit/ (loss) for the period attributable to equity shareholders and the weighted
average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are
adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date.
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