2 | MATERIAL ACCOUNTING POLICIES:_

2.1 Statement of Compliance

These 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 Companies Act,
2013, (the 'Act') and other relevant provisions of the Act.

2.2 Functional and presentation currency

These financial statements are presented in Indian
Rupees (INR), which is also the Company's functional
currency. All amounts have been presented Rs. in lakhs
rounded off to two decimal unless otherwise indicated.

2.3 Basis of Preparation & Presentation

These financial statements are prepared in accordance
with Indian Accounting Standards (Ind AS) under the
historical cost convention on the accrual basis except
for certain financial instruments which are measured at
fair values, the provisions of the Companies Act, 2013
('Act') (to the extent notified) and guidelines issued by the
Securities and Exchange Board of India (SEBI). The Ind AS
are prescribed under Section 133 of the Act read with Rule
3 of the Companies (Indian Accounting Standards) Rules,
2015 and Companies (Indian Accounting Standards)
Amendment Rules, 2016.

2.4 Interest in Joint Operations

A Joint operation is a joint arrangement whereby the
parties that have joint control of the arrangement
have rights to the assets and obligations for the
liabilities, relating to the arrangement. Joint control
is the contractually agreed sharing of control of an

arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the
parties sharing control.

When a Company undertakes its activities under joint
operations, of the Company as a joint operator recognizes
in relation to its interest in a joint operation:

1. I ts assets, including its share of any assets held
jointly,

2. Its liabilities, including its share of any liabilities
incurred jointly,

3. I ts revenue from the sale of its share arising from
the joint operation,

4. It share of the revenue from the joint operations, and

5. I ts expenses, including its share of any expenses
incurred jointly

2.5 Operating cycle for Current and non-current
classification

All the assets and liabilities have been classified as
current or non-current, wherever applicable, as per the
operating cycle of the Company as per Schedule III
to the Act. Operating cycle for the business activities
of the Company covers the duration of the project/
contract/ service including the defect liability period,
wherever applicable, and extends up to the realization of
receivables (including retention monies) within the credit
period normally applicable to the respective project.

2.6 Fair Value Measurement

The company measures certain financial instruments,
such as derivatives and other items in its financial
statements at fair value at each balance sheet date.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
within fair value hierarchy based on the low level of input
that is significant to the fair value measurement as a
whole:

Level 1 - Quoted prices (unadjusted) in active markets
for identical assets and liabilities.

Level 2 - Inputs other than quoted prices included within
level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (observable inputs).
Level 3 - Inputs for the assets and liabilities that are not
based on observable market data (unobservable inputs).

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 categorized
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 recognizes transfers between levels of
the fair value hierarchy at the end of the reporting period
during which the change has occurred.

2.7 Property, plant and equipment (PPE)

Items of property, plant and equipment are measured at
cost, less accumulated depreciation and accumulated
impairment losses, if any

Cost of an item of property, plant and equipment
comprises its purchase price, including import duties and
non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended
use and estimated costs of dismantling and removing the
item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and
equipment comprises the cost of materials and direct
labor, any other costs directly attributable to bringing

the item to working condition for its intended use, and
estimated costs of dismantling and removing the item
and restoring the site on which it is located.

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.

Any gain or loss on disposal of an item of property, plant
and equipment is recognized in profit or loss.

Subsequent expenditure is capitalized only if it is probable
that the future economic benefits associated with the
expenditure will flow to the Company.

Depreciation is calculated on cost of items of property,
plant and equipment in the manner and as per the useful
life prescribed under Schedule-II to the Act except the
below mentioned assets, and is generally recognized in
the statement of profit and loss. Depreciation on additions
(disposals) is provided on a pro-rata basis i.e. from (up to)
the date on which asset is ready for use (disposed of).

Depreciation method, useful lives and residual values
are reviewed at each financial year-end and adjusted if
appropriate.

For the Assets costing up to Rs. 5,000 are depreciated
fully in the year of purchase.

Where cost of a part of the asset ("asset component")
is significant to total cost of the asset and useful life of
that part is different from the useful life of the remaining
asset, useful life of that significant part is determined
separately and such asset component is depreciated
over its separate useful life.

Gains or losses arising from the retirement or disposal
of property, plant and equipment are determined as the
difference between the estimated net disposal proceeds
and the carrying amount of the asset and are recognised
in the income statement on the date of retirement or
disposal.

2.8 Capital Work-in-progress

Capital work-in-progress are carried at cost, comprising
direct cost, related incidental expenses and attributable
borrowing cost less refundable taxes.

2.9 Investment property

Investment properties are properties held to earn rentals
and/or for capital appreciation (including property under
construction for such purposes). Investment properties
are measured initially at cost, including transaction costs.
Subsequent to initial recognition, investment properties
are measured in accordance with the Ind AS 16's
requirement for cost model.

An investment property is derecognized upon disposal or
when the investment property is permanently withdrawn

from use and no further economic benefits expected
from disposal. Any gain or loss arising on de recognition
of the property is included in profit or loss in the period in
which the property is derecognized.

2.10 Intangible assets

Intangible assets are stated at original cost net of tax/
duty credits availed, if any, less accumulated amortization
and cumulative impairment. Intangible assets are
recognised when it is probable that the future economic
benefits that are attributable to the asset will flow to the
enterprise and the cost of the asset can be measured
reliably. Pre-operative expenses including administrative
and other general overhead expenses that are specifically
attributable to acquisition of intangible assets are
allocated and capitalized as a part of the cost of the
intangible assets. Intangible assets are amortized over
their useful life.

Investments are classified as 'held for sale’ when all of
the following criteria’s are met:

(i) decision has been made to sell,

(ii) the assets are available for immediate sale in its
present condition,

(iii) the assets are being actively marketed and

(iv) Sale has been agreed or is expected to be concluded
within 12 months of the Balance Sheet date.

Subsequently, such investments classified as held for
sale are measured at the lower of its carrying value and
fair value less impairment.

I nvestments in joint operations are recognised at cost
with adjustment to respective share of profit/loss.

2.12 Inventories

Raw Materials, construction materials and stores & spares
are valued at weighted average cost or net realizable value
whichever is less. Cost includes all charges in bringing
the materials to the place of usage, excluding refundable
duties and taxes.

2.13 Financial instruments

i. Classification and subsequent measurement
Financial assets

Financial asset is

• Cash / Equity Instrument of another Entity,

• Contractual right to -

a) Receive Cash / another Financial Asset
from another Entity, or

b) Exchange Financial Assets or Financial
Liabilities with another Entity under
conditions that are potentially favourable
to the Entity.

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

- Amortized cost;

- FVTPL

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 amortized 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.

Financial liabilities

Financial liability is Contractual Obligation to

• deliver Cash or another Financial Asset to
another Entity, or

• exchange Financial Assets or Financial
Liabilities with another Entity under conditions
that are potentially unfavorable to the Entity

Financial liabilities are classified as measured at
amortized 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
recognized in profit or loss. Other financial liabilities
are subsequently measured at amortized cost using
the effective interest method. Interest expense and
foreign exchange gains and losses are recognized in
profit or loss. Any gain or loss on de-recognition is
also recognized in profit or loss.

ii. De-recognition
Financial assets

The Company derecognizes 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 asset are transferred
or in which the Company neither transfers nor
retains substantially all of the risks and rewards
of ownership and does not retain control of the
financial asset.

Financial liabilities

The Company derecognizes a financial liability
when its contractual obligations are discharged or
cancelled, or expire.

The Company also derecognises a financial liability
when its terms are modified and the cash flows
under the modified terms are substantially different.
In this case, a new financial liability based on the
modified terms is recognized at fair value. The
difference between the carrying amount of the
financial liability extinguished and the new financial
liability with modified terms is recognized in profit or
loss.

iii. Impairment

Impairment of financial instruments

In accordance with Ind AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement
and recognition of impairment loss on the following
financial assets and credit risk exposure:

• Financial assets that are measured at
amortized cost

• Trade receivables

The Company follows 'simplified approach’ for
recognition of impairment loss allowance on trade
receivables which do not contain a significant
financing component. The application of simplified
approach does not require the company to track
changes in credit risk. Rather, it recognizes
impairment loss allowance based on lifetime ECLs at
each reporting date, right from its initial recognition.

Impairment of non-financial assets

The Company’s non-financial assets, other than
deferred tax assets are reviewed at each reporting
date to determine whether there is any indication of
impairment. If any such indication exists, then the
asset’s recoverable amount is estimated.

For impairment testing, assets that do not generate
independent cash inflows are grouped together into
cash-generating units (CGUs). Each CGU represents
the smallest group of assets that generates cash
inflows that are largely independent of the cash
inflows of other assets or CGUs.

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

The Company measures the lease liability at the present
value of the lease payments that are not paid at the
commencement date of the lease. The lease payments
are discounted using the interest rate implicit in the lease,
if that rate can be readily determined. If that rate cannot
be readily determined, the Company uses borrowing rate.
The lease payments shall include fixed payments, variable
lease payments, residual value guarantees, exercise price
of a purchase option where the Company is reasonably
certain to exercise that option and payments of penalties
for terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease, the
Company has elected not to apply the requirements of
Ind AS 116 Leases to short-term leases of all assets
that have a lease term of 12 months or less and leases
for which the underlying asset is of low value. The lease
payments associated with these leases are recognized as
an expense on a straight-line basis over the lease term.