3. MATERIAL ACCOUNTING POLICIES

(a) Basis of preparation

The Standalone Financial Statements have been prepared on going concern basis under the historical cost convention on accrual
basis except certain financial instruments that are measured in terms of relevant Ind AS at fair value at the end of each reporting
period.

Operating cycle for the business activities of the company covers the normal duration of the project/ contract/ service including
the defect obligation period, wherever applicable, and extends up to the realisation of receivables (including retention money)
within the credit period normally applicable to the respective project. In cases where the operating cycle cannot be identified
in the normal course, the same has been assumed to have duration of twelve months. Accordingly, all Assets and Liabilities have
been classified as current or non-current as per the operating cycle and other criteria set out in Ind AS 1 'Presentation of Financial
Statements' and Schedule III to the Companies Act, 2013.

The standalone financial statements are presented in Indian Rupees ('INR'), which is the Company's functional and presentation
currency and all amounts are rounded to the nearest Lakhs in two decimals (except otherwise indicated).

The Resolution Plan dated November 22, 2017 submitted by Mr. A K Lakhotia with 78.50% CoC voting share was approved under
IBC, 2016 and Orders dated April 18, 2018, March 11, 2022, September 13, 2023 and September 30, 2024 by Hon'ble National
Company Law Tribunal ("NCLT"), Kolkata, Orders dated August 16, 2019, May 23, 2023 and August 10, 2023 by Hon'ble National
Company Law Appellate Tribunal ("NCLAT") and Orders dated January 18, 2022, August 04, 2023 and September 25, 2023 by Hon'ble
Supreme Court were passed regarding approval and implementation of the Resolution Plan and the Resolution Plan has attained
finality. The Working Capital Consortium and other documents for implementation of the Financial Package/Approved Resolution
Plan by banks have been executed and the date of implementation of the Financial Package/Approved Resolution Plan has been
declared by the Banks as September 04,2024.

(b) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date under current market conditions.

The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe
inputs employed for such measurement:

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

(ii) Level 2: inputs other than quoted prices included within level 1 that are observable either directly or indirectly for the asset or
liability.

(iii) Level 3: inputs for the asset or liability which 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 who regularly review significant unobservable
inputs, valuation adjustments and fair value hierarchy under which the valuation should be classified.

(c) Accounting Estimates

The preparation of the standalone financial statements requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of standalone financial statements
and the results of operation during the reported period. Although these estimates are based upon management's best knowledge
of current events and actions, actual results could differ from these estimates which are recognised in the period in which they are
determined. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and
future periods if the revision affects both current and future years.

(d) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year,
are described below. The Company based its assumptions and estimates on parameters available when the standalone financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to
market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the standalone
financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the
standalone financial statements.

(e) Recoverability of claims

The Company has claims in respect of cost over-runs arising due to client responsibility delays, client's suspension of projects,
deviation in design, change in scope of work etc., which are at various stages of negotiation/ discussion with the clients/ arbitration
/litigation. The realisability of these claims are estimated by the Company based on contractual terms, historical experience with
similar claims as well as legal opinion obtained from internal and external experts, wherever necessary. Revenue in respect of claim
is recognised to the extent the Company is reasonably certain of their realisation. Realisation of above claims may be lower than
the claims recognized if the Company decides to settle the same out of court in future considering the substantial time involved in
litigation. Impact thereof will be considered in the year of such settlement.

(f) Property Plant and Equipment (PPE)

Property, plant and equipment are stated at cost of acquisition, construction and subsequent improvements thereto less
accumulated depreciation and impairment losses, if any. For this purpose, cost include deemed cost on the date of transition and
comprises purchase price of assets or its construction cost including duties and taxes, inward freight and other expenses incidental
to acquisition or installation and adjustment for exchange differences wherever applicable and any cost directly attributable
to bring the asset into the location and condition necessary for it to be capable of operating in the manner intended by the
management.

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured
reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in the Statement of Profit and Loss
when incurred.

Depreciation

Depriciation is recognised using straight - line method so as to write off the cost of assets (other than freehold land and capital work-
in-progress) less their residual values over their useful lives specified in Schedule II of the Companies Act, 2013, or in the case of assets
where the useful life was determined by technical evaluation, over the useful life so determined.

Depreciation on Property, Plant and Equipment commences when the assets are ready for their intended use. Based on above, the
estimated useful lives of assets for the current period are as follows.

* For these class of assets, based on internal assessment and technical evaluation, the company believes that the useful lives as given
above best represents the period over which the company expects to use these assets. Hence the useful lives for these assets are
different from the useful lives as prescribed under Part C of Schedule-II of the Companies Act, 2013.

Freehold Land is not depreciated.

Depreciation methods, useful lives and residual values are reviewed and adjusted as appropriate, at each reporting date.

(g) Derecognition of Tangible assets

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from its use or disposal.
Gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognised in the Statement of Profit and Loss.

(h) Inventories

Construction materials, stores & spares, fuel are valued at lower of cost and fair value (except scrap/ waste which are valued at net
realizable value*). Cost of inventories is ascertained on FIFO basis.

*Net realizable value is the estimated selling price in the ordinary course of business less estimated costs of completion and selling
costs. The cost is computed on weighted average basis.

Provision for obsolescence in inventories is made, whenever required.

(i) Financial assets and financial liabilities

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the
instruments.

Financial assets and financial 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 or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through
profit or loss are recognised immediately in the Statement of Profit and Loss.

The financial assets and financial liabilities are classified as current if they are expected to be realised or settled within operating
cycle of the company or otherwise these are classified as non-current.

The classification of financial instruments whether to be measured at Amortized Cost, at Fair Value through Profit and Loss (FVTPL)
or at Fair Value Through Other Comprehensive Income (FVTOCI) depends on the objective and contractual terms to which they
relate. Classification of financial instruments are determined on initial recognition.

(1) Cash and cash equivalents

All highly liquid financial instruments, which are readily convertible into determinable amounts of cash and which are subject to
an insignificant risk of change in value and are having original maturities of three months or less from the date of purchase, are
considered as cash equivalents. Cash and cash equivalents includes balances with banks which are unrestricted for withdrawal
and usage.

(2) Financial Assets and Financial Liabilities measured at amortised cost

Financial Assets held within a business 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 are measured at amortized cost.

The above Financial Assets and Financial Liabilities subsequent to initial recognition are measured at amortized cost using
Effective Interest Rate (EIR) method.

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts (including all fees and
points paid or received, transaction costs and other premiums or discounts) through the expected life of the Financial Asset
or Financial Liability to the gross carrying amount of the financial asset or to the amortised cost of financial liability, or, where
appropriate, a shorter period, to the net carrying amount on initial recognition.

(3) Financial Asset at Fair Value through Other Comprehensive Income (FVTOCI)

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a
business 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. Subsequent to initial recognition, they are measured at fair value and changes therein are
recognised directly in other comprehensive income.

(4) For the purpose of para (2) and (3) above, principal is the fair value of the financial asset at initial recognition and
interest consists of consideration for the time value of money and associated credit risk.

(5) Financial Assets or Liabilities at Fair value through profit or loss

Financial assets and liabilities which does not meet the criteria of amortised cost or fair value through other comprehensive
income are classified as Fair Value through Profit or loss. These are recognised at fair value and changes therein are recognized
in the Statement of Profit and Loss.

(6) Investment in Subsidiaries and associates are being carried at cost.

(7) Impairment of financial assets

The Company evaluates whether there is any objective evidence that financial assets including loan, trade and other
receivables are impaired and determines the amount of impairment allowance as a result of the inability of the parties to make
required payments. The Company bases the estimates on the ageing of the receivables, credit-worthiness of the receivables
and historical write-off experience and variation in the credit risk on year to year basis.

(8) Derecognition of financial instruments

The Company derecognizes a financial asset or a group of financial assets when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party.

On derecognition of a financial asset (except for equity instruments designated as FVTOCI), the difference between the asset's
carrying amount and the sum of the consideration received and receivable are recognized in statement of profit and loss.

On derecognition of assets measured at FVTOCI, the cumulative gain or loss previously recognised in other comprehensive
income is reclassified from equity to profit or loss as a reclassification adjustment.

Financial liabilities are derecognized if the Company's obligations specified in the contract expire or are discharged or cancelled.
The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is
recognized in Statement of Profit and Loss.

(j) Foreign Currency Transactions

Transactions in foreign currencies are translated into the functional currency at the exchange rates prevailing on the date of the
transactions. Foreign currency monetary assets and liabilities at the year-end are translated at the year-end exchange rates. Non¬
monetary items which are carried in terms of historical cost denominated in a foreign currency, are reported using the exchange
rate as at the date of transaction. The loss or gain thereon and also on the exchange differences on settlement of the foreign
currency transactions during the year are recognized as income or expense in the statement of profit and loss. Foreign exchange
gain/loss to the extent considered as an adjustment to Interest Cost are considered as part of borrowing cost.

(k) Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities.
Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classified as Securities