Significant Accounting Policies
1.1 Statrimnnt of compliance and basis of preparation of financial statements
The Company seeks to build on its legacy in the steel industry by put suing two key strategic objectives: transforming steel from a commodity Into a value-added service offering and leveraging the Company's expertise in the production of high-quality '<>ng sred products In addition, the Company intends to diversify ts business portfofco by establishing a venture studio model focusodon creating incubating and scing businesses from the giound up, while making strategic investments in high potential stmt-ups
Pursuant to the order -xed 23 October 202*. the Hon tte National Company Law Tribunal {NCLT), Hyderabad Bench, approved dir- Resolution Plan For implementation of the approved Resnkiron Plan, the Resolution Applicant incorporated a Special Purpose Vehicle (SPV). Pieca Structures Private limited, presently known as Neueon Consol Private limited
Foftowwg implementation ol the Resolution Plan, the Board of Directors was reconstituted in compliance with the provisions of the Companies Act. 2013. me SEBI (Listing Obligations arid Disclosure Roqu rements) Regulations. 2015 and the approved Resolution Plan, ensuring nn appropoate mix Df Executive Non-Executive Women and Independent Directors.
in accordance with me approved Resolution Plan, the Board, at its meeting held on 9 December 2024. approved the reduction of die lace value of the Company's equity shams from flO each to Re 1 each, faulting m n corresponding reduction nf me paid-up equity share capital from f 56,5-1.45,520 to f 5.65,44.552
Subsequently on 7 November 2025, the Board slotted 50.80 00.968 equity shares of Re. 1 each to Neueon Consol Prorate United the Resolution Appkcnnl and new Ptomoler. m occoidancc willi the approved Resolution Plan and applicable SEBI regulations
Tfie Company received approvals trom BSE Limited and the National Stock Exchange of India Limited for recommencement >1 trading in Its equity sham wlih effect trom 23 December 2025 under ihe trading symbol "NEUEON"
1.2 Basis of preparation of financial statements
The linancial statements have been prepared m accordance with Indian Accounting Standards (Ind AS) as notified by Ministry of Corporate Anars. Government of India vide Notification dated February 16, 2015 Accounting policies have been •ijjpfced consistently to all periods presented in ih-se financial statements Tlie Financial Statements are prepared under 'vstO'ical cost convention from me bocks o' accounts maintained undei accrual basis except for certain financial instruments, which are measured at fair value anil m accordance v/.ih the Indian Accounting Standards presenbed under the Companies Act, 2013.
These flnanca) statements ore presort too «n Indian rupees, me nanonni currency of India, which « the functional currency of the Company. All amounts included »n the financial statements are reported tn Indian rupees (m Rupees) except number of equity shares and per share data unless olherv/ise stated
1.3 Use of estimates and judgement
The prcparatqn of financial statements requires judgements, estimates and assumptions to bo mode that affect tfie reported amount of assets and kafcfities. cksclosure ol contingent iiabiHies on tfie date of financial statements and the repeated amount of revenues anil e»ponses duing the reporting period Difference between the actual result-, and estimates are recognised in the period in which the results are knowivVnntcr.a'-sed
1.4 Borrowing costs
The Company captahses borrowing costs that arc directly annb viable to mo acquisition construction or prooua-on of qualify, ng asset as a parr of the exist of the asset
The Company recognises other borrowing costs as an expense in the period m which it incurs them A qualifying asset is an asset that necessanfy takes a substantial penod of time to get ready lor its intended use or safe
1.5 Inventories
inventories are stated at the lower of cost and net reMsahle value Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make d«e sale The method of determination of cost and valuation is as under:
Com of Inventories comprises - of Cost of Purchase, cost of conversion and othet costs incurred in bringing them to tlieir present location and condition
Raw Materials and Work-in-Pi ogress are valued at cost usxkj the Weighted Average cost method.
Goods- produced and purefutsed are valued at Cost or N« Realizable value whichever Is low-i
Stores and Soares. Packing material are enrr-oo ai cost, aacnamncn on weighted average bass Necessary provision Is mode m the case of obsolete and non-moving items
1.6 Provisions
Provision# are recognized when the Company has a present obligation (legal or constructive) as a lesiiX of a pant even! it re probable mat an outflow of economic bonetits will be required to settle mo obliqatfon and a reliable estimate can be made of the amount of the obligator)
1.7 Contingent liabilities and contingent assets Contmgont Liabilities
Continuum LatxK»e* a*u not rvcognuud but disclosed in Notes to thu Account* wbvn the Company tws paswhlv obligation duu to past events and existence of the ooigaoon depends upon occurrence or non occurrence of future events nor wholy maun the control ctf the company
Contingent Lacmt.cD ore assessed continuously to dotormino another outflow of ocenomrc rosourcos have become prebobie If tbr outflow becomes prohahle then rcftnirvr prnvblnn n recognued m the financial statement*
Where an entity is Jointly and severally uabto for an Ob#g*0on. the pan of the obligation that ts expected ro bo met by other portm is treafrd an n contingent hnbil«tv The entity rccogmncn a provision for thr part of the obligation 1or which an outflow of resources embodying economic benefits is probable, except in tf e extremely rare circumstances where no notable estimate can be made
Coniinuem Llobbies ai* disclosed m tfv? GenetaJ Notes fornwig part of llte accounts Contingent Assets
Contingent Assets me not recognivd in rlv fuvtncUsI sl/Wrmeni-* Such contingent assess are assessed contmunusty and rur disclosed in Notes wsen me inflow of economic benefits becomes probaWe it a's wtuaily certain mar intv?w of ecoocmo beneMs wMl arise then soclr assets and me »etoti/e income w I be recogrvsed in Uie financial statements
1.8 Income taxes
incorr** tvu expense repiesenix me tuim of itie tax cumwdy payable and deferred tax Current tax
The uu currently piiyabto r; fused on taxablit profit lor the year. Taxable profit differs from profit lx.*tafa lax as tepexiod in tfw unfement of profit or loss and other compfchenwe incomef5tmenwnt of profit or toss because of items of income or expense that are taxable or deductible in other years and Item* that me never UvoN* or deduabe The Company** current Uu re cateulatod using tax rates that have been enacted or tmtosUnt/voly enacted by the end of the reporting penod Deferred tax
Deferred tax is recognized on tempotary differences between the carrying amounts of assets and talatmes In the ftnantsoJ statements and the conespord-ng tax bases used w lf»e computation ol ta«abi* profit Deferred tax HabiWes are generaty rccogrv/od kx all taxable temporary differences- Deferred tax asserts aro Qcnomlly recognized lor all deduct)bio temporary differences to tim extent ttiiif It is (trobahk* that i.ixihv profits wlf lx? available /igninM which those ifeductililt* temporary differences can be utflred. Such deferred tax assets and ItoMties are not recognizee if the temporary difference arises from me inltws' recognition (other than In a business combination) of assets and tabrlibes in a transaction that affects nether the taxable pruM nor tfto accourtUig profit, in addition. dlefer ud tax liabMte* aro not loeogntzed if tho temporary d iff or one o ariftK from Phi mma* recognition of goodwill.
Deferred tax liabilities aro rtcognucad for ukjI*v temporary dilferonctf associated with irwtatmonts m subsedfeno# and associates, and interests m joint ventures, except where me company is Me to control the reversal of the temporary orffcrcnce and if is probable that the temporary drf«e'*nce w\li rxy, reverse m rhe foreseeable future Deferred tax assets ansng from deductible temporary differences associated with such investments and interests am only recogmred to the extent that a re probable that there *W be sufficient taxable profits against Winch to utilize Itn? benefit# of lire temporary differences and tf >e?y aie expected to reverse in the forosoaobto teturo
The carrying amount of deterred tax assets re renewed at the end of each reporting penod and reduced to the extent that it is no longer potable iltat sufficient taxable p-ofiN will be available i<> allow it* or p%tn of rite a«er in be recovered
Delorrod tax iU».toos ana assets aro measured at the tax rates mat are expected to apply .n the ported in which the *iMXy re rHrtrk?d or ttw nsv?t reafoed. based on tax rates (and tax. lawn) that lutvr been enacted or substantively enacted by tfv? end of the report mg penod
Current and deferred tax for the year
Current and doferrod tax are recognized m profit or teas, except whon thoy relate to Hems that are recogntzod m other comprehensive income or duccity in eqtxty. In which case Ihc ament and deferred tnx are obo recognized in other comprehfrfwjve income or directly in equity respectively Where current tax or deferred ta« arises from the initvii accounting for a buanvesa combmohon. the tax effect is included in the accounting for live business combmobon.
However the Comvwiy rs In losses So there k no current tax for the current Hnancml Year
1.9 Investment property
tnvtrntment propert r»s are properties r*yd to mm ronttil*; and/or for capital appri'natmn (Including property under consirumon for such purposes) Invrvmenl propones are tnoasieed initially nl cost, induing transaefitea costs AD of the Comporry n property interests he'd under operating leases to earn rentals or lor capaal appi«eciabor purposes are accounted te» as investment Dropcrbos.
Atar entiol reoognaion, the company measures investment property at cost
An investment property 15 derecognized upon disposal or when the investment property is pernionr miy withdrawn from use and no future economc benefits are expected from the disposal Any gam of toss arising on de recognition of Ibe property (cateutoted os the difference between the net disposal proceeds and the cauyrg amount of the asset) ts included n prof): or toss m the period m which me property is derecognized
Investment properties to be depreciated m accordance to the class of asset that it belongs and the Irfe of the asset shall be as
conceived for the samo doss of asset at tlto Company
1.10 Impairment of non-fmanc»al and financiaJ assets
If the recoverable amount of an asset (or cash-generauig unit) e estimated to be less than its carrying amount the carrying amount of the asset {or cash generatng unfl) is roduced to cs recover abto umount An impairment loss is recognized Immediately In profit or loss, unless die relevant asset is carried at a revalue amount, in v.tik:h case dm impairment toss is treated as a revaluation decrease.
Recoverable amount is the higher of fan value less costs of disposal and value in use in assessing vatoe «i use the estimate d future cash flows are discounted to their present value usng a pre tax discount rote Thai reflects current market assessments of time value of money and the risks specific to die asset for which the estimates of future cash flows nave not been adjusted
VAien an impairment toss subsequently reverses tne carrying amount of the asset (or a cosh-gcneratnq unit) is increased to tfn» revised estimate of Its recover «bto amount. tx* so that me trvcreasmJ carrying amount does not exr eed the carrying amount that would have been determined hod no impairment toss been recogrwed for the asset (or cash-generating unit) in prior years. A urvursal of an enpaiiment loss is recognised imroodiatety in profit or toss, unless ttw* relevant asset Is carried at a revalued amount. In winch cose the reversal of the •ropniiirent loss is treated m <1 revaluation increase Al the end of each reporting period, the company reviews the carrying amounts of its tangible, mtarg bfc assets to dotsvmine whether mero is any indication rtvii those assets have suffered an impairment toss If any such mrlicaton exists rhe recoverable amount nf the asset is estimated in order to determine the extent of the impairment loss (rt any) When it is not possible to estimate the recoverable amount of an Indwdual asset The Company estimates ttw tecovwahfe amount of the casti-generating unit If) which the asset belongs Wfien a reasonable and consistent basxs of altocatwn can be identified. Intangible assets with indefinite useful tons and mungWe assets not yat available for use ant tested for Impairment at toast annually, and whenever tfier* is an indication thal the asset may be mpmred Impairment of financial assets
Rranoal assets, other than those at Fa? value through Profit and Loss (FVTPL). are assessed for mocatovs of impairment at dw cod of each reporting penod. Financial assets ore considered to be impaired when there is objective evidence that, as a resort of one or more events thai occurred after me initial recognition of me financial asset, the estimated future cash flows of me investment hove been affected Fo# Available lo« Sato (APS) equity investments, a significant or protonged decline in tins fair value of the security be tow its cost« considered to be oajearve evidence of impairment
For all other financial assets, objective evidence of impairment could include:
Significant financial difficulty of tfw issuer or counterparty.
8roach of contract such as a default or dounqinmcy in interest or principal payments
it becoming probable lliat irw borrower wHi enter bankruptcy or financial re-organisation, 01 the disappearance of an active market for that financial asset because of financial difflcunies
For certain categories of financial assets such as trade recewahtos. assets are assessed rot impairment on individual t>asis Objective ovdcnce of impairment for a po'tloito of rocovab'cscould include companies past experience of collecting payments an increase In the number of delayed payments m ih* portfolio past ttw awing* credit period of zero days, as wefl as observabto changes in latonaJ or local economic conditions that correlate wih deiauft on receivables
Fcy flfwinoaf assets tt\«t are earned at cost, ihe amount of impairment loss to measufad as the difference between the assets carrying amour* and the present value ol the estimated future cash flows discounted nt the currenr market rain of return for a similar financial asset Such imuairrmatt loss will not bo ravarsod m sub$€*juv'it periods
The carrying amount ol the financial asset is reduced by the impairment loss diroedy for al financial assets wtb me exception of trade receivables; such impairment mss is reduced through the use of an alowarvce account for respective financial asset VAien a trade receivable is considered uncollectible, it is wntton off against the allowance account. Subsequent recover** of omounts previously wntton off are credited agoing the allowance account Changes w the carrying amount of the attowanco account are recognized in profit or loss
For tinanaa. assets measured at amortised cost, if, in a subsequent penod. the amount of the impairment loss decreases and tfw decrease can be related objectively 10 an event occurring after die impairment was recognized, tfw previously recogrx/ed impairment loss is reversed through profit or toss to the extent that the carrying amount of the investment at the date the fcnpafrvn&nf »s reversed does not exceed dm anvjrt.wd coil wixAJ have been fuid if'** impairment rxit been lecognurxf
Do recognition of financial assets:
The Company do recognises a fvvsncial asset when the contractual rights to the cash flows from tho asset oxptro or when it transfers the financial asset and substantially all the risks and rewards of ownership of :he asset to another party If the Company neither transfers nor retains substantially atf the nsks and rewards of ownership and continues to control the transferred a«et. The Company recognises its retained interest in the asset and an associated liability for amounts 4 may have to pay. If the Company retains substantwiv all the risks and rewards of ownership of a transferred financial assert the Company continues to recognise the financial asset and also recognises a oolataraBttd borrowing for the proceeds receiv'd
On de-recognroon of a financial asset n ns entirety ttie difference between the asset's carrying amount and Uio sun of the consideration receded and receivable and the cumulative gam or toss that hod been recognized m other cumpiehensiva income and accumulated m eouity ts recognized *n proto or toss
Lll Earnings per share
Basic eammgs per equity are computed by drviong the net profit attnhuuibie to the equity holders of the company by the weighted nvwiog* number of equity shares oufciandng during tfm penal Wilted oamngs per equity share is computed by dividing the net profit anjibutable to the equity holders or the company by the weighted average number of equity shares considered tor deriving basic earnings per equity vlwie and aKu die weighted average number of equity slimes tliat could have boon issued upon convcrwn of all dilutive potential equity sftaves The (Motive potential equity shores ore adjusted for the proceeds rece'vnbto had the equity shales been actually issued at bur vaue {»v 0*r avirrage moikri value of tie* outMandvig equity shored) Dilutive potential equity shores are doemod converted os of the beginning </ the percd unless issued at a later date Otlut/ve potential equ«ry shares ate detemvned independently lor each period presented
The number of equity shares ana potentially dilutive equity shares are adjusted retjospeawefy fee ail periods presentee tor any sit ares splits and bonus shares issues Inducting for efianges effected pt jr to tfie approval of tin* fiiviitoal statements try the Board of DircctonL
1.12 Discontinued operations
A discontinued epefanon is a component o? tr.e Company's bustnets that represents a separate line of business that nas been disposed oft or is hdd fot sale, or * a subvdwfy acquired cuctowcty with a vcw to resale Ckirafiuitxxi as a de-contmticd operation occura upon the earlier of disposal or Mien mo operation meets the outdo to be classified as held for Mb
L13 Financial instruments Non-der ivativo financial instruments Non-derivative financial instruments consist of:
• financial assets which include cash and cash equivalents trade receivables, unbred revenues finance 'ease rece-vables
employee nnd otfw?i aitoanccs. investments in equity and (toot securities and eligible current and non-curmnt assets.
• Financial HabUHec M>ch mdude long and short-term loons and borrowings, bonk overdrafts, trade payables ei»Qtf)lo current
and non-current labilities
Mon derivative financial instruments ore recognized umty at fair vatoo mcludnc) any directly aflnbutatte transaction costs. Rnancwtl assets are detccogrvrd wfien substantial tlsK-s and rewords of ownership of ttwr financial asset twive been transferred in coses where substantial rtsfcs and rewards of ownership of the financial assets ate noiher traniferrod nor retained, financial assets an? derecognized only when the Company has not retained control over ttv? financial asset Subsequent to fiitoi recognition. non-derivative financial nstrumems are measured as described below
a) Casti and cash equivalents
Rv the purposes of the cash flow Statement, cash nnd cash equhmtools include cash m hand, .*u banks and demand deposts with banks, not of outstaranq bank overdrafts that are ropayaote on demand and ore considered pan of tho Company s cash management system in the siaiemere of financial position, bank over drafts a*e presented under borrowings wUbfi ament tables
b) investments «n Iqutd mutual hinds, equity securffes (other tnan Sitosafartes Joint Venture ana Associates) are valued at then law value. These mvessmonts are moasmod at fan value and changes therein, «bc* than impairment losses, aro recogni/^i in ocher comprehensive income and presented within equip, net of tnwe. Tf*- irTfutefnefit losses if any, are redas5 fted from equty no statement of income. When an available for sate financial asset is derecognized. the related cumulative gain or loss recogrned «l equity »transferred to die statement d income
C) Loanc and receivables
loans nnd receive tecs arc non-derivative financial assets with fixed or detcrminndk? payments that are not quoted m an octive market They are pfesented as current assets, except to' those maturing late* than 12 months after the reporting date Much are presented ns non current assets. Loans and receivables arc inma ty recognized at fair value plus directly .it?r irxirabie tmnsacoon costs and subsequendy measured at amcrtiTed cost ust>g the ettoarve interest method less any impairment tosses loans and recevabtes comprise bade receivable:. totalled tevenuoa and other assets
Thu Company the un-colkt:uibi:«ty d accounts rec matte by analysing historical payment patterns. customer
concmrationy ontomef cred* worthiness and current economic bends if the fcnnndal condition of a customs oetrnorntc*. additional atiowances may be teqoired d) Trade and odter payables
Trade and ocher payables ate iniiafiy recognized at fair value, and subsequently earned ai omorb/cd cost using tie effective nttxett method For these financial msbuments the carrying amounts approximate far value due to the shod term matunty of llte*.r insbuments
o) Investments in Subsidiary, Associates and Joint Venture
The Company' accounts mvcstmwu m substomry. Joint ventures and associates at cost An entity concroffed by the company is considered as a subsidiary of the company
investments m sutni&ary company outside indm me translated at the rate of exchange prcvmiing on the dote of acqjisoor
Investments whore the Company has significant influence are class-lied as associates Significant influence is the power to pantdpaie «the financial and operating policy decisions of the Investee but Is not control or |o<nt control over those polices
a joint arrangement whereby the potties tfwit Iwve Joint control ol the annngement how nghts to the net assets of the joint arrangement is classified as a joint venture, joint centra t$ the contractually agreed shannq ol control ot an arrangement, which exists only when decisions ahout the relevant acidities require unanimous consent ot the parties sharing control
1.14 Segment information
The Company « principally engaged in s-ogle nusmess segment vw , ’Power and Telecom Tower, nru operates In one geographical segment as per on Segment Reporting'. AccouSngty. no segment lepomng has been made by the company.
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