3.1 Summary of Material Accounting
Policies

A) Property, Plant and Equipment

Property, Plant and Equipment are carried
at cost less accumulated depreciation
and accumulated impairment losses, if
any. Cost includes purchase price, non¬
refundable taxes, directly attributable
cost (including borrowings) of bringing
the assets to its working conditions and
locations and present value of any obligatory
decommissioning cost for its intended use.

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
Company 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 profit or loss during the reporting period
in which they are incurred.

In case of constructed assets, cost includes
cost of all materials used in construction,

direct labour, allocation overheads and
directly attributable borrowing cost.

Assets are depreciated to the residual values
on a straight-line basis over the useful life
prescribed in Schedule II to the Companies
Act, 2013 except Office equipment and
Furniture & Fixture which are depreciated
on written down value method. Freehold
land is not depreciated.

The residual values and estimated useful
life are reviewed at the end of each financial
year, with effect of any changes in estimate
accounted for on prospective basis.

Each component of a Property Plant and
Equipment with a cost that is significant
in relation to the total cost of that item is
depreciated separately if its useful life differs
from the other component of assets. The
useful life of the items of PPE estimated
by the management for the current and
comparative period are in line with the useful
life as per Schedule II of the Companies
Act,2013.

B) intangible Assets

Intangible assets acquired separately
are measured on initial recognition
at cost. Following initial recognition,
intangible assets are carried at cost
less any accumulated amortisation and
accumulated impairment losses. Internally
generated intangibles, excluding capitalised
development costs, are not capitalised
and the related expenditure is reflected
in profit or loss in the period in which the
expenditure is incurred.

Intangible assets with finite lives are
amortised over the useful economic life and
assessed for impairment whenever there is
an indication that the intangible asset may
be impaired. The amortisation period and
the amortisation method for an intangible
asset with a finite useful life are reviewed
at least at the end of each reporting period.
Changes in the expected useful life or the
expected pattern of consumption of future
economic benefits embodied in the asset are
considered to modify the amortisation period
or method, as appropriate, and are treated
as changes in accounting estimates. The
amortisation expense on intangible assets
with finite lives is recognised in the statement
of profit and loss unless such expenditure
forms part of carrying value of another asset.

Amortisation is calculated on straight line
method over the estimated useful lives of the
assets as follows:

disposal. Any gain or loss arising upon
derecognition of the asset (calculated as
the difference between the net disposal
proceeds and the carrying amount of the
asset) is included in the Statement of Profit
and Loss when the asset is derecognised.

The residual values, useful lives and
methods of amortisation of intangible assets
are reviewed at each financial year end and
adjusted prospectively, if appropriate.

C) Cash and Bank Balances

Cash and cash equivalents includes cash
in hand and at bank, deposits held at call
with banks, other short-term highly liquid
investments with original maturities of three
months or less that are readily convertible to
a known amount of cash and are subject to
an insignificant risk of changes in value and
are held for the purpose of meeting short¬
term cash commitments.

Other bank balances include deposits with
maturity less than twelve months but greater
than three months and balances and deposits
with banks that are restricted for withdrawal
and usage.

For the purpose of the Statement of Cash
Flows, cash and cash equivalents consists
of cash and short-term deposits, as defined
above, net of outstanding bank overdraft as
they being considered as integral part of the
Company's cash management.

D) inventories

Inventories are valued at the lower of cost
and net realizable value except scrap,
which is valued at net realizable value. Net
realisable value is the estimated selling
price in the ordinary course of business,
less estimated costs of completion and the
estimated costs necessary to make the sale.

The cost of inventories comprises of cost of
purchase, cost of conversion and other costs
incurred in bringing the inventories to their
respective present location and condition.
Cost is determined using the weighted
average cost basis.

E) Leases

The Company assesses at contract
inception whether a contract is, or contains,
a lease. That is, if the contract conveys
the right to control the use of an identified
asset for a period of time in exchange
for consideration.

Company as a lessee

The Company applies a single recognition
and measurement approach for all leases,
except for short-term leases and leases of
low-value assets. The Company recognises
lease liabilities to make lease payments and
right-of-use assets representing the right to
use the underlying assets.

Right-of-use assets

The Company recognises right-of-use assets
at the commencement date of the lease (i.e.,
the date the underlying asset is available
for use). Right-of-use assets are measured
at cost, less any accumulated depreciation
and impairment losses, and adjusted for any
remeasurement of lease liabilities. The cost
of right-of-use assets includes the amount of
lease liabilities recognised, initial direct costs
incurred, and lease payments made at or
before the commencement date less any lease
incentives received. Right-of-use assets are
depreciated on a straight-line basis over the
shorter of the lease term and the estimated
useful lives of the assets as mentioned below:

If ownership of the leased asset transfers to
the Company at the end of the lease term or
the cost reflects the exercise of a purchase
option, depreciation is calculated using the
estimated useful life of the asset.

The right-of-use assets are also subject to
impairment. Refer to the accounting policies in
section "impairment of non-financial assets".

Lease Liabilities

At the commencement date of the lease,
the Company recognises lease liabilities
measured at the present value of lease
payments to be made over the lease term.
The lease payments include fixed payments
(including in substance fixed payments) less
any lease incentives receivable, variable
lease payments that depend on an index or a
rate, and amounts expected to be paid under
residual value guarantees.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease
payments made. In addition, the carrying
amount of lease liabilities is remeasured if
there is a modification, a change in the lease
term, a change in the lease payments (e.g.,
changes to future payments resulting from a
change in an index or rate used to determine
such lease payments) or a change in the
assessment of an option to purchase the
underlying asset.

Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term
leases of machinery and equipment (i.e.,
those leases that have a lease term of 12
months or less from the commencement
date and do not contain a purchase option).
It also applies the lease of low-value assets
recognition exemption to leases of sites,
offices, equipment, etc. that are considered
to be low value. Lease payments on short¬
term leases and leases of low-value assets
are recognised as expense on a straight-line
basis over the lease term.

Company as a lessor

Lessor accounting under IND AS 116 is
substantially unchanged from IND AS 17.
Lessors will continue to classify leases as
either operating or finance leases using
similar principles as in IND AS 17. Therefore,
IND AS 116 does not have an impact for
leases where the Company is the lessor.

Leases in which the Company does not
transfer substantially all the risks and
rewards incidental to ownership of an
asset are classified as operating leases.
Rental income arising is accounted for on
a straight-line basis over the lease terms.
Initial direct costs incurred in negotiating
and arranging an operating lease are added
to the carrying amount of the leased asset
and recognised over the lease term on the
same basis as rental income. Contingent
rents are recognised as revenue in the
period in which they are earned.

i Employee Benefits

Retirement benefit in the form of Provident
Fund and Pension Fund are defined

contribution schemes. The Company has
no obligation, other than the contribution
payable to the respective funds. The
Company recognizes contribution payable
to the scheme as an expenditure, when
an employee renders the related service.

If the contribution payable to the scheme
for service received before the balance
sheet date exceeds the contribution already
paid, the deficit payable to the scheme is
recognised as a liability after deducting the
contribution already paid. If the contribution
already paid exceeds the contribution due
for services received before the balance
sheet date, then excess is recognised as an
asset to the extent that the pre-payment will
lead to, for example, a reduction in future
payment or a cash refund.

Gratuity liability is a defined benefit
obligation and is provided for on the basis
of actuarial valuation done on projected unit
credit method at the balance sheet date.

Re-measurements, comprising of actuarial
gains and losses, the effect of the asset
ceiling, excluding amounts included in
net interest on the net defined benefit
liability and the return on plan assets
(excluding amounts included in net interest
on the net defined benefit liability), are
recognised immediately in the balance
sheet with a corresponding debit or
credit to retained earnings through Other
Comprehensive Income in the period in
which they occur. Re-measurements are not
reclassified to Statement Profit and Loss in
subsequent periods.

The Company treats accumulated leaves
expected to be carried forward beyond
twelve months, as long term employee
benefit for measurement purposes. Such
long-term compensated absences are
provided for based on the actuarial valuation
using the projected unit credit method at
the end of each financial year. The Company
presents the leave as current liability in the
balance sheet, to the extent it does not have
an unconditional right to defer its settlement
beyond 12 months after the reporting date.
Where the Company has unconditional legal
and contractual right to defer the settlement
for the period beyond 12 months, the
same is presented as non-current liability.
Actuarial gains/losses are immediately taken
to the Statement of Profit and Loss and are
not deferred.

G) Foreign Currency Reinstatement and
Translation

The Company's financial statements are
presented in Indian Rupee (?), which is the
Company's functional currency.

Transactions and balances

Transactions in foreign currencies are
initially recorded by the Company at their
respective functional currency spot rates
at the date the transaction first qualifies for
recognition. Monetary assets and liabilities
denominated in foreign currencies are
translated at the functional currency spot
rates of exchange at the reporting date.

Exchange differences arising on settlement
or translation of monetary items are
recognised in profit or loss with the
exception of the following:

• Exchange differences arising on
monetary items that forms part of a
reporting entity's net investment in a
foreign operation are recognised in
profit or loss in the separate financial
statements of the reporting entity or
the individual financial statements of
the foreign operation, as appropriate,

In the financial statements that include
the foreign operation and the reporting
entity such exchange differences
are recognised initially in OCI. These
exchange differences are reclassified
from equity to profit or loss on disposal of
the net investment.

• Tax charges and credits, if applicable,
attributable to exchange differences on
those monetary items are also recorded
in OCI.

Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rates at
the dates of the initial transactions. Non¬
monetary items measured at fair value in
a foreign currency are translated using
the exchange rates at the date when the
fair value is determined. The gain or loss
arising on translation of non-monetary
items measured at fair value is treated in
line with the recognition of the gain or loss
on the change in fair value of the item (i.e.,
translation differences on items whose fair
value gain or loss is recognised in OCI or
profit or loss are also recognised in OCI or
profit or loss, respectively).

H) impairment of non-financial assets

The Company assesses at each reporting
date whether there is an indication that an
asset may be impaired. If any indication
exists, or when annual impairment testing
for an asset is required, the Company
estimates the asset's recoverable amount.

An asset's recoverable amount is the higher
of an asset's or cash-generating unit's
(CGU) fair value less costs of disposal and
its value in use. The recoverable amount is
determined for an individual asset, unless

the asset does not generate cash inflows
that are largely independent of those from
other assets or groups of assets. Where
the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is
considered impaired and is written down to
its recoverable amount. In assessing value
in use, the estimated future cash flows are
discounted to their present value using a
pre-tax discount rate that reflects current
market assessments of the time value of
money and the risks specific to the asset.

In determining net selling price, recent
market transactions are taken into account,
if available. If no such transactions can be
identified, an appropriate valuation model
is used.

The Company bases its impairment
calculation on detailed budgets and forecast
calculations which are prepared separately
for each of the Company's cash-generating
units to which the individual assets are
allocated. Impairment losses of continuing
operations, including impairment on
inventories, are recognised in the Statement
of Profit and Loss.

For assets, an assessment is made at
each reporting date to determine whether
there is an indication that previously
recognised impairment losses no longer
exist or have decreased. If such indication
exists, the Company estimates the
assets or CGU's recoverable amount. A
previously recognised impairment loss is
reversed only if there has been a change
in the assumptions used to determine
the asset's recoverable amount since the
last impairment loss was recognised. The
reversal is limited so that the carrying
amount of the asset does not exceed its
recoverable amount, nor exceed the carrying

amount that would have been determined,
net of depreciation, had no impairment loss
been recognised for the asset in prior years.
Such reversal is recognised in the Statement
of Profit and Loss.

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

i) Financial instruments - initial

Recognition, Subsequent Measurement,
and impairment

A financial instrument is any contract that
gives rise to a financial asset of one entity
and a financial liability or equity instrument
of another entity.

Financial assets

initial recognition and measurement

Financial assets are classified, at initial
recognition, at amortised cost or fair value
through other comprehensive income (OCI),
or fair value through profit or loss.

The classification of financial assets at
initial recognition depends on the financial
asset's contractual cash flow characteristics
and the Company's business model for
managing them. With the exception of
trade receivables that do not contain a
significant financing component or for which
the Company has applied the practical
expedient, the Company initially measures
a financial asset at its fair value plus, in the
case of a financial asset not at fair value
through profit or loss, transaction costs.
Trade receivables that do not contain a
significant financing component or for which
the Company has applied the practical
expedient are measured at the transaction
price determined under IND AS 115.

In order for a financial asset to be classified
and measured at amortised cost or fair value
through OCI, it needs to give rise to cash
flows that are 'solely payments of principal
and interest (SPPI)' on the principal amount
outstanding. This assessment is referred
to as the SPPI test and is performed at an
instrument level. The Company's business
model for managing financial assets refers
to how it manages its financial assets in
order to generate cash flows. The business
model determines whether cash flows will
result from collecting contractual cash flows,
selling the financial assets, or both.

Purchases or sales of financial assets that
require delivery of assets within a time frame
established by regulation or convention in
the market place (regular way trades) are
recognised on the trade date, i.e., the date
that the Company commits to purchase or
sell the asset.

Subsequent Measurement

Subsequent measurement of financial assets
is described below -

• Debt instruments at amortised cost
A 'debt instrument' is measured at the
amortised cost if both the following
conditions are met:

a) The asset is held within a
business model whose objective
is to hold assets for collecting
contractual cash flows, and

b) Contractual terms of the asset
give rise on specified dates

to cash flows that are solely
payments of principal and
interest (SPPI) on the principal
amount outstanding.

• Equity instruments measured at fair
value through other comprehensive
income (FVTOCI)

All equity investments in scope of
109 are measured at fair value. Equity
instruments which are held for trading
are classified as at FVTPL. For all othe
equity instruments, the Company may
make an irrevocable election to presen
in other comprehensive income,
subsequent changes in the fair value.
The Company makes such election on
an instrument-by-instrument basis.

The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify an
equity instrument as FVTOCI, then all
fair value changes on the instrument,
excluding dividends, are recognised
in the OCI. These equity shares are
designated as Fair Value Through
OCI (FVTOCI) as they are not held for
trading and disclosing their fair value
fluctuation in profit and loss will not
reflect the purpose of holding. There is
no recycling of the amounts from OCI
to the Statement of Profit and Loss,
even on sale of investment.

Equity instruments included within the
FVTPL category are measured at fair
value with all changes recognised in
the Statement of Profit and Loss.

Derecognition

A financial asset (or, where applicable, a par'
of a financial asset or part of a Company
of similar financial assets) is primarily
derecognised (i.e. removed from the
Company's balance sheet) when:

• The rights to receive cash flows from the
asset have expired, or

• The Company has transferred its rights
to receive cash flows from the asset

or has assumed an obligation to pay
the received cash flows in full without
material delay to a third party under
a 'pass-through' arrangement; and
either (a) the Company has transferred
substantially all the risks and rewards of
the asset, or (b) the Company has neither
transferred nor retained substantially all
the risks and rewards of the asset, but
has transferred control of the asset.

impairment of financial assets

In accordance with 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:

i. Financial assets that are debt
instruments, and are measured
at amortised cost e.g., loans, debt
securities, deposits, trade receivables
and bank balance

ii. Trade receivables or any contractual
right to receive cash or another
financial asset that result from
transactions that are within the scope
of 115

iii. Financial guarantee contracts which
are not measured as at FVTPL

The Company follows 'simplified approach'
for recognition of impairment loss
allowance on trade receivables or contract
revenue receivables.

The application of simplified approach
does not require the Company to track

changes in credit risk. Rather, it recognises
impairment loss allowance based on lifetime
ECLs at each reporting date, right from its
initial recognition.

ECL 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 entity expects to receive
(i.e., all cash shortfalls), discounted at the
original Effective Interest Rate (EIR). Lifetime
ECL are the expected credit losses resulting
from all possible default events over the
expected life of a financial instrument. The
12-month ECL is a portion of the lifetime
ECL which results from default events that
are possible within 12 months after the
reporting date.

ECL impairment loss allowance (or reversal)
recognised during the period is recognised
as income/ expense in the Statement of
Profit and Loss. This amount is reflected
under the head 'other expenses' (or 'other
income') in the Statement of Profit and Loss.

Financial liabilities

initial recognition and measurement

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings,
payables, or as derivatives designated as
hedging instruments in an effective hedge,
as appropriate.

All financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

The Company's financial liabilities include
trade and other payables, loans and
borrowings including bank overdrafts,

financial guarantee contracts and derivative
financial instruments,

Subsequent measurement

The measurement of financial liabilities
depends on their classification, as
described below:

Loans and borrowings

After initial recognition, interest-bearing
loans and borrowings are subsequently
measured at amortised cost using the EIR
method. Gains and losses are recognised
in profit or loss when the liabilities are
derecognised as well as through the EIR
amortisation process. Amortised cost
is calculated by taking into account any
discount or premium on acquisition and fees
or costs that are an integral part of the EIR.
The EIR amortisation is included as finance
costs in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognised when the
obligation under the liability is discharged
or cancelled or expires. When an existing
financial liability is replaced by another from
the same lender on substantially different
terms, or the terms of an existing liability are
substantially modified, such an exchange or
modification is treated as the derecognition
of the original liability and the recognition
of a new liability. The difference in the
respective carrying amounts is recognised in
the Statement of Profit or Loss.

J) Borrowing costs

Borrowing costs directly attributable to the
acquisition, construction or production of
an asset that necessarily takes a substantial
period of time to get ready for its intended
use or sale are capitalised as part of the cost
of the asset. All other borrowing costs are
expensed in the period in which they occur.
Borrowing costs consist of interest and other
costs that an entity incurs in connection
with the borrowing of funds. Borrowing cost
also includes exchange differences to the
extent regarded as an adjustment to the
borrowing costs.

K) Taxation

Income tax expense represents the sum of
current and deferred tax. Tax is recognised
in the Statement of Profit and Loss, except to
the extent that it relates to items recognised
directly in equity or other comprehensive
income, in such cases the tax is also
recognised directly in equity or in other
comprehensive income. Any subsequent
change in direct tax on items initially
recognised in equity or other comprehensive
income is also recognised in equity or other
comprehensive income and such change
could be for change in tax rate.

i. Current Tax

Current income tax assets and liabilities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used
to compute the amount are those that
are enacted or substantively enacted, at
the reporting date in the countries where
the Company operates and generates
taxable income.

Current income tax relating to items
recognised outside profit or loss is
recognised outside profit or loss (either
in other comprehensive income or in
equity). Current tax items are recognised
in correlation to the underlying transaction
either in OCI or directly in equity.

Management periodically evaluates
positions taken in the tax returns with
respect to situations in which applicable tax
regulations are subject to interpretation and
establishes provisions where appropriate.

ii. Deferred Tax

Deferred tax is recognised on differences
between the carrying amounts of assets
and liabilities in the Balance sheet and
the corresponding tax bases used in the
computation of taxable profit and are
accounted for using the liability method.
Deferred tax liabilities are generally
recognised for all taxable temporary
differences. Deferred tax assets are generally
recognised for all deductible temporary
differences, carry forward tax losses and
allowances to the extent that it is probable
that future taxable profits will be available
against which those deductible temporary
differences, carry forward tax losses and
allowances can be utilized. Deferred tax
assets and liabilities are measured at the
applicable tax rates. Deferred tax assets
and deferred tax liabilities are off set and
presented as net.

The carrying amount of deferred tax assets
is reviewed at each balance sheet date and
reduced to the extent that it is no longer
probable that sufficient taxable profits will
be available against which the temporary
differences can be utilized.

Deferred tax assets and liabilities are
measured at the tax rates that are expected
to apply in the year when the asset is
realized or the liability is settled, based
on tax rates (and tax laws) that have been
enacted or substantively enacted at the
reporting date.

Deferred tax relating to items recognised
outside profit or loss is recognised outside
profit or loss (either in other comprehensive
income or in equity). Deferred tax items are
recognised in correlation to the underlying
transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax
liabilities are offset if a legally enforceable
right exists to set off current tax assets
against current tax liabilities and the
deferred taxes relate to the same taxable
entity and the same taxation authority.

L) Revenue recognition

Revenue from contracts with customers is
recognised when control of the goods or
services are transferred to the customer at
an amount that reflects the consideration to
which the Company expects to be entitled in
exchange for those goods or services. The
Company has generally concluded that it
is the principal in its revenue arrangements
because it typically controls the goods
or services before transferring them to
the customer.

i. Revenue from sale of goods and services

Revenue from sale of goods and services
is recognised at the point in time when the
performance obligation is satisfied by the
transfer of control of promised goods and
services to the customer. Revenue towards
satisfaction of a performance obligation is
measured at the amount of transaction price
(net of variable consideration) allocated to
that performance obligation. The transaction
price of goods sold and services rendered
is net of variable consideration. As the
period between the date on which the
Company transfers the promised goods to
the customer and the date on which the

customer pays for these goods is generally
one year or less, no financing components
are considered,

ii. Revenue from construction
contracts

Revenue from construction contract
are satisfied over the period of time
based on the identified performance
obligation and accordingly revenue
is recognised based on progress
of performance determined using
input method with reference to the
cost incurred on contract and their
estimated total costs,

The amount of revenue recognised
in a year on projects is dependent,
inter alia, on the actual costs incurred,
the assessment of the percentage of
completion of (long-term) contracts
and the forecasted contract revenue
and costs to complete of each project,

Costs in respect of projects include
costs of materials including own
manufactured materials at costs
along with fabrication, construction,
labour and directly attributable/
identifiable overheads, as estimated by
the management.

Estimates of revenue and costs are
reviewed periodically and revised,
wherever there are changes in design,
scope, specification, etc, resulting
in increase or decrease in revenue
determination, is recognised in the
period in which estimates are revised.

Provision is made for all losses
incurred to the balance sheet date.
Variations in contract work, claims and
incentive payments are recognised to
extent that it is probable that they will
result in revenue and they are capable
of being reliably measured. Expected
loss, if any, on a contract is recognised
as expense in the period in which it is
foreseen, irrespective of the stage of
completion of the contract.

iii. Revenue from Power Generation

Power generation income is
recognised on the basis of units of
power generated, net of wheeling and
transmission loss, as applicable, when
no significant uncertainty as to the
measurability or collectability exists.

Renewal Energy Certificate Income is
accounted on accrual basis at the rate
sold at the Power Exchanges. At the
year-end Renewal Energy Certificate
Income is recognised at the minimum
floor price specified by the Central
Regulator of CERC / last traded price
at the exchange.

iv. Contract Assets

Contract assets are recognised when
there is excess of revenue earned
over billings on contracts. Unbilled
receivables where further subsequent
performance obligation is pending are
classified as contract assets when the
company does not have unconditional
right to receive cash as per contractual
terms. Revenue recognition for fixed
price development contracts is
based on percentage of completion
method. Invoicing to the clients is
based on milestones as defined in
the contract. This would result in the
timing of revenue recognition being
different from the timing of billing
the customers. Unbilled revenue for
fixed price development contracts is
classified as non-financial asset as
the contractual right to consideration
is dependent on completion of
contractual milestones.

v. Impairment of Contract asset

The Company assesses a contract
asset for impairment in accordance
with Ind AS 109. An impairment of a
contract asset is measured, presented
and disclosed on the same basis as a
financial asset that is within the scope
of Ind AS 109.

vi. Contract Liability

Contract Liability is recognised when
there are billings in excess of revenues,
and it also includes consideration
received from customers for whom the
company has pending obligation to
transfer goods or services.

The billing schedules agreed
with customers include periodic
performance-based payments and
/ or milestone-based progress
payments. Invoices are payable within
contractually agreed credit period.

vii. Export Benefits

Exports entitlements are recognised
when the right to receive credit as
per the terms of the schemes is
established in respect of the exports
made by the Company and when there
is no significant uncertainty regarding
the ultimate collection of the relevant
export proceeds.

viii. Interest and Dividend Income

interest

Interest income is included in other
income in the statement of profit and
loss. Interest income is recognised
on a time proportion basis taking into
account the amount outstanding and
the effective interest rate when there is
a reasonable certainty as to realisation.

Dividend

Dividend income is recognised when
the Company's right to receive the
payment is established, it is probable
that the economic benefits associated
with the dividend will flow to the
Company and the amount of dividend
can be measured reliably.

M) Dividend Distribution

Annual dividend distribution to the
shareholders is recognised as a liability
in the period in which the dividends are
approved by the shareholders. Any interim
dividend paid is recognised on approval
by Board of Directors. Dividend payable is
recognised directly in equity.

N) Earnings per share

Basic earnings per share

Basic earnings per share is calculated by
dividing the net profit or loss attributable
to owners of the equity by the weighted
average number of equity shares
outstanding during the financial year.

The weighted average number of equity
shares outstanding during the period is
adjusted for events such as buy back, bonus
issue, bonus element in a rights issue, share

split, and reverse share split (consolidation
of shares) that have changed the number
of equity shares outstanding, without a
corresponding change in resources.

Diluted earnings per share

Diluted earnings per share adjusts the
figures used in the determination of basic
earnings per share to consider:

• the after-income tax effect of interest and
other financing costs associated with
dilutive potential equity shares, and

• the weighted average number of
additional equity shares that would
have been outstanding assuming the
conversion of all dilutive potential
equity shares.