Provisions and contingent liabilities

Provisions are recognised when the Company has a
present legal or constructive obligation as a result of
past events; it is probable that an outflow of resources
will be required to settle the obligation; and the
amount can be reliably estimated.

Provisions are measured at the present value of the
expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current
market assessments of the time value of money (if
the impact of discounting is significant) and the risks
specific to the obligation. The increase in the provision
due to unwinding of discount over passage of time is

recognised as finance cost. Provisions are reviewed
at the each reporting date and adjusted to reflect the
current best estimate. If it is no longer probable that
an outflow of economic resources will be required to
settle the obligation, the provision is reversed.

A provision for onerous contracts is recognised when
the expected benefits to be derived by the Company
from a contract are lower than the unavoidable cost
of meeting its obligations under the contract. The
provision is measured at the present value of the
expected net cost of continuing with the contract.
Before a provision is established, the Company
recognises any impairment loss on the assets
associated with that contract.

A disclosure for a contingent liability is made where
there is a possible obligation that arises from past
events and the existence of which will be confirmed
only by the occurrence or non occurrence of one or
more uncertain future events not wholly within the
control of the Company or a present obligation that
arises from the past events where it is either not
probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the
amount cannot be made. Contingent liabilities are not
recognised in the financial statements. A contingent
asset is neither recognised nor disclosed in the
financial statements.

Fair value measurements and valuation processes

Some of the Company’s assets and liabilities
are measured at fair value for financial reporting
purposes. The Company has obtained independent
fair valuation for financial instruments wherever
necessary to determine the appropriate valuation
techniques and inputs for fair value measurements.
In some cases the fair value of financial instruments
is done internally by the management of the Company
using market-observable inputs.

In estimating the fair value of an asset or a liability, the
Company uses market-observable data to the extent
it is available. Where Level 1 inputs are not available,
the Company engages third party qualified valuers to
perform the valuation. The qualified external valuers
establish the appropriate valuation techniques and
inputs to the model. The external valuers report the
management of the Company findings every reporting

period to explain the cause of fluctuations in the fair
value of the assets and liabilities.

Information about the valuation techniques and inputs
used in determining the fair value of various assets
and liabilities is disclosed in note 26.

2.04 Revenue Recognition / Cost Recognition

Revenue is measured at the fair value of the
consideration received or receivable. Revenue is
recognised when (or as) the company satisfies a
performance obligation by transferring a promised
good or service (i.e. an asset) to a customer. An asset
is transferred when (or as) the customer obtains
control of that asset.

When (or as) a performance obligation is satisfied,
the company recognises as revenue the amount
of the transaction price (excluding estimates of
variable consideration) that is allocated to that
performance obligation.

The Company applies the five-step approach for
recognition of revenue:

• Identification of contract(s) with customers;

• Identification of the separate performance
obligations in the contract;

• Determination of transaction price;

• Allocation of transaction price to the separate
performance obligations; and

• Recognition of revenue when (or as) each
performance obligation is satisfied.

a) Construction contracts

Revenue from fixed price construction contracts is
recognised on the Percentage Of Completion Method
(POCM). The stage of completion is determined by
survey of work performed / completion of physical
proportion of the contract work determined by
technical estimate of work done / actual cost incurred
in relation to total estimated contract cost, as the case
may be. The estimate of total contract cost has been
made at the time of commencement of contract work
and reviewed and revised, by the technical experts,
from time to time during period in which the contract
work is executed. Future expected loss, if any, is
recognised immediately as expenditure. In respect
of unapproved revenue recognised, an adequate
provision is made for possible reductions, if any.

Contract revenue earned in excess of billing has been
reflected as unbilled revenue under the head “Other
Financial Assets” " and billing in excess of contract
revenue has been reflected as Unearned Revenue
under the head "Other Current Liabilities" in the
Balance Sheet. The amount of retention money held
by the customers pending completion of performance
milestone is disclosed as part of contract asset and is
reclassified as trade receivables.

Escalation claims raised by the Company are
recognised when negotiations have reached an
advanced stage such that customers will accept the
claim and amount that is probable will be accepted by
the customer can be measured reliably.

b) Real estate development

Revenue from real estate projects is recognised on
'Completed contract method' of accounting as per
IND AS 115, When

- the seller has transferred to the buyer all
significant risk and rewards of ownership and
seller retains no effective control of the real estate
to a degree usally associated with owner ship.

- The seller has effectively handed over possession
of the real estate unit to the buyer forming part of
the transaction.

- No significant uncertainty exists regarding the
amount of consideration that will be derived from
real estate sales;and

- It is not unreasonable to expect ultimate
collection of revenue from buyers.

c) I nterest Income - Interest income from a financial
asset is recognised when it is probable that the
economic benefits will flow to the Company and the
amount of income can be measured reliably. Interest
income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected
life of the financial asset to that asset’s net carrying
amount on initial recognition.

d) Dividend Income - Dividend income from investments
is recognised when the shareholder’s right to receive
payment has been established (provided that it is
probable that the economic benefits will flow to the

Company and the amount of income can be measured
reliably).

e) Rental Income - Income from letting-out of property
is accounted on accrual basis - as per the terms of
agreement and when the right to receive the rent
is established.

f) Income from services rendered is recognised
as revenue when the right to receive the same
is established.

g) Profit on sale of investment is recorded upon
transfer of title by the Company. It is determined as
the difference between the sale price and the then
carrying amount of the investment.

h) Share of profits/losses in LLP is recognised when the
right to receive/liability to pay the same is established.

2.05 Cost of construction / Development

Cost of construction/Development (Including cost of
land) incurred is charged to statement of profit and
loss proportionate to project area sold. Costs incurred
for projects which have not received Occupancy/
Completion certificate is carried over as Project under
Development. Costs incurred for projects which have
received Occupancy/ Completion certificate is carried
over as completed units.

2.06 Leases

Leases are accounted as per Ind AS 116 which
has become mandatory from April 1, 2019.

The Company assesses whether a contract contains
a lease, at the inception of the contract. A contract is,
or contains, a lease if the contract conveys the right
to control the use of an identified asset for a period of
time in exchange for consideration. To assess whether
a contract conveys the right to control the use of an
identified asset, the Company assesses whether (i)
the contract involves the use of identified asset; (ii)
the Company has substantially all of the economic
benefits from the use of the asset through the period
of lease and (iii) the Company has right to direct the
use of the asset

Company as a Lessee

The Company recognises a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which

comprises the initial amount of the lease liability
adjusted for any lease payments made at or before
the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the site on
which it is located, less any lease incentives received.
Certain lease arrangements include the option to
extend or terminate the lease before the end of the
lease term. The right-of-use assets and lease liabilities
include these options when it is reasonably certain
that the option will be exercised.

The right-of-use asset is subsequently depreciated
using the straight-line method from the
commencement date to the earlier of the end of the
useful life of the right-of-use asset or the end of the
lease term. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any,
and adjusted for certain re-measurements of the
lease liability.

The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Company’s incremental borrowing
rate. Generally, the Company uses its incremental
borrowing rate as the discount rate.

The lease liability is subsequently measured at
amortised cost using the effective interest method. It
is remeasured when there is a change in future lease
payments arising from a change in an index or rate,
if there is a change in the Company’s estimate of the
amount expected to be payable under a residual value
guarantee, or if Company changes its assessment
of whether it will exercise a purchase, extension or
termination option.

When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in
profit or loss if the carrying amount of the right-of-use
asset has been reduced to zero.

Lease payments have been classified as financing
activities in Statement of Cash Flow.

The Company has elected not to recognise right-
of-use assets and lease liabilities for short term
leases that have a lease term of less than or equal
to 12 months with no purchase option and assets

with low value leases. The Company recognises the
lease payments associated with these leases as
an expense in statement of profit and loss over the
lease term. The related cash flows are classified as
operating activities.

2.07 Borrowing Costs

Borrowing costs include interest, amortisation of
ancillary costs in connection with borrowing of funds
and is measured with reference to the effective
interest rate applicable to the respective borrowing.
Costs in connection with the borrowing of funds to
the extent not directly related to the acquisition of
qualifying assets are charged to the Statement of
Profit and Loss over the tenure of the loan. Borrowing
costs, allocated to and utilised for qualifying assets,
pertaining to the period from commencement of
activities relating to construction / development of
the qualifying asset up to the date of capitalisation
of such asset are added to the cost of the assets.
Capitalisation of borrowing costs is suspended
and charged to the Statement of Profit and Loss
during extended periods when active development
activity on the qualifying assets is interrupted.
Advances/deposits given to the vendors under the
contractual arrangement for acquisition/construction
of qualifying assets is considered as cost for the
purpose of capitalisation of borrowing cost.

I nterest income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing
costs eligible for capitalisation.

All other borrowing costs are recognised in statement
of profit or loss in the period in which they are incurred.

2.08 Employee benefits

a) Short-term Employee Benefits -

The undiscounted amount of short-term employee
benefits expected to be paid in exchange of services
rendered by the employees is recognised during
the year when the employees render the service.
These benefits include performance incentive
and compensated absences which are expected
to occur within twelve months after the end
of the period in which the employee renders
the related service. The cost of short-term
compensated absences is accounted as under:

(a) in case of accumulated compensated absences,
when employees render the services that increase
their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated
absences, when the absences occur.

b) Post Employment Benefits -

[1) Defined Contribution Plan:

Payments to defined contribution retirement benefit
schemes viz. Company's Provident Fund Scheme and
Superannuation Fund are recognised as an expense
when the employees have rendered the service
entitling them to the contribution. The company has
no further obligation once the contribution have
been paid.

2) Defined Benefit Plan:

For defined benefit retirement benefit plans, the cost
of providing benefits is determined using the projected
unit credit method, with actuarial valuations being
carried out at the end of each annual reporting period.
Remeasurement, comprising actuarial gains and
losses, the effect of the changes to the asset ceiling
(if applicable) and the return on plan assets (excluding
interest), is reflected immediately in the statement of
financial position with a charge or credit recognised
in other comprehensive income in the period in which
they occur.

Remeasurement recognised in other comprehensive
income is reflected immediately in retained earnings
and will not be reclassified to profit or loss. Past
service cost is recognised in profit or loss in the
period of a plan amendment. Net interest is calculated
by applying the discount rate at the beginning of the
period to the net defined benefit liability or asset.
Defined benefit costs are categorised as follows:

• service cost (including current service cost,
past service cost, as well as gains and losses on
curtailments and settlements);

• net interest expense or income; and

• remeasurement.

Gratuity: The Company has an obligation towards
gratuity, a defined benefit retirement plan covering
eligible employees. The plan provides for a lump sum
payment to vested employees at retirement, death
while in employment or on termination of employment

of an amount equivalent to 15/26 days salary
payable for each completed year of service. Vesting
occurs upon completion of five years of service. The
Company accounts for the liability for gratuity benefits
payable in future based on an independent actuarial
valuation. The Company has taken a Group Gratuity
cum Life Assurance Scheme with LIC of India for
future payment of gratuity to the eligible employees.

c) Other Long-term Employee Benefits -

Compensated Absences: The Company provides
for the encashment of compensated absences
with pay subject to certain rules. The employees
are entitled to accumulate compensated absences
subject to certain limits, for future encashment. Such
benefits are provided based on the number of days of
un utilised compensated absence on the basis of an
independent actuarial valuation.

Share-based Payments

The cost of equity-settled transactions is determined
by the fair value at the date when the grant is made
using an appropriate valuation model.

The cost is recognised, together with a corresponding
increase in share-based payment reserves in equity,
over the period in which the performance and / or
service conditions are fulfilled in employee benefits
expense. The cumulative expense recognised for
equity-settled transactions at each reporting date
until the vesting date reflects the extent to which
the vesting period has expired and the Companies
best estimate of the number of equity instruments
that will ultimately vest. The statement of profit and
loss expense or credit for a period represents the
movement in cumulative expense recognised as at the
beginning and end of that period and is recognised in
employee benefits expense.

2.09 Taxation

I ncome tax expense comprises current tax expense
and the net change in the deferred tax asset or
liability during the year. Current and deferred tax are
recognised in profit or loss, except when they relate
to items that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised in
other comprehensive income or directly in equity,

respectively. Income tax expense represents the sum
of the tax currently payable and deferred tax.

Current income tax

The tax currently payable is based on taxable
profit for the year. Taxable profit differs from ‘profit
before tax’ as reported in the statement of profit or
loss and other comprehensive income/statement
of profit or loss because of items of income or
expense that are taxable or deductible in other
years and items that are never taxable or deductible.
The Company’s current tax is calculated using tax
rates that have been enacted or substantively enacted
by the end of the reporting period.

Advance taxes and provisions for current income
taxes are presented in the balance sheet after off¬
setting advance tax paid and income tax provision
arising in the same tax jurisdiction and where the
relevant tax paying units intends to settle the asset
and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance
sheet approach. Deferred income tax assets and
liabilities are recognised for deductible and taxable
temporary differences arising between the tax base
of assets and liabilities and their carrying amount,
except when the deferred income tax arises from the
initial recognition of goodwill or an asset or liability in
a transaction that is not a business combination and
affects neither accounting nor taxable profit or loss at
the time of the transaction.

Deferred income tax asset are recognised to the
extent that it is probable that taxable profit will be
available against which the deductible temporary
differences and the carry forward of unused tax
credits and unused tax losses can be utilised. The
carrying amount of deferred income tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of the
deferred income tax asset to be utilised.

Deferred tax assets and liabilities are measured using
substantively enacted tax rates expected to apply to
taxable income in the years in which the temporary
differences are expected to be received or settled.

Deferred tax assets and liabilities are offset when they
relate to income taxes levied by the same taxation
authority and the relevant entity intends to settle its
current tax assets and liabilities on a net basis.

Deferred tax assets include Minimum Alternate Tax
(MAT) paid in accordance with the tax laws in India,
which is likely to give future economic benefits in the
form of availability of set off against future income tax
liability. Accordingly, MAT is recognised as deferred
tax asset in the balance sheet when the asset can be
measured reliably and it is probable that the future
economic benefit associated with the asset will
be realised.

The Company recognises interest levied and penalties
related to income tax assessments in income
tax expenses.

2.10 Property, Plant and Equipment

Property plant & equipment are stated at cost of
acquisition or construction where cost includes
amount added/deducted on revaluation less
accumulated depreciation / amortisation and
impairment loss, if any. All costs relating to the
acquisition and installation of fixed assets are
capitalised and include borrowing costs relating
to funds attributable to construction or acquisition
of qualifying assets, up to the date the asset / plant
is ready for intended use. The cost of replacing a
part of an item of property, plant and equipment
is recognised in the carrying amount of the item of
property, plant and equipment, if it is probable that
the future economic benefits embodies within the
part will flow to the Company and its cost can be
measured reliably with the carrying amount of the
replaced part getting derecognised. The cost for day-
to-day servicing of property, plant and equipment are
recognised in Statement of Profit and Loss as and
when incurred.

Depreciation on tangible property plant & equipment
has been provided on written down value method
as per the useful life prescribed in Schedule II to the
Companies Act, 2013 except in respect of plant and
machinery, in whose case the life of the assets has
been assessed based on the technical advice, taking
into account the nature of the asset, the estimated
usage of the asset, the operating conditions of the
asset, past history of replacement, anticipated

technological changes, manufacturers warranties and
maintenance support, etc.

Property Plant & Equipment individually costing
? 5,000 or less are depreciated fully in the year
of acquisition. Depreciation on assets acquired/
purchased, sold/discarded during the year is provided
on a pro-rata basis from the date of each addition / till
the date of sale/discard.

The estimated useful life and depreciation method are
reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted for
on a prospective basis.

I f significant events or market developments indicate
an impairment in the value of the tangible asset,
management reviews the recoverability of the carrying
amount of the asset by testing for impairment. The
carrying amount of the asset is compared with the
recoverable amount, which is defined as the higher
of the assets fair value less costs to sell and its
value in use. To determine the recoverable amount
on the basis of value in use, estimated future cash
flows are discounted at a rate which reflects the
risk specific to the asset. If the net carrying amount
exceeds the recoverable amount, an impairment loss
is recognised. When estimating future cash flows,
current and expected future inflows, technological,
economic and general developments are taken
into account. If an impairment test is carried out on
tangible assets at the level of a cash-generating unit,
an impairment loss is recognised, taking into account
the fair value of the assets. If the reason for an
impairment loss recognised in prior years no longer
exists, the carrying amount of the tangible asset is
increased to a maximum figure of the carrying amount
that would have been determined had no impairment
loss been recognised.

2.11 Investment Properties

The Company has elected to continue with the carrying
value for all of its investment property as recognised
in its Initial GAAP financial statements as deemed
cost at the transition date. Investment properties
are measured initially at cost, including transaction
costs. Subsequent to initial recognition, investment
properties are states at cost less accumulated
depreciation and accumulated impairment loss, if any.
Though the Company measures investment property
using cost based measurement, the fair value of
investment property is disclosed in the notes.

2.12 Intangible Assets

Intangible assets acquired separately:

I ntangible assets with finite useful lives that are
acquired separately are carried at cost less
accumulated amortisation and accumulated
impairment losses. Amortisation is recognised on
straight line method over their estimated useful lives.
The estimated useful life and amortisation method are
reviewed at the end of each reporting period, with the
effect of any changes in estimate being accounted
for on a prospective basis. Intangible assets with
indefinite useful lives that are acquired separately are
carried at cost less accumulated impairment losses.

2.13 Goodwill

The company records its investments in equity
shares of subsidiaries, joint ventures, and associates
at cost and reviews them for impairment annually.
If there's any indication of impairment, the value of
the investment is immediately written down to its
recoverable amount. When the company disposes
of these investments, any difference between the
net disposal proceeds and the carrying amounts are
recognised in the Statement of Profit and Loss.

2.14 Impairment

Financial assets (other than at fair value)

The Company assesses at each date of balance sheet
whether a financial asset or a group of financial assets
is impaired.

I nd AS 109 requires expected credit losses to be
measured through a loss allowance. The Company
recognises lifetime expected losses for all contract

assets and / or all trade receivables that do not
constitute a financing transaction.

The Company applies the expected credit
loss model for recognising impairment loss on
financial assets measured at amortised cost,
trade receivables, other contractual rights
to receive cash or other financial asset and
financial guarantees not designated as at FVTPL.
Expected credit losses are the weighted average
of credit losses with the respective risks of default
occurring as the weights. 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 (i.e.
all cash shortfalls), discounted at the original effective
interest rate (or credit-adjusted - effective interest
rate for purchased, or originated credit impaired
financial assets). The Company estimates cash flows
by considering all contractual term of the financial
instrument (for example, prepayment, extension, call
and similar options) through the expected life of that
financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to the
lifetime expected credit losses if the credit risk on
that financial instrument has increased significantly
since initial recognition. If the credit risk on a financial
instrument has not increased significantly since
initial recognition, the Company measures the loss
allowance for that financial instrument at an amount
equal to 12-month expected credit losses. 12-month
expected credit losses are portion of the life-time
expected credit losses and represent the lifetime cash
shortfalls that will result if default occurs within the 12
months after the reporting date and thus, are not cash
shortfalls that are predicted over the next 12 months.

If the Company measured loss allowance for a
financial instrument at lifetime expected credit loss
model in the previous period, but determines at the
end of a reporting period that the credit risk has not
increased significantly since initial recognition due
to improvement in credit quality as compared to
the previous period, the Company again measures
the loss allowance based on 12-month expected
credit losses.

When making the assessment of whether there has
been a significant increase in credit risk since initial

recognition, the Company uses the change in the
risk of a default occurring over the expected life
of the financial instrument instead of the change
in the amount of expected credit losses. To make
that assessment, the Company compares the risk
of a default occurring on the financial instrument
as at the reporting date with the risk of a default
occurring on the financial instrument as at the date
of initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant
increases in credit risk since initial recognition.

For trade receivables or any contractual right to
receive cash or another financial asset that result
from transactions that are within the scope of Ind
AS 109, the Company always measures the loss
allowance at an amount equal to lifetime expected
credit losses. Further, for the purpose of measuring
lifetime expected credit loss allowance for trade
receivables, the Company has used a practical
expedient as permitted under Ind AS 109. This
expected credit loss allowance is computed based on
a provision matrix which takes into account historical
credit loss experience and adjusted for forward¬
looking information.

Non-financial assets

Tangible and intangible assets

Property, plant and equipment and intangible assets
with finite life are evaluated for recoverability whenever
there is any indication that their carrying amounts may
not be recoverable. If any such indication exists, the
recoverable amount (i.e. higher of the fair value less
cost to sell and the value-in-use) is determined on
an individual asset basis unless the asset does not
generate cash flows that are largely independent
of those from other assets. In such cases, the
recoverable amount is determined for the cash
generating unit (CGU) to which the asset belongs.

I f the recoverable amount of an asset (or CGU) is
estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced
to its recoverable amount. An impairment loss is
recognised in the statement of profit and loss.

2.15 Inventories

a) Stock of Materials

Stock of materials has been valued at lower of cost
or net realisable value. The cost is determined on
Weighted Average method.

b) Development Work

Stock of Units in completed projects and work in
progress are valued at lower of cost and net realisable
value. Cost is aggregate of land cost, materials,
contract work, direct expenses, provisions and
apportioned borrowing cost.

c) Stock of Trading Goods

Stock of trading goods has been stated at cost or net
realisable whichever is lower. The cost is determined
on Weighted Average Method.

2.16 Financial instruments

Financial assets and liabilities are recognised when
the Company becomes a party to the contractual
provisions of the instrument. Financial assets
and 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 measured
on initial recognition of financial asset or financial
liability, except for trade receivables which are initially
measured at transaction price.

Cash and cash equivalents

The Company considers all highly liquid financial
instruments, which are readily convertible into known
amounts of cash that are subject to an insignificant
risk of change in value and having original maturities
of three months or less from the date of purchase,
to be cash equivalents. Cash and cash equivalents
consist of balances with banks which are unrestricted
for withdrawal and usage.

Financial assets at amortised cost

Financial assets are subsequently measured at
amortised cost if these financial assets are 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.

Effective Interest Method

The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash receipts
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the debt instrument, or,
where appropriate, a shorter period, to the net carrying
amount on initial recognition. Income is recognised on
an effective interest basis for debt instruments other
than those financial assets classified as at FVTPL.
Interest income is recognised in profit or loss and is
included in the "Other income" line item.

Financial assets at fair value through other
comprehensive income

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.

Financial guarantee contracts:

These are initially measured at their fair values and,
are subsequently measured at the higher of the
amount of loss allowance determined or the amount
initially recognised less, the cumulative amount of
income recognised.

Financial assets at fair value through profit or loss

Financial assets are measured at fair value through
profit or loss unless it is measured at amortised cost
or at fair value through other comprehensive income
on initial recognition. The transaction costs directly
attributable to the acquisition of financial assets
and liabilities at fair value through profit or loss are
immediately recognised in profit or loss.

Investment in subsidiaries

I nvestment in subsidiaries are measured at cost as
per Ind AS 27 - Separate Financial Statements.

Financial liabilities

Financial liabilities are measured at amortised cost
using the effective interest method.

Effective Interest Method

The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability,
or (where appropriate) a shorter period, to the net
carrying amount on initial recognition.

Equity instruments

An equity instrument is a contract that evidences
residual interest in the assets of the company after
deducting all of its liabilities. Company recognises
equity instrument at proceeds received net of direct
issue costs.

Reclassification of Financial Assets

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments and
financial liabilities. For financial assets which are debt
instruments, a reclassification is made only if there is
a change in the business model for managing those
assets. Changes to the business model are expected
to be infrequent. The Company’s senior management
determines change in the business model as a result
of external or internal changes which are significant
to the company’s operations. Such changes are
evident to external parties. A change in the business
model occurs when a company either begins or
ceases to perform an activity that is significant to
its operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following

the change in business model. The Company does
not restate any previously recognised gains, losses
(including impairment gains and losses) or interest.

Offsetting of financial instruments

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
recognised amounts and there is an intention to settle
on a net basis, to realise the assets and settle the
liabilities simultaneously.

2.17 Earnings Per Share (EPS)

The Company reports basic and diluted earnings
per share in accordance with Ind AS 33 on Earnings
per share. Basic earnings per share is computed
by dividing the net profit or loss for the period by
the weighted average number of equity shares
outstanding during the period. Diluted earnings per
share is computed by dividing the net profit or loss for
the period by the weighted average number of equity
shares outstanding during the period as adjusted for
the effects of all diluted potential equity shares except
where the results are anti-dilutive.

2.18 Critical Accounting Judgments and key
sources of estimation, uncertainty

The preparation of financial statements and
related notes in accordance with Ind AS requires
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities,
the disclosure of contingent assets and liabilities at
the balance sheet date, and revenues and expenses.

Actual results could differ from those estimates due to
those uncertainties on which assumptions are based.
Estimates and assumptions are reviewed annually
in order to verify they still reflect the best available
knowledge of the Company’s operations and of
other factors deriving from actual circumstances.
Changes, if any, are immediately accounted for in the
income statement.

The present economic context, whose effects are
spread into some businesses in which the Company
operates, determined the need to make assumptions
related to future development with a high degree
of uncertainty. For this reason, it is not possible to
exclude that, in the next or in subsequent financial
years, actual results may differ from estimated

results. These differences, at present unforeseeable
and unpredictable, may require adjustments to
book values. Estimates are used in many areas,
including accounting for non-current assets,
deferred tax assets, bad debt provisions on accounts
receivable, inventory obsolescence, employee
benefits, contingent liabilities and provisions for risks
and contingencies.

2.19 Cash flow statement

The Cash Flow Statement is prepared by the indirect
method set out in Ind AS 7 on Cash Flow Statements
and presents cash flows by operating, investing and
financing activities of the Company.

2.20 Current/Non-Current Classification

The Company presents assets and liabilities in
the balance sheet based on current/non-current
classification. An asset is classified as current when it
satisfies any of the following criteria:

- I t is expected to be realised or intended to be
sold or consumed in normal operating cycle

- It is held primarily for the purpose of trading

- I t is expected to be realised within 12 months
after the date of reporting period, or

- Cash and cash equivalent unless restricted from
being exchanged or used to settle a liability for at
least 12 months after reporting period.

Current assets include the current portion of non¬
current financial assets.

All other assets are classified as non-current.

A liability is current when it satisfies any of the
following criteria:

- It is expected to be settled in normal
operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within 12 months after the
reporting period, or

- There is no unconditional right to defer the
settlement of the liability for at least 12 months
after the reporting period Current liabilities
include the current portion of long term
financial liabilities.

The Company classifies all other liabilities as non¬
current.

Deferred tax assets and liabilities are classified as
non-current assets and liabilities.

The operating cycle is the time between the
acquisition of assets and their realisation in cash
and cash equivalents. The Company has identified
12 months as its operating cycle. In case of project
business, operating cycle is dependent on life of
specific project/ contract/service, hence current
non-current bifurcation relating to project is based on
expected completion date of project which generally
exceeds 12 months

2.21 Share Capital
Ordinary Shares

Ordinary shares are classified as equity. Incremental
costs, if any, directly attributable to the issue of
ordinary shares are recognised as a deduction from
other equity, net of any tax effects.

2.22 Fair Value Measurement

Fair value is the price that would be received from
the sale of an asset or paid to transfer a liability in an
orderly transaction between market participants at
the measurement date. The fair value measurement is
based on the presumption that the transaction to sell
an asset or transfer the liability takes place either:

- in the principle market for the asset or liability

- i n the absence of principle market, in the most
advantageous market for the asset or liability.

The principle or the most advantageous market must
be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants would
use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

The fair value measurement of a non-financial asset
takes into account a market participant’s ability to
generate economic benefits by using the asset in its
highest and best use or by selling it to another market
participant that would use the asset in its highest and
best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair value,
maximising the use of relevant observable inputs and
minimising the use of unobservable inputs.

All assets and liabilities for which fair value is
measured or disclosed in the financial statements are
categorised within the fair value hierarchy, described
as follows, based on the lowest level input that is
significant to the fair value measurement as a whole:

- Level 1 - Quoted (Unadjusted) Market prices in
active markets for incidental assets or liabilities

- Level 2 -Valuation techniques for which the
lowest level input that is significant to the fair value
measurement is directly or indirectly observable

- Level 3 - Valuation Techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets and liabilities that are recognised in
the financial statements on a recurring basis, the
Company determines whether transfers that have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest level
input that is significant to the fair value measurement
as a whole) at the end of each reporting period.

Determination of Fair Value

1) Financial Assets - Debt Instruments at
amortised cost

After initial measurement the financial assets
are subsequently measured at amortised cost
using the Effective Interest Rate (EIR) method.
Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or cost that are an integral part of
the EIR.

2) Financial Assets - Debt Instruments at Fair
Value through Other Comprehensive Income
(FVTOCI)

Measured initially as well as at each reporting
date at fair value. Fair value movements are
recognised in the Other Comprehensive Income
(OCI). On derecognition of the asset, cumulative

gain or loss previously recognised in OCI is
reclassified from the equity to P&L.

3) Debt instruments, derivatives and equity
instruments at Fair Value through Profit or
Loss (FVTPL)

FVTPL is a residual category for debt
instruments. Any debt instrument, which does
not meet the criteria for categorisation as at
amortised cost or as FVTOCI, is classified as
at FVTPL.

4) Financial Liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at fair value
through profit & 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 Companies financial
liabilities include trade and other payables, loans
and borrowings including bank overdrafts and
derivative financial instruments.

Subsequent Measurement

Fair value through Profit & Loss

Financial liabilities at fair value through profit &
loss include financial liabilities held for trading
and financial liabilities designated upon initial
recognition as at fair value through profit or loss.
All changes in fair value of such liabilities are
recognised in statement of profit or loss.

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. The EIR amortisation
is included as finance costs in the statement of
profit and loss.

5) Embedded Derivatives

An embedded derivative is a component of a
hybrid (combined) instrument that also includes
a non-derivative host contract - with the effect
that some of the cash flows of the combined
instrument vary in a way similar to a standalone
derivative. If the hybrid contract contains a
host that is a financial asset within the scope
of IND AS 109, the Company does not separate
embedded derivatives. Rather, it applies the
classification requirements contained in IND
AS 109 to the entire hybrid contract. These
embedded derivatives are measured at fair value
with changes in fair value recognised in profit
or loss.

2.23 Recent accounting pronoucements

Ministry of Corporate Affairs (""MCA"") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules as issued from time to time.

In May 2025, MCA notified amendments to Ind AS 21
- The Effects of Changes in Foreign Exchange Rates,
applicable w.e.f. April 1, 2025. The Company has
reviewed the amendment and has determined that it
does not have any impact in its financial statements.

In August 2025, MCA notified the following
amendments to: Ind AS 1, Presentation of Financial
Statements, applicable w.e.f. April 1, 2025 - The
amendment relates to classification of liabilities as
current or non-current and non-current liabilities with
covenants. In the context of classifying a liability as
current, it removes the requirement of existence
of a right to defer settlement for at least 12 months
after the reporting date, and instead requires that
the said right should exist on the reporting date and
have substance. The amendment also introduces
guidance on classification of liabilities with covenants.
The Company has no impact of these amendments
in its classification criteria of current and non¬
current liabilities.

i nd AS 7, Statement of Cash Flows and Ind AS 107,
Financial Instruments - Disclosures, applicable
w.e.f. April 1, 2025 - The amendment in Ind AS 7
requires to inform users of financial statements of
the existence of supplier finance arrangements and
explain the nature of the arrangements, the carrying

amount of liabilities and the range of payment due
dates. Ind AS 107 has been amended to add supplier
finance arrangements as a factor that may cause
concentration of liquidity risk Appropriate disclosures
pursuant to the amendments have been provided in
Note 15 to the financial statements.

Ind AS 12 -The Company has evaluated the
amendments to Ind AS 12 relating to the introduction
of a temporary exception for the recognition of
deferred tax arising from top-up tax under the global
minimum tax rules and has determined that the said
amendments do not have any impact on the financial
statements of the Company.

2.24 Dividend

Dividend on share is recorded as liability on the date
of approval by the shareholders.

2.25 Investments

Long Term Investments are carried at cost. Provision
for diminution is made to recognise the decline, other
than temporary in the value of these investments.
Current investments are carried at lower of the cost
and fair value.

2.26 Associates and joint ventures

Associates and joint ventures are accounted for under
the equity method at cost at the date of acquisition.
In subsequent periods, the carrying amount is
adjusted up or down to reflect the Company's share
of the comprehensive income of the investee. Any
distributions received from the investee and other
changes in the investees equity reduce or increase the
carrying amount of the investment. If the losses of an
associate or joint venture attributable to the Company
equal or exceed the value of the interest held in
this associate or joint venture, no further losses are
recognised unless the Company incurs an obligation
or makes payments on behalf of the associate or joint
venture. If there are any indications of impairment in
the investments in associates or joint ventures, the
carrying amount of the relevant investment is subject
to an impairment test. If the reason for an impairment

loss recognised in prior years no longer exists, the
carrying amount of the investment is increased to
a maximum figure of the share of net assets in the
associate or joint venture.

2.27 Non-current assets held for sale and
discontinued operations

Non-current assets are classified separately in the
balance sheet as held for sale if they are available for
sale in their present condition and the sale is highly
probable. Assets that are classified as held for sale
are measured at the lower of their carrying amount
and their fair value less costs to sell. Liabilities
classified as directly related to non-current assets
held for sale are disclosed separately as held for
sale in the liabilities section of the balance sheet. For
discontinued operations, additional disclosures are
required in the Notes, as long as the requirements for
classification as discontinued operations are met.

2.28 Segment Reporting

The Company identifies primary segments based on
the dominant source, nature of risks and returns and
the internal organisation and management structure.
The operating segments are the segments for which
separate financial information is available and for
which operating profit / loss amounts are evaluated
regularly by the Chief Operating Decision Maker
(CODM) in deciding how to allocate resources and in
assessing performance.

'The accounting policies adopted for segment
reporting are in line with the accounting policies
of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities
have been identified to segments on the basis of their
relationship to the operating activities of the segment.
Inter-segment revenue is accounted on the basis of
transactions which are primarily determined based on
market / fair value factors. Revenue, expenses, assets
and liabilities which relate to the Company as a whole
and are not allocable to segments on reasonable
basis have been included under “unallocated revenue
/ expenses / assets / liabilities”.

Notes:

1. The company records receivables on account of ‘ EPC contracts ‘ and ‘ Development sales’ in the normal course of
business and classify the same as “trade receivable”.

2. The average credit period on EPC contracts is 60 days. No Interest is charged on trade recivables.

3. Trade receivables includes receivables from related parties and amount due from directors or other officers of the
company either severally or jointly with any other person or any trade or other receivables due from firm or private
companies in which any director is a partner, a director or member (Refer Note 33).

4. The concentration of credit risk is limited due to the fact that customer base is large and unrelated.

5. The Company does not provide for expected credit loss allowance development sales and receivables from related
parties as the Company does not expect any loss on these sales. There is no historical credit loss experience and the
Company does not expect any loss on these trade receivables.

6. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
from EPC contracts based on a provision matrix. The provision matrix takes into account historical credit losses
experience and adjusted for forward looking information. The expected credit loss allowance is based on the ageing
of the days the receivables are due and the rates as per the provision matrix. In addition the Company provides for
expected credit loss based on case to case basis

Description of Reserves

Retained Earnings: Retained earnings represent the amount of accumulated earnings of the Company

Securities premium reserve: The amount received in excess of the par value of equity shares has been classified as
securities premium.

General reserve: The Company created a General Reserve in earlier years pursuant to the provisions of the Companies
Act,1956 where in certain percentage of profits was required to be transferred to General Reserve before declaring
dividends. As per Companies Act 2013, the requirements to transfer profits to General Reserve is not mandatory. General
Reserve is a free reserve available to the Company.

Equity-settled employee benefits reserve: The Share options outstanding account is used to record the fair value of
equity-settled, share-based payment transactions with employees. The amounts recorded in share options outstanding
account are transferred to securities premium upon exercise of stock options and transferred to general reserve on
account of stock options not exercised by employees

The management assessed that the fair values of short term financial assets and liabilities significantly approximate their
carrying amounts largely due to the short - term maturities of these instruments. The fair value of the financial assets and
liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing
parties, other than in a forced or liquidation sale.

The Company determines fair values of financial assets and financial liabilities by discounting the contractual cash inflows/
outflows using prevailing interest rates of financials instruments with similar terms. The initial measurement of financial
assets and financial liabilities is at fair value. The fair value of investment is determined using quoted net assets value from
the fund. Further, the subsequent measurement of all financial assets and liabilities (other than investment in mutual funds)
is at amortised cost, using the effective interest method.

Discount rates used in determining fair value

The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing
rate of the borrower which in case of financial liabilities is the weighted average cost of borrowing of the Company and in
case of financial assets is the average market rate of similar credit rated instrument.

The Company maintain policies and procedure to value financial assets or financial liabilities using the best and most
relevant data available. In addition, the Company internally reviews valuation, including independent price validation for
certain instruments.

Fair value of financial assets and liabilities is the amount 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, regardless of whether that price is directly
observable or estimated using another valuation technique.

The following methods and assumptions were used to estimate fair value:

(a) Fair value of short term financial assets and liabilities significantly approximate their carrying amounts largely due to
the short term maturities of these instruments.

(b) Security deposit paid are evaluated by the Company based on parameters such as interest rate non performance risk
of the customer. The fair value of the Company’s security deposit paid are determined by estimating the incremental
borrowing rate of the borrower (primarily the landlords). Such rate has been determined using discount rate that
reflects the average interest rate of borrowing taken by similar credit rate companies where the risk of non performance
risk is more than significant.

(c) Fair value of quoted mutual funds is based on the net assets value at the reporting date. The fair value of other
financial liabilities as well as other non current financial liabilities is estimated by discounting future cash flow using
rate currently applicable for debt on similar terms, credit risk and remaining maturities.

(d) The fair value of the Company’s interest bearing borrowing received are determined using discount rate that reflects
the entity’s borrowing rate as at the end of the reporting year. The own non performance risk as at the reporting was
assessed to be insignificant.

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1: Quoted (unadjusted) price is active market for identical assets or liabilities.

Level 2: Valuation technique for which the lowest level input that has a significant effect on the fair value measurement are
observed, either directly or indirectly.

Level 3: Valuation technique for which the lowest level input has a significant effect on the fair value measurement is not
based on observable market data.

Note No. 27 - Financial Instruments and Risk Review

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all
other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital
management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the Year Ended March 31,
2026 and Year Ended March 31, 2025.

Financial Risk Management Framework

Vascon Engineers Limited is exposed primarily to credit risk, liquidity risk, which may adversely impact the fair value of
its financial instruments. The Company assesses the unpredictability of the financial environment and seeks to mitigate
potential adverse effects on the financial performance of the Company.

i) Credit Risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the
contractual terms or obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of
creditworthiness as well as concentration of risks. Credit risk is controlled by analyzing credit limits and creditworthiness
of customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit.

Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables(net of
advances/payables),loans and other financial assets measured at amortised cost. None of the financial instruments of the
Company result in material concentration of credit risk.

Exposure to credit risk

The carrying amount of financial asset represents the maximum credit exposure. The maximum exposure to credit risk
was ? 1,12,667.94 lakhs and ? 98,508.17 lakhs as at March 31,2026 and March 31,2025 respectively. Trade receivables are
typically unsecured and are derived from revenue earned from Development and EPC customers. Credit risk is managed
by the Company by continuously monitoring the recovery status of customers to which the Company grants credit terms
in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to
assess the impairment loss. The Company uses a provisioning policy approved by the Board of Directors to compute the
expected credit loss allowance for trade receivables. The policy takes into account available external and internal credit
risk factors and the Company’s historical experience for customers.

Trade receivables

Ind AS requires expected credit losses to be measured through a loss allowance. The Company assesses at each date
of statements of financial position whether a financial asset or a group of financial assets is impaired. The Company
recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing
transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month
expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset
has increased significantly since initial recognition.

The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for
forward-looking information. Company’s exposure to customers is diversified and some customer contributes more than
10% of outstanding accounts receivable as of March 31, 2026 and March 31, 2025, however there was no default on
account of those customer in the past. The concentration of credit risk is limited due to the fact that the customer base is
large and unrelated.

Before accepting any new customer, the Company uses an external/internal credit scoring system to assess the potential
customer’s credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed on
periodic basis.

The Company performs credit assessment for customers on an annual basis and recognises credit risk, on the basis of
lifetime expected losses and where receivables are due for more than 1 year.

The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the
provision matrix. The provision matrix at the end of the reporting year is as follows.

Excessive Risk Concentration

Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same
geographical region, or having economic features that would cause their ability to meet contractual obligations to be
similarly affected by changes in economic, political or other conditions. Concentrations indicate the relative sensitivity of
the Company’s performance to developments affecting a particular industry.

In order to avoid excessive concentrations of risk, the Company’s policies and procedures include specific guidelines to
focus on the maintenance of a diversified portfolio. Identified concentrations of credit risks are controlled and managed
accordingly. Selective hedging is used within the Company to manage risk concentrations at both the relationship and
industry levels.

Note No. 28 - Share Based Payments

Employee stock option scheme (ESOS) - 2020

The ESOS was approved by Board of Directors of Company in its meeting held on 14^th july 2020 and further confirmed
and approved by members on 8^th September 2020. Nomination and Remuneration Committee Administers the plan.
Each option carries with it the right to purchase one equity share of the company. All options have been granted at a
predetermined rate of ? 10/- per share. The maximum exercise period is 1 year from the date of vesting.

ii) Liquidity Risk

a) Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities,
by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets
and liabilities.

b) Maturities of financial liabilities

The following tables detail the remaining contractual maturity for its financial liabilities with agreed repayment periods. The
amount disclosed in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on
the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

The fair value of the stock option is calculated through the use of option pricing models, requiring subjective assumptions
which greatly affect the calculated values. The said fair value of the options have been calculated using Binomial lattice
option pricing model, considering the expected weighted average term of the options to be 1 year from the date of vesting,
an expected dividend rate on the underlying equity shares, a risk free rate and weighted average volatility in the share price.
The Company’s calculations are based on a single option valuation approach, and forfeitures are recognised as they occur.
The expected volatility is based on historical volatility of the share price after eliminating the abnormal price fluctuations.

The inputs used in the measurement of the fair values at grant date of the share-based payment plans were as follows.

Note No. 29 - Disclosures under Ind AS 116

The Company has elected below practical expedients on transition to Ind AS 116:

(i) Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

(ii) Applied the exemption not to recognise right of use assets and lease liabilities with less than 12 months of lease term
on the date of initial application.

(iii) Included the initial direct costs from the measurement of right of use asset at the date of initial application.

(iv) Elected not to reassess whether a contract is, or contains a lease at the date of initial application. Instead, for
contracts entered into before the transition date, the Company relied on its assessment made applying AS 17 Leases.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified assets for a period
of time in exchange for consideration

(v) The Company has elected not to apply the requirements of Ind AS 116 to short term leases of all the assets that have
a lease term of twelve months or less and leases for which the underlying asset is of low value. The lease payments
associated with these leases are recognised as an expense on a straight line basis over the lease term.

(vi) The weighted average incremental borrowing rate applied to lease liabilities range from 11% to 13%

Note No. 31 - Employee benefits

(a) Defined Contribution Plan

The Company makes Provident Fund contributions to defined contribution plan administered by the Regional Provident
Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost to
fund the benefits. The Company has recognised ? 173.89 lakhs for Provident Fund contributions & Family Pension Fund
(March 31, 2025: ? 174.18 lakhs) and ? 11.87 lakhs (March 31, 2025 : ? 18.52 lakhs) towards ESIC in the Statement of Profit
and Loss. The provident fund and ESIC contributions payable by the Company are in accordance with rules framed by the
Government from time to time. Figures stated in the para are after capitalisation.

(b) Defined Benefit Plans:

Gratuity

The Company operates a gratuity plan covering qualifying employees. The benefit payable is the greater of the amount
calculated as per the Payment of Gratuity Act, 1972 or the Company scheme applicable to the employee. The benefit
vests upon completion of five years of continuous service and once vested it is payable to employees on retirement or on
termination of employment. In case of death while in service, the gratuity is payable irrespective of vesting. The Company
makes annual contribution to the group gratuity scheme administered by the Life Insurance Corporation of India through
its Gratuity Trust Fund.

The expected rate of return on plan assets is based on the average long term rate of return expected on investments of the
fund during the estimated term of obligation.

The estimate of future salary increases, considered in actuarial valuation, takes account of inflation, seniority, promotion
and other relevant factors, such as supply and demand in the employment market.

*Refer Note No.41 for incremental impact due to new wage code

Note No. 32 - Significant estimates and assumptions

Estimates and Assumptions

The preparation of the Company’s financial statements requires management to make estimates and assumptions that
affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the
disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that
require a material adjustment to the carrying amount of assests or liabilities affected in future periods.

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
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 will be
reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or Cash Generating Unit (CGU) exceeds its recoverable amount,
which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation
is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable
market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The
cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company
is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being
tested. The recoverable amounts sensitive to the discount rate used for the DCF model as well as the expected future
cash-inflows and the growth rate used for extrapolation purposes.

Defined Benefit Plans (Gratuity Benefits)

The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity
obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may
differ from actual developments in the future. These include the determination of the discount rate, future salary increases
and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is
highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds in currencies consistent with the currencies of
the post-employment benefit obligation.

The mortality rate is based on publicaly available mortality tables for the specific countries. Those mortality tables tend to
change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on
expected future inflation rates.

Details about gratuity obligations are given in Note 31.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on
quoted prices in active markets, the fair value is measured using valuation techniques including the DCF model. The inputs
to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement
is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and
volatility. Changes in assumptions about these factors could affect the reported fair value target and the discount factor.

The Company has valued its financial instruments through profit & loss which involves significant judgements and estimates
such as cash flows for the period for which the instrument is valid, EBITDA of investee company, fair value of share price
of the investee company on meeting certain requirements as per the agreement, etc. The determination of the fair value is
based on expected discounted cash flows. The key assumptions take into consideration the probability of meeting each
performance target and the discount factor.

Note 33 : Related Party Transactions

I Names of related parties

1. Subsidiaries

- Marvel Housing Private Limited

- Vascon Value Homes Private Limited

- Kanchi Properties Private Limited (w.e.f 31.03.2026)

37 The company enters into “domestic transactions” with specified parties that are subject to the Transfer Pricing
regulations under the Income Tax Act, 1961 (‘regulation’). The pricing of such domestic transactions will need to
comply with Arm’s length principle under the regulations. These regulations, inter alia, also required the maintenance
of prescribed documents and information including furnishing a report from an accountant which is to be filed with the
Income tax authorities.

The Company has undertaken necessary steps to comply with the regulations. The management is of the opinion
that the domestic transactions are at arm’s length, and hence the aforesaid legislation will not have any impact on the
financial statements, particularly on the amount of tax expense and that of provision for taxation.

38 Segment information has been presented in the Consolidated Financial Statements as permitted by Indian Accounting
Standard (Ind AS) 108 on operating segment as notified under the Companies (Indian Accounting Standards)
Rules, 2015.

15,735 Lakhs. This involved the transfer of 12,689 equity shares (? 10 each). The company relinquished the Control
of GMP on October 10, 2024, with the sales consideration received on the same day and concluded as sold. The
profit from the sale of Investment in GMP is ? 7,479 lakhs (net of cost of investment & other direct expenses) and is
classified as an exceptional item in the financial statements. Consequently, appropriate disclosure has been made
in the financial statements. The above subsidiary pertains to the Manufacturing and Building Management System
(BMS) segments. However, this business segment ceased to exist following the sale of GMP.

45 During the financial year 2024-25, the Company entered into a Share Transfer Agreement dated March 31, 2025
and March 28, 2025, for divesting its entire shareholding in its wholly-owned subsidiary, Almet Corporation Limited
(“”ACL””) and Marathwada Realtors Private Limited (“”MRPL””), respectively, in favour of the partners of Ramanuj
Venture. While the share transfer was executed in favour of two of the three intended transferees in case of ACL, the
third transferee was unavailable at the time of execution.

Subsequently, a dispute has emerged among the partners of Ramanuj Venture, with one of the partners raising
objections regarding the validity of the share transfer. In view of this development. the Share Transfer Agreement of
ACL has been placed in abeyance pending the resolution of the dispute, this matter is subjudice and it is under process.

However, since the Company no longer retains the ability to govern the financial and operating policies of ACL &
MRPL or direct its relevant activities, it is considered to have relinquished control over the subsidiaries. Accordingly,
the Company has ceased to consolidate ACL & MRPL from the date such control was relinquished, in accordance
with Ind AS 110- Consolidated Financial Statements. The matter continues to be reviewed, and the Company will take
appropriate action based on the outcome of the dispute.

46 Benami Property

There are no any proceeding initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

47 The Company has borrowings from banks or financial institutions on the basis of security of current assets. The
quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in
agreement with the books of accounts.

48 Wilful Defaulter

The company has not declared Wilful Defaulter by any bank or financial institutions or any other lender.

49 Relationship with Struck off Companies

The company has not done any transactions with companies struck off under section 248 of the Companies Act, 2013.

50 Valuation of PPE, right-of-use assets, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.

51 (a) The company has not advanced or loaned or invested any funds (either borrowed funds or share premium or

any other sources or kind of funds) during the year to any other person(s) or entity(ies), including foreign entities
(intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall:

i) directly or indirectly lend orbsp; directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (ultimate beneficiaries) or,

ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

(b) The company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party)
during the year with the understanding (whether recorded in writing or otherwise) that the company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the funding party (ultimate beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

52 Undisclosed Income

The company does not have any transaction that are not recorded in the books of accounts that has been surrendered
or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or
survey or any other relevant provisions of the Income Tax Act, 1961), during the year.

53 Details of crypto currency or virtual currency

The company has not traded or invested in crypto currency or virtual currency during the current or previous year.

54 Other Regulatory Information as per Schedule III of the Division II of the Companies
Act, 2013

i. Registration of charges or satisfaction with Registrar of Companies

There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the
statutory period.

ii. Utilisation of borrowings availed from banks and financial institutions

The borrowings obtained by the Company from banks and financial institutions have been applied for the
purposes for which such loans were was taken.

55 The figures for the corresponding period / year have been regrouped and rearranged wherever necessary to make
them comparable.

56 The financial statements for the year ended March 31, 2026 were approved by the Board of Directors and authorise for