2.12 Provisions, Contingent Liabilities and Contingent
Assets

Provisions are recognised when the Company has a present
obligation (legal or constructive) as a result of a past event, it is
probable that the Company will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the end of
the reporting period, taking into account the risks and uncertainties
surrounding the obligation. These estimates are reviewed at each
reporting date and adjusted to reflect the current best estimates.

Provision is measured using the cash flows estimated to settle the
present obligation and when the effect of time value of money
is material, the carrying amount of the provision is the present

value of those cash flows. Reimbursement expected in respect of
expenditure required to settle a provision is recognised only when it
is virtually certain that the reimbursement will be received.

Contingent assets are disclosed in the Financial Statements by
way of notes to accounts when an inflow of economic benefits is
probable.

Contingent liability is disclosed in case of:

(i) a possible obligation arising from past events and whose
existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly
within the control of the entity; or

(ii) a present obligation arising from past events where:

• it is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation;
or

• the amount of the obligation cannot be measured with
sufficient reliability"

Where the unavoidable costs of meeting the obligations under
the contract exceed the economic benefits expected to be
received under such contract, the present obligation under the
contract is recognised and measured as a provision for onerous
contract/foreseeable losses.

2.13 Equity instruments

Equity instruments issued by the Company are recorded at the
proceeds received, net of direct issue costs.

2.14 Revenue recognition

(i) Construction Contracts

Revenue is measured based on the consideration specified in a
contract with a customer. Company recognises revenue when
or as it transfers control over a good or service to a customer.

Allocation of transaction price to performance obligations
- A contract's transaction price is allocated to each distinct
performance obligation and recognised as revenue, when, or
as, the performance obligation is satisfied. To determine the
proper revenue recognition method, we evaluate whether
two or more contracts should be combined and accounted
for as one single contract and whether the combined or
single contract should be accounted for as more than one
performance obligation. This evaluation requires significant
judgment; some of our contracts have a single performance
obligation as the promise to transfer the individual goods or
services is not separately identifiable from other promises in
the contracts and, therefore, not distinct. For contracts with
multiple performance obligations, we allocate the contract's
transaction price to each performance obligation using our

best estimate of the standalone selling price of each distinct
good or service in the contract.

Payment terms - Progress billings are generally issued upon
completion of certain phases of the work as stipulated in the
contract. Payment terms may either be fixed, lump-sum or
driven by time and materials (i.e., daily or hourly rates, plus
materials). Because typically the customer retains a small
portion of the contract price until completion of the contract,
our contracts generally result in revenue recognised in
excess of billings which we present as contract assets on the
statement of financial position. Amounts billed and due from
our customers are classified as receivables on the statement
of financial position. The portion of the payments retained by
the customer until final contract settlement is not considered
a significant financing component because the intent is to
protect the customer. For some contracts, we may be entitled
to receive an advance payment. We recognise a liability for
these advance payments in excess of revenue recognised and
present it as contract liabilities on the statement of financial
position. The advance payment typically is not considered a
significant financing component because it is used to meet
working capital demands that can be higher in the early stages
of a contract and to protect us from the other party failing to
adequately complete some or all of its obligations under the
contract.

Warranty - Certain contracts include an assurance-type warranty
clause, typically between 18 to 36 months, to guarantee that
the products comply with agreed specifications. However, the
customers will generally with hold a part of the transaction
price as security against the warranty clause and the revenue
will be recognised by the company only after completion of
warranty period.

Revenue recognised over time - Our performance obligations
are satisfied over time as work progresses or at a point in
time when performance obligations are fulfilled and control
transfers to the customer. Typically, revenue is recognised over
time using an input measure (e.g., costs incurred to date relative
to total estimated costs at completion) to measure progress.

Cost-to-cost method - For our long-term contracts, because of
control transferring over time, revenue is recognised based on
the extent of progress towards completion of the performance
obligation. Upon adoption of the new standard we generally
use the cost-to-cost measure of progress for our contracts
because it best depicts the transfer of control to the customer
which occurs as we incur costs on our contracts. Under the
cost-to-cost measure of progress, the extent of progress
towards completion is measured based on the ratio of costs
incurred to date to the total estimated costs at completion of

the performance obligation. Revenues, including estimated
fees or profits, are recorded proportionally as costs are incurred.
Any expected losses on construction-type contracts in progress
are charged to earnings, in total, in the period the losses are
identified. Previously, such contracts were accounted for under
IAS 11 on Construction Contracts. Accordingly, revenue on
ongoing contracts was measured on the basis of costs incurred
and of margin recognised at the percentage of completion.
Margin was recognised only when the visibility of the riskiest
stages of the contract was deemed sufficient and when
estimates of costs and revenue was considered to be reliable.
The percentage of completion was calculated according to the
nature and the specific risk of each contract in order to reflect
the effective completion of the project. This percentage of
completion could be based on technical milestones defined
for the main deliverables under the contracts or based on the
ratio between costs incurred to date and estimated total costs
at completion. As soon as the estimate of the final outcome
of a contract indicated a loss, a provision was recorded for
the entire loss. The gross margin of a long-term contract at
completion was based on an analysis of total costs and income
at completion, which are reviewed periodically and regularly
throughout the life of the contract. A construction contract
was considered completed when the last technical milestone is
achieved, which occurs upon contractual transfer of ownership
of the asset or temporary delivery, even if conditional.

Right to invoice practical expedient - The right-to-invoice
practical expedient can be applied to a performance obligation
satisfied over time if we have a right to invoice the customer for
an amount that corresponds directly with the value transferred
to the customer for our performance completed to date. When
this practical expedient is used, we do not estimate variable
consideration at the inception of the contract to determine the
transaction price or for disclosure purposes. We have contracts
which have payment terms dictated by daily or hourly rates
where some contracts may have mixed pricing terms which
include a fixed fee portion. For contracts in which we charge
the customer a fixed rate based on the time or materials spent
during the project that correspond to the value transferred to
the customer, we recognise revenue in the amount to which
we have the right to invoice.

Contract modifications - Contracts are often modified to account
for changes in contract specifications and requirements. We
consider contract modifications to exist when the modification
either creates new, or changes the existing, enforceable
rights and obligations. Most of our contract modifications are
for goods or services that are not distinct from the existing
contract due to the significant integration service provided in

the context of the contract and are accounted for as if they
were part of that existing contract. The effect of a contract
modification on the transaction price and our measure of
progress for the performance obligation to which it relates is
recognised as an adjustment to revenue (either as an increase
in or a reduction of revenue) on a cumulative catch-up basis."

(ii) Other Operational Income

Other Operational Income Includes Revenue for Technical
services provided and accounted on accrual basis.

(iii) Dividend income:

Dividend income from investments is recognised when the
shareholder's right to receive payment is established by the
reporting date.

(iv) Interest Income

Interest income from financial assets is recognised at the
effective interest rate method applicable on initial recognition.

(v) Other Income

(a) Claims were accounted as income in the year of receipt of
arbitration award or acceptance by client or evidence of
acceptance.

( b) Other items of income are accounted as and when the
right to receive arises.

(c) I ncome from letting out of Plant & Machineries, Heavy
vehicle, etc., is recognized over time, based on the period
during which the service is provided to the customer.

2.15 Borrowing Costs

Borrowing costs specifically identified to the acquisition or
construction of qualifying assets is capitalized as part of such assets.
A qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. All other borrowing costs are
charged to the Statement of Profit and Loss.

2.16 Employee Benefits

Employee benefits include salaries, wages, provident fund, employee
state insurance and gratuity.

(i) Defined contribution plans

Employer's contribution to the recognized provident fund
which is a defined contribution scheme and ESI Contribution as
per law are charged to the Profit and Loss account.

(ii) Defined benefit plans

The Gratuity benefit is funded through a defined benefit
plan. For this purpose, the Company has obtained a qualified
insurance policy from Life Insurance Corporation of India.

2.17 Voluntary Retirement Scheme

Expenditure on Voluntary Retirement Scheme (VRS) is charged to
the Statement of Profit and Loss when incurred.

2.18 Foreign Exchange Transactions

Items included in the financial statements of each of the Group's
entities are measured using the currency of the primary economic
environment in which the entity operates (the "functional currency").
The consolidated financial statements are presented in Indian
Rupees, which is the Company's functional currency and the Group's
presentation currency.

Transactions in currencies other than the Company's functional
currency (foreign currencies) are recognised at the rates of exchange
prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated
in foreign currencies are translated using mean exchange rate
prevailing on the last day of the reporting period. Non-monetary
items, which are measured in terms of historical cost denominated
in a foreign currency, are reported using the exchange rate at the
date of the transaction. Non-monetary items, which are measured
at fair value or other similar valuation denominated in a foreign
currency, are translated using the exchange rate at the date when
such value was determined.

Exchange differences on monetary items are recognised in the
Statement of Profit and Loss in the period in which they arise. In case
of fixed assets they are adjusted to the carrying cost of such assets.

2.19 General Administrative Expenses

General administrative expenses which are directly attributable are
allocated to activities and the balance is charged to Statement of
Profit and Loss.

2.20 Income Taxes

Income tax expense represents the sum of the current tax and
deferred tax.

(i) Current tax

The tax currently payable is based on taxable profit for the year.
Taxable p rofit differs from 'profit before tax' as reported in the
Statement of Profit and 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 and laws that have been enacted or
substantively enacted by the end of the reporting period.

(ii) Deferred tax

Deferred tax is recognised on temporary differences between
the carrying amounts of assets and liabilities in the Financial
Statements and the corresponding tax bases used in the

computation of taxable profit. Deferred tax liabilities are
generally recognised for all taxable temporary differences.
Deferred tax assets are generally recognised for all deductible
temporary differences to the extent that it is probable that
taxable profits will be available against which those deductible
temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the
end of each reporting period and reduced to the extent that it is
no longer probable that sufficient taxable profits will be available
to allow all or part of the deferred tax asset to be utilized.

Deferred tax liabilities and assets are measured at the tax rates
that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws)
that have been enacted or substantively enacted by the end of
the reporting period.

The measurement of deferred tax liabilities and assets reflects the
tax consequences that would follow from the manner in which
the Company expects, at the end of the reporting period, to
recover or settle the carrying amount of its assets and liabilities.

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 tax assets and
deferred tax liabilities relate to the same taxable entity and the
same taxation authority.

(iii) Current and deferred tax expense for the year

Current and deferred tax expense is recognised in the
Statement of Profit and 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.

2.21 Proposed Dividend

The Company has disclosed dividend, proposed by board of directors
after the balance sheet date, in the notes, as provision cannot be

created for dividend proposed / declared after the balance sheet
date, unless a statute requires otherwise.

2.22 Exceptional Items

Income or expenses that arise from events or transactions that
are clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosure of such events/
transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly
impacting income or expense, is also treated as extraordinary item
and disclosed as such.

On certain occasions, the size, type or incidence of an item of
income or expense, pertaining to the ordinary activities of the
Company, is such that its disclosure improves an understanding
of the performance of the Company. Such income or expense is
classified as an exceptional item and accordingly disclosed in the
notes to accounts.

2.23 Earnings per share

Basic earnings per share are computed by dividing the net profit after
tax by the weighted average number of equity shares outstanding
during the period. Diluted earnings per share is computed by
dividing the profit after tax by the weighted average number of
equity shares considered for deriving basic earnings per share and
also the weighted average number of equity shares that could have
been issued upon conversion of all dilutive potential equity shares.

2.24 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit
after tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated
with investing or financing cash flows. The cash flows are segregated
into operating, investing and financing activities.

2.25 Segment reporting

Operating segments are identified and reported taking into account
the different risks and returns, the organization structure and the
internal reporting systems.

As per our report of even date On behalf of Board of Directors

For RPP Infra Projects Limited

For K R S G Associates P. Arul Sundaram A. Nithya

Charatered Accountants Chairman & Whole Time Director &

FRN # 007506S Managing Director Chief Financial Officer

DIN: 00125403 DIN: 00125357

CA SUJATHA T S Shammi Prakash

Membership No. :233150 Company Secretary

UDIN: 25233150BMGYDQ2154 M.No: F12331

Date: 28.05.2025
Place : Chennai