Determination of lease term & discount rate

Ind AS 116 Leases requires lessee to determine the lease
term as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use of
such option is reasonably certain. The Company makes
assessment on the expected lease term on lease by lease
basis and thereby assesses whether it is reasonably certain
that any options to extend or terminate the contract will
be exercised. In evaluating the lease term, the Company
considers factors such as any significant leasehold
improvements undertaken over the lease term, costs
relating to the termination of lease and the importance of the
underlying to the Company’s operations taking into account
the location of the underlying asset and the availability of
the suitable alternatives. The lease term in future periods
is reassessed to ensure that the lease term reflects the
current economic circumstances.

The discount rate is generally based on the incremental
borrowing rate specific to the lease being evaluated or for a
portfolio of leases with similar characteristics

Provisions and contingent liabilities

Provisions are recognized 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 recognized 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 recognized 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 recognizes 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 recognized 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 recognizes 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 transfered 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 uncertianty exists regardging the
amount of consideration that will be derived from
real estate sales;and

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
capitalization of borrowing cost.

Interest 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) i n 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 unutilised
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 recognized, 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 recognized 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 recognized in employee benefits expense.

2.09 Taxation

Income 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 /
amortization 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 recognized 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 derecognized. The cost for day-to-day servicing of
property, plant and equipment are recognized 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 D 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.

If 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 recognized 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:

Intangible assets with finite useful lives that are acquired
separately are carried at cost less accumulated
amortisation and accumulated impairment losses.
Amortisation is recognised on written down value 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 recognized 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.

Ind 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 11 and Ind AS 18, 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.

If 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 recognized 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

Investment 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 recognized 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 recognized
amounts and there is an intention to settle on a net basis,
to realize 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 Group 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 realized or intended to be sold or
consumed in normal operating cycle

- It is held primarily for the purpose of trading

- It is expected to be realized 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 realization 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 recognized 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

- in 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, maximizing the
use of relevant observable inputs and minimizing the use of
unobservable inputs.

All assets and liabilities for which fair value is measured
or disclosed in the financial statements are categorized
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 recognized in the financial
statements on a recurring basis, the Company determines
whether transfers that have occurred between levels in
the hierarchy by re-assessing categorization (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 amortized
cost

After initial measurement the financial assets are
subsequently measured at amortized cost using the
Effective Interest Rate (EIR) method. Amortized 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 recognized in the
Other Comprehensive Income (OCI). On derecognition
of the asset, cumulative gain or loss previously
recognized 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
categorization as at amortized 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 recognized 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 recognized in statement of profit
or loss.

Loans and Borrowings

After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortized
cost using the EIR method. Gains and losses are
recognized in profit or loss when the liabilities are
derecognized as well as through the EIR amortization
process. The EIR amortization 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 recognized in profit or loss.

2.23 Recent accounting pronoucements

The Ministry of Corporate Affairs vide notification dated
9 September 2024 and 28 September 2024 notified
the Companies (Indian Accounting Standards) Second
Amendment Rules, 2024 and Companies (Indian Accounting
Standards) Third Amendment Rules, 2024, respectively,
which amended/ notified certain accounting standards
(see below), and are effective for annual reporting periods
beginning on or after 1 April 2024:

• Insurance contracts - Ind AS 117; and

• Lease Liability in Sale and Leaseback - Amendments
to Ind AS 116

These amendments did not have any material impact on the
amounts recognised in prior periods and are not expected
to significantly affect the current or future periods.

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 recognize 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”.

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.

During the year ended Mar 31, 2025, there were no transfer between Level 1 and Level 2 fair value measurement and no
transfer into and out of Level 3 fair value measurement.

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
gearing ratio, which is net debt divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio
between 20% to 50%. The Company includes within net debt, interest bearing loans and borrowings, trade and other
payables, less cash and cash equivalents, excluding discontinued operations.

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,
2025 and Year Ended March 31, 2024.

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 ? 98,508.17 lakhs and ? 76,512.54 lakhs as at March 31, 2025 and March 31, 2024 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 Group
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.
Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks.

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, 2025 and March 31, 2024, 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.

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.

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) - 2017

The ESOS was approved by Board of Directors of the Company on 10^th Aug 2017 and thereafter by the share holders on 15^th
September 2017. A compensation committee comprising of independent directors of the company administers the ESOS
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 ? 28/- per share. The maximum exercise period is 4 year from the date of vesting i.e 30^th Sept 2017.
The ESOS granted on 10^th August 2017, was repriced on 15^th March 2019, at a predetermined rate of ? 15/- per share.
The maximum exercise period is 4 year from the date of vesting i.e 30^th Sept 2017. The ESOS granted on Feb 2021, was
repriced on 8^th Sept 2020, at a predetermined rate of ? 10/- share.

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 as at 1^st April, 2019 is 13% and still
continued to this year

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 recognized ? 174.18 lakhs for Provident Fund contributions
(March 31, 2024: ? 172.83 lakhs) and ? 18.52 lakhs (March 31, 2024 : ? 20.71 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.

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

- GMP Technical Solution Private Limited (ceased to exist w.e.f 10.10.2024)

- Almet Corporation Limited (ceased to exist w.e.f 31.03.2025)

- Marathawada Realtors Private Limited (ceased to exist w.e.f 28.03.2025)

- GMP Technical Solutions Middle East (FZE) (ceased to exist w.e.f 10.10.2024)

- Creazoine Metal Product Private Limited (ceased to exist w.e.f 10.10.2024)

- Vascon Value Homes Private Limited

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.

40 Corporate Social Responsibility Expenditure

As per Section 135 of the Companies Act, 2013 (the Act), a company meeting the applicability threshold, needs to
spend atleast 2% of its average net profit for the immediatelly preceding three financial years on Corporate Social
Responsibility (CSR) Activity. A CSR Committe has been formed by the company to undertake CSR activities on
09/11/2016 pursuant to the requirement of the Act.

a. Gross amount required to be spent by the Company during the year - D 125.73 Lakhs

41 The Company entered into Share Purchase Agreements (SPAs) with Mr. Raju Rathod and Mr. Sanjay Phoke
(“Purchasers”) for the sale of its entire equity holdings (i.e., 100% of the share capital) in two subsidiaries—Marathwada
Realtors Private Limited (“MRPL”) and Almet Corporation Limited (“ACL”)—both of which had previously been classified
as ‘Assets Held for Sale’. The sale of MRPL, comprising 39,216 equity shares of ?100 each, was concluded on March
28, 2025, for a total consideration of ?1,872 lakhs. Similarly, the sale of ACL, comprising 58,824 equity shares of
?100 each, was concluded on March 31, 2025, for ?1,209 lakhs. In both cases, the Company relinquished control on
the respective dates and received the full sales consideration. As a result of this transaction, ?455 lakhs has been
written back from the opening investment impairment provision, after considering the cost of investments and related
direct expenses, against the total provision of ?1,100 lakhs made in the earlier year for these investments. Profit from
discountinued operation includes losses of ? (22.32) lakhs and ? 134.12 lakhs for quarter ended March 2025 as well
as ? (32.51) lakhs for period ended 1.4.2024 to 31.03.2025 for ACL and ? 117.54 lakhs for period ended 1.4.2024 to
28.03.2025 for MRPL. These subsidiaries were part of the Company’s real estate segment.

42 The Company had entered into a Share Purchase Agreement (SPA) with M/s. Shinryo Corporation (“Purchaser”) on
July 17, 2024, to sell its entire stake (i.e. 85% of the total share capital of the Subsidiary) in GMP Technical Solutions
Private Limited(“GMP”), a material subsidiary, which has been classified as ‘Asset held for sale’ previously, for D 15,735
Lakhs. This involved the transfer of 12,689 equity shares (D 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 D 7,479 lakhs (net of cost of investment & other direct expenses) and is classified
as an exceptional item in the financial Results. Consequently, appropriate disclosure has been made in the financial
results. 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.

43 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.

44 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.

45 Wilful Defaulter

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

46 Relationship with Struck off Companies

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

47 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.

48 Code on Social Security

The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the
company towards Provident Fund and Gratuity. The Ministry of Labour and Employment had released draft rules
for the Code on Social Security, 2020 on November 13, 2020, and invited suggestions from stakeholders which are
under consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules
are notified. The Company will give appropriate impact in its financial statements in the period in which the Code
becomes effective and the related rules to determine the financial impact are published.

49 (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 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.

50 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.

51 Details of crypto currency or virtual currency

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

52 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 taken.

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

54 The financial statements for the year ended March 31, 2025 were approved by the Board of Directors and authorise
for issue on May 14, 2025.

In terms of our report attached. For and on behalf of the Board of Directors

Sd/- Sd/- Sd/-

For Sharp & Tannan Associates Siddharth Vasudevan Mukesh Malhotra Dr. Santosh Sundararajan

Chartered Accountants Managing Director Director Whole Time Director & Group CEO

Firm registration number - 109983W (DIN-02504124) (DIN-00129504) (DIN-00015229)

By the hands of

Sd/- Sd/- Sd/-

CA Pramod Bhise Neelam Pipada Somnath Biswas

Partner Company Secretary & Chief Financial Officer

Membership No. : (F) - 047751 Compliance Officer

Date : May 14, 2025 Date : May 14, 2025

Place : Mumbai Place : Mumbai