r) Provisions and contingent liabilities:

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. These are reviewed at each year end and reflect the best current estimate. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the best estimate of the Management of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, 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 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.

s) Employee benefits:

Short-term employee benefits:

All employee benefits payable within twelve months of service such as salaries, wages, bonus, ex-gratia, medical benefits etc. are recognised in the year in which the employees render the related service and are presented as current employee benefit obligations within the Balance Sheet. Termination benefits are recognised as an expense as and when incurred. Short-term leave encashment is provided at an undiscounted amount during the accounting period based on service rendered by employees. Compensation payable under Voluntary Retirement Scheme is charged to Statement of Profit and Loss in the year of settlement.

Other long-term employee benefits:

The liabilities for earned leave and sick leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related service. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Remeasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss. The obligations are presented as current liabilities in the Balance Sheet if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting period, regardless of when the actual settlement is expected to occur.

Defined benefit plan:

RKEC for the time being is managing their Long Term Employee Benefits only as Defined Benefit plans. However, the Accounting policy in respect of Defined Benefit plans had been drawn for proper application in case required in the following lines.

Gratuity:

Gratuity liability is a defined benefit obligation and is computed on the basis of an actuarial valuation by an actuary appointed for the purpose as per projected unit credit method at the end of each financial year. The liability or asset recognised in the Balance Sheet in respect of defined benefit pension and gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on Government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expenses in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur directly in Other Comprehensive Income. They are included in retained earnings in the Statement of changes in equity and in the Balance Sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

t) Earnings per share:

Earnings per share (EPS) are calculated by dividing the net profit or loss for the period attributable to Equity Shareholders by the weighted average number of Equity shares outstanding during the period. Earnings considered in ascertaining the EPS is the net profit for the period and any attributable tax thereto for the period. The treasury shares are not considered as outstanding equity shares for computing EPS.

u) Foreign Currency Transactions

Foreign Currency Transactions are recorded at the exchange rates prevailing on the date of the transaction.

Monetary items denominated in Foreign Currency are reported at the exchange rate prevailing on the balance sheet date. Exchange differences relating to long term monetary items are dealt with in the following manner:

• Exchange differences relating to long term monetary items, arising during the period, in so far as those relate to the acquisition of a depreciable capital asset are added to / deducted from the cost of the asset and depreciated over the balance life of the asset

• In other cases, such differences are accumulated in the “Foreign Currency Monetary Translation Difference Account” and amortised to the statement of profit and loss over the balance life of the long term monetary item.

All other exchange differences are dealt with in profit or loss.

v) Critical estimates and judgements

Preparation of the Financial Statements requires use of accounting estimates which, by definition, will seldom equal the actual results. This Note provides an overview of the areas that involve a higher degree of judgements or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with

information about the basis of calculation for each affected line item in the Financial Statements. The areas involving critical estimates or judgements are:

i) Estimation of useful life of tangible assets: Note2&3

ii) Estimation of defined benefit obligation: Note 15

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Defined contribution plans:

Amounts recognized as expenses towards contributions to provident fund, superannuation and other similar funds by the Company including for its subsidiary companies and joint venture companies in India are Rs. 1.15 Cr (previous year Rs. 92.09 Lacs ) for the year ended 31 March 2023

35. Segment Information-There is a common CODM assesses the internal reports of all projects that the company is undertaking and accordingly the resource allocation and the key decisions are being handled. Also, that there is a commonality involved in all the projects that the company is undertaking with respect to the nature of work, technicality involved, expertise etc. In view of the same, no separate reportable segments are identified by the management for the purpose of the reporting in the Financial Statements.

36. Fair Value Measurement-The company applied the fair valuation measurements as per Ind AS 113 Fair Value Measurement for all the assets and liabilities where ever applicable. It is further to state that the hierarchy of inputs as provided under Ind AS 113 is duly taken care.

39. Previous period’s figures have been regrouped / reclassified wherever necessary to correspond with the current period’s classification / disclosure.

40. An asset namely the Launching girder which was damaged is taken up for reconstruction. The reconstruction cost is covered by insurance. Asset Is reclassified as per Ind AS 105 Non -Current Asset held for Sale under Other Current Assets at Net realizable value and the loss on reclassification is duly provided for.

41. The company got two arbitration awards amounting to Rs. 12.06 cr and Rs. 16.68 cr against Mumbai and Cochin port Trust. The later was received between the reporting period and the date on which the financial statements are approved by the Board and accordingly , the same is considered as eligible for being taken as income for the FY 2022-23 in compliance of Indian Accounting standard (Ind As ) 10 , Events after the Reporting period . In compliance of Notification No: N-14070/14/2016-PPPAU , Dt: Sep 05, 2016 issued by the Government of India 75 % of the award is recognized as Revenue in the books of account since the certainty of the receipt of the amount is established in compliance of Indian Accounting standard (Ind As ) 115, Revenue from contracts with customers.

42 The company got Arbitration award amounting to 12.36 cr against UHIIC . Amount also received from client.

43 Consequent to a survey operations by the Income tax dept in the premises of the company , a provision of Rs 7.40 cr is created towards the estimated tax liability as the same is deemed as fit and proper based on the expert opinion