2.21 Provisions, Contingent liabilities and Contingent
assets

Provisions

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

The expense relating to a provision is presented in the
statement of profit and loss.

If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the
liability. When discounting is used, the increase in the
provision due to the passage of time is recognized as
a finance cost. Provisions are reviewed at each balance
sheet date.

Contingent liabilities and assets

Contingent liabilities are disclosed in respect of
possible obligation that arise from past events but
their existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future
events not wholly within the control of the Company or
where any present obligation cannot be measured in
terms of future outflow of resources or where a reliable
estimates of the obligation cannot be made.

A contingent assets are disclosed where an inflow
of economic benefit is probable. An entity shall not
recognize the contingent assets unless the recovery is
virtually certain.

2.22 Financial instruments

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

Initial recognition

The Company recognizes financial assets and
financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial
assets and liabilities are recognized at fair value on
initial recognition. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and financial liabilities that are classified not at
fair value through profit or loss are added to or deducted
from, the fair value on initial recognition.

Subsequent measurement
A. Financial Assets

For the purpose of subsequent measurement,
financial assets are classified in three broad
categories:

(i) Financial Assets carried at amortized cost

A financial asset is subsequently measured
at amortized cost if it is held within a business
model whose objective is to hold the asset 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.

(ii) Financial assets at fair value through other
comprehensive income

A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business
model 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.

(iii) Financial assets at fair value through profit
or loss

A financial asset which is not classified in
any of the above categories are subsequently
fair valued through profit or loss.

Investment in Subsidiaries, Associates and
Joint ventures

On initial recognition, these investments are
recognized at fair value plus any directly
attributable transaction cost. Subsequently,
they are measured at cost in accordance with
Ind AS 27 - 'Separate Financial Statements’.

Equity investments (other than investments
in subsidiaries, associates and joint
venture)

All equity investments falling within the scope
of Ind-AS 109 are mandatorily measured at
Fair Value through Profit and Loss (FVTPL)
with all fair value changes recognized in the
Statement of Profit and Loss. The Company
has an irrevocable option of designating
certain equity instruments as FVOCI. Option
of designating instruments as FVOCI is done
on an instrument-by-instrument basis. The
classification made on initial recognition
is irrevocable. If the Company decides to
classify an equity instrument as FVOCI, then
all fair value changes on the instrument
are recognized in Other Comprehensive
Income (SOCI). Amounts from SOCI are not
subsequently transferred to profit and loss,
even on sale of investment.

B. Financial liabilities

Financial liabilities are subsequently carried
at amortized cost using the effective interest
method. For trade and other payables maturing
within one year from the balance sheet date, the

carrying amounts approximate fair value due to
the short maturity of these instruments.

Derecognition

A. Financial Assets

A financial asset (or, where applicable, a part
of a financial asset) is primarily derecognized
when:

(i) The contractual right to receive cash
flows from the assets have expired, or

(ii) The Company has transferred its right
to receive cash flow from the financial
assets and substantially all the risks
and rewards of ownership of the asset
to another party.

B. Financial liabilities

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

Reclassification of financial assets and financial
liabilities

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.

2.23 Discontinued operations and non-current assets held
for sale

Discontinued operation is a component of the Company
that has been disposed of or classified as held for sale
and represents a major line of business.

Non-current assets and disposal groups are classified
as held for sale if their carrying amount is intended to
be recovered principally through a sale (rather than
through continuing use) when the assets (or disposal
group) is available for immediate sale in its present
condition subject only to terms that are usual and
customary for sale of such assets (or disposal group)
and the sale is highly probable and is expected to
qualify for recognition as a completed sale within one
year from the date of classification.

Non-current assets and disposal groups classified as
held for sale are measured at lower of their carrying
amount and fair value less costs to sell.

2.24 Foreign currencies

i. Initial recognition

Foreign currency transactions are recorded in
the reporting currency, by applying to the foreign
currency amount the exchange rate between the
reporting currency and the foreign currency at the
date of the transaction.

ii. Conversion

Foreign currency monetary items are retranslated
using the exchange rate prevailing at the reporting
date.

iii. Exchange differences

The Company accounts for exchange differences
arising on translation/ settlement of foreign
currency monetary items by recognizing the
exchange differences as income or as expenses
in the period in which they arise.

Non-monetary items that are measured in terms of
historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial
transactions.

2.25 Fair Value Measurement

The Company measures certain financial instruments
at fair value at each reporting date.

Fair value is the price 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. The fair value measurement is
based on the presumption that the transaction to sell
the asset or transfer the liability takes place either:

- In the principal market for the asset or liability or

- In the absence of a principal market, in the most
advantageous market for the asset or liability

A 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 Entity 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 Standalone 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 identical 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 the purpose of fair value disclosures, the Company
has determined classes of assets & liabilities on the
basis of the nature, characteristics and the risks of the
asset or liability and the level of the fair value hierarchy
as explained above.

2.26 Cash Flow Statement

Cash flow are reported using indirect method whereby
a profit before tax is adjusted for the effect for the
effects of transaction of non-cash nature. The cash
flow from operating, investing and financing activities
of the Company are segregated.

2.27 Recent Pronouncements

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. During the year ended
March 31,2025, MCA has notified Ind AS AS 116-Leases,
relating to sale and lease back transactions, applicable
from April 01, 2024. The Company has assessed that
there is no significant impact on its financial statements.
On May 09, 2025, MCA notified the amendments to Ind
AS 21- Effects of changes in Foreign Exchange Rates.
These amendments aim to provide clearer guidance
on assessing currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The amendments are effective for
annual periods beginning on or after April 01,2025. The
Company is currently assessing the probable impact of
these amendments on its financial statements.

| NOTE 3 | CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS

The preparation of Standalone financial statements in
conformity with Indian Accounting Standards (Ind AS)
requires management to make estimates and assumptions
that affect the reported balances of assets and liabilities
and disclosure of contingent liabilities at the date of
Standalone financial statements and results of operations
during the reporting period. The Management believes that
the estimates used in preparation of Standalone financial
statements are prudent and reasonable. Differences
between actual results and estimates are recognized in the
year in which the results are shown /materialized.

The Company assesses the remaining useful lives of
Intangible assets and property, plant and equipment on the
basis of internal technical estimates. Management believes
that assigned useful lives are reasonable.

i. Estimated useful life of intangible asset and property,
plant and equipment

The Company assesses the remaining useful lives of
Intangible assets and property, plant and equipment on
the basis of internal technical estimates. Management
believes that assigned useful lives are reasonable.

ii. Income taxes

Deferred tax assets are recognized for the unused
tax credit to the extent that it is probable that taxable
profits will be available against which the losses will be
utilized. Significant management judgment is required
to determine the amount of deferred tax assets that
can be recognized, based upon the likely timing and the
level of future taxable profits.

iii. Defined benefit plans and Other Long Term Benefits

The cost of the defined benefit plan and other long
term benefit and their present value 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 most sensitive is discount
rate. Future salary increases and gratuity increases are
based on expected future inflation rates.

iv. Contingent liabilities

Management judgment is required for estimating
the possible outflow of resources, in respect of
contingencies/claim/litigations against the Company
as it is not possible to predict the outcome of pending
matters with accuracy. The management believes the
estimates are reasonable and prudent.

v. Revenue Recognition

The Company uses the stage of completion method
using survey method and /or on completion of physical
proportion of the contract work to measure progress
towards completion in respect of construction
contracts. This method is followed when reasonably
dependable estimates of costs applicable to various
elements of the contract can be made. Key factors
that are reviewed in estimating the future costs to
complete include estimates of future labour costs and
productivity efficiencies.

Because the financial reporting of these contracts
depends on estimates that are assessed continually
during the term of these contracts, recognized revenue
and profit are subject to revisions as the contract
progresses to completion. When estimates indicate
that a loss will be incurred, the loss is provided for in
the period in which the loss becomes probable.

vi. Provision for doubtful receivables and contract assets

In assessing the recoverability of the trade receivables
and contracts assets, management's judgement
involves consideration of aging status, evaluation of
litigations and the likelihood of collection based on the
terms of the contract.

vii. Estimation of net realizable value of inventories

Inventories are stated at the lower of cost and Fair
value. In estimating the net realizable value / Fair value
of Inventories the Company makes an estimate of
future selling prices and costs necessary to make the
sale.

Contingent Assets

The status of various project claims in arbitrations is as under :

(a) The Company had initiated arbitral proceedings against the Uttar Pradesh Public Works Department (UP PWD) for
compensation for ' 851.31 Lakhs (including interest) towards extra cost incurred on procurement of different material,
distant source in relation to the project "rehabilitation Road (Gomat) under Uttar Pradesh State Road Project. The arbitral
Tribunal has pronounced its unanimous award dt. March 07, 2014 for ' 702.31 Lakhs (including interest) in favors of the
Company. The respondent UP PWD has preferred objection against the aforesaid award before the Distt. Judge Mathura
and the case was transferred to The Ld. Judge Commercial Court Agra and the Ld. Judge Commercial Court Agra had
rejected the petition of UP PWD on January 30, 2020 and the petition has been filed by UP PWD in Hon’ble Allahabad High
Court against Commercial Court order and Hon’ble court has dismissed the case by its order dated January 12, 2023 for
non presence of appellant (UP PWD) even revised call, UP PWD again filed application for recall of this order. Treatment of
the same will be done on final settlement.

(b) Further, the Company has filed five arbitration claims including claims for delay damages and interest which are pending at
arbitration stage. The same will be accounted for on final settlement.

| NOTE 441 DISCLOSURE PURSUANT TO INDIAN ACCOUNTING STANDARD-115 “ REVENUE FORM CONTRACTS WITH
CUSTOMERS"

(a) Contracts with customers

The Company has recognized ' 5,49,022.49 Lakhs (P.Y. ' 7,69,451.66 Lakhs) as revenue from contracts with customers
during the year.

(b) Disaggregation of Revenue

Segments have been identified in accordance with Ind AS-108 on operating segments considering the risk or return profile
of the business, As required under Ind AS 108, The Chairman and Managing directors of the Company have been identified
as The Chief Operating Decision Maker (CODM). The Chief Operating Decision Maker also monitors the operating results
as two segment for the purpose of making decisions about resource allocation and performance assessment and hence,
there are no additional disclosures to be provided other than those already provided in the financial statements.

The Company’s operations consist of infrastructure development and construction/project activities, Water supply projects
in India, which in the context of Ind AS 108 "Operating Segments" is considered as identifiable segments. All the activities
of the Company revolve around these business.

(c) Contract Balances

Details of trade receivables, contract assets and contract liabilities arising from the contracts with customers are given
below:

| NOTE 451 FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial
liabilities is to manage finances for the Company’s operations. The Company principal financial asset includes loan , trade and
other receivables, and cash and short-term deposits that arise directly from its operations.

The Company’s activities are exposed to market risk, credit risk and liquidity risk.

I. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market prices comprise three types of risk: currency rate risk, interest rate risk and other price risks, such
as equity price risk and commodity price risk. Financial instruments affected by market risk include loans and borrowings,
deposits, investments, and derivative financial instruments.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. In order to optimize the Company’s position with regard to interest income and interest expenses
and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by
balancing the proportion of the fixed rate and floating rate financial instruments in its total portfolio.

(b) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company does not operates internationally and as the Company has not obtained any foreign
currency loans but import certain machineries and have foreign currency trade payables outstanding and is therefore,
exchange to foreign exchange risk

The Company does not hedges its exposure of foreign currency risk.

The carrying amounts of the Company’s foreign currency denominated monetary liabilities at the end of the reporting
period as follows:

(c) Price Risk

The Company exposure to equity securities price risk arises from the investments held by company and classified in the
balance sheet at fair value through profit and loss. The Company does not have any investments whose value will be based
on the market observable input at the current year end and previous year which are held for trading. Therefore no sensitivity
is provided.

II. Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial
loss to the Company. To manage this, the Company periodically assesses the financial reliability of customers, taking into
account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts
receivable.

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant
increase in credit risk on an on going basis through each reporting period. To assess whether there is significant increase
in credit risk, it considers reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet
its obligation

(iv) Significant increase in credit risk an other financial instruments of the same counterparty

(v) significant changes in the value of collateral supporting the obligation or in the quality of third party guarantees or
credit enhancements

The Company major exposure is from trade receivables, which are unsecured and derived from external customers. Credit
risk on cash and cash equivalents is limited as we generally invest in deposits with banks and financial institutions with
high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment
in deposit with Bank for specified time period

The history of Trade Receivable shows a negligible allowance for bad & doubtful debts.

The Company uses a provision matrix to determine impairment loss on portfolio of its trade receivable. The provision matrix
is based on its historically observed default data over the expected life of the trade receivable and is adjusted for forward¬
looking estimates. At every reporting date, the historical observed default rates are updated and changes in forward-looking
estimates are analysed. In case of probability of non collection, default rate is 100%

III. Liquidity Risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid
funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires
funds both for short term operational needs as well as for long term capital expenditure growth project. The Company
generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term
investments provide liquidity in the short-term and long-term. The Company has established an appropriate liquidity
risk management framework for the management of the Company’s short, medium and long-term funding and liquidity
management 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 matching the
maturity profiles of financial assets and liabilities.

(i) Fair Value Hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that
are (A) recognized and measured at fair value and (B) measured at amortized cost and for which fair values are disclosed
in financial statements. To provide an indication about the reliability of inputs used in determining fair values, the group has
classified its financial instruments into three levels prescribed under the accounting standards.

The following table provides the fair value measurement hierarchy of company’s asset and liabilities, grouped into Level 1
to Level 3 as described below

Level 1: Quoted (unadjusted) market prices in active markets for identical 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