Accounting Policies of Knowledge Marine & Engineering Works Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

1.1. Basis of Preparation of Financials Statement:

The Financial Statements are prepared in accordance with Indian Accounting Standards (hereinafter referred to as the
"Ind AS”) as notified under Section 133 of the Companies Act, 2013 ("Act”) read with Companies (Indian Accounting
Standards) Rules, 2015 ("Rules”), each as amended, and the other relevant provisions of the Act and Rules thereunder.

These Ind AS financial statements for the year ended March 31,2025 are the first financials with comparatives prepared
under Ind AS. For all previous periods including the year ended March 31,2024 the Company had prepared its financial
statements in accordance with the accounting standards notified under Companies (Accounting Standard) Rule, 2006,
as amended and other relevant provisions of the Act (hereinafter referred to as the ''Previous GAAP'') used for its statutory
reporting requirement in India

The Ind AS financial statements have been prepared on accrual and going concern basis. The accounting policies are
applied consistently to all the periods and presented in the Ind AS financial statements, including the preparation of the
opening Ind AS Balance Sheet as at April 01,2023 being the ''date of transition to Ind AS''.

The Company''s presentation and functional currency is in the Indian Rupees (Rs.). All figures appearing the financial
statements are rounded off to the Rupee, except where otherwise indicated

Authorisation of Ind AS financial statements: The conversion of the financial statements and relevant Books of
Accounts of the Company from Previous GAAP to Ind AS for the year ended March 31,2025, were approved by the Board
of Directors and were authorized for issue in accordance with a resolution of the Board of Directors in its meeting held
on October 21,2024.

Items included in the Ind AS financial statements of the Company are measured using the currency of the primary
economic environment in which the entity operates (''the functional currency''). The company''s Ind AS financial
statements are presented in Indian Rupee (Rs.), which is also the Company''s functional and presentation currency. All
amounts in these Ind AS financial statements, except Earnings per share amounts and unless as stated otherwise, have
been rounded off to two decimal places and have been presented and rounded off in in lakhs.

1.2. Historical cost Convention

The Ind AS financial statements have been prepared on a historical cost basis, except for the following:

1. Certain financial assets and liabilities including derivative instruments are measured at fair value.

2. Assets held for sale-measured at fair value less costs to sell

3. Defined benefit plans- plan assets measured at Fair value.

1.3. Uses of Estimates

The preparation of the Ind AS Financial Statements in conformity with the recognition and measurement principles of
Ind-AS Rules which requires the Management to make estimates and assumptions considered in the reported amounts
of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The
Management believes that the estimates used in preparation of the Ind AS Financial Statements are prudent and
reasonable. Future results could differ due to these estimates and the differences between the actual results and the
estimates are recognised in the periods in which the results are known / materialised.

Revisions to accounting estimates are recognized prospectively in the Statement of Profit and Loss in the period in
which the estimates are revised and in any future periods affected.

Critical estimates and judgements

This note provides an overview of the areas that involved a higher degree ofjudgement or complexity, and 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 Ind AS financial statements

The areas involving critical estimates or judgement are:

Estimation of Defined benefit obligation - refer note 3 to the additional notes to financial statement
Useful lives of property, plant and equipment- refer note 1.6

1.4. Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/ non-current classification.

All the assets and liabilities have been classified as current/non-current as per the Company''s normal operating cycle
and other criteria set out in Division II to Schedule III of the Companies Act, 2013.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash
equivalents. Based on the nature of activities of the Company and the normal time between acquisition of assets and
their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as current and non-current.

1.5. Foreign Currencies

(i) Functional and presentation currency

The Company''s Ind AS financial statements are presented in Indian Rupee (Rs.), which is also the Company''s
functional and presentation currency.

(ii) Transactions and Balances

Transactions in foreign currencies are translated into functional currency using the exchange rate at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation of monetary assets and liabilities denominated in foreign currencies at the yearend exchange rates
are generally recognised in Profit or loss. They are deferred in Equity, if they relate to qualifying cash flow hedges.
A monetary item for which settlement is neither planned nor likely to occur in the foreseeable future is considered
as a part of the Entity''s Net Investment in those foreign operations.

Foreign exchanges differences regarded as an adjustment to borrowing costs are presented in the statement of
Profit and loss, within finance cost. All other foreign exchange gains and losses are presented in the Statement of
Profit and loss on a net basis within other gains/ (losses).

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. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss
arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the

gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or
loss is recognised in Other Comprehensive Income or profit or loss are also recognised in Other Comprehensive
Income or profit or loss, respectively).

Exchange differences relating to long term foreign currency monetary items incurred prior to April 1, 2023 are
accounted in terms of para D13AA of Ind AS 101 as under:

(i) In so far as they relate to the acquisition of a depreciable capital asset, such differences are added to/deducted
from the cost of such capital asset and depreciated over the balance useful life of the asset.

(ii) In other cases, such differences are accumulated in Foreign Currency Monetary Items” translation differences
account and amortised in the Statement of Profit and Loss over the balance useful life of the long-term foreign
currency monetary item.

1.6. Property, Plant and Equipment

Free hold land is carried at historical cost. All other items of Property, Plant and Equipment are stated at cost less
accumulated depreciation and impairment losses, if any. Historical cost includes expenditure that is directly attributable
to the acquisition of the item.

The cost of Property, Plant and equipment comprises its purchase price net of any trade discounts and rebates, any import
duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable
expenditure including brokerage and start-up costs on making the asset ready for its intended use, other incidental
expenses and interest on borrowings attributable to acquisition of qualifying assets up to the date the asset is ready for
its intended use.

Such cost includes the cost of replacing part of the plant and equipment and borrowing costs for long-term construction
projects if the recognition criteria are met.

When significant parts of plant and equipment are required to be replaced at intervals, Company depreciates them
separately based on their specific useful lives.

When major repairs are conducted, its cost is recognized in the carrying amount of the Plant and Equipment as a
replacement, if the recognition criteria are satisfied. All other repairs and maintenance costs are recognized in profit or
loss as incurred.

Capital work in progress, Plant and Equipment is stated at cost, net of accumulated depreciation and accumulated
impairment losses, if any.

Drydocks are considered as component of fleet with estimated useful lives different than the main component of fleet.
Cost relating to drydock which is mandatorily required to be carried out as per the Classification Rules and Regulations
is recognized in the carrying amount of ship and is amortised over 2.5 years.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and
equipment recognized as at April 1,2023 measured as per the previous GAAP and use that carrying value as the deemed
cost of the Property, Plant and equipment.

Depreciation on Property, Plant and equipment is provided to the extent of depreciable amount on the Straight Lime
Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II of the Companies
Act, 2013, except in respect of Vessels, where useful life is considered as under based on technical evaluation:

An item of Property, Plant and Equipment and any significant part initially recognised is derecognised upon disposal or
when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the
Asset (calculated as the difference between the net disposal proceeds and the carrying amount of the Asset) is included
in the income statement when the asset is derecognised.

The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each
financial year end and adjusted prospectively, if appropriate.

Assets costing less than '' 25,000/- are fully depreciated in the year of capitalization.

1.7. Impairment of non-financials assets

Non-financial assets other than inventories and non-current assets held for sale are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset''s recoverable amount. The recoverable amount is
higher of Asset''s or Cash Generating Units (CGU) fair value less costs of disposal and its value in use. Recoverable amount
is determined for an individual asset, unless the asset does not generate cash flows that are largely independent of those
from other assets or group of assets.

When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is
written down to its recoverable amount.

1.8. Investment Property

Since there is no change in the functional currency, the company has elected to continue with the carrying value for all
of its investment property as recognised in its Indian GAAP. Ind AS Financial Statements as deemed cost at the transition
date, viz., 1 April 2023.

Investment Property is property (land or a building- or a part of a building) held either to earn rental income or for capital
appreciation or for both, but not for sale in the ordinary course of business, use in production or supply of goods or
services or for administrative purposes.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition,
investment properties are stated at cost less accumulated depreciation and accumulated impairment loss, if any.

The Company Office Building is under WIP and during the current year the office was not ready to use, therefore,
depreciation has not been considered till the year end. The building/office would be used for self-occupation and not
for investment purpose.

Investment properties are derecognised either when they have been disposed of or when they are permanently
withdrawn from use and no future economic benefit is expected from their disposal.

The difference between the net disposal proceeds and the carrying amount of the asset is recognised in profit or loss in
the period of derecognition.

1.9. Investment in Subsidiaries

Investment in equity shares of subsidiaries are recorded at cost and reviewed for impairment at each reporting date.

1.10. Inventories

Bunker and Lubes on vessels are valued at lower of cost and Net Realisable Value ascertained on First in First out basis.

1.11. Cash and Cash Equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents includes cash in hand and at bank
in current and foreign currency accounts, deposit held at call with financial institution, other short term, highly liquid
investments with original maturities of within twelve months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value, and bank overdrafts having debit balances. Bank
Overdrafts with debit balance as closing figure are shown cash and cash equivalent in current assets in Balance sheet.

1.12. Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated based on the available
information.

1.13. Taxes on Income

Tax expenses comprise both current and deferred tax

(a) Current Tax

Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted, by the end of reporting period.

Current Tax items are recognised in co-relation to the underlying transaction either in the Statement of Profit and
Loss, other comprehensive income or directly in equity.

(b) Deferred Tax

Deferred tax is provided using the Balance Sheet method on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits
and any unused tax losses. Deferred tax assets 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 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 tax asset to be
utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent
that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the
asset is realised or the liability is settled, based on tax rates and tax laws that have been enacted or substantively
enacted at the reporting date.

Deferred Tax items are recognised in co-relation to the underlying transaction either in the Statement of Profit and
Loss, other comprehensive income or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax
assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation
authority.

(c) Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) is not applicable to the Company as the Company pays tax as per section 115 BAA
of income tax where MAT is not applicable to the company opting to pay the tax under section 115BAA of the
Income Tax Act 1961.

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Mar 31, 2024

NOTE - ACorporate Information

Knowledge Marine & Engineering WorksLimited(Formerly known as Knowledge Marine & Engineering Works Private Limited), having registered office at Office no. 402, Sai Samarth Business Park, Deonar Village Road, Govandi (East), Mumbai - 400088 Maharashtra, was incorporated on under Companies Act, 2013 with the Registrar of Companies, engaged in the business of providing Dredging Services, Owning, Chartering/Hiring along with manning, operation and technical maintenance of Marine Crafts, Repairs/Maintenance of Marine Crafts and Marine Infrastructure and allied works in India. Company has been changed from Private Limited Company to Limited company on 31st January, 2020. Company is listed on SME Platform of Bombay Stock Exchange w.e.f. 22nd March, 2021.

SIGNIFICANT ACCOUNTING POLICIES1.1. Basis of Preparation

The Financial Statements of the Company have been prepared and presented under the historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act 2013 (the "Act”) [including statutory modification(s), re-enactment(s) thereof for the time being in force] and the Generally Accepted Accounting Principles in India(GAAP) andcomply with the Accounting Standards notified under section 133 of the Act read with the Companies (Accounts) Rules 2014, as amended ("Rules”) and the relevant and applicable provisions of the Actto the extend applicable.

Accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

All the Assets and liabilities have been classified as current or non-current as per criteria set out in Schedule III to the Act. Based on the nature of services and their realisation in cash and cash equivalents, the Company has ascertained its operation cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

1.2. Uses of Estimates

The preparation of the Financial Statements in conformity with Indian Accounting Standard requires Management to make Judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosures relating to contingent assets and liabilities at the end of the reporting period. Example of such estimates includes provision for doubtful debts, income taxes etc. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets and liabilities in future period.

1.3. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

Revenues from contract services provided during the year are recognised, as and when the services are rendered, based on the agreements/arrangements with the concerned parties. Unbilled revenue is recognized to the extent not billed at the year end. The company collects GST on behalf of the government and, therefore, it is not an economic benefit flowing to the company. Hence, it is excluded from Revenue.

Claims for damages etc. against the contractors/service providers are recognized ondue basis, as and when the certainty to receive the claim is ascertained.

Interest is recognized on a time proportion basis taking into account the amount outstanding and theapplicable interest rate.

1.4. Inventories:

As Company is into service industry, no inventories are there with the company. During the course of business material required by the company as input were consumed during the year and were expensed out accordingly.

1.5. Property, Plant, Equipment & Intangible Assets

Property, Plant, Equipment & Intangible Assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Cost comprises purchase price, borrowing costs, if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any subsidy/ reimbursement/ contribution received for installation and acquisition of any Property, Plant, Equipment & Intangible Assets is shown as deduction in the year of receipt. Capital work- in progress is stated at cost.

Subsequent expenditure related to an item of Property, Plant, Equipment & Intangible Assets is added to its book value only if it increasesthe future benefits from the existing asset beyond its previously assessed standard of performance. Allother expenses on existing fixed assets, including day-to-day repairs and maintenance expenditure andcost of replacing parts, are charged to the Statement of Profit and Loss for the period during whichsuch expenses are incurred.

Gains or losses arising from de-recognition of Property, Plant, Equipment & Intangible Assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets derecognized.

1.6. Depreciation

Depreciable amount of an item of property, plant and machinery, equipments, furniture is allocated on a systematic basis over its useful life. Depreciation on assets is provided on straight line method using the rates arrived at based on the useful lives estimated as prescribe in schedule II of the Companies Act 2013. The Company believes that straight line method reflects the pattern in which the asset''s future economic benefits are expected to be consumed by the Company.

Each part of an item of Property, Plant and Equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

Depreciation on fixed assets added/disposed off during the year/period is provided on pro-rata basis with reference to the date of addition/disposal. Individual assets costing upto Rs.5,000 are depreciated in full in the year of purchase.

Residual value and the useful life of an asset is reviewed at least at each financial year-end and, if expectations differ from previous estimates, the change(s) is accounted for as a change in an accounting estimate in accordance with Accounting Policies, Changes in Accounting Estimates and Errors. The estimated useful lives for the current and comparative periods are as follows:

Assets Class	Useful Lives (in years) -as per Companies Act 2013	Useful Lives (in years) -as estimated by the Company
Ship Computer Machinery Office Furniture Office Equipment	14 years	15- 20 years
	3Years	3Years
	8 Years	8 Years
	10 Years	10 Years
	8 Years	8 Years

1.7. Foreign Exchange Transactions/Translation

Transactions denominated in foreign currencies (if any) are recorded at the exchange rate prevailing on the date of transactions and any gain or loss on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

1.8. Taxes on Income

Tax expense comprises current and deferred tax. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India. The tax rates and tax Laws used to compute the amounts are those that are enacted, at the reporting date.

Deferred Taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets including the unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

Carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted for its appropriateness.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

1.9. Employee Benefits Defined Contribution plans:-

(i) Company''s contributions due / payable during the year towards provident fund are recognized in the profit and loss account. The Company has no obligation other than the contribution payable to the contribution payable to the provident fund.

(ii) Company has no policy of encashment and accumulation of leave. Therefore, no provision of Leave Encashment is being made.

(iii) Employee Gratuity Fund Scheme is the Defined Benefit Plan. Cost of providing benefits under the plan is determined on the basis of actuarial valuation at each year-end using the projected unit credit method. Actuarial gains and losses are recognized in full in the period in which they occur in the statement of profit and loss.

(iv) Short Term Employee Benefits if any, are paid along with salary and wages on a month to month basis, bonus to employees are charged to profit and loss account on the basis of actual payment on year to year basis.

1.10. Investment

Investments, which are readily realizable and intended to be held for not morethanone year from thedate on which such investments are made, are classifiedas current investments. All other investmentsare classified as long-term investments.

On initial recognition, all investments are measured at cost. Cost comprises purchaseprice and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determinedon an individual investment basis. Long term investments arecarried at cost. However, provision for diminution invalues ismadeto recognizead ecline other than temporary in the value of the investments.

On disposal of an investment, the difference between it''s carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

1.11. Borrowing costs

Borrowing cost includes interest and finance charges. Such costs directly attributable to the acquisition, construction

or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

1.12. Trade and other payables

These amounts represent liabilities for goods and services provided to the company prior to the end of financial year which are unpaid. The amounts are unsecured and presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method.

1.13. Financial Ratios

The Financial Ratios of the Company are as follows:

Sr. No.	Ratios	As on 31st March, 2024	As on 31st March, 2023
1.	Interest Coverage Ratio
	Numerator (EBIT)	4,034.5	6,475
	Denominator (Interest Expenses)	331.2	217
	Ratio	12.18	29.79
	% Change	(59.11)%
	Reason for Change	During the year some financial charges like Bank Guarantee charges and othercharges have been increased due to which finance cost for present year is increased and EBIT is also reduced as compared to previous year as turnover of the company has decreased which causes the decrease in interest coverage ratio as compared to previous year.
2.	Debt -Equity
	Numerator (Total Debt)	999.3	2,414
	Denominator (Shareholder Equity)	15,823.6	13,098
	Ratio	0.06	0.18
	% Change	66.66%
	Reason for Change	During the year debt has been repaid and no fresh debt has been taken.
3.	Net Profit Margin (%)
	Numerator (Net Profit after tax)	2,724.40	4,659.91
	Denominator (Revenue)	13,928.30	19,472.44
	Ratio	19.56	23.93
	% Change	(18.26)%
	Reason for Change	During the year, employee benefitexpenses and other expenses were marginally increased as compared to last year due to increase in CSR expenses, legal expenses and business promotion expenses. Further depreciation has also increased as compared to previous year due to increase in fixed assets.
4.	Operating Profit Margin (%)
	Numerator (OperatingProfit Income)	5,208.40	7,575.6
	Denominator (Revenue)	13,928.30	19,472.4
	Ratio	0.37	0.39
	% Change	(3.88)%
	Reason for Change	Marginally Reduced
5.	Trade Receivable Turnover Ratio
	Numerator (Credit Sales)	13,928.31	19,472.44
	Denominator (Average Debtors)	4,247.08	3,050.09
	Ratio	3.28	6.38
	% Change	(48.59)%
	Reason for Change	Due to increase in receivables of the Company from last two years and decrease in revenue in current FY.

Sr. No.	Ratios	As on 31st March, 2024	As on 31st March, 2023
6.	Total Debts to Total Assets Ratio
	Numerator (Total Debts)	999.3	2,413.58
	Denominator (Total Assets)	19,496.50	20,214.39
	Ratio	0.05	0.12
	% Change	58.33%
	Reason for Change	During the year debt has been repaid and no fresh debt has been taken.
7.	Long Term Debts to Working Capital
	Numerator (Long term debts)	309.2	420.58
	Denominator (Working capital)	6,117.86	6,349.73
	Ratio	0.05	0.07
	% Change	(28.57)%
	Reason for Change	Long term debts are repaid during the year from retained earnings. And also current ratio is improved.
8.	Inventory Turnover ratio	NA as the Company is into service industry
9.	Debt Service Coverage Ratio
	Numerator (Net Operating Income)	4,562.10	6,877
	Denominator (Total Debt Service)	1,242.90	908.3
	Ratio	4.19	8.34
	% Change	(49.76)%
	Reason for Change	Repayment of debt from retained earnings has been initiated by the company therefore ratio has been reduced in comparison to operating profit.
10.	Return on Equity Ratio
	Numerator (Net Income)	2,724.4	4,660
	Denominator (Shareholders Equity)	15,823.64	13,098
	Ratio	0.17	0.36
	% Change	(52.77)%
	Reason for Change	During the year turnover of the company is reduced due to which profit in the numerator is decreased.
11.	Return on Capital Employed
	Numerator (EBIT)	4034.5	6,475
	Denominator (Capital Employed)	16,665.44	13,930.72
	Ratio	0.24	0.46
	% Change	(47.82)%
	Reason for Change	During the year turnover of the company is reduced due to which profit in the numerator is decreased.
12.	Trade Payables Turnover Ratio
	Numerator (Net Credit Purchase)	8,719.95	11,896.8
	Denominator (Average Creditors)	1,839.6	1,566.9
	Ratio	4.74	7.59
	% Change	(37.55)%
	Reason for Change	Payment to creditors have been done within due date.
13.	Net Capital Turnover Ratio
	Numerator (Total Sales)	13,928.31	19,472.44
	Denominator (Shareholders Equity)	15,823.64	13,098.2
	Ratio	0.88	1.49
	% Change	(40.79)%
	Reason for Change	Reduction in turnover of the company as compared to last financial year
14.	Current Ratio
	Numerator (Current Assets)	8,948.9	12,633.40
	Denominator (Current Liabilities)	2,831	6,283.67
	Ratio	3.16	2.01
	% Change	57.22%
	Reason for Change	Excess cash flow to the company has been invested in Short term FD''s therefore, current ratio has been improved.

1.14. Foreign Currency Transactions:

During the year under review, the Company has earned Foreign Exchange in USD 15,39,993 amounting to Rs. 11,72,46,152/- and the foreign exchange outflow during the year under review was USD 10,34,568 amounting to Rs. 8,63,81,409/- only.

1.15. Earnings Per Share

Basic earnings per share 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.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all diluting potential equity shares.

1.16. Provisions, Contingent Liabilities & Contingent Assetsa) Provisions

A provision is recognized only when there is present obligations as a result of past event and when a reliable estimate of the amount of obligation can be made. These estimates are reviewed at each reporting date and adjusted toreflect the current best estimates.

b) Contingent Liabilities

Contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

1.17. LeasesWhere the company is Lessee

Assets taken on lease, under which the lessor effectively retains all the risks and rewards of ownership, are classified as operating lease. Operating lease payments are recognized as expense in the profit and loss account on a straight-line basis over the lease term.

Where the company is Lessor

Assets given on operating leases are included under fixed assets. Rent (lease) income is recognized in the statement of Profit and Loss on accrual basis. Direct costs, including depreciation are recognized as an expense in the statement of profit and loss.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

1.1. Basis of Preparation

The Financial Statements of the Company have
been prepared and presented under the historical
cost convention, on accrual basis of accounting and
in accordance with the provisions of the Companies
Act 2013 (the Act) and the accounting principles
generally accepted in India and comply with the
Accounting Standards notified under section 133
of the Companies act 2013 read with Rules of the
Companies (accounts) rules 2014, (as amended) and
the relevant provisions of the Companies Act, 2013
to the extend applicable.

Accounting policies adopted in the preparation of
financial statements are consistent with those of
previous year.

All the Assets and liabilities have been classified
as current or non-current as per criteria set out in
Schedule III to the Act. Based on the nature of services
and their realisation in cash and cash equivalents,
the Company has ascertained its operation cycle as
twelve months for the purpose of current or non¬
current classification of assets and liabilities.

1.2. Uses of Estimates

The preparation of the Financial Statements in
conformity with Indian Accounting Standard
requires Management to make Judgments,
estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities
and the disclosures relating to contingent assets and
liabilities at the end of the reporting period. Example
of such estimates includes provision for doubtful
debts, income taxes etc. Although these estimates
are based on the management''s best knowledge

of current events and actions, uncertainty about
these assumptions and estimates could result in the
outcomes requiring a material adjustment to the
carrying amounts of assets and liabilities in future
period.

1.3. Revenue Recognition

Revenue is recognized to the extent that it is
probable that the economic benefits will flow to the
company and the revenue can be reliably measured.

Revenues from contract services provided
during the year are recognised, as and when the
services are rendered, based on the agreements/
arrangements with the concerned parties. Unbilled
revenue is recognized to the extent not billed at
the year end. The company collects GST on behalf
of the government and, therefore, it is not an
economic benefit flowing to the company. Hence, it
is excluded from Revenue.

Claims for damages etc. against the contractors/
service providers are recognized on due basis,
as and when the certainty to receive the claim is
ascertained.

Interest is recognized on a time proportion basis
taking into account the amount outstanding and
the applicable interest rate.

1.4. Inventories:

As company is into service industry, no inventories
are there with the company. During the course of
business material required by the company as input
were consumed during the year and were expensed
out accordingly.

1.5. Tangible Fixed Assets

Fixed Assets are stated at cost, net of accumulated
depreciation and accumulated impairment losses, if
any. Cost comprises purchase price, borrowing costs, if
capitalization criteria are met and directly attributable
cost of bringing the asset to its working condition
for the intended use. Any subsidy/ reimbursement/
contribution received for installation and acquisition
of any fixed assets is shown as deduction in the year
of receipt. Capital work- in progress is stated at cost.

Subsequent expenditure related to an item of fixed
assets is added to its book value only if it increases
the future benefits from the existing asset beyond
its previously assessed standard of performance. All
other expenses on existing fixed assets, including
day-to-day repairs and maintenance expenditure
and cost of replacing parts, are charged to the
Statement of Profit and Loss for the period during
which such expenses are incurred.

Gains or losses arising from de-recognition of fixed
assets are measured as the difference between the
net disposal proceeds and the carrying amount of
the assets derecognized.

1.6. Depreciation

Depreciable amount of an item of property, plant
and machinery, equipments, furniture is allocated on
a systematic basis over its useful life. Depreciation on
assets is provided on straight line method using the
rates arrived at based on the useful lives estimated as
prescribe in schedule II of the Companies Act 2013.
The Company believes that straight line method
reflects the pattern in which the asset''s future
economic benefits are expected to be consumed by
the Company.

with a cost that is significant in relation to the total
cost of the item is depreciated separately.

Depreciation on fixed assets added/disposed
off during the year/period is provided on pro¬
rata basis with reference to the date of addition/
disposal. Individual assets costing upto Rs.5,000 are
depreciated in full in the year of purchase.

Residual value and the useful life of an asset is
reviewed at least at each financial year-end and,
if expectations differ from previous estimates,
the change(s) is accounted for as a change in an
accounting estimate in accordance with Accounting
Policies, Changes in Accounting Estimates and
Errors. The estimated useful lives for the current and
comparative periods are as follows:

1.7. Foreign Exchange Transactions/Translation

Transactions denominated in foreign currencies (if
any) are recorded at the exchange rate prevailing
on the date of transactions and any gain or loss on
account of exchange difference either on settlement
or on translation is recognized in the Statement of
Profit and Loss.

1.8. Taxes on Income

Tax expense comprises current and deferred tax.
Current Income Tax is measured at the amount
expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961 enacted
in India. The tax rates and tax Laws used to compute
the amounts are those that are enacted, at the
reporting date.

Deferred Taxes reflect the impact of timing
differences between taxable income and accounting
income originating during the current year and
reversal of timing differences for the earlier years.
Deferred tax is measured using the tax rates and the
tax laws enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable
timing differences. Deferred tax assets including
the unrecognized deferred tax assets, if any, at
each reporting date, are recognized for deductible
timing differences only to the extent that there is
reasonable certainty that sufficient future taxable
income will be available against which deferred tax
assets can be realized.

Carrying amount of deferred tax assets are reviewed
at each reporting date and are adjusted for its
appropriateness.

Deferred tax assets and deferred tax liabilities are
offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and
deferred tax assets and deferred taxes relate to the
same taxable entity and the same taxation authority.

1.9. Employee Benefits

Defined Contribution plans:-

(i) Company''s contributions due / payable during
the year towards provident fund are recognized
in the profit and loss account. The Company
has no obligation other than the contribution
payable to the contribution payable to the
provident fund.

(ii) Company has no policy of encashment and
accumulation of leave. Therefore, no provision
of Leave Encashment is being made.

(iii) Employee Gratuity Fund Scheme is the Defined
Benefit Plan. Cost of providing benefits under
the plan is determined on the basis of actuarial
valuation at each year-end using the projected
unit credit method. Actuarial gains and losses
are recognized in full in the period in which they
occur in the statement of profit and loss.

(iv) Short Term Employee Benefits if any, are paid
along with salary and wages on a month to

month basis, bonus to employees are charged
to profit and loss account on the basis of actual
payment on year to year basis.

1.10. Investment

Investments, which are readily realizable and
intended to be held for not more than one year
from the date on which such investments are
made, are classified as current investments. All other
investments are classified as long-term investments.

On initial recognition, all investments are measured
at cost. Cost comprises purchase price and directly
attributable acquisition charges such as brokerage,
fees and duties.

Current investments are carried in the financial
statements at lower of cost and fair value determined
on an individual investment basis. Long term
investments are carried at cost. However, provision
for diminution in values is made to recognize a
decline other than temporary in the value of the
investments.

On disposal of an investment, the difference

between it''s carrying amount and net disposal
proceeds is charged or credited to the statement of
profit and loss.

1.11. Borrowing costs

Borrowing cost includes interest and finance
charges. Such costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalized
as part of the cost of the respective asset. All other
borrowing costs are expensed in the period they
occur.

1.12. Trade and other payables

These amounts represent liabilities for goods and
services provided to the company prior to the end
of financial year which are unpaid. The amounts
are unsecured and presented as current liabilities
unless payment is not due within 12 months after
the reporting period. They are recognized initially
at their fair value and subsequently measured at
amortized cost using the effective interest method.

1.14. Foreign Currency Transactions:

The Company has not earned any foreign exchange during the year. However, the foreign exchange outflow during
the period under this report was Rs. 937.87 Lakhs (11,65,258 USD and 7,350 SGD).

1.15. Earnings Per Share

Basic earnings per share 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.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects
of all diluting potential equity shares.