Accounting Policies of Raunaq International Ltd. Company

Mar 31, 2025

2. MATERIAL ACCOUNTING POLICIES

This note provides a list of the material accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a. STATEMENT OF COMPLIANCE

The financial statements of the Company have been prepared in compliance with Indian Accounting
Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 (the Act) read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other relevant provisions of
the Act.

b. These financial statements have been prepared on a historical cost basis except for the following:-

• Certain Financial Assets and liabilities measured at fair value.

• Defined benefit plans - Plan assets measured at fair value.

2.2 FUNCTIONAL AND PRESENTATION CURRENCY

These financial statements are presented in Indian Rupees (INR) which is also the Company''s functional currency
and all amount are rounded to the nearest lakhs and two decimals thereof, except as stated otherwise.

2.3 USE OF ESTIMATES

The preparation of financial statements in accordance with Ind AS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported accounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates
are recognized in the period in which the estimates are known or materialized.

2.4 REVENUE RECOGNITION

The Company recognises revenue in accordance with Ind AS 115, Revenue from Contracts with Customers, which
outlines a five-step model for recognising revenue arising from contracts with customers. Revenue is recognised
upon the transfer of control of goods or services to customers in an amount that reflects the consideration the
Company expects to be entitled to in exchange for those goods or services.

a. REVENUE FROM SALE OF ALLOY STEEL FOR AUTO COMPONENTS

Revenue from trading activities involving alloy steel for auto components is recognised at a point in time
when control of the goods is transferred to the customer. This typically occurs upon delivery or as specified
in the terms of the contract. Revenue is measured net of returns, trade discounts, and indirect taxes (such as
Goods and Services Tax) collected on behalf of third parties.

b. REVENUE FROM SERVICES RENDERED UNDER FIXED-PRICE CONTRACTS

Revenue from service contracts with fixed consideration is recognised over time, as the performance
obligations are satisfied. The Company applies the output method, recognising revenue based on the value
of actual services performed and approved by the customer up to the end of the reporting period, relative to
the total services promised under the contract.

Where it is no longer probable that the outcome of a contract can be reliably estimated, revenue is recognised
only to the extent of costs incurred that are likely to be recoverable.

c. OTHER ITEMS OF REVENUE

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the
effective interest rate method.

Dividend income is recognised when the Company''s right to receive the payment is established.

Other items like extra items claim, insurance claims, any receipts on account of pending income tax, sales
tax, GST and excise duty assessments, where quantum of accruals cannot be ascertained with reasonable
certainty, are recognized as income only when revenue is virtually certain which generally coincides with
receipts.

2.5 PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment assets are carried at cost net of tax/duty credit availed less accumulated
depreciation and accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to
the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit
and Loss during the reporting period in which they are incurred.

The items of property, plant and equipment which are not yet ready for use are disclosed as Capital work-in¬
progress and are carried at historical cost.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount
is greater than its recoverable amount.

Property, Plant and Equipment are eliminated from the financial statements, either on disposal or when retired
from active use.

Gains and losses on disposal or retirement of assets are determined by comparing proceeds with carrying amount.
These are recognised in the Statement of Profit and Loss.

Depreciation is calculated using the straight line method to allocate their cost, net of their residual values on the
basis of useful life prescribed in Schedule II to the Act, which are also supported.

The residual values are not more than 5% of the original cost of the asset.

The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed
at end of each financial year and any changes there-in are considered as change in estimate and accounted
prospectively.

2.6 INTANGIBLE ASSETS (OTHER THAN GOODWILL)

Intangible assets are stated at cost less accumulated amortization and impairment loss, if any. Computer Software
for internal use which is primarily acquired is capitalized. Subsequently costs associated with maintaining such
software are recognised as expense as incurred. Cost of software includes licenses fees, cost of implementation,
system integration services etc. where applicable.

The Company amortises intangible assets (Computer Software) with a finite useful life using the straight line
method over a period of (3/5 years).

2.7 IMPAIRMENT OF ASSETS

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing of an asset is required, the Company estimates the asset
recoverable amount. An asset''s recoverable amount is the higher of an asset or Cash-generating unit (CGU) fair
value less cost of disposal and its fair value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other asset or group
of asset. 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.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessment of the time value of money and the risks specific to the
asset. In determining the fair value less cost of disposal, recent market transactions are taken in account. If no
such transactions can be identified, an appropriate valuation model is used. Impairment losses are recognised in
statement of profit and loss.

2.8 INVENTORIES

Raw material, stores, work-in-progress and traded goods are stated at the lower of cost and net realisable value.
However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost. Cost of inventories comprises all cost of purchase and other cost incurred
in bringing them to their present location and condition. The cost, in general, is determined under First In First Out
(FIFO) Method.

Contract cost incurred related to future activity of the contract are recognised as an asset provided it is probable
that they will be recovered during the contract price. Such cost represent the amount due from customer and are
often classified as contract work-in-progress.

2.9 FOREIGN CURRENCY TRANSACTIONS

Transaction in foreign currencies are initially recorded by the Company at rates prevailing on the date of the
transaction. Subsequently monetary items are translated at closing exchange rates of balance sheet date and the
resulting exchange difference is recognised in Profit and Loss. Difference arising on settlement of monetary items
is also recognised in profit or loss.

Non-monetary items that are carried in terms of historical cost in a foreign currency are translated using the
exchange rate at the dates of the transaction.

2.10 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. The weighted average number
of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus
shares, other than the conversion of potential equity shares, if any, that have changed the number of equity shares
outstanding, without a corresponding change in resources. 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 dilutive potential equity shares.

2.11 BORROWING COSTS

Borrowing costs specifically relating to the acquisition or construction of a qualifying asset that necessarily takes
a substantial period of time to get ready for its intended use is capitalized as part of the cost of the asset. All other
borrowing costs are charged to revenue in the period in which it is incurred. Borrowing costs consists of interest
and other costs that an entity incurs in connection with the borrowing of funds. Borrowing costs also includes
exchange differences to the extent regarded as an adjustment to the borrowing costs.

Finance costs will normally include:

i) interest expense calculated using the effective interest rate method as described in Ind AS 109,

ii) the unwinding of the effect of discounting provisions.

---

Mar 31, 2024

2. MATERIAL ACCOUNTING POLICIES

This Note provides a list of the material accounting policies adopted in the preparation of these financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a. STATEMENT OF COMPLIANCE

The financial statements of the Company have been prepared in compliance with Indian Accounting
Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 (the Act) read with Rule 3
of the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other relevant provisions of
the Act.

b. These financial statements have been prepared on a historical cost basis except for the following:-

• Certain Financial Assets and liabilities measured at fair value.

• Defined benefit plans - Plan assets measured at fair value.

2.2 FUNCTIONAL AND PRESENTATION CURRENCY

These financial statements are presented in Indian Rupees (INR) which is also the Company''s functional currency
and all amount are rounded to the nearest lakhs and two decimals thereof, except as stated otherwise.

2.3 USE OF ESTIMATES

The preparation of financial statements in accordance with Ind AS requires management to make judgement,
estimates and assumptions that affect the application of accounting policies and the reported account of assets,
liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates
are recognized in the period in which the estimates are known or materialized.

2.4 REVENUE RECOGNITION

a. REVENUE FROM CONSTRUCTION CONTRACT

Company is providing services and trading of auto parts to its customer under the fixed price contract.
Contract Revenue is recognized in the year in which the services are rendered. In fixed price contract,
revenue is recognised based on actual service provided to the end of the reporting period as a proportion
of the total services to be provided. This is determined based on the actual work done approved by the
customer.

Estimates of revenue, costs or extent of progress towards completion are revised if circumstances change.
Any resulting increase or decrease in estimated revenue or costs are reflected in profit or loss in the period
in which the circumstances that give rise to the revision become known to the management.

When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized
only to the extent of contract costs incurred that are likely to be recoverable.

Variations in contract work, claims and incentive payments are included in contract revenue to the extent
that may have been agreed with the customer and are capable of being reliably measured and received from
customer.

b. OTHERS ITEMS OF REVENUE

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the
effective interest rate method.

Dividend income is recognised when the Company''s right to receive the payment is established.

Other items like extra items claim, insurance claims, any receipts on account of pending income tax, sales
tax, GST and excise duty assessments, where quantum of accruals cannot be ascertained with reasonable
certainty, are recognized as income only when revenue is virtually certain which generally coincides with
receipts.

2.5 PROPERTY, PLANT AND EQUIPMENT

Property, Plant and Equipment assets are carried at cost net of tax/duty credit availed less accumulated
depreciation and accumulated impairment losses, if any. Cost includes expenditure that is directly attributable to
the acquisition of the items.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company and the
cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate
asset is derecognized when replaced. All other repairs and maintenance are charged to the Statement of Profit
and Loss during the reporting period in which they are incurred.

The items of property, plant and equipment which are not yet ready for use are disclosed as Capital work-in¬
progress and are carried at historical cost.

An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount
is greater than its recoverable amount.

Property, Plant and Equipment are eliminated from the financial statements, either on disposal or when retired
from active use.

Gain and losses on disposal or retirement of assets are determined by comparing proceeds with carrying amount.
These are recognised in the Statement of Profit and Loss.

Depreciation is calculated using the straight line method to allocate their cost, net of their residual values on the
basis of useful life prescribed in Schedule II to the Act, which are also supported.

The residual values are not more than 5% of the original cost of the asset.

The residual values, useful lives and method of depreciation of property, plant and equipment are reviewed
at end of each financial year and any changes there-in are considered as change in estimate and accounted
prospectively.

2.6 INTANGIBLE ASSETS (OTHER THAN GOODWILL)

Intangible assets (Computer Software) are stated at cost less accumulated amortization and impaired loss, if any.
Computer Software for internal use which is primarily acquired is capitalized. Subsequently costs associated with
maintaining such software are recognised as expense as incurred. Cost of software includes licenses fees, cost
of implementation, system integration services etc. where applicable.

The Company amortises intangible assets (Computer Software) with a finite useful life using the straight line
method over a period of (3/5years).

2.7 IMPAIRMENT OF ASSETS

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If
any indication exists, or when annual impairment testing of an asset is required, the Company estimates the asset
recoverable amount. An asset''s recoverable amount is the higher of an asset or Cash-generating unit (CGU) fair
value less cost of disposal and its fair value in use. Recoverable amount is determined for an individual asset,
unless the asset does not generate cash inflows that are largely independent of those from other asset or group
of asset. 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.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessment of the time value of money and the risks specific to the
asset. In determining the fair value less costs of disposal, recent market transactions are taken in account. If no
such transactions can be identified, an appropriate valuation model is used. Impaired losses are recognised in
statement of profit and loss.

2.8 INVENTORIES

Raw material, stores, work-in-progress and traded goods are stated at the lower of cost and net realisable value.
However, these items are considered to be realisable at cost if the finished products in which they will be used, are
expected to be sold at or above cost. Cost of inventories comprises all cost of purchase and other cost incurred
in bringing them to their present location and condition. The cost, in general, is determined under First In First Out
(FIFO) Method.

Contract cost incurred related to future activity of the contract are recognised as an asset provided it is probable
that they will be recovered during the contract price. Such cost represent the amount due from customer and are
often classified as contract work-in-progress.

2.9 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies are initially recorded by the Company at rates prevailing on the date of the
transaction. Subsequently monetary items are translated at closing exchange rates of balance sheet date and the
resulting exchange difference recognised in Profit and Loss. Difference arising on settlement of monetary items
are also recognised in profit or loss.

Non-monetary items that are carried in terms of historical cost in a foreign currency are translated using the
exchange rate at the dates of the transaction.

2.10 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. For considering the Company''s
earnings per share the net profit or loss for the period is taken. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other
than the conversion of potential equity shares, if any, that have changed the number of equity shares outstanding,
without a corresponding change in resources. 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 dilutive potential equity shares.

2.11 BORROWING COSTS

Borrowing cost specifically relating to the acquisition or construction of a qualifying asset that necessarily takes a
substantial period of time to get ready for its intended use are capitalized as part of the cost of the asset. All other
borrowing costs are charged to revenue in the period in which it is incurred. Borrowing costs consists of interest
and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes
exchange difference to the extent regarded as an adjustment to the borrowing cost.

Finance costs will normally include:

i) interest expense calculated using the effective interest rate method as described in Ind AS 109,

ii) the unwinding of the effect of discounting provisions.

---

Mar 31, 2017

1.1 The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accruals basis to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 ("the act") and the relevant provisions of the act. The accounting policies adopted in the ^ preparation of the financial statements are consistent with those followed in the previous year.

1.2 The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 a) Fixed Assets are valued at cost net of CENVAT. Borrowing cost that is directly attributable to the acquisition or construction of a qualifying asset is considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

b) Inventories are valued at Cost or net realizable value whichever is less other than Contracts Work in Progress.

1.4 The contracts work-in-progress as at the end of year is valued on the basis of percentage of completion method as below:-

i) Revenue is recognized when the value of running bill is more than 25%.

ii) The entire increase in WIP (In respect of contracts which remains in progress as at the end of the year) is considered revenue of the year.

For the purpose of valuation, cost means the direct cost on a particular job excluding depreciation and finance charges, which are directly charged to Profit and Loss Statement.

1.5 Accumulated value of Amount Billed to client is carried forward on memorandum basis till the project is charged to completed contracts. On closure of a project, the accumulated value of work in progress in accordance with Accounting Policy ''1.4'' discussed above and difference between Accumulated Amount of WIP and total Amount Billed to client is accounted in the value of amount "charged to completed contracts".

1.6 Works Contracts are charged to completed contracts on obtaining completion certificates from concerned clients.

1.7 For the purpose of classifying an asset as Current or Noncurrent on operating cycle basis, the scheduled period of contract completion increased by any extension allowed by the contracted is considered to be operating cycle. Trade Receivables due for payment for the purpose of classifying as Current/Non-Current are classified from the date when defect liability period or retention period ends.

1.8 Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in schedule II to the Act.

1.9 Intangible assets are amortized as per provision of AS-26.

1.10 (a) Dividend income is recognized when the right to receive the dividend is established.

(b) Interest income is recognized on time proportion basis.

1.11 The following items are accounted for based on certainty of realization/payments:

(a) Extra items claim.

(b) Insurance claims.

(c) Any receipts/additional liability on account of pending income tax, sales tax and excise duty assessments.

(d) Penalties or interests, if any, on delayed payment of statutory dues.

1.12 Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. All Foreign Currency Monetary items outstanding at the yearend are translated at the yearend rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of Foreign Currency Monetary items at the end of the year is recognized as income or expense, as the case may be, for the year.

1.13 (a) Investments are either classified as Non-Current or Current investments. The cost of investments includes acquisition charges such as brokerage, fees and duties.

(b) Current investments are carried at lower of cost and fair value. Non-Current investments are carried at cost and provisions are recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.14 (a) Short Term Employee Benefits:

Short term Employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Statement for the year in which related services are rendered.

(b) Defined Contribution Plans:

Company''s contributions and other amount, if any, payable during the year towards Provident Fund, Pension Fund and Employee State Insurance are recognized in the Profit and Loss Statement of the year.

(c) Defined Benefit Plans:

Company''s liability towards gratuity in accordance with Payment of Gratuity Act, 1972 and other long term benefits are determined and accounted in accordance with AS-15 (Revised) based on the Actuarial Valuation as on the balance sheet date. So far as the gratuity is concerned the company contributes the ascertained liability to the Life Insurance Corporation of India which administers the contributions and makes the payment at retirement, death or incapacitation of employment to employee.

1.15 Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating Lease payments are recognized as an expense in the Profit & Loss Statement as per the lease terms.

1.16 The Company provides current tax based on the provisions of the Income Tax Act applicable to it. Timing differences between book profit and taxable profit is recognized as Deferred Tax Asset, if any, considering prudence.

1.17 Basic Earnings per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.18 An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired.

1.19 Provisions are recognized in terms of Accounting Standard 29 - ‘Provisions, Contingent Liabilities and Contingent Assets'' (AS-29) when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events, due to 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 there reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.

---

Mar 31, 2016

1. SIGNIFICANT ACCOUNTING POLICIES

1.1 The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP”) under the historical cost convention on the accruals basis to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013 ("the act") and the relevant provisions of the act. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for contracts work-in-progress (Refer Note 1.4).

1.2 The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

1.3 a) Fixed Assets are valued at cost net of CENVAT. Borrowing cost that is directly attributable to the acquisition

or construction of a qualifying asset is considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

b) Inventories are valued at Cost or net realizable value whichever is less other than Contracts Work in Progress.

1.4 The contracts work-in-progress as at the end of year is valued on the basis of percentage of completion method as followed in earlier years.

However there has been a change in this year as detailed hereunder:-

i) Revenue is recognized when the value of running bill is more than 25% as against 33% followed in earlier year.

ii) The entire increase in WIP (In respect of contracts which remains in progress as at the end of the year) is considered revenue of the year. In earlier years a percentage of the incremental contribution was accounted as revenue of the year depending upon the percentage of works completed.

For the purpose of valuation, cost means the direct cost on a particular job excluding depreciation and finance charges, which are directly charged to Profit and Loss Statement (Refer note 1.18).

1.5 Accumulated value of Amount Billed to client is carried forward on memorandum basis till the project is charged to completed contracts. On closure of a project, the accumulated value of work in progress in accordance with Accounting Policy ''1.4'' discussed above and difference between Accumulated Amount of WIP and total Amount Billed to client is accounted in the value of amount "charged to completed contracts”.

1.6 Works Contracts are charged to completed contracts on obtaining completion certificates from concerned clients.

1.7 For the purpose of classifying an asset as Current or Noncurrent on operating cycle basis, the scheduled period of contract completion increased by any extension allowed by the contracted is considered to be operating cycle. Trade Receivables due for payment for the purpose of classifying as Current/Non-Current are classified from the date when defect liability period or retention period ends.

1.8 Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in schedule II to the Act.

1.9 Intangible assets are amortized as per provision of AS-26.

1.10 (a) Dividend income is recognized when the right to receive the dividend is established.

(b) Interest income is recognized on time proportion basis.

1.11 The following items are accounted for based on certainty of realization/ payments:

(a) Extra items claim.

(b) Insurance claims.

(c) Any receipts/additional liability on account of pending income tax, sales tax and excise duty assessments.

(d) Penalties or interests, if any, on delayed payment of statutory dues.

1.12 Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. All Foreign Currency Monetary items outstanding at the yearend are translated at the yearend rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of Foreign Currency Monetary items at the end of the year is recognized as income or expense, as the case may be, for the year.

1.13 (a) Investments are either classified as Non-Current or Current investments. The cost of investments includes acquisition charges such as brokerage, fees and duties.

(b) Current investments are carried at lower of cost and fair value. Non-Current investments are carried at cost and provisions are recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.14 (a) Short Term Employee Benefits:

Short term Employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Statement for the year in which related services are rendered.

(b) Defined Contribution Plans:

Company''s contributions and other amount, if any, payable during the year towards Provident Fund, Pension Fund and Employee State Insurance are recognized in the Profit and Loss Statement of the year.

(c) Defined Benefit Plans:

Company''s liability towards gratuity in accordance with Payment of Gratuity Act, 1972 and other long term benefits are determined and accounted in accordance with AS-15 (Revised) based on the Actuarial Valuation as on the balance sheet date. So far as the gratuity is concerned the company contributes the ascertained liability to the Life Insurance Corporation of India which administers the contributions and makes the payment at retirement, death or incapacitation of employment to employee.

1.15 Leases where the less or effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating Lease payments are recognized as an expense in the Profit & Loss Statement as per the lease terms.

1.16 The Company provides current tax based on the provisions of the Income Tax Act applicable to it. Timing differences between book profit and taxable profit is recognized as Deferred Tax Asset, if any, considering prudence.

1.17 Basic Earnings per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.18 With a view to have a more appropriate presentation of financial statements, the company has revised its accounting policy relating to valuation of contracts work in progress (Refer note 1.4). The change has resulted in increase in profit of Rs, 206.93 lacs.

1.19 An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired.

1.20 Provisions are recognized in terms of Accounting Standard 29 - ''Provisions, Contingent Liabilities and Contingent Assets'' (AS-29) when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events, due to 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 there reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.

---

Mar 31, 2015

1.1 The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accruals basis to comply with the accounting standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the Act").The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation [Refer Note 11(B)].

1.2 The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

1.3 a) Fixed Assets are valued at cost net of CENVAT. Borrowing cost that is directly attributable to the acquisition or construction of a qualifying asset is considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

b) Inventories are valued at cost or net realisable value whichever is less other than contracts work in progress.

1.4 The contracts work-in-progress as at the end of the year is valued on percentage of completion method as detailed hereunder :

(i) Where current estimates of cost and selling price of a contract as at the end of year indicate loss, such foreseeable loss is accounted for during the year.

(ii) (a) In case the value of running account bill(s) is less than 33% of the contract value, the job is valued at actual cost incurred as at the end of year.

(b) In case the value of running account bill(s) is more than 33% but less than 50% of the contract value, the job is valued at actual cost incurred plus one third of the contribution available as at the end of year.

(c) In case the value of running account bill(s) is 50% and above, the job is valued at actual cost incurred plus two third of the contribution available as at the end of year.

For the purpose of valuation, cost means the direct cost on a particular job excluding depreciation and finance charges, which are directly charged to Profit and Loss Statement.

1.5 Accumulated value of amount billed to client is carried forward on memorandum basis till the project is charged to completed contracts. On closure of a project, the accumulated value of work in progress in accordance with Accounting Policy '1.4' discussed above and difference between accumulated amount of WIP and total amount billed to client is accounted in the value of amount "charged to completed contracts".

1.6 Works Contracts are charged to completed contracts on obtaining completion certificates from concerned clients.

1.7 For the purpose of classifying an asset as current or non current on operating cycle basis, the scheduled period of contract completion increased by any extension allowed by the contractee is considered to be operating cycle. Trade receivables due for payment for the purpose of classifying as current/non-current are classified from the date when defect liability period or retention period ends.

1.8 Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in schedule II to the Act [Refer Note 11(B)].

1.9 (a) Dividend income is recognized when the right to receive the dividend is established.

(b) Interest income is recognized on time proportion basis.

1.10 The following items are accounted for based on certainty of realization/ payments:

(a) Extra items claim.

(b) Insurance claims.

(c) Any receipts/additional liability on account of pending income tax, sales tax and excise duty assessments.

(d) Penalties or interests, if any, on delayed payment of statutory dues.

1.11 Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. All foreign currency monetary items outstanding at the year end are translated at the year end rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of foreign currency monetary items at the end of the year is recognized as income or expense, as the case may be, for the year.

1.12 (a) Investments are either classified as non-current or current investments. The cost of investments includes acquisition

charges such as brokerage, fees and duties.

(b) Current investments are carried at lower of cost and fair value. Non- current investments are carried at cost and provisions are recorded to recognize any decline, other than temporary, in the carrying value of each investment.

1.13 (a) Short Term Employee Benefits:

Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Statement for the year in which related services are rendered.

(b) Defined Contribution Plans:

Company's contributions and other amount, if any, payable during the year towards Provident Fund, Pension Fund and Employee State Insurance are recognized in the Profit and Loss Statement of the year.

(c) Defined Benefit Plans:

Company's liability towards gratuity in accordance with Payment of Gratuity Act, 1972 and other long term benefits are determined and accounted in accordance with AS-15 (Revised) based on the actuarial valuation as on the balance sheet date. So far as the gratuity is concerned the company contributes the ascertained liability to the Life Insurance Corporation of India which administers the contributions and makes the payment at retirement, death or incapacitation of employment to employee.

1.14 Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease payments are recognized as an expense in the Profit & Loss Statement as per the lease terms.

1.15 The Company provides current tax based on the provisions of the Income Tax Act applicable to it. Timing differences between book profit and taxable profit is recognized as Deferred Tax Asset, if any, considering prudence.

1.16 Basic Earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

1.17 An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired.

1.18 Provisions are recognized in terms of Accounting Standard 29-'Provisions, Contingent Liabilities and Contingent Assets' (AS-29) when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to 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 there reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent assets are not recognized in the financial statements.

Notes:

(i) Reconciliation of the number of shares and amount outstanding at the beginning and at the end of the reporting period:

(iii) Rights and Restrictions attached to Equity shares :

Each holder of Equity shares is entitled to one vote per share. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Notes:

(i) Details of terms of repayment for the long-term borrowings and security provided in respect of secured long-term borrowings:

Note (i): Current maturities of long-term debt (Refer Note (i) in Note 4 - Long-term borrowings for details of security ):

(B) 1. The company has revisited and changed the method of depreciation of fixed assets from written down vale (WDV) method to straight line method (SLM) as on April 01,2014. As a result of this change, the surplus i.e. excess depreciation of Rs 127.37 lacs as on April 01,2014 has been disclosed as an extraordinary item.

2. Pursuant to the notification of schedule II to the Act, the Company also revised the estimated useful life of its assets to align the useful life with those specified in schedule II.

3. Pursuant to the transition provisions prescribed in schedule II to the Act, the Company has fully depreciated the carrying value of assets (determined after considering the change in method of depreciation from WDV to SLM), net of residual value, where the remaining useful life of the asset was determined to be nil as on April 01,2014, and has adjusted the amount of Rs 10.51 lacs against the opening Surplus balance in the statement of Profit and Loss under Reserve and Surplus.

The depreciation and amortisation expense in the statement of profit & loss for the year is lower by Rs 4.60 lacs consequent to above change in the method of depreciation.

The depreciation and amortisation expense in the statement of profit & loss for the year is higher by Rs 35.08 lacs consequent to change in the useful life of the assets.

Note:

(i) Balances with banks held as margin money include deposits amounting to Rs 517.64 Lacs (As at 31 March, 2014 - Rs 743.52 Lacs) which have an original maturity of more than 12 months.

---

Mar 31, 2014

A1. The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accruals basis. GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006 (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of general circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the Companies Act, 1956/2013 as applicable.

A2. The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

A3. Inventories are valued at Cost. Fixed Assets are valued at cost net of CENVAT. Borrowing cost that is directly attributable to the acquisition or construction of a qualifying asset is considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

A4. The depreciation is charged on the written down value method at the rate and in the manner specified under Schedule XIV of the Companies Act, 1956. Assets costing upto '' 5, 000 are fully depreciated in the year of purchase.

A5. The contracts Work-in-Progress as at the end of the year is valued on percentage of completion method as detailed hereunder:

(i) Where current estimates of cost and selling price of a contract as at the end of year indicate loss, such foreseeable loss is accounted for during the year.

(ii) (a) In case the value of Running Account Bill(s) is less than 33% of the contract value, the job is valued at actual cost

incurred as at the end of year.

(b) In case the value of Running Account Bill(s) is more than 33% but less than 50% of the contract value, the job is valued at actual cost incurred plus one third of the contribution available as at the end of year.

(c ) In case the value of Running Account Bill(s) is 50% and above, the job is valued at actual cost incurred plus two third of the contribution available as at the end of year.

For the purpose of valuation, cost means the direct cost on a particular job excluding depreciation and finance charges, which are directly charged to Profit and Loss Statement.

A6. Accumulated value of Amount Billed to client is carried forward on memorandum basis till the project is charged to completed contracts. On closure of a project the accumulated value of work in progress in accordance with Accounting Policy ''A5'' discussed above and difference between Accumulated Amount of WIP and total Amount Billed to client is accounted in the value of amount "charged to completed contracts".

A7. Works Contracts are charged to completed contracts on obtaining completion certificates from concerned clients.

A8. For the purpose of classifying an asset as Current or Non current on operating cycle basis, the scheduled period of contract completion increased by any extension allowed by the contractee is considered to be operating cycle. Trade Receivables due for payment for the purpose of classifying as Current/Non-Current are classified from the date when defect liability period or retention period ends.

A9. (a) Dividend income is recognized when the right to receive the dividend is established.

(b) Interest income is recognized on time proportion basis.

A10. The following items are accounted for based on certainty of realization/payments:

(a) Extra items claim.

(b) Insurance claims.

(c) Any receipts/additional liability on account of pending income tax, sales tax and excise duty assessments.

(d) Penalties or interests, if any, on delayed payment of statutory dues.

A11. Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. All Foreign Currency Monetary items outstanding at the year end are translated at the year end rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of Foreign Currency Monetary items at the end of the year is recognized as income or expense, as the case may be, for the year.

A12. (a) Investments are either classified as Non- Current or Current investments. The cost of investments includes acquisition charges such as brokerage, fees and duties.

(b) Current investments are carried at lower of cost and fair value. Non-Current investments are carried at cost and provisions are recorded to recognize any decline, other than temporary, in the carrying value of each investment.

A13. (a) Short Term Employee Benefits:

Short term Employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Statement for the year in which related services are rendered.

(b) Defined Contribution Plans:

Company''s contributions and other amount, if any, payable during the year towards Provident Fund, Pension Fund and Employee State Insurance are recognized in the Profit and Loss Statement of the year.

(c) Defined Benefit Plans:

Company''s liability towards gratuity in accordance with Payment of Gratuity Act, 1972 and other long term benefits are determined and accounted in accordance with AS-15 (Revised) based on the Actuarial Valuation as on the balance sheet date. So far as the gratuity is concerned the company contributes the ascertained liability to the Life Insurance Corporation of India which administers the contributions and makes the payment at retirement, death or incapacitation of employment to employee.

A14. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating Lease payments are recognized as an expense in the Profit & Loss Statement as per the lease terms.

A15. The Company provides current tax based on the provisions of the Income Tax Act applicable to it. Timing differences between book profit and taxable profit is accounted as deferred tax. Deferred Tax Asset, if any, is recognized considering prudence.

A16. Basic Earning per Share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

A17. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired.

A18. Provisions are recognized in terms of Accounting Standard 29 - ''Provisions, Contingent Liabilities and Contingent Assets'' (AS-29), notified by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events, due to 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 there reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.

---

Mar 31, 2013

A1. The financial statements have been prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accruals basis. GAAP comprises mandatory accounting standards as specified in the Companies (Accounting Standards) Rules, 2006 & the relevant provisions of the Companies Act, 1956.

A2. The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

A3. Inventories are valued at Cost. Fixed Assets are valued at cost net of CENVAT. Borrowing cost that is directly attributable to the acquisition or construction of a qualifying asset is considered as part of the cost of that asset. Other borrowing costs are recognized as an expense in the year in which they are incurred.

A4. The depreciation is charged on the written down value method at the rate and in the manner specified under Schedule XIV of the Companies Act, 1956. Assets costing upto Rs. 5,000 are fully depreciated in the year of purchase.

A5. The contracts Work-in-Progress as at the end of the year is valued on percentage of completion method as detailed hereunder:

(i) Where current estimates of cost and selling price of a contract as at the end of year indicate loss, such foreseeable loss is accounted for during the year.

(ii) (a) In case the value of Running Account Bill(s) is less than 33% of the contract value, the job is valued at actual cost incurred as at the end of year.

(b) In case the value of Running Account Bill(s) is more than 33% but less than 50% of the contract value, the job is valued at actual cost incurred plus one third of the contribution available as at the end of year.

(c) In case the value of Running Account Bill(s) is 50% and above , the job is valued at actual cost incurred plus two third of the contribution available as at the end of year.

For the purpose of valuation, cost means the direct cost on a particular job excluding depreciation and finance charges, which are directly charged to Profit and Loss Statement.

A6. Accumulated value of Amount Billed to client is carried forward on memorandum basis till the project is charged to completed contracts. On closure of a project the accumulated value of work in progress in accordance with Accounting Policy ''A5'' discussed above and difference between accumulated amount of WIP and total amount billed to client is accounted in the value of amount"charged to completed contracts".

A7. Works contracts are charged to completed contracts on obtaining completion certificates from concerned clients.

A8. For the purpose of classifying an asset as current or non current on operating cycle basis, the scheduled period of contract completion increased by any extension allowed by the contractee is considered to be operating cycle. Trade receivables due for payment for the purpose of classifying as current/non-current are classified from the date when defect liability period or retention period ends.

A9. (a) Dividend income is recognized when the right to receive the dividend is established.

(b) Interest income is recognized on time proportion basis.

A10. The following items are accounted for based on certainty of realization/ payments:

(a) Extra items claim.

(b) Insurance claims.

(c) Any receipts/additional liability on account of pending income tax, sales tax and excise duty assessments.

(d) Penalties or interests, if any, on delayed payment of statutory dues.

All. Foreign currency transactions are recorded at the exchange rate prevailing on the date of transaction. All foreign currency monetary items outstanding at the year end are translated at the year end rate. The difference between the rate prevailing on the date of transaction and on the date of settlement as also on translation of foreign currency monetary items at the end of the year is recognized as income or expense, as the case may be, for the year.

A12. (a) Investments are either classified as non- current or current investments. The cost of investments includes acquisition charges such as brokerage, fees and duties.

(b) Current investments are carried at lower of cost and fair value.Non - current investments are carried at cost and provisions are recorded to recognize any decline, other than temporary, in the carrying value of each investment.

A13. (a) Short Term Employee Benefits:

Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss statement for the year in which related services are rendered.

(b) Defined Contribution Plans:

Company''s contributions and other amount, if any, payable during the year towards provident fund, pension fund and employee state insurance are recognized in the profit and loss statement of the year.

(c) Defined Benefit Plans:

Company''s liability towards gratuity in accordance with Payment of Gratuity Act, 1972 and other long term benefits are determined and accounted in accordance with AS-15 (Revised) based on the actuarial valuation as on the balance sheet date. So far as the gratuity is concerned the company contributes the ascertained liability to the Life Insurance Corporation of India which administers the contributions and makes the payment at retirement, death or incapacitation of employment to employee.

A14. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating Lease payments are recognized as an expense in the profit & loss statement as per the lease terms.

A15.The company provides current tax based on the provisions of the Income Tax Act applicable to it. Timing differences between book profit and taxable profit is accounted as deferred tax. Deferred tax asset, if any, is recognized considering prudence.

A16. Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

A17. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when an asset is identified as impaired.

A18. Provisions are recognized in terms of Accounting Standard 29 - ''Provisions, Contingent Liabilities and Contingent Assets'' (AS-29), notified by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent liabilities are recognized only when there is a possible obligation arising from past events, due to 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 there reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent assets are not recognized in the financial statements.