Accounting Policies of Transwind Infrastructures Ltd. Company

Mar 31, 2024

Note - 2 - Significant Accounting Policies

a. Basis of preparation:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in
India (Indian GAAP) 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 2013 Act"), as
applicable. The financial statements have been prepared on accrual basis and under the historical cost convention. The
accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b. Use of estimates:

In preparing the Company''s financial statements in conformity with the accounting principles generally accepted in India,
management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognised
prospectively in the current and future periods.

c. Property, Plant & Equipment and Depreciation:

Property Plant & Equipment

Property, Plant and Equipment are stated at cost of acquisition (net of CENVAT, wherever applicable) as reduced by accumulated
depreciation. The cost of assets includes other direct/indirect and incidental cost incurred to bring them into their working condition.
When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal
or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is
recognised in Statement of Profit and Loss for the relevant financial year.

Depreciation

The depreciation on assets for own use is provided on “Straight Line Method (SLM)” on the basis of useful life of assets as
specified in Schedule II to the Companies Act, 2013 on Pro-rata Basis.

When assets are disposed or retired, their accumulated depreciation is removed from the financial statements. The gain or loss
arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount
of the asset and is recognized in Statement of Profit and Loss for the relevant financial year.

d. Intangible Assets & Amortizations Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization. All costs, including
financing costs in respect of qualifying assets till commencement of commercial production, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations attributable to the intangible assets are capitalized.

Intangible assets are amortised on a straight - line basis over their estimated useful lives. A rebuttable presumption that the useful
life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by the
management. The amortization period and the amortization method are reviewed at least at each reporting date. If the expected
useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.

The gain or loss arising on the disposal or retirement of an intangible asset is determined as the difference between net disposal
proceeds and the carrying amount of the asset and is recognised as income or expenses in the Statement of Profit and Loss in the
year or disposal.

Amortization

Intangible assets are amortized on a straight - line basis over their estimated useful lives of 5 years. A rebuttable presumption that
the useful life of an intangible asset will not exceed ten years from the date when the asset is available for use is considered by
the management. The amortization period and the amortization method are reviewed at least each reporting date. If the expected
useful life of the asset is significantly different from previous estimates, the amortization period is changed accordingly.

e. Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act,
1961.

Deferred Tax resulting from “timing difference” between taxable and accounting income is accounted for using the tax rates and
laws that are enacted or subsequently enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward
only to the extent that there is virtual certainty that the assets will be realized in future.

f. Revenue Recognition:

(i) Contract Revenue

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can
be reliably measured on the percentage of completion method as mentioned in Accounting Standard (AS) 7 "Construction
contracts" notified by the Companies Accounting Standards Rules, 2006. Running Account Bills for work completed are
recognized on percentage of completion method based on completion of physical proportion of the contract work. Income on
account of claims and extra item work is recognized to the extent company expects reasonable certainty about receipts or
acceptance from the client.

(ii) Interest Income

Revenue is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable except
interest on income tax refund is recognised in the year of receipt.

(iii) Dividend

Dividend income is recognised when right to receive the same is established.

(iv) Rental Income

Rental income from renting is recognized in the statement of profit or loss and other income on a straight- line basis over the
term of the agreement.

g. Foreign Currency Transactions:

i) Transactions in foreign currencies are recorded in Indian rupees using the rates of exchange prevailing on the date of the
transactions. At each balance sheet date, monetary balances are reported in Indian Rupees at the rates of exchange
prevailing at the Balance Sheet date. All realized or unrealized exchange adjustment gains or losses are dealt with in the
Statement of Profit and Loss.

ii) In order to hedge exposure to foreign exchange risks arising from export or import foreign currency, bank borrowings and
trade receivables, the company enters into forward contracts. In case of forward exchange contract, the cost of the contracts
is amortised over the period of the contract, any profit or loss arising on the cancellation or renewal of a forward exchange
contract is recognised as income or expenses for the year.

iii) Exchange difference is calculated as the difference between the foreign currency amount of the contract translated at the
exchange rate at the reporting date, or the settlement date where the transaction is settled during the report period and the
corresponding foreign currency amount translated at the later of the dates of inception of the forward exchange contract and
the last reporting date. Such exchange difference rate recognised in the Statement of profit and loss in the reporting period
in which the exchange rates change.

iv) Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the
exchange rate at the date of the transaction.

h. Borrowing cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of
such assets, whenever applicable, till the assets are ready for their intended use. A qualifying asset is one which necessary takes
substantial period to get ready for intended use. All other borrowing costs are charged to revenue accounts. Capitalization of
borrowing cost is suspended when active development is interrupted.

i. Inventories:

The basis of valuation of inventories is "Lower of cost and net realizable value". Work in Progress is valued on weighted average
method. Cost in respect of inventories is computed on FIFO basis and Net realizable value is the estimated selling price in the
ordinary course of business, reduced by the estimated costs of completion and costs to affect the sale.

j. Investments:

Long Term Investments are stated at cost. Provision is only made to recognize a decline other than temporary, in the value of
investments. However, where quotation as on 31st March 2024 was not available, last available quotation was considered.

k. Employees’ Benefits:

(i) The Employee and Company make monthly fixed Contribution to Government of India-Employee''s Provident Fund equal to
a specified percentage of the Covered employee''s salary, Provision for the same is made in the year in which services are
rendered by the employee.

(ii) atuity to employees is determined on the basis of actuarial valuation. Actuarial gain / loss in respect of the
same is charged to the Statement of profit and loss.

(iii) The Company does not allow carry forward of unavailed leave and hence unavailed leaves are encashed in the current year
itself.

(iv) Short Term benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the
year in which the related service is rendered.

l. Segment Information:

Based on the principles for determination of segments given in Accounting Standard 17 “Segment Reporting” issued by accounting
standard notified by Companies (Accounting Standard) Rules, 2008, the company is mainly engaged in one segment i.e., the
business of Construction Activities and all other activities surrounded with main business of the Company.

m. Impairment:

The management periodically assesses, using external and internal sources whether there is an indication that an asset may be
impaired. If an asset is impaired, the company recognizes an impairment loss as the excess of the carrying amount of the asset
over the recoverable amount. The impairment loss recognised in prior accounting periods is reversed if there has been a change in
the estimate of recoverable amounts.

n. Accounting for Lease:

The Company''s significant leasing arrangements are in respect of operating lease for premises that are cancelable in nature. The
lease rentals paid under such agreements are charged to the Statement of Profit and Loss.

o. Earnings per Share:

Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity Shareholders of the
company by the weighted average number of Equity Shares outstanding during the year. Diluted earnings per share is calculated
by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings) by average number of weighted
equity shares outstanding during the year.