Accounting Policies of W S Industries (India) Ltd. Company

Mar 31, 2025

SIGNIFICANT ACCOUNTING POLICIES
General

(a) Statement of Compliance

The standalone financials statements are prepared in accordance with Indian Accounting Standards (A “Ind
AS”) as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the
Companies Act,2013, as amended from time to time. Accounting policies have been consistently applied except
where a newly issued Accounting Standard is initially adopted or a revision to an existing Accounting Standard
requires change in the Accounting Policy hitherto adopted.

(b) Basis of Preparation and Compliance

The standalone financial statements are prepared in accordance with the historical cost convention except for
certain items that are measured at fair value at the end of each reporting period, as explained in the accounting
policies set out below. The standalone financial statements are prepared on a “going concern” basis using
accrual concept except for the Cash flow information. Historical cost is generally based on fair value of the
consideration given in exchange for goods and services. Fair value is the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement
date, regardless of whether that price is directly observable or estimated using another valuation technique. in
estimating the fair value of an asset or liability, the company takes into account the characteristics of the asset
or liability at the measurment date assuming the market participants act in their economic interest. The Board
decided to provide the Financials in terms of INR in Crores instead INR in Millions with effect from FY 2024¬
2025. Till FY 2023-2024 the Financials have been provided to the members in INR in Millions.

In addition, for financial reporting purposes, fair value measurements are categorised into Level 1,2 or 3 based
on the degree to which the inputs to the fair value measurements are observable and the significance of the
inputs to the fair value measurement in its entirety, as described hereunder:

Level 1 - Quoted prices(unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurment date

Level 2 - Other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly: and

Level 3 - Unobservable inputs for the asset or liability.

Functional currency of the Company is determined as Indian National Rupee(INR) Presentation and Disclosure
Of Financial Statements

An asset or liability is classified as current if it satisfies any of the following conditions

a. The asset or liability is expected to be realised/settled in the Company’s normal operating cycle:

b. The asset is intended for sale or consumption in the Company’s normal operating cycle

c. The asset or liability is held primarily for the purpose of trading:

d. The asset or liability is expected to be realised/settled within twelve months after the reporting period:

e. The asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability
for atleast twelve months after the reporting period

f. In case of liability, the Company does not have an unconditional right to defer settlement of the liability for
atleast twelve months after the reporting period.

All other assets and liabilities are classified as Non-Current. For the purposes of Current/Non- Current
classification, the Company has reckoned its normal operating cycle as twelve months based on the nature of
products and the time between the aquisition of assets or inventories for processing and their realisation in cash
or cash equivalents.

Deferred Tax assets and liabilities are classified as Non-Current . Advances given towards acqusition of fixed
assets, outstanding at each Balance Sheet date, are disclosed as other Non-Current assets.

(c) Property, Plant and Equipment (PPE)

Property, Plant and Equipment are stated at acquisition/historical cost and include expenditure incurred up to
the date the asset is put to use (as reduced by Cenvat/VAT/GST credit wherever applicable) less accumulated
depreciation (other than freehold land) and impairment loss, if any.

Depreciation on Property, Plant and Equipment has been provided on Written Down Value basis in accordance
with the rates prescribed under Part ‘C’ of Schedule II of the Companies Act 2013, which is also estimated by
the management to be the estimated useful life of the said assets. Assets costing less than ? 5,000/- are fully
depreciated in the year of purchase.

Expenses incurred during the construction period prior to commencement of production are classified and
disclosed under Capital Work-in-progress.

The estimated useful lives and residual values are reviewed at the end of each reporting period, with the effect
of any change in estimate accounted for on a prospective basis.

The company has elected to continue with the carrying cost of all PPE as per previous GAAP as at 1st April 2016
(Transition date) as the deemed cost as on the transition date.

(d) Current Assets:

Inventories

i. Raw materials, components, construction materials, stores and spares and loose tools(other than bonded
materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/
VAT/GST credit, wherever applicable.

ii. Manufacturing work-in-progress at lower of weighted average cost including related overheads or net
realisable value.

iii. Finished Goods are valued at lower of cost and net realisable value. Cost includes material, direct labour,
oveheads (other than selling and administrative overheads) incurred in bringing the inventory to their
present location and condition. Net realisable value is the estimated selling price less estimated costs
necessary to make the sale.

Cash and Bank Balances

Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and
other bank balances which have restrictions on repatriation.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions.

Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at
the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the
accounts in accordance with the Ind AS 21.

(f) Revenue Recognition

Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of
promised goods or services to a customer.

For performance obligation satisfied over time, the revenue recognition is done by measuring the progress
towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of
actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

The Company transfers control of a good or service over time and therefore satisfies a performance obligation
and recognises revenue over a period of time if one of the following criteria is met:

(a) the customer simultaneously consumes the benefit of the Company’s performance or

(b) the customer controls the asset as it is being created/enhanced by the Company’s performance or

(c) there is no alternative use of the asset and the Company has either explicit or implicit right of payment
considering legal precedents

In all other cases, performance obligation is considered as satisfied at a point in time.

The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied.
Transaction price is the amount of consideration to which the Company expects to be entitled in exchange
for transferring goods or services to a customer excluding amounts collected on behalf of a third party. The
Company includes variable consideration as part of transaction price when there is a basis to reasonably
estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative
revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved.
Variable consideration is estimated using the expected value method or most likely amount as appropriate in
a given circumstance. Payment terms agreed with a customer are as per business practice and the financing
component, if significant, is separated from the transaction price and accounted as interest income.

Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off
in profit or loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a
contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract
in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total
estimated cost attributable to the performance obligation.

Significant judgments are used in:

a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time;
revenue recognition is done by measuring the progress towards complete satisfaction of performance
obligation.

b. Determining the expected losses, which are recognised in the period in which such losses become probable
based on the expected total contract cost as at the reporting date.

c. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the
transaction price.

Revenue from operations

Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation
and other claims, which are not ascertainable/ acknowledged by customers are not taken into account.

A. Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of
complex plant and equipment is recognised as follows:

Revenue is recognised when the control of the same is transferred to the customer and it is probable that
the Company will collect the consideration to which it is entitled for the exchanged goods. Revenue from
commissioning of complex plant and equipment is recognised either ‘over time’ or ‘in time’ based on an
assessment of the transfer of control as per the terms of the contract.

B. Revenue from construction/project related activity is recognised as follows:

Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with
reference to the extent performance obligations have been satisfied. The amount of transaction price
allocated to the performance obligations satisfied represents the recoverable costs incurred during the
period plus the margin as agreed with the customer.

Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation
satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction
price which represents the cost of work performed on the contract plus proportionate margin, using the
percentage of completion method. Percentage of completion is the proportion of cost of work performed
to-date, to the total estimated contract costs.

For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus
recognised losses as the case may be) exceeds the progress billing, the surplus is shown as contract
asset and termed as “Due from customers”. For contracts where progress billing exceeds the aggregate of
contract costs incurred to-date plus recognised profits (or minus recognised losses, as the case may be),
the surplus is shown as contract liability and termed as “Due to customers”. Amounts received before the
related work is performed are disclosed in the Balance Sheet as contract liability and termed as “Advances
from customer”. The amounts billed on customer for work performed and are unconditionally due for
payment i.e. only passage of time is required before payment falls due, are disclosed in the Balance Sheet
as trade receivables.

Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised
in profit or loss to the extent the carrying amount of the contract asset exceeds the remaining amount
of consideration that the Company expects to receive towards remaining performance obligations (after
deducting the costs that relate directly to fulfill such remaining performance obligations). The Company
recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial
statements) on account of credit risk in respect of a contract asset using expected credit loss model on
similar basis as applicable to trade receivables.

C. Revenue from property development activities is recognised when performance obligation is satisfied,
customer obtains control of the property transferred and a reasonable expectation of collection of the sale
consideration from the customer exists.

D. Revenue from rendering of services is recognised over time as the customer receives the benefit of the
Company’s performance and the Company has an enforceable right to payment for services transferred.

E. Other operational revenue represents income earned from the activities incidental to the business and is
recognised when the performance obligation is satisfied and right to receive the income is established as
per the terms of the contract.

(g) Employee Benefits

(a) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short
term employee benefits and they are recognised in the period in which the employee renders the related
service. The Company recognises the undiscounted amount of Short Term Employee Benefits expected
to be paid in exchange for services rendered as a liability (accrued expenses) after deducting any amount
already paid.

(i) Defined Contribution Plan

Payments to Defined Contribution Plans are recognised as expenses when employees have rendered
service entitling them to the contributions. Contributions to Provident Fund and Employee State Insurance
are treated as Defined Contribution Plans and recognised as expense in the year in which the services are
rendered.

(ii) Defined Benefit Plans

The Company makes annual contribution to a Gratuity Fund administered by trustees and managed by Life
Insurance Corporation of India (LIC). The Company uses the Projected Unit Credit Method for actuarial
valuation at each reporting date to determine defined benefit obligations. The obligations are the present
value benefits minus plan assets. Any surplus is recognised as a defined benefit asset, reflecting potential
refunds or reduced future contributions. Current service costs, past service costs or net interest on the
liability/asset are recorded in the Statement of Profit and Loss . Acturial gains/losses and returns on Plan
assets are recognised in Other Comprehensive Income in the period in which they occur. The defined
benefit obligation recognised in the balance sheet represents the present value of the Defined Benefit
Obligation less the Fair value of Plan assets out of which the obligations are expected to be settled and
adjusted for unrecognised past service cost,if any. Any Asset arising out of this calculation is limited to
the past service cost plus the present value of available refunds and reduction in future contributions.
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
liability is classified as current or non-current based on acturaial valuations, but all gratuity liabilities for
employees(excluding Directors) are considered current as they will be funded with twelve months."

(b) Other Long term Employee Benefits

Compensated Absences: Accumulated compensated absences, which are expected to be availed or
encashed within 12 months from the end of the year are treated as short term employee benefits. the
obligation towards the same is measured at the expected cost of accumulating compensated absences as
the additional amount expected to be paid as a result of the unused entitlement as at the year end.

Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months
from the end of the year are treated as other long term employee benefits. The Company''s liability is
acturially determined (using Unit Credit Method) at the end of each year. Actuarial losses/gains are
recognised in the in the Statement of Profit and Loss in the year in which they arise.

(h) Borrowing Costs:

Borrowing costs consist of interest and other ancillary costs that the Company incurs in connection with the
borrowing of funds. The borrowing costs directly attributable to the acquisition or construction of any asset that
takes a substantial period of time to get ready for its intended use or sale are capitalised. All the other borrowing
costs are recognised in the Statement of Profit and Loss within finance costs of the period in which they are
incurred. The amount of borrowing cost that the Company capitalises during the period does not exceed the
amount of borrowing cost incurred during that period. All other borrowing costs incurred during that period are
expensed in the period in which they occur.

(i) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement / settlements made are expensed during the year in which it
is incurred.

(j) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital
expenditure on research and development is shown under fixed assets.

(k) Impairment of Assets

Impairment loss, if any, is provided to the extent the recoverable amount of an asset (or cash generating unit) is
estimated to be less than its carrying amount and the carrying amount of the asset (or cash generating unit) is
reduced to its recoverable amount.

(l) Taxes on Income

(a) Current Tax

Current Tax is the amount of income taxes payable in respect of taxable profit for a period. Taxable profit
differs from "Profit before Tax" as reported in the Statement of Profit and Loss because of items of income
or expense that are taxable or deductible in other years (temporary difference) and items that are never
taxable or deductible (permanent difference) under the Income Tax Act,1961. Current tax is measured
using tax rates and tax laws enacted during the reporting period together with any adjustment to tax
payable in respect of previous years

(b) Deferred Tax

Deferred Tax is recognized on temporary differences between the carrying amounts of assets and liabilities
in the standalone financial statements and the corresponding tax bases used in the computation of taxable
profit under the Income Tax Act,1961. Deferred tax liabilities are recognised for all; taxable temporary
differences. However, in case of temporary differences that arise from initial recognition of assets or
liabilities in a transaction that affect nether the accounting profit nor the taxable profit, deferred tax liabilities
are not recognised.

Deferred tax assets are recognised for all deductible temporary differences to the extent it is possible that
future taxable profits will be available against which those deductible temporary differences can be utilised.
In case of temporary differences that arise from initial recognition of assets or liabilities in a transaction that
affect nether the taxable profit nor the accounting profit, deferred tax assets are not recognised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available to allow the benefits
of part of or all of deferred tax assets to be utilised.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted by the Balance
Sheet date and are expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled.

(c) Current and Deferred Tax for the year

Current and deferred tax are recognised in the statement of Profit and Loss, except when they relate to
items that are recognised in Other Comprehensive Income or directly in equity, in which case, the current
and deferred tax are also recognised in Other Comprehensive Income or directly in equity respectively.

(m) Lease & Rentals

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the
terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance
with conditions specified in Ind AS 116.

The Company applies the short-term lease recognition exemption to those leases that have a lease term of 12
months or less from the commencement date and do not contain a purchase option. Lease payments on short¬
term leases are recognised as expense on a straight-line basis over the lease term.

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Mar 31, 2024

NOTE 1CORPORATE INFORMATION

W.S. Industries (India) Limited (‘Company’) is a public company domiciled in India and was incorporated in 1961 under the provisions ofthe erstwhile CompaniesAct, 1956. The Company having CIN: L29142TN1961PLC004568, is engaged in infrastructure projects. Its shares are listed on two recognised stock exchanges in India - BSE LTD and the National Stock Exchange of India Ltd. The registered office of the Company is located at 108, MOUNT POONAMALEE ROAD PORUR, CHENNAI, Tamil Nadu, India, 600116.

The standalone financial statements ("the financial statements") of the Company for the year ended 31 March 2024, were authorised for issue in accordance with the resolution of the Board of Directors on 21st May 2024. SIGNIFICANT ACCOUNTING POLICIES General

(a) Statement of Compliance

The financials statements are prepared in accordance with Indian Accounting Standards (referred to as "Ind AS") as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act,2013, as amended from time to time.

(b) Basis of Presentation

(1) The Financial Statements have been prepared on the historical cost convention on a going concern basis and in accordance with Ind AS and complying with the applicable Accounting Standards.

2) The company has considered its operating cycle to be 12 months for the purpose of current and non-current classification of assets and liabilities.

3) Financial statements are presented in Indian rupees, which is the functional currency of the company and the currency of the primary economic environment in which the company operates.

(c) Property, Plant and Equipment (PPE)

Property, Plant and Equipment are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT/GST credit wherever applicable) less accumulated depreciation (other than freehold land) and impairment loss, if any.

Depreciation on Property, Plant and Equipment has been provided on Written Down Value basis in accordance with the rates prescribed under Part ''C'' of Schedule II of the Companies Act 2013, which is also estimated by the management to be the estimated useful life of the said assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress.

The estimated useful lives and residual values are reviewed at the end of each reporting period, with the effect of any change in estimate accounted for on a prospective basis.

The company has elected to continue with the carrying cost of all PPE as per previous GAAP as at 1st April 2016 (Transition date) as the deemed cost as on the transition date.

(d) Current Assets:

Inventories

i.Raw materials, components, construction materials, stores and spares and loose tools(other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/ VAT/GST credit, wherever applicable.

ii. Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value.

iii. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty.

Cash and Bank Balances

Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions. Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Ind AS 21.

(f) Revenue Recognition

Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or services to a customer.

For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue over a period of time if one of the following criteria is met:

(a) the customer simultaneously consumes the benefit of the Company’s performance or

(b) the customer controls the asset as it is being created/enhanced by the Company’s performance or

(c) there is no alternative use of the asset and the Company has either explicit or implicit right of payment considering legal precedents,

In all other cases, performance obligation is considered as satisfied at a point in time.

The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of a third party. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction price and accounted as interest income.

Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit or loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation.

b. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

c. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.

Revenue from operations

Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation and other claims, which are not ascertainable/ acknowledged by customers are not taken into account.

A. Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex plant and equipment is recognised as follows:

Revenue is recognised when the control of the same is transferred to the customer and it is probable that the Company will collect the consideration to which it is entitled for the exchanged goods. Revenue from commissioning of complex plant and equipment is recognised either ‘over time’ or ‘in time’ based on an assessment of the transfer of control as per the terms of the contract.

B. Revenue from construction/project related activity is recognised as follows:

Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the extent performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.

Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.

For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “Due from customers”. For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract liability and termed as “Due to customers”. Amounts received before the related work is performed are disclosed in the Balance Sheet as contract liability and termed as “Advances from customer”. The amounts billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is required before payment falls due, are disclosed in the Balance Sheet as trade receivables.

Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the Company expects to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining performance obligations). The Company recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to trade receivables.

C. Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control of the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists.

D. Revenue from rendering of services is recognised over time as the customer receives the benefit of the Company’s performance and the Company has an enforceable right to payment for services transferred.

E. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the performance obligation is satisfied and right to receive the income is established as per the terms of the contract.

(g) Employee Benefits

Recognition and measurement of Defined contribution plans

The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement of Profit and Loss when the employees render services to the Company during the reporting period.

Recognition and measurement of Defined Benefit plans

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability/(asset) are recognized in the Statement of Profit and Loss.

Remeasurements of the net defined benefit liability/ comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized in Other Comprehensive Income.

(h) Borrowing Costs:

Borrowing costs consist of interest and other ancillary costs that the Company incurs in connection with the borrowing of funds. The borrowing costs directly attributable to the acquisition or construction of any asset that takes a substantial period of time to get ready for its intended use or sale are capitalised. All the other borrowing costs are recognised in the Statement of Profit and Loss within finance costs of the period in which they are incurred. The amount of borrowing cost that the Company capitalises during the period does not exceed the amount of borrowing cost incurred during that period. All other borrowing costs incurred during that period are expensed in the period in which they occur.

(i) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement / settlements made are expensed during the year.

(j) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(k) Impairment of Assets

Impairment loss, if any, is provided to the extent the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount.

(l) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between the carrying amount of an asset or liability in the balance sheet and its tax base that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(m) Lease & Rentals

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Ind AS 116.

The Company applies the short-term lease recognition exemption to those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. Lease payments on shortterm leases are recognised as expense on a straight-line basis over the lease term.

(n) Provisions, contingent liabilities and contingent assets:

Provisions are recognised only when:

(i) the Company has a present obligation (legal or constructive) as a result of a past event; and

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows.

Contingent liability is disclosed in case of:

(i) Possible obligations where the probability of the final outcome in favour of the company is not certain

(ii) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

(iii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

(o) Financial Instruments (i) Financial assets:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. All financial assets are recognised initially at fair value. These assets are subsequently classified and measured at:

(i) Amortised cost

(ii) Fair Value Through Profit and Loss (FVTPL)

(iii) Fair Value Through Other Comprehensive Income (FVTOCI).

All equity instruments other than in subsidiaries and associates in scope of Ind AS 109 are measured at fair value, the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘other income’ in the Statement of Profit and Loss.

Debt instruments are measured at amortised cost, fair value through other comprehensive income (‘FVOCI’) or fair value through profit or loss (‘FVTPL’) till derecognition on the basis of (i) the entity’s business model for managing the financial assets and (ii) the contractual cash flow characteristics of the financial asset.

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Investment in subsidaries and associates are carried at cost.

Expected credit losses are recognised for financial assets other than those classified under FVTPL category. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company’s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to lifetime expected credit losses ie., expected credit short fall. The impairment losses and reversals are recognised in Statement of Profit and Loss.

(ii) Financial liabilities:

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified and measured at amortised cost / fair value through profit and loss (FVTPL). In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using effective interest method.

Financial liabilities are subsequently measured at amortised cost. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

(p) Investment Property

Properties held to earn rentals and/or capital appreciation or for undetermined future use are classified as investment property and are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with the Company’s accounting policy. Policies with respect to depreciation, useful life and derecognition are followed on the same basis as stated for PPE.

(q) Discontinued operations and non-current assets held for sale

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

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

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

(r) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions made by management are explained under respective policies. Revisions to accounting estimates include useful lives of property, plant and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement, etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

(s) Exceptional Items:

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.

(t) Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the Standalone Financial Statements. Non Adjusting events after the Balance Sheet date which are material in size or nature are disclosed separately in the Standalone Financial Statements.

NOTE 2

Operations review:

(a) The Company is in normal operations wef Q2 of the FY 2022-23.

(b) The operations for the financial year under review is from the continuing business of turnkey projects from erstwhile operations and infrastructure operations.

(c) During the year the company has converted 3099318 warrants to equity shares fully paid on 31st May 2023. During the year the company has converted 350000 warrants to equity shares fully paid on 5th July 2023. During the year the company has converted 280000 warrants to equity shares fully paid on 9th August 2023.

During the year the company has converted 1420000 warrants to equity shares fully paid on 28th September

2023.

During the year the company has converted 60000 warrants to equity shares fully paid on 10th November 2023.

During the year the company has converted 2484166 warrants to equity shares fully paid on 20th February

2024.

During the year the company has converted 832496 warrants to equity shares fully paid on 29th March 2024.

NOTE 3 Segment

The Principal business of the Company is of ''Infrastructure Construction'' . All other activities of the Company revolve around its main business. The Company have concluded that there is only one operating reportable segment as defined by Ind AS 108. Further, the Company has operations mainly in India and has no other reportable segment.

Accordingly, the segment revenue, segment results, total carrying amount of segment assets and segment liability, total cost incurred to acquire segment assets and total amount of charge for depreciation during the period, is as reflected in the Standalone Financial Statements as on and for the financial year ended 31 March 2024.

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Mar 31, 2023

SIGNIFICANT ACCOUNTING POLICIES

General

(a) Statement of Compliance

The financials statements are prepared in accordance with Indian Accounting Standards (referred to as "Ind AS") as notified under the Companies (Indian Accounting Standards) Rules, 2015 read with Section 133 of the Companies Act,2013, as amended from time to time.

(b) Basis of Presentation

1) The Financial Statements have been prepared on the historical cost convention on a going concern basis and in accordance with Ind AS and complying with the applicable Accounting Standards.

2) The company has considered its operating cycle to be 12 months for the purpose of current and noncurrent classification of assets and liabilities.

3) Financial statements are presented in Indian rupees, which is the functional currency of the company and the currency of the primary economic environment in which the company operates.

(c) Property, Plant and Equipment (PPE)

Property, Plant and Equipment are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT/GST credit wherever applicable) less accumulated depreciation (other than freehold land) and impairment loss, if any.

Depreciation on Property, Plant and Equipment has been provided on Written Down Value basis in accordance with the rates prescribed under Part ''C'' of Schedule II of the Companies Act 2013, which is also estimated by the management to be the estimated useful life of the said assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress.

The estimated useful lives and residual values are reviewed at the end of each reporting period, with the effect of any change in estimate accounted for on a prospective basis.

The company has elected to continue with the carrying cost of all PPE as per previous GAAP as at 1st April 2016 (Transition date) as the deemed cost as on the transition date.

(d) Current Assets:

Inventories

i. Raw materials, components, construction materials, stores and spares and loose tools(other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/VAT/GST credit, wherever applicable.

ii. Manufacturing work-in-progress at lower of weighted average cost including related overheads or net realisable value.

iii. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty.

Cash and bank balances

Cash and bank balances include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions.

Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Ind AS 21.

(f) Revenue Recognition

Revenue from contracts with customers is recognised when a performance obligation is satisfied by transfer of promised goods or services to a customer.

For performance obligation satisfied over time, the revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

The Company transfers control of a good or service over time and therefore satisfies a performance obligation and recognises revenue over a period of time if one of the following criteria is met:

(a) the customer simultaneously consumes the benefit of the Company’s performance or

(b) the customer controls the asset as it is being created/enhanced by the Company’s performance or

(c) there is no alternative use of the asset and the Company has either explicit or implicit right of payment considering legal precedents,

In all other cases, performance obligation is considered as satisfied at a point in time.

The revenue is recognised to the extent of transaction price allocated to the performance obligation satisfied. Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer excluding amounts collected on behalf of a third party. The Company includes variable consideration as part of transaction price when there is a basis to reasonably estimate the amount of the variable consideration and when it is probable that a significant reversal of cumulative revenue recognised will not occur when the uncertainty associated with the variable consideration is resolved. Variable consideration is estimated using the expected value method or most likely amount as appropriate in a given circumstance. Payment terms agreed with a customer are as per business practice and the financing component, if significant, is separated from the transaction price and accounted as interest income.

Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged-off in profit or loss immediately in the period in which such costs are incurred. Incremental costs of obtaining a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in proportion to the progress measured in terms of a proportion of actual cost incurred to-date, to the total estimated cost attributable to the performance obligation.

Significant judgments are used in:

a. Determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation.

b. Determining the expected losses, which are recognised in the period in which such losses become probable based on the expected total contract cost as at the reporting date.

c. Determining the method to be applied to arrive at the variable consideration requiring an adjustment to the transaction price.

Revenue from operations

Revenue includes adjustments made towards liquidated damages and variation wherever applicable. Escalation

and other claims, which are not ascertainable/ acknowledged by customers are not taken into account.

A. Revenue from sale of manufactured and traded goods including contracts for supply/commissioning of complex plant and equipment is recognised as follows:

Revenue is recognised when the control of the same is transferred to the customer and it is probable that the Company will collect the consideration to which it is entitled for the exchanged goods. Revenue from commissioning of complex plant and equipment is recognised either ‘over time’ or ‘in time’ based on an assessment of the transfer of control as per the terms of the contract.

B. Revenue from construction/project related activity is recognised as follows:

Cost plus contracts: Revenue from cost plus contracts is recognised over time and is determined with reference to the extent performance obligations have been satisfied. The amount of transaction price allocated to the performance obligations satisfied represents the recoverable costs incurred during the period plus the margin as agreed with the customer.

Fixed price contracts: Contract revenue is recognised over time to the extent of performance obligation satisfied and control is transferred to the customer. Contract revenue is recognised at allocable transaction price which represents the cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed to-date, to the total estimated contract costs.

For contracts where the aggregate of contract cost incurred to date plus recognised profits (or minus recognised losses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as “Due from customers”. For contracts where progress billing exceeds the aggregate of contract costs incurred to-date plus recognised profits (or minus recognised losses, as the case may be), the surplus is shown as contract liability and termed as “Due to customers”. Amounts received before the related work is performed are disclosed in the Balance Sheet as contract liability and termed as “Advances from customer”. The amounts billed on customer for work performed and are unconditionally due for payment i.e. only passage of time is required before payment falls due, are disclosed in the Balance Sheet as trade receivables.

Impairment loss (termed as provision for foreseeable losses in the financial statements) is recognised in profit or loss to the extent the carrying amount of the contract asset exceeds the remaining amount of consideration that the Company expects to receive towards remaining performance obligations (after deducting the costs that relate directly to fulfill such remaining performance obligations). The Company recognises impairment loss (termed as provision for expected credit loss on contract assets in the financial statements) on account of credit risk in respect of a contract asset using expected credit loss model on similar basis as applicable to trade receivables.

C. Revenue from property development activities is recognised when performance obligation is satisfied, customer obtains control of the property transferred and a reasonable expectation of collection of the sale consideration from the customer exists.

D. Revenue from rendering of services is recognised over time as the customer receives the benefit of the Company’s performance and the Company has an enforceable right to payment for services transferred.

E. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the performance obligation is satisfied and right to receive the income is established as per the terms of the contract.

(g) Employee Benefits

Recognition and measurement of Defined contribution plans

The Company recognizes contribution payable to a defined contribution plan as an expense in the Statement

of Profit and Loss when the employees render services to the Company during the reporting period.

Recognition and measurement of Defined Benefit plans

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability/(asset) are recognized in the Statement of Profit and Loss.

Remeasurements of the net defined benefit liability/ comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognized in Other Comprehensive Income.

(h) Borrowing Costs:

Borrowing costs consist of interest and other ancillary costs that the Company incurs in connection with the borrowing of funds. The borrowing costs directly attributable to the acquisition or construction of any asset that takes a substantial period of time to get ready for its intended use or sale are capitalised. All the other borrowing costs are recognised in the Statement of Profit and Loss within finance costs of the period in which they are incurred. The amount of borrowing cost that the Company capitalises during the period does not exceed the amount of borrowing cost incurred during that period. All other borrowing costs incurred during that period are expensed in the period in which they occur.

(i) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement / settlements made are expensed during the year.

(j) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(k) Impairment of Assets

Impairment loss, if any, is provided to the extent the recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount.

(l) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between the carrying amount of an asset or liability in the balance sheet and its tax base that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(m) Lease & Rentals

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Ind AS 116.

The Company applies the short-term lease recognition exemption to those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. Lease payments on short-term leases are recognised as expense on a straight-line basis over the lease term.

(n) Provisions, contingent liabilities and contingent assets:

Provisions are recognised only when:

(i) the Company has a present obligation (legal or constructive) as a result of a past event; and

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows.

Contingent liability is disclosed in case of:

(i) Possible obligations where the probability of the final outcome in favour of the company is not certain

(ii) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

(iii) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

(o) Financial Instruments (i) Financial assets:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. All financial assets are recognised initially at fair value. These assets are subsequently classified and measured at:

i) Amortised cost

ii) Fair Value Through Profit and Loss (FVTPL)

(iii) Fair Value Through Other Comprehensive Income (FVTOCI).

All equity instruments other than in subsidiaries and associates in scope of Ind AS 109 are measured at fair value, the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognised in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘other income’ in the Statement of Profit and Loss.

Debt instruments are measured at amortised cost, fair value through other comprehensive income (‘FVOCI’) or fair value through profit or loss (‘FVTPL’) till derecognition on the basis of (i) the entity’s business model for managing the financial assets and (ii) the contractual cash flow characteristics of the financial asset.

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Investment in subsidaries and associates are carried at cost.

Expected credit losses are recognised for financial assets other than those classified under FVTPL category. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company’s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an

amount equal to lifetime expected credit losses ie., expected credit short fall. The impairment losses and reversals are recognised in Statement of Profit and Loss.

(ii) Financial liabilities:

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are classified and measured at amortised cost / fair value through profit and loss (FVTPL). In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using effective interest method.

Financial liabilities are subsequently measured at amortised cost. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognised in the Statement of Profit and Loss.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

(p) Investment Property

Properties held to earn rentals and/or capital appreciation or for undetermined future use are classified as investment property and are measured and reported at cost, including transaction costs and borrowing cost capitalised for qualifying assets, in accordance with the Company’s accounting policy. Policies with respect to depreciation, useful life and derecognition are followed on the same basis as stated for PPE

(q) Discontinued operations and non-current assets held for sale

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

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

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

(r) Use of Estimates

The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions made by management are explained under respective policies. Revisions to accounting estimates include useful lives of property, plant and equipment & intangible assets, allowance for expected credit loss, future obligations in respect of retirement benefit plans, expected cost of completion of contracts, provision for rectification costs, fair value/recoverable amount measurement, etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

(s) Exceptional Items:

An item of income or expense which by its size, type or incidence requires disclosure in order to improve an understanding of the performance of the Company is treated as an exceptional item and disclosed as such in the financial statements.

2 Operations review:

(a) The Company is in normal operations wef Q2 of the financial year under review.

(b) Further to alienation of discontinued business the operations is from the continuing business of turnkey projects from erstwhile operations, newly commenced infrastructure operations and consultancy income.

(c) The Company has settled the Remaining Debt outstanding with respect to Visakhapatnam Unit with the Edelweiss Group on 13th April 2022 as full and final settlement with release of all claims outstanding against the Company. With the above Settlements, all the necessary charges with respect to the Vizag Unit were released.

(d) Completed the transfer of Vizag Unit/Plant/Undertaking to M/s. Winwin Speciality Insulators Ltd. on 27th April 2022 for a consideration of Rs. 208.50 millions.

(e) After completing the financial restructuring of the Company, the Company has raised funds by way of preferential issue to strengthen the operating position of the Company to enable participation in emerging opportunities in the infrastructure space and turn key project segments.

During the year the company has made preferential allotment for 4634224 equity shares on 10th June 2022.

During the year the company has made preferential allotment for 4360000 equity shares on 26th December 2022.

During the year the company has made preferential allotment for 22725000 Convertible Warrants on 26th December 2022

During the year the company has made preferential allotment for 1995000 equity shares on 5th January 2023.

During the year the company has made preferential allotment for 875000 Convertible Warrants on 5th January 2023.

During the year the company has converted 4552436 warrants to equity shares fully paid on 23rd March 2023.

3 Segment

The company operates primarily in Infra segment and accordingly the company is not required to present segment information.

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Mar 31, 2015

(a) Basis of Presentation

The Financial Statements have been prepared on the historical cost convention on a going concern basis and in accordance with generally Accepted Accounting Principles and complying with the applicable Accounting Standards.

(b) Fixed Assets

Fixed Assets are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT credit wherever applicable).

Depreciation on Building, Plant and Machinery and Electrical Installations has been provided on Straight Line Method and on other assets on Written Down Value basis in accordance with the rates prescribed under Part 'C' of Schedule II of the Companies Act 2013, which is also estimated by the management to be the estimated useful life of the said assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Cost of the Leasehold rights in land is amortised over the primary lease period.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress

(c) Investments:

Investments in shares in Subsidiary and Associate Companies being long term in nature, are stated at acquisition cost. Current investments are valued at lower of Cost and Net Asset Value.

(d) CurrentAssets:

Inventories

i. Raw materials, Packing materials and stores and spares (other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/VAT credit, wherever applicable.

ii. Bonded materials are valued atCIFvalueandMaterialinTransitatcost.

iii. Work-in-progress has been valued at cost or Net Realisable Value, whichever is lower.

iv. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty. .

v. Raw Materials, packing materials, Stores and Spares, bonded materials, materials in transit, work-in- process and finished goods are as per inventories taken, valued and certified by the Chairman.

Others:

vi Sundry Debtors are stated after providing for Bad Debts/recoveries.

Others:

vi. Sundry Debtors are stated after providing for Bad Debts/recoveries.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions. Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Accounting Standard 11 and Companies (Accounting Standards) Amendment Rules, 2009.

(f) Sales:

Net Sales are after trade discounts and inclusive of price variation claims and Receipts from Turnkey Contracts.

(g) Retirement benefits:

Fixed contributions to Employees' Provident Fund and Superannuation Fund are charged off in the accounts. Contribution to Gratuity is covered under a Master Policy with Life Insurance Corporation of India and the annual premium ascertained based on Actuarial valuation has been charged to Profit and Loss Account. Earned Leave salary to eligible employees as per Company's policy ascertained on actuarial basis has been provided for in the Accounts.

(h) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement are expensed over a period of five years.

(i) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(j) Impairment of Assets

Impairment loss, if any, is provided to the extent the carrying amount of the assets exceeds their recoverable amount.

(k) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(l) Lease & Rentals

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Accounting Standard 19.

Lease payments on assets taken on lease are recognized as an expense on a straight line basis over the lease term.

(m) Contingent Liability:

Contingent Liability is disclosed for (i) Possible obligations where the probability of the final outcome in favour of the company is not certain, or (ii) Obligations likely to arise out of past events where it is unlikely that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

2 Loss from Operations -

During the year under review:

a) cost of all inputs increased significantly.

b) non-availability of adequate Working Capital has affected the operations of the company.

c) The Vizag Plant of the Company has borne material damage arising out of Hud Hud cyclone in Oct. 2014. This includes damage to the building infrastructure, raw materials, work-in-progress, finished goods, flooding as well as breakage caused by the impact of the cyclonic wind. Insurance claim for the damages and losses have been filed.

However, the company is pursuing its turn around plans and thus revive the operations. Once the turn around plan is successfully implemented, the company is expected to revive its operations.

3 SEGMENT

The Company has two reportable business segments, namely, i) Electro - porcelain Products and ii) Turnkey Projects.

4 The figures for the current year are for a period of 6 months while those of the previous year are for a period of 12 months and hence are not directly comparable.

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Sep 30, 2014

General

(a) Basis of Presentation

The Financial Statements have been prepared on the historical cost convention on a going concern basis and in accordance with generally Accepted Accounting Principles and complying with the applicable Accounting Standards.

(b) Fixed Assets

Fixed Assets are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT credit wherever applicable).

Depreciation on Building, Plant and Machinery and Electrical Installations has been provided on Straight Line Method and on other assets on Written Down Value basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 or at such higher rates determined taking into consideration the effective useful life of the assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Cost of the Leasehold rights in land is amortised over the primary lease period.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress

(c) Investments:

Investments in shares in Subsidiary and Associate Companies being long term in nature, are stated at acquisition cost. Current investments are valued at lower of Cost and Net Asset Value.

(d) Current Assets:

Inventories

i. Raw materials, Packing materials and stores and spares (other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/VAT credit, wherever applicable.

ii. Bonded materials are valued at CIF value and Material in Transit at cost.

iii. Work-in-progress has been valued at cost or Net Realisable Value, whichever is lower.

iv. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty.

v. Raw Materials, packing materials, Stores and Spares, bonded materials, materials in transit, work-in- process and finished goods are as per inventories taken, valued and certified by the Managing Director.

Others:

vi. Sundry Debtors are stated after providing for Bad Debts/recoveries.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions. Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Accounting Standard 11 and Companies (Accounting Standards) Amendment Rules, 2009.

(f) Sales:

Net Sales are after trade discounts and inclusive of price variation claims and Receipts from Turnkey Contracts.

(g) Retirement benefits:

Fixed contributions to Employees'' Provident Fund and Superannuation Fund are charged off in the accounts. Contribution to Gratuity is covered under a Master Policy with Life Insurance Corporation of India and the annual premium ascertained based on Actuarial valuation has been charged to Profit and Loss Account. Earned Leave salary to eligible employees as per Company''s policy ascertained on actuarial basis has been provided for in the Accounts.

(h) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement are expensed over a period of five years.

(i) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(j) lmpairment of Assets:

Impairment loss, if any, is provided to the extent the carrying amount of the assets exceeds their recoverable amount.

(k) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(l) Lease & Rentals

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Accounting Standard 19.

Lease payments on assets taken on lease are recognized as an expense on a straight line basis over the lease term.

(m) Contingent Liability:

Contingent Liability is disclosed for (i) Possible obligations where the probability of the final outcome in favour of the company is not certain, or (ii) Obligations likely to arise out of past events where it is unlikely that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

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Sep 30, 2013

(a) Basis of Presentation:

The Financial Statements have been prepared on the historical cost convention and in accordance with Generally Accepted Accounting Principles and complying with the applicable Accounting Standards.

(b) Fixed Assets:

Fixed Assets are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT credit wherever applicable).

Depreciation on Building, Plant and Machinery and Electrical Installations has been provided on Straight Line Method and on other assets on Written Down Value basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 or at such higher rates determined taking into consideration the effective useful life of the assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Cost of the Leasehold rights in land is amortised over the primary lease period.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress

(c) Investments:

Investments in shares in Subsidiary and Associate Companies being long term in nature, are stated at acquisition cost. Current investments are valued at lower of Cost and Net Asset Value.

(d) Current Assets:

Inventories:

i. Raw materials, Packing materials and stores and spares (other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Convert/VAT credit, wherever applicable.

ii. Bonded materials are valued at CIF value and Material in Transit at cost.

iii. Work-in-Progress has been valued at cost or Net Realisable Value, whichever is lower

iv. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty

v. Raw Materials, Packing materials, Stores and Spares, Bonded Materials, Materials in Transit, Work-in-Process and Finished Goods are as per inventories taken, valued and certified by the Managing Director.

Others:

vi. Sundry Debtors are stated after providing for Bad Debts/recoveries.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions.

Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Accounting Standard 11 and Companies (Accounting Standards) Amendment Rules, 2009.

(f) Sales:

Net Sales are after trade discounts and inclusive of price variation claims and Receipts from Turnkey Contracts.

(g) Retirement benefits:

Fixed contributions to Employees Provident Fund and Superannuation Fund are charged off in the accounts. Contribution to Gratuity is covered under a Master Policy with Life Insurance Corporation of India and the annual premium ascertained based on Actuarial valuation has been charged to Profit and Loss Account. Earned Leave salary to eligible employees as per Company policy ascertained on actuarial basis has been provided for in the Accounts.

(h) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement are expensed over a period of five years.

(i) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(j) Impairment of Assets:

Impairment loss, if any, is provided to the extent the carrying amount of the assets exceeds their recoverable amount.

(k) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(l) Lease & Rentals:

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Accounting Standard 19.

Lease payments on assets taken on lease are recognized as an expense on a straight line basis over the lease term.

(m) Contingent Liability:

Contingent Liability is disclosed for (i) Possible obligations where the probability of the final outcome in favor of the company is not certain, or (ii) Obligations likely to arise out of past events where it is unlikely that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

---

Mar 31, 2012

(a) Basis of Presentation:

The Financial Statements have been prepared on the historical cost convention and in accordance with Generally Accepted Accounting Principles and complying with the applicable Accounting Standards.

(b) Fixed Assets:

Fixed Assets are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT credit wherever applicable).

Depreciation on Building, Plant and Machinery and Electrical Installations has been provided on Straight Line Method and on other assets on Written Down Value basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 or at such higher rates determined taking into consideration the effective useful life of the Assets. Assets costing less than Rs 5000/- are fully depreciated in the year of purchase.

Cost of the Leasehold rights in land is amortized over the primary lease period.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress

(c) Investments:

Investments in shares in Subsidiary and Associate Companies being long term in nature, are stated at acquisition cost. Current investments are valued at lower of Cost and Net Asset Value.

(d) Current Assets:

Inventories:

i. Raw materials, Packing materials and stores and spares (other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/VAT credit, wherever applicable.

ii. Bonded materials are valued at CIF value and Material in Transit at cost.

iii. Work-in-progress has been valued at cost or Net Realizable Value, whichever is lower.

iv. Finished Goods have been valued at cost or Net Realizable Value, whichever is lower and inclusive of Excise Duty.

v. Raw Materials, packing materials, Stores and Spares, bonded materials, materials in transit, work-in-process and finished goods are as per inventories taken, valued and certified by the Managing Director.

Others:

vi. Sundry Debtors are stated after providing for Bad Debts/recoveries.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions.

Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Accounting Standard 11 and companies (Accounting Standard) Amendment Rules, 2009.

(f) Sales:

Net Sales are after trade discounts and inclusive of price variation claims and Receipts from Turnkey Contracts.

(g) Retirement benefits:

Fixed contributions to Employees' Provident Fund and Superannuation Fund are charged off in the accounts. Contribution to Gratuity is covered under a Master Policy with Life Insurance Corporation of India and the annual premium ascertained based on Actuarial Valuation has been charged to Statement of Profit and Loss. Earned Leave salary to eligible employees as per Company's Policy ascertained on actuarial basis has been provided for in the Accounts.

(h) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement are expensed over a period of five years.

(i) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(j) Impairment of Assets:

Impairment loss, if any, is provided to the extent the carrying amount of the assets exceeds their recoverable amount.

(k) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent these is a virtual certainty of its realization.

(I) Lease & Rentals:

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Accounting Standard 19.

Lease payments on assets taken on lease are recognized as an expense on a straight line basis over the lease term.

(m) Contingent Liability:

Contingent Liability is disclosed for (i) Possible obligations where the probability of the final outcome in favour of the company is not certain, or (ii) Obligations likely to arise out of past events where it is unlikely that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

---

Mar 31, 2011

(a) Basis of Presentation:

The financial statements are prepared under the historical cost convention on a going concern basis and in accordance with the applicable accounting standards.

(b) Fixed Assets and Depreciation:

Fixed Assets are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT credit wherever applicable).

Depreciation on Building, Plant and Machinery and Electrical Installations has been provided on Straight Line Method and on other assets on Written Down Value basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 or at such higher rates determined taking into consideration the effective useful life of the assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Cost of the Leasehold rights in land is amortised over the primary lease period.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress (net of income earned from the related investments during the Project construction period).

(c) Investments:

Investments in shares in Subsidiary and Associate Companies being long term in nature, are stated at acquisition cost. Current investments are valued at lower of Cost and Net Asset Value.

(d) Current Assets:

Inventories:

i. Raw materials, Packing materials and stores and spares (other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of CenvatA/AT credit, wherever applicable.

ii. Bonded materials are valued at CIF value and Material in Transit at cost.

iii. Work-in-progress has been valued at cost or Net Realisable Value, whichever is lower.

iv. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty.

v. Raw Materials, packing materials, Stores and Spares, bonded materials, materials in transit, work-in-process and finished goods are as per inventories taken, valued and certified by the Managing Director.

Others:

vi Sundry Debtors are stated after providing for Bad Debts/recoveries.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions.

Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Accounting Standard 11 and Companies (Accounting Standards) Amendment Rules, 2009.

(f) Sales:

Net Sales are after trade discounts and inclusive of price variation claims and Receipts from Turnkey Contracts.

(g) Retirement benefits:

Fixed contributions to Employees' Provident Fund and Superannuation Fund are charged off in the accounts. Contribution to Gratuity is covered under a Master Policy with Life Insurance Corporation of India and the annual premium ascertained based on Actuarial valuation has been charged to Profit and Loss Account. Earned Leave salary to eligible employees as per Company's policy ascertained on actuarial basis has been provided for in the Accounts.

(h) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement are expensed over a period of five years.

(i) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(j) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(k) Lease & Rentals:

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Accounting Standard 19.

Lease payments on assets taken on lease are recognized as an expense on a straight line basis over the lease term.

(I) Contingent Liability:

Contingent Liability is disclosed for (i) Possible obligations where the probability of the final outcome in favour of the company is not certain, or (ii) Obligations likely to arise out of past events where it is unlikely that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

---

Mar 31, 2010

(a) Basis of Presentation:

The financial statements are prepared under the historical cost convention on a going concern basis and in accordance with the applicable accounting standards.

(b) Fixed Assets and Depreciation:

Fixed Assets are stated at acquisition/historical cost and include expenditure incurred up to the date the asset is put to use (as reduced by Cenvat/VAT credit wherever applicable).

Depreciation on Building, Plant and Machinery and Electrical Installations has been provided on Straight Line Method and on other assets on Written Down Value basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 or at such higher rates determined taking into consideration the effective useful life of the assets. Assets costing less than Rs. 5,000/- are fully depreciated in the year of purchase.

Cost of the Leasehold rights in land is amortised over the primary lease period.

Expenses incurred during the construction period prior to commencement of production are classified and disclosed under Capital Work-in-progress (net of income earned from the related investments during the Project construction period).

(c) Investments:

Investments in shares in Subsidiary and Associate Companies being long term in nature, are stated at acquisition cost. Current investments are valued at lower of Cost and Net Asset Value.

(d) Current Assets:

Inventories:

i. Raw materials, Packing materials and stores and spares (other than bonded materials) have been valued at weighted average cost and includes freight, taxes and duties, net of Cenvat/VAT credit, wherever applicable.

ii. Bonded materials are valued at CIF value and Material in Transit at cost.

iii. Work-in-progress has been valued at cost or Net Realisable Value, whichever is lower.

iv. Finished Goods have been valued at cost or Net Realisable Value, whichever is lower and inclusive of Excise Duty.

v. Raw Materials, packing materials, Stores and Spares, bonded materials, materials in transit, work-in-process and finished goods are as per inventories taken, valued and certified by the Managing Director.

Others:

vi. Sundry Debtors are stated after providing for Bad Debts/recoveries.

(e) Foreign Currency transactions:

Transactions in foreign exchange are accounted for at the rates prevailing on the dates of the transactions.

Exchange difference, arising on forward contracts, is recognized as income or expense.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the rate of exchange prevailing at the year end. The resultant difference, if any, is dealt with appropriately in the accounts in accordance with the Accounting Standard 11 and Companies (Accounting Standards) Amendment Rules, 2009.

(f) Sales:

Net Sales are after trade discounts and inclusive of price variation claims and Receipts from Turnkey Contracts.

(g) Retirement benefits:

Fixed contributions to Employees Provident Fund and Superannuation Fund are charged off in the accounts. Contribution to Gratuity is covered under a Master Policy with Life Insurance Corporation of India and the annual premium ascertained based on Actuarial valuation has been charged to Profit and Loss Account. Earned Leave salary to eligible employees as per Companys policy ascertained on actuarial basis has been provided for in the Accounts.

(h) Amortization of Deferred Revenue Expenditure:

Expenditure incurred under Voluntary Retirement are expensed over a period of five years.

(i) Research & Development:

Revenue expenditure on research and development are expensed in the year in which they are incurred. Capital expenditure on research and development is shown under fixed assets.

(j) Deferred Tax:

Deferred Tax is recognized on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversing in one or more subsequent periods. Deferred Tax assets are recognized only to the extent there is a virtual certainty of its realization.

(k) Lease & Rentals:

Receipts: Lease and rental receipts in respect of assets leased/rented out are accounted, in accordance with the terms and conditions of the lease/rental agreements entered into with the lessees/tenants and are in accordance with conditions specified in Accounting Standard 19. Lease payments on assets taken on lease are recognized as an expense on a straight line basis over the lease term.

(l) Contingent Liability:

Contingent Liability is disclosed for (i) Possible obligations where the probability of the final outcome in favour of the company is not certain, or (ii) Obligations likely to arise out of past events where it is unlikely that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.