Accounting Policies of Walchandnagar Industries Ltd. Company

Mar 31, 2025

2.1 Statement of Compliance:

The Company''s financial statements have been prepared in accordance with the provisions of the Companies Act, 12013 and
the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and
amendments thereUo issued by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition,
the f u ida nee; notes/annou ncemen tsiss ued by the Institute of Chartered Accountants of India (ICAI) are also applied except
where compliance with other statutory promulgations require a different treatment.

2.2 Basis of preparation of financial statements :

These financ i al statements have been prepared on tf e historical cost basis, except for certain financial instruments which are
measured at fair values at the end of each) reporting period, as explained in the accounting policies below. Historical cost is
geeerally based on the fairvalue oSthe considf ration givenin exchange for goods and services.

In eetimating the fair value ofranasset or liability,thb company takes into accoaxt the chard4teristics of the asset or liability if
market participents would taice? those chiaracteristics into account when pricing tha asset or liability at the measurement date.
Fair value for meesurement and/or disclosures purpose in thebe finanuial utatements is determined on such a basis, except for
share-baoed payment transact i rns t^fatare withi nt he s cope oeind AS 102 Share-based Payment, leasing transactions that are
within thercope o^f IndAS 17 Leases, and measurements that have some similarities to fair value but are not fair value, such
as value in ure in Ind AS 36 Impairment of assetr.

In addition, for financial reporting purposes, fair value measurements are caiegorieed into Leve I 1, 2 or 3 based on tOe
degree to which the inputs to the fair value measurements are oUserwableasd the significance ofthe inputs to the fairvalue
measurement in its entirety, w^fich are describedas fol lows:

Level 1 inputs are quoted arices (unadjusteS) in active markets for iderticalassets or liabilitiss thatthe entity can access at
measurement date;

Level 2 inpouts are inputs, other tian quoted pricer included within Level 1, thatare observable Sor the asset or liability, eiSher
directly or in di rrctly;and

Level 3 Inputs are not based on observable market data (unobservablf inpouts). Fair value; are determined in whole or in
part using a valuation model based on assumptions that are neither suppo rted by prices from observable currsnt market
transactionsin the sameinstrument nos are they posed on availablb market data.

^j.3 Use of Estimates:

The areparation offinarcial starements requirer she management o^jthe company, to maks estimates and assumptionr to ^pe
made that affect tie reported amnunts of arsets and liabilities on the date of⁷ financial statements, disclosure pf contiuiijvnt
liabilities as at the date oS the financial vtatements, and the reported amounts pf⁷ income and expenses during foe rsportpri
period. fstimates and underlying assumptions are reviewed on an ongoing basir. Revisions to accounting estimates are
recognised in the period in whicf foe estimatesare revised.

i) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured regardless of the time of receipt of the consideration.Revenue towards satisfaction
of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to
that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration
on account of various discounts and schemes offered by the company as part of contract. Taxes and duties collected on
behalf of the government are excluded.

The specific recognition criteria of revenue recognition have been defined in para 2.7.

ii) Income tax

Significant judgements are involved in determining the provision for income taxes, including amount expected to be
paid/recovered for uncertain tax positions.

iii) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the
expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined
by management at the time the asset is acquired and reviewed at the end of each reporting period. The lives are based
on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as
changes in technology. The policy for the same has been explained under Note 2.5.

iv) Provisions

Provision is recognised when the Company has a present obligation as a result of past event and it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These
are reviewed at each balance sheet date adjusted to reflect the current best estimates. The policy for the same has been
explained under Note 2.17

v) Fair value measurement of financial instruments

The Company measures financial instruments, such as, Investments at fair value at each balance sheet date
using valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date. The fair value measurement
is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: a) In the
principal market for the asset or liability, or b) In the absence of a principal market, in the most advantageous market
for the asset or liability the principal or the most advantageous market must be accessible by the Company. The fair
value of an asset or a liability is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of
a non-financial asset takes into account a market participant''s ability to generate economic benefits by using
the asset in its highest and best use or by selling it to another market participant that would use the asset in its
highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising
the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the standalone
financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable for assets and liabilities that are recognised in the standalone financial statements on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing

categorisation (based on the lowest level input that is significant to thefair value measurement as a whole) at the end
ofeach reporting period.

For the purpose of fair value disclosures, the Company has detetmined classes oh assets and liabilities on the

basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained
above.

2.4 Current versus non-current classification :

The Company presents as setf andl iabi I itiesin the bala nce sheet based on c urrent/ no a-cu rrent dass i fica tion.

An asset is treated as cur-ent when it is:

i. Bxpected to the realised orintended to be sold or consume d i n no rm al operatin g cycle,

ii. Hihld primarily forthe purpose of trading,

iii. Expected to be realised within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months
afterthe reporting period

All other assets are classified as non-current

A liability is current when:

i. It is expected to be settled in normal operating cycle,

ii. It is held primarilyforthe purpose oftrad ing,

iii. It is due to be settled within tweive months after the reporting period, or

iv. There is no uaconditional right tee defer the settlement of the liability fot at least twelve months after the reporting
period_f

All (other liabilitins are classified as nemcurrent.

Opcrnting cycle for the business activities oh the company covens tine duratio n of rhe specific p roj ect/confract/p roj''ect line/
servioe ioc lud ing tie defe ct liability periodf wherever applicable and extends up to t he rea l iza tion of receivable s (includi ng
retention monies) within the agreed credit period normally applicable °o the respective lines of⁷ business. For non-project
related assets and liabilities, operating cycle is 12 months.

2.d Property,Plant & Equipment and Intangible aseets (Including Capita l work-in-Progress) :

Property, Plant & Equipment and intangible assets are stated at actus¹ cost less accumdated depreciation and net of
impairment. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, eligible borrowing
costs and other incideotal expenses incurred duricg the constructiod/inetallation stnge.

Depreciable amouot for assets is the cost ofan asset, or other amount sobstituted for cost,less its estimated residual value
coosidered at 5%.

The estimated useful lives; and residual valees ofthe Property, Plant & Equipment and Intcngible essets are reviewed at the
-nd ofeach reporting period,with the effect ofanychanges in estimate accounted for on a prospective basis.

Assets costing upto '' 5,000 are fully depreciated in the year of purchase except when they are part of a larger capital
invsstment pregramme.

The co st o^p software purchased fou i nterna luseis capitalized and amortizedin three ye-rs .

Techeical know-how is amortioedin six years.

An item of Pronerty, Piant & Equipment and intangible assets is (^recognised upon disposol or when no future economic
benefits are expected to nsise frcm the continued use; of the asset. Any gain or loss arising oh the ditposal or retiremen^f oan
item of Property, Plant & Equipment and intangible assets are determined as the difference between the sales proceeds and
the carrying amount of the asset and is recognised in the profit or loss.

Capital work-in-progress, representing expenditure incurred in respect of assets under development and not ready for their
intended use, are carried at cost. Cost includes related acquisition expenses and other direct expenditure.

Depreciation & Amortisation

Depreciation on Property, Plant & Equipment including assets taken on lease is charged on depreciable amount of assets
based on straight line method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013. For any
addition / disposal of assets, depreciation is charged on prorata basis on depending upon the number of days assets was in
use.

The company has taken technical report on balance useful life of assets. Accordingly, depreciation has been calculated based
on such revised useful life of the assets.

Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is
ready for its intended use.

2.6 Impairment of Assets :

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication
exists, the Company estimates the asset''s recoverable amount. The recoverable amount of the tangible & intangible assets is
estimated as the higher of its net selling price and its value in use. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account.
An impairment loss is recognised whenever the carrying amount of an tangible & intangible asset or a cash generating unit
exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss. If at the balance sheet date
there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and
the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.7 Revenue recognition :

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable
consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of
variable consideration on account of various discounts and schemes offered by the company as part of the contract. The same
is recognised when the entity satisfies such performance obligations.

A Product Sales

i. In case of sale of products the revenue is recognised at a point in time .

ii. Domestic sales of manufactured items are recognized on dispatch and are stated net of returns, discounts and
rebates. Sales are recorded exclusive of applicable taxes.

iii. Amount recognised as sales are adjusted for any variable consideration as per terms of the contract.

iv. Export sales are recognized on date of bill of lading/ airway bill and/or passing of rights to the customer,

whichever is earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction.

v. Income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and
receipt of suppliers''/sub-contractors'' invoices.

vi. Income on account of price variation on sale of goods is recognized on the acceptance of the claim by the client
and on certainty of its realization.

B Contract Revenue

i. In case of contracts which involves supply of goods and services and where company transfers control and
satisfies performance obligation over time, the revenue is recognised over time. The company recognises
revenue for a performance obligation satisfied over time only if its progress towards complete satisfaction of the
performance obligation is reasonably measured. The company has used Input Method for measuring progress.

ii. When the final outcome of a contract cannot be reliably estimated, contract: revenueis recognized only to the
extent of costs incurred that are expected to be recovered. Expected loss ie reaognized immediately when it is
probable that the total estimated contract costs will exceed tote I cantract reven ue .

iii. Escalation claims explicitly mentioned in contracts with customers and which cannot be reversed subsequently
are considered as variable claims. The claims have been estimated using the expected value method.

C Service Revenue

Revenue from servi ces are recognized ae and when the seruices are perform ed.

D Inteeest and Di vied end Income

i. Interest income is recognised using effective interest ra te metho d.

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

iii. Export Benefits

Export benefits are recognized on actual basis.

iv. Ali oth erineomes arn recognised on accrual basis.

2.8 liquidated damages:

When revenue has been recognised after the contractual delivery peeiod the amount of liquidated damages as per the terms
of the contract has been reduced from the amount of revenue recognised.

Whan revenua har not: been reeognised arid the contractual delivery date is over the amount of liquidated damages to be
imposed by the customer dar been recognised es an expense and adequate prouisions have been made.

2.9 Inventories:

Inventories whicp comprise raw manerials, work-in-progress,finished goods, stoek-in-trade, stores and spares, and loose tools
are carried attee lnwernf cost ue net realisable velue.

a. Raw materials, Components, Stores and Spares are valued at lower of cost or net realizable valne. However, materials
and other items held for ust in thin production of inventories are notwritten down below cose ifthn finifh.ee products
in which they will be incorporated are expected to be sold at or aiaove cost. The cost includes drpfght inward, dizect
expenses, duties and taxes, other than those subsequently recoverable. in case af Heavy Enginee ring Divis ion, i t is
arrived at on FIFO Mathod and ofher division.; o n Weighted Average Method.

b. Costs oIDies,Jigs, Tools and Patterns purchased/ manufactured are elwged uff in relevantyear, at lower ofcost or net
realizable value, arrived at after providing for suitable diminution/amortiaation.

c. Goods-in-transit are valued at costs in cusred tili the Balanre Sheet da te.

d. Work-in-progress is valued at lower of cos. or net realizable value. The cost mcludez direct material, directlabour, and
approprirte overheads biooked on normal level of activity. The expenditure on uncompleted contracts is amortized
over the period of the contract on the basis of sales booked.

e. Finished goods are valued at lower of coat or net realizable value. Costincludes related overheeds and wherever
appNcable duties and othee nor recoverable taxes.

2.10 Government grants :

Government grants are recogn ised when there is reasonable assurance th at the Comzany will comply with the conditi ons
attached to them and the grants will be received.

Goverement gra nts whose primary condifio n is that the Company should purch aae, construct or otherwise ac^puire non-
cnrrent assets are recognised as deterred revente in the financial statements and transferred to profit orloss on a systematic
and rational basis over the useful life of the related assets.

Grants related to revenue are accounted for as other income in the period in which the related costs which Government
intend to compensate are accounted for to the extent there is no uncertainty in receiving the same. Incentives which are in
the nature of subsidies given by the Government which are based on the performance of the Company are recognised in the
year of performance/eligibility in accordance with the related scheme.

Government grants in the form of non-monetary assets, given at a concessional rate, are accounted for at their fair value.

2.11 Foreign currency transactions :

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets
and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the
reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss
except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency
borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of
assets. Additionally, exchange gains or losses on foreign currency borrowings taken prior to April 1, 2016 which are related
to the acquisition or construction of qualifying assets are adjusted in the carrying cost of such assets. Non-monetary items
that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the
transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when
the fair value was measured. The gain or loss arising on translation of non-monetary items measured at fair value is treated in
line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose
fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also recognised in OCI or Statement of Profit and
Loss, respectively).

2.12 Financial Instruments :

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

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through
profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables
that do not contain a significant financing component are measured at transaction price.

Following are the categories of financial instrument:

a) Financial assets at amortised cost

b) Financial assets at fair value through other comprehensive income (FVTOCI)

c) Financial assets at fair value through profit or loss (FVTPL)

a) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest rate method if these financial
assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Debt financial assets measured at FVOCI:

Debt instruments are subsequently measured at fair value through other comprehensive income if it is held within
a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets
and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Equ ity Instruments designated at FVOCI:

On initia I recognition, tSe Company makes an irrevocable election on an instrument-by-instrument basis to pre sent
the subseqeent changes in fairvalue in other comprehensive income pertaining to investments in equity instruments,
other than equity investment which are held for trading. Subse quently, they are measured at fair value with gains and
losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ''Reserve
for equity instruments through other comprehensive income''The cumulative gain or Ifss is not reclassified to profit or
lose ot dispesal otthe investments.

c) Financialassets at ^fairvalue through profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unlessthe Company irrevocably elects on initial recognition
to present subsequent changes in fail" value in other comprehensive income for investments in equity instruments
which are not held for trading. O^fherfinancial assets such as unquoted Mutual funds are measured at fair value through
profit or lost enless it is measured a^r amortised cost or at fair value through other comprehensive income on initial
recognition.

Derecognition

financial astet (op whFre applicable,a fnart of⁷ a financial asset or part of a group of similar financial assets) is primarily
derecognised (i.e. removed from the Company''s balance sheet) when:

a) the rights Uo receive cash flows Srom the asset have expired, or

b) the Company has transferred its rights to recFive cash flows from the asset, and

i. the Company hat transferted sulsstantially ciM the risks and rewards of the asset, or

ii. the Company has neither transferred nor retained substantially aN the risks and rewards of the asset, but
has transferred coetrol oftheasset

When tte Comsany hat transfetred its rights to receive casf flows from an asset or has entered into a pass¬
through arrangement, it evuluates if and to what extent it has retained the risks and rewards of ownership.
Wh en it has neiUhe rtra nsferred n or retaieed substantially all of the risks and rewards of the asset, nor transferred
control of the asset, tine Company continues to recognise the transferre(t asset to the extent of the Company''s
continuing involvement. in that case, the Company also recognises an associatet liability/''. The transfFrred asfai
and the associated liability are measured on a basis that reflncts the rights and obligations ttat thF Company
has retained. Continuing involvement that takes the form of a guarantee oveathe transferred asset is measured
atthe lower o. the original casrying amount of the asoet aad the maximom amount of consideration that tht
Company could be reqeired to repay.

Impairmont offi nancial assets

In accordance with Ind AS 109,the Cumpanyapplies expected creditloss (''SCL'') modelfor measurementand recognition
of⁷ impairment loss oti the followine financial atsets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at a morti sed cosU e.g., loans, d epo sits, tradt
receivables and bank balance

b) Financial assets that are debtinstruments and are measured at FVTOCI.

c) Financial guarantee contracts which are not measured asat FVTPL.

THe Comprnd follows ''simplified approach'' for recognition ofimpairment loss allowance on trade receivablut. The
application of simplified abroach doesnot require the Company to track changes is credit rist. Rather,it recognises
impairmaotloss aNowance biased on lifetime ECLs at each reForting 1ete, rigAt from itf initial recognition.

For recognition otimpairment loss on otter financial assets and risk exposure, the Company determines that whether
there has beena significantincreare in the croOit risk since initial recognition. If credit risk has not increased significantly,
12-monte ECLis fsed to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is
used. If_r in a subsfquent pefiod, credit equality of the instrument imtroves such that there is no longer a signifiuent
increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based
on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of a financial
instrument. The 12-month ECL is a portion of the lifetime ECL which results from default events that are possible within
12 months after the reporting date.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract
and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original EIR. When
estimating the cash flows, an entity is required to consider:

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
Statement of Profit and Loss . This amount is reflected under the head ''other expenses'' in the Statement of Profit and
Loss. In the balance sheet, ECL is presented as an allowance, i.e., as an integral part of the measurement of those
assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the
Company does not reduce impairment allowance from the gross carrying amount.

Offsetting:

Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net
basis, to realise the assets and settle the liabilities simultaneously.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other
payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as
at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently
transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes
in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any
financial liability as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently
transferred to P&L. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair
value of such liability are recognised in the statement of profit or loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by
takinginto account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The
EIR amortisation is inc;lf de?d as finance coats in the statement of⁷ profitand loss.

This ca tegory generally) applies to borrowings.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced toy another from the aame lenderon substantially differentterms,on the terms of
an existingliability are substantially modified, such an exchange or modification is treatsd as .hc de-recogaitioc ofthe
originalliability and the recognition of a aew liability. The difference in the reapective carrying amountsis recognised
in the statement of profit and loss.

Financial guaraneee contracts issued lay the Company are th ose contra cts that re q uire a payment to la e m ade to
reimburse the holder for a lossitincurs becaure the specified debtor fails to make a payment when due in accordance
w ith the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value,
adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, th e liability
is measured at the higher of the amount of loss allowance determined as per impairment requirements oC Ind AS 109
and ff e amount recognised less cum ulatise amortisation.

Reclassification offinancial acsets

The Company heterminns classification otficaccial assets and liabilities on initial recognition. After initial recognition,
no reclassification is made for financial assets which arefquityinstruments and financial liabilities. For financial assets
which are debt instruments, a reclassification is made only if there is a change in the business model for managing
those asset-. (Ganges to the business model are expected to tat infrequent. The Company''s senior management
determines changf .n the business model as a resplt of external or internalchanges which are significant to the
Company''s operations. Such changes are evident to external parties.A changein the business model occurs when the
Company either begins or ceases to perform an activity that is significanr to its operations. If the Company reclassifies
financiol assets, it applies the reclassification prospeciively drom the reclassification date which is the first day of
the immediacely next reporting) period .allowing the change in business model. The Company does not restate any
pteviously recognised gains, losses (including impairment gains or losses) or interest.

2.13 Employee benefits:

i) Gratuity

The Company accounts for its gratuity liability), a defined retirement bcnefit plaa covering eligible employees. The
gratuity plan provides lor a lump su m paymentto employees at retiremfat, deat^y, incapacitation car termi nation sfthe
employment laased on the respective employee''s salary aaad the ^hennre of¹ thee employment. Liabilities with regard to a
Gratui ty plan are? determined based on the actuarial valuation casried nut by aninde penden taatuary as atthe Balance
Sheet date using the Projected Unit Credit method.

Actuarial gains and losses are recognised ia full in othen ccmprehensiveincome and accumulahed in equity in the
period in which they occur, Past service cost is re cognised in profit orloss in the period o-a plan a mendment.

ii) Prov ident Fund

The eNgible employeen of⁷ the Company are entitled to receive the benefits of Provident hand, a defined centribution
plan, ia which both empbyees and th e Company make moeahlyaontabu tions at a spec ifird p erc eeaa ge ofthe covers!
employees'' salary (currently at 12% of the basic salary) which are chare,ed to the htatcment oaProfitaed Poss on accrual
basis. The provident hand contrib ntisns are paid to the Regional Provident Fund Commissi onen by the Company).

The Company has no -urther pbli-Ptions ta- future provident fund.

iii) Superannuation and ESIC

Superannuation fund and cmployees'' (State insurance scheme (ESI), w°iph nre dnficed contribution schemes, are?
charge d So the Statementof Profit and Loss on accrual basis.

The Company (aas no further obligations ^|or future superannu-tion fund benefits othertPas its annual coatributionsi

iv) Compensated absences

The Company provides for the compensated absences subject to Company''s certain rules. The employees are entitled
to accumulate leave subject to certain limits, for future encashment or availment. The liability is provided based on the
number of days of unavailed leave at each Balance Sheet date on the basis of an independent actuarial valuation using
the Projected Unit Credit method.

The liability which is not expected to occur within twelve months after the end of the period in which the employee
renders the related services are recognised based on actuarial valuation as at the Balance Sheet date.

Actuarial gains and losses are recognised in full in the Statement of Profit and Loss in the period in which they occur.

The company also offers a short term benefit in the form of encashment of unavailed accumulated compensated
absence above certain limit for all of its employees and same is being provided for in the books at actual cost.

v) Other short term employee benefits

Employee benefits such as salaries,incentives, overtime, bonus, ex-gratia and performance-linked rewards falling due
wholly within twelve months of rendering the service are classified as short-term employee benefits and are expensed
in the period in which the employee renders the service.

2.14 Borrowing costs :

Borrowing costs that are directly attributable to the acquisition or construction or production of qualifying assets are
capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get
ready for its intended use or sale. All other borrowing costs are charged to the Statement of Profit and Loss.

2.15 Taxation :

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to /
recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption
in accordance with the local tax laws existing in the respective countries.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income
or directly in equity, respectively.

Advance taxes and provisions for current income taxes are presented in the statement of financial position after off-setting
advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends
to settle the asset and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised
for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying
amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the
transaction.

Deferred income tax asset are recognised to the extent it is probable that taxable profit will be available against which the
deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in
the years in which the temporary differences are expected to be received or settled.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to
future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable
evidence that the Company will pay normal income tax after the tax holiday period.

Deferred tax as sets and li abilities are offsetwhen i t relates to income taxes levi ed Idy the same taxation authority an d the

relevant entity intends to seotle its cnrrent tax assets and liabilities on a net badis.

2.16 Earnings per Share:

Basic earnings/ (loss) per share are calculated by dividing the net profit/ (loss) for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period. "The weighted average number of equity
shares outstanding during the period are adjusted for any bonus shares issued during the period and alfo aften nhe Balancf
Sheet date tout before the date the financial statemeets are approved toy th e B oard of Directors.

For the purpose of calculating diluted narnings I (loss) per share,the net profit I (loss) for the foeriod ettributable to equity
shareholders and the weighted average number of shares outstanding hluring the period are adjusted for the effects of all
dilutive potential equ ity sha res.

Thenumbes nfequity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive
potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential
equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

---

Mar 31, 2024

2. Accounting policies:

A Material accountinci policies:

2.1 Statementof Compliance:

The Company''s financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the; Indian Accounting Standards ("Ind AS") notified under the Companies (Indian Accounting Standards) Rules, 21015 and a mendmen ts thereto issued by Ministry of Corporate Affairs under section 133 of the Companies Act, 2013. In addition, the guidance notes/ an noun cements issuad by the In sti tute of C hartered Accou ntants of India (ICAI) are also applied except where compliance with other statutory promulgations require a different treatment.

2.2 Aasis of preparation of fiuancial statements:

These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair val ues atuhe eud ofeach reporti ng perioU,as explained in the accounting policies below. Historical cost is generally based on the fail" value oU the considerations givenin exchange for goods and services.

ie estimatingtUe fair value ofan assetorliability,ihe company takes into accountthe characteristics ofthe asset or liability if market participants would take those ciaractsdstics into account when pricina the asset or liability at the measurement date. Fair value for measniement and/hu disclosure purpose in these financial statementsis determined on such a basis, except for share-based tayment transactions thht are within tin scope of Ind /iff i 02 Share-based Payment, leasing transactions that are within the scope ofInd AS 17 Leases, and measurements that have so me similarities to fair value but are not fair value, such as value in use in Ind AS 36 Impairmaot of assets.

In addition, for financialreporting purposet, ^fairvaluu meas urements uee categorized i nto Level 1,2 or 3 based on th e degree So which the inputs to the fair value measurements are observable and the significanca ofthe inputs to tise fair valuta mersurement is its entirety, which aredescaibed as Udiows:

Level 1 inputs cre quoted piices (unadjusted) in active markets for identical assets or liabilieies that the entity" can access at measuremect date;

Level 2 inputs are inputs, other than quoted prices included within Level 1,thature observab l efortheass etorl iabi l ity,eiiherdire ctly os indirectly;and

Ltvel 3 Inruis are not based on oiserva tale marketdata (u nobservableinputs) Fairvalues are determined in whole or in part using a valuation model based on assumptions that are neither supported by °tices from observable current morlcet transactionsin t^ae aume instrument no r are they" based on available matket Uata.

2.3 Use of Estimates:

The preparation of financial statements requires the management of the compaey to made eskimates aed assumptions to be made thataffecE tha reported amounts ofassets andliabilitiur on the date offinaocialstatements,disciosure ofcontingaot liabilities at at Uhe date ofthe financial statemunts, an^a the reported amoun ts of incomeand expenses during fhe reported period_e Estimates aed eederlying assumptions nre reviewed ou an ongoing batis. Revisions to accoenting esfimates are recognired in the periodin whicd the estimated are revised.

i) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured regardless of the time of receipt of the consideration.Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the company as part of contract. Taxes and duties collected on behalf of the government are excluded.

The specific recognition criteria of revenue recognition have been defined in para 2.7.

ii) Income tax

Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions.

iii) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by management at the time the asset is acquired and reviewed at the end of each reporting period. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The policy for the same has been explained under Note 2.5.

iv) Provisions

Provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. The policy for the same has been explained under Note 2.17

v) Fair value measurement of financial instruments

The Company measures financial instruments, such as, Investments at fair value at each balance sheet date using valuation techniques. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: a) In the principal market for the asset or liability, or b) In the absence of a principal market, in the most advantageous market for the asset or liability the principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the standalone financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable for assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes; of assets and liabilities on the basis of the nature, charactsristics and risks ofthe asset or liability and the level of the fairvalue hierarchy as explained above."

2.4 Currentversus non-current classification :

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

An asset is treated as current when it is:

i. Expectcd to be realised or intended to be solid or consumed in normal orerating cycle,

ii. Held primarily for the purpose oS tra ding,

iii. Erpected to be realised within twelve months after the reporting period, or

iv. Cash orrash equivalent unless restricted fram being exchanged or used to settle a liability for at least twelve months after the

reporting period

/All other assets are classified as non-current."

A liability is current wher:

i. It is uxpected to be settlad in normal spiralling cycle,

ii. Itis held primarily forthe purpose oftrading,

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional rig^fr to defer the settlement of the liaVility forat least twelve months after the reporting period.

All other liabilities f re classified as nonstusrent."

OperaVin⁰ cycle forthe businesr activities; o^gthe company rovers the duration of the specific project/contract/project line/service mcluding the defect liability fteriod, wherever applicable and extends uq to the realization of receivables (including retention monies) withi n t^f e agreed crtdi t pvtiod normally a pplicable to the respective lines of business. For non-project related assets and liabiNties, oparating cycfe ^:s^f 2 motths.

2.5 Property, Plant & Equipment and Intangible assets (Including Capital wortfin-Progress) :

Property, Plant & Equipment and intangible assets are stated at actuai cost less accumulated depreciation and not of impairment The actual cost capitalised includes material cost, freight, installation cost, dutiet aed Oaxee, eiigible torrowing costs and other incidental expenses incurred during the construction/installation stage.

Depreciatleamount forassets isthe costofanasset,orotheramount substitutad forcost,lesi itsertimated residcal value cortidered a 15%.

The estimatep useUul l ives snd residual value:; of the Psoperty, Plant & Eqtipmant and Intangible assets ares reviewed at the end of each rep orting per i cd,with the effect ofany c hanges in estimate accounted Sur on a prospective basis.

Assets costing uptg '' 5,^gf)0 ara fully depreciwte^g in ihe yeat of purchase except when they are part of a larger capital investment fjrogramme.

The cost o^f software purchased for infernal wse is capitalized and amortized in three yearr.

Technical know-how is amortized in six years.

An item oU Property, Plant Sr Equipment and intanfible assets is derecotfiseF upon disrosrl orwhen no future econgmic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposaior retirement of anitem of Aropnrty, Plant & Equipment and ivdangible assetr are determined as the difference between the sales proceeds and the ca rrying nmount ot the assetuad is recogni sed in the profit or loss.

Capisal work-in-h>rogruss, represerting expenditure incurred in respect ofassets underdevelopment and not readyfortheirintended use,are carried at cost. Co st indudes related acqu isition expenses and other diruct expenrfitu re.

Depreciation & Amortisation

Depreciation on Property, Plant & Equipment including assets taken on lease is charged on depreciable amount of assets based on straight line method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013. For any addition / disposal of assets, depreciation is charged on prorata basis on depending upon the number of days assets was in use.

The company has taken technical report on balance useful life of assets. Accordingly, depreciation has been calculated based on such revised useful life of the assets.

Depreciation is not recorded on capital work-in-progress until construction and installation are complete and the asset is ready for its intended use.

2.6 Impairment of Assets :

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. The recoverable amount of the tangible & intangible assets is estimated as the higher of its net selling price and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account. An impairment loss is recognised whenever the carrying amount of an tangible & intangible asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.7 Revenue recognition :

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the company as part of the contract. The same is recognised when the entity satisfies such performance obligations.

A Product Sales

i. In case of sale of products the revenue is recognised at a point in time .

ii. Domestic sales of manufactured items are recognized on dispatch and are stated net of returns, discounts and rebates.

Sales are recorded exclusive of applicable taxes.

iii. Amount recognised as sales are adjusted for any variable consideration as per terms of the contract.

iv. Export sales are recognized on date of bill of lading/ airway bill and/or passing of rights to the customer, whichever is earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction.

v. Income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and receipt of suppliers''/sub-contractors'' invoices.

vi. Income on account of price variation on sale of goods is recognized on the acceptance of the claim by the client and on certainty of its realization.

B Contract Revenue

i. In case of contracts which involves supply of goods and services and where company transfers control and satisfies performance obligation over time, the revenue is recognised over time. The company recognises revenue for a performance obligation satisfied over time only if its progress towards complete satisfaction of the performance obligation is reasonably measured. The company has used Input Method for measuring progress.

ii. When the final outcome of a contract cannot be reliably estimated, contract revenue is recognized only to the extent of costs incurred that are expected to be recovered. Expected loss is recognized immediately when it is probable that the total estimated contract costs will exceed total contract revenue.

iii. Escalation claims explicitly mentioned in contracts with customers and which cannot be reversed subsequently are considered as variable claims. The claims have been estimated using the expected value method.

C Service Revenue

Revenue from services are recognized as and when the services are performed.

D Interest and Dividend Income

i. Interest income is recognised using effective interest rate method.

ii. Dividend income is recognised when the Company''s right: to recei ve diviCen d i s establish ed

iii. Export Benefits

Export benefits are recogmzed on actual basis.

iv. All other incomes are recognised on accrualbasis.

2.8 Liquidated damages:

When revenue has been recognised after the contractual delivery period the amount of liquidated damages as per the termsofthe contract has been reduced from the amount of revenue recognised.

When revenue has not been recognised and the contractual delivery date is over the amount of liquidated damages to be impofed by the cuftomer hao been recognised es an expense and adequate provisions have been made.

2.9 Inventories:

Inventories which comprise raw materials, work-in-progress, finisOed goods, stock-in-trade, stores and spares, and loose tools are carried at the lower eOcost or net realisable; value.

a. Raw materials, Components, Stores and Spares a:e valued at lower of cost or net realizable value. However, materials and othe:items held ^fon use in the pooduction of inveniories are not written down below cost if the finished products in which they will be incorporated are expected to be sold at or above cost. The cost includes freight inward, direct expenses, duties acd taxer, otlnenthan those subsequently recoveralole. In cace of⁷ Heavy Engineering Division, it is arrived at on "FIFO Method" and other divisions on "Weighted Average Method"

b. Costs of Dies, Jigs, Tools and Patterns eurchased/ manufactured are charged off in relevant year, at lower of cost or net realizable value, arrived at afte r nroviding for suitable diminution/ amoreizatio n.

c. Goods-in-transit are valued at costs incurred till the Balance SheeC date.

a. Work-in-progress is valued at lower oh coet or net realizable value. The cost includes direct: meteriah direct labour, and

appropriate overheads booked on normal level ofactivity. The expenditure on uncompleted contrectsis amortized over the period ofthe contract on the; basis of sales booked.

e. Fmifhecl goods are valued at lower of cost or net realizable value.Costincludes rotated overheaSs acd wherevea applicable;

duties and other non recoverable taxes.

2.10 Goeernmen^f (grants :

Government grants are recognised when there is reasonable assurance that the Company will comply with the condi tiecs attaehed to them and the grants will be received.

Government grantc whosp primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are re cognised as deferred revenue in the financial statements aed transferred to profit orloss on a systematic and rational basis over the useful life of the related assets"

Grants related to revenue are accounfed for as otCer ieeome in the periodin which the celated costs which Gnvernmeof inteei to compensete are acceunted for to the extent there is oo uncertainty in receicing tZo same. Incentives which are ic Che nature of rulsi diee given by the Governmeet which are based oc the performance of the Company. are rewog nised in theyearoc performance/ eligibility in ecccrdance with tce relate! scheme.

Government grants in the form of non-monetary assets, given at a concessional rate,are accoanted for at theirfakvalue."

2.11 Foreign currency transactions :

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.

Exchange differences arising on settlement or translation of monetary items are recognised in Statement of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to interest costs on foreign currency borrowings that are directly attributable to the acquisition or construction of qualifying assets, are capitalized as cost of assets. Additionally, exchange gains or losses on foreign currency borrowings taken prior to April 1,2016 which are related to the acquisition or construction of qualifying assets are adjusted in the carrying cost of such assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also recognised in OCI or Statement of Profit and Loss, respectively)"

2.12 Financial Instruments :

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

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Following are the categories of financial instrument:

a) Financial assets at amortised cost

b) Financial assets at fair value through other comprehensive income (FVTOCI)

c) Financial assets at fair value through profit or loss (FVTPL)

a) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest rate method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Debt financial assets measured at FVOCI:

Debt instruments are subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Equity Instruments designated at FVOCI:

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income'' The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

c) Financialassets at fair value through profit or loss ( FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changesin fair value in other comprehensive income forinvestments in equityinstruments which are not held for trading. Other financial assets such as unquoted Mutual 2urds are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition.

Derecognition

Afinancial asset (or,where applicable,a part ofa financialasset or part ofa groupofsimilarfinascial vssets)is ^erimarily derecognised (i.e. removed from the Company''s balance sheet) when:

a) the rights to receive case flows from tine asset hava expired, or

b) the Company has transferred ^:ts rights to receive cas^e flows from the asset, and

i. the Company has transferred substantially all the risks and rewards of the asset, or

ii. the Company has neither transferred nor retained substantially all the risks and rewards of theasset, but hastransferred control of the asset.

When ohe Company has trocsferred its eights to ceceive cash flows from an asset or has entered into a pass-through arrangement, it evaluates .f and to what extent it Vas retained the riskn and rewards of owcership. When it has neither transferred nor retained hubstantiallyall ofthe riske and rewards of tie asset, cvr transferred control of the asset, the Company continues to recognise the transferred asset to the extent of the Company''s continuing involvement. lu uhat case, the Company also recognises an associated liability. The transferred asset and the associated liability/ are measured on a basis that reflects the rights and obligations that the Company has retained. Cootinuing involvement tVat Cakes the form o° a guarantee over the transferred asset is measured at the lower oVthe osiginal carrving amornt oCthe asset:and the maximum areountofconsideration that the Company could be required tn repay.

Impairment offinancial assets

In accordance wirh Ind AS 109, the Company applies expected credit loss (''ECL'') model for measurement and recognition of impairmentlosh on the followiog financial arsets and credit risk exposure:

aS Fmancial assets that are debt instrum^rts, aad are measured at amortised cost e.g., loans, depositr, trade receivables and

bank tsa^|ancv

b) Financial assets that are debt instruments and are measured at FVTOhl.

c) Fmancial guarantee contracts which are not measured as at FVTPL.

Tie Companyfollows ''simplified approach'' for recognition of impairment loss allowance on trade receiva^ples. ⁿhe applicatioo of simplified approach does not require the Company to track changes in credit risk. Rather, .t eetognisesimpaism en t lossallowan ce bbsed onlifetimf EbLs at ef ch reporting date, rigpt from its initial recog nition.

ror recopnition of imvcirment lost on other financivi assets and risk axposure, the Company. determmes that whether there has Ccen a sigsificant increase in the credit risk since initial recognition. Ih credit civic lias aotincreased ssignificantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significanrly,lifetime ECLis used. Ii,in a snbsequentperiod, aredit quality ovrhe instrumentimproves such that there is eo longer a sigoificantincrease in credit risk since initial reoovtition, then the entity, reverts no recognising impairmenn loss allowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life ofa financial instrum ent. Thb 12-month ECL is a portion of the lifetime ECL whivh results from default events that are potsible within (2 months after the reporting dafe^f

ECL is tire differnn ce be tween cil contractual cash. fl ows that are due to the Core pa ny in anco rdancl wife the contra ct and all the lash flows that fee entity exfects to receive (i_ie.,all cash rhortfalls), discounted at the original EIR. When estimating the cash flows, al entity is required tv consider:

ECL impairment losr allowance (or reoersal) recognioed during the periodis recognized a r income/ exfense il the Stvtemvnt of Profit and Loss. Tfes amount is reflected under the head ''other expenses'' in the Statement of Profm and Loss. In the balance sheet,

ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

Offsetting:

Financial assets and financial liabilities are offset and the net amount is reported in the standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.

Loans and borrowings

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings."

De-recognition

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

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss

allowance determined as per impairment requirements of Ind AS 109 and the amo unt recognised less cumulative amortisation. Reclassification offinancial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial reen^gnition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to rhe business model are expected to be infrequent. The Company''s senior management dntermines changein the businegs model as a result of external nr internal changes which are signi^hcant to the Company''s operations. Such changes are? evident to external parties. A changein the business mod el occurs when the Company either begins or ceases to perform an activity that is significant ao its operations. If the Company reclassifies financia¹ assets, it applies the reclassification prospectively from the reclassification date which is the first day of theimmediately next reporting period following the change in business model. The Company does not restate any previously aecognised gains, losses (including impairmen t ga i n s o r I os s e s) o r i nte rest.

2.13 ^hmployeebenefits:

i) Gratuity

The Company accounts for its gratuity liability, a defined retirement benefit plan covering eligible employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee''s salary and the tenure of the em ployment. Liabilities with regard to a Gratuity plan are rigtermineei baged on the aciuarial voluation carried out by an iadependenr actuary as at the Balance Sheet date using the Projected Unit Crnd^|t method.

Actuarial gains and losses are recognised in full in other comprehensive income and accumulated in equity in the period in which they o ccur Pant serviae cost is rocognised in profit or lossin the period of a plan amendment.

ii) Provident Fund

Tie eligible emgloynes of thm Company! are enlitled to receive the benofitsaf Providen) fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary (currently at 12%o of the basic salayy) which are charged to the Statement of Profit and Loss on accrual basis. The providentfund centri butions are raid to the R egional Provident Fund Commissioner by the Company.

T^fe Company has no further o bligafionn for future provident fund "

iii) Superannuation and ESIC

Superannuation fund and Employees'' Sta te insurance scheme (Eⁿf,whiahate defi ged contribution schem es, are chi asged to fhe Statrment of Crofit and Less on nncrual basis.

The Companⁿ has no fijnthnr obligations for futurt enperannuat.on fund henefits otherthanits annual cont ributions"

iv) Compensated absences

The Company provides for the compensated absecces subject to Compsny''s certain ruies. The employees cre entitled to accumulate leare subject to certain limits,forhjeure encashment ot availment.The liability/ is provided biased on the nymber ofd ays of unavailed leave at each Balance Sheet date on the basit o^san independ ent actuarial va l uafi on ms i ng the Projected Unit Crnhlt method.

The liab.lity which is not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised based on actuarial valua tion as a t the Balan ce Jilteet date.

Actuarial gaits andlosse s are recognised i n lull in the Statement ofProfitand Loss in th e period ic woich they occ ur.

The nnm psany also offers a short term benefit in the form of encashment of unavafied acaomulated compensated abse nce above certain limit for al! olits employees and same is being provided for in the biooks at actcal cost."

v) Othershort term employee benefits

Emfloyee be nefits such as salaries, i ncennives, overtime, bonus, ex-gratia end orrforman ce-linked reward. falling due wholly within twelvn montnt of rendering the sorvice are clessified as sOert-term employee benefits and are expegred in the periot in which the employee renders the service.

2.14 Borrowing costs :

Borrowing costs that are directly attributable to the acquisition or construction or production of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to the Statement of Profit and Loss.

2.15 Taxation :

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the local tax laws existing in the respective countries.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.

Advance taxes and provisions for current income taxes are presented in the statement of financial position after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax asset are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period.

Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

2.16 Earnings per Share :

Basic earnings/ (loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the period and also after the Balance Sheet date but before the date the financial statements are approved by the Board of Directors.

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

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

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Mar 31, 2023

2. Significant accounting policies :

2.1 Statement of Compliance :

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015.

2.2 Basis of preparation of financial statements :

These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

In estimating the fair value of an asset or liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purpose in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 Share-based Payment, leasing transactions that are within the scope of Ind AS 17 Leases, and measurements that have some similarities to fair value but are not fair value, such as value in use in Ind AS 36 Impairment of assets.

In addition, for financial reporting purposes, fair value measurements are categorized 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, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

2.3 Use of Estimates :

The preparation of financial statements requires the management of the company to make estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised.

Critical accounting estimates

i) Revenue Recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured regardless of the time of receipt of the consideration. Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance

obligation. The; transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered lay the company as part of contract. Taxes and duties collected on behalf of the government are excl uded .

The specific recognition criteria of revenue recognition have been defined in para 2.9.

ii) Income taxes

Significantjudgements are involved in dedermining the provision for i ncome taxes, i ncluding a mount expected to be paid/ recovered hor ancertain tax positions.

iii) Property, plant and equipment

Property, plant and equipment rep resent: a sign ificant propo rti o n of⁷ t h e a s s e t ba s e of th e Co m pa ny. The charge in respect of periodic de^preaiation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of⁷ itflite. The usefullives and residual values of Company''s assets are determined by management at the timn the asset is acquired and reviewed at the end of each reporting period. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The policy for the same has been explained under Note 2.5.

iv) Provisions

Provision is recognised when the Company has a present obligation asa resultof past event and it is probable that an outflow of resources will be required to settle the obligation, in reopect ofwhich a reliable estimate can be made. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. The policy for the same has been explained under Note 2.19.

o| Fair value uneasurement oX financial instruments

The Company measuresfinancial instruments, sech as, Investments at fair valee at each balance sheet date using valuation teciiniques. Fair value is the pricfthatwould be received to sell an asset or paid to transfer a liability in an orderly transaction between market participantu at ^rhe measurement date. The fair valwe measerementis based on the presumption that the transdctiud to sell the aseet or transfete thc liability takes place either: a) In the principal market for the asset or liability, or b) In the absence ofa perincipal market, in the? most advantageous market for the asset or liability The principal or the most acteantageous market must tie accessible by t°p Company. The fair value of ae asset or a liability is measured using the aseumptions t hat market part:icipants would use when pricing the astet or liability, assuming that market participants actin their economic best interest. A fair value measurement of a non-financial assettakes ioteaccoueta market partinipant''saluility to generate economic btenefitr by using the asset in its highest: and best utu er by selling it to another market participant ehat weuid use the asset in its highest and best use. The Company uses valuatiun techm quer that arc appro peiete in thc circumstances and for which sufficientdata are available to measure fair value, mcx^iting the use of relevant observable inputs and minimising the use of unobservable inputs. All assets and liabilities forwhich fakvalne is measured ordisclosed ie the standalone financial statements are categorised within the fair value hierarchy, desc ribed as follorvs, teased o n the lowest level inputthat is significant tea t^fe fair value measurement as a w^uole:

Leve ll — Quoted (unadj usted) m arCei prices in acti ve markets foridentical assets or liaiail ities

Level 2 — Valuation techniques for which the lowest level input thatis sieniticant to the fairvalue measurement is directly or indirectiy observaPle

^uevel 3 — Valuation techniques ^for which the lowest level input that Is significant to the fair value measurhmnnt is unobservable for assets and liabilities that are recognised in the standalone hinancial statement! on a recutring basis, the Company determines whethrr transfeas have oacurred between levelsin the hierarchy by re-assessing categorisation (heseh on the fewest level input teat: is sign ificant to the fair value measuremenh as e whole) at th o en d of ecch reporting peri od .

For tPe pirpose of fair value disclosures, the Company has determined classes of asse^ps and liabilities on the taasis of the nature, chara cteristics and risks of the as set orliability and the level ofthe ^sa ir valu e hie rwrchy as explaine d above.

2.4 Current versus non-current classification :

The Company presen ts assets an d liabilities in the balance sh eet based on cercent:/ non- cut-en^f classi fication.

An asset is treated as current when it is:

i. Expected to be realised or intended to be sold or consumed in normal operating cycle,

II. Held primarily for the purpose of trading,

iii. Expected to be realised within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle,

ii. It is held primarily for the purpose of trading,

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

Operating cycle for the business activities of the company covers the duration of the specific project/contract/project line/service including the defect liability period, wherever applicable and extends up to the realization of receivables (including retention monies) within the agreed credit period normally applicable to the respective lines of business. For non-project related assets and liabilities, operating cycle is 12 months.

2.5 Property,Plant & Equipment and Intangible assets :

Property, Plant & Equipment and intangible assets are stated at actual cost less accumulated depreciation and net of impairment. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, eligible borrowing costs and other incidental expenses incurred during the construction/installation stage.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

The estimated useful lives and residual values of the Property, Plant & Equipment and Intangible assets are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Assets costing upto '' 5,000 are fully depreciated in the year of purchase except when they are part of a larger capital investment programme.

The cost of software purchased for internal use is capitalized and amortized in three years.

Technical know-how is amortized in six years.

An item of Property, Plant & Equipment and intangible assets is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of Property, Plant & Equipment and intangible assets are determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit or loss.

Depreciation & Amortisation

Depreciation on Property, Plant & Equipment including assets taken on lease is charged based on straight line method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013. For any addition / disposal of assets, depreciation is charged on prorata basis depending upon the number of days assets was in use.

The company has taken technical report on balance useful life of assets. Accordingly, depreciation has been calculated based on such revised useful life of the assets.

2.6 Investment:

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

On initial recognition, all investments are measured eat cost.The cost comprises purchase price and directly attributable acquisition charges such as brokerage, Oees and duties. If an investment is acquired, or partly acquired, by the issue of shareo or other senurities, the acquisition costis thefairvalue ofthe secuntier issnod. Ifan investmentisacquired in exchange for aootherasset, theacqeisition is determined by reference to the fair valua of⁷ tⁿe asset given up or by reference to the °air value of the investment acquired, wh ichever is more clearly evident.

Current investments are carried in the financial statements at lower of costand fair value determined on an individualinvestment ba sis. Long term investments aru ca rried atuost.

However, provision for dibninution inaalee is mtde to recenn ize a decline oehnf than temporary in the vaiue of the investm ents.

On disposal of an investment, the difference between its carrying amount ynd net disposal proceeds is charged or credited to the sOa tbmeni erf profit and loss.

In vest men ⁰ Property

investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. All of the Company''s property interests held under operating leases to earn rentals or for capital appreciation purposes are accounted for asinvestment properties. Alter initial recognition, the company measures investment property at cost.

Ac investmen° propesty is derocognizod upon d^posal ot when the investment property is permanently withdrawn from use and no future economic benefits ars expected from the disposal. Any gain or loss arising on de recognition of the property (calculated as th e difference between t°e n etⁿ isposal proceeds and th b carryisn a mount of the asset) is included in profit or loss in the period in which the property is derecognized.

Investment propertiey are de preciate d iu ascord ance to the class bfa sset that it belongs and the life of the asset is as conceived for 1:he same rlass of assetatahe Company

2.7 Leases:

T°s determinaticn ofwhether an arrangemvntis (orcontains) a lease is based on the substance of the arrangement at the inception o°the lease. The arrangement is, or contains¹ a lease if⁷ ftjfilm en^g ofthe aarangement is dependent on the use of a specific asset or asnets and the arrangemert conve°s a rightto use ^ohe asset or assets, even if that right is not explicitly specified in an arrangement.

Loases are classified as finance leases whenever the terms of thr lease transfer subntantially all the risks and rewards of ownership eo thelessee.All other leases are? rlassinied as operating loase s.

i) Finance Lease

Where the Company, as a lessor, leases assets under Oinance lease, sucS amounts are recognised ns receivables ab an amount equal to the eet investment in theloase and the (inance income is based on constane rate of⁷ return on the outstanding net investment?

Assets taken on finance lease are initially recognised as assets ofthe Company a°^yheir fair value at th eincep tion ofthn lease or, if lower, at the present value ob the minimum lease payments. Lease payments are apportioned between finonce costs and reductioe ofouestanding liability. Finance toses are recognisud as an expense in the statement of profit or loss over the period oflease, unless they are directly attrifutable to qualifying assets, in which case the?;/ are capitalized in accordcnce with Company''s general policy on borrowing costs.

ii) Operating Lease

^ase arrangementa unden which all risks and rewards of ownership are effectively retaieed by the leesor are classified as opera ting lease. Lease rental under operating lease are recognised in the Statement of Profit and Loss on a straight !ino basis overthelpaseterm.

iii) Sale and Lease back transacti on

In case of a sale and leaoenacn transaction resolting in a finance lease, any excess er deficioocy of sales proceeds over the careying amount is deferred and amoreised overthe lease term in proportion te the debreciation of the leased asset.

Profit or °oss on Sale and i-eaoe back arrangement! resulting in financeleases are recognised, in case tie transaction is establinhed at fair value, else the excess iver the? fair value is deeerree and amortises! over the period for which ohe aoset is expeuted to be used.

2.8 Impairment of Assets :

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, the Company estimates the asset''s recoverable amount. The recoverable amount of the tangible & intangible assets is estimated as the higher of its net selling price and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining net selling price, recent market transactions are taken into account. An impairment loss is recognised whenever the carrying amount of an tangible & intangible asset or a cash generating unit exceeds its recoverable amount. Impairment loss is recognised in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.9 Revenue recognition :

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the company as part of the contract. The same is recognised when the entity satisfies such performance obligations.

A Product Sales

a. In case of sale of products the revenue is recognised at a point in time .

b. Domestic sales of manufactured items are recognized on dispatch and are stated net of returns, discounts and rebates.

Sales are recorded exclusive of applicable taxes.

c. Amount recognised as sales are adjusted for any variable consideration as per terms of the contract.

d. Export sales are recognized on date of bill of lading/ airway bill and/or passing of rights to the customer, whichever is

earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction.

e. Income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and receipt of suppliers''/sub-contractors'' invoices.

f. Income on account of price variation on sale of goods is recognized on the acceptance of the claim by the client and on certainty of its realization.

B Contract Revenue

a. In case of contracts which involves supply of goods and services and where company transfers control and satisfies performance obligation over time, the revenue is recognised over time. The company recognises revenue for a performance obligation satisfied over time only if its progress towards complete satisfaction of the performance obligation is reasonably measured. The company has used Input Method for measuring progress.

b. When the final outcome of a contract cannot be reliably estimated, contract revenue is recognized only to the extent of costs incurred that are expected to be recovered. Expected loss is recognized immediately when it is probable that the total estimated contract costs will exceed total contract revenue.

c. Escalation claims explicitly mentioned in contracts with customers and which cannot be reversed subsequently are considered as variable claims. The claims have been estimated using the expected value method.

C Service Revenue

Revenue from services are recognized as and when the services are performed.

D Interest and Dividend Income

a. Interest income is recognised using effective interest rate method.

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

E Export Benefits

Export benefits are recognized oe actual basis.

F All other incomes are recognised on accrual basis.

2.10 Liquidated damages :

When revenue has been recognised after the contractual delivery period the amouft oS li qu idated damages as p erthe te rm s of the contract has been reduced from the amount of revensa recognised.

When revenue has not been recognised and the contractualdelivery date is over the amount of⁷ liquidatuci damages to be imposed by the customer has been recognised as an expense and adequate provisions have been made.

2.11 Inventories:

Inventories which comprise raw materials, work-in-progress, finished goods, stock-in-trade, stores and spares, and loose tools are carried at the lower of cost or net realisable value.

a. Raw materials, Components, Stores and Spares are valued at lower of cost or net realizable value. However, materials and otheritems field for use in the productior of irventories are not written down below cost if the finished products in which they will be incorporated are expe cted to be sold at o r above cost. The cost includes freight inward, direct expenses, duties and taxes, uoherthan those srbsequently recovarafle. In case oC Heavy Engineering Division, it is arrived at on "FIFO Method" atd other divisions on "Weighted Average Method"

b. Costs of Dies, Jigs, Tools and Patterns purchased/ manufactured are charged off in relevant year, at lower of cost or net realiza bile val ue, arrived at after providing for suitable diminution/amortization.

c. Goods-in-transit are valued at costs incurred till the Balance Sheet date.

d. Work-in-progress is valued at lower of⁷ cost or ne^h realizable valte. The cost incltdts direct material, direct labour, and a|upropriata overheads booked on normal level ofactivity. Thaexpenditure of uncompltted contracts is amortized over the pseriod ofthc contract: on the basis of sales booked.

e. Fini shed goods are; valued atlower of cost or net realizable value. Cost includes related overheads and wherever applicable duties and other non recoverable taxes.

2.12 Government grants:

Government grants are recognised when there is reasonable assurance thatthe Company will comply with the condition attached to them and the grants will be received .

Government grants whose primary fdddition is that the Company sheulf purchase, codstruct or otherwise acquire non-current assets are recognised as deferred revenue in the financial statements ecd transferred to preSit or loss on a syetematic and rational basis overthe usefullife ofthe rela ted assetr."

Grants related to revenue are accounted fbr as other income in the period in which tirz related costs which Govehnment intend io compensate are accoented eor to the extent there is no uncertaintyin receiving the same.Incentiver which are in the nature? of cubsidies given try the Government which are based on the performance ofthe Company are recognised in the°ear of performance/ eligibility in arcorda nce with the rela ted scheme.

Government grants in tha form of⁷ non-msnifory assets, give n at a concessional rate, are accounted for at their fair value."

2.13 Foreign currency transactions :

Tranractions in foreigncurrcncies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominaCed id foreign crrrencies are translated at the funcOional currency closing rates ot exchange at the reportine date.

Brchange differetcer arising on setdemeat or tranclation sf⁷ monetaryitems are? recognised in Statement oi Protit and Loss except: to the exten^f offoxchange di fferences which are regarded as a n adjustment: to interest costs on foreign currency borrowin gs that are? directly attributaicle to the ucquis^|tion or cosctruction e^f qualifying assets, are capitalized as eosⁿ of asaets./^!t(^sdit:ionally, exchange gains or losses on foreign currrncy borrowing! taken prior to April 1, 2016 which are related to the acquisitien or construction of

qualifying assets are adjusted in the carrying cost of such assets. Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded using the exchange rates at the date of the transaction.

Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also recognised in OCI or Statement of Profit and Loss, respectively)"

2.14 Financial Instruments :

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

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value, plus in the case of financial assets not recorded at fair value through profit or loss (FVTPL), transaction costs that are attributable to the acquisition of the financial asset. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Following are the categories of financial instrument:

a) Financial assets at amortised cost

b) Financial assets at fair value through other comprehensive income (FVTOCI)

c) Financial assets at fair value through profit or loss (FVTPL)

a) Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost using the effective interest rate method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

Debt financial assets measured at FVOCI:

Debt instruments are subsequently measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Equity Instruments designated at FVOCI:

On initial recognition, the Company makes an irrevocable election on an instrument-by-instrument basis to present the subsequent changes in fair value in other comprehensive income pertaining to investments in equity instruments, other than equity investment which are held for trading. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognised in other comprehensive income and accumulated in the ''Reserve for equity instruments through other comprehensive income'' The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

c) Financial assets at fair value through profit or loss (FVTPL)

Investments in equity instruments are classified as at FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investments in equity instruments which are not held for trading. Other financial assets such as unquoted Mutual funds are measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through other comprehensive income on initial recognition.

Derecognition

A financial asset (or, where applicable, a part of a financial astet or part of a group of simila r financial ass ets) is pri marily derecognised (i.e. removed from the Compana''s bala nce sheet when:

a) the rights to receive cash flows from the asset have expired, or

b) the Company has transferred its rights to receive cash flows from the asset, and

i. the Company has transferred substantiallyoll the risks and rewards of1:he osset, or

ii. the Company has neitheetransforred not retained substantially all the risksand rewards oftheasstt, buthastransferred control ofthe asset.

When the Company has transferred its rights to receive cash flows fro m an as s e t o r h as en te r ed i nto a pas s-through arrangement,

it evalaates if and to what extent it has retailed the rirks and rewards of ownership. When it has neither transferred nor retained substantially all o f the risks an. rewards ot th e asset nor transferred control of the asset, the Company continues to recognise the ^cransforred asset to the extent of the Company''s continuing involvement. In that case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amountofthe asset and the maximum amount of consideration that the Company could be required to repay.

Impairment otfinancial assets

In accordence with Ind AS 109, the Company applies expected rrtdit ioss (''ECL'') model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, deposits, trade receivables and bank balance

b) Fmancialassets ^fhat are debt inst ruments and are mea sured at FVTOCI.

c) Financial guarantee contracts which nre not measured as at FVTPL.

Tlie Cnmpany followt ''simplified approach'' for recognition of impairment loss allowance on trade receivables. The application of simplified approach cfoes not require the Company to track nhanges in credit risk. Rather, it recognises impairment loss allowance based onlifetime EC^fs at each reporting date, right from itr initial recognition .

For recognition of impairment loss on other financial assets and risk exposure, the Company) deturmines that whether chere has been a significant increase in the credit risk since initial recognition. If credit eisk has notincreased significantly, 12-month OCL is used to provide for impairment lose. However, if credit ric^ohas increased significantly, lifetim e ECL i c nsef. If,in a s ubsequent poricd, credi^f quality of the inrtrument im|ttoves such that t.ereis no longes a significant increcse in credit risk since initial recognition, then the entity reverts to re co gnicing impairment lossallowance based on 12-month ECL.

Lifetime ECL are the expected credit losses resulting from all possible default evintsoeerthe expectnd life o.a financial instrument. USe 12-month ECL is a portion oS the lifetime, ECL wtich results from dn^fault events t.at are ^fossible nvithin 12 mouths after the reporti ng df1e.

CfL is the Aifference between all contractual cash flows that are due to the Compacy in accordance with the contract acf all tou cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted at the original Elf^. When estimating the cash flows, an entity is reeuired to aansiderr

^fCL impairment lots; allowance (or reve^al) re cognized during th e period is recognized af income/ expens e in the Statem tnt of Profit and Loss . This amount is reflected under the head ''other expenses'' in the Statement o! Profit and Loss. In the balance sheet, ECLis presentpd as an allowance, i.e., as an integral part of the measurement ot those asretsin the lalanfe sleet. The allowance deduces the nettarrying amount. Until ohe asset mets write-off criteria, the Company does nnt raetce impairmentallowance from Ahe gross caorying amount.

Offsetting:

Financialassetsand financial liabilities are doet and the netamount is reported in the standalone balancesheetifthereis a currently enforceable legal right to offset the recognised amotrUs and there is ani^ecdm to sattle on a ntt basis, to realise the assfts and eettle the liabilities simultaneously.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company''s financial liabilities include trade and other payables, loans and borrowings.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/ loss are not subsequently transferred to P&L. However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the statement of profit or loss.

Loans and borrowings

"This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to borrowings.

De-recognition

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

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less cumulative amortisation.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent. The Company''s senior management determines change in the business model as a result of external or internal changes which are significant to the Company''s operations. Such changes are evident to external

parties. A change in the business model occurs when the Company either begins orceases to perform an activity that is significant to its operations. If the Company reclassifies financi al assets, it applies the reclassification prosp ectively from the recla ssifi cation date which is the first day of⁷ the immediately next reporting period following the change in °usiness model. The Company does not restate any previously recognised gainsjosses (including impairment gains orlosses) orinterest.

2.15 Employee benefits :

i) Gratuity

The Com|nany accounts for its gratuity liabi lity, a defined retirement benefit plan sovering elig ible empioyees. The gra tuity plnn provides for a lrrmp fum payment to emplrryees at retirement, death, incapacitation or termination of⁷ the employment based on the respective em|oloyee''s salary and the tenure of the employment. Liabilities with regard to a Gratuity plan are determined baned on the actuarial valuation carried out by an independent actuary as at the Balance Sheet date using the Projected Unit Credit method.

Actuarial gains and losses are recognised in ^fullin other comprehensive income and accumulated in equity in the period in which they occur. Past service cost is recognised in profit or loss in the period of a plan amendment.

ii) Provident Fund

The eligible employees oftfe Companyare enrifled to receive the benefits of Provident fund, a defined contribution plan, in uvhich both employees and the Company maie monthly contributions at a specified percentage of the covered employees'' nalary (currently at 12% of the basic nalary) wfirh are charged to the Statement of Profit and Loss on accrual basis. The provident °und contributions arte paid to the Regional Provident Fund Commissioner by the Company.

The Company has no further obligations for future provident°und."

iii) Superannuation usd ESIC

Superannuation hund and Employees''State insurance scheme (ESI), which are defined contribution schemes, are charged to the SSatement of Profitand Loss on accrual Oasis.

T^pe Company has ns brother obligations for feture superanccction ff nd bensfits other than its annual contributions." fv) Com pensated adrances

The Gcmpany provides for tire nompensathd absences subject to Company''s certain rules. The employees are entitled to ascumulate leove subjectto certain limits, for futuse encashment orcvailment.The liability is provided based on the nyrnber o^f days of una vailed leave at each Bclance Sheet date on the basis of⁷ a y mdepnnde nt actuarial valu ation usin g th e Projected Unit (Credit method.

The liability which is not expected to occur within twelve months eaftet the? end of the period in which the employee renders ^she related serrices are recognised based on actuarial valuation as atthe Balance Sheet date.

Achuarinl gains and losses are recognised in full in the Statement o^f Pro^fit an^f Loss in the period in which they occur.

The company also offers a short term benefit in the form of encashment of unavailed accumu!ated comphnsated absence above certain limit for all of its employees and same is being provided for in the books atactual cost.

v) Other short term employne benefits

Oth er short-term employee benefits such as overseas social security contridutions and penOormance iycp°tive s expected to be paid in exchangn Sor the nervices rendered by employees, are recognised in the statement of proSit anO loss during the period when the employee senders the service.

2.16 Borrowing costs :

Borrowing costs that ace directlyattribetalsle to the acquisition or constroction or production ofqualifying assets are capitalized as part of the asst ofsuch assets. A qualifying assetis one that necessarily takesasubstantial period oftimeto get ready? forits interidsf ete or sale. All other borrowing costs aue charged to thF Statement of Profit and Loss.

2.17 Taxation:

Sax expense comprites oOcurrent tax ani deferred tax. Current tax is measured at the amount expecied to be paid to / recovered from the tax authoritias, bafed on estimated tax liability? computed after taking credit for allowances and exemption in accordance with the local tax laws nxistinn in the respectivn countries.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.

Advance taxes and provisions for current income taxes are presented in the statement of financial position after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax asset are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period.

Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

2.18 Earnings per Share :

Basic earnings/ (loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the period and also after the Balance Sheet date but before the date the financial statements are approved by the Board of Directors.

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

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

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Mar 31, 2018

1. SIGNIFICANT ACCOUNTING POLICIES :

1.1 Statement of Compliance :

The financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) specified under Section 133 of the Companies Act, 2013, read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015. These are the Company’s first financial statements prepared in accordance with Ind AS and Ind AS 101 First time adoption of Indian Accounting Standards has been applied.

An explanation and effect of transition from Indian GAAP (referred to as “Previous GAAP”) to Ind AS has been described in Note 37 to these financial statements.

1.2 Basis of preparation of financial statements :

These financial statements have been prepared on the historical cost basis, except for certain financial instruments which are measured at fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

In estimating the fair value of an asset or liability, the company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purpose in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 Share-based Payment, leasing transactions that are within the scope of Ind AS 17 Leases, and measurements that have some similarities to fair value but are not fair value, such as value in use in Ind AS 36 Impairment of assets.

In addition, for financial reporting purposes, fair value measurements are categorized 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, which are described as follows:

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at measurement date;

Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

1.3 Use of Estimates :

The preparation of financial statements requires the management of the company to make estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of financial statements, disclosure of contingent liabilities as at the date of the financial statements, and the reported amounts of income and expenses during the reported period. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised.

Critical accounting estimates

i) Revenue Recognition

The Company applies the percentage of completion method in accounting for its fixed price contracts. Use of the percentage of completion method requires the Company to estimate the efforts or costs expended to date as a proportion of the total efforts or costs to be expended. Efforts or costs expended have been used to measure progress towards completion as there is a direct relationship between input and productivity. Provisions for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

ii) Income taxes

Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions.

iii) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by management at the time the asset is acquired and reviewed at the end of each reporting period. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The policy for the same has been explained under Note 2.5.

iv) Provisions

Provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. The policy for the same has been explained under Note 2.19.

1.4 Current versus non-current classification :

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

An asset is treated as current when it is:

i. Expected to be realised or intended to be sold or consumed in normal operating cycle,

ii. Held primarily for the purpose of trading,

iii. Expected to be realised within twelve months after the reporting period, or

iv. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

i. It is expected to be settled in normal operating cycle,

ii. It is held primarily for the purpose of trading,

iii. It is due to be settled within twelve months after the reporting period, or

iv. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. All other liabilities are classified as non-current.

Operating cycle for the business activities of the company covers the duration of the specific project/contract/project line/service including the defect liability period, wherever applicable and extends up to the realization of receivables (including retention monies) within the agreed credit period normally applicable to the respective lines of business. For non-project related assets and liabilities, operating cycle is 12 months.

1.5 Property, Plant & Equipment and Intangible assets :

Property, Plant & Equipment and intangible assets are stated at actual cost less accumulated depreciation and net of impairment. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, eligible borrowing costs and other incidental expenses incurred during the construction/installation stage.

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on Property, Plant & Equipment including assets taken on lease, other than freehold land is charged based on straight line method on an estimated useful life as prescribed in Schedule II to the Companies Act, 2013.

The estimated useful lives and residual values of the Property, Plant & Equipment and Intangible assets are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Assets costing upto Rs. 5,000 are fully depreciated in the year of purchase except when they are part of a larger capital investment programme.

The cost of software purchased for internal use is capitalized and amortized in three years.

Technical know-how is amortized in six years.

An item of Property, Plant & Equipment and intangible assets is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of Property, Plant & Equipment and intangible assets are determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit or loss.

1.6 Investment Property :

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost model in accordance with Ind AS 16 Property, Plant and Equipment.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.

1.7 Leases :

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

i) Finance Lease

Where the Company, as a lessor, leases assets under finance lease, such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is based on constant rate of return on the outstanding net investment.

Assets taken on finance lease are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance costs and reduction of outstanding liability. Finance costs are recognised as an expense in the statement of profit or loss over the period of lease, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with Company’s general policy on borrowing costs.

ii) Operating Lease

Lease arrangements under which all risks and rewards of ownership are effectively retained by the lessor are classified as operating lease. Lease rental under operating lease are recognised in the Statement of Profit and Loss on a straight line basis over the lease term.

iii) Sale and Lease back transaction

In case of a sale and leaseback transaction resulting in a finance lease, any excess or deficiency of sales proceeds over the carrying amount is deferred and amortised over the lease term in proportion to the depreciation of the leased asset. Profit or Loss on Sale and Lease back arrangements resulting in finance leases are recognised, in case the transaction is established at fair value, else the excess over the fair value is deferred and amortised over the period for which the asset is expected to be used.

1.8 Impairment of Assets :

i) Financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognises lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12 month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

ii) Non-financial assets

Property, Plant & Equipment and Other Intangible assets

Property, Plant and Equipment and Other intangible assets with finite life are evaluated for recoverability when there is any indication that their carrying amounts may not be recoverable. If any such indication exists, the recoverable amount (i.e. higher of the fair value less cost to sell and the value-in-use) is determined on an individual asset basis unless the asset does not generate cash flows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the cash generating unit (CGU) to which the asset belongs. If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is reduced to its recoverable amount. An impairment loss is recognised in the profit or loss.

1.9 Revenue recognition :

A Product Sales

a. Domestic sales of manufactured items are recognized on dispatch and are stated net of returns, discounts and rebates. Sales are recorded exclusive of applicable taxes.

b. Export sales are recognized on date of bill of lading/ airway bill and/or passing of rights to the customer, whichever is earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction.

c. Income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and receipt of suppliers’/sub-contractors’ invoices.

d. Income on account of price variation on sale of goods is recognized when significant risks and rewards of ownership of such goods are transferred and such revenue is capable of being reliably measured.

B Contract Revenue

a. In case of certain long term contracts, revenue is recognized on ‘Percentage of Completion Method.’ Percentage of completion is determined as a proportion of costs incurred to date to the total estimated contract costs. Contract costs include costs that relate directly to the specific contract and costs that are attributable to contract activity and allocable to the contract. Costs that cannot be attributed or allocable to contract activity are expensed as and when incurred.

b. When the final outcome of a contract cannot be reliably estimated, contract revenue is recognized only to the extent of costs incurred that are expected to be recovered. Expected loss is recognized immediately when it is probable that the total estimated contract costs will exceed total contract revenue.

c. Variations and claims for escalation are recognized as a part of contract revenue to the extent it is probable that they will result in revenue and are capable of being reliably measured.

d. Difference between costs incurred plus recognized profit/less recognized losses and the amount of invoiced sales is disclosed as Contracts-in-progress.

C Service Revenue

Revenue from services are recognized as and when the services are performed.

D Interest and Dividend Income

a. Interest income is recognised using effective interest rate method.

b. Dividend income is recognised when the Company’s right to receive dividend is established E Export Benefits

Export benefits in the form of Duty Drawback (All Industry Rate) and DEPB are recognized on accrual basis.

F All other incomes are recognised on accrual basis.

1.10 Foreign Currency Transactions-Non monetary Items-

Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. Non-monetary items measured at fair value in a foreign currency are reported using the exchange rates at the date when the fair value is determined. The gain or loss is recognised in other comprehensive income or the statement of profit and loss is also recognised in other comprehensive income or the statement of profit and loss respectively.

1.11 Inventories :

a. Raw materials, Components, Stores and Spares are valued at lower of cost or net realizable value. The cost includes freight inward, direct expenses, duties and taxes, other than those subsequently recoverable. In case of Heavy Engineering Division, it is arrived at on “FIFO Method” and other divisions on “Weighted Average Method”.

b. Costs of Dies, Jigs, Tools and Patterns purchased/ manufactured are charged off in relevant year, at lower of cost or net realizable value, arrived at after providing for suitable diminution/ amortization.

c. Goods-in-transit are valued at costs incurred till the Balance Sheet date.

d. Work-in-progress is valued at lower of cost or net realizable value. The cost includes direct material, direct labour, and appropriate overheads booked on normal level of activity. The expenditure on uncompleted contracts is amortized over the period of the contract on the basis of sales booked.

e. Finished goods are valued at lower of cost or net realizable value. Cost includes related overheads and wherever applicable, taxes other than those which are subsequently recoverable from taxing authorities.

1.12 Government grants :

Government grants are recognised when there is reasonable assurance that the Company will comply with the conditions attached to them and the grants will be received.

Government grants whose primary condition is that the Company should purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in the financial statements and transferred to profit or loss on a systematic and rational basis over the useful life of the related assets.

Grants related to revenue are accounted for as other income in the period in which the related costs which Government intend to compensate are accounted for to the extent there is no uncertainty in receiving the same Incentives which are in the nature of subsidies given by the Government which are based on the performance of the Company are recognised in the year of performance/ eligibility in accordance with the related scheme. Government grants in the form of non-monetary assets, given at a concessional rate, are accounted for at their fair value.

1.13 Foreign currency transactions :

The functional currency of the company is Indian Rupees (INR).

Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the dates of Balance Sheet. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognized in the profit or loss.

1.14 Financial Instruments :

Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised in profit or loss.

i) Non-derivative financial instruments Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

Financial assets at amortised cost

Financial assets are subsequently measured at amortised cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value

Financial asset not measured at amortised cost is carried at fair value through profit or loss (FVTPL) on initial recognition, unless the company irrevocably elects on initial recognition to present subsequent changes in fair value in other comprehensive income for investment in equity instruments which are not held for trading.

The Company, on initial application of IND AS 109 Financial Instruments, has made an irrevocable election to present in other comprehensive income subsequent changes in fair value of equity instruments not held for trading.

Financial asset at FVTPL are measured at fair values at the end of each reporting period, with any gains or losses arising on remeasurement recognised in profit or loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest rate method or at FVTPL. Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit and loss.

For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

ii) Derecognition of financial instruments

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

The Company derecognises financial liabilities when, and only when, the Company’s obligation are discharged, cancelled or have expired.

1.15 Employee benefits :

i) Gratuity

The Company accounts for its gratuity liability, a defined retirement benefit plan covering eligible employees. The gratuity plan provides for a lump sum payment to employees at retirement, death, incapacitation or termination of the employment based on the respective employee’s salary and the tenure of the employment. Liabilities with regard to a Gratuity plan are determined based on the actuarial valuation carried out by an independent actuary as at the Balance Sheet date using the Projected Unit Credit method.

Actuarial gains and losses are recognised in full in other comprehensive income and accumulated in equity in the period in which they occur. Past service cost is recognised in profit or loss in the period of a plan amendment.

ii) Provident Fund

The eligible employees of the Company are entitled to receive the benefits of Provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary (currently at 12% of the basic salary) which are charged to the Statement of Profit and Loss on accrual basis. The provident fund contributions are paid to the Regional Provident Fund Commissioner by the Company. The Company has no further obligations for future provident fund.

iii) Superannuation and ESIC

Superannuation fund and Employees’ State insurance scheme (ESI), which are defined contribution schemes, are charged to the Statement of Profit and Loss on accrual basis.

The Company has no further obligations for future superannuation fund benefits other than its annual contributions.

iv) Compensated advances

The Company provides for the compensated absences subject to Company’s certain rules. The employees are entitled to accumulate leave subject to certain limits, for future encashment or availment. The liability is provided based on the number of days of unavailed leave at each Balance Sheet date on the basis of an independent actuarial valuation using the Projected Unit Credit method.

The liability which is not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised based on actuarial valuation as at the Balance Sheet date.

Actuarial gains and losses are recognised in full in the Statement of Profit and Loss in the period in which they occur.

The company also offers a short term benefit in the form of encashment of unavailed accumulated compensated absence above certain limit for all of its employees and same is being provided for in the books at actual cost.

v) Other short term employee benefits

Other short-term employee benefits such as overseas social security contributions and performance incentives expected to be paid in exchange for the services rendered by employees, are recognised in the statement of profit and loss during the period when the employee renders the service.

1.16 Borrowing costs :

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the cost of the asset. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged to the Statement of Profit and Loss.

1.17 Taxation :

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to / recovered from the tax authorities, based on estimated tax liability computed after taking credit for allowances and exemption in accordance with the local tax laws existing in the respective countries.

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the income taxes are recognised in other comprehensive income or directly in equity, respectively.

Advance taxes and provisions for current income taxes are presented in the statement of financial position after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction and where the relevant tax paying units intends to settle the asset and liability on a net basis.

Deferred income taxes

Deferred income tax is recognised using the balance sheet approach. Deferred income tax assets and liabilities are recognised for deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount, except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction.

Deferred income tax asset are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.

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

Deferred tax assets and liabilities are measured using substantively enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be received or settled.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is probable evidence that the Company will pay normal income tax after the tax holiday period.

Deferred tax assets and liabilities are offset when it relates to income taxes levied by the same taxation authority and the relevant entity intends to settle its current tax assets and liabilities on a net basis.

The Company recognises interest levied and penalties related to income tax assessments in interest expenses.

1.18 Earnings per Share :

Basic earnings/ (loss) per share are calculated by dividing the net profit / (loss) for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period are adjusted for any bonus shares issued during the period and also after the Balance Sheet date but before the date the financial statements are approved by the Board of Directors.

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

The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate. The dilutive potential equity shares are adjusted for the proceeds receivable, had the shares been issued at fair value. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date.

1.19 Provision, Contingent Liabilities and Contingent Assets :

A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance costs. Contingent liabilities and Contingent assets are not recognized in the financial statements.

1.20 Segment Accounting :

The Chief Operational Decision Maker identifies and monitors the operating results of its business segments separately for purpose of making decision about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. The Operating segments have been identified on the basis of the nature of products/services.

1.21 Assets Held For Sale :

Non-current assets held for sale are measured at the lower of their carrying value and fair value of the assets less costs to sale. Assets and liabilities classified as held for sale are presented separately in the balance sheet. Property, plant and equipment once classified as held for sale are not depreciated/ amortised.

1.22 New Accounting Standards, Amendments to Existing Standards, Annual Improvements and Interpretations Effective Subsequent to March 31, 2018 :

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018. The Company is in process of evaluating the impact on the financial statements.

Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The standard permits two possible methods of transition:Rs. Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors - Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018. The Company will adopt the standard on April 1, 2018 by using the cumulative catch-up transition method and accordingly comparaatives for the year ending or ended March 31, 2018 will not be retrospectively adjusted. The Company is in process of evaluating the impact on the financial statements.

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Mar 31, 2017

1 SIGNIFICANT ACCOUNTING POLICIES

1.1 METHOD OF ACCOUNTING

The Company maintains its accounts under the historical cost convention, except for certain fixed assets which are revalued, on an accrual basis and complies in all material respects with Generally Accepted Accounting Principles in India. The Company has prepared these financial statements to comply in all material respects with Accounting Standards notified under the Companies (Accounting Standards) Rules, read with rule 7 to the Companies (Accounts) Rules, 2014 in respect of Section 133 to the Companies Act, 2013.

1.2 USE OF ESTIMATES

The presentation of the financial statements, in conformity with the Generally Accepted Accounting Principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of the financial statements. The actual outcome may diverge from these estimates.

1.3 REVENUE RECOGNITION A -Product Sales

(a) Domestic sales of manufactured items are recognized on dispatch and are stated net of returns, discounts and rebates. Sales are recorded exclusive of sales tax.

(b) Export sales are recognized on date of bill of lading/ airway bill and/or passing of rights to the customer, whichever is earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction.

(c) Income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and receipt of suppliers''/sub-contractors'' invoices.

(d) Income on account of price variation is recognized on the acceptance of the claim by the client and on certainty of its realization.

B - Contract Revenue

(a) In case of certain long term contracts, revenue is recognized on ''Percentage of Completion Method.'' Percentage of completion is determined as a proportion of costs incurred to date to the total estimated contract costs. Contract costs include costs that relate directly to the specific contract and costs that are attributable to contract activity and allocable to the contract. Costs that cannot be attributed or allocable to contract activity are expensed as and when incurred.

(b) When the final outcome of a contract cannot be reliably estimated, contract revenue is recognized only to the extent of costs incurred that are expected to be recovered. Expected loss is recognized immediately when it is probable that the total estimated contract costs will exceed total contract revenue.

(c) Variations and claims for escalation are recognized as a part of contract revenue to the extent it is probable that they will result in revenue and are capable of being reliably measured.

(d) Difference between costs incurred plus recognized profit/less recognized losses and the amount of invoiced sales is disclosed as Contracts-in-progress.

C - Service Revenue

Revenue from services are recognized as and when the services are performed.

D - Interest and Dividend Income

(a) Interest Income on deployment of surplus funds is recognized using the time proportion method, based on the underlying interest rates.

(b) Dividend is accrued in the year in which it is declared whereby the right to receive is established.

E - Export Benefits

Export benefits in the form of Duty Drawback (All Industry Rate) and DEPB are recognized on accrual basis.

1.4 TANGIBLE FIXED ASSETS

Fixed Assets are stated at cost, net of tax/duty credits availed less depreciation/amortization to date and impairment, if any, except in the case of certain items of land, buildings, plant and machinery and roads, water works and drainage, which are stated on the basis of revalued cost less depreciation/ amortization to date and impairment, if any.

1.5 INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

1.6 DEPRECIATION/AMORTIZATION

(a) Depreciation is computed on Straight Line Method on certain Buildings and Plant and Machinery, of Heavy Engineering Division and Foundry Division and all the fixed assets of Instrumentation Division, in the manner prescribed in Schedule II to the Companies Act, 2013 based on useful life of the asset.

Depreciation on the value written-up on revaluation, is calculated on straight line method over the residual technical life assessed by the valuer. Premium on leasehold land is amortized over the period of lease.

Depreciation on all other fixed assets is computed on Written Down Value method in the manner prescribed in Schedule II to the Companies Act, 2013 based on useful life of the asset.

In respect of sites, which are integral foreign operations, depreciation is provided in the manner prescribed by local laws so as to write off the assets over their useful life.

(b) Intangible assets are amortized on a Straight Line Method over the estimated useful economic life and in particular:

i) Patents are amortized on the basis of life of Patents as specified in the Patent Documents;

ii) Technical Know-how is amortized over a period of six years; and

iii) Computer Software, included in intangible assets, is amortized over a period of three years.

(c) Depreciation on additions to/ deletions from the fixed assets during the year is calculated on pro-rata basis from/ to the date of addition/ deletion.

1.7 CAPITAL WORK-IN-PROGRESS (INCLUDING INTANGIBLE ASSETS UNDER DEVELOPMENT)

Projects under commissioning and other Capital Work-in-Progress (Including Intangible Assets under Development) are carried at cost, comprising direct costs and related incidental expenses.

1.8 IMPAIRMENT OF ASSETS

Impairment is ascertained at each balance sheet date in respect of Cash Generating Units. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discounting factor.

1.9 INVESTMENTS

Investments of long term nature are stated at cost less provision for diminution in value, if such decline is other than temporary. Current investments are stated at lower of cost or fair value.

1.10 EMPLOYEE BENEFITS

(a) Short term employee benefits are those which are payable within twelve months of rendering service and are recognized as expense in the period in which the employee renders the related service.

(b) Contributions to Provident Fund and Superannuation Fund, ESIC and Labour Welfare Fund which are defined contribution schemes are recognized as an expense in the Statement of Profit and Loss in the period in which the contribution is due.

(c) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation using the projected unit credit method at the end of each financial year. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

(d) Long term compensated absences including leave encashment are provided for on the basis of actuarial valuation. Accumulated leave, which is expected to be utilized within next twelve months, is treated as short term employee benefits. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

1.11 TAXES ON INCOME

Tax expenses comprise of current and deferred tax.

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted.

Deferred tax is recognized on timing differences between the accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods and is quantified using the tax rates and tax laws enacted or substantively enacted as on the Balance Sheet date. Where there is an unabsorbed depreciation or carried forward of losses under tax laws, deferred tax assets are recognized to the extent that there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized. In other cases deferred tax assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12 BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as part of such asset till the time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.

1.13 INVENTORIES

Inventories are valued after providing for obsolescence, if any, as under:

a) Raw materials, Components, Stores and Spares are valued at lower of cost or net realizable value. The cost includes freight inward, direct expenses, duties and taxes, other than those subsequently recoverable. In case of Heavy Engineering Division, it is arrived at on "FIFO Method" and other divisions on "Weighted Average Method"

b) Costs of Dies, Jigs, Tools and Patterns purchased/ manufactured are charged off in relevant year, at lower of cost or net realizable value, arrived at after providing for suitable diminution/ amortization.

c) Goods-in-transit are valued at costs incurred till the Balance Sheet date.

d) Work-in-progress is valued at lower of cost or net realizable value. The cost includes direct material, direct labour, and appropriate overheads booked on normal level of activity. The expenditure on uncompleted contracts is amortized over the period of the contract on the basis of sales booked.

e) Finished goods are valued at lower of cost or net realizable value. Cost includes related overheads and wherever applicable, excise duty.

1.14 LIQUIDATED DAMAGES

As per the accounting policy adopted by the company, liquidated damages imposed by the customers and are outstanding for more than two years as at the reporting date are fully provided for net of reversals on account of subsequent waivers/ recovery.

1.15 FOREIGN CURRENCY TRANSLATION

a) Initial recognition

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

b) Conversion

Foreign currency monetary items are re-instated using the exchange rate prevailing at the reporting date. Non-monetary items which are measured in terms of historical costs denominated in a foreign currency are reported using the exchange rate at the date of transaction. Non-monetary items which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

The financial statements of overseas sites of the company which are integral foreign operations are translated as if the transactions of the foreign operations have been those of the company itself.

c) Exchange differences

Exchange differences are recognized as income or as expense in the period to which they relate. Premium or discount on forward exchange contracts for hedging an underlying asset/ liability, is recognized in the Statement of Profit and Loss over the period of the contract.

1.16 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if:

(a) the Company has a present obligation as a result of past event;

(b) a probable outflow of resources is expected to settle the obligation; and

(c) the amount of the obligation can be reliably estimated.

Contingent Assets are neither recognized nor disclosed. Contingent Liabilities are not recognized, but are disclosed in Notes to Accounts. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

1.17 LEASES

Assets acquired under leases where the significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals are charged to the Statement of Profit and Loss on accrual basis.

1.18 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenues, expenses, assets and liabilities which relate to the company as a whole and are not allocable to segments on reasonable basis have been included under unallocated revenues/expenses/assets/liabilities.

Information given, is in accordance with the requirements of Accounting Standard 17 on Segment Reporting, notified under the Companies (Accounting Standards) Rules, read with rule 7 to the Companies (Accounts) Rules, 2014 in respect of Section 133 to the Companies Act, 2013. The Company has identified business segments as the primary segment and geographical segment as secondary segment. Segments have been identified after taking into account the nature of the products, differential risk and returns, organizational structure and internal reporting system.

The Company''s Primary business segments are organized on product lines as follows:

(i) Heavy Engineering (also known as Industrial Machinery Division) - engaged in engineering, fabrication and manufacturing of Machinery for Sugar Plants, Cement Plants, Boilers and Power Plants, Industrial and Marine Gears, Mineral Processing and EPC, Petro-chemicals and Space, Defense and Nuclear Power Business;

(ii) Foundry and Machine Shop-Manufacturing of Grey and Ductile Iron Castings required by various industries and machining of components; and

(iii) Others-Non Reportable Segment includes units manufacturing Precision Instruments such as pressure and temperature gauges.

1.19 EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earnings Per Share notified under the Companies (Accounting Standards) Rules, read with rule 7 to the Companies (Accounts) Rules, 2014 in respect of Section 133 to the Companies Act, 2013. Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period attributable to equity share holders and weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Sep 30, 2014

1.1 METHOD OF ACCOUNTING

The Company maintains its accounts under the historical cost convention, except for certain fixed assets which are revalued, on an accrual basis and complies in all material respects with Generally Accepted Accounting Principles in India. The Company has prepared these financial statements to comply in all material respects with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and relevant provisions of the Companies Act, 1956.

1.2 USE OF ESTIMATES

The presentation of the financial statements, in conformity with the Generally Accepted Accounting Principles, requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of the financial statements. The actual outcome may diverge from these estimates.

1.3 REVENUE RECOGNITION A - Product Sales

(a) Domestic sales of manufactured items are recognized on dispatch and are stated net of returns, discounts and rebates. Sales are recorded exclusive of sales tax.

(b) Export sales are recognized on date of bill of lading/ airway bill and/ or passing of rights to the customer, whichever is earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction;

(c) Income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and receipt of suppliers''/sub-contractors'' invoices;

(d) Income on account of price variation is recognized on the acceptance of the claim by the client and on certainty of its realization.

B - Contract Revenue

(a) In case of certain long term contracts, revenue is recognized on ''Percentage of Completion Method.'' Percentage of completion is determined as a proportion of costs incurred to date to the total estimated contract costs. Contract costs include costs that relate directly to the specific contract and costs that are attributable to contract activity and allocable to the contract. Costs that cannot be attributed or allocable to contract activity are expensed as and when incurred.

(b) When the final outcome of a contract cannot be reliably estimated, contract revenue is recognized only to the extent of costs incurred that are expected to be recoverable. Expected loss is recognized immediately when it is probable that the total estimated contract costs will exceed total contract revenue.

(c) Variations and claims for escalation are recognized as a part of contract revenue to the extent it is probable that they will result in revenue and are capable of being reliably measured.

(d) Difference between costs incurred plus recognized profit/less recognized losses and the amount of invoiced sales is disclosed as Contracts-in-progress.

C - Service Revenue

Revenue from services are recognized as and when the services are performed.

D - Interest and Dividend Income

(a) Interest Income on deployment of surplus funds is recognized using the time proportion method, based on the underlying interest rates.

(b) Dividend is accrued in the year in which it is declared whereby the right to receive is established.

E - Export Benefits

Export benefits in the form of Duty Drawback (All Industry Rate) and DEPB are recognized on accrual basis.

1.4 TANGIBLE FIXED ASSETS

Fixed Assets are stated at cost, net of tax/duty credits availed less depreciation/amortization to date and impairment, if any, except in the case of certain items of land, buildings, plant and machinery and roads, water works and drainage, which are stated on the basis of the revalued cost less depreciation/ amortization to date and impairment, if any.

1.5 INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

1.6 DEPRECIATION/AMORTIZATION

(a) Depreciation is computed on Straight Line Method on certain Buildings and Plant and Machinery, of Heavy Engineering Division and Foundry Division and all the fixed assets of Instrumentation Division, in the manner prescribed in Schedule xIV to the Companies Act, 1956.

Depreciation on the value written-up on revaluation, is calculated on straight line method over the residual technical life assessed by the valuer. Premium on leasehold land is amortized over the period of lease. Depreciation on all other fixed assets is computed on Written Down Value method in the manner prescribed in Schedule xIV to the Companies Act, 1956.

In respect of sites, which are integral foreign operations, depreciation is provided in the manner prescribed by local laws so as to write off the assets over their useful life.

(b) Intangible assets are amortized on a Straight Line Method over the estimated useful economic life and in particular:

i) Patents are amortized on the basis of life of Patents as specified in the Patent Documents;

ii) Technical Know-how is amortized in over a period of six years; and

iii) Computer Software, included in intangible assets, is amortized over a period of three years.

(c) Depreciation on additions to/ deletions from the fixed assets during the year is calculated on pro-rata basis from/ to the date of addition/ deletion.

1.7 CAPITAL WORK-IN-PROGRESS (INCLUDING INTANGIBLE ASSETS UNDER DEVELOPMENT)

Projects under commissioning and other Capital Work-in-Progress (Including Intangible Assets under Development) are carried at cost, comprising direct costs and related incidental expenses.

1.8 IMPAIRMENT OF ASSETS

Impairment is ascertained at each balance sheet date in respect of Cash Generating Units. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discounting factor.

1.9 INVESTMENTS

Investments of long term nature are stated at cost less provision for diminution in value, if such decline is other than temporary. Current investments are stated at lower of cost or fair value.

1.10 EMPLOYEE BENEFITS

(a) Short term employee benefits are those which are payable within twelve months of rendering service and are recognized as expense in the period in which the employee renders the related service. (b) Contributions to Provident Fund and Superannuation Fund, ESIC and Labour Welfare Fund which are defined contribution schemes are recognized as an expense in the Statement of Profit and Loss in the period in which the contribution is due.

(c) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation using the projected unit credit method at the end of each financial year. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

(d) Long term compensated absences including leave encashment are provided for on the basis of actuarial valuation. Accumulated leave, which is expected to be utilized within next twelve months, is treated as short term employee benefits. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

1.11 taxes ON INCOME

Tax expenses comprise of current and deferred tax.

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. The tax rates and tax laws used to compute the amounts are those that are enacted or substantively enacted.

Deferred tax is recognized on timing differences between the accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods and is quantified using the tax rates and tax laws enacted or substantively enacted as on the Balance Sheet date. Deferred tax assets (representing unabsorbed depreciation or carried forward losses) are recognized to the extent that there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12 BORROWING COSTS

Borrowing costs attributable to the acquisition, construction or production of qualifying assets are capitalized as part of such asset till the time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.

1.13 INVENTORIES

Inventories are valued after providing for obsolescence, if any, as under:

(a) Raw materials, Components, Stores and Spares are valued at lower of cost or net realizable value. The cost includes freight inward, direct expenses, duties and taxes, other than those subsequently recoverable. In case of Heavy Engineering Division, it is arrived at on "FIFO Method" and other divisions on "Weighted Average Method".

(b) Costs of Dies, Jigs, Tools and Patterns purchased/ manufactured are charged off in relevant year, at lower of cost or net realizable value, arrived at after providing for suitable diminution/ amortization.

(c) Goods-in-transit are valued at costs incurred till the Balance Sheet date.

(d) Work-in-progress is valued at lower of cost or net realizable value. The cost includes direct material, direct labour, and appropriate overheads booked on normal level of activity. The expenditure on uncompleted contracts is amortized over the period of the contract on the basis of sales booked.

(e) Finished goods are valued at lower of cost or net realizable value. Cost includes related overheads and wherever applicable, excise duty.

1.14 FOREIGN CURRENCY TRANSLATION

(a) Initial recognition

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

(b) Conversion

Foreign currency monetary items are re-instated using the exchange rate prevailing at the reporting date. Non-monetary items which are measured in terms of historical costs denominated in a foreign currency are reported using the exchange rate at the date of transaction. Non-monetary items which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

The financial statements of overseas sites of the company which are integral foreign operations are translated as if the transactions of the foreign operations have been those of the company itself.

(c) Exchange differences

The Company has opted to avail the option provided under Paragraph 46A of Accounting Standard 11 - The Effects of Changes in Foreign Exchange Rates, inserted vide Notification dated December 29, 2011. Accordingly, exchange differences on long term foreign currency monetary items are being dealt with in the following manner:

Foreign exchange difference on account of a depreciable asset is adjusted in the cost of the depreciable asset, which would be depreciated over the balance life of the asset. In other cases, the foreign exchange difference is accumulated in Foreign Currency Monetary Item Translation Difference Account and amortized over the balance period of such long term asset/ liability.

All other exchange differences are recognized as income or as expense in the period to which they relate.

(d) Premium or discount on forward exchange contracts for hedging an underlying asset/ liability, is recognized in the Statement of Profit and Loss over the period of the contract.

1.15 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized for liabilities that can be measured by using a substantial degree of estimation, if:

(a) the Company has a present obligation as a result of past event;

(b) a probable outflow of resources is expected to settle the obligation; and

(c) the amount of the obligation can be reliably estimated

Contingent Assets are neither recognized nor disclosed. Contingent Liabilities are not recognized, but are disclosed in Notes to Accounts. Provisions, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

1.16 LEASES

Assets acquired under leases where the significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals are charged to the Statement of Profit and Loss on accrual basis.

1.17 SEGMENT REPORTING

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue expenses, assets and liabilities which relate to the company as a whole and are not allocable to segments on reasonable basis have been included under unallocated revenue/expenses/assets/liabilities.

Information given, is in accordance with the requirements of Accounting Standard 17 on Segment Reporting, notified under the Companies (Accounting Standards) Rules, 2006 (as amended). The Company has identified business segments as the primary segment and geographical segment as secondary segment. Segments have been identified after taking into account the nature of the products, differential risk and returns, organizational structure and internal reporting system.

The Company''s Primary business segments are organized on product lines as follows:

(i) Heavy Engineering (also known as Industrial Machinery Division) - engaged in engineering, fabrication and manufacturing of Machinery for Sugar Plants, Cement Plants, Boilers and Power Plants, Industrial and Marine Gears, Mineral Processing and EPC, Petro-chemicals and Space, Defense and Nuclear Power Business;

(ii) Foundry and Machine Shop - Manufacturing of Grey and Ductile Iron Castings required by various industries and machining of components; and

(iii) Others - Non Reportable Segment includes units manufacturing Precision Instruments such as pressure and temperature gauges.

1.18 EARNINGS PER SHARE

The company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earnings Per Share notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period attributable to equity share holders and weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

(b) TERMS AND RIGHTS ATTACHED TO EQUITY SHARES:

The Company has only one class of equity shares having par value of Rs. 2 per share. Each shareholder of equity share is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

4 (ii) Corporate Loan of Rs. 7500 Lakhs (Rs. 4000 Lakhs from State Bank of India and Rs. 3500 Lakhs from Bank of India) at an interest rate of 12.50 % is secured by:

(a) First pari passu charge on specified demarcated fixed assets of the company''s Heavy Engineering Division.

(b) Mortgage of two specified immovable properties at Pune city.

(c) 2nd pari passu charge on current assets of the Company.

Foot Note- The non current trade receivables considered good of Rs. 1154.07 Lakhs includes Rs. 921.27 Lakhs ( Previous year Rs. 921.27 Lakhs) from parties against whom the company has initiated legal/ arbitration proceedings.

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Sep 30, 2013

1.1 METHOD OF ACCOUNTING

The Company maintains its accounts under the historical cost convention, except for certain fixed assets which are revalued, on an accrual basis and complies in all material respects with generally accepted accounting principles in India. the Company has prepared these financial statements to comply in all material respects with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and relevant provisions of the Companies Act, 1956.

1.2 use of estimates

The presentation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management''s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

1.3 revenue recognition

income is recognized on accrual basis, except where mentioned otherwise, in particular:

(a) Domestic sales of manufactured items are recognized on dispatch and are stated net of returns;

(b) Export sales are recognized on date of bill of lading/airway bill and/or passing of rights to the customer whichever is earlier and initially recorded at the relevant exchange rates prevailing on the date of transaction;

(c) income on items delivered directly by suppliers/sub-contractors to the client is recognized on dispatch and receipt of suppliers''/ sub-contractors'' invoices;

(d) income from project site activities is recognized on acceptance by the client on the basis of the work performed;

(e) income on account of price variation is recognized on acceptance of the claim by the client and on certainty of its realization;

(f) Revenue from long term projects of Special Products division involving dispatch, commissioning and erection is recognized on the basis of milestone specified in the contracts after matching costs and revenue at each stage; and

(g) dividend is accrued in the year in which it is declared whereby the right to receive is established.

1.4 tangible fixed ASSETS

Fixed Assets are stated at cost, net of tax/duty credits availed less depreciation/amortization to date and impairment, if any, except in the case of certain items of land, buildings, plant and machinery and roads, water works, drainage, which are stated on the basis of the revalued cost less depreciation/amortization to date and impairment, if any.

1.5 intangible ASSETS

intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization and accumulated impairment losses, if any.

1.6 depreciation/amortization

(a) The depreciation is computed on the Straight-Line Method on certain Buildings and Plant & Machinery, of heavy Engineering Division and Foundry Division and all the fixed assets of Tiwac Division in the manner prescribed in Schedule XIV to the Companies Act, 1956.

The Depreciation on the value written up on revaluation is calculated on straight line method over the residual technical life assessed by the value.

Premium on leasehold land is amortized over the period of lease.

The depreciation on all other fixed assets is computed on the Written Down Value method in the manner prescribed in Schedule xiV to the Companies Act, 1956.

in respect of branches, which are an integral part of foreign operations, depreciation is provided in the manner prescribed by local laws so as to write off the assets over their useful life.

(b) intangible assets are amortized on a Straight Line basis over the estimated useful economic life and in case of:

(i) Patents are amortized on the basis of life of Patents as specified in the Patent Documents;

(ii) Technical Know-how is amortized on Straight Line Basis in six equal installments; and

(iii) Computer Software, included in intangible assets, is amortized over a period of three years.

(c) Depreciation on additions to/deletions from the fixed assets during the year is calculated on pro-rata basis from the date of addition/deletion.

1.7 Capital Work-in Progress (including intangible Assets under Development)

Projects under commissioning and other Capital Work-in-Progress (including intangible Assets under Development) are carried at cost, comprising direct cost and related incidental expenses.

1.8 impairment of ASSETS

impairment is ascertained at each balance sheet date in respect of Cash Generating units. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. in assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

1.9 investments

investments of long term nature are stated at cost less provision for diminution in value, if such decline is other than temporary. Current investments are stated at lower of cost or net realizable value.

1.10 employee benefits

(a) Short term employee benefits are those which are payable within twelve months of rendering service and are recognized as expense in the period in which the employee renders the related service.

(b) Contributions to the Provident Fund and Superannuation Fund, ESiC and Labour Welfare Fund which are defined contribution schemes are recognized as an expense in the Statement of Profit and Loss in the period in which the contribution is due.

(c) Gratuity liability is a defined benefit obligation and is provided for on the basis of actuarial valuation using the projected unit credit method at the end of each financial year. Actuarial gains and losses are recognized immediately in the Statement of Profit and Loss.

(d) Long term compensated absences including leave encashment are provided for on the basis of actuarial valuation. Accumulated leave, which is expected to be utilized within next twelve months, is treated as short term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

1.11 taxes on income

Tax expenses comprise current and deferred tax.

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the income Tax Act, 1961. The tax rates and tax laws used to compute amount are those that are enacted or substantively enacted.

Deferred tax is recognized on timing differences between the accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods and is quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets (representing unabsorbed depreciation or carried forward losses) are recognized to the extent that there is a virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12 borrowing costs

Borrowing costs attributable to acquisition, construction or production of qualifying assets are capitalized as part of such asset till the time the asset is ready for its intended use or sale. All other borrowing costs are recognized as an expense in the Statement of Profit and Loss in the period in which they are incurred.

1.13 inventories

inventories are valued after providing for obsolescence, if any, as under: -

(a) Raw materials, Components, Stores and Spares at lower of cost or net realizable value. The cost includes freight inward, direct expenses, duties and taxes other than those subsequently recoverable. in case of heavy Engineering Division, it is arrived at on "FiFo Method" and other divisions on "Weighted Average Method".

(b) Costs of Dies, Jigs, Tools, Mould Boxes and Patterns purchased/manufactured are charged off in relevant year at lower of cost or net realizable value, arrived at after providing for suitable diminution/amortization.

(c) Goods in transit at cost incurred till balance sheet date.

(d) Work in Progress at lower of cost or net realizable value. The cost includes direct material, direct labour, and appropriate overheads booked on normal level of activity. The expenditure on uncompleted contracts is amortized over the period of contract on the basis of sales booked.

(e) Finished Goods at lower of cost or net realizable value. Cost includes related overheads and wherever applicable excise duty.

1.14 Foreign CURRENCY Translation

(a) initial recognition

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

(b) Conversion

Foreign currency monetary items are re-instated using the exchange rate prevailing at the reporting date. Non monetary items which are measured in terms of historical costs denominated in a foreign currency are reported using the exchange rate at the date of transaction. Non monetary items which are measured at fair value or other similar valuation denominated in a foreign currency, are translated using the exchange rate at the date when such value was determined.

The financial statements of foreign branches of the company which are integral to the operations are translated as if the transactions of the foreign operations have been those of the company itself.

(c) Exchange differences

The Company has opted to avail the choice provided under Paragraph 46A of AS-11; The Effects of Changes in Foreign Exchange Rates, inserted vide Notification dated December 29, 2011. Accordingly, exchange differences on long term foreign currency monetary items are being dealt with in the following manner:

Foreign exchange difference on account of a depreciable asset is adjusted in the cost of the depreciable asset, which would be depreciated over the balance life of the asset;

I n other cases, the foreign exchange difference is accumulated in a Foreign Currency Monetary item Translation Difference Account and amortized over the balance period of such long term asset/liability.

All other exchange differences are recognized as income or as expense in the period to which they relate.

(d) Premium or discount on forward exchange contracts is recognized in the Statement of Profit and Loss over the period of contract.

1.15 provisions, contingent liabilities and contingent ASSETS

Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if:

(a) the Company has a present obligation as a result of past event;

(b) a probable outflow of resources is expected to settle the obligation; and

(c) the amount of the obligation can be reliably estimated Contingent Assets are neither recognized nor disclosed.

Contingent Liabilities are not recognized, but are disclosed in Notes to Accounts.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

1.16 LEASES

Assets acquired under leases where the significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals are charged to the Statement of Profit and Loss on accrual basis.

1.17 SEGMENT Reporting (Refer Note 34)

The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue expenses, assets and liabilities which relate to the company as a whole and are not allocable to segments on reasonable basis have been included under unallocated revenue/expenses/assets/liabilities. information given is in accordance with the requirements of Accounting Standard 17 on Segment Reporting issued by the institute of Chartered Accountants of India.

The Company has identified business segments as the primary and geographic segment as secondary segment. Segment have been identified after taking into account the nature of the products, differential risk and returns, the organizational structure and internal reporting system.

The Company''s Primary business segments are organized on product lines as follows:

(i) Heavy Engineering (also known as industrial Machinery Division) - engaged in engineering, fabrication and manufacturing of Machinery for Sugar Plants, Cement Plants, Boilers & Power Plants, industrial & Marine Gears, Mineral Processing & EPC, Petro Chemicals and Space, Defense and Nuclear Power Business;

(ii) Foundry & Machine Shop - Manufacturing of Grey & Ductile iron Castings required by various industries and machining of components; and

(iii) others - Non Reportable Segment, includes units manufacturing Precision instruments such as pressure and temperature gauges.

1.18 earnings PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20, "Earning Per Share" notified under the Companies (Accounting Standards) Rules, 2006. Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating Diluted Earnings per share, the net profit or loss for the period attributable to equity share holders and weighted average number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

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Sep 30, 2010

1. Method of Accounting:

The Company maintains its accounts under the historical cost convention on an accrual basis and complies in all material respects with generally accepted accounting principles in India and relevant provisions of Companies Act, 1956.

2. Use of Estimates:

The presentation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

3. Revenue Recognition:

Income is recognised on accrual basis, except where mentioned otherwise, in particular:

(i) Domestic sales of manufactured items are recognised on despatch and are stated net of returns.

(ii) Export sales are recognised on date of bill of lading/airway bill.

(iii) Income on items delivered directly by suppliers/sub-contractors to the client is recognised on despatch and receipt of suppliers/sub-contractors invoices.

(iv) Income from project site activities is recognised on acceptances by the client on the basis of the work performed.

(v) Income on account of price variation is recognised on acceptance of the claim by the client and on certainty of its realization.

(vi) Revenue from long term projects of Special Products Division involving despatch, commissioning and erection is recognized on the basis of milestone specified in the contracts.

4. Fixed Assets:

Fixed Assets are stated at cost, net of tax/duty credits availed less depreciation to date and impairment, if any, except in the case of certain items of land, buildings, plant and machinery and roads, water works, drainage, which are stated on the basis of the revalued cost.

5. Depreciation/Amortisation:

(i) The depreciation is computed on the Straight-Line Method on certain Buildings, Plant & Machinery and Furniture and Fixtures of Heavy Engineering Division and of Foundry Division and all the fixed assets of Tiwac Division in the manner prescribed in Schedule XIV to the Companies Act,1956.

The depreciation on all other fixed assets is computed on the Written Down Value method in the manner prescribed in Schedule XIV to the Companies Act, 1956.

In respect of Branch, which is an integral part of foreign operations, depreciation is provided in the manner prescribed in Schedule XIV of Companies Act, 1956.

(ii) Depreciation on Patents is provided on the basis of life of Patents as specified in the Patent Documents.

(iii) Technical know-how is depreciated on Straight Line Basis in six equal installments.

(iv) Computer software included in intangible assets is amortized over a period of three years.

(v) Depreciation on additions to/deletions from the fixed assets during the year is calculated on pro-rata basis from the date of addition/deletion.

6. Capital Work-in-Progress:

Projects under commissioning and other Capital Work-in-Progress are carried at cost, comprising direct cost and related incidental expenses.

7. Impairment of Assets:

Impairment is ascertained at each balance sheet date in respect of Cash Generating Units. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

8. Investments:

Investments of long term nature are stated at cost less permanent diminution in value, if any. Current Investments are stated at lower of cost or fair value.

9. Employee Benefits:

(i) Short term employee benefits are those which are payable within twelve months of rendering service and are recognized as expense at the period in which the employee renders the related service.

(ii) Contributions to the Provident Fund and Superannuation Fund which are defined contribution schemes are recognized as an expense in the Profit and Loss Account in the period in which the contribution is due.

(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of its actuarial valuation using the projected unit credit method at the end of each financial year. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

(iv) Long term compensated absences including leave encashment are provided for on the basis of actuarial valuation.

10. Taxes on Income:

Tax expenses comprise current and deferred tax.

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences between the accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods and is quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

11. Borrowing Costs:

Borrowing costs attributable to acquisition, construction or production of qualifying assets are capitalized as part of such asset till the time the asset is ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

12. Inventories:

Inventories are valued after providing for obsolescence, if any, as under: -

(a) Raw materials, Components, Stores and Spares at lower of cost or net realizable value. The cost includes freight inward, direct expenses, duties and taxes other than those subsequently recoverable. In case of Heavy Engineering Division, it is arrived at on "FIFO Method" and for others on "Weighted Average Method".

(b) Dies, Jigs, Tools, Mould Boxes and patterns at lower of cost or net realizable value arrived at after providing for suitable diminution.

(c) Goods in transit at cost incurred till date.

(d) Work in Progress at lower of cost or net realizable value. The cost includes direct material, direct labour, and appropriate overheads booked on normal level of activity. The expenditure on uncompleted contracts is amortised over the period of contract on the basis of sales booked.

(e) Finished Goods at lower of cost or net realisable value. Cost includes related overheads and wherever applicable excise duty.

13. Foreign Currency Transactions:

Foreign Currency Transactions are accounted at the rates prevailing on the date of transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss account.

All foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing at the date of balance sheet and resultant exchange differences are recognized in the profit and loss account for the year.

In respect of branches, which are integral foreign operations, all transactions are translated at the rates prevailing on the date of transaction. Branch monetary Assets and Liabilities are restated at the year end rates, except for fixed assets and depreciation thereon which are restated at historical cost.

Premium or discount on forward exchange contracts is recognized in the profit and loss account over the period of contract.

14. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if:

(a) the Company has a present obligation as a result of past event;

(b) a probable outflow of resources is expected to settle the obligation, and

(c) the amount of the obligation can be reliably estimated. Contingent Assets are neither recognised, nor disclosed.

Contingent Liabilities are not recognised, but are disclosed in Notes to Accounts.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

15. Research & Development Expenditure:

Expenditure on research phase is recognized as expense when it is incurred Expenditure on development phase which results in creation of assets is included in fixed assets.

16. Leases:

Assets acquired under leases where the significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals are charged to the profit & loss account on accrual basis.

Assets leased out under operating lease are capitalized. Rental Income is recognised on accrual basis over the lease term.

17. Segment accounting policy: (Refer C).

B. RELATED PARTY DISCLOSURES:

Related party disclosures as required under Accounting Standard 18 issued by the ICAI are given below:

(a) Relationship:

(i) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual.

Mr. Chakor L. Doshi : Chairman

: Wife : Mrs. Champa C. Doshi

: Son : Mr. Chirag C. Doshi

: Daughter : Mrs. Kanika G. Sanger

: Daughter-in-Law : Mrs. Tanaz Chirag Doshi (ii) Key Management personnel and relatives:

Mr. J. L. Deshmukh : Managing Director & CEO

: Brother : Mr. Pratap L. Deshmukh

Mr. Chirag C. Doshi : Managing Director

(iii) Enterprises over which any person described in (i) or (ii) above are able to exercise significant influence: Bombay Cycle & Motor Agency Ltd. Walchand Great Achievers Pvt. Ltd. Walchand Kamdhenu Commercials Pvt. Ltd. Walchand Chiranika Trading Pvt. Ltd. Chiranika Enterprises Chiranika Corporation Chiranika Properties Walchand Botanicals Pvt. Ltd. Rodin Holdings Inc. Olsson Holdings Inc. Vinod Shashank Chakor Pvt. Ltd. Chirag Enterprises

Bharat Capital Services Pvt. Ltd. Indpro Electronic System (India) Pvt. Ltd. Walchand Engineers Pvt. Ltd. Walchand Projects Pvt. Ltd. Walchand Power Systems Pvt. Ltd. Walchand Oil & Gas Pvt. Ltd. Walchand Leisure Realty Pvt. Ltd. Walchand BMH Pvt. Ltd.

C. SEGMENT REPORTING:

Information given in accordance with the requirements of Accounting Standard 17, on Segment Reporting issued by The Institute of Chartered Accountants of India.

The Company has identified business segments as the primary and Geographic segment as secondary segment. Segments have been identified after taking into account the nature of the products, differential risks and returns, the organizational structure and internal reporting system.

The Companys Primary business segments are organised on product lines as follows:

Heavy Engineering (also known as Industrial Machinery Division) – engaged in engineering, fabrication and manufacturing of Machinery for Sugar Plants, Cement Plants, Boilers & Power Plants, Industrial & Marine Gears, Mineral Processing & EPC, Petro Chemicals and Space, Defence and Nuclear Power Business.

Foundry & Machine Shop – Manufacturing of Grey & Ductile Iron Castings required by various Industries and machining of components.

Others – Non reportable segment, includes units manufacturing Precision Instruments such as pressure and temperature gauges and Infotech Services.

Segment Accounting Policies:

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment. Revenue expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under unallocated revenue/expenses/assets/liabilities.

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Sep 30, 2009

1. Method of Accounting:

The Company maintains its accounts under the historical cost convention on an accrual basis and complies in all material respects with generally accepted accounting principles in India and relevant provisions of Companies Act, 1956.

2. Use of Estimates:

The presentation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managements evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may diverge from these estimates.

3. Revenue Recognition:

Income is recognised on accrual basis, except where mentioned otherwise, in particular:

(i) Domestic sales of manufactured items are recognised on dispatch and are stated net of returns.

(ii) Export sales are recognised on date of bill of lading/airway bill.

(iii) Income on items delivered directly by suppliers/sub-contractors to the client is recognised on despatch and receipt of suppliers/sub-contractorsinvoices.

(iv) Income from project site activities is recognised on acceptances by the client on the basis of the work performed.

(v) Income on account of price variation is recognised on acceptance of the claim by the client and on certainty of its realization.

(vi) Revenue from long term projects of Special Products Division involving despatch, commissioning and erection is recognized on the basis of milestone specified in the contracts.

4. Fixed Assets:

Fixed Assets are stated at cost, net of tax/duty credits availed, except in the case of certain items of land, buildings, plant and machinery and roads, water works, drainage, which are stated on the basis of the revalued cost.

5. Depreciation/Amortisation:

(i) The depreciation is computed on the Straight-Line Method on certain Buildings, Plant & Machinery and Furniture and Fixtures of Heavy Engineering Division and of Foundry Division and all the fixed assets of Tiwac Division in the manner prescribed in Schedule XIV to the Companies Act,1956.

The depreciation on all other fixed assets is computed on the Written Down Value method in the manner prescribed in Schedule XIV to the Companies Act, 1956.

In respect of Branches, which are integral foreign operations, depreciation is provided to write off the cost of assets in equal annual installments over their estimated useful lives over the contract period.

(ii) Depreciation on Patents is provided on the basis of life of Patents as specified in the Patent Documents.

(iii) Technical know-how is depreciated on Straight Line Basis in six equal installments.

(iv) Computer software included in intangible assets is amortized over a period of three years.

(v) Depreciation on additions to/deletions from the fixed assets during the year is calculated on pro-rata basis from the date of addition/deletion.

6. Capital Work-in-Progress:

Projects under commissioning and other Capital Work-in-Progress are carried at cost, comprising direct cost and related incidental expenses.

7. Impairment of Assets:

Impairment is ascertained at each balance sheet date in respect of Cash Generating Units. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor.

8. Investments:

Investments of long term nature are stated at cost less permanent diminution in value, if any. Current Investments are stated at lower of cost or net realizable value.

9. Employee Benefits:

(i) Short term employee benefits are those which are payable within twelve months of rendering service and are recognized as expense in the period in which the employee renders the related service.

(ii) Contributions to the Provident Fund and Superannuation Fund which are defined contribution schemes are recognized as an expense in the Profit and Loss Account in the period in which the contribution is due.

(iii) Gratuity liability is a defined benefit obligation and is provided for on the basis of its actuarial valuation using the projected unit credit method at the end of each financial year. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.

(iv) Long term compensated absences including leave encashment are provided for on the basis of actuarial valuation.

10. Taxes on Income:

Tax expenses comprise current and deferred tax.

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences between the accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods and is quantified using the tax rates and tax laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

11. Borrowing Costs:

Borrowing costs attributable to acquisition, construction or production of qualifying assets are capitalized as part of such asset till the time the asset is ready for its intended use or sale. All other borrowing costs are recognised as an expense in the period in which they are incurred.

12. Inventories:

Inventories are valued after providing for obsolescence, if any, as under: -

(a) Raw materials, Components, Stores and Spares at lower of cost or net realizable value. The cost includes freight inward, direct expenses, duties and taxes other than those subsequently recoverable. In case of Heavy Engineering Division, it is arrived at on "FIFO Method" and for others on "Weighted Average Method".

(b) Dies, Jigs, Tools, Mould Boxes and patterns at lower of cost or net realizable value arrived at after providing for suitable diminution.

(c) Goods in transit at cost incurred till date.

(d) Work in Progress at lower of estimated cost or net realizable value. The cost includes direct material, direct labour, and appropriate overheads booked on normal level of activity. The expenditure on uncompleted contracts is amortised over the period of contract on the basis of sales booked.

(e) Finished Goods at lower of cost or net realisable value. Cost includes related overheads and excise duty.

13. Foreign Currency Transactions:

Foreign Currency Transactions are accounted at the rates prevailing on the date of transaction. Exchange differences arising on foreign currency transactions settled during the year are recognized in the profit and loss account.

All foreign currency denominated monetary assets and liabilities are translated at the exchange rate prevailing at the date of balance sheet and resultant exchange differences are recognized in the profit and loss account for the year.

In respect of branches, which are integral foreign operations, all transactions are translated at the rates prevailing on the date of transaction. Branch monetary Assets and Liabilities are restated at the year end rates, except for fixed assets and depreciation thereon which are restated at historical cost.

Premium or discount on forward exchange contracts is recognized in the profit and loss account over the period of contract.

14. Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if:

(a) the Company has a present obligation as a result of past event;

(b) a probable outflow of resources is expected to settle the obligation, and

(c) the amount of the obligation can be reliably estimated. Contingent Assets are neither recognised, nor disclosed.

Contingent Liabilities are not recognised, but are disclosed in Notes to Accounts.

Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

15. Research & Development Expenditure:

Revenue Expenditure is charged to Profit & Loss Account and Capital Expenditure is added to the cost of fixed assets in the year in which it is incurred.

16. Leases:

pAssets acquired under leases where the significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals are charged to the profit & loss account on accrual basis.

Assets leased out under operating lease are capitalized. Rental Income is recognised on accrual basis over the lease term.

17. Earnings per share:

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20, "Earnings Per Share" issued by the Institute of Chartered Accountants of India (ICAI). Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. Diluted earning per share is computed using the weighted average number of equity shares and potential dilutive equity shares outstanding at the year end.

18. Segment accounting policy: (Refer C).

B. RELATED PARTY DISCLOSURES:

Related party disclosures as required under Accounting Standard 18 issued by the ICAI are given below:

(a) Relationship:

(i) Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual.

Mr. Chakor L. Doshi : Chairman

: Wife : Mrs. Champa C. Doshi

Son : Mr. Chirag C. Doshi : Daughter: Mrs. Kanika G. Sanger : Daughter-in-Law: Mrs.Tanaz Chirag Doshi (ii) Key Management personnel and relatives:

Mr. J. L. Deshmukh : Managing Director & CEO

Brother: Mr. Pratap L. Deshmukh Mr. Chirag C. Doshi : Managing Director

(iii) Enterprises over which any person described in (i) or (ii) above are able to exercise significant influence: Bombay Cycle & Motor Agency Ltd. Walchand Great Achievers Pvt. Ltd. Walchand Kamdhenu Commercials Pvt. Ltd. Chiranika Trading Pvt. Ltd. Chiranika Enterprises Chiranika Corporation

The Companys Primary business segments are organised on product lines as follows:

Heavy Engineering (also known as Industrial Machinery Division) - engaged in engineering, fabrication and manufacturing of Machinery for Sugar Plants, Cement Plants and Boilers, Heavy Duty Gears, Mineral Processing, EPC Petro Chemicals and Space, Defence and Nuclear Power Business.

Foundry & Machine Shop-Manufacturing of CI & SGI Castings required by various Industries and machining of components.

Others-Non-reportable segment, includes units manufacturing pressure and temperature gauges and Infotech Services.

Segment Accounting Policies:

Segment accounting policies are in line with the accounting policies of the Company. In addition the following specific accounting policies have been followed for segment reporting:

(i) Segment Revenue includes Sales and other income directly identifiable with/allocable to the segment including inter segment revenue.

(ii) Expenses that are directly identifiable with/allocable to segments are considered for determining the Segment Result. Expenses, which relate to the Company as a whole and not allocable to segments, are included under "Unallocated Expenditure".

(iii) Income which relates to the Company as a whole and not allocable to segments is included in "Unallocated Income".

(iv) Segment assets and liabilities include those directly identifiable with the respective segments.

Unallocated assets and liabilities represent the assets and liabilities that relate to the Company as a whole and not allocable to any segment.

(v) Inter-Segment Transfer Pricing

Segment Revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices are agreed on a negotiated basis.

(vi) The Company has identified geographical distribution between domestic sale and exports as the Secondary Segment.

The Revenue, Assets & Liabilities, to the extent possible to be identified separately have been reported.