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 for preparation of financial statements:

The financial statements have been prepared in historical cost basis except for certain financial
instruments which are measured at fair value or amortised cost at the end which is generally
based on the fair value of consideration given in exchange for goods and services. All assets
and liabilities have been classified as current and non-current as per the Company’s normal
operating cycle. Based on the nature of services rendered to customers and time elapsed between
deployment of resources and the realisation in cashand cash equivalents of the consideration
for such services rendered, the Company has considered an operating cycle of 12 months.

2.3 Use of Estimates:

The preparation of financial statements requires the management of the company to make
estimates and assumptions 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 recognized in the period in which the estimates are revised.

2.4 Critical accounting estimates:

2.4.1 Income Taxes:

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

2.4.2Impairment of Investments:

The carrying value of investments is reviewed at cost annually, or more frequently whenever,
there is indication for impairment. If the recoverable amount is less than the carrying amount,
the impairment loss is accounted for.

2.4.3Provisions:

Provisions are 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 a reliable estimate can be made. These are reviewed at each balance
sheet date adjusted to reflect the current best estimates.

2.4.4Effective Interest Rate (EIR) Method:

The Company’s EIR methodology, recognises interest income / expense using a rate of
return that represents the best estimate of a constant rate of return over the expected
behavioral life of loans given / taken and recognises the effect of potentially different interest
rates at various stages and other characteristics of the product life cycle (including
prepayments, restructuring and penalty interest and charges). This estimation, by nature,
requires an element of judgement regarding the expected behavior and life-cycle of the
instruments and other fee income/expense that are integral parts of the instrument.

2.5 Property, Plant and Equipment (PPE)

PPE are stated at actual cost less accumulated depreciation and net of impairment. The actual
cost capitalized includes material cost, freight, installation cost, duties and taxes, eligible borrowing
costs and other incidental expenses incurred during the construction/installation stage.

The Company has chosen the cost model for recognition and this model is applied to all class of
assets. After recognition as an asset, an item of PPE is carried at its cost less any accumulated
depreciation and any accumulated impairment losses.

Depreciable amount of an asset is the cost of an asset less its estimated residual value.

Depreciation on PPE, including assets taken on lease, other than freehold land is charged based
on Written Down Value method on an estimated useful life as prescribed in Schedule II to the
Companies Act, 2013. The useful life of asset taken into consideration as per Schedule II for the
purpose of calculating depreciation is as follows: -

An item of PPE is derecognized 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 PPE are determined as a difference between the sale proceeds and the carrying
amount of the asset and is recognized in the profit and loss.

At the end of each reporting period, the Company reviews the carrying amounts of tangible and
intangible assets to determine whether there is any indication that those assets have suffered an
impairment loss.

2.6 Revenue recognition:

Revenue from contracts with customers are recognized when the control over the goods or
services promised in the contract are transferred to the customer. The amount of revenue
recognized depicts the transfer of promised goods and services to customers for an amount
that reflects the consideration to which the Company is entitled to in exchange for the goods or
services.

2.6.1 Sale of goods: -

Revenue from sale of goods is recognized when the control over such goods have been
transferred, being when the goods are delivered to the customers. Delivery occurs when
the products have been shipped or delivered to the specific location as the case may be,
risks of loss have been transferred to the customers, and either the customer has accepted
the goods in accordance with the sales contract or the acceptance provisions have lapsed
or the Company has objective evidence that all criteria for acceptance have been satisfied.
Revenue from these sales are recognized based on the price specified in the contract.

2.6.2Interest Income: -

The Company recognises interest income using Effective Interest Rate (EIR) on all financial
assets subsequently measured at amortised cost. EIR is calculated by considering all costs
and incomes attributable to acquisition of the financial assets and it represents a rate that
discounts estimated future cash flows through the expected life of the financial assets to
the gross carrying amount of a financial assets.

2.6.3Dividend: -

Dividend income from investments is recognised when the shareholders’ right to receive
payment has been established which is generally when the shareholders approve the
dividend.

2.6.4Other income : -

In respect of other heads of income in the Company’s accounts the income shall recognize
on accrual basis.

2.7 Foreign currency transactions:

Foreign currency transactions, if any are recorded as exchange rates prevailing on the date of
transaction. Foreign currency denominated monetary assets and liabilities are restated into the
functional currency using exchange rates prevailing on the date 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.

2.8 Financial Instruments:

2.8.1 Financial Assets

Recognition and initial measurement: -

Financial assets and financial liabilities are initially recognized when the Company becomes
a party to the contractual provisions of the instrument and are measured initially a fair value
adjusted for transaction cost.

Subsequent measurement: -

Financial Assets measured at Amortised Cost (AC) : Financial assets are subsequently
measured at amortized 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. Amortised cost is the cost of a
financial asset adjusted to achieve a constant effective interest rate over the life of the
financial asset.

Financial Assets measured at Fair Value Through Other Comprehensive Income (FVTOCI)
j_Financial assets are subsequently measured at fair value through other comprehensive
income if these financial assets are held within a business whose objective is achieved by
both (i) collecting contractual cash flows on specified dates that are solely payments of
principal and interest on the principal amount outstanding and (ii) selling of such financial
assets.

Financial Assets measured Fair Value Through Profit and Loss (FVTPL) : Financial assets
are subsequently measured at fair value through profit or loss unless they are measured at
amortized cost or at fair value through other comprehensive income. For financial assets
measured at fair value through profit and loss, all changes in the fair value are recognized
in profit and loss when they occur.

De- recognition of Financial Assets: -

A financial asset is primarily de-recognized when the rights to receive cash flows from the
asset have expired or Company has transferred its right to receive cash flow from the
asset.

2.8.2 Financial Liabilities

Recognition and initial measurement: -

All Financial liabilities are recognized initially at fair value and transaction cost that is
attributable to the acquisition of the financial liabilities is also adjusted. Financial liabilities
are classified as amortized cost.

Subsequent measurement: -

Subsequent to initial recognition, these liabilities are measured at Amortized cost using the
effective interest rate method.

De-recognition of Financial liabilities : -

Financial liabilities are derecognized when the obligation under the liabilities are discharged
or cancelled or expires. Consequently, write back of unsettled credit balances is done on
closure of the concerned project or earlier based on the previous experience of Management
and actual facts of each case and recognized in other Operating Revenues.

Further when an existing Financial liability is replaced by another from the same lender on
substantially different terms, or the terms of 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 recognized
in the Statement of Profit and Loss.

2.8.3 Offsetting of Financial Instrument

Financial Assets and Financial Liabilities are offset and the net amount is reported in the
Balance sheet if there is currently enforceable legal right to offset the recognized amounts
and there is an intention to settle on net basis, to realize the assets and settle the liabilities
simultaneously.

2.8.4 Impairment of Financial Assets

Equity instruments. Debt Instruments and Mutual Fund: -

In accordance with Ind -AS 109, the Company applies Expected Credit Loss model for
measurement and recognition of impairment loss for Financial Assets.

The Company recognizes loss allowances using the expected credit loss (ECL) model for
the financial assets and unbilled revenue which are not fair valued through profit or loss.
Loss allowance for trade receivables and unbilled revenues with significant financing
component is measured at an amount equal to 12-month ECL. For all other financial assets,
expected credit losses are measured at an amount equal to the lifetime 12-month ECL,
unless there has been a significant increase in credit risk from initial recognition in which
case those are measured at lifetime ECL.

The Company determines the allowance for credit losses based on historical loss experience
adjusted to reflect current and estimated future economic conditions. The Company considers
current and anticipated future economic conditions relating to industries the Company deals
with and the countries where it operates.

The amount of expected credit losses (or reversal) that is required to adjust the loss allowance
at the reporting date to the amount that is required to be recorded is recognized as an
impairment gain or loss in condensed consolidated statement of comprehensive income.

Other Financial Assets: -

The Company determines whether there has been a significant increase in the credit risk
since initial recognition and if credit risk has increased significantly, impairment loss is
provided.

2.9 Inventories

Inventories are valued at cost or net realisable value, whichever is lower. Cost is determined on
weighted average basis and includes cost of purchase and other costs incurred in bringing
inventories to their present location and condition. Net realisable value is the estimated selling
price in the ordinary course of business, less estimated costs of completion and the estimated
costs necessary to make the sale.

2.10 Cash & Cash equivalent

Cash and cash equivalents Cash and cash equivalents in the balance sheet comprise of cash at
bank and on hand and short-term deposits with an original maturity of three months or less,
which are subject to an insignificant risk of changes in value. For the purpose of the statement of
cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined
above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s
cash management.

2.11 Taxation

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount
expected to be paid/recovered from the tax authorities, based on estimated tax liability computed
after taking credit for allowances and exemption in accordance with Income Tax Act, 1961.
Current and deferred tax are recognized in profit and loss, except when they relate to items that
are recognized in other comprehensive income or directly in equity, in which case, the income
taxes are recognized 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.

Deferred income tax is recognized using the balance sheet approach. Deferred income tax
assets and liabilities are recognized for deductible and taxable temporary differences arising
between the tax base of assets and liabilities and their carrying amounts. Deferred income tax is
recognized 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 utilized. The carrying amount of deferred income tax assets is reviewed at each
reporting date. Deferred tax asset/liability is measured at the tax rates that are expected to be
applied to the period when the asset is realized or the liability is settled.

2.12 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.