Notes:

1 The fair value of the Company's investment properties as at March 31, 2018, March 31, 2017, and April 1, 2016 have been arrived at on the basis of a valuation carried out as on the respective dates by Mr. Pravin Shaha, independent valuer not related to the Company, having appropriate recognized professional qualifications and experience in the category of the property being valued.

2. Valuation technique and key inputs used to determine the fair value :

Level 3 - Fair valuation of residential premises has been done by Sales Comparison Method under Market Approach for March 2018 and March 2017. A comparison is made for the purpose of valuation with similar properties that have recently been sold in the market and thus have a transaction price. The sales comparison approach is the preferred approach when sales data are available. Comparable properties are selected for similarity to the subject property considering attributes like age, size, shape, quality of construction, building features, condition, design, gentry, etc. Finally a market value for the subject property is estimated from the adjusted sales price of the comparable properties.

Fair valuation of free hold lands is based on government rates, market research, marked trends and comparable values as considered appropriate.

3. During the year freehold lands amounting to fair value of ' 16,846.70 lakhs have been classified as investment property.

* The Company has received by way of bonus one (1) fully paid-up, secured, non-cumulative, non-convertible, redeemable, taxable debentures of face value of ' 12.50 each for every one (1) fully paid equity share of face value of ' 10.00 each of National Thermal Power Corporation Limited held as on March 23, 2015. These debentures carry interest coupon of 8.54% per annum.

** In respect of equity investments which are not held for trading, the Company has made an irrevocable election to present subsequent changes in the fair value of such instruments in Other Comprehensive Income. Such an election is made by the Company on instrument by instrument basis at the time of transition for existing equity instruments / initial recognition for new equity instruments.

Valuation technique and key inputs used to determine the fair value :

Level 1 - The fair value of the equity instruments which are not held for trading is obtained through the publicly available portal. This fair value of these instrument, represents the price at which the equity instruments are bought or sold at the Bombay Stock Exchange.

Trade receivables includes retentions Rs, 27,323.44 lakhs (March 31, 2017 Rs, 26,497.63 lakhs, April 01, 2016 Rs, 21,776.31 lakhs)

Trade receivables (current) are hypothecated as security by creating 1st pari passu charge for securing working capital demand loans (refer note no. 2.15)

In accordance with Ind AS 109, the Company has used the practical expedient by computing the expected credit loss allowance for trade receivables by following simplified approach. The expected credit loss model takes into account historical credit loss experience and adjusted for forward looking information. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognizes impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

The Company's customer profile includes government departments and large private corporate. Accordingly, the Company's customer credit risk is low. The Company's average project execution cycle is around 36 to 60 months.

General payment terms include mobilization advance, monthly progress payments and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank guarantees.

The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization.

There are no trade receivables due from any director or any officer of the Company, either severally or jointly with any other person, or from any firms or private companies in which any director is a partner, a director or a member.

a) Of the above:

(i) 2,42,23,585 (2,42,23,585) Equity Shares fully paid-up have been issued as bonus shares by capitalization of general reserves.

(ii) 8,72,320 (8,72,320) Equity Shares are held by ultimate holding company Ratanchand Investment Pvt. Ltd.

b) During the previous year 2,42,23,585 Equity Shares of Rs, 2/- each were issued and allotted (w.e.f. 14th December, 2016) as fully paid Bonus Shares by capitalization of free reserves in the proportion of one bonus share of Rs, 2/- each for every one Equity Share of Rs, 2/- held by them as on the Record Date.

d) Terms / rights attached to shares:

The Company has only one class of shares referred to as equity shares having a par value of Rs, 2/- each holder of equity shares is entitled to one vote per share.

The interim dividend proposed and paid by the Board of Directors is subject to the approval of the share holders in the ensuing Annual General Meeting.

* In respect of certain ‘Works Contracts' executed in earlier years in the State of Rajasthan, the Company had paid sales tax using Exemption Fee (Composition) Scheme under Rajasthan Sales Tax Law on such ‘Works Contracts' based on certain rules notified under the Sales Tax Act then prevailing. The Sales Tax Department had since challenged the Company's position and claimed that such ‘Works Contracts' be treated as a divisible contracts and be subjected to tax component-wise and had accordingly raised a demand, which was challenged by the Company. The Company had also filed a Special Leave Petition with the Hon'ble Supreme Court, against the common final judgment Order dated February 13, 2015 passed by the Hon'ble High Court of Rajasthan. Subsequently the Hon'ble Supreme Court rejected the appeal filed by the Company by Order dated August 28, 2017. The Company, based on legal advise, has filed an application seeking recall of the said order. Pending outcome of the ‘recall application', on a prudent basis, the Company has made a provision of Rs, 3033 lakhs against sales tax demand (including interest thereon of Rs, 2132 lakhs) For admission of recall petition, hearing in Hon'ble Supreme Court of India is expected shortly.

** a. The Company has incurred CSR Expenditure of Rs,180.88 lakhs (31st March 2017 Rs,100.00 lakhs).

b. The areas for CSR activities undertaken by the Company are Health, Medical aid, and Education grants etc. The Company has formed its CSR Committee as per the Act and Rules thereon.

c. The contribution for CSR activities to corpus of Ratanchand Hirachand Foundation, a Section 8 Company promoted by the Promoters of the Company for undertaking CSR activities on behalf of the Company as per CSR Policy read with Schedule VII of the Act.

d. As per section of 135 of the Companies Act, 2013 (the Act) a company meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years (calculated in accordance with the provisions of Section 198 of the Act) on corporate social responsibility (CSR) activities/programs in terms of its CSR policy and Schedule VII of the Act. The report on CSR activities and CSR expenditure incurred by the Company for the Financial Year 2017-18 is given in the Board's Report.

4 Segment information

The reportable segment of the Company are construction and others. The segment are largely organized and managed separately based on nature of product and or services.

Operating segment are reported in a manner consistent with the internal reporting provided to the 'Executive Director' and 'Chairman & Managing Director' jointly regarded as Chief Operating Decision Maker ("CODM").

Description of each of the reportable segments for all periods presented, is as under : a Construction contracts including water supply schemes, pipe supply & laying projects This segment fetches revenue mainly from following activities :

(i) Manufacturing and sale of pipes.

(ii) Supply and installation and laying of pipes.

For financial statements presentation purposes, these individual operating segments have been aggregated into single operating segment taking into account following factors :

- These operating segments have similar long-term profit margin

- The nature of products are similar

- The production processes are similar

b Others

This segment consists of selling of railway sleepers to government clients and rifles to private customers and development of land and other miscellaneous items.

The CODM evaluates the Company's performance and allocate resources based on an analysis of various performance indicators by operating segment.. The CODM reviews revenue and gross profit as performance indicators for operating segment.

The measurement of each segments revenues, expenses and asset is consistent with the accounting policies that are used in preparation of the financial statement. Segment profit represents, the profit before interest and tax

*The revenue of the Company from a single large customer i.e. more than 10%, amounts to Rs, 32,189.12 lakhs for the year ended March 31, 2018 (March 31, 2017 Rs, 90,322.67 lakhs)

Rs, 2.33 List of related party transaction

Following are the related parties of the Company identified by the management Key management personnel Mr. Rajas R. Doshi Mr. Mayur R. Doshi Relative of key management personnel Mrs. Jyoti R. Doshi Mr. Aditya R. Doshi Mrs. Anushree M. Doshi Holding company IHP Finvest Ltd.

Ultimate holding company

Ratanchand Investment Pvt. Ltd.

Companies in which control exists directly / indirectly

Ratanchand Hirachand Foundation Walchand Hirachand Foundation Mobile Systems India Pvt. Ltd.

Raj Jyoti Trading & Investment Pvt. Ltd.

Smt. Pramila Shah Charity Foundation Walchand Trust Other related parties

Ms. Anima B. Kapadia (Non-Executive Non-Independent Director)

Verifacts Services Pvt. Ltd.

2.38 Note on capital management and financial risk management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that it can maximise returns for the shareholders and benefits for other stake holders. The aim to maintain an optimal capital structure and minimize cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted) consistent with others in the industry.

The Company's activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

5 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk includes loans and borrowings.

(i) Interest rate risk

The Company is working capital intensive and is rated in “A” band category due to which it is in a position to negotiate competitive pricing for its working capital requirement from Consortium member banks and also from outside consortium banks. The Company avails funds from the banks for a committed / fixed rate of interest for a longer tenure and as such the exposure of the Company towards interest rate volatility is minimized. With regard to Term Loan, exposure of the Company is insignificant and hence does not pose much threat towards unforeseen and unprecedented & volatile interest risk.

(ii) Foreign currency risk

The Company has very few and small value transaction in foreign currency hence the Company is exposed to limited foreign exchange risk.. Nonetheless, the Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Sensitivity analysis

The Company's exposure in foreign currency is not material and hence the impact of any significant fluctuation in the exchange rates is not expected to have a material impact on the operating profits of the Company.

(iii) Equity price risk

The Company's listed and non-listed equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company manages the equity price risk through diversification and by placing limits

As at 31 March 2018, the exposure to listed equity securities at fair value was Rs, 213.77 lakhs. These changes would not have a material effect on the profit or loss of the Company.

2 Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets

are contributed by trade receivables, unbilled work-in-progress, cash and cash equivalents.

a Credit risk on trade receivables and unbilled work-in-progress is limited as the customers of the Company mainly consist of the government entities having a strong credit worthiness. For other customers, the Company normally secures recoverability of dues by means of getting letters of credits established on first class banks in favour of the Company if the material is sold on credit or against receipt of advances from the customers for such supplies and unbilled work-in-progress.

b Credit risk on cash and cash equivalents is limited as the Company invest in deposits with banks mainly for the purpose of offering EMDs for the tenders floated by prospective customers.

In accordance with Ind AS 109, the Company has used the practical expedient by computing the expected credit loss allowance for trade receivables by following simplified approach. The expected credit loss model takes into account historical credit loss experience and adjusted for forward looking information. Simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECL at each reporting date, right from its initial recognition.

6 Liquidity Risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company's finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The following tables details the Companies' remaining contractual maturities for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The table includes both interest and principle cash flow.

# In respect of equity investments which are not held for trading, the Company has made an irrevocable election to present subsequent changes in the fair value of such instruments in Other Comprehensive Income. Such an election is made by the Company on instrument by instrument basis at the time of transition for existing equity instruments / initial recognition for new equity instruments.

The fair value of the equity instruments which are not held for trading is obtained through the publicly available portal. This fair value of these instrument, represents the price at which the equity instruments are bought or sold at the Bombay Stock Exchange.

D Through its gratuity fund and leave plans the Company is exposed to a number of risks, the most significant of which are detailed below -Interest risk

A decrease in the bond interest rate will increase the plan liability; however, In case of gratuity fund, this will be partially offset by an increase in the return on the fund's assets Longevity risk

The present value of Gratuity fund and leave plan liability is calculated by reference to the best estimate of the mortality of plan participants. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary risk

The present value of the Gratuity fund and leave plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

Investment risk

Funded plans being managed by insurers, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

E Accumulated compensated absences ( non vesting)

Actuarial valuation of sick leave has been made on March 31,2018. Gain in respect of this benefit is Rs, 9.07 lakhs recognized in financial year ending March 31, 2018. (March 31, 2017 loss of Rs, 19.25 Lakhs) and a liability of Rs,117.25 Lakhs is outstanding as on March 31, 2018. (March 31, 2017 Rs, 126.31 Lakhs, April 01, 2016 Rs, 107.05).

7 B Defined contribution plans

The Company makes contributions towards Provident Fund, Employee's State Insurance Corporation (ESIC) for qualifying employees The Company has recognized Rs, 354.70 (2016-17 Rs, 331.35) for the year being Company's contribution to Provident Fund and ESIC, as an expense and included in Employee Benefit Expenses in the Statement of Profit and Loss.

The above disclosures are prepared as per requirements of Ind AS 19 to the extent of information available with the Company.

8 Research and Development Expenditure

The expenses on research and development during the year under various heads amounts to Rs, 346.60 lakhs (previous year Rs, 340.49 lakhs).

9 Standards issued but not yet effective:

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying Ind AS 115 - 'Revenue from Contracts with Customers' and consequential amendments to various Ind AS standards. The amended Rules also notified amendments to Ind AS 12 - 'Income Taxes', Ind AS 21 - 'The Effect of Changes in Foreign Exchange Rates', Ind AS 28 - 'Investments in Associates and Joint Ventures' and Ind AS 40 - 'Investment Property'. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB). The amendments are effective from accounting periods beginning from 1st April, 2018.

a Ind AS 115 - 'Revenue from Contracts 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:

- 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 is currently assessing the impact of application of Ind AS 115 on Company's financial statements.

b Amendment to Ind AS 12 - 'Income Taxes':

The amendments clarify the requirement for recognizing deferred tax assets on unrealized losses on debt instruments that are measured at fair value. The amendment also clarify certain other aspects of accounting for deferred tax assets. The changes will not have any material impact on the financial statements of the Company.

c Amendment to Ind AS 40 - 'Investment Property':

The amendments clarify transfers of investment property to or from the portfolio in the case of a change of use. The changes will not have any material impact on the financial statements of the Company.

10 Reconciliation of total equity as at March 31, 2017 and April 01, 2016

1 Ind AS 101 (First-time Adoption of Indian Accounting Standards) provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the Opening Balance Sheet as per Ind AS of April 01, 2016 (the transition date) by :

a recognizing all assets and liabilities whose recognition is required by Ind AS, b not recognizing items of assets or liabilities which are not permitted by Ind AS,

c reclassifying items from previous Generally Accepted Accounting Principles (GAAP) to Ind AS required under Ind AS, and d applying Ind AS in measurement of recognized assets and liabilities.

The impact of transition has been provided in the Opening Reserves as at April 01, 2016. (Refer note 2B below)

Notes

3 Ind AS 101 mandates certain exceptions and allows first-time adopters exemptions from the retrospective application of certain requirements under

Ind AS. The Company has applied the following exemptions in the financial statements:

a Property, plant and equipment and intangible assets were carried in the Balance Sheet prepared in accordance with previous GAAP on March 31, 2016. Under Ind AS, the Company has elected to regard such carrying values as deemed cost at the date of transition.

b The Company has recognized loss allowance on trade receivables at the date of transition and at each reporting date thereafter based on lifetime expected credit losses.

4 In addition to the above, the principal adjustments made by the Company in restating its previous GAAP financial statements, including the Balance

Sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017 are detailed below :

a Under previous GAAP actuarial gains and losses related to the defined benefit schemes for gratuity and pension plans and liabilities towards employee leave encashment were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in OCI. Consequently, the tax effect of the same has also been recognized in OCI instead of profit and loss.

b Under previous GAAP non-current investment in equity instruments were stated at cost. Where applicable, provision was made to recognize a decline, other than temporary, in valuation of such investments. Under Ind AS, financial assets in equity instruments (other than investment in subsidiaries, joint ventures and associates) have been classified as fair value through OCI through an irrevocable election at the time of transition.