Provisions, Contingent Liabilities and Contingent Assets

The Company recognises provisions when there is present
obligation as a result of past event and it is probable that
there will be an outflow of resources and reliable estimate
can be made of the amount of the obligation. A disclosure
for Contingent liabilities is made in the notes on accounts
when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of
resources. Contingent assets are disclosed in the financial
statements when flow of economic benefits is probable.

2.17 Financial instruments:

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

Financial assets and financial 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 of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial
assets or financial liabilities at fair value through profit or
loss are recognised immediately in statement of profit and
loss.

2.18 Financial assets:Financial asset is

1 Cash / Equity Instrument of another Entity,

2. Contractual right to -

a) receive Cash / another Financial Asset from
another Entity, or

b) exchange Financial Assets or Financial Liabilities
with another Entity under conditions that are
potentially favourable to the Entity.

2.19 Subsequent measurement of the financial assets:

(i) Financial assets carried at amortised cost

A financial asset is subsequently measured at
amortised cost if it is held within a business model
whose objective is to hold the asset 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.

(ii) Financial assets at fair value through other
comprehensive income

A financial asset is 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. Further,
in case where the company has made an irrevocable
selection based on its business model, for its
investments which are classified as equity instruments,
the subsequent changes in fair value are recognised in
other comprehensive income.

(iii) Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the
above categories are subsequently fair valued through
profit or loss.

(iv) The Company recognises loss allowances using the
expected credit loss (ECL) model for the financial
assets which are not fair valued through profit or loss.
Loss allowance for trade receivables with no significant
financing component is measured at an amount equal
to lifetime ECL. For all other financial assets, expected
credit losses are measured at an amount equal to the
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 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 recognised is
recognised as an impairment gain or loss in statement
of profit and loss.

2.20 Financial liabilities:

Financial liability is Contractual Obligation to

a) Deliver Cash or another Financial Asset to another
Entity, or

b) Exchange Financial Assets or Financial Liabilities with
another Entity under conditions that are potentially
unfavourable to the Entity.

The company's financial liabilities include trade and other
payables, loans and borrowings including bank overdrafts.

2.21 Subsequent measurement of the financial liabilities:

Financial liabilities are subsequently carried at amortized
cost using the effective interest rate method. For trade and
other payables maturing within one year from the balance
sheet date, the carrying amounts approximate the fair value
due to the short maturity of these instruments.

2.22 Derecognition of financial instruments:

The Company derecognises a financial asset when the
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer
qualifies for derecognition under Ind AS 109. A financial
liability (or a part of a financial liability) is derecognised from
the Company's balance sheet when the obligation specified
in the contract is discharged or cancelled or expires.

2.23 Fair value of financial instruments:

In determining the fair value of its financial instruments,
the Company uses a variety of methods and assumptions
that are based on market conditions and risks existing at
each reporting date. The methods used to determine fair
value include discounted cash flow analysis, available
quoted market prices and dealer quotes. All methods
of assessing fair value result in general approximation of
value, and such value may or may not be realized.

2.24 Impairment of Assets:

Intangible assets and property, plant and equipment:
Intangible assets and property, plant and equipment are
evaluated for recoverability whenever events or changes in
circumstances indicate that their carrying amounts may not
be recoverable. For the purpose of impairment testing, the
recoverable amount (i.e. the 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 such assets are considered to be impaired, the impairment
to be recognised in the statement of profit and loss is
measured by the amount by which the carrying value of the
assets exceeds the estimated recoverable amount of the
asset. An impairment loss is reversed in the statement of
profit and loss if there has been a change in the estimates
used to determine the recoverable amount. The carrying
amount of the asset is increased to its revised recoverable
amount, provided that this amount does not exceed the
carrying amount that would have been determined (net
of any accumulated amortization or depreciation) had no
impairment loss been recognised for the asset in prior years.

2.25 Fair value measurement:

The Company measures certain financial instruments at fair
value at each reporting date. Fair value is the price that would
be received on sale of 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 principal market, in the most
advantageous market for the asset or liability.

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.

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.

2.26 Leases :

The Company assesses at contract inception whether
a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for
a period of time in exchange for consideration. At the date
of commencement of the lease, the Company recognises
a right-of-use asset ("ROU") and a corresponding lease
liability for all lease arrangements in which it is a lessee,
except short-term leases and low value leases.

Ind AS 116 requires lessees to determine the lease term
as the non-cancellable period of a lease adjusted with
any option to extend or terminate the lease, if the use of
such option is reasonably certain. The Company makes an
assessment on the expected lease term on a lease-by-lease
basis and thereby assesses whether it is reasonably certain
that any options to extend or terminate the contract will
be exercised. In evaluating the lease term, the Company
considers factors such as any significant leasehold
improvements undertaken over the lease term, costs
relating to the termination of the lease and the importance
of the underlying asset to the Company's operations taking
into account the location of the underlying asset and the
availability of suitable alternatives.

The Company applies the short-term lease recognition
exemption to its short-term leases of premises and
construction equipment (i.e., those leases that have a lease
term of 12 months or less from the commencement date or
the adoption of Ind AS 116 and do not contain a purchase
option). Lease payments on short-term leases and leases of
low-value assets are recognised as expense on a straight¬
line basis over the lease term.

2.27 Earnings Per Share :

Basic earnings per equity share is computed by dividing
the net profit for the year attributable to the Equity
Shareholders by the weighted average number of equity
shares outstanding during the year. Diluted earnings per
share is computed by dividing the net profit for the year,
adjusted for the effects of dilutive potential equity shares,
attributable to the Equity Shareholders by the weighted
average number of the equity shares and dilutive potential
equity shares outstanding during the year except where the
results are anti-dilutive.

2.28 Cash Flow Statement:

Cash flows are reported using the indirect method,
whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature
and any deferrals or accruals of past or future cash receipts
or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based
on the available information.

Cash comprises cash on hand and demand deposits with
banks. Cash equivalents are short-term balances (with an
original maturity of three months or less from the date
of acquisition), highly liquid investments that are readily
convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.

2.29 Critical judgements in applying accounting policies:

The following are the critical judgements, apart from those
involving estimations, that the directors have made in the
process of applying the Company's accounting policies
and that have the most significant effect on the amounts
recognised in the financial statement.

(i) Revenue recognition: The Company uses the stage
of completion method using survey method and /or on
completion of physical proportion of the contract work
to measure progress towards completion in respect of
construction contracts. This method is followed when
reasonably dependable estimates of costs applicable
to various elements of the contract can be made. Key
factors that are reviewed in estimating the future costs
to complete include estimates of future labour costs
and productivity efficiencies. Because the financial
reporting of these contracts depends on estimates
that are assessed continually during the term of these
contracts, recognised revenue and profit are subject
to revisions as the contract progresses to completion.
When estimates indicate that a loss will be incurred,
the loss is provided for in the period in which the loss
becomes probable.

(ii) Key sources of estimation uncertainty: The

following are the key assumptions concerning the
future, and other key sources of estimation uncertainty
at the end of the reporting period that may have a
significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the
next financial year.

2.30 Exceptional Items:

Exceptional Items represents the nature of transactions
which are not in recurring nature during the ordinary course
of business but lead to increase / decrease in profit / loss
for the year.

2.31 Operating cycle:

The Company adopts operating cycle based on the project
period (including Defect Liability Period) and accordingly
all project related assets and liabilities are classified into
current and non current. Other than project related assets
and liabilities, 12 months period is considered as normal
operating cycle.

2.32 Recent accounting pronouncements:

Standards issued but not yet effective and not early adopted
by the Company

Ministry of Corporate Affairs ("MCA") notifies new standard
or amendments to the existing standards. On March 31,
2023, the MCA, issued certain amendments to Ind AS. The
amendments relate to the following standards:

- Ind AS 101, First-time Adoption of Indian Accounting
Standards

- Ind AS 1, Presentation of Financial Statements

- Ind AS 8, Accounting Policies, Changes in Accounting
Estimates and Errors

- Ind AS 12, Income Taxes

These amendments are effective from April 01, 2023. The
Company believes that the aforementioned amendments
will not materially impact the financial statements of the
Company.