xviii) Provisions, contingent liabilities and
contingent assets

a) Provisions

Provisions are recognized when the
Company has a present obligation (legal or
constructive) where, as a result of a past
event, it is probable that an outflow of
resources embodying economic benefits
will be required to settle the obligation
and a reliable estimate can be made to
the amount of the obligation. When the
Company expects some or all of a provision
to be reimbursed, the reimbursement
is recognised as a separate asset, but
only when the reimbursement is virtually
certain. The expense relating to a provision
is presented in the statement of profit and
loss, net of any reimbursement.

I f the effect of the time value of money is
material, provisions are discounted using
a current pre-tax rate that reflects, when
appropriate, the risk specific to the liability.
when discounting is used, the increase in
the provision due to the passage of time is
recognized as a finance cost.

Provisions are reviewed at each reporting
date and adjusted to reflect the current
best estimate. If it is no longer probable
that an outflow of resources embodying

economic benefits will be required to settle
the obligation, the provision is reversed.

b) Contingent liabilities and contingent assets

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurence or
non occurence of one or more uncertain
future events beyond the control of the
Company or a present obligation which is
not recognized because it is not probable
that an outflow of resources will be required
to settle the obligation. A contingent liability
also arises in extremely rare cases where
there is a liability that cannot be recognized
because it cannot be measured reliably.
Information on contingent liabilities is
disclosed in the notes to the financial
statements, unless the possibility of an
outflow of resources embodying economic
benefits is remote.

A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only by the occurrence or
non-occurrence of one or more uncertain
future events not wholly within the control
of the Company. Contingent asset is not
recognized, but its existence is disclosed in
the financial statements.

xix) Investments in subsidiaries and associates

The Company has accounted for its investments
in subsidiaries and associates at cost.

xx) 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.

A. Financial assets

a) Initial recognition and measurement

Financial assets are recognized when
the Company becomes a party to
the contractual provisions of the
instrument. The Company determines
the classification of its financial assets
at initial recognition. All financial assets
are recognized initially at fair value
plus transaction costs that are directly

attributable to the acquisition of the
financial asset except for financial
assets classified as fair value through
profit or loss.

b) Subsequent measurement

For the purposes of subsequent
measurement, financial assets are
classified in four categories:

i) Debt instruments measured at
amortised cost

ii) Debt instruments measured
at fair value through other
comprehensive income (FVTOCI)

iii) Debt instruments measured at
fair value through profit or loss
(FVTPL)

iv) Equity instruments measured at
FVTOCI or FVTPL

Debt instruments

The subsequent measurement of
debt instruments depends on their
classification. The classification
depends on the Company's business
model for managing the financial assets
and the contractual terms of the cash
flows.

i) Debt instruments measured at
amortised cost

Debt instruments that are held
for collection of contractual
cash flows where those cash
flows represent solely payments
of principal and interest are
measured at amortised cost.
A gain or loss on a debt investment
that is subsequently measured at
amortised cost and is not part of a
hedging relationship is recognised
in the statement of profit and loss
when the asset is derecognised
or impaired. Interest income
from these financial assets is
disclosed as interest income in the
statement of profit and loss using
the effective interest rate method.

ii) Debt instruments measured at
FVTOCI

Debt instruments that are held
for collection of contractual cash
flows and for selling the financial
assets, where the assets cash
flows represent solely payment of
principal and interest, are measured
at FVTOCI. Movements in the
carrying amount are taken through
OCI, except for the recognition
of impairment gains or losses
and interest income which are
recognised in statement of profit
and loss. When the financial asset
is derecognised, the cumulative
gain or loss previously recognised
in the OCI is reclassified from
equity to statement of profit and
loss. Interest income from these
financial assets is disclosed as
interest income in the statement of
profit and loss using the effective
interest rate method.

iii) Debt instruments measured at
FVTPL

Debt instruments that do not
meet the criteria for amortised
cost or FVTOCI are measured at
fair value through profit or loss.
Debt instruments which are held
for trading are classified as FVTPL.
A gain or loss on a debt investment
that is subsequently measured
at fair value through profit or
loss and is not part of a hedging
relationship is recognised and
presented net in the statement
of profit and loss in the period in
which it arises. Interest income
from these financial assets is
included in other income.

iv) Equity instruments (other than
investment in subsidiaries and
associates - Refer note "xix"
above)

All equity investments in scope of
Ind AS 109 are measured at fair
value. Equity instruments which
are held for trading are classified
as FVTPL. The Company may
make an irrevocable election to

present in other comprehensive
income subsequent changes
in the fair value. The Company
makes such election on an
instrument-by-instrument basis.
The classification is made on initial
recognition and is irrevocable.

If the Company decides to classify
an equity instrument as at FVTOCI,
then all fair value changes on the
instrument, excluding dividends,
are recognized in the OCI. There is
no recycling of the amounts from
OCI to the statement of profit and
loss, even on sale of investment.
However, the Company may
transfer the cumulative gain or
loss within equity.

Equity instruments included within
the FVTPL category are measured
at fair value with all changes
recognized in the statement of
profit and loss.

B. Derecognition of financial assets

A financial asset is derecognised only
when

i) The Company has transferred the rights
to receive cash flows from the financial
asset or

ii) retains the contractual rights to receive
the cash flows of the financial asset,
but assumes a contractual obligation
to pay the cash flows to one or more
recipients.

Where the entity has transferred an
asset, the Company evaluates whether
it has transferred substantially all risks
and rewards of ownership of the financial
asset. In such cases, the financial asset
is derecognised. Where the entity has
not transferred substantially all risks and
rewards of ownership of the financial asset,
the financial asset is not derecognised.

Where the entity has neither transferred
a financial asset nor retains substantially
all risks and rewards of ownership of
the financial asset, the financial asset
is derecognised if the Company has not

retained control of the financial asset.
Where the Company retains control of the
financial asset, the asset is continued to
be recognised to the extent of continuing
involvement in the financial asset.

C. Impairment of 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 trade receivables and/or
contract assets 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
lifetime expected credit losses if the credit
risk on the financial assets has increased
significantly since initial recognition.

D. Financial liabilities

a) Initial recognition and measurement

Financial liabilities are recognised
when the Company becomes a party
to the contractual provisions of the
instrument. The Company determines
the classification of its financial liability
at initial recognition. All financial
liabilities are recognised initially at fair
value plus transaction costs that are
directly attributable to the acquisition
of the financial liability except for
financial liabilities classified as fair
value through profit or loss.

b) Subsequent measurement

For the purposes of subsequent
measurement, financial liabilities are
classified in two categories:

i) Financial liabilities measured at
amortised cost

ii) Financial liabilities measured at
FVTPL (fair value through profit or
loss)

i) Financial liabilities measured at
amortised cost

After initial recognition, financial
liabilities are subsequently

measured at amortized cost using
the Effective Interest Rate ('EIR')
method. Gains and losses are
recognised in the statement of
profit and loss when the liabilities
are derecognised as well as
through the EIR amortization
process. Amortized cost is
calculated by taking into account
any discount or premium on
acquisition and fee or costs that
are an integral part of the EIR.
The EIR amortisation is included
in finance costs in the statement
of profit and loss.

ii) Financial liabilities measured at
fair value through profit or loss
(FVTPL)

Financial liabilities at FVTPL
include financial liabilities held
for trading and financial liabilities
designated upon initial recognition
as at FVTPL. Financial liabilities
are classified as held for trading if
they are incurred for the purpose
of repurchasing in the near term.
Financial liabilities at FVTPL are
carried in the statement of profit
and loss at fair value with changes
in fair value recognized in the
statement of profit and loss.

c) Derecognition

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 derecognition 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.

E. Derivatives

The Company uses interest rate swaps
to hedge its variability in cash flows from
interest payments arising from floating
rate liabilities i.e. when interests are paid

according to benchmark market interest
rates. Derivatives are initially measured at
fair value. Subsequent to initial recognition,
derivatives are measured at fair value, and
changes therein are generally recognised in
the statement of profit and loss.

xxi) Fair value measurement

The Company measures financial instruments,
such as, investment in debt and equity
instruments at fair value at each reporting date.

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:

• in the principal market for the asset or
liability, or

• 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 to 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.

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 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 financial statements on a recurring basis, the
Company determines whether transfers, if any,
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.

xxii) Business combination under common
control

Business combinations involving entities
or businesses under common control are
accounted for using the pooling of interest
method. Under pooling of interest method, the
assets and liabilities of the combining entities
or businesses are reflected at their carrying
amounts after making adjustments necessary to
harmonise the accounting policies. The financial
information in the financial statements in respect
of prior periods is restated as if the business
combination had occurred from the beginning of
the preceding period in the financial statements,
irrespective of the actual date of the combination.
The identity of the reserves is preserved in the
same form in which they appeared in the financial
statements of the transferor and the difference,
if any, between the amount recorded as share
capital issued plus any additional consideration in
the form of cash or other assets and the amount
of share capital of the transferor is transferred to
capital reserve.

xxiii) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker ('CODM')
who regularly monitors and reviews the operating
results. Refer note 51 for segment information.

3(B) SIGNIFICANT ESTIMATES, JUDGEMENTS AND
ASSUMPTIONS

The preparation of financial statements requires
management to exercise judgment in applying the
Company's accounting policies. It also requires the
use of estimates and assumptions that affect the
reported amounts of assets, liabilities, income and

expenses and the accompanying disclosures including
disclosure of contingent liabilities. Actual results
may differ from these estimates. Estimates and
underlying assumptions are reviewed on an ongoing
basis, with revisions recognised in the period in which
the estimates are revised and in any future periods
affected.

a) Contract estimates

The percentage-of-completion method
places considerable importance on accurate
estimates of the extent of progress towards
completion and may involve estimates on the
scope of deliveries and services required for
fulfilling the contractually defined obligations.
These significant estimates include total contract
costs, total contract revenue, contract risks,
including technical, political and regulatory risks,
and other judgement. The Company reassesses
these estimates on periodic basis and makes
appropriate revisions accordingly.

Before including any amount of variable
consideration in the transaction price, the
Company considers whether the amount
of variable consideration is constrained.
The Company determined that the estimates of
variable consideration are not constrained based
on its historical experience, business forecast
and the current economic conditions. In addition,
the uncertainty on the variable consideration will
be resolved within a short time frame.

b) Allowance for uncollectible trade
receivables

Trade receivables do not carry interest and
are stated at their nominal values as reduced
by appropriate allowances for estimated
irrecoverable amounts. Estimated irrecoverable
amounts are based on the ageing of the
receivable balances and historical experiences.
Individual trade receivables are written off when
management deems them not be collectible.

c) Provision for employee benefits

The cost of post-employment and other long
term benefits is determined using actuarial
valuations. An actuarial valuation involves making
various assumptions that may differ from actual
developments in the future. These include
determination of discount rates, expected rate
of return on assets, future salary increases and
mortality rates. Due to the complexities involved

in the valuation and its long term nature, a defined
benefit obligation is highly sensitive to changes in
these assumptions. All assumptions are reviewed
at each reporting date. The assumptions used
are disclosed in note 53.

d) Contingencies and commitments

In the normal course of business, contingent
liabilities may arise from litigation and other
claims against the Company. Potential liabilities
that have a low probability of crystallising or are
very difficult to quantify reliably, are treated as
contingent liabilities. Such liabilities are disclosed
in the notes to the financial statements, if any, but
are not provided for in the financial statements.
There can be no assurance regarding the final
outcome of these legal proceedings.

e) Impairment testing

i) Impairment of non-financial assets

I mpairment exists when the carrying value
of an asset or cash generating unit (CGU)
exceeds its recoverable amount, which
is the higher of its fair value less costs
of disposal and its value in use. The fair
value less costs of disposal calculation is
based on available data from binding sales
transactions, conducted at arm's length, for
similar assets or observable market prices
less incremental costs for disposing of
the asset. The value in use calculation is
based on a DCF model. The cash flows are
derived from the budget for the future years
and do not include restructuring activities
that the Company is not yet committed to
or significant future investments that will
enhance the asset's performance of the
CGU being tested. The recoverable amount
is sensitive to the discount rate used for the
DCF model as well as the expected future
cash-inflows and the growth rate.

ii) Impairment of financial assets

The impairment provisions for financial
assets disclosed are based on assumptions
about risk of default and expected loss
rates. The Company uses judgement in
making these assumptions and selecting the
inputs to the impairment calculation, based
on the Company's past history, existing
market conditions as well as forward looking
estimates at the end of each reporting
period.

f) Taxes

The Company periodically assesses its liabilities
and contingencies related to income taxes
for all years open to scrutiny based on latest
information available. The Company records its
best estimates of the tax liability in the current
tax provision. The management believes that
they have adequately provided for the probable
outcome of these matters.

I n determining the recoverability of deferred
income tax assets, the Company primarily
considers current and expected profitability of
applicable operating business segments and
their ability to utilise any recorded tax assets.
The Company reviews its deferred income tax
assets at every reporting year / period end, taking
into consideration the availability of sufficient
current and projected taxable profits, reversals of
taxable temporary differences and tax planning
strategies.

g) Fair value measurement

The fair value of financial instruments that are not
traded in an active market is determined using
valuation techniques. In applying the valuation
techniques, management makes maximum
use of market inputs and uses estimates
and assumptions that are, as far as possible,
consistent with observable data that market
participants would use in pricing the instrument.
Where applicable data is not observable,
management uses its best estimate about the
assumptions that market participants would
make. These estimates may vary from the actual
prices that would be achieved in an arm's length
transaction at the reporting date. For details of
the key assumptions used and the impact of
changes to these assumptions (Refer note 41).

h) Share based payments

Estimating fair value for share-based payment
requires determination of the most appropriate
valuation model. The estimate also requires
determination of the most appropriate inputs
to the valuation model including the expected
life of the option, volatility and dividend

yield and making assumptions about them.
The assumptions and models used for estimating
fair value for share-based payment transactions
are disclosed in note 50.

i) Leases

The Company evaluates if an arrangement
qualifies to be a lease as per the requirements
of Ind AS 116. Identification of a lease requires
significant judgement. The Company uses
significant judgement in assessing the lease
term (including anticipated renewals) and the
applicable discount rate.

The Company determines the lease term as the
non-cancellable period of a lease, together with
both periods covered by an option to extend the
lease if the Company is reasonably certain to
exercise that option; and periods covered by an
option to terminate the lease if the Company is
reasonably certain not to exercise that option.
In assessing whether the Company is reasonably
certain to exercise an option to extend a lease,
or not to exercise an option to terminate a lease,
it considers all relevant facts and circumstances
that create an economic incentive for the
Company to exercise the option to extend the
lease, or not to exercise the option to terminate
the lease. The Company revises the lease term
if there is a change in the non-cancellable period
of a lease. The discount rate is generally based
on the incremental borrowing rate specific to the
lease being evaluated or for a portfolio of leases
with similar characteristics.

3(C) RECENT PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. For the year ended 31
March 2025, MCA has notified Ind AS - 117 Insurance
Contracts and amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions, applicable
to the Company w.e.f. 1 April 2024. The Company has
reviewed the new pronouncements and based on its
evaluation has determined that it does not have any
significant impact in its financial statements.