Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if as a result of a past event, the Company has a present obligation (legal or constructive) that
can be estimated reliably and it is probable that an outflow of economic benefits will be required to settle the obligation.
Provisions are recognized at the best estimate of the expenditure required to settle the present obligation at the balance
sheet date. If the effect of 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.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but
probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably.
Contingent liabilities do not warrant provisions but are disclosed unless the possibility of outflow of resources is remote.
Contingent assets are disclosed in the financial statements when an inflow of economic benefit is probable. However,
when the realization of income is virtually certain, then the related asset is not a contingent asset and its recognition is
appropriate.

k. Onerous contracts

A contract is considered to be onerous when the expected economic benefits to be derived by the

Company from the contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision
for an onerous contract is measured at the present value of the lower of the expected cost of terminating the contract
and the expected net cost of continuing with the contract.

Before such a provision is made, the Company recognises any impairment loss on the assets associated with that
contract.

l. Revenue

Revenue from sale of goods is recognised upon transfer of control of promised products to customer in an amount that
reflects the consideration which the Company expects to receive in exchange for those products.

i) Rental income is recognised on straight line basis.

ii) Revenue from wind mill power project is recognised on the basis of actual power sold as per the terms of the power
purchase agreements entered into with the respective parties.

iii) Revenue from real estate projects:

In arrangements for sale of units the Company has applied the guidance in Ind AS 115, Revenue from contract with
customer, by applying the revenue recognition criteria for each distinct performance obligation. The arrangements
with customers generally meet the criteria for considering sale of units as distinct performance obligations. For
sale of units, the Company recognises revenue when its performance obligations are satisfied and customer
obtains control of the asset. Contract assets are recognised when there is excess of revenue earned over billings
on contracts. Contract assets are classified as unbilled receivables (only act of invoicing is pending) when there is
unconditional right to receive cash, and only passage of time is required, as per contractual terms. Contract Liabilities
are recognised when there is billing in excess of revenue and advance received from customers.

iv) Recognition of Dividend income

Dividend is recognized as revenue when the right to receive payment has been established.

v) Recognition of interest expense or income

For all interest bearing financial assets measured at amortized cost, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash receipts over the expected life of
the financial instrument or a shorter period, where appropriate, to the gross carrying amount of the financial asset.

m. Leases

The Company enters into contract as a lessee for assets taken on lease. The Company at the inception of a contract
assesses whether the contract contains a lease by conveying the right to control the use of an identified asset for a period

of time in exchange for consideration. A Right-of-use asset is recognised representing its right to use the underlying
asset for the lease term at the lease commencement date except in case of short term leases with a term of twelve
months or less and low value leases which are accounted as an operating expense on a straight line basis over the
lease term.

The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial measurement of the lease
liability adjusted for any lease payments made at or before the commencement date less any lease incentives received,
plus any initial direct costs incurred. The Right-of-use assets is subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability.

The Right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter
of lease term or useful life of right-of-use asset. Right-of-use assets are tested for impairment whenever there is any
indication that their carrying amounts may not be recoverable. Impairment loss, if any, is recognised in the Statement of
Profit and Loss.

n. Business combinations

Business combinations (other than common control business combinations) on or after April 1, 2016.

As part of its transition to Ind AS, the Group has elected to apply the relevant Ind AS, viz. Ind AS 103, Business
Combinations, to only those business combinations that occurred on or after April 1,2016. In accordance with Ind AS
103, the Group accounts for these business combinations using the acquisition method when control is transferred to
the Group. The consideration transferred for the business combination is generally measured at fair value as at the date
the control is acquired (acquisition date), as are the net identifiable assets acquired. Any goodwill that arises is tested
annually for impairment Any gain on a bargain purchase is recognised in OCI and accumulated in equity as capital
reserve if there exists clear evidence of the underlying reasons for classifying the business combination as resulting in a
bargain purchase; otherwise the gain is recognised directly in equity as capital reserve. Transaction costs are expensed
as incurred, except to the extent related to the issue of debt or equity securities.

The consideration transferred does not include amounts related to the settlement of pre-existing relationships with the
acquiree. Such amounts are generally recognised in profit or loss.

Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent
consideration that meets the definition of a financial instrument is classified as equity, then it is not remeasured subsequently
and settlement is accounted for within equity. Other contingent consideration is remeasured at fair value at each reporting
date and changes in the fair value of the contingent consideration are recognised in profit or loss.

If share-based payment awards (replacement awards) are required to be exchanged for awards held by the acquiree’s
employees (acquiree’s awards), then all or a portion of the amount of the acquirer’s replacement awards is included in
measuring the consideration transferred in the business combination. The determination of the amount to be included in
consideration transferred is based on the market-based measure of the replacement awards compared with the market-
based measure of the acquiree’ s awards and the extent to which the replacement awards relate to pre-combination
service

If a business combination is achieved in stages, any previously held equity interest in the acquire is re-measured at its
acquisition date fair value and any resulting gain or loss is recognised in profit or loss or OCI, as appropriate.

In case of business combinations involving entities under common control, the above policy does not apply. Business
combination of entities under common control are accounted using “pooling of interests” method and figures for previous
period are restated as if the business combination had occurred at the beginning of the preceding period irrespective of
actual date of combination.

Business combinations prior to April 1, 2016

In respect of such business combinations, goodwill represents the amount recognised under the Group’s previous
accounting framework under Indian GAAP adjusted for the reclassification of certain intangibles.

o. Income tax

Income tax comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a
business combination or to an item recognised directly in equity or in other comprehensive income.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment
to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of
the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. It is
measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised
amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

ii. Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for
financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised
in respect of carried forward tax losses and tax credits.

Deferred tax is not recognised for:

-temporary differences arising on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss at the time of the transaction;

-temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the
Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not
reverse in the foreseeable future; and

-taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against
which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be
available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent
that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will
be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or recognised,
are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable
respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability
is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets,
and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities,
but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised
simultaneously.

p. Borrowing cost

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to
the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period
of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are
recognised as an expense in the period in which they are incurred.

q. Basis for segmentation

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker (CODM). Chief operating decision maker’s function is to allocate the resources of the entity and access
the performance of the operating segment of the Group.

The Board of Directors (CODM) assesses the financial performance and position of the Group and makes strategic
decisions and is identified as being the chief operating decision maker for the Group. Refer note 46 for segment information
presented:

r. Earnings per share (EPS)

Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS
is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the
period except where the results would be anti-dilutive.

s. Exceptional items:

On Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities
of the company is such that its disclosure improves the understanding of the performance of the company. Such income
or expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial
statements.

t. Current vs 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:

• Expected to be realised or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

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

• 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:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

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

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

u. Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the
requirement of Schedule III of the Act.