ಕಂಪನಿಯ ಅಕೌಂಟಿಗ್ ಪಾಲಿಸಿ Karamtara Engineering Ltd.

1 Corporate Information :

The Company is engaged in the business of manufacturing, constructing, designing, installing, building, reinforcing towers of all kinds including steel towers,
cement towers and towers of other material and to manufacture, trade and deal in all types of nut bolts, fasteners. Hot rolled HT & MS Structural
Steel.Lattice towers, Wind Tubular Tower, Wind Angular Tower, Solar Mounting Structure, Solar Piles and Piers, Torque Tube, Railway Structure and
Hardware Fittings & Accessories and other trading activities.

2 Material Accounting Policies

A Statement of Compliance

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed under section 133 of the Companies
Act, 2013 ("the Act"), read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and other provisions of the Act to
the extent notified and applicable.

B Basis of preparation and presentation

These financial statements have been prepared on the historical cost basis, except for certain assets and liabilities which are measured at fair values at the
end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in
exchange for goods and services.

The statement of financial position (including statement of changes in equity) and the statement of profit and loss are prepared and presented in the format
prescribed in Division II of Schedule III to the Companies Act, 2013. The cash flow statement has been prepared and presented as per the requirements of
Ind AS 7 "Cash Flow Statements". The disclosure requirements with respect to items in the balance sheet and statement of profit and loss, as prescribed in
Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified
Accounting Standards.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria as set out under Ind
AS and in the Schedule III to the Act. Based on the nature of the services and their realisation in Cash and Cash Equivalents, the Company has ascertained its
operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing
accounting standard requires a change in the accounting policy hitherto in use.

C Functional and Presentation Currency

These financial statements are presented in Indian Rupees in L3khs, which is also the Company''s functional currency.

D Key Accounting Estimates & Judgements

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that
affect the reported balances of assets and liabilities, disclosures relating to contingent liabilities as at date of financial statements and reported statement of
income and expense for the period presented. Management believes that the estimates used in the preparation of the financial statements are prudent and
reasonable. Estimates & underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Detailed information about each of these estimates and judgements is included in relevant notes together with the information about the basis of
calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgements pertaining to revenue recognition, investments, useful life of property, plant and equipment including
intangible asset, current tax expense and tax provisions, recognition of deferred tax assets and Provisions and contingent liabilities. Estimates and
judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a
financial impact on the Company and that are believed to be reasonable under the circumstances.

Impairment of Investments: The Company reviews its carrying value of investments in subsidiaries and other entities at cost annually, or more frequently
when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

Useful life of Property, Plant and Equipment including intangible asset: Residual values, useful lives and methods of depreciation of property, plant and
equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Taxes: The Company provides for tax considering the applicable tax regulations and based on probable estimates.

The recognition of deferred tax assets is based on estimate of sufficient taxable profits in the Company against which such assets can be utilized.

Provisions and contingent liabilities: Provision is recognised 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. Provisions and contingent liabilities are
reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Fair Value Measurements: When the fair value of the financial assets or financial liabilities recorded or disclosed in the Financial Statements cannot be
measured at quoted price in the active markets, their fair value is measured using the valuation techniques. The input to these valuation techniques are
taken from observable markets, where possible, but where these is not feasible, a degree of judgment is required in establishing fair values.

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 impairment provisions for trade receivables 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 Company''s past history, credit risk, existing market conditions as
well as forward looking estimates at the end of each reporting period

Defined benefit obligations

The present value of defined benefit obligations is determined by discounting the estimated future cash outflows by reference to market yields at the end of
reporting period that have terms approximating to the terms of the related obligation.

Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also given in the
normal course of business. There are certain obligations which management has concluded based on all available facts and circumstances are treated as
contingent liabilities and disclosed in the Notes but are not provided for in the financial statements. Although there can be no assurance of the final
outcome of the legal proceedings in which the company is involved it is not expected that such contingencies will have a material effect on its financial
position or profitability.

E Fair Value Measurement

A number of the Company''s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and
liabilities.

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 of liability takes place either:

(1) In the principal market for the asset or liability or

(2) In the absence of a principal market, in the most advantageous market for assets 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.

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 market 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 have occurred

between levels in 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.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of
the assets and liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

• Disclosures for valuation methods, significant estimates and assumptions (Note no. 62)

• Financial Instruments (including those carried at amortised cost) (Note no. 61)

F Revenue Recognition

(i) Revenue from sale of products is recognised upon satisfaction of performance obligations, i.e. at a point of time, which occurs when the control is
transferred to the customer. In cases where physical delivery is deferred as on the reporting date, control is considered to have transferred if the customer
has mutually accepted the deferral, the goods are separately identified and ready for delivery, the company does not have the right to redirect or resell the
goods and all conditions prescribed under Ind AS 115 are satisfied.

(ii) Sale of scrap is included under other operating revenue.

(iii) Revenue on service contracts is recognized on the basis of completed service contract method. Invoices are issued according to contractual terms
and are usually payable as per the credit period agreed with the customer.

(iv) export benefits available are accounted for in the year of export, to the extent the realisation of the same is not considered uncertain by the
Company. This has been classified under ether operating revenue.

(v) Interest is accounted on time proportion basis.

(vi) Dividend income is accounted as and when the right to receive is established.

G Inventory

Inventories (Raw material, work-in-progress, finished goods, stores and spares and erection material) are stated at the lower of cost and net realisable
value. Cost of purchased material is determined on the moving weighted average basis, applied at plant level. Net realisable value represents the estimated
selling price for inventories less all estimated costs of completion and costs necessary to make the sale. Scrap is valued at net realisable value.

Cost of work-in-progress and finished goods includes material cost, labour cost, and manufacturing overheads absorbed on the basis of normal capacity ot
production.

H Leases

The Company has adopted Ind AS 116-Leases effective 1st April, 2019, using the modified retrospective method. The Company has applied the standard to
its leases with the cumulative impact recognised on the date of initial application (1st April, 2019). Accordingly, previous period information has not been
restated.

The Company''s lease asset classes primarily consist of leases for Land and Buildings and Plant & Machinery. The Company assesses whether a contract is or
contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses
whether:

(i) the contract involves the use of an identified asset

(n) the Company has the right to obtain substantially all of the economic benefits from use of the asset through the period of the lease and

(iii) the Company has the right to direct the use of the asset.

(iv) the Company has the right to operate the asset; or

(v) the Company designed the assets in a way that predetermined how and for what purpose it will be used

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 for leases with a term of twelve months or less (short-term leases) and leases of low value assets. For these
short-term and leases of low value assets, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the
lease.

The right-of-use assets are initially recognised at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or
prior to the commencement date of the lease plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or
to restore the underlying asset or the site on which it is located less any lease incentives received. They are subsequently measured at cost less accumulated
depreciation and impairment losses, if any. Right-of-use assets are depreciated from the commencement date on a straight-line basis over the shorter of
the lease term and useful life of the underlying asset.

The lease liability is initially measured at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit
in the lease or, if not readily determinable, using the incremental borrowing rates. The lease liability is subsequently remeasured by increasing the carrying
amount to reflect interest on the lease liability, reducing the carrying amount to reflect the lease payments made.

A lease liability is remeasured upon the occurrence of certain events such as a change in the lease term or a change in an index or rate used to determine
lease payments. The remeasurement normally also adjusts the leased assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease payments have been classified as financing cash flows.

The Company as a Lessor

Leases under which the Company is a lessor are classified as finance or operating leases. Lease contracts where all the risks and rewards are substantially
transferred to the lessee, the lease contracts are classified as finance leases. All other leases are classified as operating leases.

For leases under which the Company is an intermediate lessor, the Company accounts for the head-lease and the sub-lease as two separate contracts. The
sub-lease is further classified either as a finance lease or an operating lease by reference to the RoU asset arising from the head-lease.

I Borrowing Cost

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial
period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing
costs eligible for capitalisation.

Finance expenses are recognised immediately in the Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case
they are capitalised in accordance with the Company''s general policy on borrowing costs.

All other borrowing costs are recognised in the Statement of Profit and Loss in the period in which they are incurred.

J Cash and cash equivalents

For the purpose of presentation in statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with financial institutions,
other short term highly liquid investments with original maturities of 3 months or less that are readily convertible to known amount of cash and which are
subject to a insignificant risk of change in value.

K Income Tax

i) Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Taxable
profit differs from ''profit before tax'' as reported in the statement of profit and loss because of items of income or expense that are taxable or deductible in
the other years and the items that are never taxable or deductible. The Company''s current tax is calculated using tax rates which have been enacted or
substantively enacted by the end of reporting period. Management periodically evaluates positions taken in tax return with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

ii) Deferred tax is recognised on temporary differences between the carrying amount of assets and liabilities in the financial statements and the
corresponding tax base used in computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences.
Deferred tax assets (including unused tax credits and unused tax losses) are generally recognised for all deductible temporary differences to the extent that
it is probable that taxable profits will be available against which those deductible temporary differences can be utilised.

The carrying amount of deferred tax asset is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that
sufficient taxable profits will be available to allow all or part of asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset is
realised based on tax rates (and tax laws) that have been enacted or substantially enacted by the end of the reporting period.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in OCI or in equity). Deferred tax items are
recognised in correlation to the underlying transactions either in OCI or directly in equity.

L Property, Plant and Equipment
Recognition and Measurement:

Property, plant & equipment acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment
losses, if any. The acquisition cost includes purchase price (excluding refundable taxes) and expenses, such as delivery and handling costs, installation, legal
and consultancy services, directly attributable to bringing the asset to the site and in working condition for its intended use.

Subsequent Expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value over their estimated useful lives using the
straight line method and is generally recognised in the statement of profit and loss.

The Company has charged Depreciation based on the basis of Straight Line Method and useful life of assets prescribed in Schedule II of the Companies Act,
2013, except for individual assets costing up to Rupees five thousands are depreciated in full in the period of purchase.

Depreciation commences when the assets are ready for their intended use. Depreciation on Property, Plant and Equipment has been provided on the
straight-line method over their estimated useful life, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions
of the asset, past history of replacement, anticipated technological changes, etc. The estimated useful life of these Property, Plant and Equipment is
mentioned below except for individual assets costing up to Rupees five thousands are depreciated in full in the period of purchase.

Particulars Estimated useful life (in years)

Buildings (including roads and temporary structures) 1-60

Plant and Equipment/ Office Equipment 5-20

Furniture and Fixtures 10

Rolls g

Vehicles g-10

Computers 3.5

The residual values, useful lives and method of depreciation of PPE is reviewed at each financial year end and adjusted prospectively, if appropriate. Any
gain or loss arising on disposal or retirement of an item of property, plant and equipment is determined as the difference between the sale proceeds and
the carrying value of the asset and is recognised in profit and loss account.

Capital work in progress is stated at cost.

M Intangible Assets

Intangible assets acquired separately are measured on initial recognition at cost. The useful lives of intangible assets are assessed as either finite or
indefinite.

Intangible assets with finite lives are amortised over useful economic life and assessed for impairment whenever there is an indication that the intangible
asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least the end of
each reporting period.

Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually. The assessment of indefinite life is reviewed annually
to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Computer Software and Licence & Franchise are amortised on straight line basis over the estimated useful life ranging in 5 years.

N Employee Benefits

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The Company has no obligation other than the contribution payable to
the provident fund. Contribution as required by the Statute paid to the Government Provident Fund and the same is debited to the Statement of Profit and
loss.

Gratuity

Gratuity liability is a defined benefit obligation for employees. The Company''s net obligation in respect of a defined benefit plan is calculated by estimating
the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine
its present value, and the fair value of any plan assets is deducted.

Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss. Re-measurement which comprise of actuarial gain and losses, the
return of plan assets (excluding interest) and the effect of asset ceiling (if any, excluding interest) are recognised in OCI.

O Earnings Per share

Basic earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity
shares outstanding during the period. Earnings considered in ascertaining the Company''s earnings per share is the net profit for the period after deducting
preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for
all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of
equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average
number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.