2.2.6 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 benefit is probable.

2.2.7 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 profit or loss.

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.

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
profit or loss

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

(iii) The Company recognizes 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 recognized as an
impairment gain or loss in statement of
profit or loss.

Financial liabilites

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.

Subsequent measurement of the financial
liabilites

Financial liabilities are subsequently carried
at amortized cost using the effective
interest 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.
Derecognition of financial instruments
The Company derecognizes 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 derecognized from the Company's
balance sheet when the obligation specified
in the contract is discharged or cancelled or
expires.

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.

2.2.8 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 CGU to which
the asset belongs.

If such assets are considered to be impaired,
the impairment to be recognized 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
recognized for the asset in prior years.

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.

2.2.9 Leases :

The Company's leasing arrangements are
mainly in respect of operating leases for
premises and construction equipment.
The leasing arrangements range from
11 months to 10 years generally and are
usually cancellable / renewable by mutual
consent on agreed terms.Lease payments
under operating leases are recognised as
an expense on a straight line basis in the
statement of profit and loss over the lease
term except where the lease payments are
structured to increase in line with expected
general inflation.

2.2.10 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.

Cash Flow Statement:

Cash flows are reported using the indirect
method, whereby profit / (loss) before 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.

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

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.

Operating cycle:

The Company adopts operating cycle based
on the project 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.

Applicable from 1 April 2019 New
Accounting Standards

On 30^th March 2019, the Ministry of Corporate
Affairs (MCA) notified Ind AS 116-Leases
which is applicable from 1^st April 2019. Ind AS
116 changes the method of accounting for
leases. Excluding short-term and small ticket
leases, the lessee would have to account
for all other leases as a right-to-use asset in
their financial statements and recognise a
corresponding liability to pay the lessor. THE
COMPANY would be implementing Ind AS
116 with effect from Q1 2020. In accordance
with the transition provisions of Ind AS 116,
differences on adoption would be adjusted
to retained earnings as on 1^st April 2019.

Amendments to Accounting Standards:

On 30^th March 2019, the MCA made the
following amendments to accounting
standards:

Income taxes (amendments relating to
income tax consequences of dividend and
uncertainty over income tax treatments)

The amendment relating to income tax
consequences of dividend clarify that

an entity shall recognise the income tax
consequences of dividends in profit or loss,
other comprehensive income or equity
according to where the entity originally
recognised those past transactions or events.
THE COMPANY does not expect any impact
from this pronouncement.

The amendment to Appendix C of Ind AS
12 specifies that the amendment is to be
applied to the determination of taxable
profit (tax loss), tax bases, unused tax losses,
unused tax credits and tax rates, when there
is uncertainty over income tax treatments
under Ind AS 12. It outlines the following:
(1) the entity has to use judgement, to
determine whether each tax treatment
should be considered separately or whether
some can be considered together. The
decision should be based on the approach
which provides better predictions of the
resolution of the uncertainty (2) the entity
is to assume that the taxation authority
will have full knowledge of all relevant
information while examining any amount
(3) entity has to consider the probability of
the relevant taxation authority accepting
the tax treatment and the determination of
taxable profit (tax loss), tax bases, unused tax
losses, unused tax credits and tax rates would
depend upon the probability. The company
does not expect any significant impact of the
amendment on its financial statements.

Prepayment Features with Negative
Compensation

The amendments relate to the existing
requirements in Ind AS 109 regarding
termination rights in order to allow
measurement at amortised cost (or,
depending on the business model, at fair
value through other comprehensive income)
even in the case of negative compensation
payments. THE COMPANY does not expect
this amendment to have any impact on its
financial statements.

Employee Benefits Plan Amendment,
Curtailment or Settlement

The amendments clarify that if a plan
amendment, curtailment or settlement
occurs, it is mandatory that the current
service cost and the net interest for the period

after the re-measurement are determined
using the assumptions used for the re¬
measurement. In addition, amendments
have been included to clarify the effect of a
plan amendment, curtailment or settlement
on the requirements regarding the asset
ceiling. THE COMPANY does not expect this
amendment to have any significant impact
on its financial statements.

Borrowing Costs

The amendments clarify that if any specific
borrowing remains outstanding after the
related asset is ready for its intended use or
sale, that borrowing becomes part of the
funds that an entity borrows generally when
calculating the capitalisation rate on general
borrowings. THE COMPANY does not expect
any impact from this amendment.

Long-term Interests in Associates and
Joint Ventures

The amendments clarify that an entity applies
Ind AS 109 Financial Instruments, to long¬
term interests in an associate or joint venture
that form part of the net investment in the
associate or joint venture but to which the
equity method is not applied. THE COMPANY
does not currently have any long-term
interests in associates and joint ventures.

Business Combinations

The amendments to Ind AS 103 relating to
re-measurement clarify that when an entity
obtains control of a business that is a joint
operation, it re-measures previously held
interests in that business.

Joint Arrangements

The amendments to Ind AS 111 clarify that
when an entity obtains joint control of a
business that is a joint operation, the entity
does not re-measure previously held interests
in that business. THE COMPANY will apply
the pronouncement if and when it obtains
control / joint control of a business that is a
joint operation.

26 Financial risk management objectives and policies

The Company is exposed to liquidity risk. The Company's senior management oversees the management of these risks.
The Company's senior management ensures that the Company's financial risk activities are governed by appropriate
policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's
policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of this risk, which is
summarised below.

i. Liquidity risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the use of
bank deposits and loans.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual
undiscounted payments:

27 Capital 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 primary objective of the Company's capital management is to
maintain strong credit rating and heathy capital ratios in order to support its business and maximise the shareholder
value.

30 Contingent Liability : 31, March 2024- Nil and 31, March 2023-Nil

31 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources
or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries”),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate
Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

31a No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding
Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly,
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party
("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

As per our report of even date attached

For K.P.Rao & Co. For and on behalf of the Board of Directors

Chartered Accountants NCC Bluewater Products Limited

FRN:003135S aN:L05005TG1992PLC014678

Mohan R Lavi U. Jayachandra J S N Raju

Partner Director Whole Time Director

Membership No.029340 DIN No.02428646 DIN No.02143715

Place : Hyderabad K.Vidya Sagar M Venu Gopal

Date : 24.05.2024 C.F.O Company Secretary

M.No.:A69513