Provisions are recognised when the Company has a present obligation (legal or
constructive) as a result of a past events and 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 of the amount of the obligation.
If the effect of the 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. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.
• a present obligation arising from past events, when it is not probable that an
outflow of resources will be required to settle the obligation;
• a present obligation arising from past events, when no reliable estimate is
possible
Provisions, contingent liabilities and contingent assets are reviewed at each
balance sheet date.
j. Leases
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.
The Company as a lessee
From 1 April 2019, leases are recognised as a right-of-use asset and a
corresponding liability at the date at which the leased asset is available for use by
the Company. Contracts may contain both lease and non-lease components. The
Company allocates the consideration in the contract to the lease and non-lease
components based on their relative stand-alone prices.
Assets and liabilities arising from a lease are initially measured on a present value
basis. Lease liabilities include the net present value of the following lease
payments:
• fixed payments (including in -substance fixed payments), less any lease
incentives receivable
• variable lease payment that are based on an index or a rate, initially
measured using the index or rate as at the commencement date
• amounts expected to be payable under residual value guarantees, if any
• the exercise price of a purchase option if any, if the Company is reasonably
certain to exercise that option
• payment for penalties for terminating the lease, if the lease term reflects
the Company exercising that option
The lease payments are discounted using the interest rate implicit in the lease. If
the rate cannot be readily determined, which is generally the case for leases in the
Company, the lessee's incremental borrowing rate is used, being the rate that the
individual lessee would have to pay to borrow the funds necessary to obtain an
asset of similar value to the right-of-use asset in a similar economic environment
with similar terms, security and conditions.
Lease payments are allocated between principal and finance cost. The finance cost
is charged to the statement of profit and loss over the lease period so as to
produce a constant periodic rate of interest on the remaining balance of the
liability for each period. Variable lease payments that depend on sales are
recognised in the statement of profit and loss in the period in which the condition
that triggers those payments occurs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful
life and the lease term on a straight-line basis. If the Company is reasonably
certain to exercise a purchase option, the right-of-use asset is depreciated over the
underlying assets useful life.
Payments associated with short-term leases are recognised on a straight-line basis
as an expense in the statement of profit and loss. Short term leases are the leases
with a lease term of 12 months or less. Further, rental payments for the land
where lease period is considered to be indefinite or indeterminable, these are
charged off to the statement of profit and loss.
k. Earnings per share
Basic earnings per equity share is computed by dividing the net profit after tax
attributable to the equity shareholders by the weighted average number of equity
shares outstanding during the year. Diluted earnings per equity share is
computed by dividing adjusted net profit after tax by the aggregate of weighted
average number of equity shares and dilutive potential equity shares during the
year.
l. Cash and cash equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on
hand, cheques on hand and short-term deposits with an original maturity of three
months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist
of cash and short-term deposits, as defined above.
m. Fair value measurement
The Company measures financial instruments such as derivatives and certain
investments, at fair value at each balance sheet date.
All assets and liabilities for which fair value is measured or disclosed in the
financial statements are categorized 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 recognized in the balance sheet on a recurring
basis, the Company determines whether transfers have occurred between levels in
the hierarchy by re-assessing categorization (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 asset
or liability and the level of the fair value hierarchy as explained above.
n. 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
Classification
The Company classifies financial assets as subsequently measured at amortized cost,
fair value through other comprehensive income or fair value through profit or loss
on the basis of its business model for managing the financial assets and the
contractual cash flows characteristics of the financial asset.
Initial recognition and measurement
All financial assets are recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset.
Subsequent measurement
For purposes of subsequent measurement financial assets are classified in below
categories:
• 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.
• 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. The Company has made an irrevocable election for its investments
which are classified as equity instruments to present the subsequent changes in fair
value in other comprehensive income based on its business model.
• 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.
Derecognition
A financial asset is primarily derecognized when the rights to receive cash flows
from the asset have expired or the Company has transferred its rights to receive
cash flows from the asset.
Impairment of financial assets
The Company assesses impairment based on expected credit losses (ECL) model for
measurement and recognition of impairment loss on the financial assets that are
trade receivables or contract revenue receivables and all lease receivables.
(b) Financial liabilities
Classification
The Company classifies all financial liabilities as subsequently measured at
amortized cost, except for financial liabilities at fair value through profit or loss.
Such liabilities, including derivatives that are liabilities, shall be subsequently
measured at fair value.
Initial recognition and measurement
All financial liabilities are recognized initially at fair value and, in the case of loans
and borrowings and payables, net of directly attributable transaction costs. The
Company's financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, and derivative financial instruments.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described
below:
• Financial liabilities at amortised cost
After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortized cost using the EIR method. Gains and losses are recognized
in profit or loss when the liabilities are derecognized as well as through the EIR
amortization process.
Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR
amortization is included as finance costs in the statement of profit and loss.
• Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities
held for trading and financial liabilities designated upon initial recognition as at fair
value through profit or loss. Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in the near term. This category
also includes derivative financial instruments entered into by the Company that are
not designated as hedging instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified as held for trading unless
they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the statement of
profit and loss.
Derecognition
A financial liability is derecognized 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 recognized in the
statement of profit and loss.
o. Unless specifically stated to be otherwise, these policies are consistently followed.
2.3 Significant accounting judgements, estimates and assumptions
The preparation of the Company's financial statements requires management to
make judgements, estimates and assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities at the date of the financial statements.
Estimates and assumptions are continuously evaluated and are based on
management's experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. Uncertainty
about these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in
future periods.
In particular, the Company has identified the following areas where significant
judgements, estimates and assumptions are required. Further information on
each of these areas and how they impact the various accounting policies are
described below and also in the relevant notes to the financial statements.
Changes in estimates are accounted for prospectively.
Judgements
In the process of applying the Company's accounting policies, management has
made the following judgements, which have the most significant effect on the
amounts recognized in the financial statements:
Contingencies
Contingent liabilities may arise from the ordinary course of business in relation
to claims against the Company, including legal, contractor, land access and other
claims. By their nature, contingencies will be resolved only when one or more
uncertain future events occur or fail to occur. The assessment of the existence,
and potential quantum, of contingencies inherently involves the exercise of
significant judgments and the use of estimates regarding the outcome of future
events.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation
uncertainty at the reporting date that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and
estimates on parameters available when the consolidated financial statements
were prepared. Existing circumstances and assumptions about future
developments, however, may change due to market change or circumstances
arising beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.
(a) Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that
an asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset's recoverable
amount. An asset's recoverable amount is the higher of an asset's or CGU's fair
value less costs of disposal and its value in use. It is determined for an individual
asset, unless the asset does not generate cash inflows that are largely
independent of those from other assets or groups of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset. In
determining fair value less costs of disposal, recent market transactions are taken
into account. If no such transactions can be identified, an appropriate valuation
model is used. These calculations are corroborated by valuation multiples,
quoted share prices for publicly traded subsidiaries or other available fair value
indicators.
(b) Defined benefit plans
The cost of the defined benefit plan and other post-employment benefits and the
present value of such obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the
discount rate, future salary increases, mortality rates and future pension
increases. 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.
(c) Fair value measurement of financial instruments
When the fair values of financial assets and financial liabilities recorded in the
balance sheet cannot be measured based on quoted prices in active markets, their
fair value is measured using valuation techniques including the DCF model. The
inputs to these models are taken from observable markets where possible, but
where this is not feasible, a degree of judgment is required in establishing fair
values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the
reported fair value of financial instruments.
(d) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about
risk of default and expected loss rates. The Company uses judgments in making
these assumptions and selecting the inputs to the impairment calculation, based
on Company's past history, existing market conditions as well as forward looking
estimates at the end of each reporting period.
2.4 Recent Accounting Pronouncement
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 March 31, 2024, MCA has not
notified any new standards or amendments to the existing standards applicable
to the Company.
Note -19
Earning per share
Basic and Diluted EPS amounts are calculated by dividing the profit / loss for the year attributable to equity
holders of the company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit / loss attributable to equity holders of the company
by the weighted average number of Equity shares outstanding during the year plus the weighted average
number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into
Equity shares.
(a) The principal amount and the interest due thereon
remaining unpaid to any supplier as at the end of each
accounting year
Principal amount due to micro and small enterprises
Interest due on above
(b) The amount of interest paid by the buyer in terms of
section 16 of the MSMED Act 2006 along with the
amounts of the payment made to the supplier beyond
the appointed day during each accounting year
(c) The amount of interest due and payable for the period
of delay in making payment (which have been paid but
beyond the appointed day during the year) but without
adding the interest specified under the MSMED Act
2006.
(d) The amount of interest accrued and remaining unpaid
at the end of each accounting year.
(e) The amount of further interest remaining due and
payable even in the succeeding years, until such date
when the interest dues as above are actually paid to the
small enterprise for the purpose of disallowance as a
deductible expenditure under section 23 of the MSMED
Act 2006
Note -21
Segment Reporting
There are no major business activity during the year. Hence the disclosure requirement of
Indian Accounting Standard 108 of “Segment Reporting” issued by the Institute of Chartered
Accountants of India is not considered applicable.
Note-23 - Financial risk management objectives and policies
The Company's principal financial liabilities, comprise borrowings, trade and other payables, security deposits and others. The
Company's principal financial assets include trade and other receivables and cash and short-term deposits and loans.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's management oversees the management of these
risks. The Company's senior management is supported by a Risk Management Compliance Board that advises on financial risks and
the appropriate financial risk governance framework for the Company. The financial risk committee provides assurance to the
Company's management 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 management
reviews and agrees policies for managing each of these risks, which are summarised below.
I. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market
risk include , deposits.
The sensitivity analyses of the above mentioned risk in the following sections relate to the position as at 31 March 2024 and 31 March
2023.
The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement
obligations; provisions; and the non-financial assets and liabilities of foreign operations. The analysis for contingent liabilities is provided
in Note 34.
The following assumptions have been made in calculating the sensitivity analyses:
- The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on
the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.
The movement in the pre-tax effect on profit and loss is a result of a change in the fair value of derivative financial instruments not
designated in a hedge relationship and monetary assets and liabilities denominated in INR, where the functional currency of the entity is
a currency other than INR.
II. Credit risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks and financial institutions.
Credit risk from investments with banks and other financial institutions is managed by the Treasury functions in accordance with the
management policies. Investments of surplus funds are only made with approved counterparties who meet the appropriate rating
and/or other criteria, and are only made within approved limits. The management continually re-assess the Company's policy and
update as required. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty
failure.
The maximum credit risk exposure relating to financial assets is represented by the carrying value as at the Balance Sheet date
A. Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Company's treasury department in accordance with
the Company's policy. Investments of surplus funds are made only with approved counterparties.
IV. Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities in the same geographical
region, or have economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in
economic, political or other conditions. Concentrations indicate the relative sensitivity of the Company's performance to developments
affecting a particular industry.
The objective of the Company's capital management structure is to ensure that there remains
sufficient liquidity within the Company to carry out committed work programme requirements. The
Company monitors the long term cash flow requirements of the business in order to assess the
requirement for changes to the capital structure to meet that objective and to maintain flexibility.
The Company manages its capital structure and makes adjustments to it, in light of changes to
economic conditions. To maintain or adjust the capital structure, the Company may adjust the
dividend payment to shareholders, return capital, issue new shares for cash, repay debt, put in
place new debt facilities or undertake other such restructuring activities as appropriate.
a. During the year there are no major business activities in the company. The
accumulated losses of the company as on 31st March 2024 exceeded its Paid
Up Capital & Free Reserves. Net worth of the company have become negative
and the company has incurred cash losses during the year and immediately
preceding previous year and current liabilities are significantly higher than
current assets. In this regard the management perceives that there will be
improvisation in financial performance of the company. Accordingly, the
financial statements of the company have been prepared on Going Concern
Basis.
b. The company has continued to be in financial stress and yet to commence any
business activities. Considering the situation, the lenders of unsecured loans
have agreed to convert the borrowing of Rs. 9,000.00 lacs into Non¬
Convertible, Redeemable, non-Cumulative preference shares. The disclosures
of terms of issuance of shares is done in Note no 7.
27. Balance confirmations have not been received from some of the parties showing
debit/credit balances.
28. The company has accounted for retirement benefit of employees on accrual basis
calculated on arithmetical basis based on last drawn salaries which is considered
sufficient by the management in view of significance of amount for compliance of
Ind AS -19.
29. In the opinion of the Board and to the best of their knowledge and belief, the value
on realization of loans, advances & other current assets in the ordinary course of
business will not be less than the amount at which they are stated in the Balance
Sheet.
30. Deferred tax asset has not been recognized in terms of Ind- AS 12 issued by ICAI
by adopting the conservative approach in respect of ascertained profitability in
the future years for setting off the deferred tax asset.
31. Previous year figures have been regrouped wherever necessary.
In terms of our report of even date annexed
For OP BAGLA & CO. LLP
CHARTERED ACCOUNTANTS
Firm Regn. No. 000018N/N500091
Sd/- Sd/-
Sd/- KESHAV SHARMA MAHESH KUMAR
SHARMA
NITIN JAIN DIRECTOR WHOLE-TIME
PARTNER DIN- 08275228 DIRECTOR
M.NO. 510841 DIN- 07504637
Sd/- Sd/-
RINKAL MAHESH KUMAR
COMPANY SHARMA
SECRETARY CHIEF FINANCE
OFFICER
M.NO. A55732 PAN - BJNPS4236D
PLACE : NEW DELHI
DATE : 30.05.2024
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