3.09 Provisions, Contingent liabilities and
Contingent assets

3.09.01 Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of past event, it is probable that
the Company will be required to settle the
obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of
those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain
that reimbursement will be received and the
amount of the receivable can be measured
reliable.

3.09.02 Contingent liabilities and assets

Contingent liability is a possible obligation
that arises from past events and the existence
of which 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, or is a present
obligation that arises from past events but is
not recognised because either it is not probable
that an outflow of resources embodying
economic benefits will be required to settle the
obligation, or a reliable estimate of the amount
of the obligation cannot be made. Contingent
liabilities are disclosed and not recognised.
Contingent assets are neither recognised nor
disclosed.

3.10 Investments in subsidiaries, joint ventures
and associates

Investments in subsidiaries, joint ventures
and associates are initially recognised and
subsequently measured at cost less impairment
loss, if any.

3.11 Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a
party to the contractual provisions of the
instruments.

Financial assets and financial liabilities are
initially measured at fair value. Transactions
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 and loss) are added to or
deducted from the fair value of the financial
assets or financial liabilities, as appropriate,
on initial recognition. Transactions costs
directly attributable to the acquisition of
financial assets or financial liabilities at fair
value through profit and loss are recognised
immediately in profit and loss.

3.12 Financial assets

All purchases or sales of financial assets which
require delivery of assets within the time frame
established by regulation or convention in the
market place are recognised and derecognised
on a trade date basis. All recognised financial
assets are subsequently measured in their
entirety at either amortised cost or fair value,

depending on the classification of the financial
assets.

3.12.01 Classification of financial assets

Debt instruments that meet the following
conditions are subsequently measured at
amortised cost (except for debt instruments
that are designated as at fair value through
profit and loss on initial recognition):

• the asset is held within a business model
whose objective is to hold assets in
order to collect contractual cash flows;
and

• the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal outstanding.

Debt instruments that meet the following
conditions are subsequently measured at
fair value through other comprehensive
income (except for debt instruments that are
designated as at fair value through profit and
loss on initial recognition):

• the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and
selling financial assets; and

• the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal outstanding.

Interest income is recognised in profit and loss
for Fair value through other comprehensive
inome (FVTOCI) debt instruments. For the
purpose of recognising foreign exchange
gains and losses, FVTOCI debt instruments
are treated as financial assets measured at
amortised cost. Thus exchange differences
on the amortised cost are recognised in
profit and loss and other changes in the fair
value of FVTOCI financial assets in other
comprehensive income and accumulated under
the heading of ‘Reserve for debt instruments
through other comprehensive income’. When

the investment is disposed of, the cumulative
gain or loss previously accumulated in this
reserve is reclassified to profit and loss.

All other financial assets are subsequently
measured at fair value.

3.12.02 Effective interest method

The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash receipts (including all fees and
points paid or received that form an integral
part of the effective interest rate, transaction
costs and other premium or discounts) through
the expected life of the debt instrument, or,
where appropriate, a shorter period to the net
carrying amount on initial recognition.

Income is recognised on effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income
is recognised in Statement of Profit and Loss
and is included in the “Other income” line
item.

3.12.03 Investments in equity instruments at
FVTOCI

On initial recognition, the Company make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in the fair value of investments in
equity instruments (other than investments
held for trading) in other comprehensive
income. These instruments are initially
measured at fair value plus transaction costs.
Subsequently they are measured at fair value
with gains and losses arising from changes in
fair value recognised in other comprehensive
income and accumulated in the ‘Reserve
for Equity through other comprehensive
income’. On disposal of these investments the
cumulative gain or loss is nor reclassified to
profit and loss.

Dividends on these investments in equity
instruments are recognised in profit and

loss when the Company’s right to receive
dividends is established, it is probable that
the economic benefits associated with the
dividend will flow to the entity, the dividend
does not represent a recovery of part of cost of
the investment and the amount of dividend can
be measured reliably. Dividends are included
as part of ‘Other income’ in the Statement of
Profit and Loss.

3.12.04 Financial assets at fair value through profit
and loss (FVTPL)

Financial assets which meets the criteria of
financial assets held for trading are designated
as ‘Financial Assets at FVTPL’. The Company
has derivatives that are not designated and
effective as a hedge instrument which are
designated as ‘Financial Assets at FVTPL’.
Financial assets at FVTPL are measured at
FVTPL are measured at fair value at the end
of each reporting period, with any gains or
losses arising on remeasurement recognised in
Statement Profit and Loss.

3.12.05 Impairment of financial assets

The Company applies the expected credit
loss model for recognising impairment
loss on trade receivables, other contractual
rights to receive cash or other financial
instruments. Expected credit losses are the
weighted average of credit losses with the
respective risks of default occurring as the
weights. Credit loss is the difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects
to receive, discounted at the original effective
interest rate. The Company estimates cash
flows by considering all contractual terms of
the financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to
the lifetime expected credit losses if the credit
risks on that financial instrument has increased
significantly since initial recognition. If
the credit risk on financial instrument has
not increased significantly since initial

recognition, the Company measures the loss
allowance for that financial instrument at an
amount equal to 12 month expected credit
losses.

If the Company measures the loss allowance
for a financial instrument at lifetime expected
credit loss model in the previous period, but
determines at the end of a reporting period that
the credit risks has not increased significantly
since initial recognition due to improvement
in credit quality as compared to the previous
period, the Company again measures the loss
allowance based on 12 month expected credit
losses.

For trade receivables or any contractual right
to receive cash or another financial asset
that results from transactions that are within
the scope of Ind AS 11 and Ind AS 18, the
Company always measures loss allowance at
an equal to life time expected credit losses. For
the purpose of measuring lifetime expected
credit loss allowance for trade receivables
the Company has used practical expedient as
permitted under Ind AS 109. The expected
credit loss allowance is computed based on
a provision matrix which takes into account
historical credit loss experience and adjusted
for forward looking information.

3.12.06 Derecognition of financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flow
from the asset expire, or when it transfers
the financial asset and substantially all the
risks and rewards of ownership of the asset
to another party. If the Company neither
transfers nor retains substantially all the risks
and rewards of ownership and continues to
control the transferred asset, the Company
recognises its retained interest in the asset and
an associated liability for amounts it may have
to pay. If the Company retains substantially
all the risks and rewards of ownership of
a transferred financial asset, the Company
continues to recognise the financial asset and
also recognises a collateralised borrowing for
the proceeds received.

On derecognition of financial asset in its
entirety, the difference between the asset’s
carrying amounts and the sum of the
consideration received and receivable and
the cumulative gain or loss that had been
recognised in other comprehensive income
and accumulated in equity is recognised in
profit and loss if such gain or loss would have
otherwise been recognised in Statement of
Profit and Loss on disposal of that financial
asset.

3.13 Financial liabilities and equity instruments

3.13.01 Classification as debt or equity

Debt and equity instruments issued by a
Company entity are classified as either
financial liabilities or as equity in accordance
with the substance of the contractual
arrangements and the definition of a financial
liability and an equity instrument.

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by a Company
entity are recognised at the proceeds received,
net of direct issue costs.

Repurchases of the Company’s own equity
instruments is recognised and deducted
directly in equity. No gain or loss is recognised
in profit and loss on the purchase, sale, issue
or cancellation of the Company’s own equity
instruments.

3.13.02 Financial liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at FVTPL,
loans and borrowings and payables. All
financial liabilities are recognised 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.

Financial liabilities at FVTPL are stated at
fair value, with any gains or losses arising
on remeasurement recognised in profit and
loss. The net gain or loss recognised in profit
and loss incorporates any interest paid on the
financial liability and is included in the ‘Other
income’ line item.

3.13.03 Financial liabilities subsequently measured
at amortised cost

Financial liabilities that are not held-for-
trading and are not designated as at FVTPL
are measured at amortised cost at the end of
subsequent accounting periods. The carrying
amounts of financial liabilities that are
subsequently measured at amortised cost are
determined based on the effective interest
method. Interest expense that is not capitalised
as part of costs of an asset is included in the
‘Finance costs’ line item.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash payments (including all fees and
points paid or received that form an integral
part of the effective interest rate, transaction
costs and other premiums or discounts)
through the expected life of the financial
liability, or (where appropriate) a shorter
period, to the net carrying amount on initial
recognition.

3.13.04 Derecognition of financial liabilities

The Company derecognises financial
liabilities when, and only when, the
Company’s obligations are discharged,
cancelled or have expired. An exchange
between with a lender of debt instruments with
substantially different terms is accounted for

as an extinguishment of the original financial
liability and the recognition of a new financial
liability. Similarly, a substantial modification
of the terms of an existing financial liability
(whether or not attributable to the financial
difficulty of the debtor) is accounted for as
an extinguishment of the original financial
liability and the recognition of a new financial
liability. The difference between the carrying
amount of the financial liability derecognised
and the consideration paid and payable is
recognised in Statement Profit and Loss.

3.14 Joint Venture Operations

In respect of contracts executed in Integrated
Joint Ventures under profit sharing
arrangement (assessed as AOP under Income
tax laws), the services rendered to the Joint
Ventures are accounted as income on accrual
basis.

The profit / loss is accounted for, as and when
it is determined by the Joint Venture and the
net investment in the Joint Venture is reflected
as investments, loans and advances or current
liabilities.

3.15 Operating Cycle

Based on the nature of products / activities of
the Company and the normal time between
acquisition of assets and their realisation in
cash or cash equivalents, the Company has
determined its operating cycle as 36 months
for real estate & infrastructure projects and
12 months for others for the purpose of
classification of its assets and liabilities as
current and non-current.

3.16 Rounding Off

The financial statements have been prepared in
Indian Rupees (Rs) rounded off to two nearest
decimal places in lakhs unless otherwise
stated.

32.03 Segment Reporting

The company is engaged in business of construction contracts of Infrastructure and Hotel. In accordance with Ind AS-108
“Operating Segments” the company has presented segment information on the basis of its combined financial statements which
form part of this report.

In the Company’s operations within India there is no significant difference in the economic conditions prevailing in the various
states of India. Further, the company does not have any revenue from foreign. Hence disclosures on geographical segment are not
applicable.

33.01 Capital management

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt
(borrowings as detailed in notes 13 offset by cash and bank balances) and the total equity of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company includes within net debt, long term-term borrowings, short-term borrowings, less cash
and short-term deposits.

33.02 Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables.
The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive
directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use
of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles
on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments.
The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

The corporate treasury management reports on quarterly basis to the board of directors that monitors risks and policies implemented
to mitigate risk exposures.

33.02.01 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. The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk and interest
rate risk.

33.02.02 Credit risk management

Credit risks refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration
risks. The Company’s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk.
Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, finance receivables,
loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material
concentrations of credit risks. The Company does not engage in speculative treasury activity but seeks to manage risk and optimise
interest and commodity pricing through proven financial instruments.

The credit risk on bank balances and derivative financial instruments is limited because the counterparties are banks with high
credit ratings.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. On going credit
evaluation is performed on the financial condition of accounts receivable.

The credit risk on bank balances is limited because the counterparties are banks with high credit ratings.

33.02.03 Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the maturity profile of Company’s non-derivative financial liabilities with agreed repayment period.
The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Company can be required to pay.

37. Reclassification of Loans

During the year ended 31st March 2025, the Company has reviewed the classification of certain loans disclosed under non-current
assets in the previous year. These loans, although earlier presented as non-current, are repayable on demand as per the terms of the
loan agreements. Accordingly, based on the criteria laid down under Ind AS 1 - Presentation of Financial Statements, the Company
has reclassified such loans under current assets in the financial statements as at 31 March 2025.

The following loans have been reclassified as current assets: KDC Nirman Limited: ?5.52 lakhs

The corresponding figures as at 31st March 2024 have also been regrouped wherever necessary for comparability. The change in
classification has no impact on the profit or loss of the Company for the current or prior periods.

38. Reclassification of Audit Fees Payable

During the year ended 31st March, 2025, the Company has reviewed the classification of Audit Fees , which was earlier misclassified
as Trade Payable . Accordingly, based on the criteria laid down under Ind AS 1 - Presentation of Financial Statements, the Company
has reclassified such Audit Fees as Audit Fee Payable under the head Other Current Liabilities in the financial statements as at 31st
March, 2025.

The following Audit fees Payable have been reclassified as Other Current Liabilities:

Audit Fees-(KASG & Co.): ?3.24 Lakhs

Audit Fees Payable-(Barkha & Associates): ?0.27 Lakhs

The corresponding figures as at 31st March, 2024 have also been regrouped wherever necessary for comparability. The change in
classification has no impact on the profit or loss of the Company for the current or prior periods.

39. Reclassification of Rent Payable

During the year ended 31st March, 2025, the Company has reviewed the classification of Rent Payable, which was earlier misclassified
as Trade Payable . Accordingly, based on the criteria laid down under Ind AS 1 - Presentation of Financial Statements, the Company
has reclassified such Audit Fees as Audit Fee Payable under the head Other Current Liabilities in the financial statements as at 31st
March, 2025.

The following Rent Payable have been reclassified as Other Current Liabilities: Rent payable to Neeru Mehra: ?1.90 Lakhs

The corresponding figures as at 31st March, 2024 have also been regrouped wherever necessary for comparability. The change in
classification has no impact on the profit or loss of the Company for the current or prior periods.

1. Current ratio = Current assets Current liabilities

2. Debt-Equity ratio = Long term borrowings Shareholders funds

3. Debt service coverage ratio = Earnings available for debt service Debt service

Where, Earnings for debt service = Net profit before tax Non cash operating expenses like depreciation Interest Other adjustments
like loss on sale of fixed assets Debt service = Interest & Lease payments Principal repayments

4. Return on Equity ratio = Net profit shareholders funds

5. Trade receivables turnover ratio = Net credit sales average receivables

6. Trade payables turnover ratio = Net credit purchases average payables

7. Net capital turnover ratio = Total turnover Average working capital

8. Net profit ratio = Net profit Total revenue

9. Return on capital employed = EBIT (shareholders funds Long term borrowings)

10. Return on Investment = Net profit (shareholders funds Long term borrowings)

41. Other statutory information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ii) The Company do not have any transactions with struck off companies.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in crypto currency or any form of virtual currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities

(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. 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

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

42. Approval of financial statements

The financial statements were approved for issue by the board of directors on 30.05.2025.

As per terms of our report attached. For and on behalf of the Board of Directors

For KASG & CO.

Chartered Accountants Mahesh Mehra Tarak Nath Mishra Sanjay Lal Gupta

Firm Regn. No. 002228C Whole-time Director Whole-time Director Whole-time Director

Roshan Kumar Bajaj & CFO & Company Secretary

Partner DIN:00086683 DIN : 08845853 DIN : 08850306

Membership No. 068523

Date : 30th May, 2025
Place : Kolkata