(m) Provisions and contingent liabilities
Provisions

Provisions are recognized when there is a present legal or constructive obligation as a result of
a past events, it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation and there is a reliable estimate of the amount of the obligation.

If the effect of the time value of money is material, provisions are determined by discounting the
expected future cash flows at a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the liability. Where discounting is used, the increase in
the provision due to the passage of time is recognized as an interest expense.

Contingent liabilities

Contingent liabilities are disclosed when there is a possible obligation arising from past events,
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 a present obligation that
arises from past events where it is either not probable that an outflow of resources will be required
to settle the obligation or a reliable estimate of the amount cannot be made.

(n) Employee benefits

(i) Short term obligations

Short term employee benefits such as wages and salaries, including non-monetary benefits
that are expected to be settled wholly within 12 months after the end of the period in which
the employees render the related service are recognised in respect of employees' services
up to the end of the reporting period and are measured at the amounts expected to be paid
when the liabilities are settled. The liabilities are presented as current employee benefit
obligations in the balance sheet.

(ii) Post-employment obligations

The company operates the following post-employment schemes.

Ý Defined contribution plans such as provident fund, superannuation etc.

Ý Defined benefit plans such as gratuity
Defined contribution plans

The company pays contribution to defined contribution schemes such as provident fund,
superannuation fund etc. The company has no further payment obligation once the
contributions have been paid. The contributions are accounted for as defined contribution
plans and the contributions are recognised as employee benefit expense when they are due.

Defined benefit plans

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity
plans is the present value of the defined benefit obligation at the end of the reporting period
less the fair value of plan assets. The defined benefit obligation is calculated annually by
actuaries using the projected unit credit method.

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

The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in employee
benefit expense in the statement of profit and loss. Re-measurement, comprising of actuarial
gains and losses, in respect of gratuity are recognised in the Other Comprehensive Income,
in the period in which they occur and is not eligible to be reclassified to the Statement of
Profit and Loss in subsequent periods.

Changes in the present value of the defined benefit obligation resulting from plan amendments
or curtailments are recognised immediately in profit or loss as past service cost.

(o) Cash Flow Statement :

Cash flows are reported using the indirect method, whereby profit 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.

(p) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the net profit after tax by the weighted
average number of equity shares outstanding during the year adjusted for bonus element
in equity share.

(ii) Diluted earnings per share adjusts the figures used in determination of basic earnings per
share to take into account the conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as at the beginning of the period unless
issued at a later date.

(q) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest
thousand as per the requirement of Schedule III, unless otherwise stated.

(r) Previous year Figures has been regrouped or re arranged wherever required.

In terms of our report of even date For and on Behalf of Board of Directors

For Naresh J Patel & Co.

Chartered Accountants Narendra M. Purohit Karan Shah

Firm Registration No. : 123227W Chairman & Managing Director Director

DIN: 00755195 DIN: 09666627

Chintan Patel

Partner Saumil N. Purohit Nishit Kumar Sandhani

Membership No.: 110741 Chief Financial Officer Comapany Secretary

UDIN: 24110741BKFXZH3143

Place : Ahemdabad Place : Ahemdabad

Date : 24/05/2024 Date : 24/05/2024

(i) Defined contribution Plans

The company has certain defined contribution plans. Contributions are made to provident fund in
India for employees at prescribed % of basic salary as per regulations. The contributions are made
to registered provident fund administered by the government. The obligation of the company is
limited to the amount contributed and it has no further contractual nor any constructive obligation.
The expense recognised during the period towards defined contribution plan is INR 61,584.
(P.Y. 51,492)

(ii) Defined benefit Plans

The company has certain defined benefit plans. The expense recognised during the period towards
defined contribution plan is INR 1,25,306. (P.Y. 5,07,481)

NOTE - 27 - FINANCIAL RISK MANAGEMENT:

The Company's activities expose it to a variety of financial risks namely credit risk and liquidity risk. The
Company's focus is to foresee the unpredictability of financial markets and seek to minimize potential
adverse effects on its financial performance.

(i) 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. Financial instruments that are subject to credit risk
and concentration thereof principally consist of trade receivables, security deposits and cash and
cash equivalents.

Credit risk on trade receivables is limited as the customers of the company mainly consists of the
related parties, as a result the management has assessed that the credit risk is low.

Security deposits are receivable from the customers on the expiry of lease period, therefore the credit
risk is limited. Credit risk on cash and cash equivalents is limited as the Company generally invest
in deposits with banks and financial institutions with high credit ratings.

(ii) Liquidity risk

Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at a reasonable price. Company's objective is to, at all time maintain optimum levels of
liquidity to meet its financial obligations. The Group manages liquidity risk by maintaining sufficient
cash and cash equivalents and by having access to funding through an adequate amount of
committed credit lines. In addition, processes and policies related to such risks are overseen by
senior management.

NOTE - 28 - CAPITAL MANAGEMENT
(a) Risk 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 and borrowings.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a
going concern and to optimise returns to our shareholders. The capital structure of the Company
is based on management's judgement of the appropriate balance of key elements in order to meet
its strategic and day-to day needs. We consider the amount of capital in proportion to risk and
manage the capital structure in light of changes in economic conditions and the risk characteristics
of the underlying assets.

The Company's aim is to translate profitable growth to superior cash generation through efficient
capital management. The Company's policy is to maintain a stable and strong capital structure with
a focus on total equity so as to maintain investor, creditors and market confidence and to sustain
future development and growth of its business. The Company will take appropriate steps in order
to maintain, or if necessary adjust, its capital structure. The Company is not subject to financial
covenants in any of its significant financing agreements. The management also monitors the return
on capital as well as the level of dividends to shareholders.

NOTE - 29 - SEGMENT INFORMATION:

The company's managing director who is identified as the chief operating decision maker of the
company, examines the performance of the business and allocates funds on the basis of i.e. 'Civil
construction services' related to Construction. The company does not have any reportable geographical
segment.

Accordingly, the segment revenue, segment results, total carrying amount of segment assets and
segment liability, total cost incurred to acquire segment assets and total amount of charge for depreciation
during the period, is as reflected in the Financial Statements as of and for the financial year ended March
31, 2024 as attached here as pert of Note 33.