3.23. Provisions and Contingencies
Provisions
Provisions are recognised when there is a present obligation as a result of a past event, and it is probable
that an outflow of resources embodying economic benefits will be required to settle obligation and there is
a reliable estimate of amount of obligation. Provisions are determined by discounting expected future cash
flows at a pre-tax rate that reflects current market assessment of time value of money and risks specific to
liability.
Contingent Liabilities
Contingent liabilities are disclosed when there is a possible obligation arising from past events, existence of
which will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not
wholly within control of 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, or a reliable estimate of amount cannot be
made.
Contingent Assets
Contingent assets are not recognised but disclosed in Standalone Financial Statements when an inflow of
economic benefits is probable.
Provision for Maintenance/ Contingencies:
The Company recognizes provision for onerous contracts based on the estimate of excess of unavoidable costs
of meeting obligations under the contracts over the expected economic benefits. Provision for maintenance/
contingencies has been made in respect of projects completed as on the balance sheet date whose defect
liability period has not expired.
Note No. 4
Critical Accounting Estimates, Assumptions, Judgements and Recent Accounting Pronouncement
4.1. Use of Estimates and Judgements
Preparation of Standalone Financial Statements in conformity with Ind AS requires management to make
judgements, estimates and assumptions that affect application of accounting policies and reported amount
of assets, liabilities, income, expenses and disclosures of contingent liabilities at date of these financial
statements and reported amount of revenues and expenses for the years presented. Estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and future periods affected.
4.2. Significant Management Judgements
In process of applying Company’s accounting policies, management has made following estimates,
assumptions and judgements, which have significant effect on amounts recognised in financial statement:
Contingencies
Management judgement is required for estimating possible outflow of resources, if any, in respect of
contingencies/claim/litigations against Company as it is not possible to predict outcome of pending matters
with accuracy.
Allowance for uncollected accounts receivable and advances.
Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate
allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management
deems them not to be collectible. Impairment is made on expected credit losses, which are present value of
cash shortfall over expected life of financial assets.
4.3. Estimation Uncertainty
Information about estimates and assumptions that have most significant effect on recognition and
measurement of assets, liabilities, income and expenses is provided below.
Revenue Recognition
Where revenue contracts include deferred payment terms, management of Company determines fair value of
consideration receivable using expected collection period and interest rate applicable to similar instruments
with a similar credit rating prevailing at date of transaction.
Recoverability of Advances/ Receivables
Company from time-to-time review recoverability of advances and receivables. Review is done at least once
in a financial year and such assessment requires significant management judgement based on financial
position of counterparties, market information and other relevant factors.
Provisions and Contingencies
Management judgement is required for estimating possible outflow of resources, if any, in respect of
contingencies/ claim/ litigations against Company as it is not possible to predict outcome of pending matters
with accuracy.
Defined Benefit Obligation (DBO)
Management’s estimate of DBO is based on a number of critical underlying assumptions such as standard
rates of inflation, medical cost trends, mortality, discount rate and anticipation of future salary increases.
Variation in these assumptions may impact DBO amount and annual defined benefit expenses.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimates are revised and future periods affected.
4.4. Recent 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 31st March 2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments
to Ind AS 116 - Leases, relating to sale and leaseback transactions, applicable to the Company w.e.f.
1st April 2024. The Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any significant impact in its financial statements.
• The Ministry of Corporate Affairs (MCA) has issued amendments to Ind AS 21, The Effects of Changes in
Foreign Exchange Rates, through the Companies (Indian Accounting Standards) Amendment Rules, 2025.
The amendments are effective for annual periods beginning on or after 1st April 2025, with early adoption
permitted. The Company is in the process of evaluating the potential impact of these amendments on
its financial statements.
Note No. 5B
a) The Company assessed the impairment of assets and is of the opinion that since the Company is going concern and there
is no indication exist for the impairment of the PPE.
b) The useful life of the PPE have been defined in the accounting policies.
c) No assets have been classified as held for sale in accordance with Ind AS 105.
d) The Company has not revalued its Property, Plant & Equipment.
e) The Company does not hold any benami property and there are no proceedings which have been initiated
or pending against the company under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.
f) The title deeds of immovable properties (whether classified as Property, Plant, and Equipment (ppe),
Investment Property) are still registered under the former name of the company, M/s. Globe Civil Projects
Private Limited.
g) There is no Capital Work in Progress in the company.
Refer note no. 21 D for Property, Plant & Equipment pledged as security.
The carrying amount of the Trade Receivables are considered as a reasonable approximation of fair value as it is
expected to be collected within twelve months.
Trade Receivables are non interest bearing and the payment is generally due upon completion of milestone as per
terms of contract.
Trade Receivables are hypothecated as security against bank borrowings (refer note no. 21 d).
No trade or other receivable are due from directors or officers of company either severally or jointly with other
person.
Refer Note No. 46 “Related Party Disclosure” for trade or other receivable due from firms or private companies
respectively in which any director is a partner or a director or a member.
For Trade Receivable Ageing Schedule for 31st March 2025, 31st March 2024, 1st April 2023, Refer Note No. 43
assets of the Company shall be distributed to the holders of the equity shares in proportion to the number of
shares held to the total equity shares outstanding as on that date.
5) On 15th December 2021 the company allotted 1,42,367 shares on Right issue basis for cash price of 5211 per
equity share including premium of 5201 per equity share amounting to cash consideration of 530.04 Millions.
6) On 9th July 2024 the company allotted 52,100 shares on preferential basis for cash price of 5960 per equity
share including premium of 5950 per equity share amounting to cash consideration of 550.02 Millions.
7) On 20th July 2024 the company issued bonus equity shares of 16 equity shares for every 1 equity shares held
out of its Securities Premium Account and Reserves and Surplus created out of profit resulting in increase in
equity shares by 4,04,31,472 equity shares having face value of 5404.31 Millions.
8) There are no instance of Buyback by the company in current year nor any of the previous years.
9) On 25th June 2024 the company increased its authorised share capital from 550 Millions to 5650 Millions.
Retained Earnings
Retained Earnings include all current and prior period retained profits. Retained earnings are the profits that the
company has earned till date less any dividends or other distributions to shareholders of the company.
Securities Premium Reserve
Securities Premium Reserve comprises the premium received on issue of shares. It can be utilised in accordance
with the provisions of the Companies Act, 2013 to issue bonus shares, to provide for premium on redemption of
shares or debentures, write-off equity related expenses like underwriting cost, etc.
Re-measurement gain/( loss ) on defined benefit plans (net of taxes)
The company has recognised the change in the value of the certain liabilities towards employee benefit in other
comprehensive income, These changes are accumulated with re-measurement gains/ (loss) on defined benefit
plan reserve with equity.
The company applies the short-term lease recognition exemption to its short-term leases (i.e. those leases that
have a lease term of 12 months or less from the commencement date and do not contain a purchase option or has
a cancellable option before the end of 12 months) and low value lease.
Further, leases having a cancellable period or option to terminate before 12 months of lease have been treated as
short-term considering that the management is uncertain of exercising the option to terminate / Cancel the lease
at the date of inception of the lease. Accordingly, lease payments on short term leases are recognised as expense
on a straight-line basis over the lease term.
Note No. 24 D
Description of Provisions
Provision for Maintenance / Contingencies:
The Company recognizes provision for onerous contracts based on the estimate of excess of unavoidable costs
of meeting obligations under the contracts over the expected economic benefits. Provision for maintenance/
contingencies has been made in respect of projects completed as on the balance sheet date whose defect liability
period has not expired.
Provision for Gratuity (Unfunded):
The Company provides gratuity for employees in India as per the Payment of Gratuity Act 1972.
For Trade Payable Ageing Schedule for 31st March 2025, 31st March 2024, 1st April 2023: Refer Note No. 44
Acceptances represent amounts payable to banks on due date as per usance period of Letter of Credit (LCs)
issued to raw material vendors under non fund based working capital facility approved by banks for the company.
For security of non fund based limits, refer note no. 21 D.
^Disclosure pursuant to Section 22 of The Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act)
Parties covered under “The Micro, Small and Medium Enterprise Development Act, 2006” (MSMED Act, 2006) have
been identified on the basis of confirmation received from respective parties. The disclosures pursuant to the said
MSMED Act are as follows:
*it includes litigation of the Demand already dropped for f159.06 Million; subsequently department has challenged the order in
CESTAT. Now the tribunal has passed an order dated 3rd March 2025 & the appeal filed by the department has been dismissed.
It also includes the demand of ?6.39 Million raised by the Commissioner of Central Goods & Service Tax, New Delhi, for the
Financial year 2015-16 on 31st Jaunuary 2024, against which the Commission Appeal-II has granted full relief vide order dated
18th September 2024.
**The company has provided a corporate guarantee to Yes Bank Ltd. for securing the working capital limits and term loan facility
by Vara Milk Foods Specialities Pvt. Ltd. in November 2022, where the Managing Director of the company is one of the directors
and holds 16.25% of the equity shares. The Loan has been repaid by M/s Vara Milk Foods Specialities Pvt. Ltd. & subsequently, the
corporate guarantee has been released after 31st March 2025.
The Commissioner of TDS-1, New Delhi, has issued a Show Cause Notice as to why prosecution shall not be initiated u/s 279(1)
r.w.s. 276B of the Income Tax Act on account of delay in deposit of TDS for the financial year 2017-18 against the company
and its principal officers. The company has made submissions before the Commissioner of TDS-1, New Delhi, for dropping the
proceedings since the company has deposited the said TDS with interest and has made good the default, and accordingly, there
is no liability exists on this account exists on the balance sheet date.
Note No. 42
Disclosure as per Indian Accounting Standard (Ind AS) 108 "Operating Segments"
Primary segment of the company is Engineering, Procurement and Construction (epc) Segment & Trading Segment
i) Basis of Segment:
a) The Company has identified following business segments viz., EPC and Trading as reportable segments
in accordance with Indian Accounting Standard 108 “Operating Segment” notified under section 133 of the
Companies Act, 2013 read together with relevant rules issued thereunder:
ii) Identification of Segment:
The Chief Operating Decision makers monitors the operating results business segment separately for the
purpose of making decision about resources allocation and performance assessment. Segment performance
is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statement.
iii) Segments assets and liabilities:
Segment Assets and Segment Liabilities include the respective amounts identifiable to each of the segments
as also amounts allocated on a reasonable basis. Further, assets and liabilities that cannot be allocated
between reportable segment are shown as a part of unallocated assets and liabilities respectively.
iv) Segment revenue and results:
Segment revenue and Segment results include the respective amounts identifiable to each of the segments
as also amounts allocated on a reasonable basis. The expenses and income, which are not directly allocated
between the reportable segments are shown as unallocated expense or income as the case may be.
b) Defined benefit plans: Gratuity scheme (unfunded)
The gratuity plan is governed by the payment of Gratuity Act, 1972, Under the Act, employee who have completed
five years of service are entitled to specific benefit. The level of benefit provides depend on the members length of
service and salary retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn for
each completed year of service with part thereof in excess of six months subject to maximum limit of 520,00,000.
The same is payable on termination of service or retirement or death whichever is earlier. The present value of the
obligation under such benefit plan is based on actuarial valuation as on at the reporting date using the projected
unit credit method, which recognises each period of service as giving rise additional unit of employee benefit
entitlement and measures each unit separately to build up the final operation. The obligations are measured at
the present value of the estimated future cash flows. The discount rate used for determining the present value of
the obligation under defined benefit plans s based on the market yields on Government bonds as at the date of
actuarial valuation. Actuarial gains and losses (net of tax) are recognised immediately in the Other Comprehensive
Income (oci).
The following tables summarised the component of the of net benefit expense in the statement of profit or loss and
the funded status and amounts recognised in the balance sheet for the respective plans:
Non Financial transactions
a) Mrs. Sumeeta Setia, Mrs. Prerna Gaba, and Mrs. Vimal Khurana have given their immovable property as an
equitable mortgage to secure banking limits of the company.
b) Mrs Sumeeta Setia, Mrs Prerna Gaba, and Mrs. Vimal Khurana have given personal guarantees to secure the
banking limits of the company.
c) Mr. Ved Prakash Khurana, Mr. Vipul Khurana, and Mr. Nipun Khurana have given personal guarantee to secure
banking limits of the company.
d) Mr. Ved Prakash Khurana, Mr. Nipun Khurana have given their immovable property as an equitable mortgage
to secure the banking limits of the company.
e) The company has provided a corporate guarantee to a Bank for securing the working capital limits and
term loan facility by Vara Milk Foods Specialities Pvt. Ltd. & subsequently, the corporate guarantee has been
released after the year-end.
Additional regulatory information required by Schedule III
i. ) Details of Benami Property held
No proceedings have been initiated on or are pending against the company for holding benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
ii. ) Wilful Defaulter
The Company has not been declared Wilful defaulter by any bank or financial institution or government or any
government authority.
iii. ) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under the Companies Act, 2013.
iv. ) Compliance with approved scheme(s) of arrangements
The Company has not entered into any scheme of arrangement which has an accounting impact on current
or previous financial year.
v. ) Utilization of borrowed funds and share premium
A. 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
B. 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.
vi. ) Undisclosed Income
There is no income surrendered or disclosed as income during the current or previous year in the tax
assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
vii. ) Details of Crypto currency or Virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current or previous
year.
viii. ) Valuation of Property, Plant and Equipment, intangible asset and investment property
The Company has not revalued its Property, Plant and Equipment (including right-of-use assets) or Intangible
Assets or Investment Properties during the current or previous year.
ix. ) Utilization of borrowings availed from banks and financial institutions:
During the year the Company has availed borrowings from banks and financial institutions and utilized for the
purpose they were availed.
x. ) Dividend
The Company has not declared or paid dividend during the year or previous year.
xi. ) Transactions with Struck Off Companies
The Company has no dealings with Struck Off Companies.
Restrictions on Fund Transfers: NIL from any of the Joint Ventures/ Joint Controlled Entities and Associates
Interests in Joint Ventures/ Joint Controlled Entities and Associates
GCPPL SCIPL Consortium: The Company entered into a Consortium Agreement dated 25th March 2023 with Swadeshi
Civil Infrastructure Private Limited (“SCIPL”) for execution of the project: ‘Construction of Academic Block, Hostel,
Residential Tower, Director’s Residence and External Development works at National Institute of Technology, Delhi
Campus on Design, Engineering, Procurement and Construction (EPC-Il) Basis’, awarded by Telecommunications
Consultants India Limited. GCIPL is subject to certain obligations including obtaining necessary permissions from
statutory/ regulatory authorities required for executing the project, ensuring payment of workmen’s compensation,
compliance with applicable labour laws (including laws relating to explosives and safety) etc. The share of SCIPL
and the Company in the Consortium is 51% and 49% respectively.
Arvind Techno Globe Joint Venture: The Company entered into an Agreement dated 25th May 2013 with Arvind
Techno Engineers Private Limited (“ATEPL”) for execution project- ‘Part design and construction of elevated viaduct
and two elevated stations viz Johri Enclave and Shiv Vihar stations including architectural finishing, water supply,
sanitary installation and drainage works of stations from chainage 55,121.184 m to 57,357. 623 m of line 7 Mukundpur-
Yamuna Vihar corridor Contract “CC - 41” of Phase-III Delhi MRTS’, awarded by Delhi Metro Rail Corporation Limited.
The share of ATEPL and the Company is 60% and 40%, respectively.
KSMB Globe Projects (jv) : The Company entered into a Joint Venture Agreement dated 24th January 2024 with
K.S.M. Bashir Mohammad & Sons (“KSMB”) for the purpose of bidding and execution of the project: Development of
New Civil Enclave at Agra Airport- Construction of New Integrated Terminal Building and Allied works on Engineering,
Procurement and Construction (“EPC”) Mode, issued by the Airports Authority of India, New Delhi. The share of KSMB
and the Company in the JV is 98.50% and 1.50%, respectively.
Globe Civil Premier Infra Joint Venture: The Company entered into a Joint Venture Agreement dated 13th September
2019 with Premier Infra Services Private Limited (“PISPL”) for the purpose of bidding and execution of the project:
‘Construction of 3 nos. Railway bridge on Stilt at Ch 144.804 to 145. 524 (Bridge Length 720m), Ch:150.200 to 150.530
(Bridge Length 330m) and Ch 153.285 to 153.909 (Bridge Length 624m) in the Coastal Regulation Zone (CRZ)-I
area of Dahanu Detour in connection with construction of Western Dedicated Freight Corridor Phase-II Vaitarna -
Sachin section”, issued by Ircon International Limited. The share of Company and PISPL in the JV is 61% and 39%,
respectively. The JV Parties shall share the rights and obligations, risk, cost and expenses, etc. arising out of or in
relation to execution of the project in proportion to their share of participation.
SCL GCPL Joint Venture: The Company entered into a Joint Venture Agreement dated 30th June 2022 with Sri SCL
Infratech Limited (“SSIL”) for the purpose of bidding and execution of the project: ‘Undertaking major upgradation
of Railway Station at Nellore in Vijayawada division of South central Railway on Engineering, Procurement and
Construction (epc) Mode’, issued by the Ministry of Railways, Chief Engineer, Construction-III, South Central Railway,
Secunderabad. The share of SSIL and the Company in the JV is 60% and 40%, respectively. The JV Parties are jointly
and severally responsible for all obligations and liabilities relating to the project till the completion of the same.
KSIB GCPPL Joint Venture LLP: The Company entered into LLP agreement dated12th January 2023 with M/s. Keystone
Infra Build- Partnership firm (“KSIB”) for the purpose of bidding and execution of the project: ‘Major upgradation
of Ajni Railway Station in Nagpur Division of Central Railway on Engineering, Procurement and Construction (epc)
Mode’, issued by Rail Land Development Authority, New Delhi. The share of KSIB and the Company in the JV is 74%
and 26%, respectively.
Note No. 52
a) In the opinion of the Management, the value of assets other than fixed assets and non-current investments,
on realization in the ordinary course of business, will not be less than the value at which these are stated in the
Balance Sheet.
b) The company has filed monthly/ quarterly returns or statements of book debts including recoverable against
unbilled revenue, other current assets and inventories lying at various project sites including work in progress
with the lender banks/ financial institutions which are generally in agreement with the books of accounts
however, in the stock statements there is some discrepancy, which are not material.
The following methods and assumptions were used to estimate the fair values:
i) The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other short term
trade receivables and payables which are due to be settled within 12 months are considered to the same as
their fair values, due to short term nature.
ii) The fair value of Security Deposits are calculated based on cash flows discounted using market rate (SBI
rate) available at the beginning of the respective financial year, except long term deposit with government
authority where there is no contractual time frame for cash flow and are of perpetual in nature. They are
classified as level 3 fair values in fair value hierarchy due to the inclusion of unobservable inputs.
iii) The carrying amount of investments and loans given (Asset) are considered to the same as their fair values
as there is no contractual time frame for cash flow and are of perpetual in nature. They are classified as level
3 fair values in fair value hierarchy due to the inclusion of unobservable inputs.
iv) The carrying value of financial assets and liabilities with maturities less than 12 months are considered to be
representative of their fair value.
v) Fair value of financial assets and liabilities carried at amortised cost (including lease obligations) is determined
by discounting the cash flows using a discount rate equivalent to market interest rate applicable to similar
assets and liabilities as at the balance sheet date.
Note No. 54
Capital Management
For the purpose of the company’s capital management, capital includes paid-up 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 ensure that it maintains a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business and maximise shareholder value.
The company manages its capital structure and makes adjustments to it in the light of changes in economic
conditions and the requirements of the financial covenants. Breaches in meeting the financial covenants would
permit the lenders to immediately call loans and borrowings. 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 Debt Equity ratio, which is net debt divided by total equity. Net debt consist
of interest bearing borrowings, interest accrued thereon less cash and cash equivalents. Equity includes equity
attributes to the equity shareholders.
Note No. 55
Financial risk management objectives and policies
The Company’s principal financial liabilities, comprise loans and borrowings, trade and other payables. The main
purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The
Company’s principal financial assets include trade & other receivables and cash and cash equivalents that derive
directly from its operations.
The Company is exposed to credit risk, liquidity risk, foreign currency risk and interest rate risks. The Company’s
senior management oversees the mitigation of these risks. 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 policies for managing each of these risks, which are summarized
below: -
1. 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 of interest rate risk financial instruments affected by market
risk include loans, borrowings and deposits.
2. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company’s borrowings generally are carried at amortized
cost bearing Fixed Rate. They are therefore not subject to interest rate risk as defined in Ind AS 107, since
neither the carrying amount nor the future cash flows will fluctuate on account of a change in market interest
rates.
The Company’s main interest rate risk arise from long term borrowings which are mostly on Fixed Rate basis.
Further the company is maintaining deposits with Banks. Hence the management does not perceive any
material interest risk due to change in interest rate.
The company tries to obtain such facilities on the best possible terms and always compares it with the rate of
interest prevailing in the market and tries to minimize the outflow on the account of interests.
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities and deposits with banks. The Company’s maximum exposure to credit risk is limited to the
carrying amount of the financial assets recognised as at the reporting periods.
a) Trade Receivable
Customer credit is managed by each business unit subject to the Company’s established policies,
procedures and control relating to customer credit risk management. Trade receivables are non-interest
bearing and are generally realised within 12 Months. Credit limits are established for all customers based
on internal assessment. Outstanding customer receivables are regularly monitored.
An impairment analysis is performed at each reporting date on an individual basis for major clients.
In addition, a large number of minor receivables are grouped into homogenous groups and assessed
for impairment collectively. The Company does not hold collateral as security. The Company has
no concentration of credit risk as the customer base is widely distributed both economically and
geographically.
The Company measures the expected credit loss of trade receivables based on historical trend, industry
practices and the business environment in which the entity operates. Loss rates are based on actual
credit loss experience and past trends.
The Company continuously monitors defaults of customers and other counterparties, identified either
individually or by the Company, and incorporates this information into its credit risk controls. The
Company’s policy is to transact only with counterparties who are highly creditworthy which are assessed
based on internal due diligence parameters. In respect of trade receivables, the Company is not exposed
to any significant credit risk exposure to any single counterparty or any group of counterparties having
similar characteristics. Trade receivables consist of a large number of customers in various geographical
areas. Based on historical information about customer default rates management consider the credit
quality of trade receivables that are not past due or impaired to be good.
Few of the customers failed to pay the dues within the agreed terms, the Company is taking appropriate
action to recover the amount. However, based on the Company’s policy company has created a
expected credit loss in the books of accounts of the company.
Provision for ECL has been created in the books as per details given below:
Credit risk from balances with banks and financial institutions is managed by the Company’s finance
department in accordance with the Company’s policy. Investments of surplus funds are made as per
guidelines and within limits approved by Board of Directors. Management reviews and update guidelines,
time to time as per requirement. The guidelines are set to minimize the concentration of risks and
therefore mitigate financial loss through counterparty’s potential failure to make payments.
3. Liquidity Risk
Liquidity risk is defined as a risk that the Company will not be able to settle or meet its obligations on time.
The Company’s treasury department is responsible for liquidity, funding as well as settlement management.
In addition, processes and policies related to such risks are overseen by the Senior Management.
Maturities of financial liabilities
The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their
contractual maturities for all non-derivative financial liabilities.
Note No. 56
First-time Adoption of Indian Accounting Standards (Ind AS)
Background
The Ministry of Corporate Affairs (MCA), Government of India, has notified the Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time, which mandates the adoption of Indian Accounting
Standards (ind AS) for certain classes of companies.
The Company had, for the purpose of Initial Public Offer and preparation of DRHP/ RHP/ Prospectus, prepared
restated standalone financial statements under Ind AS for the financial years ended 31st March 2022, 31st March 2023,
and 31st March 2024, which were approved by the Board of Directors. However, the statutory standalone financial
statements adopted by the shareholders up to 31st March 2024 were prepared in accordance with the Accounting
Standards notified under the Companies (Accounting Standards) Rules, 2006 (referred to as “Previous GAAP”).
Accordingly, the standalone financial statements for the year ended 31st March 2025 are the Company’s first
statutory financial statements prepared in compliance with Ind AS.
Date of Transition to Ind AS
In accordance with Ind AS 101 - First-time Adoption of Indian Accounting Standards, the Company has prepared its
opening Ind AS standalone balance sheet as at 1st April 2023, which is the date of transition. This is the start of the
comparative period presented in these standalone financial statements.
Basis of Preparation
These standalone financial statements have been prepared in accordance with Ind AS notified under the Companies
(Indian Accounting Standards) Rules, 2015 and presentation requirements of Schedule III to the Companies Act,
2013 (as amended).
These are the Company’s first standalone financial statements prepared in accordance with Ind AS. In accordance
with the requirements of Ind AS 101, para 21, these financial statements include:
- Three standalone Balance Sheets: as at 31st March 2025, 31st March 2024 (comparative), and 1st April 2023 (opening);
- Two standalone Statements of Profit and Loss: for the years ended 31st March 2025 and 31st March 2024;
- Two standalone Statements of Changes in Equity: for the years ended 31st March 2025 and 31st March 2024;
- Two standalone Statements of Cash Flows: for the years ended 31st March 2025 and 31st March 2024;
- Related notes, including reconciliations required under Ind AS 101.
Exemptions Availed under Ind AS 101
In preparing these standalone financial statements in accordance with Ind AS 101, the Company has applied the
following optional exemptions and mandatory exceptions from retrospective application of Ind AS:
Optional Exemptions Applied:
- Deemed Cost for Property, Plant and Equipment (Para D7AA of Ind AS 101): The Company has elected to continue
with the carrying values for all items of property, plant and equipment as per Previous GAAP and used the same
as deemed cost under Ind AS on the date of transition.
- Investments in Associates, and Joint Ventures (Para D15(b)(ii) of Ind AS 101): In the standalone financial
statements, the Company has elected to continue with the Previous GAAP carrying amount of these investments
as their deemed cost on the date of transition.
Mandatory Exemptions Applied:
- Estimates (Para 14 of Ind AS 101): Ind AS estimates as at 1st April 2023 are consistent with estimates made for the
same date under Previous GAAP, unless there is objective evidence that those estimates were in error. Ind AS
estimates as at 1st April 2023 are consistent with estimates made for the same date under Previous GAAP, unless
there is objective evidence that those estimates were in error.
- Classification and Measurement of Financial Assets (Para B8 of Ind AS 101): The classification of financial assets
under Ind AS is based on facts and circumstances that existed as at the date of transition.
Reconciliations Required by Ind AS 101
As required by Ind AS 101, the following reconciliations between Previous GAAP and Ind AS have been provided in
the accompanying notes:
- Reconciliation of equity as at 1st April 2023 and 31st March 2024;
- Reconciliation of total comprehensive income for the year ended 31st March 2024;
- Reconciliation of net cash flows for the year ended 31st March 2024 (only if differences arise).
Note No. 57
Notes to Reconciliation on Adoption of Ind AS
The Previous GAAP figures have been reclassified to confirm to Ind AS presentation requirements for the
purpose of this note.
A. Trade Receivables
Under previous GAAP, Company has created provision for Trade Receivables in respect of specific amounts
based on management estimate of recoverability. Under Ind AS, impairment allowance has been determined
based on Lifetime Expected Credit Loss model (ecl) for Trade Receivables.
B. Right of Use Assets, Lease Liability and Security Deposits on Leased Office
Under previous GAAP, Right of Use Asset & corresponding Lease Liability was not recognised on Operating
Leases. Under Ind AS, at commencement date of lease, Company recognizes lease liabilities measured at
present value of lease payments to be made over lease term with corresponding increase in Right-of-Use
assets which are depreciated on a straight-line basis over the shorter of lease term and estimated useful life
of assets.
Under previous GAAP, interest free lease security deposits (that are refundable in cash on completion of
the lease term) are recorded at their transaction value. Under Ind AS, all financial assets are required to be
recognised at fair value. Accordingly, the Company has fair valued these security deposits under Ind AS.
Difference between the fair value and transaction value of the security deposit has been recognised as Right
of Use Asset.
C. Re-Measurement of Defined Benefit Obligation
Both under previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined
benefit plan on an actuarial basis. Under previous GAAP, the entire cost, including actuarial gains and losses,
are charged to profit or loss. Under Ind AS, re-measurements i.e. actuarial gains and losses and the return
on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are
recognised in balance sheet through other comprehensive income. The related tax expense has also been
reclassified from Profit and loss account to other comprehensive income. There is no impact on the total
equity as at 1st April 2023 & 31st March 2024.
D. Fair Valuation of Financial Assets & Liabilities
On transition to Ind AS, the Company has evaluated its financial assets and financial liabilities in accordance
with Ind AS 109 - Financial Instruments. The following items, previously carried at historical cost under previous
GAAP, have been fair valued:
Loans (Financial Assets/ Liabilities)
Loans are initially recognized at fair value and subsequently measured at amortized cost using the Effective
Interest Rate (eir) method. On transition date, the difference between the fair value and transaction value of
loans (especially interest-free or below-market interest rate loans) has been recognized as prepaid expense
and adjustment to Retained Earnings for the cumulative impact.
Security Deposits & Retention Money
Security deposits & Retention Money paid/received (interest-free or at off-market rates) have been recognized
at their present value on the transition date. The difference between the transaction amount and present value
represents as an embedded expense for deposits paid and as an embedded liability for deposits received.
Subsequent unwinding is recognized as finance income/ expense over the term of the deposit.
E. Deferred Tax
Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on
differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account
for deferred taxes using the balance sheet approach, which focuses on temporary differences between the
carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12,
approach has resulted in recognition of deferred tax on new temporary differences which was not required
under Previous GAAP.
F. Retained Earnings
Retained Earnings as at 1st April 2023 have been adjusted consequent to the above Ind AS transition
adjustments.
G. Other Comprehensive Income
Under previous GAAP, the Company has not presented Other Comprehensive Income (oci) separately. Hence,
it has reconciled previous GAAP profit to profit as per Ind AS. Further, Indian GAAP profit is reconciled to Total
Comprehensive Income as per Ind AS.
Note No. 59
Subsequent Events after the reporting period
Initial Public Offering and Listing on Stock Exchange
Subsequent to the reporting date, the Company successfully completed its Initial Public Offering (IPO) and was
listed on the BSE and NSE on 1st July 2025.
Pursuant to the IPO, the Company issued 1,67,60,560 equity shares of t 10 each at a price of t 71 per share (including
share premium of t 61 per share), aggregating to t 1190.00 million.
The proceeds from the IPO will be utilized for the purposes disclosed in the prospectus, including Working Capital,
Capital Expenditure and General Corporate purpose.
This event is classified as a non-adjusting event under Ind AS 10 - Events after the Reporting Period, as it does not
provide evidence of conditions that existed as at 31st March 2025. However, it is considered a material event and is
therefore disclosed in the financial statements.
Note No. 60
Material regrouping/ reclassification
Appropriate regrouping/reclassification have been made in the Balance sheet, Statement of Profit and Loss
(including Other Comprehensive Income) and Statement of Cash flows, wherever required, by reclassification of
the corresponding items of income, expenses, assets, liabilities and cash flows, in order to bring them in line with the
accounting policies and classification in accordance with Schedule III (Division Il) of the Act and the requirements
of Ind AS 1 - “Presentation of financial statements’ and other applicable Ind AS”.
For Jagdish Chand & Co. For and on behalf of the Board of Directors
Chartered Accountants GLOBE CIVIL PROJECTS LIMITED
Firm Registration Number: 000129N (Formerly Globe Civil Projects Private Limited)
Sd/- Sd/- Sd/- Sd/- Sd/-
Santosh Kumar Jha Vipul Khurana Nipun Khurana Raghav Aggarwal Vineet Rattan
Partner Managing Director Managing Director Chief Financial Officer Company Secretary
Membership No. 532638 DIN-00513522 DIN-00513517 ICAI Membership ICSI Membership
No:414654 No: F11724
Date: 21st July 2025 Date: 21st July 2025
Place: New Delhi Place: New Delhi
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