p. Provisions and Contingencies

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, 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. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. 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 provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established,

the Company recognises any impairment loss on the assets associated with that contract.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements. Provisions and contingent liability are reviewed at each balance sheet.

q. Related party transactions

The transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the period-end are unsecured and settlement occurs in cash or credit as per the terms of the arrangement. Impairment assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

r. Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

• estimated amount of contracts remaining to be executed on capital account and not provided for;

• uncalled liability on shares and other investments partly paid;

• funding related commitment to subsidiary, associate and joint venture companies; and

• other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management. Other commitments related to sales/ procurements made in the normal course of business are not disclosed to avoid excessive details.

s. Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as fresh issue, bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity shares holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

t. Investments in Subsidiaries, Associates and Joint Ventures

A subsidiary is an entity that is controlled by another entity.

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The Company's investments in its subsidiaries, associates and joint ventures are accounted at cost less impairment.

Impairment of Investments

The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is recorded in the Statement of Profit and Loss

When an impairment loss subsequently reverses, the carrying amount of the Investment is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the cost of the Investment. A reversal of an impairment loss is recognised immediately in Statement of Profit or Loss

u. Changes in accounting policies and disclosures

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to

Notes:

a) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member other than mentioned in receivable from related party (refer note 44).

b) Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days for construction contracts, payment is generally due upon completion of milestone as per terms of contract. In certain contracts, short term advances are received before the performance obligation is satisfied.

c) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables and contract assets. The Company follows the simplified approach for recognition of impairment allowance on trade receivables and contract assets. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) recognised during the period is recognised in the Statement of Profit and Loss. This amount is reflected under the head 'other expenses' in the Statement of Profit and Loss.

Previous year note:

d) In FY 2022-23, the promoter group has entered into an agreement with Company by which any shortfall in the realisation by 30th September 2023, against the outstanding carrying value of INR 2,746.53 Lakhs from certain parties shall be made good to the Company. The said carrying value includes trade receivable of INR 1,440.84 Lakhs and contract asset of INR 1,305.69 Lakhs as on balance sheet date. Considering the same, in previous year trade receivable and contract asset of the said parties as on the balance sheet date has been considered secured and good.

(b) Term loan from bank carries interest ranging between 8.08% p.a. to 13.75% p.a. (Previous year : 7.40% p.a. to 14.70% p.a.). These loans are repayable in 36 to 60 months with structured monthly instalments ranging between INR 0.25 Lakhs to INR 196.68 Lakhs each along with interest, from the date of loan. These loans are secured by hypothecation of respective equipment's/vehicles against which these loans are taken with additional mortgage / charge aggregating to an amount of INR 23,451.99 Lakhs (March 31, 2023 INR 14,195.76.04 Lakhs), on the plant and machinery and formwork placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by the personal guarantee of Mr. Rohit Katyal (Director) and Mr. Rahul Katyal (Director) of the Company.

(c) Term loan from financial institutions carries interest ranging between 10.00% to 12.71% p.a (Previous year : 8.00% p.a. to 12.50% p.a.). These loans are repayable in 24 to 180 months with structured monthly instalments ranging between INR 0.12 Lakhs to INR 14.00 Lakhs each along with interest, from the date of loan. These loans are secured by hypothecation of respective equipment's against which these loans are taken with additional mortgage / charge aggregating to an amount of INR 6,046.37 Lakhs (March 31, 2023 INR 15,297.44 Lakhs) on the plant and machinery placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by the personal guarantee of Mr. Rohit Katyal (Director) and Mr. Rahul Katyal (Director) of the Company.

(d) Working capital loan from banks is secured against Mortgage of fixed assets and Hypothecation of inventory, trade receivables, and other current assets on pari passu basis with other member banks in the consortium. The working capital loan is repayable on demand and carries interest range between 6 Month to 1 year MCLR 2.50% to 6.50% presently, in range of 10% p.a. to 14.00% p.a.

(e) Mr. Rohit Katyal indemnified the value of trade receivables to the extent of INR 550 lakhs in respect of Tridhatu group.

(f) ICD carries interest Rate of 12.00% p.a. The principal amount is repayable within 6 months from date of first disbursement. These deposits are secured against guarantee of Mr. Rohit Katyal (Director) and Mr. Rahul Katyal (Director) of the Company.

(g) The Company has satisfied all the covenants prescribed in the terms of borrowings, except for Redeemable non convertible debentures which has been fully repaid during the year.

(h) In previous year,

loan from directors are unsecured and subject to the guarantees provided by Mr. Rohit Katyal and Rahul Katyal in respect of outstanding trade receivable as covered in note 9. The loan will get adjusted to the extent of short fall in recovery of the specified trade receivable before September 30, 2023.

(i) The Company has been sanctioned working capital limits in excess of INR Five crores in aggregate from banks during the year on the basis of security of current assets of the Company. The quarterly returns / statements filed by the Company with such banks are not in agreement with the books of account of the Company.

The Company is exposed to the following Risks in the defined benefits plans :

Investment risk: The present value of the defined benefit obligation is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan assets is below this rate, it will create a plan deficit.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by increase in the return on the plan's debt investments.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary growth risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have abearing on the plan's liability.

Compensated absences (unfunded)

In respect of Compensated absences, accrual is made on the basis of a year-end actuarial valuation. the Company has provided for compensated absences based on the actuarial valuation done as per Project Unit Credit Method. The leave obligation cover the Company's liability for earned leave. The amount of the provision of INR 78.87 lakh (31 March 2023: INR 66.63 lakh) is presented as current. The Company has provided INR 12.24 lakh (31 March 2023: INR 31.92 lakh) for Compensated absences in the Statement of Profit and Loss.\

Note:

a) During the year, promoters has indemnified against certain receivables. As at year end promoters indemnity against receivable is INR 550.00 Lakhs.

b) Refer note 19 for personal guarantee provided by promoters created in respect of borrowing by the Company.

c) Refer note 41 for performance guarantee on behalf of the associate entity.

45 Significant accounting judgements, estimates and assumptions

The preparation of the Company's standalone financial statements requires management to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The 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 if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

Key sources of estimation uncertainty

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 recognised in the standalone financial statements:

i) Project revenue and costs

The Company recognises revenue and profit/loss on the basis of (Input method) entity's efforts i.e. costs incurred on an accrual basis to the total expected inputs to the satisfaction of that performance obligation. The recognition of revenue and profit/loss therefore rely on estimates in relation to total estimated costs of each contract. Cost contingencies are included in these estimates to take into account specific uncertain risks, or disputed claims against the Company, arising within each contract. These contingencies are reviewed by the Management on a regular basis throughout the contract life and adjusted where appropriate The revenue on contracts may also include variable consideration (variations and claims). Variable consideration is recognised when the recovery of such consideration is highly probable. Also read with note 3(c).

ii) Cost to complete

For assessing onerous contracts the Company is required to estimate the costs to complete of each contract. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

iii) Impairment of financial assets and contract assets

The Company's Management reviews periodically items classified as receivables and contract assets to assess whether a provision for impairment should be recorded in the statement of profit and loss. Management estimates the amount and timing of future cash flows when determining the level of provisions required. Such estimates are necessarily based on assumptions about several factors involving varying degrees of judgement and uncertainty. Details of impairment provision on contract assets and trade receivable are given in Note 9.

The Company reviews its carrying value of investments annually, or more frequently when there is indication for impairment. If the recoverable amount is less than it's carrying amount, the impairment loss is accounted for. Also read with note 3(g).

vi) Litigations

From time to time, the Company is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made, and the amount of the loss can be reasonably estimated. Significant judgement is made when evaluating, among other factors, the probability of unfavourable outcome and the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions are reviewed at each Balance Sheet date and revisions made for the changes in facts and circumstances. Litigations and contingent liabilities are disclosed in note 41.

v) Defined benefit plans

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. 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 and mortality rates (refer note 3(j)). All assumptions are reviewed at each Balance Sheet date.

vi) Useful lives of property, plant and equipment, investment property and intangible assets

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The Company reviews the useful life of property, plant and equipment, investment property and intangible assets as at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.Useful lives are based on Schedule II of Companies Act and where the same is different, the Company has technical opinion for the same. Further, the useful life estimate is consistently being followed year-on-year. Also read with note 3(d).

vii) Operating lease commitments - Company as lessee

The Company has entered into leases for office premises. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the office premises and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases. Also read with refer note 3(o).

46 Disclosures on Financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in accounting policies, to the financial statements.

(A) Fair Values:

The following tables presents the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2024 and 31 March 2023.

Fair value of financial assets and financial liabilities measured at amortised cost:

The carrying amounts of trade receivables, loans, advances and cash and other bank balances are considered to be the same as their fair values due to their short term nature. The carrying amounts of trade and other payables are considered to be the same as their fair values due to their short term nature. The carrying amounts of interest bearing borrowings are considered to be close to the fair value.

The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by valuation techniques.

Level 1 — Quoted (unadjusted) market prices inactive markets for identical assets or liabilities;

Level 2 — Valuation techniques for which the lowest level input that is significant to the fairvalue measurement is directly or indirectly observable;

Level 3 — Valuation techniques for which the lowest level input that is significant to the fairvalue measurement is unobservable.

There has been no transfers between level 1 & level 2 during the year.

M Revenue from Contracts with Customers

1. Principal revenue generating activities

The Company is primarily engaged in the business of Engineering, Procurement and Construction. The Company measures progress and recognizes revenue over time contracts using the input method, based on the actual cost of work performed at end of the reporting period as a percentage of the estimated total contract costs at completion. The input method faithfully depicts the Company's performance in transferring control of goods and services to the customer, provides meaningful information in respect of satisfied and unsatisfied performance obligation towards the customer.

Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days. Trade receivables are reduced by provision for expected credit losses.

Contract assets is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. For each contract, the revenue recognized at the contract's measure of progress using input method, after deducting the progress payment received or receivable from the customers, is presented within the contract assets line item in the balance sheet as project excess cost.

A contract liability is the obligation to transfer goods or service to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer.

The Company's contracts may result in recognising revenue in excess of billings done as "Project excess costs” on balance sheet under Contract Asset. The company's contract may also result in recognising revenue less than the amounts billed to the customer, which is classified as "Billings in excess of costs and estimated earnings” on the balance sheet under contract liabilities.

I. There is no reconciliation of the amount of revenue recognised in the statement of profit and loss with the contracted price since there is no adjustment such as discount,liquidated damages etc.

II. Transaction price allocated to the remaining performance obligations

The aggregate value of transaction price allocated to unsatisfied or partially satisfied performance obligation is INR 8,74,253.36 Lakhs as at 31 March 2024, (INR 9,27,715.68 Lakhs as at 31 March 2023) out of which part of performance obligation is expected to be recognised as revenue in next year and balance thereafter. The unsatisfied or partially satisfied performance obligations are subject to variability due to several commercial and economic factors.

The Company's operations are mainly confined in India. The Company does not have earnings from business segment outside India. As such, there are no reportable geographical segments.

48 Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximise the shareholder value.

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, interest bearing loans and borrowings, less cash and cash equivalents. The Company is not subject to any externally imposed capital requirements.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year, except for Redeemable non convertible debentures which has been fully repaid during the year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

49 Financial risk management objectives and policies

The Company's principal financial liabilities comprise borrowings, trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company's operations. The Company's principal financial assets include trade and other receivables, cash and cash equivalents, other bank balances and other financial assets that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Company's senior management is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified measured and managed in accordance with the Company's policies and risk objectives.The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A) 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 and price risk. Financial instruments affected by market risk include borrowings and FVTPL Investments.

a) 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 exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings.

b) Interest rate sensitivity:

The sensitivity analysis below have been determined based on exposure to interest rates for long-term debt obligations with floating interest rates at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates.

B) Price Risk

The Company's exposure to other risks arises from investments in equity shares amounting to INR 8.5 Lakhs (Previous Year INR 8.5 Lakhs). The investments are held for strategic rather than trading purpose.

The sensitivity analysis has been determined based on the exposure to price risk at the end of the reporting period. If the prices of the above instruments had been 5% higher/lower, profit for the year ended 31 March 2024 would increase/ decrease by INR 0.04 Lakhs (Previous year by INR 0.04 Lakhs).

C) 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 contract assets) and from its financing activities, including deposits with banks and financial institutions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on Companies internal assessment.

Trade receivables

The major exposure to credit risk at the reporting date is primarily from trade receivables and unbilled receivables. The Company's customer profile includes mainly large private corporates and government bodies. The Company's average project execution cycle is around 36 to 48 months. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Unbilled revenue (Contract assets)

The costs incurred on projects are regularly monitored through the Project budgets. Costs which are incurred beyond the agreed terms and conditions of the contract, would be claimed from the customer, based on the actual works performed. The realisability of such claims, is verified by professionals, who certify the tenability of such claims and also the collectible amounts, by applying appropriate probabilities. Costs, which are identified as non tenable or costs beyond the collectible amounts, as mentioned above, would be provided in the books of accounts.

For trade receivables and contract assets, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and contract assets.

52 Reclassification of Previous Year Financial

Certain prior year amounts have been reclassified for consistency with the current year presentation .These reclassification are mere balance sheet to balance sheet movement which does not affect the networth of the Company. These reclassification had no effect on the reported net profit for the year ended 31 March 2023 and are inconsequential to the readers of the financials nor it triggers the restatement of financials as per Ind AS 8. Further, it does not effect the decision making process of the Company. An adjustment has been made to the Standalone Balance Sheet and Standalone Statements of Cash Flows for year ended 31 March 2023, as follows:

a) Reclassified Capital advances to Capital work-in-progress by INR 1,409.62 Lakhs (Capital work-in-progress INR 2,017.63 Lakhs from INR 608.01 Lakhs and Other Non-current assets INR 6,277.44 Lakhs from INR 7,687.06 Lakhs).

b) Disclosed Contract assets on the face of balance sheet, which was earlier disclosed under Current assets by INR 92,383.91 Lakhs (Other financial current assets INR 3,482.08 Lakhs from INR 95,865.99 Lakhs).

c) Disclosed Contract liabilities on the face of balance sheet, which was earlier disclosed under Non-current liabilities by INR 13,172.58 Lakhs (Other financial Non-current liabilities INR Nil from INR 13,172.58 Lakhs).

d) Disclosed Contract liabilities on the face of balance sheet, which was earlier disclosed under Current liabilities by INR 17,862.73 Lakhs (Other financial Current liabilities INR 5,119.26 Lakhs from INR 22,981.99 Lakhs).

e) Disclosed Deposits with Original maturity more than 3 months but remaining maturity less than 3 months disclosed under Bank balances other than Cash and cash equivalents by INR 1,818.00 Lakhs (Cash and cash quivalent INR 2,047.91 Lakhs from INR 3,865.91 Lakhs and Bank balances INR 14,567.74 Lakhs from INR 12,749,74 Lakhs).

f) Reclassified Income tax receivable as net of Current tax liabilities, which was earlier disclosed under Other Non-current assets by INR 1,177.63 Lakhs (Other current asset INR 14,150.34 Lakhs from INR 15,327.97 Lakhs and Current tax liabilities INR 876.40 Lakhs from INR 2,054.03 Lakhs.

g) Reclassified interest accrued and due on borrowings from Other current financial liabilities to Current borrowings by INR 360.74 Lakhs (Current borrowing INR 25,781.54 Lakhs from INR 25,420.80 Lakhs and Other current financial liabilities INR 5,483.23 Lakhs from INR 5,843.97 Lakhs).

h) Consequential changes in cash flow statement was done due to above reclassification.

53 Impairment of Investments

Since the carrying value of the investment is lower than the fair value of investment, the Company has recognised an impairment loss on its investments made in CIPL PPSL Yongnam Joint Venture Construction Private Limited, a wholly owned subsidiary of the Company, of INR 379.58 lakhs (31 March 2023: INR 90.67 lakhs).

54 The Code on Social Security,2020 ('Code') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The said code is made effective prospectively from 03 May 2023. The Company is assessing the impact, if any, of the Code

55 The Company had long outstanding Trade Receivables of INR 1,155.93 Lakhs recoverable from one party which was written off as Bad-debts/Provided as Expected Credit Loss Allowance in the earlier periods. National Company Law Tribunal, Amaravati Bench (AP), appointed Resolution Professional (RP) relating to settlement of said Receivable and RP has approved an amount of INR 1,155.93 Lakhs against Company's claim of INR 1,583.14 Lakhs. Considering this fact and currently the Company is in the process of getting the settlement done and to recover the said amount immediately post the settlement agreement and accordingly it has recorded the recovery of said receivables by giving effect in Other Income/Expected Credit Loss Allowance during the year ended 31 March 2024 based on future recoverability projections. The Statutory Auditors have expressed modified opinion in respect of this matter.

56 Against certain trade receivables, other exposures and contract assets amounting to INR 6,761.76 Lakhs as on 31 March 2024, the Company has entered into agreements with respective clients and got allotment letter in its favor. The Company has taken legal steps to register the flats in its name including enforcement of available security to recover amount and secure its commercial interest. The outcome of such legal action is not ascertainable at present. The management is confident of its recoverability in due course and hence no further provision is required in these audited Standalone financial statements.

57 The Company has migrated to Strategic ERP accounting software from BuildSmart during the year (w.e.f 1 October 2023). The audit trail feature in respect of the legacy accounting software (i.e. BuildSmart) is not enabled. Accordingly, the recording of audit trail (edit log) facility, its operation throughout the period for all relevant transactions recorded in the software and tampering of audit trail feature cannot be assessed. The new accounting software (i.e., Strategic ERP) used for maintaining its books of account has a feature of recording audit trail (edit log) facility and the same has operated throughout the period for all relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with in respect of new accounting software.

(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 of invested in Crypto currency or Virtual currency during the financial year.

(v) The Company have not advanced or loaned or invested fund to any other person (s) or entity (ies), including foreign entities (intermediaries) with the understanding that 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) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have 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) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company did 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 complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and the Companies Act, 2013 for the above transactions and the transactions are not violative of the Prevention of MoneyLaundering Act, 2002 (15 of 2003)

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

60 Previous year figures

The figures for the corresponding previous year have been regrouped / reclassified whenever necessary, to make them comparable. (also refer note 52)

As per our report of even date attached For and on behalf of the Board of Directors

For S R B C & CO LLP Capacit'e Infraprojects Limited

Chartered Accountants CIN - L45400MH2012PLC234318

ICAI Firm Registration No: 324982E/E300003

per Jai Prakash Yadav Rahul Katyal Rohit Katyal

Partner Managing Director Executive Director

Membership No: 066943 DIN: 00253046 DIN: 00252944

Rajesh Das Rahul Kapur

Chief Financial Officer Company Secretary

Membership No : A52093

Place: Mumbai Place: Mumbai

Date: 28 May 2024 Date: 28 May 2024