u Provisions, contingent Liabilities and Contingent Assets

Provisions are recognised only when

(i) the Company has a present obligation (legal or constructive) as a result of a past event; (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(ii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows.

Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible. Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

v Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as at the date of Balance Sheet.

34 As per Ind AS 109 "Financial Instrument" the company is required to consider "Provision for Expected Credit Loss” on all financial assets on the basis of expected probability of recoverability of such financial instrument. During the period ended on 31st March, 2024 total outstanding receivables for more than 365 days are 534.07 Lakhs, the company has provided Rs. 182.18 Lakhs towards Expected Credit Loss in the financial statement out of which the company has provided for the Expected credit loss of Rs. 72.74 Lakhs through the reserves and surplus of the company and rest amount of Rs. 109.44 Lakhs has been provided through profit and loss account

35 The Company had entered in to Joint Venture with M/s SD Corporation on 13th February, 202 3 where in company holds majority stake. However, due to non-generation of any business and not seeing any bright future the Joint venture was revoked on 6th June, 202 3, as SD Corporation could not generate any business so it was agreed upon in the cancellation agreement dated 6th June, 2023 that the amount of Rs. 350 Lakhs invested in the joint venture has been recovered fully during year ended March, 2024

³⁶ The company has made a strategic investment as approved in the AGM dated 21^st September 2023 of an amount of Rs. 355 Lakhs in M/s Race Envision Pvt. Ltd. in which the company sees great opportunities. The investment has been made through rights issue

42 In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

43 The business operations of Corporate Office premises are conducted on a sub-leased premises. Our inability to continue operating from such premises, or to seek renewal or extension of such leases may materially affect our business operations.Corporate Office is located at 1616, WTT Building, 16th Floor, Sector 16, Noida, Uttar Pradesh - 201301 wherein the company has brought out the said premises by paying the sales consideration to the ET Infra Developers Private Limited. However, as per the original lease agreement dated August 03, 2010 is required to enter into a sub-lease agreement with the company till the registration of ownership is registered with the Nodia Government. Hence, the Company has entered into a sub-lease agreement with ET necessary stamp duty on the above mentioned premises and also notarized the said sub-lease agreement. However, the ownership of the above mentioned premises yet to be registered in the name of the Company as the stamp duty payment and other formalities related to the title transfer is to be completed at the Lessor’s end.

In necessary formalities with the Nodia Government for the company to claim the ownership on above mentioned premises. Further, the Company has obtained various secured loans from Bank of India. In this regards, corporate office is mortgaged and hypothecated with Bank of India. Thought, our company repays the secured loan amount in a timely manner as per the terms and conditions of the loan agreement and have provided all the necessary documents relating to the sub-lease agreement, stamp-duty payment, possession letter as provided

44 The Company is engaged primarily in business of EPC Contracting and accordingly there are no separate reportable segments as per Indian Accounting standards (Ind AS) 108 dealing with the segment reporting

45 Financial Risk Management objectives and policies:

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the Managing Board.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , receivables, payables and loans and borrowings.

i Market Risk (Interest rate risk):

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates

According to the Company’s interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year. A 0.50% increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

47 Additional Regulatory Information

The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the extent applicable:

i. Title deeds of immovable property other than proper taken on lease by duly executed lease agreement are held in the name of the company.

ii. During the year there has been no change in the aggregate of the net carrying value of assets on account of revaluation in respect of Property, Plant & Equipment and intangible assets.

iii. There are no intangible assets under development in the Company during the current reporting period.

iv. No proceedings have been initiated or pending against the company for holding any benami property under the Benami transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder

v. The company does have borrowings from banks against the security of current assets.

vi. The Company has not been declared as a willful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

vii. The company has not entered in to any transaction with companies struck off under section 248 of the Companies Act,2013.

viii. There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

ix. The borrowing taken by the company from the banks has been used for the specific purpose for which it was taken at the balance sheet date.

x. There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account

The accompanying notes 1 to 45 are integral part of the financial statements In terms of our report attached

For Hiren Buch Associates For and on behalf of Board of Directors

Chartered Accountants FRN : 116131W

Sd/- ^Sd/- ^Sd/-

Shantanu Srivastava Neelam ^G0^uPfa^{Executive Divya}

?^d,‘ — . ... Managing Director &CEO Djrff^n&.CFO , Comply ^Secretary

^Sandeep ^Chaturvedi D_{IN No} 000₂₂₆₆₂ ^{DIN No 05823562} M.No. A68457

_Partner ^{DIN No.00022662}

^{D no}- ¹⁵⁴²⁴⁸ Place : New Delhi Place : New Delhi Place : New Delhi

Place : New New Delhi Date : 04.07.2024 Date : 04.07.2024 Date : 04.07.2024

Date : 04.07.2024