Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of '5/- each. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the year Company has increased authorised equity share capital. The total authorised equity share capital at the end of the year was '2500 lakhs dividend in 5,00,00,000 shares of '5/- each fully paid-up.

During the year Company has issued 1,68,00,000 equity shares of '10/- each as bonus shares in the ratio of 15 (fifteen) bonus equity shares of '10/- each fully paid for every 1 (one) existing Equity shares of '10/- each fully paid up by capitalising the Share premium and retained earning.

The Company has split the share from '10/- per share to '5/- per share resulting in total 1,79,20,000 shares at '5/-by the said split of shares.

The Company has issued 10,00,000 equity shares of '5/-each as preferential allotment shares fully paid at premium of '103/- per share during the year.

The Company has raised funds through Initial Public Offers by issuing 1,31,60,000 shares of '5/- per share at a premium of '139/- per share by listing its securities on BSE-SME platform.

The total equity share capital at the end of the financial year is '2,500 lakhs divided in 5,00,00,000 shares of '5/-each fully paid up.

Details of convertible securities:

The Company has not issued any securities convertible into equity or preference shares.

Share Holders Holding More Than 5% Equity Shares In The Company:

As per records of the Company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

The Company has no holding Company.

Reserve and Surplus:

During the year, the Company has issued 1,68,00,000 bonus equity shares of Face value of '10/- each to the existing equity share holders in the ratio of 15:1 i.e. 15 bonus shares for every 1 existing equity shares out of the credit balance of accumulated securities premium amounted to '288 lakhs and free reserves amounted to '1,392 lakhs.

The amount adjusted against securities premium represents writing off of expenses on Initial public offer of equity shares (IPO) amounted to '162.80 lakhs.

During the F.Y. 2021-22, Company has received the non-refundable government grant of '40 lakhs on capital assets i.e., machinery. The said machinery was purchased in FY 2020-21. The management of the Company has decided to recognize the grant as deferred income, the same is recognized as income in the profit & loss account on systematic basis considering the useful life of the respective machinery. During the year management of Company has recognized the amount of proportionate deferred government grant to profit and loss account pertaining to F.Y. 2023-24. '26.67 lakhs is recognized as non-current liability since the management of the Company has expected not to recognize this amount within next 12 months after end of the reporting period. '2.67 lakhs is recognized as current liability which the Company has expected to recognize within 12 months from the end of the reporting period.

Short Term Borrowings

The Company has taken the Cash credit facilities from State Bank of India for '2,100.00 lakhs ('1,100.00 lakhs) and Bank Guarantee and Letter of credit for '550.00 lakhs ('550.00 lakhs) which is secured by first pari passu charge on all current assets primarily Stock and Book debts. The said working capital facility has been reviewed during the year. The rate of interest on the working capital facility from bank is 11.65% (9.25% p.a.) calculated on daily products on monthly rests. However the rate of interest is 2.50% over and above the EBLR i.e. 9.15% which was covered under the working capital facility. The same is further secured by collateral securities of commercial and residential immovable properties of the Company and director and family members of the Directors, The borrowings are further secured by personal guarantee of Directors and family members of directors.

Sundry Creditors Covered Under MSMED Act, 2006:

Sundry creditors covered under MSMED Act, 2006 are those creditors who are outstanding at the balance sheet date. Out of which creditors due for more than 45 days as on the balance sheet date are '73.11 lakhs ('0.93 lakhs). The Company has not provided interest on the same as per MSMED Act, 2006.

Amount due to Micro, Small and Medium Enterprises as on March 31, 2024 (March 31, 2023) are disclosed on the basis of information available with the Company regarding status of the suppliers is as follows:

Advance for property includes '547.25 lakhs paid to Mukesh Engineering Industries during FY 2015-16 & 2016-17 and due to the dispute with the party the Company has filed arbitration and as per arbitration award dated September 17, 2019 the said party was required to pay this amount along with interest thereon as awarded by the arbitrator. Presently the matter has been litigated and pending before Hon. Gujarat High Court.

Trade Receivables:

Sundry debtors are trade receivables which are due in respect of goods sold in the normal course of the business. the debtors outstanding for more than 6 months are those debtors which are outstanding for more than 6 months as on the date of balance sheet but all of them are good as reviewed by the management.

33. Operating leases Premises

The Company has taken guest house on rent for accommodation of its fault rectification team, vehicles for the purpose of movement of its fault rectification team, machinery, premises located at Dabhasa, and its head office located at KP House, Surat under cancellable operating leases. Each renewal is at the option of lessee. There are no restrictions placed upon the Company by entering into these leases. The total rental expenses during the period is '342.43 lakhs ('91.53 lakhs) debited in the statement of profit and loss.

35. Segmental Reporting

The Company is operating in single geographical area i.e. Gujarat therefore, it is not identifiable as reportable geographical segment. The Company has engaged in business of galvanisation of structures as well as it is engaged in providing services of fault rectification team, Patrolling of Optical Fiber Cables, Site Clearance Work, Solar Roof-top installation, Sale of solar electricity, EPC, Mobile tower Manufacturing and Turnkey Service Provider to Mobile and Renewable Energy Industry. Therefore, there can be different segments identifiable on the basis of business activities. However, as per the financial records the total external revenue of the Company is '34,904.86 lakhs whereas the total revenue from the sale of services is '2,165.12 lakhs. Thus, the revenue from the sale of services is less than 10% of the total revenue of both the segments. Further as per the financial data and other information available, the net result of sales of services is also less than 10% of the total result of both the products. Hence the sale of services is not identifiable as reportable business segment in view of the provisions of para 27 to 29 of AS-17, "Segment Reporting”. Therefore, no segment reporting is given.

37. Cash Flow Statement:

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

38. Based on the information available with the Company, the Company has total dues of '1455.04 lakhs ('175.78 lakhs) as on March 31, 2024 (March 31, 2023) to MSMEs registered under the Micro, Small and medium Enterprises Development Act, 2006. Out of the same '73.11 lakhs ('0.93 lakhs) are outstanding at the year-end for more than 45 days on which interest has not been provided as prescribed under MSMED Act, 2006.

39. Disclosure required U/S. 186(4) of The Companies Act, 2013

For details of loans and guarantees given to and given by related parties, refer Note no. 36.

For details of securities provided by the related parties, refer Note No. 5 & 36.

40. Defined Contribution Plan

Defined Benefit Plans/Obligation (DBO):

The Company operates a defined benefit plan (the Gratuity plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment.

The Company has a defined benefit gratuity plan (unfunded) and is governed by the Payment of Gratuity Act, 1972. Under the Act, every employee who has completed at least five years of service is entitled to gratuity benefits on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is unfunded.

Sensitivity Analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The results of sensitivity analysis is given below:

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the Defined Benefit Obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the Defined Benefit Obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the Defined Benefit Obligation as recognised in the balance sheet.

There is no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The contribution to a Section 8 Company controlled by the Company has been used for following activities:

i. Promoting Education.

ii. Promoting health care including preventive health care.

iii. Setting up homes and hostels for women and orphans.

iv. Setting up old age homes, day care centers and such other facilities for senior citizens.

v. Welfare of the schedule caste, tribes, other backward classes, minorities and women.

42. The Code on Social Security, 2020

The Code on Social Security 2020 ('Code') has been notified in the Official Gazette on September 29, 2020. The Code is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which the said Code becomes effective and the rules framed thereunder are notified.

43. Contingent Liabilities

The Company has not provided for any contingent liability in Standalone Financial Statements.

The Company has paid advance for property of '547.25 lakhs to Mukesh Engineering Industries during FY16 and FY17 and due to the dispute with the party, the Company

has filed arbitration and as per the arbitration award dated September 17, 2019 the said party was required to pay this amount along with interest thereon as awarded by the arbitrator. Presently the matter has been litigated and pending before Hon'ble Gujarat High Court.

44. Additional information pursuant to the provisions of Schedule III of The Companies Act, 2013

a. Title deeds of Immovable Property not held in name of the Holding Company:

During the year, the Company has not

owned any immovable properties whose title deeds are not held in the name of the Company.

b. During the year, Holding Company has not revalued any Property, Plant and Equipment.

c. Details of Benami Property held and the proceedings under the Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder:

During the year, there is no such proceedings have been initiated or pending as on the date of balance sheet, against the Holding Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder.

d. Borrowings on security of current asset:

The Company has been sanctioned working capital limits in excess of five crores rupees in aggregate from banks and financial institutions on the basis of security of current assets of the Company. The quarterly returns/statements filed by the Company with such banks/financial institutions in respect of gross value of primary securities, are in agreement with the books of accounts of the Company except for the quarter ended on December 31, 2023 and the details of which are as follows along with the reconciliation.

e. During the year, none of the companies of the Group was declared as wilful defaulter by any bank or financial Institution or other lender.

f. Based on the information available with the companies, there are no transactions with struck off companies.

g. Registration of charges or satisfaction with Registrar of Companies:

All the charges or satisfactions are duly registered with registrar of companies.

h. The Company has one subsidiary in India. As per the provisions of the proviso the sub-rule (1) of the Companies (Restriction on number of Layers) Rules, 2017 (as amended), and accordingly, the Company is in compliance with the number of layers as prescribed under the provisions of the clause (87) of Section 2 of the Companies Act, 2013.

i. The Company does not have any such transactions which are not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessment under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of The Income Tax Act, 1961).

k. During the year, no scheme of Arrangements has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013.

l. A) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other

sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries).

B) The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the funding party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

s. Undisclosed Income:

During the year, there are no transactions which are not recorded in the books of accounts that has been surrendered or disclosed as income in the Tax Assessment under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

t. Details of Crypto Currency or Virtual Currency:

During the year, the Group has not traded or invested in ant Crypto Currency or Virtual Currency and hence not applicable.

45. Events occurring after the Balance sheet date

The Company evaluates events and transactions that occur subsequent to the balance sheet date but prior to approval of the Standalone Financial Statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the Standalone Financial Statements. As of April 19, 2024, there are no subsequent events to be recognized or reported except disclosed above in the relevant notes.

46. Approval of the Standalone Financial Statements

The Standalone Financial Statements were approved for issue by the Board of Directors on April 19, 2024.

47. Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting policies. (GAAP)

48. The previous year's figures have been regrouped or reclassified wherever necessary to confirm with the current year's presentation.