12.3 Terms / Rights attached to Equity Shares
(a) The Company has only one class of equity shares having a par value of ?10 per share. Each holder of equity shares is entitled to one vote per share
(b) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company The distribution will be in proportion to the number of equity shares held by the shareholders.
12.7 There are no shares issued under the Employee Stock Option Plan or by way of bonus shares or pursuant to contract(s) without payment being received in cash during the period of five years immediately preceding the balance sheet date.
12-8 There are no shares which are bought back by the company during the period of five years immediately preceding the balance sheet date.
13.1 Nature and Purpose of Reserves
(a) Retained Earnings
Retained earnings are the profits that the Company has earned till date, less any transfer to dividends or other distrbutions paid to the shareholders.
(b) Revaluation Surplus
The reserve is created on account of upward revaluation of Property, Plant & Equipment of the company forming the part of the Other Comprehensive Income of the Company.
14.1 Loan from Banks . . ,
(a) HDFC Bank Limited have sanctioned various Machinery Equipment Loans, Motor Vehicle Loans, Commercial Vehicle Loans, GECL, Loan against Properties and Term Loans against Mobilisation Advances to the company. The loans have charge over assets mentioned in the sanction letter of the bank. The repayment schedule ranges between 24 to 120 months. Additionally, the bank has sanctioned Unsecured Business Loan to the company and is repayable in 36 months. The loans carries interest rate as mentioned in the respective sanction letter of the bank subject to revision from time to time.
(b) Punjab National Bank has sanctioned Covid Limit of ?59.00 Millions to the company and has charge over current assets to secure the finance The Covid Limit is repayable in 48 months. The loans carries interest rate as mentioned in the respective sanction letter of the bank subject to revision from time to time.
(c) Axis Bank Limited have sanctioned various Commercial Vehicle Loans to the company and has exclusive charge over Fixed Assets financed by the bank. The repayment schedule ranges between 59 to 60 equated monthly installments. Additionally, the bank has also sanctioned Unsecured Business Loan to the company having repayment period of 36 months. The loans carries interest rate as mentioned in the respective sanction letter of the bank subject to revision from time to time.
(d) ICICI Bank, Kotak Mahindra Bank and IDFC First Bank Limited have sanctioned unsecured Business Loans to the company having repayment
period of 36 months. The loans carries interest rate as mentioned in the respective sanction letter of the bank subject to revision from time to time
(e) The limits of above mentioned banks are further secured against the collateral securities mortgaged with the respective banks as mentioned in their respective sanction letters.
14.2 Loan from NBFC's / Financial Institutions
(a) Aditya Birla Finance Limited has sanctioned Loan against Property and unsecured Business Loan to the company. The Loan against Property is
secured against the personal immovable property of the Directors. The loan against property is repayable in 144 months and unsecured business loan is repayable in 24 months. The loans carries interest rate as mentioned in the respective sanction letter subject to revision from time to time.
(b) Kisetsu Saison Finance India Private Limited, Protium Finance Limited, Fedbank Financial Services Limited, Tata Capital Financial Services
Limited, SFMG India Credit Co. Limited, Shri Ram Finance Limited and SMC Finance has sanctioned unsecured Business Loan to the company. The repayment schedule ranges between 24 to 36 months. The loans carries interest rate as mentioned in the respective sanction letter subject to revision from time to time.
14.3 All the loans are secured against the personal guarantee of the promoter directors.
19.1 Working Capital Limits are availed from Punjab National Bank & HDFC Bank by way of Cash Credit Limit. The said limits are secured against inventories, book debts and other current assets of the company. The limits are further secured against the collateral securities mortgaged with the respective banks and personal guarantee of the directors. The working capital limit is repayable on demand and carries interest rate as mentioned in the respective sanction letter of the bank subject to revision from time to time.
35 Gratuity and other Post-Employment Benefit Plans
The gratuity plan is governed by the Payment ofGratuity Act, 1972. Under the same, the employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age.
(a) During the year / period, the Company has recognized the following amounts in the statement of profit and loss -
36.2 Outstanding Statutory Demands
(a) The Income Tax Department has raised demand u/s 153(C) r.w.s. 143(3) of the I.T. Act, 1961 for an amount of ?8.60 Millions relevant to A Y 2020-21 and the Company has filed the appeal with the Honourable CIT (Appeal) and the case is yet to be adjudicated.
(b) The Income Tax Department has raised demand u/s 154 of the l.T. Act, 1961 for an amount of ?5.63 Million relevant to A Y 2023-24 and the Company has filed the appeal with the Honourable CIT (Appeal) and the case is yet to be adjudicated.
(c) The Company has on Outstanding TDS Demand of ?3.68 Million. The Company is in the process of rectification of the same.
(d) Scrutiny Notice pertaining to the Fiscal 2020 amounting to ?26.00 million (inclusive of late fees and interest) has been received under Goods and Services Tax Act, 2017.
(e) Show Cause Notice amounting to H7.83 million along with interest of ?4.43 million and penalty of ?7.83 million under Section 74 of the Goods and Services Tax Act, 2017 has been imposed on the Company.
(0 Show Cause Notice amounting to ?5.08 million along with interest and penalty under Section 74(1) of the Goods and Services Tax Act, 2017 has been imposed on the Company.
(g) Notices amounting to ?0.002 million has been received intimating the discrepancies in GST Return for Fiscal 2023.
(h) Intimation amounting to H2.27 million along with interest and penalty under Section 73(5) of the Goods and Services Act, 2017 has been imposed on the Company.
(i) Show Cause Notice vide Form GST DRC - 01 dated May 31, 2024 under section 73 of the CGST / SGST Act, 2017 read with Section 20 of the 1GST Act, 2017 for mismatch of liability declared amounting to ?8.58 million (inclusive of interest and penaltv) for Fiscal 2020.
(j) Show Cause Notice vide Form GST DRC - 01 dated May 7, 2024 under section 73 of the CGST / SGST Act, 2017 read with Section 20 of the 1GST Act, 2017 for mismatch of liability declared amounting to ?0.004 million (inclusive of interest and penalty) for the month of March 2024.
(k) Show Cause Notice amounting to ?3.75 million along with interest and penalty under Section 74(1) of the Goods and Services Tax Act, 2017 has been imposed on the Company.
39 Segment Information
Ind AS-108 establishes standards for the way that the Company report information about operating segments and related disclosures about products and services, geographical areas, and major customers. The Company has only one business segment primarily Construction Services and related services in relation to the construction activities. Based on the "'Management Approach" as defined in Ind AS-108. The management also reviews and measure the operating results taking the whole business as one segment and accordingly make decision about the resources allocation. In view of the same, segment reporting information is not required to be given as per the requirements of Ind AS-108 on "Operating Segments'. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments and are as set out in the significant accounting policies.
40 Cnnital Management .
40.1 For the purpose of the Company’s capital management, capital includes issued equity capital, all equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholders' value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.
In order to achieve this overall objective, the Group'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 an borrowing in the current period. , ... ...
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, _024 & March 31,2U23.
40.2 Changes ill Inabilities arising from Financing Activities
(a) The major changes in the Company's liabilities arising from financing activities are due to financing cash flows and accrual of financial liabilities. The Company did not acquire any liabilities arising from financing activities during business combinations effected in the current period or
(b) The Company disclosed information about its interest-bearing loans and borrowings. There are no obligations under hire purchase contracts. Reconciliation of movement of liabilities to cash flows arising from financing activities
41.3 Discount Rate used in determining Fair Value .
(a) The interest rate used to discount estimated future cash flows, where applicable, are based on the incremental borrowing rate of borrower which in case of financial liabilities is average market cost of borrowings of the Company and in case of financial asset is the average market rate of similar credit rated instrument. The company maintains policies and procedures to value financial assets or financial liabilities using the best and most
(b) TheVfair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
42 Fair Value Hierarchy
All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole.
Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2 - Valuation techniques for which the lowest level input that has a significant effect on the fair value measurement are observable, either
directly or indirectly. .
Level 3 - Valuation techniques for which the lowest level input which has a significant effect on the fair value measurement is not based on
observable market data.
The following table provides the Fair Value Measurement Hierarchy of the Company’s Assets and Liabilities -
43 Financial Risk Management Objectives nnd Policies
The Company's principal financial liabilities comprise of trade and other payables, borrowings, security deposits. 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, fixed deposits and security deposits 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 Finance department that advises on financial risks and the appropriate financial risk governance framework for the Company. The Finance department provides assurance to the Company's senior management that 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. It is the company's policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below
43.1 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 three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk.
The sensitivity analysis in the following sections relate to the position as at March 31, 2024 & March 31,2023.
The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.
(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 and short term debt obligations with floating interest rates. The company is carrying its borrowings primarily at variable rates. For floating rates borrowings 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 50 basis point 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._______
(b) Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense is denominated in a foreign currency).
The Company transacts business in local currency only The Company does not have foreign currency trade payables and receivables and is therefore, not exposed to foreign exchange risk. The Company need not to use currency swaps or forward contracts towards hedging risk resulting from changes and fluctuations in foreign currency exchange rate as per the risk management policy.
(c) Price Risk
The Company’s exposure to price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Company diversifies its portfolio of assets.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to our Company. Our Company is only dealing with government authorities which results in mitigating the risk of financial loss from defaults. Financial instruments that are subject to concentration of credit risk, principally consist of balance with banks, investments in bonds, trade receivables and loans and advances. Financial assets are written off when there is no reasonable expectation of recovery. Our Company measures the expected credit loss of trade receivables based on historical trend, industry practices and the business environment in which we operate. Loss rates are based on actual credit loss experience and
past trends.
Trnrlf* Roo.civflblcs ... »•.
Customer credit risk is managed by each Company subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating. 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. An impairment analysis is performed at each reporting date on an individual basis for major customers. The Company assesses the credit quality of the counterparties, taking into account their financial position past experience and other factors. The management believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers. The customers of the company being Goverment and Government-Controlled Entities undertakings which owns the company s on an average 70% to 75% of the total debtors.
Also, an impairment analysis is performed at each reporting date on an individual basis for the other receivables of the company. The Company pstnMishps an allowance for imDairment that represents its expected credit losses in respect of other receivables.
44 Disclosure pursuant to Ind AS 116 - "Leases"
44.1 The Company applied the available practical expedients wherein it -
(a) Used a single discount rate to a portfolio of leases with reasonably similar characteristics.
(b) Relied on its assessment of whether leases are onerous immediately before the date of initial application.
(c) Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial application
(d) Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application
(e) Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease
44.2 The Company has taken Registered Office, Corporate Office and various Offices at Project Sites under operating lease agreements till the end of
Reporting Period. These are generally cancellable and are renewable with mutual consent. However, the company has now entered into Long Term Lease Contracts for Registered Office & Corporate Office for upto 10 Years and 15 Years.
44.3 The Company has elected not to apply the requirements of Ind AS 116 to short term leases of site offices that have a lease term of twelve months or
less and leases for which the underlying asset is of low value. The lease payments associated with these leases are recognized as an expense on a
straight line basis over the lease term. -
44.4 The maturity analysis of contractual undiscounted cash flow in respect of lease recognised under IND AS 116 is disclosed under note 43.3.
44.5 Thft effective interest rate for lease liabilities is 11 %. * ^ k
* Ratios variances have been explained for any change by more than 25% as compared to the previous year.
** Return on Investment in case of Fixed Deposits have not been computed because the FD's have been pledged against the margin held for Bank Guarantees. Return on Mututal Funds is negligible and due to rounding off is not visible in the financial statements. Moreover, the impact of the same is not material over financial statements, therefore, the same has not been calculated, ft Total Equity, Average Shareholder's Equity and Capital Employed excludes Revaluation Surplus.
45.1 Notes to Analytical Ratios
(a) % Change from March 31,2023 to March 31,2024
(i) Variation in Debt Service Coverage Ratio is on account of increased EBITDA during the F.Y. 2023-24 and also the proportionate increase ol debt repayment is quite less as compared to the profitability of the Company.
(ii) Variation in Return on Equity Ratio, Return on Capital Employed annd Net Profit Ratio is on account of increased profitability during the year as compared to previous years.
(iii) Variation in Inventory Turnover Ratio is due to high level of inventories kept during the year for timely completion of large size contracts / projects awarded to the company.
(iv) Variation in Trade Receivables Turnover Ratio is on account of increased turnover as compared to previous year and also on account of timely realisability of receivales by the company.
(v) Variation in Trade Payables Turnover Ratio is on account of increased working capital requiremnets which further leads to increase in payment cycles of the company.
(vi) Variation in Net Capital Turnover Ratio is on account of increased working capital requirement for large size contracts / projects awarded to the company.
46 Other Statutory Information
46.1 The company do not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami
46.2 The Company do not have any transactions with companies struck off.
46.3 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
46.4 The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
46.5 The Company have 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:
(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate
(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
46.6 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:
(i) 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
(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,
46.7 The Company have not 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,
46.8 The Company has not been declared wilful defaulter by any bank and financial institution or government or any government authority.
46.9 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on
number of Layers) Rules, 2017
46.10 The Company has not revalued its property, plant and equipment during the financial year.
46.11 The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in
favour of the lessee) are held in the name of the Company.
47 OTHER INFORMATION
47.1 GST Inputs and Outputs are considered in the books of accounts w.r.t. the purchases / inputs and sales / outputs made during the year on which the assessee is eligible / liable by the management. However difference if any, resulting at the time of GST Audit or any other development or information later on, is provided for in the year in which such difference is pointed out.
47.2 In the opinion of the Directors, Trade Receivables, Short Term Loans & Advances and Other Current Assets have been valued at which they are shown in the Balance Sheet if realised in the ordinary course of business.
47.3 Balances of parties under Trade Payables, Other Current Liabilities, Long Term Loans & Advances, Trade Receivables, Short Term Loans & Advances and Other Current Assets are subject to confirmation.
47.4 Previous Year Figures have been regrouped and recasted wherever necessary.
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