1.1 Company Overview
Dilip Buildcon Limited (the 'company') is domiciled in India
with its registered office at Bhopal, Madhya Pradesh,
India. The Company has been incorporated under the
provisions of the Companies Act, 1956.
The Company's equity shares are listed on Bombay Stock
Exchange (BSE) and National Stock Exchange (NSE) with
effect from 11 August 2016.
The company is presently in the business of development
of infrastructure facilities on Engineering Procurement
and Construction basis (EPC) and undertakes contract
from various Government and other parties and special
purpose vehicles promoted by the Company.
1.2 Basis of Preparation of financial statements
The Company's financial statements have been prepared
in accordance with Indian Accounting Standards (Ind
AS) as notified by Ministry of Corporate Affairs under
sections 133 of the Companies Act, 2013 read with Rule
3 of the Companies (Indian Accounting Standards) Rules,
2015, as amended.
The financial statements of the Company for the year
ended 31 March 2026 were approved for issue in
accordance with the resolution of the Board of Directors
on 14 May 2026.
1.3 Basis of accounting
The Company maintains its accounts on accrual basis
following the historical cost convention, except for certain
financial instruments that are measured at fair values
in accordance with Ind AS. Further, the guidance notes/
announcements issued by the Institute of Chartered
Accountants of India (ICAI) are also considered, wherever
applicable except to the extent where compliance
with other statutory promulgations override the same
requiring a different treatment.
1.4 Presentation of Financial Statements
The Balance Sheet, Statement of Profit and Loss
(including other comprehensive income) and Statement
of Changes in equity are prepared and presented in the
format prescribed in the Schedule III to the Companies
Act, 2013 ("the Act”). The disclosure requirements with
respect to items in the Balance Sheet and Statement of
Profit and Loss (including other comprehensive income),
as prescribed in the Schedule III to the Act, are presented
by way of notes forming part of the financial statements
along with the other notes required to be disclosed
under the notified Accounting Standards and the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015.
1.5 Current / Non-Current classification
An asset or liability is classified as 'current' when it
satisfies any of the following criteria:
(i) it is expected to be realized or settled, or is intended
for sale or consumption in, the company's normal
operating cycle;
(ii) it is held primarily for the purpose of being traded;
(iii) it is expected to be realized or settled within twelve
months from the reporting date; or
(iv) an asset is cash or a cash equivalent unless it is
restricted from being exchanged or used to settle
a liability for at least twelve months from the
reporting date;
(v) in case of liability, the company does not have
an unconditional right to defer settlement of
the liability for at least twelve months from the
reporting date.
All other assets and liabilities are classified as non-current.
All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle
and other criteria set out above which are in accordance
with Schedule III to the Act.
Operating Cycle
Based on the nature of services provided by the Company
and the normal time between acquisition of assets and
their realization in cash or cash equivalents, the Company
has determined its operating cycle as 12 months for the
purpose of classification of its assets and liabilities as
current and non-current.
1.6 Use of estimates
The preparation of the financial statements in conformity
with Ind AS requires management to make estimates,
judgments and assumptions. These estimates, judgments
and assumptions affect the application of material
accounting policies and the reported amounts of assets
and liabilities, the disclosures of contingent liabilities at
the date of the financial statements and reported amounts
of revenues and expenses during the period. Accounting
estimates could change from period to period. Actual
results could differ from those estimates. Appropriate
changes in estimates are made as management becomes
aware of changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are
made and, if material, their effects are disclosed in the
notes to the financial statements.
This note provides an overview of the areas that involved
a higher degree of judgement or complexity and of items
which are more likely to be materially adjusted due to
estimates and assumptions turning out to be different
than those originally assessed. Detailed information
about each of these estimates and judgements is included
in the relevant note.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised prospectively.
A. Judgements in applying material accounting policies
The judgements, apart from those involving
estimations (see note below) that the Company
has made in the process of applying its material
accounting policies and that have a significant
effect on the amounts recognised in these financial
statements pertain to useful life of assets. The
Company is required to determine whether its
intangible assets have indefinite or finite life which
is a subject matter of judgement.
B. Key source of estimation uncertainty
The following are the key assumptions concerning
the future, and other key sources of estimation
uncertainty at the end of the reporting period that
may have a significant risk of causing a material
adjustment to the carrying amounts of assets and
liabilities within the next financial year.
a) Property, Plant and Equipment (PPE)
Determination of the estimated useful
lives of items of PPE and the assessment
as to which components of the cost may be
capitalized. Useful lives of items of PPE are
based on the life prescribed in Schedule II of
the Companies Act, 2013. In cases, where the
useful lives are different from that prescribed
in Schedule II, they are based on technical
advice, taking into account the nature of the
asset, the estimated usage of the asset, the
operating conditions of the asset, past history
of replacement, anticipated technological
changes, manufacturers' warranties and
maintenance support.
b) Recognition and measurement of defined
benefit obligations
The obligation arising from defined benefit
plan is determined on the basis of actuarial
assumptions. Key actuarial assumptions include
discount rate, trends in salary escalation and
vested future benefits and life expectancy.
The discount rate is determined based on the
prevailing market yields of Indian Government
Securities as at the Balance Sheet Date for the
estimated term of the obligations.
c) Recognition of deferred tax assets
A deferred tax asset is recognised for all the
deductible temporary differences to the
extent that it is probable that taxable profit
will be available against which the deductible
temporary difference can be utilised.
d) Recognition and measurement of
other provisions
The recognition and measurement of other
provisions are based on the assessment of the
probability of an outflow of resources, and on
past experience and circumstances known at
the balance sheet date. The actual outflow of
resources at a future date may therefore vary
from the figure included in other provisions.
e) Discounting of long-term financial instruments
All financial instruments are required to be
measured at fair value on initial recognition.
In case of financial instruments which are
required to be subsequently measured at
amortised cost, interest is accrued using the
effective interest method.
1.7 Functional and presentation currency
These financial statements are presented in Indian Rupees
(INR), which is also the Company's functional currency.
All amounts have been rounded-off to the nearest lakhs,
unless otherwise indicated.
1.8 Property, plant and equipment and Depreciation
Property, Plant and Equipment is recognized when it is
probable that future economic benefits associated with
the item will flow to the Company and the cost can be
measured reliably.
Items of property, plant and equipment are measured
at cost, which includes capitalised eligible borrowing
costs, less accumulated depreciation and accumulated
impairment losses, if any.
Cost of an item of property, plant and equipment
comprises its purchase price, including import duties and
non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable cost of
bringing the item to its working condition for its intended
use and estimated costs of dismantling and removing the
item and restoring the site on which it is located.
If significant parts of an item of property, plant and
equipment have different useful lives, then they are
accounted for as separate items (major components) of
property, plant and equipment.
Any gain or loss on disposal of an item of property, plant
and equipment is recognised in profit or loss.
Subsequent expenditure is capitalised only if it is probable
that the future economic benefits associated with the
expenditure will flow to the company. Advance given
towards acquisition of Property, Plant and Equipment
outstanding at the reporting date are disclosed as capital
advances under Non-Current Assets.
Property, Plant and Equipment is derecognized upon
disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising
on derecognition is recognized in the Statement of Profit
and Loss in the same period.
Depreciation is calculated on cost of items of property,
plant and equipment less their estimated residual values
over their estimated useful lives using the straight-line
method and is generally recognised in the statement of
profit and loss. Freehold land is not depreciated.
Depreciation on additions / (disposals) is provided on a
pro-rata basis i.e. from / (upto) the date on which asset is
ready for use / (disposed of).
1.9 Intangible Assets and amortization
Intangible assets that the Company controls and from
which it expects future economic benefits are capitalised
upon acquisition at cost comprising the purchase price
and directly attributable costs to prepare the assets
for its intended use.
Intangible Asset is derecognized upon disposal or when
no future economic benefits are expected from its use
or disposal. Any gain or loss arising on derecognition
is recognized in the Statement of Profit and Loss in
the same period
Intangible assets that have finite lives are amortised over
their useful lives by the straight-line method. Intangible
assets with indefinite useful life are not amortised but are
tested for impairment.
1.10 Investments in Subsidiaries, Associates and Joint
ventures
Investments in Subsidiaries, Associates and Joint
Ventures are carried at cost less accumulated impairment
losses, if any. Where an indication of impairment exists,
the carrying amount of the investment is assessed and
written down immediately to its recoverable amount.
On disposal of investments in subsidiaries, associates
and joint venture, the difference between net disposal
proceeds and the carrying amounts are recognized in the
Statement of Profit and Loss.
1.11 Investments in Units of InvIT
Investments in Units of InvIT are measured at fair
value through Other Comprehensive Income as per
Ind AS 109 'Financial Instruments'. The Company has
on Initial recognition, made an irrevocable election to
present subsequent changes in the fair value in other
comprehensive income (FVOCI) on an instrument by¬
instrument basis.
For equity investment classified as at FVOCI, all fair value
changes on the instruments, excluding dividends and
interest are recognized in the OCI. There is no recycling
of the amounts from OCI to profit or Loss, even on sale
of Investments. However, the Company may transfer the
cumulative gain or loss within equity.
1.12 Inventories
Construction material, components, stores and spares
are valued at lower of cost or net realisable value. Cost
is determined on first in first out basis and comprise
all cost of purchase, duties, taxes and all other costs
incurred in bringing the inventory to their present
location and condition.
1.13 Impairment of non-financial assets
The Company assesses at each balance sheet date
whether there is any indication that an asset or cash
generating unit (CGU) may be impaired. If any such
indication exists, the company estimates the recoverable
amount of the asset. The recoverable amount is the
higher of an asset's or CGU's net selling price or its value
in use. Where the carrying amount of an asset or CGU
exceeds its recoverable amount, the asset is considered
impaired and is written down to its recoverable amount.
In assessing value in use, the estimated future cash flows
are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of
the time value of money and the risks specific to the asset.
Impairment losses are recognised in the statement of
profit and loss. The impairment loss in respect of a CGU
is allocated first to reduce the carrying amount of any
goodwill allocated to the CGU, and then to reduce the
carrying amounts of the other assets in the CGU on a
pro rata basis.
An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the
extent that the asset's carrying amount does not exceed
the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss
had been recognised.
1.14 Financial Instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial Assets
Initial Recognition
The Company recognizes financial assets when it becomes
a party to the contractual provisions of the instrument.
All financial assets are recognized at fair value on initial
recognition, except for trade receivables which are initially
measured at transaction price unless those contain a
significant financing component. Transaction costs that
are directly attributable to the acquisition or issue of
financial assets that are not at fair value through profit or
loss are added to the fair value on initial recognition.
Subsequent measurement
For the purpose of subsequent measurement, financial
assets are classified in two broad categories: - i] Financial
assets at fair value and ii] Financial assets at amortised
cost. Where assets are measured at fair value, gains and
losses are either recognised entirely in the statement
of profit and loss [i.e fair value through profit or loss],
or recognised in other comprehensive income [i.e. fair
value through other comprehensive income]. A financial
asset is subsequently measured at amortised cost if it is
held within a business model whose objective is to hold
the asset in order to collect contractual cash flows and
the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A financial asset is subsequently measured at FVTOCI
if it is held within a business model whose objective is
achieved both by collecting contractual cash flows and
selling financial assets; and the contractual terms of
instrument give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.
Derecognition
The company derecognises a financial asset when the
contractual rights to the cash flows from the financial
asset expire, or it transfers the rights to receive
the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership
of the financial asset are transferred or in which the
company neither transfers nor retain substantially all of
the risks and rewards of ownership and it does not retain
control of the financial asset.
Impairment of financial asset
For impairment of financial assets, Company
applies expected credit loss (ECL) model. Following
financial assets and credit risk exposure are covered
within the ECL model:
a. Financial assets that are debt instruments, and
are measured at amortized cost e.g. loans, debt
securities, deposits and bank balance
b. Trade receivables or any contractual right to receive
cash or another financial asset that result from
transactions that are within the scope of Ind AS 115.
The company follows 'simplified approach' for recognition
of impairment loss allowance on trade receivables
including receivables recognized under service
concession arrangements.
The application of simplified approach does not require
the company to track changes in credit risk. Rather,
it recognises impairment loss allowance based on
lifetime ECLs at each reporting date, right from its
initial recognition. For recognition of impairment loss
on other financial assets and risk exposure, the company
determines that whether there has been a significant
increase in the credit risk since initial recognition. If credit
risk has not increased significantly, 12-month ECL is used
to provide for impairment loss. However, if credit risk
has increased significantly, then the impairment loss is
provided based on lifetime ECL.
Financial liabilities
Initial recognition
The company initially recognises borrowings, trade
payables and related financial liabilities on the date on
which they are originated.
Non-derivative financial liabilities are initially recognised
at fair value, net of transaction costs incurred.
Subsequent measurement
Financial liabilities are subsequently carried at amortized
cost using the effective interest method, except for
contingent consideration recognized in a business
combination which is subsequently measured at fair value
through profit and loss. For trade and other payables
maturing within one year from the Balance Sheet date,
the carrying amounts approximate fair value due to the
short maturity of these instruments.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires.
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially modified,
such an exchange or modification is treated as the
derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying
amounts is recognised in the statement of profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the
net amount is reported in the balance sheet if there is a
currently enforceable legal right to offset the recognised
amounts and there is an intention either to settle on a
net basis or to realise the assets and settle the liabilities
simultaneously.
All other financial instruments (including regular-way
purchases and sales of financial assets) are recognised
on the trade date, which is the date on which the
company becomes a party to the contractual provisions
of the instrument.
1.15 Leases
The Company assesses whether a contract contains a
lease, at inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use
of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the Company
assesses whether: (i) the contract involves the use of an
identified asset (ii) the Company has substantially all of
the economic benefits from use of the asset through the
period of the lease and (iii) the Company has the right to
direct the use of the asset.
At the date of commencement of the lease, the
Company recognizes a right-of-use asset ("ROU") and a
corresponding lease liability for all lease arrangements in
which it is a lessee, except for leases with a term of twelve
months or less (short-term leases) and low value leases.
For these short-term and low value leases, the Company
recognizes the lease payments as an operating expense
on a straight-line basis over the term of the lease.
Certain lease arrangements include the option to extend
or terminate the lease before the end of the lease term.
Lease term includes non- cancellable period of lease
together with periods covered by such options if the
Company is reasonably certain to exercise the option
to extend or reasonably certain not to exercise the
option to terminate.
The right-of-use assets are initially recognized at cost,
which comprises the initial amount of the lease liability
adjusted for any lease payments made at or prior to the
commencement date of the lease plus any initial direct
costs less any lease incentives. They are subsequently
measured at cost less accumulated depreciation and
impairment losses.
Right-of-use assets are depreciated from the
commencement date on a straight-line basis over the
shorter of the lease term and useful life of the underlying
asset. Right of use assets are evaluated for recoverability
whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable.
For the purpose of impairment testing, the recoverable
amount (i.e. the higher of the fair value less cost to sell
and the value-in-use) is determined on an individual asset
basis unless the asset does not generate cash flows that
are largely independent of those from other assets. In
such cases, the recoverable amount is determined for the
Cash Generating Unit (CGU) to which the asset belongs.
The lease liability is initially measured at the present
value of the future lease payments. The lease payments
are discounted using the interest rate implicit in the lease
or, if not readily determinable, using the incremental
borrowing rates in the country of domicile of these
leases. Lease liability is subsequently measured at
Amortised Cost. Lease liability is remeasured with a
corresponding adjustment to the related right of use
asset if the Company changes its assessment of whether
it will exercise an extension or a termination option.
Lease liability and ROU asset have been separately
presented in the Balance Sheet and lease payments have
been classified as financing cash flows.
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