2.13 Provisions & Contingent Liabilities:
i) A provision is recognized if, as a result of a past event, the Company has a present legal obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required
to settle the obligation. Provisions are determined by the best estimate of the outflow of economic
benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made,
a disclosure is made as contingent liability. Contingent assets are not recognized.
ii) Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of obligations
may be small.
2.14 Contributed equity :
i) Equity:
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
ii) Dividends :
Provisions is made for any amount of dividend declared, being appropriately authorized and no longer
at the discretion of the entity, on or before the end of reporting period but not distributed at the end of
the reporting period.
2.15 Earning Per Share
i) Basic Earning Per Share
Basic Earning Per Share is calculated by dividing the profit attributable to owners of the company by
the weighted average number of equity shares outstanding during the financial year.
ii) Diluted Earning Per Share
Diluted Earning Per Share adjusts the figures used in the determination of the basic earning per share
to take into account the after income tax effect of interests or other finance costs associated with the
dilutive potential equity shares and the weighted average number of additional equity shares that would
have been outstanding assuming the conversion of all dillutive potential equity shares.
2.16 Segment Reporting
Ind AS 108 establishes standards for the way that public business enterprises report information about
operating segments and related disclosures about products and services, geographic areas, and major
customers. The Company's operations predominantly relate to providing end-to-end business solutions to
enable clients to enhance business performance. Based on the "management approach" as defined in Ind
AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company's performance and allocates
resources based on an analysis of various performance indicators by business segments and geographic
segments. Accordingly, information has been presented both along business segments and geographic
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.
Revenue and identifiable operating expenses in relation to segments are categorized based on items
that are individually identifiable to that segment. Revenue for “all other segments” represents revenue
generated from customers located in India. Allocated expenses of segments include expenses incurred
for rendering services. Certain expenses such as depreciation, which form a significant component of
total expenses, are not specifically allocable to specific segments as the underlying assets are used
interchangeably. Management believes that it is not practical to provide segment disclosures relating to
those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and
adjusted against the total income of the Company.
Assets and liabilities used in the Company's business are not identified to any of the reportable segments, as
these are used interchangeably between segments. Management believes that it is currently not practicable
to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the
available data is onerous.
Geographical information on revenue and business segment revenue information is collected based on
individual customers invoiced or in relation to which the revenue is otherwise recognized.
2.17 Rounding of amounts :
All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as
per the requirement of Division II of Schedule III to the Act, unless otherwise stated.
Note - 3 Recent Accounting Pronouncement :
Accounting Pronouncement Issued but not effective :
i) Ind AS 116 Leases :
Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases
Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the
lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to
recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying
asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss.
The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries
forward the lessor accounting requirements in Ind AS 17.
The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1,2019.
On completion of evaluation of the effect of adoption of Ind AS 116, the Company is proposing to use the
‘Modified Retrospective Approach’ for transitioning to Ind AS 116, and take the cumulative adjustment to
retained earnings, on the date of initial application (April 1,2019). Accordingly, comparatives for the year
ended March 31, 2019 will not be retrospectively adjusted. The Company has elected certain available
practical expedients on transition.
ii) Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments:
Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments
which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax
losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind
AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority
accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in
their income tax filing which has to be considered to compute the most likely amount or the expected value
of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax
credits and tax rates.
The standard permits two possible methods of transition - i) Full retrospective approach - Under this
approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance
with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight
and ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity
on initial application, without adjusting comparatives.
The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1,
2019. The Company will adopt the standard on April 1,2019 and has decided to adjust the cumulative effect
in equity on the date of initial application i.e. April 1,2019 without adjusting comparatives.
The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.
iii) Amendment to Ind AS 12 - Income taxes
On March 31,2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, ‘Income
Taxes’, in connection with accounting for dividend distribution taxes. The amendment clarifies that an entity
shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or
equity according to where the entity originally recognised those past transactions or events.
Effective date for application of this amendment is annual period beginning on or after April 1,2019. The
Company is currently evaluating the effect of this amendment on the standalone financial statements.
iv) Amendment to Ind AS 19 - plan amendment, curtailment or settlement-
Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with
accounting for plan amendments, curtailments and settlements.
The amendments require an entity:
• to use updated assumptions to determine current service cost and net interest for the remainder of the
period after a plan amendment, curtailment or settlement; and
• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in
a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling.
Effective date for application of this amendment is annual period beginning on or after April 1,2019. The
Company does not have any impact on account of this amendment.
Note - 4 Critical Estimates and Judgements:
i) Use of Estimates :
The preparation of the financial statements in conformity with Ind AS requires the management to
make estimates, judgements and assumptions. These estimates, judgments and assumptions affect
the application of accounting policies and the reported amounts of assets and liabilities, the disclosures
of contingent assets and liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the period. Application of accounting policies that require critical
accounting estimates involving complex and subjective judgments and the use of assumptions in these
financial statements have been disclosed below. 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.
ii) Critical Accounting Estimates :
a) Property, plant and equipment
Property, plant and equipment represent a significant proportion of the asset base of the Company.
The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful life and residual
values of company's assets are determined by management at the time the asset is acquired and
reviewed periodically, including at each financial year end. The life is based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes
in technology.
b) Income Taxes :
The Company's major tax jurisdictions is India . Significant judgements are involved in determining the
provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.
c) Defined benefit obligation
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. Due to the complexities
involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.
d) Impairment of trade receivables
The company estimates the uncollectibility of accounts receivables by analysing historical payment
patterns, customer concentrations, customer credit worthiness and current economic trends. If the
financial condition of customer deteriorates, additional allowances may be required.
*The construction of Damoh- Batiyagarh-Baxwala-Hirapur section of state Highway No. 37, which was alloted to
ARSS Damoh Hirapur Tolls Pvt. Ltd. has been terminated by the Concessionaire(MPRDC) in June 2013. ADHTPL
has not received any revenue from this project. The matter is under arbitration since 2013. After assessment of
the arbitration proceedings , the management is of the opinion that there is a huge uncertainty of revoverability
of this amount.
** ARSS Developers Ltd. is involved in the business of Real Esate development. ARSS Infrastructure Projects Ltd.
holds 38.41% stake in ADL as on 31.03.2025. ARSS Developers Ltd. has negative Net Worth of ' 6.06 crores. After
Considering the external liabilities payable by ADL to its Creditors, there will be additional accretion to the negative
value of Equity Share Holders.
Note 40 : Risk exposure of Defined Benefits Obligations
Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:
Asset volatility :
The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create
a deficit. Most of the plan asset investments is maintained with LIC India. These are subject to interest rate risk and the fund manages interest
rate risk to minimize risk to an acceptable level.
Changes in Bond yields :
A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plan funds maintained
with the SBI Life.
Credit risk refers to the risk of default on its obligation by the counter-party resulting in a financial loss. The maximum exposure to the credit
risk at the reporting date is primarily trade receivables from customers other than government entities. These trade receivables are typically
unsecured and are derived from revenue earned from domestic and foreign customers. Credit risk is managed through credit approvals,
establishing credit limits and continuously monitoring the credit-worthiness of customers to which the company grants credit terms in the
normal course of business. On account of adoption of Ind AS 1,09, the company uses expected credit loss model to assess impairment
loss or gain. the company uses a matrix to compute the expected credit loss allowance for trade receivables.
Credit risk is managed on instrument basis. For Banks and financial institutions, only high rated banks /institutions are accepted. For other
financial instruments, the company assesses and maintains an internal credit rating system. The finance function consists of a separate
team who assess and maintain internal credit rating system.
b) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature
of the underlying businesses, the company treasury maintains flexibility in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the company's liquidity position (comprising the undrawn borrowing facilities below) and cash
and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits
set by the company. These limits vary by locations to take into account the liquidity of the market in which the entity operates. In addition,
the company's liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets
necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining
debt financing plans.
Note 53: Capital management
(a) Risk management
The company's objectives when managing capital are to:
- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for
other stakeholders; and
- maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return on capital
to shareholders or issue new shares. The company monitors capital using gearing ratio, which is net debt divided by total Equity. Net debt
comprises of long term and short term borrowings less cash and bank balances. Equity includes equity share capital and reserves that are
managed as capital. The gearing at the end of reporting period was as follows:
NOTE 58:
Segment Reporting As per Ind AS 108 “Operating Segments”
Based on the policy set out under Significant Accounting Policy, the company follows "management Approach" for the purpose of deciding
operating segments. The operating results of each major project locations are regularly reviewed by the entity's chief operating decision maker
to make decisions about resources to be allocated to that location and assess its performance. Accordingly, the company has decided not to
treat each project location as its operating segments considering huge number of project locations and its permanency.
NOTE 59:
Additional Disclosures As per Ind AS 108 "Operating Segments"
(i) Revenue From Customers Exceeding 10% of Total Revenue
As per Para 34 of Ind AS 1,08, if revenues from transactions with a single extrernal customer amount to 10 per cent or more of an entity's
revenues, the company is required to disclose that fact, the total amount of revenues from each such customer, and the identity of the
segment or segments reporting the revenues. The details of such disclosure is as below :
Note 64:
Recognition of Corporate Guarantee as Financial Liability
Financial guarantee is a contractual right of the lender to receive cash from the guarantor, and a corresponding contractual obligation of the
guarantor to pay the lender, if the borrower defaults. The contractual right and obligation exist because of a past transaction or event (assumption
of the guarantee), even though the lender's ability to exercise its right and the requirement for the guarantor to perform under its obligation are
both contingent on a future act of default by the borrower. A contingent right and obligation meet the definition of a financial asset and a financial
liability, even though such assets and liabilities are not always recognized in the financial statements. Based on the measurement principles laid
down under Ind AS 109 "Financial Instrument: Recognition and Measurement", the fair value of all those financial guarantee contracts resonable
below to the materiality threshold limit set by the company. Accordingly the entity has made appropriate disclosure in Note 54 without additionally
recognizing any financial assets or liability.
Note 65:
Micro, Small and Medium Enterprises (MSME) Dues Disclosure
There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for a period of more than 45 days as at the
balance sheet date. The above information and that given under Current liabilities regarding Micro, Small and Medium enterprises has been
determined to the extent such parties have been identified on the basis of information available with the Company.
Note - 70
CIRP Matter
Corporate Insolvency Resolution Process (CIRP) has been initiated against the Company vide the order no. CP(IB) No. 34/CB/2021
dated November 30, 2021 by the Hon'ble National Company Law Tribunal, Cuttack Bench (NCLT) under the provisions of the Insolvency
and Bankruptcy Code, 2016 whereby Mr. Uday Narayan Mitra has been appointed Interim Resolution Professional and his appointment as
Resolution Professional was confirmed by the Committee of Creditors. Pursuant to initiation of CIRP, the class of creditors have placed their
claims berore the IRP/ RP. The summary of the claims received, Claims Admitted etc. (as on 31-03-2024) have been tabulated below:
The particulars of aforementioned claims have been uploaded on IBBI Portal at the link below:-
https://ibbi.gov.in/claims/claimProcess/L14103QR2000PLC006230
The aforementioned claims as placed by different category of creditors as specified above is a compilation of the claims admitted / not admitted
as per the extant guidelines of IBC 20,16, the same may or may not be sitting under the relevant line item in the Financial Statements. The
Resolution plan submitted by SRA is under Sub judice.
During the FY 2023-24, the Claim of ' 919.79 crore of SREI Equipment Finance Limited (SREI) has been admitted by RP pursuant to the order
of Hon'ble NCLAT. It is now expected that the Arbitration claims of ' 1,082.06 cr assigned to SREI prior to the commencement of CIRP, should
come back to the CD. Despite multiple reminders by the RP to SREI, a detailed communication on the status of such Arbitration claims from
SREI is still awaited. Pending such communication, the quantum and status of such arbitration claims could not be evaluated. Here it is pertinent
to mention that the RP has filed a petition before Hon'ble NCLT Cuttack Bench in this regard.
Note 71:
There was a search & seizure operation by Enforcement Directorate (ED) was conducted on 4th October, 2024 at the company's registered
office for further enquiry in the matter of Pearl Agro Corporation Limited (PACL) which is disputed since long.
Note 72:
The Hon' ble Cuttack bench of NCLT, Odisha has heard the Resolution Plan matter on dated 20th May 2025 and reserved the order.
Note 73:
The Serious Fraud Investigation Office has intiated investigation into the affairs of the company during the year 2024-25.
As per our report of even date attached.
For M A R S & Associates For and on behalf of the Board
Chartered Accountants (Suspended during CIRP)
FRN : 010484N
Sd/- Sd/- Sd/- Sd/-
(CA. Vipul Kumar Gupta) (Rajesh Agarwal) Subash Agarwal (Uday Narayan Mitra)
Partner Managing Director Chairman Resolution Professional
M.No.:- 522310 DIN: 00217823 DIN: 00218066 IP Reg. No .: IBBI/IPA-001/
IP-P00793/2017-18/11360
Date : May 28, 2025 Sd/- Sd/-
Bhubaneswar (Prakash Chhajer) (S.K. Pattanaik)
UDIN: 25522310BMOTAH6738 Company Secretary Chief Financial Officer
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