3.18 Provisions, contingent liabilities and contingent assets
A provision is recog ruzod when an enterprise luis a present obligation (legal or constructive) as result of past event and it is probable that
an outflow embodying oconomic benefits of resources will be required to settle the obligation. Provisions are determined based on best
estimates required to setlle each obligation at the balance sheet date If the effect of the time value of money is matenal provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the riste specific fo the liability. When discounting is used, the
increase in the provision due to the passage of time is recognized as a finance cost.
Contingent liabilities ore disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a
present obligation that arises from past events where it is either not probable that an outflow of resources will be required Ic settle the
obligation or a reliable estimate of the amount cannot be made The Company uses significant judgements to disclose contingent
liabilities
Contingent assets are neither recognized nor disclosed ,n the financial statements
3.19 Borrowing Costs
Borrowing costs net of any investment income from the temporary investment of related borrowings that are attributable to theacquisibon.
construction or production of a qualifying asset are capitalized as part of cost of such asset till such time the asset is ready for its intended
use or sale. A qualifying asset is an asset that necessarily requires a substantial period of lime to get ready *or its intended use or sale. All
other borrowing costs are recognized in profit or loss in the penod in which they are incurred.
3.20 Non-current assets held for sale
Non-current assets and disposal groups are classified as held for safe if then canying amount is intended to be recovered pnncipally
through a sole (rather than through continuing use) when the asset (or disposal group) is available for immediate sole in its present
condition subject only to terms that are usual and customary for sale of such asset (nr disposal group) and the sale is highly proha rile and
is expected to qualify for recognition as a completed sale within one year from the date of classification
Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs
to sell
Non-current assets and Disposal Group that ceases to be classified as field for sale shall be measured at the lower of carrying amount
before the non-current asset and Disposal Group was classified as held for sale adjusted for any depreciation,' amortization and its
recoverable amount at the date when the Disposal Group no longer meets the "Held lor sale' criteria
3.21 Exceptional items
An item of income or expense which by its size type or incidence requires disclosure in order to improve an understanding of the
performance of the company is treated as an exceptional item and ttie same is disclosed in the notes to accounts.
3.22 Prior Period Adjustments
Errors of matenal amount rotating to poor period(8) 8re disclosed by a note with nature of pror period errors, amount of correction of each
such prior period presented retrospectively, to the extent practicable along with change in basic and diluted earnings per share However,
where retrospective restatement is not practicable for a particular period then the circumstances that lead to the existence of thal
condition and the description of how and from where ttie error is corrected are disclosed in Notes on Accounts
16.5 Terms/Rights attached to equity shares
f tie company has only one dass of equity shares having a par value of Rs.2 per share. Each holder of equity shares is entitled lo one vote
per share The company dodares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subjoct to the
approval of the shareholders In the onsu.ng Annual General Meeting.
During the year the Board has not recommended any dividend (PY Rs Nil)
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company after
distribution of alt preferential amounts The distribution will he in proportion to the number ot equity shares held by the shareholders
16.6 Information on equity shares allotted without receipt nf cash or allotted as bonus shares or shares bought back during the perxxt ol five
years immediately preceding the reporting dale - NIL.
• Securities Premium
Securities Premium represents the difference between the face value of the equity shares and the consideration received in respect of
shares Issued. The issue expenses of secunties which quality as equity instruments are written off against securities premium
• General Reserve
Ttie Company created a General reserve in earlier years pursuant to the provisions ol the erstwhile Companies Act, 1956 where in certain
percentage of profits was required to be transferred to General reserve before declaring dividends. General reserve is a free reserve
available to the Company
• Retained Earnings
Retained earnings represent the amount of accumulated earnings of the company and adjustment arising on account of transition to Ind AS.
not of taxes
a. No tax credits are recognized on the carry toward losses and unassorted deprecation, in the absence of reasonable oertainty supported
by convincing evidence that sufficient future taxable income will be availablo against which such deferred tax assets can be realized
Except for Land and Investment property no other deferred fax Labilities! assets has been recognized considering the non-recogmtlon of
deferred tax assets on the carried forward losses and unabsorbed depredation as stated above.
b. The Company has opted for tower corporate lax rate available under section 115BAAof the Income-tax Acl, 1961 ( the Act) as introduced
by Taxation Laws (Amendment) Ordinance 2019. Accordingly, the effective tax rate stands at 25.168%.
Notes:
Level 1 inputs are quoted prices (unadjusted) In active markets for identical assets or liabilities that the entity can access at the measurement
date.
Level 2 inputs ore inputs other than quoted pnees included within level 1 thai are observable for the asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs fu' the asset or liability
There have been no transfers between the levels aunng the period
Financial instruments carried at amortized cost such as trade receivables, loans and advances other financial assets borrowings trade
payables and other financial liabilities are considered to be same as their fair values, due lo short term nature
For Financial assets & liabilities that are measured at fair value. Hit* carrying amounts are equal to the fair values.
35. Disclosures pursuant tolnd AS 107 “Financial Instruments-Disclosures": Financial Risk Management Objectives and Policies
The Company's principal financial liabilities comprisetrade and other payables The main purpose of these financial liabilities is to finance and
support Company's operations. The Company 's principal financial assets include investments, inventory, trade and other receivaWes, cash and
cash equivalents.
The Company is exjiosed lo market risk credit risk and liquidity risk The Company's senior management oversees the management of these
risks. Trie senior management ensures tl\at trie 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 polidos and risk objectives, which aro summarized
below.
A Market risk
Market nsk Is the nsk that the fair value of future cash flows of a financial instrument will fluctuate because of changes In market prices. Market
risk comprises two types of risk: Interest rate nsk and other price risk, such as equity price risk and commodity nsk. The Company has no
exposure to commodity prices as it does not deal in derivative instruments whose underlying is a commodity. Financial instruments affected by
market risk Includcloansand borrowings,
a. Interest rate risk
Interest rate nsk is thu nsk that the fair valuo or future cash Hows of a financial Insl/uniont will fluctuate because of changos In market interest
rates. The Company's exposure to Uio risk of changes in market interest rates relates primarily to the Company's long-term and short-term debt
obligations with floating interest rates The Company has tho policy ofmanaging its interest rato nsk by having a balanced portfolio of fixed and
variable rate loans and borrowings As all Ihe borrowings from the banks and financial institutions were settled completely pursuant to the One
Time Settlement Plan during Ihe previous year,changes in market interest rates do not significantly affect the Statement of Profit and I03S for tne
years ended March 31,202G and March 31,2025
B Credit risk
Credit nsk refers to the nsk of default on its obligation by the counterparty resulting in a financial loss. It pnnopally arises from the Company's
Trade Receivables and contract assets including Retention Receivables, Cash & Cash Equivalents. Advances made and Other Investments,
a. Trade Rocelvabtes & Contract Assets:
(I) Trane receivables are typically unsecured and are denved from revenue earned from customers. Company's exposure to credit risk is
influenced mainty by the individual characteristics of each customer 1 he company is not exposed to concentration of credit risk to any
one single customer. Default on account of Trade Receivables happens when the counterparty falls to make contractual payment
within Ihe due dale.
<ir) Trade receivables consist of Work done and Billed/ Certified (RA Bills), Contract assets consist of Work done unbilled, daims and
expected certification. Generally, recoveries towards RA Bills arc received as per the terms. Further for amounts overdue are
constantly monitored by the management and provision towardsexpected credit loss are made In the books
{Hi) Tradu rocoivaWus ary unpaired m tho year whon recoverability is considered doubtful based an tho recovery analysis performed by
the company for individual trade reccivabtesor based on the interpreting on certain clauses in the Concession Agreement
(ivl Management estimates of expected credit loss for the Trade Receivables/ Contract Assets ore provided below
b. Cash and cash equivalents
The credit risk on cash and cash equivalents (excluding cash on hand) is limited because the counterparties are banks with good c/edit
ratings
c. Bank Balances other than Cash and cash equivalents
The credit nsk on Bank Balances other than Cash and cash equivalents is limited because Ihe counterparties are banks with good credit
ratings
d. Investments and Loan & advances
Investments and Loans are with group company in relation to the project execution hence the audit risk is very limited. Where Management
estimates any major risk with respect to Its recovery, financial loss on such loan6 provided are estimated and impaired.
C. Liquidity Risk
Liquidity risk refers to tho risk dial thu Company cannot meet its financial obligations. Tho objective of liquidity risk management is lo
maintain sufficient liquidity and onsure float funds are avails Wo for use as per requirements. The Company also constantly monitors funding
options available in the dob! and capital markets with a view to maintain financial flexibility This note should be read along with note 1 about
commencement of CIRP.
The table below summarizes the maturity profile remaining contractual maturity period at the balance sheet dale for its financial liabilities
basedonfhauncftscountedcash flows.___'__
c) These plans typically expose the Company to actuarial risks such as: investment risk, longevity risk and salary risk
Investment risk
The present value of the defined benefit plan liability is calculated using a discount rale determined by loferonco to the market yields on
government bonds denominated in Indian Rupees If the actual return on plan assot is below this rate, it will create a plan deficit.
Longevity risk
The present value of the defined benefit plan liability is calculated by reference to Ihe best eslimate of the mortality ol jrlan participants tiotn
during and after then employment. An increase in Uie life expectancy of the plan participants will increase the plan s liability
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an
ncrease in the sa'ary of the plan participants will increase the plan's lability
Regulatory Risk
Legislative nsk is the nsk of increase in Ihe plan liabilities or reduction in the plan assets due to change in the legislation / regulation The
government may amend tee Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees This will directly
affect the present value of the Defined Benefit Obligation
d) Compensated Absences
During the financial year, the Company has provided for additional Employee benefit scheme in Ihe nature of compensated absences.
(i) Amount recognised in the Balance Sheet
42. Others
(a) Tho balances of trade roca'ivablGs including retention money, trade payables (Including MSME). loans andadvances and other liabilities
aro subject to confirmation/roconciliabon Managemoni belmves that no material adjustments would be required in books of account upon
receipt of these confirmations and that there will not be any material impact on profit for the year and also on 3tatc of affairs as at March 31,
2026.
b) Certain statutory dues (including GST/ VAT/ PF/ TDS. etc.) could not be paid on due dates due to cash flow issues in the eanier years
Those dues had been remitted to the concerned statutory authorities in tne preceding year Delayed payment charges (including interest
and oenahies hvhich are not ascertainable as of the year end. will be accounted for asand when the same is demanded and settled > paid
c) During tlte current year as per the past practice, the Company has assessed trie financier Impact on account of prolongation of tlie
contracts' tenure which were due lo reasons beyond the Company's control snd the Management is confident of completing such projects
without incurring any additional cost beyond what has been estimated and thatchance of incurring liquidated damages is remote.
43. Subsequent Events
There aro no significant subsoquent ovonts that would require adjustments or disclosures in tho financial statements as on tho balance sheet
dato
44. Corporate social responsibility
The Company in view of losses incurred in the past years is not required to spend any amount towards Corporate Sonal Responsibility for the
yearended March 31.2028.
45. Details of Benami Property Held
No proceedings have been initiated on or are pending against any of the entities in the Group for holding benami property under the Benami
Transactions (Prohibition) Act, 1988(45 of I988)and Rules made thereunder
46. Wilful Defaulter
T he Company has not boon declared wilful dcfaullur by any bank or financial institution or government or any govern muni authority
47. Relationship with Struck off Companies
The Company has no transactions with the companies struck off under Companies Act. 2013 or Companies Act, 1956
48. Details of Crypto Currency or Virtual Currency
The Company has nol traded or invested in crypto currency or virtual currency dunng Ihe current orprevlouB year
49. Compliance with number of Layers of Companies
The Company has complied with the number of layers prescribed under the Companies Act. 2013
50. Undisclosed Income
There is no income surrendered or disclosed as income during the currenl or previous year in tne tax assessments under tho Income Tax Act.
1961, that has not been recorded in the books of account
51. Valuation of Property. Plantand Equipment
The Company has not revalued its property, plant and equipment during the current or previous year
52 The Company Is in the process of reconciling the monthly returns filed under the Central Goods and Services Tax Act 2017 (‘CGST Act") and
the respective State Goods and Services Tax Act with its books and records lo file the annual return for FY 2025-26. Similarly, Ihe reconciliation
of refund receivable for the current year between the books of account and Form 26AS is in progress. Adjustments, if any. consequent to the
said reconciliation will be given effect to in the flnananl statements on completion of reconciliation and filing of returns However, in Ihe opinion
of Ihe Management. Ihe Impact of Ihe same wifi no! be malenal
53 The Company has not advanced or loaned or invested funds to any other persons or entities, including toreign entities (Intermedianos) with the
understanding that the Intermediary shall;
a directly or .ndirecUy tend or invest mother persons or antit>e3 identified In any manner whatsoever by or on behaif of the Company (Ultimate
Beneficiaries), or
b. provide any guarantee, security or the like to or on behaif of tho ultimate benoficiarios
The Company nas not received any fund from any persons or entities, including foreign entities {Funding Party) with the
understanding! whether recorded in writing orothorwise) that the Company shall:
a 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
b provide any guarantee, security or the like on behalf of the ultimate beneficianes
Reason for Variances:
1 Incroasc duo to additions In bank balances, trade receivables. Investments m3dc during tho year and reduction m employee related payables.
2. Due to increase in operations during the year.
3. Increase in turnover during the year
4. Capital employed includes exceptional items which is not covered under PBIT.
5. Investments made in Non-convertible Debentures during theyear
55. The company uses Citrix ERP as the accounting software and is in the process of installing the feature of recording Audit Irail of each and
every transaction, creating an audit log of each change mode in the books of accounts along with the date when such changes were rrtado
which also ensures that the audit trail cannot be disabled and the Company is In the process of migrating to a new appl-carion software in the
ensuing financial year, where the same will be enabled
56. Comparatives
Pre-nous year figures have been re-grouped' re-classified wherever necessary to conform to current year s presentation
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