All of the Company’s trade receivables have been reviewed for indicators of impairment. The Company has reviewed for impairment of its trade receivables using a provisioning matrix representing expected credit losses based on a range of outcomes.
Customer credit risk is managed based on the Company's established policy, procedures and control relating to customer credit risk management, pursuant to which outstanding customer receivables are regularly monitored by the management. Outstanding customer receivables are regularly monitored by the management to ensure the risk of credit loss is minimal. Credit quality of a customer is assessed based on historical information in relation to pattern of collections, defaults and credit worthiness of the customer.
c) Rights, preferences and restrictions attached to the equity shares
The Company has only one class of equity shares having a par value of? 10 each and each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors, if any is subject to the approval of the shareholders in the ensuing Annual General Meeting except interim dividend. The equity shareholders will, in the event of liquidation be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.
d) Bonus issue, buy back and issue of shares other than in cash
There were no shares issued pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years immediately preceding the year ended 31 March 2025.
(a) Capital reserve
The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company's own equity instruments to capital reserve,
(b) Securities Premium reserve
The amount received in excess of the par value of equity shares has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account.
(c) Surplus in the statement of profit and loss
Surplus in the statement of profit and loss represent the amount of accumulated earnings of the Company.
I) Categories of financial assets and financial liabilities
All financial assets are measured at amortised cost as at the reporting date. All financial liabilities are measured at amortised cost except derivative liability as at the reporting date. The company does not have any assets measured at fair value through other comprehensive income.
II) Financial risk management
The Company’s principal financial liabilities comprise of loans and borrowings, lease liabilities, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include cash, trade and other receivables that derive directly from its operations.
The Company is exposed to market risk, interest rate risk, foreign currency risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management assesses the financial risks and the appropriate financial risk governance framework in accordance with the Company’s policies and risk objectives. The Board of Directors review and agree on policies for managing each of these risks, which are summarised below.
a) Market risk
Market risk is a risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company is exposed to market risk through its use of financial instruments and specifically tointerest rate risk, which result from both its operating and investing activities.
i) 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 are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings. Hence, interest rate sensitivity is not material to the financial statements.
32 Financial instruments (Continued)
II) Financial risk management (Continued)
b) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, placing deposits, investment etc. the Company's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting period, as summarised below:
Trade receivables are typically unsecured and are derived from revenue from customer. Credit risk has been managed by the Company through proper approvals which continuously monitors the creditworthiness of the customer to whom the Company grant credit terms in the normal course of business.
The credit risk for cash and cash equivalents are considered negligible, since the counterparties are reputable banks with high quality external credit ratings.
Other financial assets mainly comprises of Security deposits and are assessed by the Company for credit risk on a continuous
c) Liquidity risk
Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.
The Company's objective is to maintain cash and bank's short term credit facilities to meet its liquidity requirements for 30-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities.
The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables.
33 Capital management
For the purpose of the Company’s capital management, capital includes issued share capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder
The company has not distibuted any dividend to its shareholders. The company monitors net debt to capital ratio i.e., total debt in proportion to its overall financing structure i.e., equity and debt. Total debt comprises of term loans and cash credits. The company manages its capital structure and makes changes to it in the light of changes in economic conditions and the risk characteristics of
a) Guarantees
Guarantees issued by bank on behalf of the Company as on March 31, 2025 is 1,01,00,000 for NTPC and 5,00,000 for one construction project.
b) Tax contingencies
The Company is subject to legal proceedings and claims,which have arisen in the ordinary course of business. These cases are pending with the Income Tax Department. The management believes that these cases will not adversely affect its financial statements. The Company does not expect any reimbursement in respect of the contingent liability and it is not practicable to estimate the timings of the cash outflows, if any, in respect of matters above, pending resolution of the arbitration/appellate proceedings and it is not probable that an outflow of resources will be required to settle the obligations/daims
36 The Company has alloted 30,09,899 convertible warrants each convertible into, or exchangeable for, 1 (one) fully paid up equity share of the company having face value of Rs 10/- each at any time within 18 months from the date of allotment of the warrants as per SEBIICDR Regulation for cash, at a price of Rs 110/- per warrant.
37 The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,
38 No proceedings have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Transactions (Prohibition) Act, 1988 (as amended) and the rules made thereunder.
39 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.
40 The company has compiled with the number of layers prescribed under clause (87) of section 2 of the companies (Restrictions on number of layers) Rules, 2017.
41 The company has not advanced or loaned or invested funds to any other persons(s) or entity (is), 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 on behalf of the company (Ultimate Beneficiaries) or
ii) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries
42 The company has not received any funds from any persons(s) or entity (ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall;
i) Directly and 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 to or on behalf of the Ultimate Beneficiaries.
43 The Company has not traded or invested in crypto currency or virtual Currency during the financial year.
44 Leases
The Company has lease contracts for office premises and these lease contracts are cancellabla/renewable for further period on mutually agreeable terms during thetenure of lease contracts. These lease contracts are classified as shortterm lease contracts under Ind AS 116.
45 Segment reporting
The Company is engaged in construction activity, this is primary business segment and also sale of material (ash). In accordance with Ind AS 108, Operating segments, the Company has only one reportable business segment which is related to construction activity. Accordingly, these financial statements are reflective of the information required for its single reportable segment during the year ended 31 March 2025 and 31 March 2024.
47 Events after balance sheet date
No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation of issue of financie statements.
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