Terms Rights attached to equity shares
The Company has only one class of shares referred to as equity shares having a par value of Rupees 10 per share. Each holder of equity shares is entitled to one vote per
The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Note:12-e
During the FY 2024-25, the Company has raised Equity Share capital by issuing 30,77,800 Equity Shares as fully paid-up on preferential basis. During PY 2023-24, the Company has allotted 7,92,769 Equity Shares as fully paid-up by way of conversion of Share warrants issued on preferential basis into Equity Shares
2) For the period of five years immediately preceding the date as at which Balance Sheet is prepared the Company has:
(i) Not allotted any shares in pursuance to contract(s) without payment being received in Cash.
(ii) Not bought back any shares.
B. Fair Value Measurements
Fair Value Hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian Accounting Standard. An explanation of each level is as follows:
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets or identical assets and liabilities.
Level 2: The fair value of financial instruments that are not traded in an active market (like forward contracts) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entityspecific estimates. If all significant inputs required to fair value as instrument are observable, the instrument is included in level 2
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities etc. included in level 3.
Valuation techniques used to determine fair value
The fair value of the quoted investment is determined using traded quoted bid prices in an active market.
The fair value of unquoted investments is determined using inputs other than quoted prices included in level 1 that are observable for assets and liabilities.
Financial risk management
The Company has exposure to the following risks arising from financial instruments:
Credit Risk
• Trade Receivables
• Other Financial Instruments
Liquidity Risk Market Risk
• Interest Rate Risk
i. Risk management framework
The Company's board of directors has overall responsibility for the establishment and oversight of the Company's risk management framework. Management is responsible for developing and monitoring the Company's risk management policies, under the guidance of Audit Committee.
The Company's risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligation.
The Company's Audit committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit committee.
ii. Credit Risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments
a) Trade Receivables
The Company follows a ‘simplified approach' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates irrecoverable amounts based on the ageing of the receivable balances and historical experience. Receivable balances and deposit balances are monitored on a monthly basis with the result that the Company's exposure to bad debts is not considered to be material.
The Company has no significant concentrations of credit risk. It has policies in place to ensure that sale transactions are made to customers with an appropriate credit history.
The Company does not have any credit risk outside India.
iii. Liquidity Risk ( Rs in Lakhs)
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to maintain optimum level of liquidity at all times, to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt etc. at an optimised cost. Working capital requirements are adequately addressed by internally generated and borrowed funds.
The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are at floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.
iv. Market Risk
Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.
The Company's activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments such as foreign exchange contracts to manage its exposures to foreign exchange fluctuations. All such transactions are carried out within the guidelines set by the risk management committee.
The analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations, provisions and on the non financial assets and liabilities.
- 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.
Majority of borrowings of the Company are at fixed interest rate and are carried at amortised cost. They are therefore not subject to interest rate risks, since neither the carrying amount nor the future cash flows will fluctuate because off a change in market interest rates.
Cash equivalents & Other bank balances/deposits
The Company held cash equivalents and other bank balances/deposits of Rs. 6,52,40,871 at March 31, 2024 (6,52,40,871 at March 31, 2024). The cash equivalents and other bank balances/deposits are held with banks with good credit ratings.
Loans and advances
The loans and advances (including security deposits) have been to parties which are generally regular in making payments and hence the Company does not expect significant impairment losses on its current profile of outstanding advances.
Financial instruments - Fair values and risk management (continued) iv. Market Risk
Market Risk is the risk that changes in market prices- such as foreign exchange rates, interest rates will affect the Company's income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
iv (a). Currency risk:
The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupees ("Rs.”). Company does not have any foreign currency transaction. Accordingly, the Company is not significantly exposed to any foreign currency risk.
iv (b). 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 obligations with floating interest rates.
v (b). Other
The Company does not have any Financial investment/ investment in shares that are subject to market risk. Hence, the market risk will not have any/ material effect on the company with respect to financial investments or investment in shares.
Exposure to interest rate risk
The Company's interest rate risk arises from borrowings. Borrowings taken and issued at fixed and floating rates exposes the Company to fair value and cash flow interest rate risk. The interest rate profile of the Company's interest-bearing financial instruments as reported to the management of the Company is as follows.
Financial instruments - Fair values and risk management (continued) v. Capital Management
For the purpose of the Company's capital management, capital includes issued capital and other equity reserves. The primary objective of the Company's Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.
The Company monitors capital using Adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt less cash and bank balances.
(d) Remaining performance obligations
In case of revenue from Road repair and maintenance, the Company applies the practical expedient in paragraph 121 of Ind AS 115 and does not disclose information about remaining performance obligations where the Company has a right to consideration from customer in an amount that corresponds directly with the value to the customer of the Company's performance completed to date. Accordingly, the Company recognises revenue by an amount to which the Company has a right to invoice.
Remaining performance obligations are subject to variability due to several factors such as changes in scope of contracts, periodic revalidations of the estimates, economic factors (changes in currency rates, tax laws etc). The aggregate value of transaction price allocated to remaining performance obligations is Rs 35019.77 lakh out of which 30% is expected to be recognised as revenue in the next year and the balance thereafter.
Leases disclosure pursuant to IndAS 116 Leases
The Company has taken few premises on lease.Rental contracts are made from 12 months to 60 months and are renewable by mutual consent on mutually agreeable terms. Some of these lease agreements have price escalation clauses. There are no restriction imposed by lease agreements and there are no sub leases. There are no contingent rents.
Note : 34
Employee Benefits
As required by IND AS 19 "Employees Benefits” the disclosures are as under:
Defined Contribution Plan
The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees' Pension Scheme (EPS) with the Government, and certain State plans such as Employees' State Insurance (ESI), PF and EPS cover substantially all regular employees and the ESI covers certain employees. Contributions are made to the Government's funds. While both the employees and the Company pay predetermined contributions into the provident fund and the ESI Scheme, contributions into the pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee's salary.
Defined Benefit Plans: -Gratuity:
Under the gratuity plan, the eligible employees are entitled to post -retirement benefit at the rate of 15 days salary for each year of service until the retirement or resignation with a payment ceiling of ? 20 lakhs. The Company makes annual contributions to Employees' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:
i) On normal retirement / early retirement / withdrawl / resignation:
As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service
ii) On death in service:
As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.
Death Benefit:
The Company provides for death benefit, a defined benefit plan, (the death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non - funded.
Leave Encashment:
The Company’s employees are entitled for compensated absences which are allowed to be accumulated and encashed as per the Company’s rule. The liability of compensated absences, which is non-funded, has been provided based on report of independent actuary using the "Projected Unit Credit Method”.
Accordingly aggregate of Rs 20.81 Lakhs (Pr. Yr. Rs 12.27 Lakhs) being liability as at the year end for compensated absences as per actuarial valuation has been provided in the accounts.
Explanation where variance in ratios is more than 25%
Current Ratio
Current period ratio is higher due to increase in current assets Debt Equity ratio
Current period ratio is lower due to increase in Equity share capital by way of preferential allotment of Equity Shares and Debt-Service Coverage ratio:
Current period ratio is higher due to increase in net profits accompanied with decrease in loans Return on Equity
Current period ratio is lower due to increased Equity base and no substantial increase in net profits as comapred to previous year. Trade payables turnover ratio:
Current period ratio is lower due to lower average payables in current finacial year due to utilisation of preferential issue proceeds. Net Capital Turnover ratio
Current period ratio is lower mainly due to increase in net working capital
Note : 37
Additional Regulatory Information
i) Title deeds of Immovable Property not held in name of the Company
The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the company.
ii) Revaluation of Property, Plant and Equipment
The Company has not revalued its Property, Plant and Equipment during the year.
iii) Details of loans granted to promoters, directors, KMPs and the related parties
The Company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties during the year.
iv) Capital-Work-in Progress (CWIP)
There is no expenditure incurred against Capital-Work-in Progress (CWIP) during the year.
v) Intangible assets under development:
During the year the company has invested into development of integrated software for performing Payroll related accounting activity. The total estimated cost of Development is Rs. 24.45 Lakhs and the amount paid is Rs. 14.63 Lakhs.
vi) Details of Benami Property held
There are no Benami properties held by the company and no cases of Benami properties have been initiated or pending against the name of company.
vii) Details of borrowings from banks or financial institutions on the basis of security of current assets
The Company has been sanctioned working capital during the year, from banks on the basis of security of net current assets
The management has taken requisite steps to probe into this matter. However, non-creation or non-satisfaction of charges, being relatively insignificant value, has not materially affected the Financial Statements nor the interest of financial institutions have been adversely affected.
xii) Compliance with number of layers of companies
There are no layer of companies hold or created by the company during the year.
xiii) Compliance with approved Scheme(s) of Arrangements
The company has not entered into any scheme of arrangements during the year.
xiv) Utilisation of Borrowed funds and share premium:
A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities.
B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities.
xv) Undisclosed income
The Company does not have any transaction that are not recorded in the books of accounts but it has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
xvii) Details of Crypto Currency or Virtual Currency
The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year
xviii) Previous year's figures have been re-grouped / re-classified wherever necessary, to confirm to current year's classification
viii) Utilisation of Borrowings
The company has used the borrowings taken from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.
ix) Wilful Defaulter
The company is not declared wilful defaulter by any bank or financial Institution or other lender.
x) Relationship with Struck off Companies
There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
xi) Registration of charges or satisfaction with Registrar of Companies
The company has promptly created and satisfied the charges with Registrar of Companies, against the credit facilities availed from the financial institutions, except in following cases:
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