3.15 Provisions, contingent assets and contingent liabilities
The company recognizes a provision when there is a present obligation as a result of a past
event that probably requires an outflow of resources and a reliable estimate can be made of the
amount of the obligation. These provisions are reviewed at the end of each reporting date and
are adjusted to reflect the current best estimates. The Company uses significant judgement to
disclose contingent liabilities.
Contingent liabilities are 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 to settle the obligation or a reliable estimate of the amount cannot be made. Contingent
Liability or Contingent assets are disclosed in Note 35 of the standalone financial statement.
3.16 Earning per Equity Share
Basic earnings per equity share is calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted average number of equity shares outstanding
during the period. The weighted average number of equity shares outstanding during the period
is adjusted for events including a bonus issue, bonus element in a rights issue to existing
shareholders, share split and reverse share split (consolidation of shares), if any. For the purpose
of calculating diluted earnings per equity share, the net profit or loss for the period attributable
to equity shareholders and the weighted average number of shares outstanding during the period
are adjusted for the effects of all dilutive potential equity shares. The company has disclosed
earning per share in Note 34 of the standalone financial statement.
3.17 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted
for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
receipts or payments. In the cash flow statement, cash and cash equivalents includes cash in
hand, cheques on hand, balances with banks in current accounts and other short- term highly
liquid investments with original maturities of 3 months or less, as applicable.
3.18 Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying
asset are capitalised during the period of time that is necessary to complete and prepare the asset
for its intended use or sale. Other borrowing costs are expensed in the period in which they are
incurred and reported in finance costs
3.19 Significant management judgment in applying accounting policies and estimation
uncertainty
When preparing the financial statements, management makes a number of judgments, estimates
and assumptions about the recognition and measurement of assets, liabilities, income and
expenses.
(A) Significant management judgment
The following are significant management judgments in applying the accounting policies of
the Company that have the most significant effect on the financial statements.
• Recognition of construction contract revenues
Recognising construction contract revenue requires significant judgement in
determining actual work performed and the estimated costs to complete the work.
• Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of
the probability that future taxable income will be available against which the deductible
temporary differences and tax loss carry-forwards can be utilised. In addition,
significant judgment is required in assessing the impact of any legal or economic limits
or uncertainties in various tax jurisdictions.
(B) Estimation Uncertainity
Information about estimates and assumptions that have the most significant effect on
recognition and measurement of assets, liabilities, income and expenses is provided below.
Actual results may be substantially different.
• Impairment of non-financial assets
In assessing impairment, management estimates the recoverable amount of each asset
or cash- generating units based on expected future cash flows and uses an interest
rate to discount them. Estimation uncertainty relates to assumptions about future
operating results and the determination of a suitable discount rate.
• Defined Benefit Obligation (DBO)
Management’s estimate of the DBO is based on a number of critical underlying
assumptions such as attrition rate, mortality, discount rate and anticipation of future
salary increases. Variation in these assumptions may significantly impact the DBO
amount and the annual defined benefit expenses (as analysed in note 21)
• Useful lives of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each
reporting date, based on the expected utility of the assets. Uncertainties in these
estimates relate to technological obsolescence that may change the utility of certain
software and IT equipment.
• Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement
date. The fair value measurement is based on the presumption that the transaction to
sell the asset or transfer the liability takes place either:
i. In the principal market for the asset or liability, or
ii. In the absence of a principal market, in the most advantageous market for the
asset or liability.
Management uses valuation techniques to determine the fair value of financial
instruments (where active market quotes are not available) and non-financial
assets. This involves developing estimates and assumptions consistent with how
market participants would price the instrument. Management bases its assumptions
on observable data as far as possible but this is not always available. In that case
management uses the best information available.
Current and non-current classification
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 in the Schedule III to the
Companies Act, 2013.
Considering the nature of business activities of the Company, the time between
deploying of resources for projects / contracts and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as twelve months for the
purpose of current or noncurrent classification of assets and liabilities.
3.20 Related Party Transactions
Disclosure is being made separately for all the transactions with related parties in Note 39 of
the financial statement as specified under IND AS 24 "Related Party Disclosure” issued by the
Institute Chartered Accountants of India. All the transactions with related party are at arm length
price.
3.21 Segment Reporting
The Company is engaged in the business of construction of Building, Transmission line providing
turnkey services in water and wastewater collection, treatment and disposal and manufacturing
of own items which are used for construction purposes.Information is reported to and evaluated
regularly by the Co-operational Decision Maker (CODM) i.e. Managing Director for the purpose
of resource allocation and assessing performance focuses on the business as whole. The CODM
reviews the Company's performance focuses on the analysis of profit before tax at an overall
entity level. Accordingly, there is no other separate reportable segment as defined by IND AS 108
"Operating Segments”.
3.22 Recent Accounting Pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
Key amendments to Indian Accounting Standards (Ind AS) which are applicable for the year
ended 31st March 2026 are as follows:
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
Key amendments to Indian Accounting Standards (Ind AS) which are applicable for the year
ended 31st March 2026 are as follows:
A) Amendments to Ind AS 1 - Classification of Liabilities as Current or Non-current and Non¬
current Liabilities with Covenants
The Ministry of Corporate Affairs notified amendments to paragraphs 69 to 76 of Ind AS 1
Presentation of Financial Statements to specify the requirements for classifying liabilities as
current or non-current. The amendments clarify:
What is meant by a right to defer settlement¬
- That a right to defer must exist at the end of the reporting period
- That classification is unaffected by the likelihood that an entity will exercise its deferral
right
- That only if an embedded derivative in a convertible liability is itself an equity instrument
would the terms of a liability not impact its classification
In addition, a requirement has been introduced to require disclosure when a liability arising
from a loan agreement is classified as non-current and the entity’s right to defer settlement
is contingent on compliance with future covenants within twelve months. The amendments
are effective for annual reporting periods beginning on or after 1 April 2025 and must be
applied retrospectively. The Company is currently assessing the impact the amendments will
have on current practice and whether existing loan agreements may require renegotiation.
The company has considered the impact of this amendment on the financial statement.
B) Amendments to Ind AS 7 and Ind AS 107 - Supplier Finance Arrangements
The Ministry of Corporate Affairs notified amendments to Ind AS 7 Statement of Cash
Flows and Ind AS 107 Financial Instruments: Disclosures to clarify the characteristics of
supplier finance arrangements and require additional disclosure of such arrangements.
The disclosure requirements in the amendments are intended to assist users of financial
statements in understanding the effects of supplier finance arrangements on an entity’s
liabilities, cash flows and exposure to liquidity risk. The amendments will be effective for
annual reporting periods beginning on or after 1 April 2025. There is no impact of this
amendment on the financial statement.
C) Amendments to Ind AS 21 - Lack of exchangeability
The MCA notified amendments to Ind AS 21 The effects of changes in foreign exchange
rates to specify how an entity should assess whether a currency is exchangeable and how it
should determine a spot exchange rate when exchangeability is lacking.
The amendments also require disclosure of information that enables users of its Ind AS
financial statements to understand how the currency not being exchangeable into the other
currency affects, or is expected to affect, the entity’s financial performance, financial position
and cash flows. The amendments are effective for annual reporting periods beginning on or
after 1 April 2025. When applying the amendments, an entity cannot restate comparative
information. There is no impact of this amendment on the financial statement.
D) Amendments to Ind AS 116 Leases - Lease Liability in a Sale and Leaseback
The MCA notified the Companies (Indian Accounting Standards) Second Amendment
Rules, 2024, which amend Ind AS 116, Leases, with respect to Lease Liability in a Sale and
Leaseback. The amendment specifies the requirements that a seller-lessee uses in measuring
the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does
not recognise any amount of the gain or loss that relates to the right of use it retains. There
is no impact of this amendment on the financial statement.
E) Ind AS 117 Insurance Contracts
The Ministry of Corporate Affairs (MCA) notified the Ind AS 117, Insurance Contracts, vide
notification dated 12 August 2024, under the Companies (Indian Accounting Standards)
Amendment Rules, 2024.
Ind AS 117 Insurance Contracts is a comprehensive new accounting standard for insurance
contracts covering recognition and measurement, presentation and disclosure. Ind AS 117
replaces Ind AS 104 Insurance Contracts. Ind AS 117 applies to all types of insurance
contracts, regardless of the type of entities that issue them as well as to certain guarantees
and financial instruments with discretionary participation features; a few scope exceptions
will apply. Ind AS 117 is based on a general model, supplemented by:
• A specific adaptation for contracts with direct participation features (the variable fee
approach)
• A simplified approach (the premium allocation approach) mainly for short-duration
contracts.
There is no impact of this amendment on the financial statement.
F) International Tax Reform Pillar Two Rules - Amendments to Ind AS 12 Income Taxes
The OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS) addresses
the tax challenges arising from the digitalization of the global economy to ensure profits
are taxed where economic activities take place and value is created. In August 2025, the
Ministry of Corporate Affairs (MCA) amended Ind AS 12 to clarify its application to income
taxes arising from tax law enacted or substantively enacted to implement the BEPS Pillar
Two model rules. The amendments introduce:
A mandatory temporary exemption to the accounting of deferred taxes arising from the
jurisdictional implementation of the Pillar Two model rules.
Disclosure requirements for affected entities to help users of financial statements better
understand an entity’s exposure to Pillar Two income taxes arising from that legislation.
There is no impact of this amendment on the financial statement.
Notes:
(i) The carrying amount of the current trade receivable is considered a reasonable approximation
of fair value as is expected to be collected within twelve months, such that the effect of any
difference between the effective interest rate applied and the estimated current market rate is not
significant. There are no receivables due from directors or other officers of the Company.
(ii) All of the Company’s trade receivables have been reviewed for indicators of impairment.
(iii) The Company has provided for expected credit loss on its trade receivables using a provisioning
matrix and specific provisioning, where appropriate, representing expected credit losses based on
a range of outcomes.
(e) Terms/rights attached to equity shares
The Company has issued only one class of equity shares having a face value of Rs 10/- per
share. Each holder of equity shares is entitled to one vote per share.The Company declares
and pays divdend in Indian rupees. The dividend proposed by the Board of Directors, if any, is
subject to the approval of the shareholders in the ensuing Annual General Meeting. 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 all preferential amounts, if any.. The distribution will
be in proportion to the number of equity shares held by the shareholders.
(f) Equity Shares movement during the 5 years preceding March 31,2026
The Board of Directors of the company, at its meeting held on February 27,2026 has approved
a proposal to increase authorised share capital to Rs 70,00,00,000/-(Rupees Seventy
Crore only) divided into 7,00,00,000 (Seven Crore) Equity Shares of Rs 10/- each from Rs
60.00. 00.000/-(Rupees Sixty Crore only) divided into 6,00,00,000 (Six Crore) Equity Shares of
Rs 10/. The shareholders in the Extraordinary general meeting held on March 23, 2026 have
approved to increase authorised share capital by way of Ordinary resolution.
The Company has made Initial Public Offering of 15224925 (Fresh Issue of 6930807 equity shares
and Offer for Sale of 8294118 equity shares) of Rs. 10/- each at premium of Rs. 201/- per share
aggregating to Rs. 32124.59 Lakhs out of which Rs.14624.00 Lakhs in the Company & Rs.17500.59
Lakhs through OFS on 08th September, 2023. The issue closed on 12th September, 2023 and was
over-subscribed 76.21 times. The equity shares are listed on National Stock Exchange of India
Limited (NSE) and BSE Limited (BSE) on 21st September, 2023. The Company has been alloted
1600000 equity shares of face value of Rs 10/- each under Pre- IPO (Private Placement) each at
premium of Rs 201/- per share aggregating to Rs 3376.00 Lakhs on 18 July,2023.
The Board of Directors of the company, at its meeting held on March 14,2023 has approved a
proposal to increase authorised share capital to Rs 60,00,00,000/-(Rupees Sixty Crore only)
divided into 6,00,00,000 (Six Crore) Equity Shares of Rs 10/- each from Rs 20,00,00,000 (Twenty
Crore) divided into 2,00,00,000 (Two Crore ) Equity Shares of Rs 10/- each and to issue number
of bonus shares of 3,52,50,000 (Three Crore Fifty Two lakh Fifty Thousand) (against existing
1,17,50,000 (One Crore Seventeen Lakh Fifty Thousand) total equity shares existing as fully paid
up in the company in the ratio of 3:1. The shareholders of the company have approved increase
in authorised share capital and bonus share issue on 15 March,2023.
The Board of Directors of the company, at its meeting held on Dec 23,2022 has approved a
proposal to increase authorised share capital to 20,00,00,000/-(Rupees Twenty Crore only)
equity shares divided into 2,00,00,000 (Two Crore) Equity Shares of Rs 10/- each from Rs
15.00. 00.000/-(Rupees Fifteen Crore only) divided into 1,50,00,000 (One Crore Fifty Lacs only).
The shareholders of the company have approved increase in authorised share capital on Dec
31,2022.
Vehicles Loan from HDFC Bank, which is secured by way of hypothecation of Motor Car. Repayable in
60 monthly installments commencing from 5th December, 2023.
Note 19.2
Vehicles Loan from HDFC Bank, which is secured by way of hypothecation of Motor Car. Repayable in
60 monthly installments commencing from 7 th August,2024
Note 19.3
Commercial Equipment Loans from HDFC Bank at an interest rate of 9.06% per annum which is
repayable in 48 monthly installments commencing from 15th J anuary 2025 and secured by hypothecation
of Commercial Equipments.
Note 19.4
Commercial Equipment Loan from HDFC Bank at an interest rate of 9.12% per annum which is repayable
in 48 monthly installments commencing from 15th January 2025 and secured by hypothecation of
Commercial Equipment
Note 19.5
Commercial Equipment Loan from HDFC Bank at an interest rate of 9.23% per annum which is repayable
in 48 monthly installments commencing from 15th January 2025 and secured by hypothecation of
Commercial Equipment
Note 19.6
Project Loan from HDFC Bank at an interest rate of 9.28 % per annum which is repayable in 60 monthly
installments against Project - Vikasnagar for development of Water Supply and Sewerage System with
term of work of 48 months and 18 years of O&M, which commences from 26th September 2024
Note 19.7
Rupee Term Loan against Property from ICICI Bank sanctioned of Rs 3000 Lacs out of which Rs 2417.57
Lacs are disbursed at an interest rate of 8.85% p.a which is repayable in 120 monthly installments
against which Property of R-5/42, Raj Nagar, Ghaziabad is hypothecated and personal guarantee of
Ashish Tomar and Ramveer Singh is also obtained, which commences from 24th September 2025
Note 19.8
Cash Credit Limit from Punjab National bank is secured by 1st pari-passu charge over entire current
assets of the company inluding stocks and receivables both present and future with other lenders under
Multi Banking Arrangement and Collateral Security of Hypothecation of Properties a) Commercial
Office Space bearing no JA-0701,7th Floor, DLF Tower, Jasola, New Delhi, Area- 134.385 Sq mtrs. b)
Leasehold Residential House on Plot No, 120, Block-C, Sector-52, Noida -162 Sq mtrs, Owner- Meena
Singh. c) FDR lien with bank with accrued Interest and Personal guarantee of Mr Ramveer Singh, Mr
Ashish Tomar , Ms Kritika Tomar , Ms Meena Singh as per Sanction Letter dated 10.03.2026.
Note 19.9
Cash Credit Limit from Indusind Bank is secured by Pari Passu charge on entire current assets of the
company including stocks, book debts, cash and other current assets in multiple banking arrangement
and Collateral security of Hypothecation of Residential Plot No R-10/162, Sector -10, Raj Nagar of
Canary Infrastructure Private Limited and Personal guarantee of Ramveer Singh, Ashish Tomar ,
Kritika Tomar and Corporate Guarantee of Canary Infrastructure Private Limited as per Sanctiion
Letter dated 05.05.2025.
Cash Credit Limit from Axis Bank is secured by 1st Pari Passu Charge on entire current assets of the
Company and exclusive charge on Cash Collateral to ensure 15 % in case of Bank Guarantee & 25%
in case of CC along with 10% cash Margin on BG and personal guarantee of Ramveer Singh, Ashish
Tomar and Kritika Tomar as per sanction letter dated 26.09.2025 & 11.09.2024
Note 19.11
Cash Credit Limit from Kotak Mahindra Bank is secured by Extension of first pari-passu charge on
all existing and future current assets of the company in Multi Banking Arrangement and Collateral
Security in the form of Plot No 016, Block B, Sector 93B, Noida, District Gautam Buddh Nagar owned
by EMS Infrastructure Private Limited as per sanction letter dated 10.12.2024.
Note 19.12
Cash Credit Limit from CSB Bank is secured by 1st pari-passu charge over entire current assets of
the company including stocks and receivables and Collateral Security of Hypothecation of Properties
- Residential property/ Commercial Property/ FDR with cover of 7.50% exposure level and Personal
guarantee of Mr Ramveer Singh, Mr Ashish Tomar , Ms Kritika Tomar as per Sanction Letter dated
05.08.2025.
Note 19.13
Cash Credit Limit from Yes Bank is secured by 1st pari-passu charge over entire current assets of the
company including stocks and receivables , Exclusive Charges on Fixed Deposits duly lien marked
in favour of Bank and First Pari Passu charge on IMFA located at Leasehold Industrial Property/Plot
no A-2, Land area measuring 17665.55 sq meters situated within the Industrial Area at Site -III (3)
,Meerut Road, Pargana/ Tehsil and District Ghaziabad . U.P along with Unconditional and irrevocable
personal guarantee of Mr. Ramveer Singh, Mr. Ashish Tomar and Ms. Kritika Tomar as per sanction
letter dated 10.06.2026.
Note 19.14
Cash Credit Limit from HDFC Bank is secured by First Pari Passu basis on Current Assets viz Stocks
of Raw Material, Stock in Process , Finished Goods, Consumable Stores & Spares and Book Debts,
receivables of the compay both present and future and personal guarantees of Mr Ramveer Singh &Mr
Ashish Tomar along with First Pari Passu Charge by way of equitable mortgage on the property - Plot
No A/2, Pargana/ Tehsil & District Ghaziabad , near Hamdard Company, Ghaziabad as per sanction
letter dated 28.03.2024 & 26.03.2025.
(a) Defined Benefit Plans
Gratuity & Leave Encashment
The Company operates a defined benefit gratuity plan for its employees. The gratuity scheme
provides for lump sum payment to vested employees at retirement/death while in employment
or on termination of employment of an amount equivalent to 15 days salary payable for each
completed year of service or part thereof in excess of 6 months subject to a limit of INR 20.00
lakhs (March 31, 2025: INR 20.00 lakhs)
(1) The discount rate is based on the prevailing market yield of Indian Government
Securities as at Balance Sheet date for the estimated term of obligation.
(2) The estimate of future salary increase considered in actuarial valuation takes into
account inflation, seniority, promotion and other relevant factors such as supply and
demand in the employment market.
(v) Sensitivity Analysis
The sensitivity of the defined benefit obligation to changes in the weighted principal
assumptions is :
The above sensitivity analyses are based on a change in an assumption while holding all
other assumptions constant. In practice, this is unlikely to occur, and changes in some of
the assumptions may be correlated. When calculating the sensitivity of the defined benefit
obligation to significant actuarial assumptions the same method i.e. projected unit credit
method has been applied as that used for calculating the defined benefit liability recognised
in the balance sheet.
v) Risk Exposure
The defined benefit obligations have the undermentioned risk exposures :
Interest rate risk : The defined benefit obligation calculated uses a discount rate based on
government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary Inflation risk : Higher than expected increases in salary will increase the defined
benefit obligation.
Demographic risk : This is the risk of variability of results due to unsystematic nature of
decrements that include mortality, withdrawal , disability and retirement. The effect of these
decrements on the defined benefit obligation is not straight forward and depends upon the
combination of salary increase, discount rate and vesting criteria.
Investment risk : The present value of the defined benefit plan liability is calculated using a
discount rate determined by reference to high quality corporate bond yields; if the return on
plan asset is below this rate, it will create a plan deficit.
vi) Defined benefit liability and employer contributions
The weighted average duration of the defined benefit obligation is 33.63 years (March 31,
2025 : 33.27 years )
B) Defined Contribution Plan
The Company has a defined contribution plan in respect of provident fund. Contributions
are made to provident fund and employees state insurance in India for employees at
the rate as prescribed in the regulations.The obligation of the group is limited to the
amount contributed and it has no further contractual nor any constructive obligation.
The Company has recognized the following amounts towards defined contribution plan
in the Statement of Profit and Loss -
b) Based on Timing of revenue recognition
Revenues from construction contracts and operation & maintenance contracts are recognised
on ‘Over a point in time’ basis and ‘At a point in time’ basis respectively.
c) Transaction price allocated to the remaining sales contracts
Revenues expected to be recognised in the future related to performance obligations that are
unsatisfied or partially unsatisfied as at March 31, 2026 amounting to INR 208038 Lakhs.
Construction contracts are progressively executed over a period of upto 3 years and based
on specific project schedules. Operation and maintenance contracts are expected to be
executed over a period of 1 to 20 years.
NOTE: 36: Segment Reporting
The Company is engaged in the business of construction of Building , Transmission line , providing
turnkey services in water and wastewater collection, treatment and disposal and manufacturing of
own items used for construction purposes. Information is reported to and evaluated regularly by the
Coperational Decision Maker (CODM) i.e. Managing Director for the purpose of resource allocation
and assessing performance focuses on the business as whole. The CODM reviews the Company's
performance focuses on the analysis of profit before tax at an overall entity level. Accordingly, there is
no other separate reportable segment as defined by IND AS 108 "Operating Segments”
Note No : 41A) FINANCIAL RISK MANAGEMENT
The Company’s principal financial liabilities comprises of borrowings, trade payables, other
payables and other financial liabilities . The main purpose of these financial liabilities is to finance
the Company’s operations. The Company’s principal financial assets include loans, trade and
other receivables, and cash and cash equivalents that derive directly from its operations. The
Company also holds investments.
The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior
management oversees the management of these risks. The Company’s senior management
ensures that the 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 policies and risk objectives. It is the Company’s policy that no trading in derivatives
for speculative purposes may be undertakenThe Board of Directors reviews and agrees policies
for managing each of these risks, which are summarised below.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will
fluctuate because of changes in market prices. Market risk comprises three types of risk:
interest rate risk, currency risk and other price risk, such as equity price risk. Financial
instruments affected by market risk include loans and borrowings.
The Company has no direct exposure to foreign currency risk.
- 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. The Company has fixed deposits as margin money for
a period between 3 months to exceeding 12 months. All the fixed deposits are with banks,
accordingly there is no significant interest rate risks pertaining to these deposits.
Interest rate sensitivity
The following table illustrates the sensitivity of profit and equity to a reasonably possible
change in interest rates of /- 1% for the year ended March 31, 2026 (March 31, 2025:
/- 1%). These changes are considered to be reasonably possible based on observation of
current market conditions. Sensitivity calculations are based on a annualised interest cost
on the borrowings at floating rate as of the reporting dates March 31, 2026 and March 31,
2025 . All other variables are held constant.
(b) Credit risk
Credit risk is the risk that counterparty 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 investments, deposits with banks and financial institutions and other
financial instruments.
(i) Trade receivables
The Company’s customer profile include public sector enterprises. Accordingly , the
Company’s customer credit risk is very low. The Company’s average project execution
cycle is around 18 to 36 months. General payment terms include mobilisation advance,
monthly progress payments with a credit period ranging from 45 to 90 days and certain
retention money to be released at the end of the project. In some cases, retentions are
substituted with bank guarantees. The Company has a detailed review mechanism
of overdue customer receivables at various levels within the organisation to ensure
proper attention and focus for realisation.
(c) Liquidity risk
Liquidity risk is the risk that the Company may encounter difficulty in meeting its present
and future obligations associated with financial liabilities that are required to be settled by
delivering cash or another financial asset. The Company’s objective is to maintain a balance
between continuity of funding and flexibility through the use of bank overdrafts, bank loans
and finance leases. The Company closely monitors its liquidity position and deploys a robust
cash management system. It aims to minimise these risks by generating sufficient cash flows
from its current operations, which in addition to the available cash and cash equivalents
and sufficient committed fund facilities, will provide liquidity.The liquidity risk is managed
on the basis of expected maturity dates of the financial liabilities. The carrying amounts are
assumed to be reasonable approximation of fair value.
The table below summarises the maturity profile of the Company’s financial liabilities based
on contractual undiscounted payments.
B) Capital management
For the purpose of the Company’s capital management, capital includes issued equity capital,
compulsorily convertible preference shares, securities premium and all other equity reserves
attributable to the equity holders. The primary objective of the Company’s capital management
is to maximise the shareholder value.The Company manages its capital structure and makes
adjustments in light of changes in economic conditions and the requirements of the financial
covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total
capital plus net debt. The Company’s policy is to keep the gearing ratio between 0% and 25%. The
The Company’s overall strategy remains unchanged from previous year. The funding requirements
are met through a mixture of equity, internal fund generation.
The Company monitors capital on the basis of the gearing ratio which is net debt divided by total
capital (equity plus net debt).
Net debt are non-current and current debts as reduced by cash and cash equivalents, other
bank balances and current investments. Equity comprises all components including other
comprehensive income.
C) Dividend
The final dividend,if any, on shares will be recorded as a liability on the date of approval by the
shareholders and interim dividends are recorded as a liability on the date of declaration by the
Company’s Board of Directors.
The Company declares and pays dividends in Indian rupees. Company is required to pay/distribute
dividend after deducting applicable withholding income taxes. The remittance of dividends out
side India is governed by Indian law on foreign exchange and is also subject to withholding tax
at applicable rates. The Board of Directors in their meeting on 28th May,2025 declared an final
dividend of Rs 1.50- per equity share. This results in net cash outflow of Rs 832.96 Lacs during
the year.
(A) The Company has not been declared a wilful defaulter by any bank or financial institution or
consortium thereof in accordance with the guidelines on wilful defaulters issued by the RBI.
(B) The Company has advanced, loaned any fund to/from any person or entity for lending or
investing but has not provided guarantee except to Joint Ventures/ Subsidiaries to/on behalf of
the ultimate beneficiary during the reporting years. The Company has issued Bank Guarantee on
behalf of Mirzapur Ghazipur STPs Private Limited and also given corporate guarantee to the bank
for Mirzapur Ghazipur STPs Private Limited.
(C) There is no charges which is to be registered or to be satisfied but there are certain charges which
is yet ot be satisfied with roc after repayment of loans and management is pursuing for the same
as told by them.
(D) The company has working capital limit and is required to submit statements with banks and
other financial institutions, the statement submitted to the bank is in agreement with the books
of account as told by the management of the company.
(E) No proceedings have been initiated or pending against the Company for holding any Benami Property
under the Benami Transactions ( Prohibitions) Act, 1988 and the rules made thereunder.
(F) No transactions have been found which were not recorded in the books of accounts or that has
been surrendered or disclosed as income during the year in the tax assessments.
(G) The company does not have any relationship with companies struck off (as defined by Companies
Act, 2013) and did not enter into transactions with any such company for the quarter and nine
months ended 31st March 2026.
(H) The company has not traded or invested in Crypto currency or Virtual Currency during the
financial year.
(I) Balance of Trade Receivables, Other Non Current Assets, GST Recoverable & Payable, Advances
to related parties, Suppliers & Others, Security Deposits (Received) & (Paid), Other Current &
Non Current Financial Assets , Other Financial Liabilities ,Trade Payables and Inventories have
been taken at their book value and are subject to confirmation and reconciliation. . Cost of Sales
& Services as well as Gross Turnover as per GST Returns, GST Payable/ Recoverable have been
taken at their book value and are subject to confirmation and reconciliation. Provision for Interest
on Delayed Payment of MSME creditors under Section 22 of the MSME Act, 2006, if any, made to
concerned MSME creditors has been made by the management of the company.
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