X. PROVISIONS, CONTINGENT LIABILITIES ANDCONTINGENT ASSETS
Provisions are recognised only when:
(i) t he Company has a present obligation (legal
or constructive) as a result of a past event;
and
(ii) it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation; and
(iii) a reliable estimate can be made of the amount
of the obligation.
Provision is measured using the cash flows
estimated to settle the present obligation
and when the effect of time value of money
is material, the carrying amoun t of the
provision is the present value of those cash
flows. Reimbursement expected in respect of
expenditure required to settle a provision is
recognised only when it is virtually certain that
the reimbursement will be received.
Contingent liability is disclosed in case of:
(i) a present obligation arising from past events,
when it is not probable that an outflow of
resources will be required to settle the
obligation; and
(ii) a present obligation arising from past events,
when no reliable estimate is possible.
Contingent assets are disclosed where an
inflow of economic benefits is probable.
Provisions, contingent liabilities and
contingent assets are reviewed at each
Balance Sheet date.
Where the unavoidable costs of meeting the
obligations under the contract exceed the
economic benefits expected to be received
under such contract, the present obligation
under the contract is recognised and
measured as a provision.
Y. BORROWING COST
Borrowings cost are interest and other costs
(including exchange differences relating to
foreign currency borrowings to the extent they
are regarded as an adjustment to interest costs)
incurred in connection with the borrowing of
funds. Borrowing cost directly attributable to the
acquisition or construction of qualifying/eligible
assets, intended for commercial production are
capitalised as part of the cost of such assets.
All other borrowing costs are recognised as an
expense in the year in which they are incurred.
Z. LEASES
The Company does not have any transaction
related Ind AS 116 (Leases) during the period and
in previous year. Accordingly, Ind AS 116 is not
applicable to company.
AA. COMMITMENTS
Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:
(i) estimated amount of contracts remaining
to be executed on capital account and not
provided for;
(ii) uncalled liability on shares and other
investments partly paid;
(iii) funding related commitment to subsidiary,
associate and joint venture companies; and
(iv) other non-cancellable commitments, if any, to
the extent they are considered material and
relevant in the opinion of management.
Other commitments related to sales/procurements
mad e in the normal course of bu siness are not
disclosed to avoid excessive details.
AB. STATEMENT OF CASHFLOWS
Statement of Cash Flows is prepared segregating
the cash flows into operating, investing and
financing activities. Cash flow from operating
activities is reported using indirect method,
adjusting the profit before tax excluding exceptional
items for the effects of:
(i) changes during the period in inventories and
operating receivables and payables;
(ii) non-cash items such as depreciation,
provisions, unrealised foreign currency gains
and losses; and
(iii) all other items except the cash flow effects
from investing or financing activities.
Cash and cash equivalents (including bank
balances) shown in the Statement of Cash Flows
exclude items which are not available for general
use as at the date of Balance Sheet.
a. Refer note 45 for disclosures of related partytransactions.
b. The Company has given unsecured interest-bearing loan to its subsidiaries in lieu of equity of INR 9,765.00/- Lakh (PY
INR 5,505.00/- Lakh) carrying interest rate ranging 9.50%-10.15%. The quantum of loan to be provided/retained will be
aligned with maintaining the debt-to-equity ratio in the subsidiaries, as per the terms and conditions of the term loan
sanctioned or renewed to subsidiaries.
c. The fund has been advanced to its subsidiaries companies. Repayment of such loan is as per the terms of loan
agreement.
d. Since all loans given by the Company are unsecured and considered good, the bifurcation of loans in other categories
as required to be classified as per schedule III of the Companies Act, 2013 viz. loans receivables considered good -
Secured, Loans Receivables which have significant increase in Credit Risk; and Loans Receivables - credit impaired
considered as not applicable to the Company and hence not disclosed above. Also, there are no Expected Credit Loss
(ECL) provision on the considered good loan. Therefore relevant ECL disclosure are not provided.
e. There is no amount due from director, other officer of the Company or a firm in which any director is a partner or private
companies in which any director is a director or a member at any time during reporting year except loan to subsidiaries
where director is a director.
f. The Company has not granted loans which are either repayable on demand or are without specifying terms of
repayment, except for a loan amounting to INR 96.77 Lakh granted for business purposes carrying an interest rate of
9.65%, which is in accordance with the arm’s length policy of the Company.
a) Terms/Rights attached to Equity Shares
The Company has only one class of shares referred to as equity shares having face value of INR 10/-. Each shareholder of
equity shares is entitled to one vote per share. In the event of Liquidation of the Company, the holders of equity share will
be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be
in proportion to the number of equity shares held by the shareholders. The dividend proposed by boards is subject to the
approval of shareholders in the ensuring Annual General Meeting.
g) Pursuant to initial public offering (IPO) of 4,39,48,000 equity share, fresh issue of 3,85,80,000 equity share and offer for
sale of 52,68,000 equity share of INR 10 each were allotted at the price INR 148/- per equity share and 1,00,000 equity
share of INR 10 each, which was under Employee Reservation Portion were allotted at the price of INR 135/- per equity
Share. The Company's equity share were listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) on
29th November, 2024.
(i) The transaction cost of INR 4,622.26 Lakh recorded in the books is net of GST credit availed on such expenditure. The
said expenditure has been adjusted from securities premium. (Refer note 21).
(ii) The balance unutilised amounts have been parked in fixed deposits amounting to INR 5,834.45/- Lakh (including
accrued interest). Refer note 16.
h) As per the record of company, including its register of shareholder/members and other declarations received from
shareholders regarding beneficial interest. The above shareholding represents both legal and beneficial ownerships of
shares.
Nature and Purpose of reserves
1. Security Premium:- The amount received in excess of face value of the equity shares is recognised in security
premium. The reserves will be utilised in accordance with the specific provisions of the Companies Act, 2013. The
issue expenses of securities which qualify as equity instruments are written off against security premium.
2. Retained Earnings:- Retained earnings represents undistributed profits of the Company which can be distributed to its
equity shareholders in accordance with Companies Act, 2013.
3. Remeasurement of Defined Benefit Plans: Other Comprehensive Income (OCI) reserve represent the balance in
equity for items to be accounted in OCI. OCI is classified into:
(i) items that will not be reclassified to profit and loss, and
(ii) items that will be reclassified to statement of profit and loss.
Notes:- The Company has taken interest-bearing loan carrying interest rate ranging 7.50%-11%.Secured Vehicle loans from banks and financial institution
All vehicles loans are secured by hypothecation of respective vehicles financed though the loan arrangements
Vehicle loans availed till 31st October, 2024 amounting to INR 104.43 Lakh/- are secured by way of Unconditional, irrevocable
and continuing personal guarantee of Mr. Sanjay Jain and Mr. Manish Jain (Directors of the Company).
Secured Machinery loans from banks and financial institution
All Machinery loans have been obtained for financing the construction equipment purchased and are secured by
hypothecation of respective equipment purchased out of loan.
Machinery loans availed till 31st October, 2024 amounting to INR 883.32/- are secured by way of Unconditional, irrevocable
and continuing personal guarantee of Mr. Sanjay Jain and Mr. Manish Jain (Directors of the Company)
Financial Covenants:
The Company has satisfied all the financial covenants prescribed in terms of respective loans agreement as at the reporting
date. The Company has not defaulted in any loan payment during the year.
1. PNB - First Parri passu hypothecation of Raw Material, Work in progress, Finished goods, stores and spares used in
design, supply, construction, erection and commissioning of water and waste treatment plants, all receivables, security
deposit, advance to suppliers and other current assets of the Company both present future along with ICICI Bank,
AU Small Finance Bank Ltd., IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Federal Bank, Axis Bank, IDBI Bank
& IDFC Bank and further secured by Property, Plant and Equipments of the Company as well as personal guaranteed
by Directors (Mr. Manish Jain and Mr. Sanjay Jain) and equitable mortgage of directors i.e., Mr. Sanjay Jain property
and property of Mrs Shachi Jain W/o of Mr Manish Jain (upto the extent of the value of mortgaged property). Collateral
security of INR 20.00 crore is pledge with bank for fund based and non fund based limit.
ROI range during the reporting year: 8.50% to 11.00%.
2. I CICI Bank - First and pari-passu charge on all existing and future current assets of the Borrower with Punjab National
Bank, AU Small Finance Bank Ltd., IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Federal Bank,Axis Bank, IDBI
Bank and IDFC Bank. Lien over Fixed Deposits equivalent to 25% of limit and personal Guarantee of Directors (Mr.
Manish Jain and Mr. Sanjay Jain).
ROI range during the reporting year: 8.50 to 9.50%
3. IndusInd Bank - First Pari Passu charge on hypothecation of the current assets for INR 49781.99 Lakh with other security
banks, Punjab National Bank, AU Small Finance Bank Ltd., Yes Bank, Kotak Bank, HDFC Bank, Federal Bank, ICICI Bank,
IDBI Bank, IDFC Bank & Axis Bank, further secured by Fixed deposit of INR 1880 Lakh of the Company and personal
guarantee of Directors (Mr. Sanjay Jain and Mr. Manish Jain).
ROI range during the reporting year: 8.46% to 10.00%.
4. AU Small Finance Bank Ltd. - First Pari Passu charge on hypothecation of the entire present and future current assets
of the Company comprising, inter alia, of stocks of raw material, work in progress, finished goods, receivables, book
debts along with Punjab National Bank, ICICI Bank, IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Federal Bank,
Axis Bank, IDBI Bank & IDFC Bank. Lien over Fixed Deposits equivalent to 100% of limit and personal Guarantee of
Directors (Mr. Manish Jain and Mr. Sanjay Jain)
ROI range during the reporting year: 8.75% to 9.75%.
5. Yes Bank - First Pari Passu Charge by way of Hypothecation on entire Present and Future Current Assets of the
Borrower with Kotak Bank, ICICI Bank, Axis Bank, HDFC Bank, AU Small Finance bank, IndusInd Bank, Federal Bank,
PNB, IDBI Bank and IDFC Bank. Fixed deposit to be duly lien marked in favour of the bank to the extent of 25% of the
facility. Unconditional and irrevocable personal guarantee of Directors (Mr. Sanjay Jain and Mr. Manish Jain) during
entire tenure of the facility.
ROI range during the reporting year: 8.22% to 9.05%.
6. HDFC Bank - First Pari Passu Charge by way of Hypothecation on entire Present and Future Current Assets of the
Borrower with Kotak Bank, ICICI Bank, Axis Bank, AU Small Finance bank, Federal Bank, IndusInd Bank, Federal
Bank,PNB, IDBI Bank and IDFC Bank. Unconditional and irrevocable personal guarantee of Directors (Mr. Sanjay Jain
and Mr. Manish Jain). The Company mortgage commercial property (Unit No. 201 & B-201, 2nd floor, R.G. Metro Arcade,
Sector-11, Rohini, Delhi-110085) and Plot no. 3116 measuring 4050 Sq. Metres, Industrial Model Township. Khargoda,
Sonepat 131402.
ROI range during the reporting year: 9.10%
7. Kotak Bank - First and pari-passu charge on all existing and future current assets of the Borrower with ICICI Bank, Axis
Bank, HDFC Bank, AU Small Finance bank, Federal Bank, IndusInd Bank, PNB, Federal Bank, IDBI Bank and IDFC
Bank.Collateral Security of INR 3.00 crore in the form of FDR. Lien over Fixed Deposits equivalent to 20% of limit and
personal Guarantee of Directors (Mr. Manish Jain and Mr. Sanjay Jain).
ROI during the reporting year: 9.15% to 9.75%.
8. Axis Bank - First pari-passu charge on all existing and future current assets, paid stock and book debt of the Borrower
with Punjab National Bank, AU Small Finance Bank Ltd., IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Federal
Bank, ICICI Bank, IDBI Bank and IDFC Bank. Lien over Fixed Deposits equivalent to 20% of limit, against paid Stock and
book debts and personal Guarantee of Directors (Mr. Manish Jain and Mr. Sanjay Jain).
ROI range during the reporting year: 8.05% to 9.05%.
9. Federal Bank - First and pari-passu charge on all existing and future current assets of the Borrower with Punjab National
Bank, AU Small Finance Bank Ltd., IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Axis Bank, ICICI Bank, IDBI Bank
and IDFC Bank. Lien over Fixed Deposits equivalent to 25% of limit, and personal Guarantee of Directors (Mr. Manish
Jain and Mr. Sanjay Jain). Facility is in the form of WCDL of INR 25 crore with CC as sublimit of WCDL to the extent of 10
crore.
ROI range during the reporting year: 9.65% to 9.85%.
10. I DFC Bank - First and pari-passu charge on all existing and future current assets of the Borrower with Punjab National
Bank, AU Small Finance Bank Ltd., IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Axis Bank, Federal Bank ICICI
Bank and IDBI Bank. First pari-passu charge on immoveable fixed assets with security cover of 7% of the total limit.
Personal Guarantee of Directors (Mr. Manish Jain and Mr. Sanjay Jain). Facility is in the form of WCDL of INR 100 crore
with CC as sub limt. No facility has been utilised during the reporting year.
ROI: MCLR(Y) plus 30 bps p.a.
11. I DBI Bank - First and pari-passu charge on all existing and future current assets of the Borrower with Punjab National
Bank, AU Small Finance Bank Ltd., IndusInd Bank, Yes Bank, Kotak Bank, HDFC Bank, Axis Bank, Federal Bank ICICI
Bank and IDFC Bank. First pari-passu charge on entire current assets of the Company both present and future with
collateral serurity cover of 16%% of the total limit exposure. Personal Guarantee of Directors (Mr. Manish Jain and Mr.
Sanjay Jain). Facility is in the form of WCDL of INR 6 crore and CC of INR 4 crore.
ROI: MCLR(Y) plus 30 bps p.a.
**The carrying amounts of current borrowings includes payables in respect of vendors which are subject to a factoring arrangement.
Notes:
i) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.
ii) Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits
and other long term employee benefits recognised as per Ind AS 19 - Employee Benefits in the standalone financial
statements. The Remuneration disclosed above is for short term employee benefits and does not includes post
employee benefits as the same is not material and hence not disclosed separately.
*Above values include GST wherever applicable.
47 SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision
Maker (“CODM”) of the Company. The CODM, who is responsible for allocating resources and assessing performance of
the operating segments, has been identified as the Managing Director of the Company. Reportable Segments in view of
requirements of Ind AS 108 are provided in Consolidated Financial Statements.
48 DETAILS FOR GRATUITY AND EMPLOYEE BENEFIT EXPENSES
The disclosures required by Ind- AS-19 “Employee Benefits” are as under:
(a) Defined Contribution Plan
(i) The contribution to provident fund is charged to accounts on accrual basis. The contribution made by the Company
during the period is INR 244.79 Lakh (Previous Year INR 175.92 Lakh)
(ii) I n respect of short-term employee benefits, the Company has at present only the scheme of cumulative benefit of
leave encashment payable at the time of retirement/cessation and the same have been provided for on accrual
basis as per actuarial valuation.
Fair Value hierarchy disclosures:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Input other than quoted price included within Level 1 that are observable for the assets or liability; either directly (i.e.,
as prices) or indirectly (i.e., derived from prices).
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
53 FINANCIAL RISK MANAGEMENT:
I n the course of business, amongst others, the Company is exposed to several financial risks such as Credit Risk, Liquidity
Risk and Market Risk. These risks may be caused by the internal and external factors resulting into impairment of the
assets of the Company causing adverse influence on the achievement of Company’s strategies, operational and financial
objectives, earning capacity and financial position.
The Company has formulated an appropriate policy and established a risk management framework which encompass the
following process.
- identify the major financial risks which may cause financial losses to the Company
- assess the probability of occurrence and severity of financial losses
- mitigate and control them by formulation of appropriate policies, strategies, structures, systems and procedures
- Monitor and review periodically the adherence, adequacy and efficacy of the financial risk management system.
The Company enterprise risk management system is monitored and reviewed at all levels of management and the Board of
Directors from time to time.
(a) Credit Risk
Credit risk is the risk that a 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 primarily trade receivables, contract assets and other financial assets
including deposits with banks. The Company’s exposure and credit ratings of its counterparties are continuously monitored
and the aggregate value of transactions is reasonably spread amongst the counterparties. The maximum exposure to credit
risk at the reporting date is the carrying value of each class of financial assets disclosed in note 52.
Trade receivable and contract assets
The Company’s exposure to customer credit risk is influenced mainly by the individual characteristics of each customer.
However, management also considers the factors that may influence the credit risk of its customer base. Ageing has been
disclosed in note 14.1.
The Company’s customer profile includes public sector enterprises, state owned companies, group companies and
corporates customers. General payment terms include mobilisation advance, monthly progress payments with a credit
period ranging from 30 to 90 days. Further, trade receivables include retention money receivable from the customers on
expiry of the defect liability period However, the Company has an option to get the refund of the above receivables if bank
guarantee is provided. The Company has a detailed review mechanism of overdue customer receivables at various levels
within organisation to ensure proper attention and focus for realisation
Credit risk on trade receivables and contract assets is limited as the customers of the Company mainly consists of the
government promoted entities having a strong credit worthiness. The provision matrix takes into account available external
and internal credit risk factors such as company's historical experience for customers.
The significant change in the balance of trade receivables and contract assets are disclosed in note 63.
Financial instruments and bank deposits
Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in
accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within
credit limits assigned to each counterparty. The limits are set to minimise the concentration of risks and therefore mitigate
financial loss through counterparty’s potential failure to make payments.
This comprises mainly of deposits with banks, investments in mutual funds and other intercompany receivables. The
Company’s maximum exposure to credit risk for the components of the balance sheet at 31st March, 2025 and 31st March,
2024 is the carrying amounts as illustrated in Note 51.
(b) Liquidity Risk
Liquidity Risk arises when the Company is unable to meet its short-term financial obligations as and when they fall due.
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, at all times maintain optimum levels of liquidity 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 debt and overdraft from banks at an optimised
cost. This monitoring takes into account the accessibility of cash and cash equivalents and additional undrawn financing
facilities. As at 31st March, 2026 the Company has available INR 5,786.52 (31st March, 2025: INR 5,387.62 Lakh) in form of
undrawn committed borrowing limits.
(c) 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 two types of risks i.e. interest rate risk, currency risk and commodity price risk. Financial
instruments affected by market risk include borrowings and creditors for capital expenditures.
(i) Interest Rate Risk
As infrastructure development and construction business is capital intensive, the Company is exposed to interest rate
risks. The Company's infrastructure development and construction projects are funded to a large extent by debt and
any increase in interest expense may have an adverse effect on our results of operations and financial condition. The
Company current debt facilities carry interest at variable rates with the provision for periodic reset of interest rates.
The interest rate risk exposure is mainly from changes in floating interest rates. The interest rate are disclosed in the
respective notes to the financial statement of the Company. The following table analysis the breakdown of the financial
assets and liabilities by type of interest rate:
(ii) Foreign Currency Risk
The functional currency of the Company is Indian Rupees. Foreign currency risk is the risk that the fair value or future
cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to
the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or
expense is denominated in a foreign currency).
The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established
risk management policies
The following table analysis foreign currency risk from financial instruments:
(iii) Commodity Price Risk
The Company requires material for construction, operation and maintenance of the projects such as: cement, steel,
aggregates and other construction materials. The Company is able to manage this exposure in project material through
bulk purchases and better negotiations. Further, in most of the project, the Company have arrangements with its
customers to charge price escalation which mitigate any increase in price risk.
54 CAPITAL MANAGEMENT:
For the purpose of the Company’s capital management, capital includes paid-up equity capital and all other equity reserves
attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure
that it maintains a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business and maximise shareholder value.
The Company manages its capital structure and makes adjustments to it in the light of changes in economic conditions
and the requirements of the financial covenants. Breaches in meeting the financial covenants would permit the lenders to
immediately call loans and borrowings. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using Debt-
Equity ratio, which is net debt divided by total equity. The Company’s policy is to keep the net debt to equity ratio below 3.
Net debt consist of interest bearing borrowings, interest accrued thereon less cash and cash equivalents. Equity includes
equity attributes to the equity shareholders.
58 The Government of India has consolidated 29 existing labour legislations into a united framework comprising four Labour
Code viz Code on wages 2019, Code on Social Security 2020, Industrial Relation Code 2020, and Occupational Safety,
Health and Working Condition Code 2020 (collectively referred to as the ‘Codes’). The Codes have been made effective from
21st November, 2025. The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment
of the financial impact due to changes in regulations.
Based on the information available and in accordance with the guidance issued by the Institute of Chartered Accountants
of India, the Company has estimated and the incremental liability of INR 35.84 Lakh relating to its own employees in the
standalone financial results for the year ended 31st March, 2026.
59 RECENT PRONOUNCEMENTSA. New and Amended standards
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time to time.
I n May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign Exchange Rates, applicable w.e.f.
1st April, 2025. The Group has reviewed the amendment and based on its evaluation has determined that it does not have
any significant impact in its financial statements.
In August 2025, MCA notified the following amendments to:
i) I nd AS 1, Presentation of Financial Statements, applicable w.e.f 1st April, 2025 - The amendment relates to classification
of liabilities as current or non -current and non-current liabilities with covenants. In the context of classifying a liability as
current, it removes the requirement of existence of a right to defer settlement for at least 12 months after the reporting
date, and instead requires that the said right should exist on the reporting date and have substance. The amendment
also introduces guidance on classification of liabilities with covenants. The Group has no impact of these amendments
in its classification criteria of current and non-current liabilities.
ii) I nd AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments - Disclosures, applicable w.e.f 1st April, 2025
- The amendment in Ind AS 7 requires to inform users of financial statements of the existence of supplier finance
arrangements and explain the nature of the arrangements, the carrying amount of liabilities and the range of payment
due dates. Ind AS 107 has been amended to add supplier finance arrangements as a factor that may cause concentration
of liquidity risk. The Group has reviewed the amendment and based on its evaluation has determined that it does not
have any significant impact in its financial statements
B. Standards notified but not yet effective
There are no new standards that are notified, but not yet effective, upto the date of issuance of the Company’s standalone
financial statements
60 ADDITIONAL REGULATORY INFORMATIONa) Details of Benami Property held
Company does not hold any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) in the
current period and in previous years.
b) Wilful Defaulter
Company is not declared wilful defaulter by any bank or financial institution or any lender during the current period and in
previous year.
e) Compliance with number of layers of companies
Company does not have any relationship/extent of holding of the Company in downstream companies more than specified
layers prescribed under clause 87 of section (2) of the Act read with Companies (Restriction on number of Layers) Rules,
2017.
f) The Company has neither provided nor taken any loan or advance to/from any other person or entity in the current period or
in the previous years, with the understanding that benefit of the transaction will go to a third party or the ultimate beneficiary
and have not provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
g) No scheme of Arrangements has been approved by competent authority in terms of sections 230 to 237 of the Companies
Act, 2013 in respect of the Company.
61 EXCEPTION ITEM
During the quarter ended 30th June, 2025, the management of the Company identified a cyber fraud incident involving
unauthorised and fraudulent transfer of funds aggregating to INR 1,115.00 Lakh (INR 495.00 Lakh up to 30th June, 2025 and
INR 620.00 Lakh subsequently).
Upon detection of the fraudulent transactions, the Company promptly lodged a complaint on the National Cyber Crime
Reporting Portal, and an FIR was registered with the IFSO Wing, Special Cell, Outer North District, Dwarka, Delhi.
Pursuant to the FIR and the ongoing proceedings for tracing and recovery of the misappropriated funds, the Hon’ble Judicial
Magistrate Court, Delhi directed various banks to impose lien on the identified accounts and release the traced funds through
the National Cyber Crime Reporting Portal mechanism. Accordingly, against the total lien amount of INR 302.00 Lakh, an
amount of INR 264.05 Lakh had been credited to the Company’s bank account as of the reporting date.
Considering the uncertainty associated with the ultimate recovery of the balance amount, the Company has recognised a
charge of INR 874.80 Lakh under Exceptional Items in the Statement of Profit and Loss for the year ended 31st March, 2026.
62 SUBSEQUENT EVENT
The Company evaluates events and transactions that occur subsequent to the Balance sheet date but prior to approval of
the financial statements to determine the necessary for recognition and/or reporting of any of these events and transactions
in the financial statements. As on 28th May,2026, there are no subsequent events recognised or reported.
66 AUDIT TRAIL
The Company has used accounting software for maintaining its books of account for the financial year ended 31st March,
2026, which has a feature of recording audit trail (edit log) facility and the same has been operated and enabled throughout
the year for all relevant transactions recorded in the accounting software and the same has been preserved by the Company
as per the statutory requirement for record retention. Further, no instances of audit trail feature being tampered with, was
occurred in respect of the accounting software.
68 OTHER MATTERS
The Company has acquired 100% equity in EIE Renewables Private Limited, making it a wholly-owned subsidiary. The
acquisition was approved by the Board on 6th May, 2025. The acquisition involves an initial investment of INR 10 Lakh against
the purchase of 1,00,000 equity shares of INR 10 each.
The Company has further made an investment of INR 4,990 Lakh by way of fresh allotment of shares. EIE renewables
focuses on energy generation via renewables.
69 PREVIOUS YEAR COMPARATIVES
Previous year's figures have been regrouped/reclassified, wherever necessary, to conform to current year classification
|