(l) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or
constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a
reliable estimate can be made of the amount of obligation. Provisions are not recognised for future operating losses.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.
Contingent liabilities are not recognized and are disclosed by way of notes to the standalone financial statements
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 when there is 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 same or a reliable estimate of the amount in this respect cannot be made.
Contingent assets are not recognised but disclosed in the Standalone Financial Statements by way of notes to accounts
when an inflow of economic benefits is probable.
Provisions for onerous contracts are recorded in the statements of operations when it becomes known that the
unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be
received.
(m) Employee Benefits
Employee benefits are accrued in the year in which services are rendered by the employees. Short term employee
benefits are recognized as an expense in the statement of profit and loss for the year in which the related service is
rendered.
Contribution to defined contribution plans such as Provident Fund etc, is being made in accordance with statute and
are recognised as and when incurred.
Contribution to defined benefit plans consisting of contribution to gratuity are determined at close of the year at
present value of the amount payable using actuarial valuation techniques. Actuarial gain and losses arising from
experience adjustments and changes in actuarial assumptions are recognized in other comprehensive income.
Other long term employee benefits consisting of Leave Encashment are determined at close of the year at present
value of the amount payable using actuarial valuation techniques. The changes in the amount payable including
actuarial gain/loss are recognised in other comprehensive income.
(n) Revenue recognition
The Company recognizes revenue from contracts with customers when it satisfies a performance obligation by
transferring promised good or service to a customer. The revenue is recognized to the extent of transaction price
allocated to the performance obligation satisfied. Performance obligation is satisfied over time when the transfer
of control of asset (good or service) to a customer is done over time and in other cases, performance obligation is
satisfied at a point in time. The customer obtains control of the asset when it simultaneously benefits by the entity's
performance. For performance obligation satisfied over time, the revenue recognition is done by measuring the
progress towards complete satisfaction of performance obligation. The progress is measured in terms of a proportion
of actual cost to date, to the total estimated cost attributable to the performance obligation.
Transaction price is the amount of consideration to which the company expects to be entitled in exchange for
transferring good or service to a customer excluding amounts collected on behalf of a third party. Variable consideration
is estimated using the expected value method or most likely amount as appropriated in a given circumstance. Payment
terms agreed with a customer are as per business practice and there is no financing component involved in the
transaction price.
Costs to obtain a contract which are incurred regardless of whether the contract was obtained are charged off in
Statement of Profit and Loss immediately in the period in which such costs are incurred. Incremental costs of obtaining
a contract, if any, and costs incurred to fulfil a contract are amortised over the period of execution of the contract in
proportion to the progress measured in terms of a proportion of actual cost incurred to date, to the total estimated
cost attributable to the performance obligation.
In respect of construction/ project related activity, Revenue is recognised under over time method when it is
probable that the company will collect the consideration to which it is entitled to. Revenue under over time method is
determined by survey of work performed / physical measurement of work actually completed at each reporting date
taking into account contractual price/ unit rates and revision thereto.
(1) Critical accounting judgements, estimation and uncertainty:
Determining the revenue to be recognized in case of performance obligation satisfied over a period of time;
revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation.
The progress is measured in terms of a proportion of actual cost incurred to date, to the total estimated cost
attributable to the performance obligation.
(2) Revenue from construction/project related activity is recognized as follows:
Fixed price contracts: Contract revenue is recognized over time to the extent of performance obligation satisfied
and control is transferred to the customer. Contract revenue is recognized at allocable transaction price which
represents the cost of work performed on the contract plus proportionate margin, using the percentage of
completion method. Percentage of completion is the proportion of cost of work performed to date, to the total
estimated contract costs.
For contracts where the aggregate of contract cost incurred to date plus recognized profits (or minus recognized
losses as the case may be) exceeds the progress billing, the surplus is shown as contract asset and termed as "Due
from customers” For contracts where progress billing exceeds the aggregate of contract cost incurred to date plus
recognized profits (or minus recognized losses as the case may be), the surplus is shown as contract liability and
termed as "Due to customers” Amount received before the related work is performed are disclosed in the Balance
Sheet as Contract Liability and termed as "Advances from customers” The amounts billed on customer for work
performed and are unconditionally due for payment i.e., only passage of time is required before payment falls due,
are disclosed in the Balance Sheet as "Trade Receivables” The amount of retention money held by the customers
pending completion of performance milestone is disclosed as part of contract asset and is reclassified as "Trade
Receivables” when it becomes due for payment.
Other Income
Interest Income
Finance income is accrued on a time proportion basis, by reference to the principal outstanding and the applicable
EIR. Other income is accounted for on accrual basis. Where the receipt of income is uncertain, it is accounted for
on receipt basis.
Dividend Income
Dividend income is accounted for when the right to receive the same is established, which is generally when
shareholders approve the dividend.
(o) Borrowing costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All
borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the
extent attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets.
A qualifying PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale.
Borrowing cost also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
(p) Leases
As a lessee
The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at
the inception date, whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the
arrangement conveys a right to use the asset , even if that right is not explicitly specified in an arrangement.
A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an
identified asset, the Company assesses whether: (i) the contract involves the use of an identified asset (ii) Company has
substantially all of the economic benefits from the use of the asset through the period of the lease and (iii) Company
has the right to direct the use of the asset.
At the date of commencement of the lease, Company recognizes a right-of-use asset ("ROU”) and a corresponding lease
liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short¬
term leases), low-value leases and where the agreement contain the clause for cancellation of agreement without
any penalty. For these short-term, low-value or cancellable leases, the Company recognizes the lease payments as an
operating expense on a straight-line basis over the term of the lease.
(q) Taxes on income
I ncome tax expense representing the sum of current tax expenses and the net charge of the deferred taxes is
recognized in the income statement except to the extent that it relates to items recognized directly in equity or other
comprehensive income.
(1) Current Tax
Current tax is provided on the taxable income and recognized at the amount expected to be paid to or recovered
from the tax authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the
end of the reporting period.
(2) Deffered Tax
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences between
the carrying amount of assets and liabilities in the financial statements and the corresponding tax basis used in
the computation of taxable profit as well as for unused tax losses or credits. In principle, deferred tax liabilities
are recognized for all taxable temporary differences and deferred tax assets are recognized to the extent that it
is probable that taxable profits will be available against which deductible temporary differences can be utilized.
Deferred tax assets and liabilities are also recognized on temporary differences arising from business combinations
except to the extent they arise from goodwill that is not taken into account for tax purposes.
Deferred taxes are calculated at the enacted or substantively enacted tax rates that are expected to apply when
the asset or liability is settled. Deferred tax is charged or credited to the income statement, except when it relates
to items credited or charged directly to other comprehensive income in equity, in which case the corresponding
deferred tax is also recognized directly in equity.
(r) Earnings per share
Basic Earnings per share is calculated by dividing the profit from continuing operations and Total profit, both attributable to equity
shareholders of the Company by the weighted average number of equity shares outstanding during the period.
Diluted earnings per share is computed using the net profit for the year attributable to the shareholders and weighted average
number of equity and potential equity shares outstanding during the year including share options, convertible preference shares
and debentures, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are
included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity
shares, to the date of conversion.
(s) Segment accounting
Operating segments are identified and reported taking into account the different risk and return, organisation structure
and internal reporting system.
4. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the standalone financial statements in conformity with the measurement principle of Ind AS requires management to
make estimates, judgments and assumptions. These estimates, judgments and assumptions affect the application of accounting policies
and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the standalone
financial statements and reported amounts of revenues and expenses during the period. Accounting estimates could change from
period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes
aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in
the year in which the results are known / materialized and, if material, their effects are disclosed in the notes to the standalone financial
statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical judgments and the use of
assumptions in the standalone financial statements have been disclosed below. The key assumptions concerning the future and other
key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the next financial year are discussed below:
(a) Contract estimates
The Company, being a part of construction industry, prepares budgets in respect of each project to compute project
profitability. The two major components of contract estimate are 'claims arising during Construction period' and
'budgeted costs to complete the contract' While estimating these components various assumptions are considered
by the management such as (i) Work will be executed in the manner expected so that the project is completed
timely (ii) consumption norms will remain same (iii) Assets will operate at the same level of productivity as determined
(iv) Wastage will not exceed the normal % as determined etc. (v) Estimates for contingencies (vi) There will be no
change in design and the geological factors will be same as communicated and (vii) price escalations etc. Due to
such complexities involved in the budgeting process, contract estimates are highly sensitive to changes in these
assumptions all assumptions are reviewed at each reporting date.
(b) Depreciation and impairment on PPE
Property, plant and equipment are depreciated on straight-line basis over the estimated useful lives in accordance with
Schedule II of the Companies Act, 2013, taking into account the estimated residual value, wherever applicable.
The useful lives of some of the assets have been reviewed during the year and the same have been revised on the basis
of such evaluation duly supported by technical advice.
The company reviews carrying value of its Tangible Assets whenever there is objective evidence that the assets are
impaired. In such situation Asset's recoverable amount is estimated which is higher of asset's or cash generating units
(CGU) fair value less cost of disposal and its value in use. In assessing value in use the estimated future cash flows are
discounted using pre-tax discount rate which reflect the current assessment of time value of money. In determining
fair value less cost of disposal, recent market realisations are considered or otherwise in absence of such transactions
appropriate valuations are adopted. The Company reviews the estimated useful lives of the assets regularly in order
to determine the amount of depreciation and amount of impairment expense to be recorded during any reporting
period. This reassessment may result in change estimated in future periods.
(c) Impairment on Investments in Subsidiaries and associates
I nvestments in Subsidiaries and associates are been carried at cost. The company has tested for impairment at year end based
on the market value where the shares are quoted, P/E ratio of similar sector company along with premium/discount for nature
of holding and Net Asset Value computed with reference to the book value/ projected discounted cash flow of such company in
respect of unquoted investments.
(d) Impairment allowances on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are impaired and determines the amount
of impairment allowance as a result of the inability of the customers to make required payments. The Company bases the estimates
on the ageing of the trade receivables balance, credit-worthiness of the trade receivables and historical write-off experience. If the
financial conditions of the trade receivable were to deteriorate, actual write-offs would be higher than estimated.
(e) Current Tax and Deferred Tax
Significant judgment is required in determination of taxability of certain income and deductibility of certain expenses during the
estimation of the provision for income taxes.
Deferred tax assets are recognised for unused losses (carry forward of prior years' losses) and unused tax credit to the extent that it
is probable that taxable profit would be available against which the losses could be utilised. Significant management judgment is
required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future
taxable profits together with future tax planning strategies.
(f) Defined benefit obligations (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of inflation, mortality,
discount rate, anticipation of future salary increases etc. as estimated by Independent Actuary appointed for this purpose by the
Management. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses.
(g) Provisions and Contingencies
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds
resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and
quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to
change.
Management judgement is required for estimating the possible outflow of resources, if any, in respect of contingencies/claim/
litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to take
account of changing facts and circumstances.
6.3 The Company has as at March 31, 2025 Non-Current Investment amounting to Rs.1500.00 lakhs (March 31, 2024; Rs.1500.00 lakhs) in
its wholly owned subsidiary company MBL (MP) Toll Road Company Ltd ("MTRCL"). The net worth of subsidiary as at March 31, 2025
have been fully eroded. The net worth of subsidiary does not represent true market value of the underlying investment/assets. There
was a participation in concession agreement dated December 07, 2011 by way of project centric ECB facility as per prudential norms
of financing infrastructure projects in India in terms of RBI guidelines & other applicable Indian laws in Toll Annuity project of
MTRCL. Repayments and interest were to be made from escrow account out of deposit of semi annual annuity and user fee (toll)
on achievement of Completion / Commercial Operation Date (COD). Arbitration proceedings have been initiated by MTRCL under
Arbitration & Conciliation Act, 1996 vide notice dated March 20, 2023 against the Authority and Lenders Representative / Escrow Agent
for differences and disputes that have arisen due to breach of escrow agreement dated March 22, 2012. The Arbitration case has been
registered with Indian Council of Arbitration as case No. AC-2373 and MTRCL has raised claims. MTRCL has also filed application under
Section 9 of Arbitration & Conciliation Act 1996 before Commercial Court, Bhopal and the case has been registered as MJC AV 42/2024.
The Adjudicating Authority (NCLT, New Delhi) vide its order dated January 21, 2025 has initiated Corporate Insolvency Resolution
Proceedings on an application filed by Punjab National Bank (International) Ltd (PNBIL) u/s 7 of Insolvency & Bankruptcy Code, 2016
and Resolution Professional (RP) has been appointed. The powers of the members of the Board of Directors of MTRCL are suspended
and management of MTRCL vests with RP Appeal has been filed before Hon'ble NCLAT against the Adjudicating Authority order dated
January 21, 2025, which is pending adjudication. Without prejudice, the Company has filed Claim with RP which has been admitted.
MTRCL being MSME and the Company also being MSME is qualified to submit Resolution Plan in terms of IBC, 2016 and infact has been
declared as one of the prospective Resolution Applicant. Based on estimates like future business plan, arbitration proceedings and other
factors, the management is confident that the realisable amount is higher than the carrying value of the investment and, therefore, the
investment in the above subsidiary is good and recoverable.
6.4 The Company has as at March 31, 2025 Non-Current Investment amounting to Rs.3984.25 lakhs (March 31, 2024; Rs.2984.25 lakhs) in
its wholly owned subsidiary company MBL Projects Ltd. The net worth of the subsidiary does not represent true market value of the
underlying investment/assets. The subsidiary holds shares in downstream SPVs in which projects were cancelled/ terminated. Claims
have been filed against cancellation/termination of the projects. These claims are based on the terms and conditions implicit in the
contract in respect of cancelled/terminated projects. Considering the contractual tenability; legal advice received and progress of
arbitration/ litigation, the management is confident of recovery of these claims. In view of this, the management is confident that
the realisable amount is higher than the carrying value of the investment and, therefore, has considered the investment in the above
subsidiary as good and recoverable.
6.5 The Company has as at March 31,2025 Non-Current Investment amounting to Rs.18505.23 lakhs (March 31,2024; Rs.18505.23 lakhs) in
its wholly owned subsidiary company Suratgarh Bikaner Toll Road Company Private Limited (SBTRCPL) . The net worth of the subsidiary
does not represent true market value of the underlying investment/assets. There has been delay in Completion / Commercial Operation
Date (COD) in respect of the DBFOT Project. The Competent Authority under the Concession Agreement has approved/granted
extension of time for Completion/full COD of the Project till June 08, 2023. The repayment of loans is linked to Completion / COD. The
Lenders had given undertaking not to recover till Completion. Differences and disputes have arisen between the consortium of banks
and SBRTCL about the excess recovery on the basis of completion / undertaking and as per Escrow Agreement dated April 10, 2013 and
the company has invoked arbitration in terms of the dispute resolution mechanism under the Escrow Agreement dated April 10, 2013.
The original sanction rate of interest was 12.50% p.a. with reset clause on completion / COD. Pending dispute resolution, provision for
interest has been made for finance cost @ 9.60% p.a. w.e.f. February 17, 2019 (applicable base rate as per First Supplemental Agreement
of Common Term Loan Documentation with Lenders). The completion of the original scope of work was completed on June 08, 2023. In
case the dispute is decided against the company, there may be additional provision of interest of Rs. 6,417.45 lakhs as on March 31,2025
(Rs. 6,150.01 lakhs as on March 31,2024). In case the dispute is resolved / settlement is arrived at with the banks, the provision of interest
may be reversed, the amount of which is not ascertained as on date. Further, the classification of term loan to long term/current maturity,
provision for claims, carriage ways of intangible assets etc. may under go change. Two of the consortium lenders of SBTRCPL have filed
application under section 7 of the IBC, 2016 which has been contested by SBTRCPL. All five of the consortium lenders of SBRTCL have
filed petitions under Section 19(4) of the Recovery of Debt and Bankruptcy Act, 1993 against SBRTCL, which has been contested by
SBTRCPL. As per the legal advice received by the Company the applications filed are in the contravention and derogation of the Escrow
Agreement, Substitution Agreement and Common Loan Agreement and are not maintainable. Based on estimates like future business
plan, arbitration proceedings and other factors, the management is confident that the realisable amount is higher than the carrying
value of the investment and, therefore, the investment in the above subsidiary is good and recoverable.
6.6 The Company has as at March 31,2025 Non- Current Investment amounting to Rs.5110.00 lakhs (March 31, 2024; Rs.5110.00 lakhs) in
its wholly owned subsidiary company MBL Highway Development Company Limited (MHDCL). The net worth of subsidiary does not
represent true market value of the underlying investment/assets. There was a participation in concession agreement dated September
09, 2011 by way of project centric ECB facility as per prudential norms of financing infrastructure projects in India as per RBI guidelines
and other applicable Indian laws in DBFOT project of MHDCL. Repayments and interest were to be made from escrow account out of
deposit of user fee (toll) on achievement of Commercial Operation Date (COD). However the concession agreement was terminated
by Authority on November 18, 2016. Legal proceedings are pending at various forums for adjudication of disputes including dispute
resolution proceedings in India and summary judgement and certificate of enforcement from a foreign country and its execution
petition in India by such participant. MHDCL has received legal advice that the same is not enforceable. MHDCL has counter claims
against the participant exceeding the amount of the claims. However, provision has been made for claims including foreign exchange
fluctuation as per 'conservative principles of accounting' but the same is not acknowledged as debt payable by MHDCL. MHDCL has
invoked arbitration against the Authority and Lenders Representative / Escrow Agent on account of material defaults/breach on their
part in fulfilling their obligations as per provisions of Substitution Agreement & Escrow Agreement and filed claims before Arbitral
Tribunal constituted by Indian Council of Arbitration under the Substitution Agreement. Based on estimates like future business plan,
arbitration proceedings and other factors, the management is confident that the realisable amount is higher than the carrying value of
the investment and, therefore, the investment in the above subsidiary is good and recoverable.
6.7 The Company has investment in 2,37,43,800 equity shares aggregating to 30.30% in Orissa Steel Expressway Pvt. Ltd. (OSEPL), a Special
Purpose Vehicle, for execution of Four/Two Laning of Rimuli-Roxy- Rajamunda Section of NH 215 from km 163.00 to km 269.00 in the
state of Orissa awarded by NHAI on DBFOT Basis and there were option agreements which could have been exercised by the parties
prior to completion/termination of concession agreement.
On January 13, 2017, the concession agreement with NHAI was foreclosed and arbitration proceedings were initiated by OSEPL. An
arbitration award dated March 31,2019 for Rs.32,278.00 lakhs plus interest @ 10 % p.a. was passed in favour of OSEPL. The said arbitration
award has been challenged by NHAI before Hon'ble High Court, Delhi. Pursuant to order dated July 24, 2019, NHAI has deposited
Rs.32,278.00 lakhs as a condition for stay of operation of the award pending final adjudication.
Out of 2,37,43,800 equity shares aggregating to 30.30%, 1,28,64,000 equity shares held by the company has been inappropriately
transferred reducing the shareholding of the Company in OSEPL to 13.89 % for which the Company had filed an application inter-
alia oppression and mismanagement with Hon'ble NCLT, Cuttack. The Company has filed appeal before Hon'ble NCLAT against NCLT
order dated August 31, 2022, which is pending adjudication. Hon'ble High Court at Calcutta vide judgement & order dated 05.06.2023
has dismissed the petition filed under Section 11 of Arbitration & Conciliation Act 1996 by Rithwik Projects Private Ltd., being one the
Respondent in the Appeal. The Hon'ble Supreme Court vide order dated February 19, 2024 has dismissed the Special Leave Petition filed
by Rithwik against Calcutta High Court order. The investment is carried at net cost.
20.1 Refer Statement of changes in Equity for movement in balances of reserves.
Nature and purpose of Reserves:-
20.2 Capital Reserve
Rs.44,333.81 lakhs (March 31, 2024 Rs.40,308.22 lakhs) represents adjustments arising out of Resolution Plan under Insolvency and
Bankruptcy Code, 2016 approved by the Hon'ble NCLT on April 18, 2018. It is resulted from implementation of the Package/Resolution
Plan by the Banks/Financial Creditors and are capital in nature and no income/profit has accrued nor any cash flow realised to the
Company.
20.3 Securities Premium
Securities Premium represents the amount received in excess of par value of securities and is available for utilisation as specified under
Section 52 of Companies Act, 2013.
20.4 Debenture Redemption Reserve (DRR)
The Debenture Redemption Reserve (DRR) was created during earlier period, in compliance with the then provisions of the Companies
Act 2013 read with Rules made therein. As per the amendments made in the provisions of Companies Act 2013 read with Rules, DRR is
not required and accordingly the balance of DRR is transferred to General Reserve.
20.5 General Reserve
The General Reserve is created from time to time by appropriating profits from Retained Earnings. The general reserve is created by a
transfer from one component of equity to another and accordingly it is not reclassified to the Statement of Profit and Loss.
20.6 Retained Earnings
Retained Earnings generally represent the undistributed profits /amount of accumulated earnings of the Company and includes
remeasurement gains/losses on defined benefit plans.
21.1 The Company has issued 0.10% Secured Non-Convertible Debentures to banks to be redeemed at a premium of 10% at the time
of final redemption as per approved Resolution Plan. The payment of the interest will be made at the end of each quarter in terms of
approved resolution plan. (read with orders of Hon'ble NCLT/NCLAT)
The payment of the Principal amount is in 39 unequated quarterly installments, commencing from September 30, 2024 as per approved
Resolution Plan
NCDs aggregating to Rs.83360.32 Lakhs (March 31, 2024 Rs.88085.05 Lakhs which stand cancelled on execution of documents for
implementation of the financial package/Resolution Plan by banks) (Including Deferred Credit to March 31, 2025 Rs.36,813.44 Lakhs,
March 31,2024 Rs.37,627.02 Lakhs) is secured by:
(i) 1st pari-passu charge on the entire immovable properties and long term receivables.
(ii) 1st pari- passu charge on movable fixed assets (except those assets which are exclusively charged to equipment financer/ECB
Lenders)
(iii) 2nd pari-passu charge on the entire current assets of the company.
21.2 There is working capital term loan of Rs.3,723.98 Lakhs (March 31,2024 Rs.3,737.54 Lakhs) from banks . The rate of interest on such loan
is 1 year MCLR of SBI plus spread of 0.70% p.a and will be repaid in 39 unequated quarterly installments as per approved Resolution
Plan (read with orders of Hon'ble NCLT/NCLAT)
The Working Capital Term Loan is secured as follows:
(i) 1st pari-passu charge on the entire Fixed Assets (movable and immovable) of the Company except those specifically charged to
Equipment/ ECB lenders.
(ii) 1st pari-passu charge on the long term receivables.
(iii) 2nd pari-passu charge on the entire current assets of the Company.
(iv) Pledge of 24% Promoter Holding in the Company.
21.3 Equipment/ Vehicle finance/ External commercial borrowings (ECB) availed from banks.The rate of interest on such loan is 1 year MCLR
of SBI plus spread of 0.70% p.a and will be repaid in 39 unequated quarterly installments as per approved Resolution Plan (read with
orders of Hon'ble NCLT/NCLAT). ECB loan from banks are secured by hypothecation of specific equipments; comprising construction
equipments acquired out of the said loans.
21.4 All the amounts will be paid after proper reconciliation and without prejudice to legal remedies available to the Company. The Company
will have the option to prepay the dues to banks, financial institutions/ creditors (based on time value of their dues at discount rate),
without any additional levies.
* I he above post employment benefits i.e gratuity and leave encashment which cannot be separately identified from the composite
amount advised by the actuary.
Note:
1 The above information is as identified by the management and relied upon by the auditors.
2 Terms and Conditions of transactions with Related Parties:
All transactions are from related parties are made in ordinary course of business. For the year ended March 31 2025, the Company has
not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial
year through examining the financial position of the related party and the market in which the related party operates.
40 Employee Benefits
As per Ind AS - 19 "Employee Benefits" the disclosure of Employee Benefits as defined are given below:
Defined Contribution Plan
The Company makes Provident Fund and Employees State Insurance Fund contributions for eligible employees. Under the schemes, the
Company is required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as
specified under the law are paid to the respective fund set up by the government authority.
The management considers that the above carrying amounts of financial assets and financial liabilities recognized in the financial
statements approximate their fair values. The above table includes the balances payable to financial and operational creditors in terms
of the resolution plan approved under the IBC, 2016.
b) Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount 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 following methods and
assumptions were used to estimate the fair values:-
i) The fair value of cash and cash equivalents, trade receivables, current trade payables, current financial liabilities and borrowings
approximate their carrying amount largely due to the short-term nature of these instruments. The Board considers that the
carrying amounts of financial assets and financial liabilities recognised at cost/amortised cost in the financial statements
approximate their fair values.
ii) In terms of the resolution plan, the long term borrowings as on March 31,2025 are substantially at fixed rate. Accordingly, any
increase or decrease in the market rate of interest will not have implications on the fair value of long term debt in future years.
42 Financial risk management, objective and policies
The Company's business activities are exposed to a variety of financial risks - credit risk, liquidity risk and market risk. The Company's focus
is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The
risks 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.
i) 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). To manage this,
the management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The Company
periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and
ageing of accounts receivable.
The Company establishes an allowance for impairment that represents its estimate of incurred losses in respect of trade and other
receivables. Receivables from customers are reviewed/evaluated periodically by the management and appropriate provisions are
made to the extent recovery there against has been considered to be remote.
The carrying amount of respective financial assets recognised in the financial statements represents the Company's maximum
exposure to credit risk.
Credit exposure is managed by counterparty limits for investment of surplus funds which is reviewed by the Management. Bank
balances are held with reputed and creditworthy banking institutions.
Trade receivables disclosed include amounts that are past due at the end of the reporting period but against which the Company
has not recognised an allowance for doubtful receivables because there has not been a significant change in credit quality and the
amounts are still considered recoverable.
ii) Liquidity Risk
The Company objective is maintaining optimum level of liquidity to meet its cash and collateral requirement at all times. The
Company relies on Borrowing and internal accruals to meet its need for fund. The current committed lines of credit are sufficient to
meet its short to medium term expansion needs.
The table provides undiscounted cash flow towards non-derivative financial liabilities and net settled derivative financial liabilities
into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.
iii) Market Risk
Market risk is the risk or uncertainty arising from possible market price movements resulting in fluctuation of the fair value of future
cash flows of a financial instrument. The major components of Market risks are foreign currency exchange risk and interest rate risk.
Financial instruments affected by market risk include borrowings.
a) Foreign Currency Risk
The Company does not have any significant transaction in foreign currency except foreign currency ECB loan. There are no
outstanding Derivative contracts as on 31st March 2025. In terms of resolution plan, ECB Loan is payable in INR Currency.
b) Interest rate and sensitivity
The Company exposure in market relating to change in interest rate primarily arises from floating rate borrowing with banks
and financial institutions. As at March 31, 2025, substantially all of the Company borrowings fall under the fixed interest rates
(approved under resolution plan), hence there will be no interest rate risk. Considering the restructuring of borrowing, the
carrying amount of said borrowing was considered to be at fair value.
iv) Capital Risk Management
The Company's objectives when managing capital is to safeguard continuity, maintain a strong credit rating and healthy capital
ratios in order to support its business and provide adequate return to shareholders through continuing growth. The Company sets
the amount of capital required on the basis of annual business and long-term operating plans which include capital and other
strategic investments. The funding requirements are met through a mixture of equity, internal fund generation and other non¬
current borrowings. The Company's policy is to use current and non-current borrowings to meet anticipated funding requirements.
The Company monitors capital on the basis of the gearing ratio which is net debt divided by Total capital. Net debts are non-current
and current debts as reduced by cash and cash equivalents.
43.1 The Company's pending litigations comprises of claim against the Company and proceedings pending with tax/ Statutory/Government
Authorities. The Company has reviewed all its pending litigation and proceedings and has made adequate provisions, and disclosed
the contingent liabilities, wherever applicable, in its financial statements.
43.2 The Resolution Plan approved under IBC is binding on all creditors including the Central Government, State Government, any Local
Authority under section 31(1) of IBC, 2016. Claims not filed/ not admitted/ claims which do not form part of the approved Resolution
Plan stand extinguished. The payments of claims are subject to reconciliation and rights and remedies available to the Company and
are not acknowledged as debt.
43.3 As per legal advice received, in case of claim not filed by creditor against Corporate Guarantee(s) provided by the Company in respect
of subsidiary company(ies), the same stand extinguished. Without prejudice to the above, as per the Resolution Plan dated November
22, 2017 of the Company approved under IBC, 2016 read with Orders dated April 18, 2018, March 11,2022 and September 13, 2023
by Hon'ble NCLT, Kolkata, Order dated August 16, 2019 and May 23, 2023 passed by Hon'ble NCLAT and Order dated January 18, 2022,
August 04, 2023 and September 25, 2023 passed by Hon'ble Supreme Court, the treatment of Corporate Guarantees is ""Any amount
arising out of invocation of existing Corporate Guarantees/Contingent Liabilities other than the current sub-judice matters will be
paid after the payment of all the dues of Financial Creditors as per resolution plan, without any interest and penalties subject to the
rights and remedies available to the Company"" and ""All amounts will be paid after proper reconciliation and without prejudice to the
legal remedies available to the Company."" However, Punjab National Bank (International) Ltd has filed application u/s 7 of IBC for the
Corporate Guarantee for the 'project centric' finance in respect of MBL (MP) Toll Road Company Ltd. As per the legal advice received
such application has been filed in the contravention and derogation of the approved Resolution Plan under IBC, 2016 and is not
maintainable.
43.4 The amount shown above represents the best possible estimates arrived on the basis of available information. The uncertainties and
timing of the cash flows are dependent on the outcome of the different legal process which have been invoked by the company or the
claimants as the case may be and therefore it cannot be estimated accurately.
b) Commitments : Nil (March 31, 2024 - Rs.Nil)
44 Disclosures as required by Indian Accounting Standard (Ind AS) 37 "Provisions, Contingent Liabilities and Contingent Assets
A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence
or non occurrence of one or more uncertain future events not wholly within the control of the entity. During the normal course of
business, unresolved claims remains outstanding. The inflow of economic benefits, in respect of such claims cannot be measured due
to uncertainties that surround the related events and circumstances
45 Earnings per share
Basic and diluted earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to equity holders of the Company by
the weighted average of equity shares outstanding during the year.
47.1 Pursuant to the provisions of Ind AS 12 ""Income Taxes"", the Company has conservatively recognised deferred tax assets (net) as at March
31, 2025 amounting to Rs 15,144.78 lakhs (March 31, 2024 Rs.15,144.78 lakhs) corresponding to unused brought forward income tax
losses for which it has convincing evidences viz. opportunities available in area of its core competence, bidding/pre-qualification limit,
conducive government policies and market conditions, recovery of pending claims, TEV study and approved Resolution Plan etc., based
on which it is inferred that sufficient taxable profit will be available against which unused tax losses can be utilised by the Company.
48 Statutory Dues
In terms of the approved Resolution Plan:
a) Payment of statutory liabilities (like income tax, service tax, Vat, Royalties, Cess, Stamp Duty, other statutory dues etc.) will be made
over a period of 3 years from the date of implementation of the Resolution Plan by the financial creditors with waiver of penal
Interest, simple interest, compound interest, damages, penalties, compounding charges etc. on all statutory dues. Admitted claims
alone will be paid after reconciliation and subject to rights and remedies available.
b) Any liability arising out of the matter, which is presently sub-judice and leads to liability against the Company will be paid over a
period of 7 years after the judgement, without any interest and penalty, subject to rights & remedies available to the Company.
Admitted claims alone will be paid after reconciliation and subject to rights and remedies available.
c) Refer Note No. 43.2
49 Disclosure in relation to Undisclosed Income
During the year, the Company has not surrendered or disclosed any income in the tax assessment under the Income Tax Act,1961(such
as, Search or Survey or any other relevant provision of the Income tax Act, 1961). Accordingly, there are no transactions which are not
recorded in the books of Accounts.
50 Segment Reporting
The Company's operations consist of construction/project activities and there are no other reportable segments under Indian Accounting
Standard 108 - Operating Segments.
51 Disclosure pursuant to Regulation 34(3) read with Schedule VA(2) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) regulations, 2015: There is no loan/ advance/ investment outstanding during the year in Subsidiaries,
Associates and Firms/ Companies in which Directors are interested.
52 In accordance with the provisions of "Indian Accounting Standard (Ind AS) -36 - Impairment of Assets" the Company has made an
assessment of the recoverable amount of assets based on higher of the value in use considering its projected scale of operations,
prevailing market conditions, future cash flows and future growth projections and estimated net selling price of the assets pertaining
to its various Cash Generating Units and found recoverable amount of these assets to be higher as compared to carrying value of assets
in its Financial Statements. Accordingly, management considers that there is no need for the provision on account of impairment of
assets.
53 The Company has claims in respect of cost over-runs arising due to client responsibility delays, client's suspension of projects, deviation
in design, change in scope of work etc., which are at various stages of negotiation/ discussion with the clients/ arbitration /litigation.
The realisability of these claims are estimated by the Company based on contractual terms, historical experience with similar claims as
well as legal opinion obtained from internal and external experts, wherever necessary. Revenue in respect of claim is recognised to the
extent the Company is reasonably certain of their realisation. Realisation of above claims may be lower than the claims recognized if the
Company decides to settle the same out of court in future considering the substantial time involved in litigation. Impact thereof will be
considered in the year of such settlement.
54 The Company has a regular programme of physical verification for its inventory and fixed assets. Further, during the year physical
verification of significant part of inventory and fixed assets has been carried out by the management and no material discrepancy was
found.
55 Other Statutory information
i) The Company do not have any benami property, and no proceeding has been initiated against the Company for holding any
benami property.
ii) The Company does not have any transactions with struck off companies during the year.
iii) The Company does not have any charge or satisfaction which is yet to be registered with ROC beyond the statutory period.
iv) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (ultimate beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries.
vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:
a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
funding party (ultimate beneficiaries) or
b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961
viii) The Company has not declared wilful defaulter by any banks or any other financial institution at any time during the financial year.
ix) All immovable properties are held in the name of the Company.
*The key ratios are not comparable as operations of the Company were not normal. The documents for implementation of the Approved
Resolution Plan by the Banks have been executed and the date of implementation of the Package/Resolution Plan has been declared by
banks as September 04, 2024.
57 Fig ures for the previous period have been reworked/regrouped/recasted, wherever considered necessary.
58 These standalone financial statements have been approved by Board of Directors of the Company in their meeting dated May 30, 2025
for issue to the shareholders for their adoption.
Material Accounting Policies 1-4
The accompanying notes are an integral part of the Standalone Financial Statements
As per our report of even date attached For and on behalf of the Board of Directors
For S A R C & Associates
Chartered Accountants
Firm's ICAI Registration No.: 006085N
per Kamal Aggarwal Darshan Singh Negi Anjanee Kumar Lakhotia
Partner Chief Financial Office Chairman & Managing Director
Membership No.: 090129 DIN-00357695
Place: New Delhi Anubhav Maheshwari Megha Singh
Date: May 30, 2025 Company Secretary Director
DIN-10565795
|