u Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognised only when
(i) the Company has a present obligation (legal or constructive) as a result of a past event;
(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 amount 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.
v Statement of Cash Flows
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 transactions of a non-cash
nature;
(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and
(iii) all other items for which the cash effects are investing or financing cash flows.
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.
w Expected Credit Loss:
Losses (ECL) model for measurement and recognition of loss allowance on the following: • Trade receivables •
Financial assets measured at amortised cost (other than trade receivables); and • Financial assets measured at
fair value through other comprehensive income (FVTOCI). In accordance with Ind AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the trade receivables
or any contractual right to receive cash or another financial asset that results from transactions that are within the
scope of Ind AS 115. For this purpose, the Company follows ‘simplified approach' for recognition of impairment
loss allowance on the trade receivable balances. The application of simplified approach does not require the
Company to track changes in credit risk. As a practical expedient, the Company uses a provision matrix to
determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its
historically observed default rates over the expected life of the trade receivables, and is adjusted for forward
looking estimates. At every reporting date, the historical observed default rates are updated and changes in the
forward-looking estimates are analysed. In the case of other assets, the Company determines if there has been a
significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has
not increased significantly, an amount equal to twelve-month ECL is measured and recognised as loss allowance.
However, if credit risk has increased significantly, an amount equal to lifetime ECLis measured and recognised as
loss allowance.
X Other Income
Other income mainly comprises of interest income, dividend from investments, gain on sale of investments and
fair value gain/loss on investment measured at fair value through profit/ loss, which are held at the Balance Sheet
date.
a) Interest Income :
Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company, and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principle outstanding and at the effective interest rate applicable, which is the rate that discounts
the estimated future cash receipts through the expected life of the financial asset to that asset's net carrying
amount on initial recognition.
b) Dividends:
Dividend income from investments is recognised when the right to receive payment has been established,
provided that it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably.
c) Other Income:
Other income is recognised when no significant uncertainty as to its determination or realisation exists
Note :
i Company has not made any non cash allotment/ Bonus issue nor bought back any share during the last five
years.
ii None of sharesholder(s) of Company is it's holding company, ultimate holding company, subsidiaries, associates
of the holding company or associates of the ultimate holding company for current year and/or previous year.
iii There are no unpaid calls from any director or officers of the company for current and previous year.
i Voting :
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity
shares is entitled to one vote per share.
ii Liquidation :
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the
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.
33 The office of the Director General of GST Intelligence (DGGI) had carried out a Search and seizure operations at
the office of the Company at Mumbai on 6th January, 2021 under the provisions of Section 67 (1) and (2) of
CGST Act. The company has challenged the entire search and seizure proceedings and filed a writ petition with
the Honorable Gujarat High Court and the matter is sub-judice in law. In View of this we are unable to comment
on financial liabilities, arising out of the said procedings. The Company has deposited Rs.108.40 Lakhs under
protest, which is adjusted by department against disputed dues, no provision is made in the books as the
company has challanged the action of the department in the Honorable Gujarat High Court.
34 As per lnd AS 109 "Financial instrument" the company is required to consider "Provision for Expected Credit
Loss" on all financial assets on the basis of expected probability of Recoverability of such financial instrument.
During the year, company has written off Rs.37.02 lakhs and has provided Rs.2,769.36 Lakhs (Rs.4,243.58
Lakhs Previous year) as Expected Credit Loss (ECL), has setoff in financial statement Rs.2,769.36 Lakhs
(Rs.3,379.70 Lakhs - Previous year) in General Reserve & surplus and Net Balance Rs. NIL Lakhs (Rs.863.88
Lakhs - Previous year) as an Expected Credit Loss. As per management explanation, the receivable and advance
is in dispute and for balance receivable and advances, the management is following up with the parties and is
hopeful for recovery. But in the absence of adequate basis/ supporting documents, we are unable to comment on
the measurement of carrying amount of all the financial assets appearing in the financial statements as on 31st
March, 2025.
35 In the year ended 31st March, 2025, mainly due to adoption of prudent accounting practices and various
contractual reasons the company has reversed contractual revenue and corresponding sub-contracting costs and
other direct expenses. The corresponding disputed receipts and payments transactions relating to the said
contracts are still unsettled and reflected in the financial statements under the head “Other Current Liabilities” and
“Other Current assets”.
36 lncome tax Assets (Net) Amount of Rs. 2,442.95 (Rs 2,091.06 Lakhs Previous year) has been shown under other
Non-Current Assets out of which an amount of Rs 837.80 Lakhs has been recovered /adjusted by the lncome Tax
Demand for the Assessment Year 2008-09 and 2007-08, further against the due refund of Ay 2014-15 to 2022-23
but no provision has been made despite of the fact that no appeal is pending at any state in respect of these
payments. Management is of the opinion that the department has made erroneous addition which requires
rectification and is taking time as the matter is very old. However, management is confident of getting rectification
done before the end of financial year 2025-2026 and pending demand pertaining to Assessment year 2007-2008
and 2008-09 if any, will be provided for before the end of financial year 2025-2026.
37 During the year under review, the Authorised Share Capital of the Company has increased from 4,20,00,000
(Four Crore Twenty Lakh) Equity Shares of face value Rs. 10/- each, aggregating to Rs. 4,200 Lakhs, to
7,00,00,000 (Seven Crore) Equity Shares of face value Rs. 10/- each, aggregating to Rs. 7,000 Lakhs.
Further, during the year, the Company issued and allotted 1,95,39,040 (One Crore Ninety-Five Lakh Thirty-Nine
Thousand Forty) Equity Shares of face value ?10/- each, at a premium of Rs. 43/- per share, under a preferential
issue. This resulted in the Issued, Subscribed, and Paid-up Share Capital of the Company increasing to
5,96,94,340 (Five Crore Ninety-Six Lakh Ninety-Four Thousand Three Hundred Forty) Equity Shares of face
value ?10/- each, aggregating to Rs. 5,969.43 Lakhs.
The above allotment includes 1,12,20,000 (One Crore Twelve Lakh Twenty Thousand) Equity Shares issued
upon conversion of Share Warrants previously allotted under a preferential issue.
40 Details of pending litigation / arbitration claims
Company's claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances
given, receivables, etc is amounting to Rs.2116.73 Lakhs, which is under arbitration.
41 Trade payables, Trade receivables, Advances received, Advances given, GST Payable / input credit and Income
Tax assets (Net of liabilities) are subject to reconciliation and confirmation. The management is the process of
reconciling the same.
42 The Statement has been prepared in accordance with companies (Indian Accounting Standards) Rules,215
(indAS) prescribed under section 133 of the companies Act, 2013 and other recognized accounting practices and
policies to the extent applicable.
43 In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current
investments, have a realisable value in the ordinary course of business which is not different from the amount at
which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount
reasonably necessary.
44 The Company is engaged primarily in business of civil construction and infrastructure and accordingly there are
no separate reportable segments as per Indian Accounting standards (Ind AS) 108 dealing with the segment
reporting.
45 Company has booked turnover and costs related to joint venture entities and partners in the books of account.
However the whole projects have been handled by joint venture partners/entities and related TDS and GST
complied by Joint venture partners/entities.
46 The Inventory of Rs.685.78 Lakhs is in respect of ongoing Projects and includes uncerited work. This being a
technical matter, we have relied on the certicate of work in progress certied by the management of the company.
47 The Company have a program of verification to cover all the items of fixed assets in a phased manner, Fixed
assets were physically verified by the management during the year.
48 The Ratios for the year ended 31st March 2025 and 31st March, 2024 are as follows:
50 RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company's financial liabilities comprise mainly of borrowings, trade payables and other payables. The
Company's financial assets comprise mainly of investments, cash and cash equivalents, other balances with
banks, loans, trade receivables and other receivables. The Company has exposure to the following risks arising
from financial instruments:
a) Credit Risk
b) Liquidity Risk
c) Market Risk
a) Credit Risk : Credit risk is the risk that a counterparty will not meet its obligations under a nancial instrument or
customer contract, leading to a nancial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its nancing activities, including deposits with banks, mutual funds and
nancial institutions, foreign exchange transactions and other nancial instruments. The Company has adopted a
policy of only dealing with counterparties that have sufciently high credit standards and nancial strength. The
Company's exposure and credit ratings of its counterparties are continuously monitored, and the aggregate value
of transactions is reasonably spread amongst the several counterparties. Credit risk arising from derivative
nancial instruments and other balances with banks is limited, and there is no collateral held against these
because the counterparties are banks and recognised nancial institutions with high credit ratings assigned by the
reputed credit rating agencies.As regards, credit risk for investment in mutual funds, the Company limits its
exposure to credit risk by investing mainly in debt schemes issued by the mutual funds, wherein the fund
manager invests assets under the Management in highly rated instruments, which are of high credit ranking from
rating agency like CRISIL or the equivalent ratingagency. The Company monitors changes in credit risk by
tracking published external credit ranking. Based on its on-going assessment of counterparty risk, the Company
adjusts its exposure to various counterparties from time to time. Credit risk from trade receivables is managed by
the Company's established policy, procedures and control relating to customer credit risk management. Trade
receivables are mainly from stockist, distributors and direct customers, and are mostly non-interest bearing. Trade
receivables generally ranges from 30 days to 180 days credit term. Credit limits are established for customers
based on internal criteria and any deviation in credit limit requires approval of Head of the Department depending
upon the quantum and overall business risk. Majority of the customers have been doing business with the
Company for more than 3 years, and they are being monitored by individual business managers who deals with
those customers. The Management monitors trade receivables on regular basis and takes suitable action, where
needed, to control the receivables crossing set criterias/limits. Also, in case of international business, particularly
new customers, the Management reviews the business risk by evaluating economic situation of the country and
the customers, and generally starts the relation either on advance payment or on the basis of conrmed
irrevocable Letter of Credit. The Management does an impairment analysis at each reporting date on an
individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous
groups and assessed for impairment collectively. Further, the Company's customer base is widely distributed both
economically as well as geographically and, in view of the same, the quantum risk also gets spread across wide
base, and hence, the Management considers risk with respect to trade receivable as low. "
b) Liquidity Risk : 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 83 position and deploys a robust cash management system. The Company has an established
liquidity risk management framework for managing its short-term, medium term and long-term funding, and
liquidity management requirements. The Company manages the liquidity risk by maintaining adequate funds in
cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that
there is sufcient cash or cash equivalent available to meet all its normal operating commitments in a timely and
costeffective manner. Working capital requirements are adequately addressed by internally generated funds.
Trade receivables are kept within manageable levels. The Company aims to maintain the level of its cash and
cash equivalents and other highly marketable debt investments at an amount in excess of expected cash outows
on nancial liabilities over the next three to six months."
c) Market Risk : Market risk is the risk that the fair value of future cash ows of a nancial instrument will uctuate
because of changes in market conditions. Market risk comprises three types of risks:
I. Interest Rate Risk and,
ii. Equity Price Risk. Financial instruments affected by market risk include borrowings, trade payables, investments,
trade receivables, loans and derivative nancial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.
I) Interest Rate Risk: Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates.
ii) Equity Price Risk: The Company does not have any material exposure to equity price risk, as there is no major
investment in equity, except in its own subsidiaries, and accordingly, exposure to risk of changes in price is very
low."
51 Additional Regulatory Information/disclosures as required by General Instructions to Division II of Schedule III to
the Companies Act, 2013 :
a. The Company do not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
b. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the
statutory period.
c. The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.
d. 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).
e. The Company has not been declared wilful defaulter by any banks / Financial Institution.
The accompanying notes 1 to 51 are integral part of the financial statements
In terms of our report attached. For and on behalf of the Board of Directors
For Chaturvedi Sohan & Co.
Chartered Accountants
FRN: 118424W Vishram P Rudre Sudhakar B Tandale
Managing Director Whole Time Director
DIN 08564350 DIN 09083084
Vivekanand Chaturvedi
Vinay Kumar Ghuwalewala Anil Jha
M.No: 106403 Chief Financial Officer Company Secretary &
UDIN: 25106403BMIDMN2381
Place : Mumbai Place : Mumbai
Date : 22nd May 2025 Date : 22nd May 2025
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