m) Provisions, Contingent Liabilities and
Contingent assets
Provisions are recognised only when there is a present
obligation as a result of past events and when a
reliable estimate of the amount of obligation can
be made. Where the effect of time value of money is
material, the amount of provisions is the present value
of the expenditure required to settle the obligation.
These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.
Contingent liability is disclosed for (i) Possible
obligation which will be confirmed only by future
events not wholly within the control of the Company
or (ii) Present obligations arising from past events
where it is not probable that an outflow of resources
will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be
made. The company does not recognise contingent
liabilities but the same are disclosed in the Notes.
Contingent assets are not recognised in the financial
statements since this may result in the recognition of
income that may never be realized.
n) Dividends
Provision for dividends payable (including income
tax thereon) is accounted in the books of account
in the year when they are approved by the share
holders at the Annual General Meeting.
o) Earnings per share
Earnings per share is calculated by dividing the
net profit or loss for the year after tax attributable
to equity shareholders by the weighted average
number of equity shares outstanding during the
period. For the purpose of calculating diluted
earnings per share, the net profit or loss for the
period attributable to equity shareholders and the
weighted average number of shares outstanding
during the period are adjusted for the effects of
all dilutive potential equity shares. Further, if the
number of equity shares increases as a result of
bonus issue, the above calculations are adjusted
retrospectively for the previous year figures also.
p) Leases
The Company's leased assets primarily consist
of buildings. The Company assesses whether
a contract contains a lease, at inception of a
contract. 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) the
Company has substantially all of the economic
benefits from use of the asset through the period
of the lease and (iii) the Company has the right to
direct the use of the asset.
At the date of commencement of the lease, the
Company recognises a right-of-use (ROU) asset
and a corresponding lease liability for all lease
arrangements in which it is a lessee, except for leases
with a term of 12 months or less (short-term leases)
and low value leases. For these short-term and low-
value leases, the Company recognises the lease
payments as an operating expense on a straight-line
basis over the term of the lease. The ROU assets are
initially recognised at cost, which comprises the initial
amount of the lease liability adjusted for any lease
payments made at or prior to the commencement date
of the lease plus any initial direct costs less any lease
incentives. They are subsequently measured at cost
less accumulated depreciation and impairment losses.
ROU assets are depreciated from the commencement
date on a straight-line basis over the shorter of the
lease term and useful life of the underlying asset. The
lease liability is initially measured at amortised cost
at the present value of the future lease payments. The
lease payments are discounted using the interest rate
implicit in the lease or, if not readily determinable,
using the incremental borrowing rates. Lease liability
and ROU assets have been separately presented in
the Balance Sheet and lease payments have been
classified as financing cash flows.
q) Cash flow statement
Cash flows are reported using the indirect method,
whereby the profit before tax is adjusted for the
effects of transactions of non-cash nature and items
of income or expenses associated with investing and
financing activities. The cash flows are segregated
into operating, investing and financing activities.
r) Financial instruments
A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability
or equity instrument of another entity.
Initial recognition:
The company recognises financial assets and
liabilities when it becomes a party to the contractual
provisions of the instruments. All financial assets
and liabilities are recognised at fair value on initial
recognition. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and liabilities (other than the financial assets
and liabilities at fair value through profit and loss)
are added to or deducted from the fair value of
financial assets and liabilities, as appropriate, on
initial recognition. Transaction costs that are directly
attributable to the acquisition or issue of financial
assets and liabilities at fair value through profit or
loss are recognised immediately in profit or loss.
However, trade receivables that do not contain a
significant financing component are measured at
transaction price.
Subsequent measurement:
i) Financial assets carried at amortised cost:
A financial asset is subsequently measured at
amortised cost if it is held within a business
model whose objective is to hold the asset in
order to collect contractual cash flows, and the
contractual terms of the financial asset give
rise on specified dates to cash flows that are
solely payments of principal and interest on
the principal amount outstanding.
(ii) Financial assets at fair value through other
comprehensive income:
A financial asset is subsequently measured
at fair value through other comprehensive
income if it is held within a business model
whose objective is achieved by both collecting
contractual cash flows and selling financial
assets and the contractual terms of the financial
asset give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal amount outstanding.
Further, in cases where the Company has
made an irrevocable election based on its
business model, for its investments which are
classified as equity instruments, the subsequent
changes in fair value are recognised in other
comprehensive income.
(iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any
of the above categories is subsequently fair
valued through profit or loss.
De-recognition of financial assets:
The company de-recognises financial assets
when the contractual right to the cash flows
from the asset expires or when it transfers
the financial asset and substantially all the
risks and rewards of ownership of the asset
to another party.
Impairment of financial assets:
The company applies expected credit loss
(ECL) model for measurement and recognition
of loss assets in case of trade receivables and
other financial assets. For trade receivables,
the company applies simplified approach
which requires expected lifetime losses to
be recognised from initial recognition of
receivables. The company uses historical default
rates applied on the ageing of receivables
to determine loss allowance on portfolio of
trade receivables. At every reporting date,
these historical default rates are reviewed and
changes in the forward looking estimates are
analysed. In 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 has
not increased significantly, an amount equal
to 12-month ECL is measured and recognised
as a loss allowance. However, if the credit risk
has increased significantly, an amount equal
to lifetime ECL is measured and recognised as
a loss allowance. Subsequently, if the credit
quality of the financial asset improves such
that there is no longer a significant increase
in credit risk since initial recognition, the
company reversed the impairment loss
recognised earlier.
(iv) Financial liabilities
Financial liabilities are subsequently carried
at amortised cost using the effective interest
method. The effective method is a method of
calculating the amortisation cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest
is the rate that exactly discounts estimated
future cash payments through the expected
life of the financial liability to the net carrying
amount on initial recognition.
De-recognition of financial liability
The company de-recognises financial liabilities
when the company's obligations are discharged,
cancelled or expired. The difference between the
initial carrying amount of the financial liabilities
and their redemption value is recognised in the
statement of profit and loss over the contractual
terms using the effective interest method.
s) Recent accounting pronouncements:
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. During the year ended
31st March, 2026, MCA has notified the following
amendments to the existing standards:
- Ind AS 1 - Presentation of Financial Statements
- Ind AS 7 - Statement of Cash Flows
- Ind AS 21 - The Effects of Changes in
Foreign Exchange Rates
- Ind AS 107 - Financial Instruments: Disclosures
The Company believes that the aforementioned
amendments will not materially impact the financial
statements of the Company.
Notes:
1) Term loans taken by the company for purchase of Fixed assets are secured by way of hypothecation on respective assets
for which loans were availed. (Refer Note No.15)
2) Working Capital Loans from banks are secured by way of first charge on Property, Plant and Equipment of the company
both present and future, excluding those assets against which charge was given to equipment financiers. (Refer Note. 20)
3) None of the property plant & equipment for acquired / transferred by way of business combinations
4) The carrying values of any of the assets does not include any changes made on account of revaluation as on date
of balance sheet.
5) The title deeds of immovable properties were held in the name of the company.
6) No proceedings have been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 and rules made thereunder.
7) Lease hold improvements in the above table represent the improvements made in the premises taken on lease.
Note:
(i) The mode of valuation of inventories has been stated in Note 3(h) in Accounting Policies.
(ii) The cost of inventories recognised as an expense for the year ended 31st March, 2026 was Rs. 860.58 cr /- (for the year
ended 31st March, 2025: Rs. 812.45 cr)
(iii) All the above inventories are offered as security in respect of working capital loans availed by the company from all the banks.
(iv) There are no inventories expected to be liquidated after more than twelve months.
a) The average credit period is 30 days which is due from the date of certification of RA Bill. No interest is charged on
overdue receivables.
b) Of the trade receivables balance, Rs. 286.50 Cr (as at 31st March, 2025 : Rs. 215.02 Cr) is due from one of the Company's largest
customer. Further, an amount of Rs.332.35 Cr (as at 31st March, 2025 : Rs. 562.02 Cr) is due from customers who represent
more than 5% of the total balance of trade receivables.
c) In determining the provision for trade receivables, the company has used practical expedients based on the financial
conditions of the customer, historical experience of collections from customers, possible outcome of negotiations with
customers etc., The concentration of risk with respect to trade receivables is reasonably low as most of the receivables are
from Government organisations, high profile and net worth companies though there may be normal delay in collection. The
company has provided expected credit loss allowance based on provision matrix applied on the ageing of receivables which
are due with estimated loss rates.
f) Aggregate number of bonus shares issued during the period of 5 years immediately preceding the reporting date:
During the year 2024-25, the company has allotted Nos.1,58,08,146 Equity shares of f 10 /- each as fully paid-up bonus
shares to the existing shareholders in the ratio of 1:1, by capitalising f 15,80,81,460 /- out of securities Premium, in
accordance with the provisions of Sec 63 of the companies Act, 2013.
No bonus shares were issued in any of the other period out of last 5 financial years.
g) No shares were issued pursuant to a contract without payment being received in cash.
Nature of reserves:
a) Securities premium
Securities premium represents premium received on issue of shares. The reserve is utilised in accordance with the
provisions of section 52 of Companies Act, 2013.
b) General reserve
The general reserve is created by way of tranfer of part of the profits before declaring dividend pursuant to the provisions
of Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
c) Retained Earnings:
Retained earnings are the profits that the company has earned till date less transfers to general reserves and dividends
paid to share holders.
EMPLOYEE BENEFITS
a. Defined contribution plans
The Company makes Provident Fund and Employees' State Insurance Scheme contributions which are defined contribution
plans, for qualifying employees. The Company recognised Rs.41.38 cr- (Year ended 31st March, 2025: Rs. 29.96 cr) for provident
fund contributions, and Rs.5.52 cr (Year ended 31st March, 2025: Rs.4.08 cr) towards Employees' State Insurance Scheme
contributions in the Statement of Profit and Loss.
b. Defined benefit plans
The Company provides to the eligible employees defined benefit plans in the form of gratuity. The gratuity plan provides
for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment
of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of
five continuous years of service. The measurement date used for determining retirement benefits for gratuity is 31st March.
These plans typically expose the Company to actuarial risks such as investment risk, interest rate risk, longevity risk
and salary risk.
Risk Management:
Investment risk - The probability or likelihood of occurrence of losses relative to the expected return on any
particular investment.
Interest rate risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an
increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability.
Longevity risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the
mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants
will increase the plan's liability.
Salary risk - The present value of the defined benefit plan is calculated with reference to the future salaries of participants
under the plan. Increase in salary due to adverse inflationary pressures might lead to higher liabilities."
(vii) Sensitivity analysis
Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected
salary increase and employee turnover. The sensitivity analysis below have been determined based on the reasonably
possible changes of the assumptions occuring at the end of the reporting period and may not be representative of
the acutal change. It is based on a change in key assumption while holding all other assumptions constant. The result
of sensitivity analysis is given below.
Note:
i) a) The company received government grants in the nature of export incentives and the same is utilised against import
of Capital goods and capitalised to Property, Plant and Equipment.
b) The deferred government grant will be recognised in statement of profit and loss over the period in proportion to the
depreciation expense on the assets to which such grant is utilised is recognised.
(ii) The segregation of mobilisation advances received from customers has been made based on the estimated work to be
completed in next year and as per the terms of agreement entered with customers,turnover, terms of adjustment of amount
and estimates of the management.
*The borrowing is secured by way of the following:
i) exclusive mortgage on the collateral property of lease hold Industrial Built up property at Noida, UP owned by Power Mech
Industri Private Limited and
ii) Corporate Guarantee of Power Mech Industri Private Limited(subsidiary Company).
Note:
a) The Company used the borrowings for the purposes for which they were obtained.
b) Working capital loans from all the banks are secured by way of first charge on entire current assets of the
company on pari passu basis. Further these loans are secured by way of first charge on fixed assets both present and
future, excluding those assets against which charge was given to equipment financiers.
The said loans are collaterally secured by way of equitable mortgage of immovable properties belonging to the Company,
Managing director, director and a firm.
c) Overdraft facility from banks is secured against fixed deposits with banks.
d) All the above loans are guaranteed by Managing Director and a director in their personal capacities.
e) The above loans carries interest varies from 7.75 % to 9.70%
f) The company is not declared as will defaulters by any bank during the year.
g) Registration, Modification and Satisfaction of charges relating to the loans sanctioned/renewed during the year under
review, had been filed with the Registrar of Companies, within the prescribed time or within the extended time requiring
the payment of additional fees.
h) The company has availed working capital facilities against security of current assets. The revised quarterly returns and
statements comprising inventories, payables and receivables (including retention and security deposit amounts) filed by
the company with the banks subsequent to the quarterly review of accounts are in agreement with the unaudited books
of the company of the respective quarters and audited financials in respect of last quarter and no material discrepancies
have been noticed.
The fair value of financial instruments as referred to above note have been classified into three categories depending on the
inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identified
assets or liabilities [Level 1 measurements] and lowest priority to unobservable inputs [Level 3 measurements]
The categories used are as follows:
Level 1: Quoted prices for identified instruments in an active market.
Level 2: Directly or indirectly observable market inputs, other than Level 1 inputs; and
Level 3: Inputs which are not based on observable market data.
This note provides information about how the Company determines fair values of various financial assets and financial liabilities.
Fair value of the Company's financial assets and financial liabilities that are measured at fair value on a recurring basis.
Some of the Company's financial assets are measured at the fair value at the end of each reporting period.
The following table gives information about how the fair value of these financial assets and financial liabilities are determined
in particular, the valuation technique and other inputs used.
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, trade and other receivables.
The Company's business activities are exposed to a variety of financial risks namely credit risk, liquidity risk and foreign
currency risk. The Company's senior management has the overall responsibility for establishing and governing the Company's
risk management framework. The Company's risk management policies are established to identify and analyse the risks faced by
the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and
reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Board of Directors
of the Company.
A. Credit Risk
Credit risk is the risk of financial loss to the Company if a customer fails to meet its contractual obligation. Credit risk
encompasses both the direct risk of default and the risk of deterioration of credit worthiness. Credit risk is controlled by
monitoring and interaction with the customers on a continous basis.
Financial instruments that are subject to concentration of credit risk principally consists of trade receivables, retentions,
deposits with customers and unbilled revenue.
Receivables from customers
Concentration of credit risk with respect to trade receivables are limited since major customers of the company are from
public sector and accounts for 25% of its trade receivables. All trade receivables are reviewed and assessed for default on
a monthly basis. On historical experience of collecting receivables credit risk is low.
Other financial assets
The Company maintains exposure in cash and cash equivalents, term deposits with banks held as margin money against
guarantees and retention money and security deposits with customers which are to be released on fulfillment of conditions
as specified in the work orders.
The Company's maximum exposure of credit risk as at 31st March, 2026, 31st March, 2025 is the carrying value of each class
of financial assets.
B. Foreign currency risk management
Foreign currency risk is the risk that the Fair value or Future cashflows of an exposure will fluctuate due to changes in
foreign currency rates. Exposures can arise on account of various assets and liabilities which are denominated in currencies
other than Indian rupee. The Company has not entered in to any forward exchange contract to hedge against currency risk.
a) The company, in addition to its Indian operations, operates outside India through its project centres.
C. Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The
objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per
requirements. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient
liquidity to meet its liabilities when due. Also, the Company has availed credit limits with banks. The Company maintained
a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2026 and 31st March, 2025.
Cash flow from operating activities provides the funds to service the financial liabilities on a day to day basis.
The Company regularly maintains the rolling forecasts to ensure that it has sufficient cash on an on-going basis to
meet operational needs. Any short-term surplus cash generated, over and above the amount required for working capital
management and other operational requirements, is retained as cash and cash equivalents (to the extent required) and any
excess is invested in interest bearing term deposits.
The company is repaying its borrowings as per the schedule of repayment and no amount was pending for remittance
beyond its due date.
In case of borrowings from banks, the maturity pattern has been given under Note no. 15.
D. Capital Management
Equity share capital and other equity are considered for the purpose of Company's capital management.
The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimise returns to
shareholders. The capital structure of the Company is based on Management's judgment of its strategic day-to-day needs
with a focus on total equity so as to maintain investor, creditors and market confidence.
The Management and the Board of Directors monitors the return on capital as well as the level of dividends to shareholders.
The Company may take appropriate steps in order to maintain, or if necessary, adjust its capital structure.
43 Segment reporting:
Business Segment : The company prodominently operates only in construction and maintenance activities. This in the context
of IND AS - 108 ""Operating Segments "" is considered to constitute only one business segment."
Geographical Segment: The Company has operations within India and outside India and as per ind as 108 - ""operating segment
"", the Segment information has been presented under the notes to consolidated financial statements."
C) Reconciling the amount of revenue recognised in the statement of profit and loss with the contracted price :
There is no difference in the contract price negotiated and the revenue recognised in the statement of profit and loss for the
current year. There is no significant revenue recongnized in the current year from performance obligations satisfied in the
previous periods .
D) Performance obiligation :
The transaction price allocated to the remaining performance obligations is f 15,357 Cr which will be recognised as revenue over
the respective project durations. Generally the project duration of contracts with customers will be 1-3 years.
48 Dividend:
The board of Directors at its meeting held on 20th May, 2026 have recommended a final dividend of f 1.50/- each per
share of face value of f 10/- each for the financial year ended 31st March, 2026. The above is subject to approval at the
ensuing Annual General Meeting of the Company and hence not recognised as a liability.
49 Disclosure as per Regulation 53(f) of SEBI (Listing Obligation and Disclosure Requirements)
Regulations, 2015:
(ii) Details of investments made and guarantees given under Section 186 of the Companies Act, 2013 are disclosed in Note 6
and Note 36 respectively.
(iii) All the above loans and guarantees were given for carrying on their business activities.
50 Other disclosures: Additional regulatory and other information as required by the Schedule III to the
Companies Act 2013
(a) Relationship with Struck off Companies
The Company did not have any transactions with Companies struck off under Section 248 of Companies Act, 2013 or Section
560 of Companies Act, 1956 considering the information available with the Company.
(b) Compliance with number of layers of companies
The Company do not have any parent company and accordingly, compliance with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable for
the year under consideration.
(c) Scheme of arrangements
There are no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013 during the year.
(d) Advance or loan or investment to intermediaries and receipt of funds from intermediaries
The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources
or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall (i) 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 (ii) provide any
guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The company has also 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 (i) 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 (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(e) Undisclosed Income
The Company do not have any transaction which are not recorded in the books of accounts that has been surrendered or
disclosed as income in the tax assessments under the Income Tax Act, 1961 during any of the years.
(f) Details of Crypto Currency or Virtual Currency
The Company did not trade or invest in Crypto Currency or virtual currency during the financial year. Hence, disclosures
relating to it are no applicable.
51 Wage Code
On November 21, 2025, the Government of India notified provisions of the Code on Wages, 2019, the Industrial Relations Code,
2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, ('Labour
Codes') which consolidate twenty-nine existing labour laws into a unified framework governing employee benefits during
employment and post-employment. Based on the draft rules and FAQs issued by the ministry of labour and employment
and best available information, the Company has assessed the implications of Labour Codes which has resulted in increase
in gratuity liability arising out of past service cost by Rs. 3.41 Cr. Considering the impact arising out of an enactment of the
new legislation is not material to the financial statements, the amount has been recognised as part of employee benefits
expense in the Statement of Profit and Loss and has not been presented separately as an exceptional item for the year
ended 31st March, 2026. The Company continues to monitor the finalisation of central/state rules and other developments
pertaining to labour codes and would provide appropriate accounting effect based on the developments, if any.
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