1.12 PROVISION AND CONTINGENT LIABILITIES
Provisions are recognised when the Company has a
present legal or constructive obligation as a result
of a past events and it is probable that an outflow
of resources embodying economic benefits will be
required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised
for future operating losses.
Provisions are measured at the present value of
management's best estimates of the expenditure
required to settle the present obligation at the end
of the reporting period. The discount rate used
to determine the present value is a pre-tax rate
that reflects current market assessments of the
time value of money and the risk specific to the
liability. The increase in the provision due to the
passage of time is recognised as interest expense.
Contingent liability is not recognised. However, a
disclosure for contingent liabilities is made when
there is a possible obligation arising from past
events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one
or more uncertain future events not wholly within
the control of the Company or a present obligation
that arises from past events where it is either not
probable that an outflow of resources embodying
economic benefits will be required to settle or a
reliable estimate of the amount cannot be made.
1.13 INCOME TAX
The income tax expense or credit for the period
is the tax payable on the current period's taxable
income based on the applicable income tax rate for
each jurisdiction adjusted by changes in deferred
tax assets and liabilities attributable to temporary
differences and to unused tax losses.
The current income tax charge is calculated on
the basis of the tax laws enacted or substantively
enacted at the end of the reporting period in
the countries where the Company's operations
generate taxable income. Management
periodically evaluates positions taken in tax returns
with respect to situations in which applicable
tax regulation is subject to interpretation. It
establishes provisions where appropriate on
the basis of amounts expected to be paid to the
tax authorities.
Deferred income tax is provided in full, using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities and
their carrying amounts in the financial statements.
Deferred income tax is not accounted for if it arises
from initial recognition of an asset or liability in a
transaction other than a business combination
that at the time of the transaction affects neither
accounting profit nor taxable profit (tax loss).
Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantively
enacted by the end of the reporting period and
are expected to apply when the related deferred
income tax asset is realised or the deferred income
tax liability is settled.
Deferred tax assets are recognised for all deductible
temporary differences and unused tax losses/tax
credits only if it is probable that future taxable
amounts will be available to utilise those temporary
differences/credits and losses.
Deferred tax assets are not recognised for temporary
differences between the carrying amount and tax
bases of investments in foreign operations where it
is not probable that the differences will reverse in
the foreseeable future and taxable profit will not be
available against which the temporary difference
can be utilised.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets and liabilities and when the deferred
tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where
the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit
and loss, except to the extent that it relates to
items recognised in other comprehensive income
or directly in equity. In this case, the tax is also
recognised in other comprehensive income or
directly in equity, respectively.
1.14 REVENUE RECOGNITION
i) Revenue from Construction Contracts
Contract Revenue is recognised under
'percentage-of-completion method'. Use of the
'percentage-of-completion method' requires
the Company to measure the efforts or costs
expended to date to the satisfaction of a
performance obligation as a proportion of the
total expected efforts or costs to be expended to
the satisfaction of that performance obligation
over the time. Efforts or costs expended have
been used to measure progress towards
completion as there is a direct relationship
between input and productivity. Costs incurred
in the year in connection with future activity on
a contract are excluded from contract costs in
determining the stage of completion.
Further, the Company uses significant
judgements while determining the transaction
price allocated to performance obligation
using the expected cost plus margin approach.
When it is probable that total contract costs will
exceed total contract revenue, the expected
loss is recognised as an expense immediately.
When the outcome of a construction contract
cannot be estimated reliably, contract revenue
is recognised only to the extent of contract
costs incurred that are likely to be recoverable.
Variations in contract work, claims and
incentive payments are included in contract
revenue only to the extent that it is highly
probable that a significant reversal in the
amount of cumulative revenue recognised
will not occur and are capable of being
reliably measured.
ii) Revenue from Real Estate Projects
The Company recognises revenue at
transaction price based on execution of
agreement or letter of allotment and when
control of the goods or services are transferred
to the customer for which the Company is
expected to be entitled in exchange for those
goods or services excluding any amount
received on behalf of third party (such
as indirect taxes).The Company transfers
control of a good or service over time and
therefore, satisfies a performance obligation
and recognises revenue over time only if it
can reasonably measure its progress towards
complete satisfaction of the performance
obligation and having an enforceable right to
receive payment for performance completed
till the date of revenue recognisation.
The Company uses cost based input method
for measuring progress for performance
obligation satisfied over time. Under this
method, the Company recognises revenue in
proportion to the actual project cost incurred
as against the total estimated project cost.
The management reviews and revises
its measure of progress periodically and
considered the change in estimates and
accordingly, the effect of such changes in
estimates is recognised prospectively in the
period in which such changes are determined.
iii) Other Revenues
(a) Rendering of other services
Revenue from Oil Drilling services is
recognised when the service is performed
on a time basis at rates mutually agreed
with the customer.
(b) Interest income
Interest income from debt instruments
is recognised using the effective interest
rate method. The effective interest rate is
the rate that exactly discounts estimated
future cash receipts through the expected
life of the financial asset to the gross
carrying amount of a financial asset. When
calculating the effective interest rate,
the entity estimates the expected cash
flows by considering all the contractual
terms of the financial instrument (for
example, prepayment, extension, call and
similar options) but does not consider the
expected credit losses.
(c) Dividends
Dividends are recognised in profit and
loss only when the right to receive
payment is established, it is probable that
the economic benefits associated with
the dividend will flow to the Company,
and the amount of the dividend can be
measured reliably.
(d) Sale of traded goods
Revenue from sale of traded goods is
recognised upon transfer of significant
risk and rewards of ownership of such
goods without retaining effective control
over the goods sold and when associated
costs of purchase of such goods and
related revenue can be measured reliably.
(e) Rental income
Rental income arising from operating
leases is accounted for on a straight-line
basis over the lease terms and is included
in revenue in the statement of profit or
loss due to its operating nature.
1.15 BORROWING COST
Borrowing cost attributable to the acquisition of
qualifying assets (i.e. the assets that necessarily
take substantial period of time to get ready for
their intended use) are added to the cost up to the
date when such assets are ready for their intended
use. Other borrowing cost are expensed in the
period in which they are incurred. Borrowing costs
consist of interest and other costs that an entity
incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange differences
to the extent regarded as an adjustment to the
borrowing costs.
1.16 TRANSACTIONS IN FOREIGN CURRENCIES
i) Functional and presentation currency
Items reported in the financial statements
are measured using the currency of the
primary economic environment in which the
entity operates (the functional currency).
The financial statements of the Company are
presented in Indian Rupee (H) which is the
functional and presentation currency of the
Company.
ii) Transactions and balances
Foreign currency transactions are translated
into the functional currency at the reporting
date using the exchange rates at the dates
of the transactions. Foreign exchange gains
and losses resulting from the settlement of
such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates
are generally recognised in Statement of Profit
and Loss. They are deferred in equity if they are
attributable to part of the net investment in a
foreign operation. A monetary item for which
settlement is neither planned nor likely to
occur in the foreseeable future is considered as
a part of the Company's net investment in that
foreign operation.
Foreign exchange differences regarded as an
adjustment to borrowing costs are presented
in the statement of profit and loss under
finance cost. All other foreign exchange gains
and losses (including notional) are presented
in the statement of profit and loss on a net
basis.
Non-monetary items that are measured in
terms of historical cost in a foreign currency
are translated using the exchange rate at the
date of the transaction.
1.17 FOREIGN OPERATIONS
The result and financial position of foreign
operations (none of which has the currency of a
hyper-inflationary economy) that have a functional
currency different from the presentation currency
are translated into the presentation currency as
follows:
Assets and liabilities are translated at the
closing rate at the date of the Balance sheet.
• Income and expenses are translated at average
exchange rates (unless this is not a reasonable
approximation of cumulative effect of the rates
prevailing on the transaction dates, in which
case income and expenses are translated at
the dates of the transactions), and
• All resulting exchange differences are
recognised in Other Comprehensive Income.
1.18 DIVIDEND
Provision is made for the amount of any dividend
declared, being appropriately authorised and no
longer at the discretion of the Company, on or
before the end of the reporting period but not
distributed at the end of the reporting period.
1.19 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing
net profit and loss for the period attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
period. Earnings considered in ascertaining the
Company's earnings per share is the net profit and
loss for the period. The weighted average number
of equity shares outstanding during the period
and for all periods presented is adjusted for events,
such as bonus shares, other than the conversion of
potential equity shares, if any, that have changed
the number of equity shares outstanding, without a
corresponding change in resources. For the purpose
of calculating diluted earnings per share, the net
profit and 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.
1.20RECENT PRONOUNCEMENTS
The below amendments to the existing standard
which are notified by Ministry of Corporate affairs
but are not yet effective:
Amendment to Ind AS 1 'Presentation of Financial
Statements'- Classification of Liabilities as current
or non-current and non-current liabilities with
covenants. The amendment includes specific
provisions that will take effect for reporting periods
beginning on or after 151 April, 2026, retrospectively,
as outlined below:
(a) Breach of material covenant for long-term loan
arrangement on or before end of reporting
period with effect that liability becomes
payable on demand as on reporting date,
then it shall be classified as current liability,
if lender agreed after reporting period and
before approval of financial statements to not
demand payment as a consequence of breach.
(b) Classify as non-current liability, if lender
agreed by end of reporting period to provide
grace period ending at least 12 months after
reporting period within which entity can rectify
the breach provided lender does not demand
immediate repayment.
(c) Disclose information about the timing of
settlement to understand the impact of the
liability on the financial statements.
The Company does not expect this amendment
to have an impact on its operations or financial
statements.
1A Critical estimates and judgements
The preparation of the financial statements in
conformity with Ind AS requires the Management to
make estimates, judgement and assumptions which
affect the reported amount of assets, liabilities,
revenue and expenses and the accompanying
disclosures. The application of accounting policies
that require critical accounting estimates involving
complex and subjective judgements and the use
of assumptions in these financial statements have
been disclosed below. Accounting estimates could
change from period to period. Actual results could
differ from those estimates. Appropriate changes in
estimates are made as the Management becomes
aware of changes in circumstances surrounding the
estimates. Change in estimates are reflected in the
financial statements in the period in which such
changes are made and, if material, their effects are
disclosed in the notes to the financial statements.
a) Defined Benefit Plans (Gratuity and other
post-employment benefits): Refer Note 21.
b) Depreciation/Amortisation and useful
lives of Property, Plant and Equipment /
Intangible Assets: Refer Note 1.3, 1.4, 2, 2(a)
and 3.
c) Fair value measurement of financial
instruments: Refer Note 26.
d) Revenue Recognition: Refer Note 1.14, 7(b)
and 9.
e) Allowance for expected credit losses: Refer
Note 27.
f) Provisions: Refer Note 1.12.
g) Taxes: Refer Note 1.13, 8, 13, 17 and 25.
h) I mpairment of Non-Financial Assets: Refer
Note 1.5, 2, 2(a), 3, 5 and 9.
i) Impairment of Financial Assets and Contract
Assets: Refer Note 1.7(E), 4(a), 4(b), 7(a), 7(b),
7(e) and 7(f).
(ii) Exchange differences comprise C1,659 [31st March, 2025: C128] being adjustments on account of exchange
fluctuations relating to Property, plant and equipment of foreign operations and Property, plant and equipment
written off C822 (F.Y. 2024-25 C19,105) during the year and considered as exceptional item.
(iii) The Net Carrying Amount of Plant and Equipment as on 31st March, 2026 includes Tools C1,040 (31st March, 2025:
C618).
(iv) No proceedings have been initiated on or are pending against the company for holding benami property
under the Prohibition of Benami Property Transactions Act, 1988 (as amended in 2016) [formerly the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988)] and Rules made thereunder.
(iv) The Promoters/ Promoter Group shall maintain pledge of 11% of Equity share holding of the Company on fully
diluted basis in favour of NARCL until exit, as an additional security. Accordingly, the Promoters have pledged
11% equity share holding in the Company in favour of NARCL.
(v) As per terms of MRA, the Company undertakes to raise H10,000 by way of Preferential issue of Equity shares/
Convertible Warrants to Promoter / Investor for its business purposes. The Board of Directors of the Company at
its meeting held on 28th March, 2025 had approved Preferential issue of Equity shares/ Convertible Warrants to
Non-Promoters/Promoters. The Company have received In - Principle approval in terms of Regulation 28(1) of the
SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015 for raising H42,369 as under accordingly:
a) On 29th May, 2025 the Company has allotted 72,39,447 fully paid-up equity shares of the Company, having
face value of H2/- each at an issue price of H289/- per equity share (including a premium of H287/- per equity
share) aggregating H20,922 to Non-Promoters by way of fresh infusion of funds on a preferential basis.
b) On 29th May, 2025 the Company has allotted 74,20,935 Convertible Warrants at an issue price of H289/-
aggregating H21,447 to Promoter Group and Non-Promoters on a preferential basis upon receipt of 25%
upfront payment per convertible warrant aggregating to H5,362. One fully paid-up equity share of face
value of H2/- each of the Company will be allotted against each convertible warrant, subject to receipt of
balance 75% of the issue price H216.75 per convertible warrant from the allottees to exercise conversion
option.
c) On 21st July, 2025 as per terms of issue the Company has allotted 8,65,052 fully paid-up equity shares of face
value H2/- each, at an issue price of H289/- per equity share (including a premium of H287/- per equity share)
by conversion of 8,65,052 Convertible Warrants to a Non-Promoter Investor.
Note 10(a): Equity share capital (Contd..)
(vi) On 22nd July, 2025 the Company has allotted 10,00,000 fully paid-up equity shares of the Company, having
face value of H2/- each at an issue price of H294/- per equity share (including a premium of H292/- per equity
share) aggregating H2,940 to a Lender by conversion of outstanding debts into equity shares as per terms and
conditions of settlement agreement.
(vii) The Company has during the current financial year ended 31st March, 2026 received H28,159 lakhs through
proceeds from preferential allotment of Equity shares and warrants. Out of the same, the Company has utilised
H17,288 lakhs during the year for working capital and general corporate purposes.
Nature and purpose of Reserves
Capital Reserve: Represents mainly amount out of forfeiture of equity shares and warrants for non-payment of call
money and arisen pursuant to acquisition of additional interest in a Joint Venture.
Capital Redemption Reserve: Represents amount on redemption of Preference Shares and will be utilised as per the
provisions of the Companies Act, 2013.
Securities Premium Reserve: Represents amount received from share holders in excess of face value of the equity
shares and will be utilised as per the provisions of the Companies Act, 2013.
Debenture Redemption Reserve: The Company is required to create a debenture redemption reserve out of the
profits which will be utilised for the purpose of redemption of Debentures.
Contingency Reserve: Represents reserve created out of Surplus in earlier years in the Statement of Profit and Loss
for meeting future contingencies, if any.
General Reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend
to general reserve pursuant to the earlier provisions of Companies Act, 1956 and will be utilised as per the provisions
of the Companies Act, 2013. Mandatory transfer to general reserve is not required under the Companies Act, 2013.
D. Debt Restructuring
The majority of erstwhile lenders of the Company accounting for 85.44% of Debt, assigned the outstanding
debt in favour of National Asset Reconstruction Company Limited ("NARCL") vide the Master Restructuring
Agreement('MRA') dated 15th January, 2025. NARCL has appointed Indian Debt Resolution Company ("IDRCL") as
an exclusive service agent for providing debt management and various resolution services. IDRCL, on behalf of
NARCL have executed the MRA with the Company on 15th January, 2025 effective from 28th March, 2024 with a
cut-off date of 31st March, 2024 and restructuring has been implemented on 31st March, 2025.
The Company undertakes to pay sustainable debt of H1,25,000 over a period of 7 years to all the lenders as per
the terms of the MRA. In addition, Company shall issue to NARCL 15% of the equity share on a fully diluted basis
from conversion of unsustainable debt at the applicable price and lock-in period. Accordingly the Company has
allotted to NARCL below mentioned fully paid-up equity shares having face value of H2/- each by conversion of a
part of the unsustainable debt:
(i) 1,00,84,027 nos of equity shares allotted on 28th March, 2025, at an issue price of H281.36 per equity share
(including a premium of H279.36 per equity share) aggregating H28,373;
(ii) 25,91,000 nos of equity shares allotted on 29th May, 2025, at an issue price of H289/- per equity share
(including a premium of H287/- per equity share) aggregating H7,488 and
(iii) 1,73,000 nos of equity shares allotted on 22nd July, 2025, at an issue price of H294/- per equity share (including
a premium of H292/- per equity share) aggregating H509.
In case of default by the Company under MRA terms, the NARCL in its sole discretion can extend or revoke the
MRA including reinstatement of the assigned outstanding debt amount of H8,04,636 adjusted for the amounts
already repaid and converted into equity along with interest in accordance with the last sanction letters of the
respective lenders.
Note 11: Non-current Borrowings (Contd..)
Restructuring has been implemented after complying with the condition precedent of the MRA. Subsequent to
MRA major portion of non-assigned debts have been settled. The Company is in discussions for settlement with the
remaining one non-assigned lender consisting less than 0.50% of the total debts.
In addition to the balance amount of the sustainable debt outstanding as at 31st March, 2026 amounting to H94,858
the Company has also retained in the books of account H69,775 as unsustainable debt provided for in consonance of
the MRA conditions and the outstanding debt of the non-assigned lenders.
(e) Unsustainable debt amounting to H16,982 (F.Y. 2024-2025: H456,548) has been written back during the year and
considered as an exceptional item to reflect the fair value of the loans remaining after restructuring as per MRA
and OTS.
(f) The securities, in respect of Term Loans, as acknowledged by the Company are as follows:-
i) Pari passu 1st charge by way of hypothecation on the present and future current assets of the Company in
India including stocks of raw materials, stock in progress, material at sites and in transit, stores/spares and
receivables.
ii) Second pari passu charge on plant & equipment and other movable fixed assets of the Company in India
(except those are exclusively charged).
iii) Exclusive charge on the specific fixed assets.
iv) First pari passu charge on specified immovable fixed assets & first charge on specified movable fixed assets
of the Company.
v) Additionally, the Company has created following additional securities as per terms of the MRA in addition to
as mentioned in Note No. 11(D),10(a)(iv).
(a) Mortgage by the Company on unencumbered specific immovable assets of the Company as set out in
MRA in favour of the Security Trustee and such mortgage created shall subsist at all times until the exit,
(b) Hypothecation on the receivables from Awards and/Conciliation in favour of Security Trustee and such
hypothecation shall subsist until exit,
(c) Hypothecation on the receivables from other sources including the claims under dispute etc. in favour
of the Security Trustee and such hypothecation shall subsist until the Final Settlement.
(d) Hypothecation on specific investments of the Company in favour of the Security Trustee and such
hypothecation shall subsist until exit.
a) Defined Contribution Plans
The Company has recognised, in the Statement of Profit and Loss for the year ended 31st March, 2026 an amount
of H349 (31st March, 2025 : H351) as expenses under defined contribution plans.
b) Post Employment Defined Benefit Plans
i) a) Gratuity (Funded)
The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As
per the scheme, the Gratuity Trust fund managed by the Trust, makes payment to vested employees on
retirement, death, incapacitation or termination of employment, of an amount based on the respective
employee's eligible salary (half month's salary) depending upon the tenure of service subject to a maximum
limit of amount payable under Payment of Gratuity Act. Vesting occurs upon completion of five years of
service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note
1.10, based upon which, the Company makes contribution to the Gratuity fund.
Note 21: Employee Benefits Expense (Contd..)
b) Gratuity (Unfunded)
The Company provides for gratuity, a defined benefit retirement plan covering employees of a foreign
branch. As per the scheme, the Company makes payment to vested employees on retirement, death,
incapacitation or termination of employment, of an amount based on the respective employee's eligible
salary (one month's salary) depending upon the tenure of service subject to a maximum limit of twenty
month's salary. Vesting occurs upon completion of one year of service. Liabilities with regard to the unfunded
Gratuity plan are determined by actuarial valuation as set out in Note 1.10.
ii) End of Service Benefit / Severance Pay [ESB/SP] (Unfunded)
The Company provides for End of Service Benefit / Severance Pay (unfunded) defined benefit retirement plans
for certain foreign branches covering eligible employees. As per related schemes, the Company makes payment
to vested employees on retirement, death, incapacitation or termination of employment, of an amount based on
the respective employee's eligible salary for specified number of days (ranging from five days to actual period of
service rendered) depending upon the tenure of service. Vesting occurs upon completion of one year of service
(except for a foreign branch where there is no vesting period). Vesting period is not applicable in case of death or
disability in certain foreign branches. Liabilities with regard to the End of Service Benefit / Severance Pay Scheme
are determined by actuarial valuation as set out in Note 1.10.
c) Other long term employee benefit plan
Leave Encashment Scheme [LES] (Unfunded)
The Company provides for accumulated leave benefit for eligible employees payable at the time of retirement
of service subject to maximum of ninety / one hundred twenty days (for India and a foreign branch) and in case
of other foreign branches, actual number of days outstanding based on last drawn salary. Liabilities with regard
to leave encashment scheme are determined by actuarial valuation as set out in Note 1.10.
d) Risk Exposure
Aforesaid post-employment defined benefit plans typically expose the Company to actuarial risks, most
significant of which are discount rate risk, salary escalation risk and demographic risk.
Discount Rate Risk
The Company is exposed to the risk of fall in discount rate. A fall in discount rate will eventually increase the
ultimate cost of providing the above benefit thereby increasing the value of the liability.
Salary Escalation Risk
The present value of defined benefit plan liability is calculated by reference to the future salaries of plan
participant. An increase in the salary of plan participants will increase the plan liability.
Demographic Risk
In the valuation of lia bility certain demographic (mortality and attrition rates) assumptions are made. The
Company is exposed to this risk to the extent of actual experience eventually being worse compared to the
assumptions thereby causing an increase in the plan liability.
Note 21: Employee Benefits Expense (Contd..)
(ix) Provident Fund
Provident Fund contributions in respect of certain employees are made to Trust administered by the Company
and such Trust invests funds following a pattern of investments prescribed by the Government. Both the employer
and employee contribute to this Fund and such contributions together with interest accumulated thereon are
payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The
benefit vests immediately on rendering of services by the employee. The interest rate payable to the members
of the Trust is not lower than the rate of interest declared annually by the Government under the Employees'
Provident Funds and Miscellaneous Provisions Act, 1952 and shortfall, if any, on account of interest is to be made
good by the Company.
The Actuary has carried out actuarial valuation of interest rate guarantee obligations as at the Balance Sheet
date using Projected Unit Credit Method and Deterministic Approach as outlined in the Guidance Note 29
issued by the Institute of Actuaries of India. Based on such valuation, there is no future anticipated shortfall with
regard to interest rate guarantee obligation of the Company as at the balance sheet date. Further during the
year, the Company's contribution of H132 (F.Y. 2024-25: H141) to the Provident Fund Trust, has been expensed
under "Contribution to Provident and Other Funds". Disclosures given hereunder are restricted to the information
available as per the Actuary's report.
Note 26 (i): Fair value hierarchy
This section explains the judgements and estimates made in determining the fair values of the financial instruments
that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are
disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining
fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting
standard based on the inputs used to arrive at fair value measurements. An explanation of each level follows
underneath the table.
Level I: Level I hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments
that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the
closing price as at the reporting period.
Level II: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as
little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable,
the instrument is included in level II.
Level III: If one or more of the significant inputs is not based on observable market data, the instrument is included
in level III.
The carrying amount of financial assets and liabilities measured at amortised cost in the financial statements are a
reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would
be significantly different from the values that would eventually be received or settled. The fair values for the same
were calculated based on cash flows discounted using a current lending rate. They are classified as level III fair values
in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.
Note 26: Fair value measurements (Contd..)
Note 26 (i): Fair value hierarchy (Contd..)
(ii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
1. The fair values of investment in quoted equity instruments is based on the current market price of respective
instruments as at the Balance Sheet date.
2. The fair values of the derivative financial instruments have been received from the respective Banks which
has been determined by using valuation techniques with market observable inputs at the end of each
reporting dates.
Note 27: Financial Risk Management
The Company's business activities are exposed to a variety of financial risks, namely liquidity risk, market risks and
credit risk. The Company's senior management has the overall responsibility for establishing and governing the
Company's financial risk management framework. The Company has constituted a Risk Management Committee,
which is responsible for developing and monitoring the Company's financial risk management policies. The Company's
financial risk management policies are established to identify and analyse the risks faced by the Company, to set and
monitor appropriate controls.
(A) Credit risk
Credit risk refers to risk that a counterparty will default on its contractual obligations resulting in financial loss
to the Company. Credit risk arises primarily from financial assets such as trade receivables, contract assets, bank
balances, loans, investments and other financial assets.
At each reporting date, the Company measures loss allowance for certain class of financial assets and
contract assets based on historical trend, industry practices and the business environment in which the
Company operates.
Trade receivables includes Government and Non-Government customers and diversified in various construction
verticals and geographies. All trade receivables are reviewed and assessed on a quarterly basis.
Credit risk arising from investments, derivative financial instruments and balances with banks is limited because
the counterparties are banks and recognised financial institutions with high credit worthiness.
(i) Excessive risk concentration
Concentrations arise when a number of counterparties are engaged in similar business activities, or activities
in the same geographical region, or have economic features that would cause their ability to meet contractual
obligations to be similarly affected by changes in economic, political or other conditions. Concentrations indicate
the relative sensitivity of the Company's performance to developments affecting a particular industry.
In order to avoid excessive concentrations of risk, the Company focus on the maintenance of a diversified
portfolio. Identified concentrations of credit risks are controlled and managed accordingly.
(ii) Allowance for expected credit losses
The Company measures Expected Credit Loss (ECL) for financial assets and contract assets based on historical
trend, industry practices and the business environment in which the Company operates.
Note 27: Financial Risk Management (Contd..)
(A) Credit risk (Contd..)
Expected Credit Loss is the present value of the difference between:
(a) the contractual cash flows that are due to an entity under the contract; and
(b) the cash flows that the entity expects to receive
The Company recognises in profit and loss, the amount of expected credit losses (or reversal) that is required to
adjust the loss allowance at the reporting date in accordance with Ind AS 109.
Judgements are required in assessing the recoverability and determining whether a provision against those
receivables is required. Factors considered include the creditworthiness of the counterparty, the amount
and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of
non-payment.
In determination of the allowances for credit losses, the Company has used a practical expedience by computing
the expected credit losses based on ageing matrix, which has taken into account historical credit loss experience
and adjusted for forward looking information.
Note 27: Financial Risk Management (Contd..)
(B) Liquidity risk
Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities.
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 following table shows the maturity analysis of the Company's derivative and non-derivative financial
liabilities based on contractually agreed undiscounted cash flows.
(C) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other
price risk.
The sensitivity analyses in the following sections relate to the position as at 31st March, 2026 and 31st March, 2025.
The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating
interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all
constant. The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market
risks. This is based on the financial assets and financial liabilities held at 31st March, 2026 and 31st March, 2025.
a) Interest rate risk: Interest rate risk is measured by using cash flow sensitivity for changes in variable interest
rate. Any movement in the reference rates could have an impact on the Company's cash flow as well as
cost. The management is focused towards reducing the volatility due to interest rates, which is reflected in
proportion of variable interest rate borrowing to total borrowing.
b) Foreign currency risk: Foreign currency risk is the risk that the fair value or future cash flows of an exposure
will fluctuate due to changes in foreign exchange rates. The Company generally enters into forward exchange
contracts to hedge against its foreign currency exposures relating to the recognised underlying liabilities /
assets and firm commitments. The Company's policy is to hedge its exposures other than natural hedge. The
Company does not enter into any derivative instruments for trading or speculative purposes.
c) Other price risk: The Company's exposure to securities price risk arises from investments in equity
instruments held by the Company and classified in the balance sheet as FVPL and FVOCI respectively.
Note 28: Capital Management
(a) Risk management
The Company's objectives when managing capital are to
• safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders
and benefits for other stakeholders, and
• maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
shareholders, return capital to shareholders or issue new shares.
Note 32: Information in accordance with the requirements of the Indian Accounting Standard
(Ind AS 115) on 'Revenue from Contracts with Customers'. (Contd..)
(iii) Contract balances (Contd..)
The credit period towards trade receivables generally ranges between 30 to 180 days. Further the customer
retains certain amounts as per the contractual terms which usually fall due on the completion of defect liability
period (DLP) of contract. These retentions are made to protect the customer from the Company failing to
adequately complete all or some of its obligations under the contract.
Contract assets are initially recognised for revenue earned from transfer of goods and services but not billed to
customer because the work completed has to meet technical requirements as well as various milestones as set
out in the contract with customers. Upon fulfilling the said requirements and acceptance by the customer, the
amounts recognised as contract assets are reclassified to trade receivables. Contract liabilities include advances
received from customers towards mobilisation of resources, purchase of materials, etc. Impairment losses
recognised on contract assets and trade receivables have been disclosed in Note 27.
(v) 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 during the period in the
statement of profit and loss.
(vi) Performance obligation
Method used to recognise revenue and timing of satisfaction of performance obligations have been disclosed
in Note 1.14. The transaction price allocated to the remaining performance obligations (unsatisfied or partially
unsatisfied) is H119,465 (31st March, 2025: H178,449), which will be recognised as revenue over the respective
project durations. Generally the project duration of contracts with customers is more than 12 months.
Note 33: Assets pledged as security
The carrying amounts of certain categories of assets pledged as security for current and non-current borrowings
pursuant to the requirements of Ind AS 2, Ind AS 16, Ind AS 38 and Ind AS 107:
Amount of credit facilities utilised aggregating H74,490 (31st March, 2025: H67,784) against corporate guarantee given
to banks of H74,490 (31st March, 2025: H67,784) in respect of an associate. Increase in outstanding balance is due to
currency revalution.
The management is of the view backed by the opinions of the legal and contract business teams that the contingent
liabilities underlying the Corporate Guarantee provided to the Associate is adequately covered by the expected
ongoing arbitration claims receivables. There appears no likelihood of this contigent liability impacting the cash
flows of the Company.
Note 36: Exceptional Items
Exceptional items for the year ended 31st March, 2026 represents net gain of H 77 (31st March, 2025 H1,429) resulting out
of adjustment of unsustainable debt (including interest) pursuant to MRA / Settlement agreements and adjustments
of various Current and Non-Current Assets as well as Liabilities to carry the same at fair value in the Balance Sheet as
at 31st March, 2026.
Note 37: The quarterly returns or statements filed for the year ended 31 March, 2026 by the Company for working
capital limits with banks are in agreement with the books of account of the Company authorities.
Note 41: Amount subject to master netting arrangements but not offset:
The Company does not have any financial assets and financial liabilities subject to master netting arrangements but
not offset in the respective financial years.
Note 42: The Government of India has notified the "New Labour Codes" with effect from 21st November, 2025 and
related Rules on 8th May, 2026. Impact on the basis of available information and interpretation has been provided in the
Financial Statements for year ended on 31st March, 2026. The Company continues to monitor further developments
and clarifications from the Government on various aspects of the New Labour Codes and would provide appropriate
accounting effect on the basis of such developments.
Note 46: Previous year's figures are regrouped/ rearranged, where necessary, to conform to the current year's
presentation.
|