Description of nature and purpose of each reserve
a) Retained Earnings
Retained earnings are the profits that the company has earned till date less any transfers to General Reserves, Dividends or other distribution paid to shareholders
b) Securities Premium
Securities Premium is used to record the premium received on issue of securities. The reserve is utilised in accordance with the provisions of the Companies Act,2013.
c) Other Comprehensive Income
Other comprehensive income represents the cumulative actuarial gains & lossses on employee benefits net of taxes.
The above Annexure should be read with the basis of preparation and Material Accounting Policies appearing in Note No. 1 and 2 ,Notes to the Standalone Financial Statements.
(i) Gratuity
The Company has a defined benefit gratuity plan. Every employee who has completed at least five years of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed years of service subject to a maximum of Rs. 2 millions. The scheme is unfunded.
The following tables summarize the components of net benefit expense recognized in the Statement of Profit and Loss and amount recognized in the Other Comprehensive Income in relation to re-measurement gain or loss based on IND AS 19.
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Material Accounting Policies and explanatory notes to Standalone Financial Statements
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I mole - m commitment and Contingencies
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(i)
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Commitments
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(a)
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Particulars
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31-Mar-24
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Capital Commitments
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_
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44.01
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(ii) Contingent liabilities:
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(a) Claim against the company not acknowledge as debts is as follows-
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Particulars
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31-Mar-24
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Si-Mar-?*
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Demands raised by income tax authorities
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6.82
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6.82
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Demands raised by Indirect tax authorities
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25.01
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4.82
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Guarantees issued by the bank on the Company's behalf
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6,682.22
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5,524.82
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Corporate gurantees issed by Company on behalf of subsidiary companies
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1,860.00
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5,000.00
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Corporate Guarantee given to SPV namely M/s Ceigall Bathinda Dabwali Highways Pvt. Ltd. amounting to Rs. 1,860 millions is unconditional and irrevocable Corporate Guarantee as per bank sanction letter, shall be provided till receipt of first two full annuities.
The Company as part of its various commitments to be fulfilled under Construction Contracts has provided Bank Guarantees to various parties.
(b)
Pending resolution of the respective proceedings, it is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above as it is determinable only on receipt of judgments/decisions pending with various forums/authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its Standalone Financial Statement. The company does not expect the outcome of these proceedings to have a materially adverse effect on its financial position.
C. Performance Obligation
(i) Sales of goods:
Performance obligation is satisfied upon delieveryof goods. Payment is generally taken in advances or due within 30 to 90 days after delievery of goods
(i) Sales of Services:
The performance obligation is satisfied over time as the asset is under the control of customer and they simultaneously receives and consumes the benefits provded by the company. The Company receives progressive payment towards provision of services.
44 The company has reclassified the previous year figures wherever necessary to conform to this year's classification.
45 Borrowing costs were capitalised during the year amounting to Rs. 1.62 millions & (Previous year -Rs. 1.43 millions)
46 In the opinion of the Board, all assets other than Property, Plant and Equipment and non current investments have a value on realisation in the ordinary course of business at least equal to the value at which they are stated in the foregoining Balance
47 Interest in other entities Joint operations
The Company has interest in following joint arrangement which was set up as an Un-incorporated AOPs for construction of roads, highways and railways:
Classification of Joint Arrangements
The company has entered into joint arrangements with third parties through an association of persons (AOP). As per the contractual arrangements, the company being one of the party to the joint arrangements has right to the assets and obligations for the liabilities relating to the arrangement. Accordingly the joint arrangements have been identified has joint
Financial impact of joint controlled operations
The company accounts for assets, liabilities, revenue and expenses relating to its interest in joint controlled operations based on the internal agreements/arrangements entered into between the parties to the joint arrangements for execution of projects. Accordingly the company has recognized total income and expenditure, Assets and Liabilities as follows:-
- continue as a going concern while maximising the return to stakeholders through efficient allocation of capital towards expansion of business
- optimisation of working capital requirements and deployment of surplus funds into various investment options
The management of the Company reviews the capital structure of the Company on regular basis. As part of this review, the Board considers the cost of capital and the risks associated with the movement in the working capital.
The following table summarizes the capital of the Company:
The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.
Fair value of the Company's financial assets that are measured at fair value on a recurring basis:
There are certain Company's financial assets which are measured at fair value at the end of each reporting period. Following table gives information about how the fair values of these financial assets are determined:
The fair value of the financial assets and financial liabilities are included at the amount that would be received to sell an asset and paid to transfer a liability in an orderly transaction between the market participants. The following methods and assumptions were used to estimate the fair values:
- Investments traded in active markets are determined by reference to quotes from the financial institutions; for example: Net asset value (NAV) for investments in mutual funds declared by mutual fund house
- Trade receivables, cash & cash equivalents, other bank balances, loans, other current financial assets, Trade payables and other current financial liabilities: Approximate their carrying amounts largely due to short-term maturities of these instruments.
-There are no transfers between Level I, Level II and Level III during the year. _
^ ncia^sks;e,a^to ,he t™*" °f ,he risk! „,**
risks by diversification of investments credit limit to exposures etc The 'c *" 'quldlty nsk'The Company seeks to minimise the effects of these derivative financial instruments, for spec«“urp“eT ^ in“ °r "ade fl"3"‘ial '«"»'«». -eluding
Market risk
,r1:esu't from 3 chanee in ,he price °f 3
specific market movements cannot be normally predicted with reasonable accuracy °" iflVeStmentS' Future
Foreign currency risk management
The company does not have any exposure to foreign currency fluctuations.
::rr“=rrc:rs~T-r“-'*“"
concentrations of credit risk, principally consist o, balance with banks, in tmem „ d " ’***
=::n:rrffwhe"~
Credit risk rating
spe*lP7er^=rdit MSk °f ,inanCi3'““ bMed ~S ^ «-* o< assumptions, inputs and factors
A: Low credit risk on financial reporting date B: Moderate credit risk C: High credit risk
The Company has deployed its surplus funds into the units of
secIntTeT '" UndS'^ ^ °f lnvestments is ,mPa«ed by movements in interest rates, liquidity and credit quality of underlying NAV price sensitivity analysis
been l%h'igherTiowSer ^e,OW h3“e h83" de'“mined baSeP °" the exposure ,0 NAV price risks at the end °< reporting period. If NAV prices had • profit for the year ended
• March 31, 2024 would increase/decrease by INR 36.80 millions
• March 31, 2023 would increase/decrease by INR 24.86 millions Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company's position with regards to interest income and interest expenses and to manage the interest rate risk, Finance earn performs a comprehensive corporate interest rate risk management by having fixed rate funds only in its total portfolio.
According to the Company, there is no interest rate risk exposure for floating rate borrowings.
57 The quaterly returns or statements of current assets filed with the Banks or FI's are in agreement with the books of accounts.
58 No Transactions to report against the following disclosure requirements as notified by MCA pursuant to amended Schedule III:
(a) Crypto Currency or Virtual Currency
(b) There are no Proceedings initited or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.
(c) There are no charges or Satisfaction of charges which are yet to be registered with Registrar of Companies beyond the statutory period.
(d) The company is not declared a willful defaulter by any bank or FI's or any other lender.
(e) There are no transactions with any company struck off under section 248 of the Company's Act, 2013 or Section 560 of the Companies Act, 1956.
(f) No Revaluation of property,Plant and equipment as no such revaluation has taken place during the year.
(g) There are no Loans or advances in the nature of loans grated to Promoters, directors, KMP's and other related parties either severally or jointly with any other person that are repayable on demand or without specifying any terms or period of repayment.
(h) The Company has used accounting softwares for maintaining its books of account for the financial year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the softwares and audit trail feature is not tampered with.
60 The Code on Social Security, 2020
The Code on Social Security, 2020 ('Code') has been notified in Official Gazette on 29th September, 2020. The Code is not yet effective and related rules are yet to be notified. Impact if any of the changes will be assessed and recognised in the period in which said Code becomes effective and the rules framed there under are notified.
61 Maintenance of Books of accounts under Section 128 of the Companies Act, 2013
The Company has defined process to take daily back-up of books of account maintained electronically
(a) an accounting application does not support maintenance of logs of backups taken on the daily basis; (b) there has been instances where there are delays in taking backup in accounting application. The management is in the process of taking necessary steps to configure systems to ensure the logs of daily backup for books of account is maintained in order to ensure compliance with the requirements of the applicable statute.
62 Previous Year Comparatives
Previous year's figures have been regrouped/ reclassified, wherever necessary, to conform to current year classification.
63 Events after reporting period
There was no significant adjusting events that occurrred subsequent to the reporting period other than the events disclosed the relevent notes.
G. Reason for shortfall
The company has spent 7.99 millions in excess of the amount required to be spent for the year ended March 31, 2024 which have been transferred to prepaid account
The shortfall amounting to 12.07 millions for the year ended March 31, 2023 pertains to ongoing projects which has been transferred to separate unspend CSR account subsequent to year end in accordance with the provisions of section 135 (6) of the Companies act, 2013 out of which 7.52 millions is spent and closing unspent is 4.55 millions.
H. Nature of CSR activities: -
(i) Donations to CSR registered Hospitals, Gurudwaras & Religious Places
(ii) Educational facilities to under privileged and disabled children
(iii) Promotion of sports by way of providing sports equipments and setting up sports events
Basis Segmentation
l3nrld,anCe With,thTKeMirementS °f 'nd AS 108' Segment RePOrtin§'the C0mpany iS primarilv engaged in 3 business of civil construction and has no other primary
MSker(CO^rThTcOD^anar8 V*™ the C°mPanV a"0Cate the reS0UrCeS and aSSeSS the perform3nce of the Company, thus he is the Chief Operating Decision Maker (CODM). The CODM monitors the operating results of the business as a single segment, hence no separate segment needs to be disclosed.
Information about geographical areas
As the Company operates in India only, hence no separate geographical segment is disclosed.
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