Notes to Accounts of ARSS Infrastructure Projects Ltd.

Mar 31, 2025

2.13 Provisions & Contingent Liabilities:

i) A provision is recognized if, as a result of a past event, the Company has a present legal obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required
to settle the obligation. Provisions are determined by the best estimate of the outflow of economic
benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made,
a disclosure is made as contingent liability. Contingent assets are not recognized.

ii) Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of obligations
may be small.

2.14 Contributed equity :

i) Equity:

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

ii) Dividends :

Provisions is made for any amount of dividend declared, being appropriately authorized and no longer
at the discretion of the entity, on or before the end of reporting period but not distributed at the end of
the reporting period.

2.15 Earning Per Share

i) Basic Earning Per Share

Basic Earning Per Share is calculated by dividing the profit attributable to owners of the company by
the weighted average number of equity shares outstanding during the financial year.

ii) Diluted Earning Per Share

Diluted Earning Per Share adjusts the figures used in the determination of the basic earning per share
to take into account the after income tax effect of interests or other finance costs associated with the
dilutive potential equity shares and the weighted average number of additional equity shares that would
have been outstanding assuming the conversion of all dillutive potential equity shares.

2.16 Segment Reporting

Ind AS 108 establishes standards for the way that public business enterprises report information about
operating segments and related disclosures about products and services, geographic areas, and major
customers. The Company''s operations predominantly relate to providing end-to-end business solutions to
enable clients to enhance business performance. Based on the "management approach" as defined in Ind
AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates
resources based on an analysis of various performance indicators by business segments and geographic
segments. Accordingly, information has been presented both along business segments and geographic
segments. The accounting principles used in the preparation of the financial statements are consistently
applied to record revenue and expenditure in individual segments, and are as set out in the significant
accounting policies.

Revenue and identifiable operating expenses in relation to segments are categorized based on items
that are individually identifiable to that segment. Revenue for “all other segments” represents revenue
generated from customers located in India. Allocated expenses of segments include expenses incurred
for rendering services. Certain expenses such as depreciation, which form a significant component of
total expenses, are not specifically allocable to specific segments as the underlying assets are used
interchangeably. Management believes that it is not practical to provide segment disclosures relating to
those costs and expenses, and accordingly these expenses are separately disclosed as "unallocated" and
adjusted against the total income of the Company.

Assets and liabilities used in the Company''s business are not identified to any of the reportable segments, as
these are used interchangeably between segments. Management believes that it is currently not practicable
to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the
available data is onerous.

Geographical information on revenue and business segment revenue information is collected based on
individual customers invoiced or in relation to which the revenue is otherwise recognized.

2.17 Rounding of amounts :

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as
per the requirement of Division II of Schedule III to the Act, unless otherwise stated.

Note - 3 Recent Accounting Pronouncement :

Accounting Pronouncement Issued but not effective :

i) Ind AS 116 Leases :

Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases
Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the
recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the
lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to
recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying
asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss.
The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries
forward the lessor accounting requirements in Ind AS 17.

The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1,2019.

On completion of evaluation of the effect of adoption of Ind AS 116, the Company is proposing to use the
‘Modified Retrospective Approach’ for transitioning to Ind AS 116, and take the cumulative adjustment to
retained earnings, on the date of initial application (April 1,2019). Accordingly, comparatives for the year
ended March 31, 2019 will not be retrospectively adjusted. The Company has elected certain available
practical expedients on transition.

ii) Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments:

Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments
which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax
losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind
AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority
accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in
their income tax filing which has to be considered to compute the most likely amount or the expected value
of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax
credits and tax rates.

The standard permits two possible methods of transition - i) Full retrospective approach - Under this
approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance
with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight
and ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity
on initial application, without adjusting comparatives.

The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1,
2019. The Company will adopt the standard on April 1,2019 and has decided to adjust the cumulative effect
in equity on the date of initial application i.e. April 1,2019 without adjusting comparatives.

The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.

iii) Amendment to Ind AS 12 - Income taxes

On March 31,2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, ‘Income
Taxes’, in connection with accounting for dividend distribution taxes. The amendment clarifies that an entity
shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or
equity according to where the entity originally recognised those past transactions or events.

Effective date for application of this amendment is annual period beginning on or after April 1,2019. The
Company is currently evaluating the effect of this amendment on the standalone financial statements.

iv) Amendment to Ind AS 19 - plan amendment, curtailment or settlement-

Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with
accounting for plan amendments, curtailments and settlements.

The amendments require an entity:

• to use updated assumptions to determine current service cost and net interest for the remainder of the
period after a plan amendment, curtailment or settlement; and

• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in
a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling.

Effective date for application of this amendment is annual period beginning on or after April 1,2019. The
Company does not have any impact on account of this amendment.

Note - 4 Critical Estimates and Judgements:
i) Use of Estimates :

The preparation of the financial statements in conformity with Ind AS requires the management to
make estimates, judgements and assumptions. These estimates, judgments and assumptions affect
the application of accounting policies and the reported amounts of assets and liabilities, the disclosures
of contingent assets and liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the period. Application of accounting policies that require critical
accounting estimates involving complex and subjective judgments 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 management becomes aware of changes in circumstances surrounding the estimates. Changes
in estimates are reflected in the financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial statements.

ii) Critical Accounting Estimates :

a) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company.
The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful life and residual
values of company''s assets are determined by management at the time the asset is acquired and
reviewed periodically, including at each financial year end. The life is based on historical experience
with similar assets as well as anticipation of future events, which may impact their life, such as changes
in technology.

b) Income Taxes :

The Company''s major tax jurisdictions is India . Significant judgements are involved in determining the
provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

c) Defined benefit obligation

The cost of the defined benefit plans and the present value of the defined benefit obligation are
based on actuarial valuation using the projected unit credit method. An actuarial valuation involves
making various assumptions that may differ from actual developments in the future. These include the
determination of the discount rate, future salary increases and mortality rates. Due to the complexities
involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting date.

d) Impairment of trade receivables

The company estimates the uncollectibility of accounts receivables by analysing historical payment
patterns, customer concentrations, customer credit worthiness and current economic trends. If the
financial condition of customer deteriorates, additional allowances may be required.

*The construction of Damoh- Batiyagarh-Baxwala-Hirapur section of state Highway No. 37, which was alloted to
ARSS Damoh Hirapur Tolls Pvt. Ltd. has been terminated by the Concessionaire(MPRDC) in June 2013. ADHTPL
has not received any revenue from this project. The matter is under arbitration since 2013. After assessment of
the arbitration proceedings , the management is of the opinion that there is a huge uncertainty of revoverability
of this amount.

** ARSS Developers Ltd. is involved in the business of Real Esate development. ARSS Infrastructure Projects Ltd.
holds 38.41% stake in ADL as on 31.03.2025. ARSS Developers Ltd. has negative Net Worth of '' 6.06 crores. After
Considering the external liabilities payable by ADL to its Creditors, there will be additional accretion to the negative
value of Equity Share Holders.

Note 40 : Risk exposure of Defined Benefits Obligations

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility :

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create
a deficit. Most of the plan asset investments is maintained with LIC India. These are subject to interest rate risk and the fund manages interest
rate risk to minimize risk to an acceptable level.

Changes in Bond yields :

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plan funds maintained
with the SBI Life.

Credit risk refers to the risk of default on its obligation by the counter-party resulting in a financial loss. The maximum exposure to the credit
risk at the reporting date is primarily trade receivables from customers other than government entities. These trade receivables are typically
unsecured and are derived from revenue earned from domestic and foreign customers. Credit risk is managed through credit approvals,
establishing credit limits and continuously monitoring the credit-worthiness of customers to which the company grants credit terms in the
normal course of business. On account of adoption of Ind AS 1,09, the company uses expected credit loss model to assess impairment
loss or gain. the company uses a matrix to compute the expected credit loss allowance for trade receivables.

Credit risk is managed on instrument basis. For Banks and financial institutions, only high rated banks /institutions are accepted. For other
financial instruments, the company assesses and maintains an internal credit rating system. The finance function consists of a separate
team who assess and maintain internal credit rating system.

b) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an
adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature
of the underlying businesses, the company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position (comprising the undrawn borrowing facilities below) and cash
and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits
set by the company. These limits vary by locations to take into account the liquidity of the market in which the entity operates. In addition,
the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets
necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining
debt financing plans.

Note 53: Capital management

(a) Risk management

The company''s objectives when managing capital are to:

- safeguard their ability to continue as a going concern, so that they 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 on capital
to shareholders or issue new shares. The company monitors capital using gearing ratio, which is net debt divided by total Equity. Net debt
comprises of long term and short term borrowings less cash and bank balances. Equity includes equity share capital and reserves that are
managed as capital. The gearing at the end of reporting period was as follows:

NOTE 58:

Segment Reporting As per Ind AS 108 “Operating Segments”

Based on the policy set out under Significant Accounting Policy, the company follows "management Approach" for the purpose of deciding
operating segments. The operating results of each major project locations are regularly reviewed by the entity''s chief operating decision maker
to make decisions about resources to be allocated to that location and assess its performance. Accordingly, the company has decided not to
treat each project location as its operating segments considering huge number of project locations and its permanency.

NOTE 59:

Additional Disclosures As per Ind AS 108 "Operating Segments"

(i) Revenue From Customers Exceeding 10% of Total Revenue

As per Para 34 of Ind AS 1,08, if revenues from transactions with a single extrernal customer amount to 10 per cent or more of an entity''s
revenues, the company is required to disclose that fact, the total amount of revenues from each such customer, and the identity of the
segment or segments reporting the revenues. The details of such disclosure is as below :

Note 64:

Recognition of Corporate Guarantee as Financial Liability

Financial guarantee is a contractual right of the lender to receive cash from the guarantor, and a corresponding contractual obligation of the
guarantor to pay the lender, if the borrower defaults. The contractual right and obligation exist because of a past transaction or event (assumption
of the guarantee), even though the lender''s ability to exercise its right and the requirement for the guarantor to perform under its obligation are
both contingent on a future act of default by the borrower. A contingent right and obligation meet the definition of a financial asset and a financial
liability, even though such assets and liabilities are not always recognized in the financial statements. Based on the measurement principles laid
down under Ind AS 109 "Financial Instrument: Recognition and Measurement", the fair value of all those financial guarantee contracts resonable
below to the materiality threshold limit set by the company. Accordingly the entity has made appropriate disclosure in Note 54 without additionally
recognizing any financial assets or liability.

Note 65:

Micro, Small and Medium Enterprises (MSME) Dues Disclosure

There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for a period of more than 45 days as at the
balance sheet date. The above information and that given under Current liabilities regarding Micro, Small and Medium enterprises has been
determined to the extent such parties have been identified on the basis of information available with the Company.

Note - 70

CIRP Matter

Corporate Insolvency Resolution Process (CIRP) has been initiated against the Company vide the order no. CP(IB) No. 34/CB/2021
dated November 30, 2021 by the Hon''ble National Company Law Tribunal, Cuttack Bench (NCLT) under the provisions of the Insolvency
and Bankruptcy Code, 2016 whereby Mr. Uday Narayan Mitra has been appointed Interim Resolution Professional and his appointment as
Resolution Professional was confirmed by the Committee of Creditors. Pursuant to initiation of CIRP, the class of creditors have placed their
claims berore the IRP/ RP. The summary of the claims received, Claims Admitted etc. (as on 31-03-2024) have been tabulated below:

The particulars of aforementioned claims have been uploaded on IBBI Portal at the link below:-
https://ibbi.gov.in/claims/claimProcess/L14103QR2000PLC006230

The aforementioned claims as placed by different category of creditors as specified above is a compilation of the claims admitted / not admitted
as per the extant guidelines of IBC 20,16, the same may or may not be sitting under the relevant line item in the Financial Statements. The
Resolution plan submitted by SRA is under Sub judice.

During the FY 2023-24, the Claim of '' 919.79 crore of SREI Equipment Finance Limited (SREI) has been admitted by RP pursuant to the order
of Hon''ble NCLAT. It is now expected that the Arbitration claims of '' 1,082.06 cr assigned to SREI prior to the commencement of CIRP, should
come back to the CD. Despite multiple reminders by the RP to SREI, a detailed communication on the status of such Arbitration claims from
SREI is still awaited. Pending such communication, the quantum and status of such arbitration claims could not be evaluated. Here it is pertinent
to mention that the RP has filed a petition before Hon''ble NCLT Cuttack Bench in this regard.

Note 71:

There was a search & seizure operation by Enforcement Directorate (ED) was conducted on 4th October, 2024 at the company''s registered
office for further enquiry in the matter of Pearl Agro Corporation Limited (PACL) which is disputed since long.

Note 72:

The Hon'' ble Cuttack bench of NCLT, Odisha has heard the Resolution Plan matter on dated 20th May 2025 and reserved the order.

Note 73:

The Serious Fraud Investigation Office has intiated investigation into the affairs of the company during the year 2024-25.

As per our report of even date attached.

For M A R S & Associates For and on behalf of the Board

Chartered Accountants (Suspended during CIRP)

FRN : 010484N

Sd/- Sd/- Sd/- Sd/-

(CA. Vipul Kumar Gupta) (Rajesh Agarwal) Subash Agarwal (Uday Narayan Mitra)

Partner Managing Director Chairman Resolution Professional

M.No.:- 522310 DIN: 00217823 DIN: 00218066 IP Reg. No .: IBBI/IPA-001/

IP-P00793/2017-18/11360

Date : May 28, 2025 Sd/- Sd/-

Bhubaneswar (Prakash Chhajer) (S.K. Pattanaik)

UDIN: 25522310BMOTAH6738 Company Secretary Chief Financial Officer

---

Mar 31, 2024

2.13 Provisions & Contingent Liabilities:

i) A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. Contingent assets are not recognized.

ii) Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

2.14 Contributed equity :

i) Equity:

Equity shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

ii) Dividends :

Provisions is made for any amount of dividend declared , being appropriately authorized and no longer at the discretion of the entity, on or before the end of reporting period but not distributed at the end of the reporting period.

2.15 Earning Per Share

i) Basic Earning Per Share

Basic Earning Per Share is calculated by dividing the profit attributable to owners of the company by the weighted average number of equity shares outstanding during the financial year.

ii) Diluted Earning Per Share

Diluted Earning Per Share adjusts the figures used in the determination of the basic earning per share to take into account the after income tax effect of interests or other finance costs associated with the dilutive potential equity shares and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dillutive potential equity shares.

2.16 Segment Reporting

Ind AS 108 establishes standards for the way that public business enterprises report information about operating segments and related disclosures about products and services, geographic areas, and major customers. The Company’s operations predominantly relate to providing end-to-end business solutions to enable clients to enhance business performance. Based on the “management approach” as defined in Ind AS 108, the Chief Operating Decision Maker (CODM) evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments. Accordingly, information has been presented both along business segments and geographic segments. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments, and are as set out in the significant accounting policies.

Revenue and identifiable operating expenses in relation to segments are categorized based on items that are individually identifiable to that segment. Revenue for “all other segments” represents revenue generated from customers located in India. Allocated expenses of segments include expenses incurred for rendering services. Certain expenses such as depreciation, which form a significant component of total expenses, are not specifically allocable to specific segments as the underlying assets are used interchangeably. Management believes that it is not practical to provide segment disclosures relating to those costs and expenses, and accordingly these expenses are separately disclosed as “unallocated” and adjusted against the total income of the Company.

Assets and liabilities used in the Company’s business are not identified to any of the reportable segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

Geographical information on revenue and business segment revenue information is collected based on individual customers invoiced or in relation to which the revenue is otherwise recognized.

2.17 Rounding of amounts :

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Lakhs as per the requirement of Division II of Schedule III to the Act, unless otherwise stated.

3) Recent Accounting Pronouncement :

Accounting Pronouncement Issued but not effective :

i) Ind AS 116 Leases :

Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1,2019.

On completion of evaluation of the effect of adoption of Ind AS 116, the Company is proposing to use the ‘Modified Retrospective Approach’ for transitioning to Ind AS 116, and take the cumulative adjustment to retained earnings, on the date of initial application (April 1,2019). Accordingly, comparatives for the year ended March 31,2019 will not be retrospectively adjusted. The Company has elected certain available practical expedients on transition.

ii) Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments:

Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

The standard permits two possible methods of transition - i) Full retrospective approach - Under this approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 -Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight and ii) Retrospectively with cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives.

The effective date for adoption of Ind AS 12 Appendix C is annual periods beginning on or after April 1, 2019. The Company will adopt the standard on April 1, 2019 and has decided to adjust the cumulative effect in equity on the date of initial application i.e. April 1,2019 without adjusting comparatives.

The effect on adoption of Ind AS 12 Appendix C would be insignificant in the standalone financial statements.

iii) Amendment to Ind AS 12 - Income taxes

On March 31,2019, Ministry of Corporate Affairs issued amendments to the guidance in Ind AS 12, ‘Income Taxes’, in connection with accounting for dividend distribution taxes. The amendment clarifies that an entity shall recognise the income tax consequences of dividends in profit or loss, other comprehensive income or equity according to where the entity originally recognised those past transactions or events.

Effective date for application of this amendment is annual period beginning on or after April 1,2019. The Company is currently evaluating the effect of this amendment on the standalone financial statements.

iv) Amendment to Ind AS 19 - plan amendment, curtailment or settlement-

Ministry of Corporate Affairs issued amendments to Ind AS 19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments and settlements.

The amendments require an entity:

• to use updated assumptions to determine current service cost and net interest for the remainder of the period after a plan amendment, curtailment or settlement; and

• to recognise in profit or loss as part of past service cost, or a gain or loss on settlement, any reduction in a surplus, even if that surplus was not previously recognised because of the impact of the asset ceiling.

Effective date for application of this amendment is annual period beginning on or after April 1, 2019. The Company does not have any impact on account of this amendment.

4) Critical Estimates and Judgements:

i) Use of Estimates :

The preparation of the financial statements in conformity with Ind AS requires the management to make estimates, judgements and assumptions. These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period. Application of accounting policies that require critical accounting estimates involving complex and subjective judgments 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 management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

ii) Critical Accounting Estimates :

a) Property, plant and equipment

Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful life and residual values of company’s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The life is based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology.

b) Income Taxes :

The Company’s major tax jurisdictions is India. Significant judgements are involved in determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions.

c) Defined benefit obligation

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

d) Impairment of trade receivables

The Company estimates the uncollectibility of accounts receivables by analysing historical payment patterns, customer concentrations, customer credit worthiness and current economic trends. If the financial condition of customer deteriorates, additional allowances may be required.

NOTE 41 : Risk exposure of Defined Benefits Obligations

Through its defined benefit plans, the Company is exposed to a number of risks, the most significant of which are detailed below: Asset volatility :

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is maintained with LIC India. These are subject to interest rate risk and the fund manages interest rate risk to minimize risk to an acceptable level.

Changes in Bond yields :

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plan funds maintained with the SBI Life.

Inflation risks :

In the gratuity plans, the payment are not linked to inflation, so there is less material risk.

Level 1 : This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments(including bonds) which are traded in the stock exchange is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 :Fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the counter derivatives) is determined using valuation techniques which maximize 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 as observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification assets.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily trade receivables from customers other than government entities .These Trade receivables are typically unsecured and are derived from revenue earned from domestic and foreign customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess impairment loss or gain. the company uses a matrix to compute the expected credit loss allowance for trade receivable .

Credit risk management

Credit risk is managed on instrument basis. For Banks and financial institutions, only high rated banks /institutions are accepted. For other financial instruments, the company assesses and maintains an internal credit rating system. The finance function consists of a separate team who assess and maintain internal credit rating system.

(B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits set by the company. These limits vary by locations to take into account the liquidity of the market in which the entity operates. In addition, the company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Note No. 54: Capital management (a) Risk management

The company’s objectives when managing capital are to;

- safeguard their ability to continue as a going concern, so that they 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 on capital to shareholders or issue new shares. The company monitors capital using gearing ratio, which is net debt divided by total Equity. Net debt comprises of long term and short term borrowings less cash and bank balances. Equity includes equity share capital and reserves that are managed as capital. The gearing at the end of reporting period was as follows:

NOTE - 65

Recognition of Corporate Guarantee as Financial Liability

Financial guarantee is a contractual right of the lender to receive cash from the guarantor, and a corresponding contractual obligation of the guarantor to pay the lender, if the borrower defaults. The contractual right and obligation exist because of a past transaction or event (assumption of the guarantee), even though the lender’s ability to exercise its right and the requirement for the guarantor to perform under its obligation are both contingent on a future act of default by the borrower. A contingent right and obligation meet the definition of a financial asset and a financial liability, even though such assets and liabilities are not always recognized in the financial statements. Based on the measurement principles laid down under Ind AS 109 “Financial Instrument :Recognition and Measurement”, the fair value of all those financial guarantee contracts resonable below to the materiality threshold limit set by the company. Accordingly the entity has made appropriate disclosure in Note 57 without additionally recognizing any financial assets or liability.

NOTE - 66

Micro, Small and Medium Enterprises (MSME) Dues Disclosure

There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for a period of more than 45 days as at the balance sheet date. The above information and that given under Current liabilities regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

CIRP Matter

Corporate Insolvency Resolution Process(CIRP) has been initiated against the Company vide the order no. CP(IB) No. 34/ CB/2021 dated November 30, 2021 by the Hon’ble National Company Law Tribunal, Cuttack Bench (NCLT) under the provisions of the Insolvency and Bankruptcy Code, 2016 whereby Mr. Uday Narayan Mitra has been appointed Interim Resolution Professional and his appointment as Resolution Professional was confirmed by the Committee of Creditors. Pursuant to initiation of CIRP, the class of creditors have placed their claims berore the IRP/ RP. The summary of the claims received , Claims Admitted etc (as on 31-03-2024) have been tabulated below:

https://ibbi.aov.in/claims/claimProcess/L14103OR2000PLC006230

The aforementioned claims as placed by different category of creditors as specified above is a compilation of the claims admitted / not admitted as per the extant guidelines of IBC 2016 , the same may or may not be sitting under the relevant line item in the Financial Statements. The Resolution plan submitted by SRA is under Subjudice .

During the FY 2023-24, the Claim of '' 919.79 crore of SREI Equipment Finance Limited (SREI) has been admitted by RP pursuant to the order of Hon’ble NCLAT. It is now expected that the Arbitration claims of '' 1082.06 cr assigned to SREI prior to the commencement of CIRP, should come back to the CD. Despite multiple reminders by the RP to SREI, a detailed communication on the status of such Arbitration claims from SREI is still awaited. Pending such communication, the quantum and status of such arbitration claims could not be evaluated. Here it is pertinent to mention that the RP has filed a petition before Hon’ble NCLT Cuttack Bench in this regard.

As per our report of even date attached.

For M A R S & Associates For and on behalf of the Board

Chartered Accountants (Suspended during CIRP)

FRN : 010484N

Sd/- Sd/- Sd/- Sd/-

(CA. Vipul Kumar Gupta) (Rajesh Agarwal) Subash Agarwal (Uday Narayan Mitra)

Partner Managing Director Chairman Resolution Professional

M.No.- 522310 DIN : 00217823 DIN-00218066 IP Reg. No .: IBBI/IPA-001/

IP-P00793/2017-18/11360

Date : The 10^th day of August, 2024 Sd/- Sd/-

Bhubaneswar (Prakash Chhajer) ( S.K. Pattanaik)

Company Secretary Chief Financial Officer

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Mar 31, 2018

1) Company Overview

ARSS infrastructure Projects Limited (the company) is a public limited company incorporated and domiciled in India. The company has its primary listings on the BSE Limited and National Stock Exchange of India Limited, in India. The company is engaged in execution of contracts of various infrastructure projects including road work, bridge work, railway tracking and irrigation projects.

(i) The leasehold land pertains to land under lease agreement with Orissa Industrial Infrastructure Development Corporation to be amortized over the lease tenure of Sixty-Four Years.

(ii) Details of property plant & equipment pledged as security - Refer Note No. 52

(iii) Refer Note No. 56 for estimated useful life of different class of Property ,Plant & Equipment.

(iv) The amount of intangible asset is below rounding off norms of the company.

(v) Plant and Equipment includes capital stores to the tune of 31 lakhs as on 31st March 2018 ,Rs. 5 lakhs as on 31st March 2017 & Rs.8 Lakhs as on 1st April 2016.

(vi) The Company has made downward revaluation of its fixed assets during the year resulting a revaluation loss of Rs.9510.76 lakhs

**Total Claimed Receivable amounting to Rs.148555 Lakhs is under dispute / arbitration. Same are subject to the outcome of arbitration and /or Reconciliation proceedings arising out of various contractual obligations. The element of realisable profit and actual expenditure incurred has been considered and amount of ''133044Lakhs is accounted based on reasonable certainty of realisation of the same and are considered good and realisable by the Management

*Fixed deposit with carrying amount of INR 3,363 lakhs including interest accrued on the same (31^stMarch,2017: INR 5,807 lakhs and 1^st April,2016:INR 6,186 lakhs) are pledged against bank guarantees as security deposit ,EMD and Margin account.

(i) The company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.

(ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

(iii) The company has issued during the year 78,94,736 number of equity shares in persuant to CDR condition

(E) There are no shares reserved for issue under options and contracts or commitments for the sale of shares or disinvestment.

(F) For the period of five years immediately preceding the date at which the balance sheet prepared the company has not :

(i) Allotted any shares as fully paid up pursuant to contract without payment being received;

(ii) Allotted any shares as fully paid up by way of bonus; and

(iii) Bought back any shares

(i) Rupee loan from bank carries interest @ 10 % to 10.5% p.a.The loans are repayable in quarterly installments from 01.10.2013. The above loans are secured by way of mortgage of land and building, assets acquired out of such loan and also backed by personal guarantee of Promoters.

(ii) Rupee loan from NBFCs Carries interest @9% to 12% p.a and are repayable in monthly instalments. The above loans are secured by way of mortgage on assets acquired out of such loan. The Loans are repayable over 3 to 5 years.

(iii) Term Loan (TL) under CDR and governed by Master Restructuring Agreement(MRA) dated 6th September 2012, with State Bank of India, Punjab National Bank, ICICI Bank Ltd., IDBI Bank Ltd., State Bank of Bikaner & Jaipur & Bank of India. The amount repayable is over a period from FY 2016-17 to 2020-21.

(iv) This loan is secured by equitable mortgage of immovable property of the Company and promoters, pari-passu charge on plant & machinery of the company (excluding land & office flat & equipments on which other lenders are having first charge) and irrevocable and unconditional personal guarantees of the Directors and pledge of shares held by promoters in the Company.

(v) Interest rate for all term loan are subject to periodic review.

(vi) Refer the note no. 58 for detail disclosure on repayment schedule and rate of interest.

(vii) Current Borrowings from others represents amounts borrowed from related party.

(viii) Debt component of Equity Instruments includes redeemable preference share capital issued under CDR package.

Note 2 : Income Tax Expenses

This note provides an analysis of the company’s income tax expenses, show amounts that are recognized directly in equity and how the tax expenses is affected by non-assessable and non-deductible items. It also explains significant estimates made in relation to the company’s tax position.

(b) Reconciliation of tax expenses and the accounting profit multiplied by India’s tax rate :

During current year and previous year the company has incurred loss hence there is no current tax required to be payable under Income Tax Act,1961. Accordingly, reconciliation of tax expenses is not required.

NOTE 3 : Risk exposure of Defined Benefits Obligations

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Asset volatility :

The plan liabilities are calculated using a discount rate set with reference to bond yields; if plan assets underperform this yield, this will create a deficit. Most of the plan asset investments is maintained with LIC India. These are subject to interest rate risk and the fund manages interest rate risk to minimize risk to an acceptable level.

Changes in Bond yields :

A decrease in bond yields will increase plan liabilities, although this will be partially offset by an increase in the value of the plan funds maintained with the SBI Life.

Inflation risks :

In the gratuity plans, the payment are not linked to inflation, so there is less material risk.

(ii) Fair value hierarchy:

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are

(a) recognized and measured at fair value, and

(b) measured at amortized 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 three levels prescribed under the Ind AS 113 “Fair Value Measurements An explanation of each level follows underneath the table.

Level 1 : This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments(including bonds) which are traded in the stock exchange is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 : Fair value of financial instruments that are not traded in an active market (for example, traded bonds, over the counter derivatives) is determined using valuation techniques which maximize 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 as observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification assets.

(iii) As per Ind AS 107 “Financial Instrument: Disclosure, fair value disclosures are not required when the carrying amounts reasonably approximate the fair value. Accordingly fair value disclosures have not been made for the following financial instruments:-

1. Trade receivables

2. Cash and cash Equivalent

3. Loans

4. Borrowings

5. Trade payables

6. Capital creditors

7. Other payables

Note No. 4 : Financial risk management

The company’s few portion of activities are exposed to variety of financial risks i.e. market risk, credit risk and liquidity risk. The company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily trade receivables from customers other than government entities .These Trade receivables are typically unsecured and are derived from revenue earned from domestic and foreign customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the company uses expected credit loss model to assess impairment loss or gain. the company uses a matrix to compute the expected credit loss allowance for trade receivable .

Credit risk management

Credit risk is managed on instrument basis. For Banks and financial institutions ,only high rated banks /institutions are accepted. For other financial instruments, the company assesses and maintains an internal credit rating system. The finance function consists of a separate team who assess and maintain internal credit rating system.

(B) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, the company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in accordance with practice and limits set by the company. These limits vary by locations to take into account the liquidity of the market in which the entity operates. In addition, the company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

Note No. 5: Capital management

(a) Risk management

The company’s objectives when managing capital are to;

- safeguard their ability to continue as a going concern, so that they 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 on capital to shareholders or issue new shares. The company monitors capital using gearing ratio, which is net debt divided by total Equity. Net debt comprises of long term and short term borrowings less cash and bank balances. Equity includes equity share capital and reserves that are managed as capital. The gearing at the end of reporting period was as follows:

Note -6

Segment Reporting As per Ind AS 108 “Operating Segments

Based on the policy set out under Significant Accounting Policy , the company follows “management Approach “ for the purpose of deciding operating segments. The operating results of each major project locations are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to that location and assess its performance. Accordingly , the company has decided not to treat each project location as its operating segments considering huge number of project locations and its permanency .

Note-7

Additional Disclosures As per Ind AS 108 “Operating Segments

(i) Revenue From Customers Exceeding 10% of Total revenue

As per Para 34 of Ind AS 108 ,if revenues from transactions with a single external customer amount to 10 per cent or more of an entity’s revenues, the company is required to disclose that fact, the total amount of revenues from each such customer, and the identity of the segment or segments reporting the revenues. The details of such disclosure is as below :

(ii) Extent of Reliance on Major Customers

Extent of Reliance on Major Customers of the company can be depicted by assessing their sales chunck compared to total revenue of the operation. The percentage of group of major customer to its total revenue is as below :

.NOTE - 8

Recognition of Corporate Guarantee as Financial Liability

Financial guarantee is a contractual right of the lender to receive cash from the guarantor, and a corresponding contractual obligation of the guarantor to pay the lender, if the borrower defaults. The contractual right and obligation exist because of a past transaction or event (assumption of the guarantee), even though the lender’s ability to exercise its right and the requirement for the guarantor to perform under its obligation are both contingent on a future act of default by the borrower. A contingent right and obligation meet the definition of a financial asset and a financial liability, even though such assets and liabilities are not always recognized in the financial statements. Based on the measurement principles laid down under Ind AS 109 “Financial Instrument :Recognition and Measurement, the fair value of all those financial guarantee contracts reasonable below to the materiality threshold limit set by the company. Accordingly the entity has made appropriate disclosure in Note 43 without additionally recognizing any financial assets or liability.

NOTE - 9

Micro, Small and Medium Enterprises (MSME) Dues Disclosure

There are no Micro and Small enterprises to whom the Company owes dues which are outstanding for a period of more than 45 days as at the balance sheet date. The above information and that given under Current liabilities regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 10-First Time adoption of Ind AS

The accounting policy set out in Note 2 have been applied in preparing the financial statements for the year ended 31^st March 2018,the comparative information presented in these financial statements for the year ended 31^st March 2017 and in the preparation of an opening Ind AS Balance sheet at 1^st April 2016( transition date ).In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards ) Rules,2006 (as amended) and other relevant provisions of the Act (Previous GAAP).An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemption Availed

1. Deemed Cost for Property, Plants & Equipments

Ind As 101 permits a first time adopter to elect to continue with the carrying value for all of its Property , Plant & Equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition . Accordingly the company has elected to measure all of its Property, Plant & Equipment, Intangible assets at their previous GAAP carrying value.

2. Designation of previously recognized financial instruments.

Ind AS 101 allows an entity to designate investments in equity instruments at FVTOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The company has elected to apply this exemption for its investment in equity investments.

3. Deemed Cost For Investment In Joint Ventures

Ind As 101 allows a first time adopter to measure the investments in joint ventures one of the following amounts in its standalone opening Ind As Balance Sheet

i) Cost determined in accordance with Ind As 27

ii) Deemed Cost

Deemed Cost of such an investment shall be either of fair value at the date of transition or previous GAAP carrying amount at that date. The company has opted previous GAAP carrying amount as deemed cost of Investments In Joint Ventures at transition date.”

B. Mandatory Exceptions

1. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies). Ind AS estimates as at 1st April,2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVTPL or FVOCI; and

- Impairment loss/gain on Financial assets”

2. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

3. De-recognition of financial assets and liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

C. Transition to Ind AS -Reconciliation

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

I) Reconciliation of Balance sheet as at April 1,2016 and March 31, 2017

II) Reconciliation of Statement of Profit and Loss for the year ended March 31, 2017

III) Reconciliation of Equity as at April 1,2016 and March 31, 2017

The presentation requirements under Previous GAAP differs from Ind AS and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.”

Notes to first time adoption

1. Property, Plant and Equipment :

a) As per paragraph six of Ind AS 105” Non-Current Assets Held for sale and Discontinued Operations “ An entity shall classify a non current asset as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. Accordingly the company has classified an amount of Rs. 107 Lakhs as on transition date and Rs.2 Lacs as on comparative date as Asset held for Disposal.

b) As per paragraph eight of Ind AS 16 “Property, Plant and Equipment” Stores & Spares, which meet the definition of Property, Plant and Equipment shall be recognised as Property,Plant and Equipment else will be recognised as Inventories in accordance with Ind AS 2 “Inventories” Accordingly the company has recognised an amount of Rs.8 Lakhs as on transition date and Rs.5 Lacs as on comparative date as Asset held for Disposal.

Considering above two adjustments the net Ind AS impact on “Property, Plant and Equipment” Rs.99 lakhs(107 lakhs-8 lakhs) as on transition date and Rs.5 lakhs in comparative period.”

2. Deferred Taxes

Under previous GAAP, deferred taxes were recognised based on Profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS 12 “Income Taxes “ deferred tax is recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base. Consequently the impact is as below :-

# As on Transition date i.e. 1^st April 2016 :: Rs.418Lakhs of deferred tax assets additional

# As on Comparative date i.e. 31^st Mar 2017 :: Rs. 336Lakhs of deferred tax assets additional”

3. Impairement of Trade receivables

As per Ind AS 109 Financial Instrument “Recognition and Measurement “ the company is required to apply expected credit loss model for recognising the impairment loss on trade receivables. Accordingly, the company has created additional allowances for impairment loss (exclusive of fully credit impaired receivables) to the tune of following amounts :-

#As on Transition date i.e. 1^st April 2016 :: Rs.264Lakhs

# As on Comparative date i.e. 31^st Mar 2017 :: Rs. 328 Lakhs reversal”

4. Reclassification and Regrouping

As per Ind AS 101 “First-time Adoption of Indian Accounting Standards “reclassify items that it recognised in accordance with previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity in accordance with Ind AS. Accordingly the company has reclassified certain items based on its nature.

5. Preference Share Capital

As per paragraph Nineteen of Ind AS 32 “Financial Instruments: Presentation” if an entity doesn’t have an unconditional right to avoid delivering cash or another financial asset to settle a contractual obligation, the obligation meets the definition of a financial liability.

Accordingly the company has recognised Preferential Capital issued in accordance with CDR scheme as Financial Liability under Non-Current Borrowings.”

6. Discounting of Deffered Consideration

Deferred consideration in the nature of retention money, security deposits or withhold money should be discounted in order to arrive at the fair value of the consideration receivable from the contract in accordance with para 12 of IndAS 11, Construction contracts. Accordingly revenue has been reduced to the extent of Rs.231 lakhs in comparative period.

7. Profit Elimination in Investment in Joint Ventures

In accordance with paragraph 10 of Ind AS 27 “Separate Financial Statements” the entity has accounted investment in Joint Venture at cost in its separate financial statement. Accordingly , there is remeasurement of value of investment in joint venture to the tune of Rs.52 lakhs in comparative period.

8. Other comprehensive income

Under Ind AS , all items of income and expenses recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognised in profit and loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP

9. Other Equity

Other Equity has been adjusted consequent to the above Ind AS transition adjustments.

Note - 11

Figures for the previous year have been re-arranged and re-grouped wherever necessary.

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Mar 31, 2016

i. 1,00,000 equity shares out of issued, subscribed and paid up equity share capital were issued for consideration other than cash in the financial year 2007-08 as against transfer of a plot of land in favour of the company.

ii. No buyback or bonus issue of shares has been made during last five year

b. Terms/right attached to equity shares

The company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

c. Terms/right attached to Preference shares

The preference shares issued to the promoters are in accordance with the terms and conditions of the CDR package and do not carry any right of voting & dividend. These shares are neither transferable nor eligible for listing.

a. Rupee loan from bank carries interest @10% to 10.5% p.a. The loans are repayable in quarterly instalments from 01.10.2013. The above loans are secured by way of mortgage of land and building, assets aquired out of such loan and also backed by personal guarantee of Promoters.

b. Rupee loan from NBFCs Carries interest @9% to 12% p.a and are repayable in monthly instalments. The above loans are secured by way of mortgage on assets aquired out of such loan. The Loans are repayable over 3 to 5 years.

c. Term Loan (TL) under CDR and governed by Master Restructuring Agreement (MRA) dated 6th September 2012, with State Bank of India, Punjab National Bank, ICICI Bank Ltd., IDBI Bank Ltd., State Bank of Bikaner & Jaipur & Bank of India. The amount repayable is over a period from FY 2016-17 to 2020-21.

d. This loan is secured by equitable mortgage of immovable property of the Company and promoters, pari-passu charge on plant & machinery of the company (excluding land & office flat & equipments on which other lenders are having first charge) and irrevocable and unconditional personal guarantees of the Directors and pledge of shares held by promoters in the Company.

e. Interest rate for all term loan are subject to periodic review.

f. Continuing installment repayment over dues to banks is Rs. 369.15 Crores.

Notes:

1. *Total Claimed Receivable amounting to Rs.4430.32 Crores is under dispute / arbitration. Same are subject to the outcome of arbitration and /or Reconciliation proceedings arising out of various contractual obligations. The element of realizable profit and actual expenditure incurred has been considered and amount of Rs.1032.34 Crores is accounted based on reasonable certainty of realization of the same and are considered good and realizable by the Management.

2 Segment Reporting

The Company’s operations predominantly consist of Civil Construction activities. Hence, there are no reportable segments under Accounting Standard - 17 ‘Segment Reporting’ issued by the Institute of Chartered Accountants of India. During the year under report, substantial part of the Company’s business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary.

3 Gratuity and other post-employment benefit plans

Gratuity for employees is covered under a scheme of SBI Life Insurance and contribution in respect of such scheme are recognized in the profit and loss account.

Leave encashment provision has not been made as the same is accounted as and when it is paid Insurance company has provided detail working of actuarial valuation has required for disclosure in terms of AS-15 (R ) Employee’s benefits is as follows:

4 Interest in a joint venture

The company discloses its investment in joint ventures at cost and recognizes its share of profit/(loss) in the profit and loss account.

The details of profit sharing ratio, investment as on 31.03.2016 and share of profit/(loss) in joint ventures are given below:

5 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under Micro, Small and Medium Enterprises Development Act 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

6 Company is making provision against performance Bank Guarantees invoked over the average litigation period of five year starting from the year of bank guarantee invoked to the extent of 35% in case of dispute pending before Arbitration Tribunal or High Court and 100% in other case. Accordingly the provision of Rs.26.21 Crores has been made against Bank Guarantees Invoked and disputed of Rs.81.87 Crores.

7 The Inventory of Raw Materials, Work in Progress and finished goods have been visually estimated by each site in charge and value estimated by them for the same has been considered in the accounts..

8 During the year, some categories of fixed assets have been physically verified due to manpower constraint and widely spread out location of such assets besides a number of sites becoming non-active..

9 Conract wise surplus/deficit has not been prepared as the number and complexity of the contracts are very high.

10 The Company has claimed deduction under Section 80-IA (4) of the income Tax Act, 1961 in its returns of income relating to assessment year 2006-07 to 2012-13. However, the Department contested the same on the grounds that the Company was not “developing” the infrastructure facility and disallowed the deduction for assessment years 2006-07 to 2011-12. The Company had filled appeal against the said order before the Hon’able CIT(Appeal) which were allowed. The department has filed second appeal before Hon’able Cuttack Bench of Income Tax Appellate Tribunal for these assessment years , which is currently pending.

11 The figures for the previous year are regrouped / reclassified wherever necessary to make them comparable with that of Current Year.

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Mar 31, 2015

1. Corporate Information

ARSS Infrastructure Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act 1956 read with Companies Act, 2013. Its shares are listed on two stock exchanges in India, namely BSE and NSE. The Company is engaged in execution of contracts of various infrastructure projects including road work, bridge work, railway tracking and irrigation projects.

2. Basis of Preparation

The financial statements are prepared on an accrual basis and under the historical cost convention in accordance with generally accepted accounting principles in India [Indian GAAP]. The Company has prepared these financial statements to comply in all material respects with the accounting standards issued by the Institute of Chartered Accountants of India, as applicable and prescribed under Section 133 of the Companies Act, 2013 ('Act' ) read with Rule 7 of the Companies (Accounts) Rules,2014, the provisions of the Act (to the extent notified).

Except otherwise mentioned the accounting policies adopted in the preparation of financial statements are consistent with those of previous year. Also due to the peculiar nature of the business and uncertainties in the segment in which the company is operating, various issues have evolved requiring interpretation and clarifications. The Company is making substantial effort on an ongoing basis to improve reporting and disclosure in financial statement wherever required to comply with relevant law, rules and regulations.

3. Share Capital

a. Terms/right attached to equity shares

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. The company declares and pays dividends in Indian Rupees.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive 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.

Directors has not proposed any dividend for the year 2014-15 due to CDR constraint.

b. Terms/right attached to Preference shares

The preference shares issued to the promoters are in accordance with the terms and conditions of the CDR package and do not carry any right of voting & dividend. These shares are neither transferable nor eligible for listing.

4. Segment Reporting

The Company's operations predominantly consist of Civil Construction activities. Hence, there are no reportable segments under Accounting Standard - 17 'Segment Reporting ' issued by the Institute of Chartered Accountants of India. During the year under report, substantial part of the Company's business has been carried out in India. The conditions prevailing in India being uniform, no separate gerographical disclosures are considered necessary.

5. Gratuity and other post-employment benefit plans

Gratuity for employees is covered under a scheme of SBI Life Insurance and contribution in respect of such scheme are recognised in the profit and loss account. Leave encashment provision has not been made for the year 2014-15 as same is accounted as and when it is paid.

6. Interest in a joint venture

The company discloses its investment in joint ventures at cost and recognises its share of profit/(loss) in the profit and loss account. The details of profit sharing ratio, investment as on 31.03.2015 and share of profit/(loss) in joint ventures are given below:

7. Related party disclosures

The following table provides the total amount of transactions that have been entered into with related parties for the relevant financial year:

8. Contingent liabilities

Name of the Statute to which the liability relates

a) Orissa Sales Tax Act 117.19

b) Orissa Entry Tax Act 34.44

c) Central Sales Tax Act 791.10

d) Orissa Electricity Act 4722

e) Corporate Guarantees to sister concerns of the Company

i) ARSS Damoh-Hirapur Toll Pvt Ltd. 8,700.00

ii) Anil Contractors (P) Ltd 280.00

f) Income Tax Act

i) ITAT 5,469.84

ii) TDS (Appeal) 13.29

g) Bank Guarantee outstanding 27,483.38

Total 42,936.46

9. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under micro, small and medium enterprises Development Act 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

10. No provision has been made against invoking Performance Bank Guarantee by principals amounting to Rs. 82.83 Crores and disputed by the Company.

11. The Inventory of Raw Materials, Work in Progress and finished goods have been visually estimated by each site in charge and value estimated by them for the same has been considered in the accounts.

12. During the year, only some categories of fixed assets have been physically verified due to manpower constraint and widely spread out location of such assets besides a number of sites becoming non-active.

13.Contact wise surplus/deficit has not been prepared as the number and complexity of the contracts are very high.

14. Interest on inter corporate deposits has not been charged as the same are under dispute and pending at different forums.

15. The Company has claimed deduction under Section 80-IA (4) of the income Tax Act, 1961 in its returns of income relating to assessment year 2006-07 to 2012-13. However, the Department contested the same on the grounds that the Company was not "developing" the infrastructure facility and disallowed the deduction for assessment years 2006-07 to 2011-12. The Company had filed appeal against the said order before the Hon'able CIT(Appeal) which were allowed. The department has filed second appeal before Hon'able Cuttack Bench of Income Tax Appellate Tribunal for these assessment years, which is currently pending.

16. The figures for the previous year are regrouped / reclassified wherever necessary to make them comparable with that of Current Year.

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Mar 31, 2014

1. Corporate Information

ARSS Infrastructure Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in execution of contracts of various infrastructure projects including road work, bridge work, railway tracking and irrigation projects.

2. Basis of Preparation

The financial statements are prepared on an accrual basis and under the historical cost convention in accordance with generally accepted accounting principles in India [Indian GAAP]. The Company has prepared these financial statements to comply in all material respects with the accounting standards issued by the Institute of Chartered Accountants of India, as applicable and notifed under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financials statements are consistent with those of previous year.

3 Segment Reporting

The Company''s operations predominantly consist of Civil Construction activities. Hence, there are no reportable segments under Accounting Standard - 17 ''Segment Reporting '' issued by the Institute of Chartered Accountants of India. During the year under report, substantial part of the Company''s business has been carried out in India. The conditions prevailing in India being uniform, no separate gerographical disclosures are considered necessary.

4 Gratuity and other post-employment benefit plans

Gratuity for employees is covered under a scheme of SBI Life Insurance and contribution in respect of such scheme are recognised in the Profit and loss account.

5 Contingent liabilties

Name of the Statute to which the liability relates Amount (Rs. in Lacs)

a) Orissa sales Tax Act 106.29

b) Orissa Entry Tax Act 34.44

c) Central Sales Tax Act 892.60

d) Orissa Electricity Act 47.22

e) Corporate Guarentees to sister concerns of the Company

i) ARSS Damoh-Hirapur Toll Pvt Ltd. 8,700.00

ii) Anil Contractors (P) Ltd 280.00

f) Income Tax Act

i) ITAT 5,469.84

ii) TDS (Appeal) 13.29

g) Bank Guarentee outstanding 30,804.00

Total 46,347.68

6 Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under micro, small and medium enterprises Development Act 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

7 No provision has been made against invoking Performance Bank Guarrantee by principals ammounting to Rs. 89.83 Crores and disputed by the Company.

8 The Inventory of Raw Materials, Work in Progress and fnished goods have been visually estimated by each site in charge and value estimated by them for the same has been considered in the accounts.

9 During the year, only some categories of fixed assets have been physically verifed due to manpower constraint and widely spread out location of such assets besides a number of sites becoming non-active.

10 Interest on delayed payment of statutory dues has not been provided in the accounts

11 Conract wise surplus/defcit has not been prepared as the number and complexity of the contracts are very high.

12 Diluted earning per share has not been computed due to uncertainty over number of potential equity shares after conversion of the CCPS.

13 Interest on inter corporate deposits has not been charged as the same are under dispute and pending at different forums.

14 The Company has claimed deduction under Section 80-IA (4) of the income Tax Act, 1961 in its returns of income relating to assessment year 2006-07 to 2012-13. However, the Department contested the same on the grounds that the Company was not "developing" the infrastructure facility and disallowed the deduction for assessment years 2006-07 to 2011-12. The Company had flled appeal against the said order before the Hon''able CIT(Appeal) which were allowed. The department has fled second appeal before Hon''able Cuttack Bench of Income Tax Appellate Tribunal for these assessment years , which is currently pending.

15 The Cost of leasehold land has not been amortised.

16. The figures for the the previous year are regrouped / reclassified wherever necessary to make them comparable with that of Current Year.

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Mar 31, 2013

1. Corporate Information

ARSS Infrastructure Projects Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in execution of contracts of various infrastructure projects including road work, bridge work, railway tracking and irrigation projects.

2. Basis of Preparation

The fnancial statements are prepared on an accrual basis and under the historical cost convention in accordance with generally accepted accounting principles in India [Indian GAAP]. The Company has prepared these fnancial statements to comply in all material respects with the accounting standards issued by the Institute of Chartered Accountants of India, as applicable and notifed under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of fnancials statements are consistent with those of previous year.

3. Gratuity and other post-employment beneft plans

Gratuity for employees is covered under a scheme of SBI Life Insurance and contribution in respect of such scheme are recognised in the proft and loss account.The liability as at the balance sheet date is provided for based on the acturial valuation,at the balance sheet date,carried out by an independent actuary.

4. Interest in a joint venture

The company discloses its investment in joint ventures at cost and recognises its share of proft/(loss) in the proft and loss account. The details of proft sharing ratio, investment as on 31.03.2013 and share of proft/(loss) in joint ventures are given below

5. Contingent liabilties

Name of the Statute to which the liability relates Amount

(Rs. in Lacs)

a) Orissa sales Tax Act 106.29

b) Orissa Entry Tax Act 34.44

c) Central Sales Tax Act 791.10

d) Orissa Electricity Act 47.22

e) Corporate Guarentees to sister concerns of the Company

i) ARSS Damoh-Hirapur Toll Pvt Ltd. 8,700.00

ii) Anil Contractors (P) Ltd 600.00

f) Income Tax Act

i) CIT(Appeal) 5,469.84

g) Bank Guarentee outstanding 41,916.69

Total 57,665.58

6. Details of dues to micro and small enterprises as defned under the MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under micro, small and medium enterprises Development Act 2006 and hence disclosure if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

7 Revenue includes Rs.. 211.83 Crores against bills raised on account of various supplies/services provided including claims in line with similar billing/ claims made by the JVs on the contractees.

8 No provision has been made against invoking Performance Bank Guarrantee by principals ammounting to Rs.. 59.40 Crores and disputed by the Company.

9 The Inventory of Raw Materials, Work in Progress and fnished goods have been visually estimated by each site in charge and value estimated by them for the same has been considered in the accounts.

10 During the year, only some categories of fxed assets have been physically verifed due to manpower constraint and widely spread out location of such assets besides a number of sites becoming non-active.

11 The fgures for the the previous year are regrouped / reclassifed wherever necessary to make them comparable with that of Current Year

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Mar 31, 2012

1. Corporate Information

ARSS Infrastructure Projects Limited (the Company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The Company is engaged in execution of contracts of various infrastructure projects including road work, bridge work, railway tracking and irrigation projects.

2. Basis of Preparation

The financial statements are prepared on an accrual basis and under the historical cost convention in accordance with generally accepted accounting principles in India [Indian GAAP]. The Company has prepared these financial statements to comply in all material respects with the accounting standards issued by the Institute of Chartered Accountants of India, as applicable and notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financials statements are consistent with those of previous year,

a) Terms/right attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in India Rupees.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive 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.

a) Rupee loan from banks carries interest rate of 10% to 14.25% p.a. The loans are repayable in 12 to 20 quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by way of mortgage on land and building and assets acquired out of such loan. The term loans which is part of loan from banks are also backed by personal guarantee of promoters.

b) Term loan from NBFCs carries interest @ 9% to 16% p.a.and are repayable in 36 to 60 monthly equal instalments. The above loans are secured by way of mortgage on assets acquired out of such loan.

Cash credit from banks is secured against hypothecation of stock and book debts and are backed personal guarantee of promoters. The interest on C.C. Loan varies from 10.5% to 14.75% p.a. Inter corporate deposit and loan from NSIC carries interest @ 9% and 13.40% respectively. All the above loans are repayable on demands.

3. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

Gratuity for employees is covered under a scheme of SBI Life Insurance and contribution in respect of such scheme are recognised in the profit and loss account. The liability as at the balance sheet date is provided for based on the actuarial valuation, at the balance sheet date, carried out by an independent actuary.

4. CONTINGENT LIABILITIES Amount (Rs. In Lacs)

Name of the Statute to which the Liability Relates

a) Orissa Sales Tax Act 117.19

b) Orissa Entry Tax Act 34.44

c) Central Sales Tax Act 791.10

d) Orissa Electricity Act 47.22

e) Andhra Pradesh VAT Act. 28.63

f) Corporate Guarantees to Sister Concerns of the Company

i) ARSS Damoh-Hirapur Tolls Pvt. Ltd. 8,700.00

ii) Anil Contractor Pvt. Ltd. 600.00

g) Income Tax Act

i) CIT (Appeal) 151.07

h) Bank guarantee Outstanding 53,391.08

Total 63,860.73

5. Details of dues to micro and small enterprises as defined under the MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amount unpaid as at the year end together with interest paid/payable as required under the said act have not been given.

6. Revenue includes Rs. 230.80 crores against bills raised on account of various supplies/services provided in earlier quarters including claims in line with similar billing/claims made by the JVs on the contractees.

7. Fixed Assets worth Gross Value of Rs. 42.13 crores were sold to Srei Equipment Finance Pvt. Ltd. during the year, the sales consideration of which was adjusted against overdue amount of loan availed from the above company. The said transaction has resulted in a loss of Rs. 1.56 Croes.

8. No provision has been made against invoking performance Bank Guarantees by principals amounting to Rs. 29.17 crores and disputed by the Company.

9. As at the Balance Sheet date, interest and principal amounting to Rs. 249.29 crores due to the financial institution and banks, have not been paid by the Company. Accordingly, the loan accounts with State Bank of India and State Bank of Bikaner and Jaipur have been declared as No performing Assets.

10. Other expenses includes operating expenses amounting to Rs. 590.94 crores ( P.Y. Rs. 975.20 crores) due to regrouping in line with revised Schedule - VI. Accordingly, for the year ended 31st March 2011 the net of materials consumed and changes in inventories has become negative.

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Mar 31, 2011

1. Materials are purchased indigenously.

2. The company operates only in one segment, i.e. Civil Construction. Hence the company has no segment as defined in Accounting Standard -17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

3. Details of contingent liabilities not provided for in books of accounts

(Rs. in lacs)

Name of the statute to which the liability relates Amount

a) Orissa Sales Tax Act 106.29

b) Orissa Entry Tax Act 34.44

c) Central Sales Tax Act 791.10

d) Orissa Electricity Act 47.22

e) Corporate Guarantees to sister concerns of the Company:

i) ARSS Biofuel (P) Ltd. 260.00

ii) Anil Contractors (P) Ltd 600.00

f) Income Tax Act

i) CIT (Appeal) 151.07

g) Performance Bank Guarantee 62,022.96

Total 64,013.08

4. Sundry debtors exceeding six months include Rs. 350.67 lacs due from joint ventures in which the company is a partner. As the recoverability of such sundry debtors is dependant on the release of security deposit and withheld amount, the company treats the debtors as good and has not made any provision against the same.

5. As per the intimation available with the Company, there are no Micro, Small and Medium Enterpirses, as defined in the Micro, Small, and Medium Enterprises Development Act, 2006, to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

6. Since the Company carries on the business of Construction, being a service industry the quantitative information as required under para 3 of part II of Schedule – VI is not being furnished.

7. A search and seizure operation was conducted by the Income Tax Authorities in the premises of the Company on 6th October,2010. During the course of search some documents of the Company were seized. Accounts have been prepared based on certified photocopies of such seized documents.

8. Paisa has been rounded off to nearest rupee

9. Previous year figures have been rearranged and regrouped wherever considered necessary. As per our separate report of even date

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Mar 31, 2009

1. Materials are purchased indigenously.

2. The company operates only in one segment, i.e. Civil Construction. Hence the company has no segment as defined in Accounting Standard -17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

3. During the year 2007-08, the company has issued 1,00,000 shares of Rs.10 each with a premium Rs.20 each other than cash to partners of M/S ARSS Engineering & Technology a partnership firm where in a director of the Company was a partner in consideration of a plot of land on which the corporate office of the Company has been constructed.

4. Provision of Rs. 14.00 lacs on account of retirement gratuity has been made on adhoc basis pending actuarial valuation.

5. The company has not received any intimation from suppliers regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amount unpaid as at the year end together with interest paid/payable as required under the said act have not been given.

6. Since the Company carries on the business of Construction, being a service industry the quantitative information as required under para 3 of part II of Schedule - VI is not being furnished.

7. Previous year figures have been rearranged and regrouped wherever considered necessary.

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Mar 31, 2008

1. Materials are purchased indigenously.

2. The company operates only in one segment, i.e. Civil Construction. Hence the company has no segment as defined in Accounting Standard -17 on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

3. The company during the year has issued 1,00,000 shares of Rs.10 each with a premium Rs.20 each to partners of M/S ARSS Engineering & Technology a partnership firm where in a director of the Company was a partner in consideration of a plot of land on which the corporate office of the Company has been constructed.

4. Provision of Rs. 6.13 lacs on account of retirement gratuity has been made on adhoc basis.

5. No amount is due to any small scale industrial undertaking under sundry creditors. (Previous year - Nil).

6. Since the Company carries on the business of Construction, being a service industry the quantitative information as required under para 3 of part II of Schedule - VI is not being furnished.

7. Previous period figures have been rearranged and regrouped wherever considered necessary.

8. Paise has been converted to nearest rupee.

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Mar 31, 2007

1. Contingent Liabilities Not Provided for

(Rs. In lacs)

Sl. Nature of Liability As at 31st As at 31st No. March,2007 March,2006

1. Sales Tax demand 96.57 51.93

2. Income Tax demand 0.00 177.26

3. Bank Guarantee 848.12 769.95

4. Electricity Charges 27.23 6.93

2. Materials are purchased indigenously

3. The company operates only in one segment, i.e. Civil Construction. Hence the company has no segment as defined in Accounting Standard-17 on “Segment Reporting” issued by the Institute of Chartered Accountants of India.

4. Profit from JVs., income from interest and hire charges etc. not being material have been included under contract revenue.

5. The company has sub divided 3,45,035 equity shares of Rs.100 to 34,50,350 equity shares of Rs.10 each during the year.

6. No employee of the company has completed 5 years of service and hence no liability has accrued on account of retirement benefit in respect of gratuity payable as per Accounting Standard - 15, “Accounting for Retirement Benefits.”

7. No amount is due to any small scale industrial undertaking under sundry creditors. (Previous year - Nil).

8. Since the Company carries on the business of Construction, being a service industry the quantitative information as required under para 3 of part II of Schedule - VI is not being furnished.

9. Previous year figures have been rearranged and regrouped wherever considered necessary.

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Mar 31, 2006

1) The Company had up to the year ended 31st March 2005, provided depreciation on fixed assets on Written down Value basis at the rates prescribed in Schedule XIV of the Companies Act 1956. For the year ended 31st March 2006 depreciation has been provided under Straight Line Method. Accordingly the depreciation has been recomputed and adjusted based on the rates of depreciation for earlier years. As a result, revised depreciation rate has been adopted as prescribed under schedule XIV of the Companies Act 1956 and the differential amount of depreciation has been adjusted for the years ended 31st March 2005, 2004,2003,2002 and 2001. The depreciation pertaining to the prior years has been adjusted in the brought forward balance of Profit & Loss Account for the year ended 31st March 2006.

2. Contingent liabilities not provided for :

a) Rs. 51,93,150/- (P.Y Rs. 51,93,150) towards sales tax demand against which appeals are pending with appropriate authorities.

b) Demand of Rs. 6,93,736/- (P.Y Rs. 6,93,736) made towards electricity charges against which stay has been granted by the Honble High Court, Orissa.

c) Bank Guarantees issued for Rs. 7,69,95,187/- (P.Y Rs. 6,22,07,023) towards security deposits and mobilization advances.

d) Rs. 1,43,44,998/- towards Income Tax demand against which the appeal is pending before CIT[A]-II, Bhubaneswar.

6. Segment Reporting

The company operates only in one segment i.e. construction industry. Hence the Company has no segment as defined in Accounting Standard-17 issued by the Institute of Chartered Accountants of India.

8. Related party disclosure

Parties where control / significant influence exists

i) Associates

ARSS Biofuel (P) Ltd.

Anil Contractors Private Limited

M/s Anil Agarwal

M/s ARSS Engineering Technology

ii) Joint Ventures

a) Harishchandra-Arssspl J.V

b) Hcil-Kalindee-Arss J.V

c) Hcil-Arss-Triveni J.V

d) Hcil-Arss-Adikariya J.V.

II) Key management personnel and thier relatives Shri Rajesh Agarwal, Managing Director

Shri Sunil Agarwal, Whole Time Director

III) Relative of key management personnel with whom transactions were carried out during the year-Nil

IV) Subsidiary - Nil

9. Inventories and Work-in-Progress are taken, valued and certified by the management.

10. Fixed assets are physically verified by the Management.

11. Provision for taxes comprises of current tax Rs.95,92,602.00 (P.Y 50,55,086.00) Fringe Benefit Tax Rs. 2,31,225.00 (P.Y (Nil) Deferred tax Rs. 4,38,902.00 (P.Y 12,70,052.00) has been made as per the provisions of the Income Tax Act 1961.

12. Particulars of employees in respect of whom remuneration exceeding Rs. 1,00,000.00 per month is incurred : Nil (previous year : Nil)

13. The company has neither paid wealth tax nor filed wealth tax return for the financial year 2005-06.

14. The company ARSS Infrastructure Projects Limited has been given some contract work on subcontract basis by Harishchandra-ARSSPL-JV. The details of input credit, VAT dues and TDS claim vide TIN-21701102746 are given below :

i) Input tax credit (VAT) taken on purchase of materials by ARSS Infrastructure Projects Limited for Rs. 24,37,016.00 during the financial year has transferred to Harishchandra-ARSSPL-JV vide TIN - 21701102746 because of mutual agreements. (ii) VAT dues of Rs. 68,79,665.00 in favour of Harishchandra-ARSSPL-JV has been passed to ARSS Infrastructure Projects Limited because of mutual agreements. (iii) VAT (TDS) of Rs. 44,42,648.00 deducted from bills of Harishchandra- ARSSPL-JV has been passed to ARSS Infrastructure Projects Limited because of mutual agreements. (iv) The input VAT credit available in the name of ARSS Infrastructure Projects Limited has been claimed by Harishchandra-ARSSPL-JV in VAT return because of agreement for reimbursement or otherwise payment of VAT dues of Harishchandra-ARSSPL-JV by ARSS Infrastructure Projects Limited. Pending disposal of the matter by sales tax department Rs. 24,37,016.00 has been provided in the books of the company.

15. Disclosure of transactions between the company and related parties as defined under the Accounting standard-18 on related party disclosure issued by the Institute of Chartered Accounts of India and status of outstanding balance as on 31st March 2006.

(A) Expenses

Shri Rajesh Agarwal Rs. 6,00,000.00 Directors Remuneration

Rs. 7,56,000.00 Hire Charges

Shri Sunil Agarwal Rs. 6,00,000.00 Directors Remuneration

Rs. 6,15,000.00 Hire Charges Shri Sangita Agarwal Rs. 40,000.00 Directors Remuneration

16. Additional information pursuant to the provisions of paragraph 3, of part ii of schedule VI to the Companies Act 1956 is not required as the nature of business is work contract and there is no sales of product from crusher, they re used for in house consumption.

17. Additional information to paragraph 4c, 4d of part ii of schedule vi of Companies Act 1956. Information desired under paragraph 4c, 4d of part ii of schedule vi of the Companies Act 1956 are not applicable as it is not a manufacturing company and there are no items related to paragraph 4D.

18. The ODC charged by NBFC has not been considered by the Company, hence the outstanding against NBFC shown by the company do not tally with those of the NBFCs. Ownership of plant and machineries, vehicles purchased on hire purchase system from NBFCs have been considered in the name of the company, although the ownership is transferred only on repayment of dues in entirely.

19. No employee of the company has completed 5 years of service and hence no liability has accrued on account of retirement gratuity payable to employees as per requirements of AS-15.

20. Previous years figures have been regrouped and re-arranged where ever necessary so as to be comparable with those of this year.

21. Paisa have been converted to nearest rupee.

22. The company has opening & closing work in progress as below : Opening work in progress Rs. 58,429,517.00 Closing work in progress Rs. 69,724,520.00

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Mar 31, 2005

I. Depreciation is provided on WDV method at the rates specified in Schedule-XIV to the Companies Act1956. During the year Rs.1,48,77,767/- has been provided as depreciation assetwise details are given below :

Sl. No. Particulars Amount Rupees

a. Building 20,350

b. Plant & Machinery 14,594,960

c. Furniture & Fixtures 75,706

d. Vehicles 86,227

e. Computers 100,523

14,877,767

II. No employee of the Company has completed 5 years of service and hence no liability has accrued on account of retirement gratuity payble to employees as per requirements of AS-15.

III. Previous year figures have been regroupped and re-arranged where ever necessary so as to be comparable with those of this year.

IV. Paisa have been converted to nearest rupees.

V. The ODC charged by NBFC has not been considered by the company, hence the outstanding against NBFC shown by the company will not tallied with that of the NBFC.

VI. CONTINGENT LIABILITIES

The Company has following contigent liabilities.

a) Rs. 51,93,150/- towards Sales tax demand against which appeals are pending with various authorities.

b) Rs. 6,93,736/- towards electricity charges against which stay has been granted by the Honble High Court.

c) Rs. 622,07,023/- Bank Guarantees issued towards Security Deposits and Mobilisation Advance.

VII. Inventories are taken, valued and certified by the Management.

VIII Bills receivables / with-held, creditors, loans & advances and personal accounts are subject to confirmation.

IX Fixed assets are physically verified by the management.

X Provision for tax for Rs. 50,55,086.00 has been made as per the provisions of the Income Tax Act 1961.

XII Managerial Remunaration :

Managing Directors remunaration @ 22,000.00 per month is Rs. 2,64,000.00 as compare to previous year of Rs. 2,64,000.00

XIII Particulars of employees in respect of whom remunaration exceeding Rs. 1,00,000.00 per month is incurred : NIL (Previous Year)

XIX Segment information :

There is only one segment of the Company i.e. construction activity.

XX Related Party Disclosure :

(i) Associates

ARSS Biofuel (P) Ltd.

(ii) Key Management Personnel

Shri Rajesh Agarwal, Managing Director Smt. Sangita Agarwal, Director

(iii) Relative of key management personnel with whom transactions were carried out during the year - NIL

(iv) Subsidiary - NIL