Notes to Accounts of Artefact Projects Ltd.

Mar 31, 2024

1.14 Provisions, Contingent Liabilites and Contingent Assets

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

Provisons for legal claims, service warranties, volume discounts and returns are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

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 anyone item included in the same class of obligations.

Provisions are measured at the present value of management s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passgae of time is recognised as interest expense.

A contingent assets is disclosed and not recognised, where an inflow of economic benefits is probable.

1.15 Employee benefits

Short-term obligation

Liabilities for salaries, including non monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employee''s sendees upto the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled The liabilities are presented as current employee benefit obligations in the balance sheet.

Other long-term employee benefits obligations

The liabilities for earned leave are not expected to be settled wholly within 12 months after the end of the period in which the employees render the related sendee. They are therefore measured as the present value of expected future payments to be made in respect of services provided by employees up lo the end of the reporting period using the projected unit credit method. The benefits are discounted using the market yields at the end of the reporting period that have terms approximating to the terms of the related obligation. Reineasurements as a result of experience adjustments and changes in actuarial assumptions are recognised in profit or loss.

The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting period, regardless of when the actual settlement is expected to occur.

Post employment obligation

The Company operates the following post-employment schemes: defined benefit plan, i.c., gratuity, defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation denominated in INR is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets.

This cost is included in employee benefit expense in the statement of profit and loss. Remeasurement gains and losses arising front experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting front plan amendments or curtailments are recognised immediately in profit or loss as past service cost.

Defined contribution plans

The Company pays provident fund and employee state insurance contributions to government administered Employee Provident Fund Organisation and Employee State Insurance Corporation respectively. The Company has no further payment obligations onc e the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

1.16 Dividends

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

1.17 Earnings per share

Basic earnings 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. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account: the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of ail dilutive potential equity shares.

1.18 Inventories

Inventories represents the WIP in respect of Project Management Consultancy Services in progress and remained unbilled. Inventories have been valued at cost.

1.19 Accounting for Joint Venture Operations

The Financial Statements reflect the share of the Company''s assets and liabilities as well as income and expenditure of Joint Venture. Operations which are accounted for according to the participating interest of the company as per the various Joint Venture Agreements on a line by line basis along with similar items in the company''s financial statements.

1.20 Provision for current and deferred tax

Provision for current and deferred tax is made after taking into consideration benefits admissible under the Provision of Income Tax Act 1961. Deferred tax resulting from timing differences "between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is reasonable/virtual cer tainty that asset will be realized against future taxable profits.

Note 2 Critical Accounting Judgements, Estimates and Assumptions

The preparation of the financial statements requires management to exercise judgment and to make estimates and assumptions. These estimates and associated assumptions are based on historical experiences and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if the revision affect only that period, or in the period of the revision and future periods if the revision affects both current and future period.

The areas involving critical estimates or judgements arc as under:

a Estimation of current tax expenses and payable:

Taxes recognized in the financial statements reflect management''s best, estimate of the outcome based on the facts known at the balance sheet date. These facts include but are not limited to interpretation of tax laws of various jurisdictions where the Company operates. Any difference between the estimates and final tax assessments will impact the income tax as well the resulting assets and liabilities.

b Estimated fair value of unlisted securities:

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on the market conditions existing at the end of each reporting period.

c Useful lives of property, plant and equipment and Intangible assets:

Depreciation and amortization is based on management estimates of the future useful lives of the property, plant and equipment and intangible assets. Estimates may change due to technological developments, competition, changes in market conditions and other factors and may result in changes in the estimated useful life and in the depreciation and amortisation charges.

d Estimation of defined benefit obligation:

The liabilities of the company arising from employee benefit obligations and the related current service cost, are determined on an actuarial basis using various assumptions.

e Impairment of financial assets (including trade receivables):

Allowance for doubtful receivables represent the estimate of losses that could arise due to inability of the Customer to make payments when due These estimates are based on the customer ageing, customer category, specific credit circumstances and the historical experience of the group as well as forward looking estimates at the end of each reporting period.

f Estimation of Provisions and contingencies:

Provisions are liabilities of uncertain amount or timing recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable. Contingent liabilities are possible obligations that may arise from past event whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events which arc not fully within the control of the Company. The Company exercises judgement and estimates in recognizing the provisions and assessing the exposure to contingent liabilities relating to pending litigations. Judgement is ncccssaiy in assessing the likelihood of the success of the pending claim and to quantify the possible range of financial settlement. Due to this inherent uncertainty in the evaluation process, actual losses may be different from originally estimated provision.

5.01 The company has made investment of Rs. 12.00 Croces (excluding cumulative interest of Rs.3.40 Crores accrued thereon), in Unquoted fully compulsory convertible debentures as at repotting dale. The management docs not deem necessary to make any'' provision for impairment of expected Losses, if any, in accordance with lnd-As-109 "Financial Instruments*. Sucfi investments in mining companies are long term and strategic in nature, have large value of explored mining reserves and based on the expected cash Hows in the said companies , registered external valuers have.valued the shares of the said companies above par value and are considered good and fully recoverable. Hence no provision for impairment in value of Investment Is required

5.02 Regarding investment of Rs. 90.00 Lakhs standing in equity shares of unlisted company being erstwhile subsidiary company has not earned profit in previous year ending on 31/03/2023. However the company has positive net worth as per audited balance sheet for the year ending 31/3/2023 and (here h no diminution in the value of investment and hence no provision for impairment loss is required.

(ii) The Company''s share in the total value of the assets and liabilities as at Rs 31st March, 2024 is Rs. ‘47.30 Lakhs (Previous year 201.79 Lakhs) and Rs. 73.09 Lakhs (Previous Year R>. 73.11 Lakhs) respectively and in the income, expenditure and net profit / ( Loss) before tax for the year ended 31st March. 2024 of the above Joint Ventures amounts to Rs. 0.00 Lakhs (Previous Year Rs. 0.00 Lakhs). Rs. 0.13 Lakhs (Previous Year Rs. 0.23 Lakhs) and Rs. 0.13 Lakhs (Previous Year Loss Rs. 0.23 Lakhs) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled operations.

NOTE 36

The Company has not entered Into any derivative contracts arid accordingly there are no outstanding derivative contacts as on 31st March, 2024. The Company does not have any foreign currency exposure as on 31st March, 2024.

NOTE 37 Balances under sundry creditors, imprest accounts .sundry debtors .salary payable and loans and advances are subject to confirmation from the said parties.

NOTE 38 Previous Years figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year,

4s per ow Report ot e«en date For and on behalf of Board of Directors

Foe, NARESH PATAOIA & COMPANY

Chartered Accountant

Firm Reg No 10693CW

Sdi. SdA Sdf.

CA NARESH PATADIA SIDDMARTH P SHAH KAUSTU8H PRAKASH PAUNIKAR

Proprietor Director Director

ManbtflMp No. 035620 DIN: 05304116 I»t: C8621592

Date: 21MM024

Placo: Nagpur

UDIN : 2<03:C20BKQGZX4994

Srft. Sdf-

Rani Mahethwarl CHANDRASMEKAR BASESHANKAR

Currpany Secretary Chief financial Offlcei

Membership No. A54149

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Mar 31, 2017

NOTE 1

In the opinion of the management, Current Assets, Loans and Advances are of the valued stated, if realized in the ordinary course of business.

NOTE 2

SEGMENT REPORTING

The Company is predominantly in the business of providing "Project Management Consultancy Services" and, as such there are no separate reportable segments. The company''s operations are only in India.

NOTE 3

RELATED PARTY DISCLOSURES

A. List of Related parties:

(As certified by the Management)

I. Subsidiary

Artefact Infrastructure Limited (up to January 02nd, 2017)

II. Joint Ventures

Zaidun Leeng Sdn. Bhd. - Artefact Projects

Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.

Meinhardt Singapore Pte. Ltd. - Artefact Projects (Dissolution pending as on 31.03.2017)

III. Key Management Personnel (KMP) and their Relatives

Mr. Pankaj B Shah

Mr. Siddharth P Shah

Miss. Ankita M Shah

Mr. Manoj B Shah

Mr. Chetan B Shah

Mrs. Madhavi Manoj Shah

Mr. Anshul Manoj Shah

Mr. Sanjay M Khare - Chief Financial Officer

Miss. Shilpa A Bhargava - Company Secretary

IV. Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year:

(Other related parties)

a) Artefact Towers Association

b) Artefact Infrastructure Limited (w.e.f. January 2^nd, 2017)

c) Alpine Mining Infra LLP

(ii) The Company''s share in the total value of the assets and liabilities as at 31* March, 2017 is K 51,951,718 (Previous year K 55,408,060) and K 44,272,051 (Previous Year K 51,134,370) respectively and in the income, expenditure and net profit/ ( Loss) before tax for the year ended 31"^t March, 2017 of the above Joint Ventures amounts to K 14,022,228 (Previous Year K 22,329), K 13,839,193 (Previous Year K 1,030,907) and K 183,035 (Previous Year (K 1,008,578) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled operations.

NOTE 4

In accordance with Regulation 34(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 the details of advance given are as under:

a. To Artefact Infrastructure Limited (AIL), closing balance as on 31^st March, 2017 is K 90,891,699 (Previous year K 136,653,070). Maximum balance outstanding during the year was K 169,404,651 (Previous year K 137,193,645).

b. As per the Company’s policy loans to employees are not considered in ‘a’ above.

NOTE 5

Previous Year''s figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

NOTE 6

The Company has not entered into any derivative contracts and accordingly there are no outstanding derivative contracts as on 31^st March, 2017. The Company does not have any foreign currency exposure as on 31^st March, 2017.

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Mar 31, 2015

1. Rights to Equity Shareholders

The Company has only one class of equity share having face value of ' 10 per share. Each shareholder is eligible for one vote per share held . In the event of liquidation of the company , the equity shareholders will be entitled to receive any of 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 shareholder.

2. Term Loans from a Bank referred to above included in current maturity of long term debts in Note No.10 of Rs.60, 521,956 are Secured against Mortgage of Building and Hypothecation of other Fixed Assets, Equipments, Hardwares and Softwares. The Term loan -I, as mentioned in note 4.04, is repayable in 5 equal monthly installments of Rs. 2,368,174 (including interest) from 31st March, 2015 as per repayment schedule, ending on September 6, 2015 and carries interest @ 15.75% p.a. and Term Loan - II, as mentioned in note 4.04, carries interest @ 13.50% p.a is repayable on 30th April, 2015 as per terms of sanction.

3. The term loans from a bank are guaranteed by some of the Directors in their personal capacity and are also Guaranteed by a Company i.e. Vidharbha Holding Limited.

4. Vehicle Loans referred to above and Rs. 539,315 included in current maturity of long term debts in Note No.10 are secured against hypothecation of the specific vehicle financed. The vehicle loan of Rs. 235,079 is repayable in 7 equal monthly installments (including interest) from 31st March, 2015 of Rs.34,570 and vehicle loan of Rs. 1,349,278 is repayable in 46 equal monthly installments (including interest) from 31st March, 2015 of Rs. 35,430 as per repayment schedule.

5. Working Capital Loans from Banks to the extent of:

(i) Rs. 89,011,543 referred to above are secured by way of hypothecation of whole of the movable properties including Book debts and other assets both present and future, and are further secured collaterally by mortgage of immovable properties of the Company. This loans are guaranteed by some of the directors in their personal capacity and also by a Corporate Guarantee of a Company i.e. Vidharbha Holding Ltd.

(ii) Rs. 528,384 referred to above are secured by the Pledge of Fixed Deposit with Bank of Rs. 600,000.

6. The Company has not received information from Creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure as required under the said Act, relating to amounts unpaid as on 31st March, 2015 together with Interest paid / payable have not been given.

7. Presently the company is liable to pay MAT under section 115JB of the Income Tax Act,1961 (The Act) and the amount paid as MAT is allowed to be carried forward for being set off against the future tax liabilities computed in accordance with the provisions of the Act, other than section 115JB, in next ten years. Based on future projection of the performances, the company will be liable to pay the income tax computed as per provisions, other than under section 115 JB of the Act. Accordingly as advised in Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under the Income Tax Act, 1961" issued by the Institute of Chartered Accountants of India Rs. 1,789,654 (Previous Year Rs. 1,953,074) being the excess of tax payable u/s 115 JB of the Act over tax payable as per the provision other than section 115 JB of the Act has been considered as MAT credit entitlement and credited to the Statement of Profit and Loss. The aggregate MAT Credit Entitlement available to the Company as at 31st March, 2015 is Rs. 7,754,561 (Previous Year Rs. 5,964,908).

8. The amount outstanding for a period exceeding six months mainly includes amount receivable from government departments predominantly from NHAI, MMRDA, AAI etc and are in relation to execution of contract services, deployment of additional personnel, price escalations etc. The services have been provided on express written orders and procedural delays in respect of reconciliation of accounts & disbursement of funds at government departments are normal. Further, it includes Rs. 38,311,894 (Previous Year Rs.60,108,004) in respect of consultancy contracts for which the final bills are yet to be submitted and amount are receivable as per the running bills. Accordingly, Management is of the view that all these amount are good for recovery and no provision for doubtful debts is required.

9. In respect of Airport Authority of India (AAI), one of the clients of the company, the company's payment of invoice has been denied to an extent of Rs. 85.11 lacs citing unilateral deviation from contracted fees based on certain minutes of their internal meeting held prior to contract execution. The company had sought legal clarification and filed an appeal for arbitration. The arbitration proceedings have been concluded on 5th Feb, 2015, however the Arbitrator have to finalise the award and final award is awaited. The management is positive about recovery of debts along with interest & costs and do not expect any impact on the financial position of the Company.

10. Defined Benefit Plan

The employees Gratuity Fund Scheme of the Company is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

11. CONTINGENT LIBILITIES (To the extent not provided for)



Particulars Year Ended Year Ended March 31st, March 31st, 2015 2014

(Amount in Rs.) (Amount in Rs.)

(i) Guarantees given by the Company's 41,707,443 59,128,066 Bankers. (Bank guarantees are provided under contractual/legal obligation. No cash outflow is expected.)

(ii) Corporate Guarantee Given 105,000,000 105,000,000 (Given to a Bank against credit facility taken by wholly owned Subsidiary Company)

(iii) Disputed Income tax demand NIL 44,672,201 (The company appeal was decided in favor of the company and as on year end no disputed income tax demand is outstanding)

(iv) Third Party Claims 442,556 1,208,584 (Matters are pending before various forums. The Company doesn't expect any material impact on the financial position of the Company on account of pending litigation)

12. In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realised in the ordinary course of business.

13. SEGMENT REPORTING:

As per Accounting Standard (AS) 17 on "Segment Reporting" segment information has been provided under the notes to consolidated financial statements.

14. RELATED PARTY DISCLOSURES:

A. List of related parties :

(As certified by the Management)

I. Subsidiary Company

Artefact Infrastructure Ltd.

II. Step down Subsidiary

Alpine Mininginfra LLP

III. Associates

Rising Minerals & Metals LLP Glowide Infradevelopment LLP Artefact Inframining LLP

Valecha Badwani Sendhwa Tollways Limited (Upto 2nd February, 2015)

IV. Joint Ventures

Zaidun Leeng Sdn. Bhd.- Artefact Projects

Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.

Meinhardt Singapore Pte. Ltd. - Artefact Projects

V. Key Management Personnel and Their Relatives

Mr. Manoj B. Shah

Mr. Pankaj B. Shah

Mr. Siddharth P. Shah

Mr. Nilesh Jain - Chief Financial Officer

VI. Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year :

(Other related parties)

Artefact Towers Association

15. In accordance with clause 32 of Listing Agreement the details of advance is as under:

a. To Artefact Infrastructure Limited (AIL), a Subsidiary, closing balance as on March 31st, 2015 is ' 37,012,792 (Previous year Rs. NIL). Maximum balance outstanding during the year was Rs. 40,765,925 (Previous year Rs. 22,303,984).

b. AIL has not made investment in the shares of the Company

c. As per the Company's policy loans to employees are not considered in 'a' above.

16. Previous Year's figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

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Mar 31, 2014

1. SHARE CAPITAL

Rights to Equity Shareholders

The Company has only one class of equity share having face value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation of the company , the equity shareholders will be entitled to receive any of remaining assets of the company after distributiion of all preferential amounts . The distribution will be in proportion to the number of equity shares held by the shareholder.

2. LONG TERM BORROWINGS

2.1 Term Loans from a Bank referred to above and Rs.56,450,300 included in current maturity of long term debts in Note No.10 are Secured against Mortgage of Building and Hypothecation of other Fixed Assets, Equipments, Hardwares and Softwares. The Term loan -I, as mentioned in note 4.04, is repayable in 17 equal monthly installments (including interest) from 31st March, 2014 of Rs. 2,368,174 as per repayment schedule, ending on September 6, 2015 and carries interest @ 15.75% p.a. and Term Loan - II, as mentioned in note 4.04, carries interest @ 13.50% p.a is repayable in 5 equal monthly intallments of Rs 10,000,000 after the period of 9 months from 31st March,2014.

2.2 The above term loans from a bank are guaranteed by some of the Directors in their personal capacity and are also Guarantee by a Company i.e. Vidharbha Holding Limited.

2.3 Vehicle Loans referred to above and Rs. 651,143 included in current maturity of long term debts in Note No.10 are secured against hypothecation of the specific vehicle financed. The vehicle loan of Rs. 235,077/- is repayable in 18 equal monthly instalments (including interest) from 31st March , 2014 of Rs. 34,570 and vehicle loan of Rs. 1,348,830/- is repayable in 58 equal monthly instalments (including interest) from 31st March , 2014 of Rs. 35,430 as per repayment schedule.

3. SHORT TERM BORROWINGS

(i) Rs. 88,932,510/- referred to above are secured by way of hypothecation of whole of the movable properties Including Book Debts and Assets both present and future, and are further secured collaterally by mortgage of immovable properties of the Company, guaranteed by some of the directors in their personal capacity and also covered by a Corporate Guarantee of a Company i.e. Vidharbha Holding Ltd.

(ii) Rs. 542,131 /- referred to above are secured by the Pledge of Fixed Deposit with Bank of Rs. 600,000 /-.

4. TRADE PAYABLES

@ The Company has not received information from Creditors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure as required under the said Act, relating to amounts unpaid as on 31st March, 2014 together with Interest paid / payable have not been given.

5. OTHER CURRENT LIABILITIES

Does not include any amount due and outstanding to be credited to Investor Education & Protection Fund. ** Mainly includes Payable to Employees and Provision for Expenses etc.

6. NON CURRENT INVESTMENTS

6.01 Presently the company is liable to pay MAT under section 115JB of the Income Tax Act,1961 (The Act) and the amount paid as MAT is allowed to be carried forward for being set off against the future tax liabilities computed in accordance with the provisions of the Act, other than section 115JB,in next ten years. Based on future projection of the performances, the company will be liable to pay the income tax computed as per provisions, other than under section 115 JB of the Act. Accordingly as advised in Guidance Note on "Accounting for credit available in respect of Minimum Alternate Tax under the Income Tax Act,1961" issued by the Institute of Chartered Accountants of India Rs. 1,953,074/- being the excess of tax payable u/s 115 JB of the Act over tax payable as per the provision other than section 115 JB of the Act has been considered as MAT credit entitlement and credited to the Statement of Profit and Loss. The aggregate MAT Credit Entitlement available to the Company as on 31st March, 2014 is Rs. 5,964,908 (Previous Year Rs. 4,011,834).

7. TRADE RECEIVABLES

7.01 The amount outstanding for a period exceeding six months mainly includes amount receivable from government departments predominantly from NHAI, MMRDA, AAI etc and are in relation to execution of contract services, deployment of additional personnel, price escalations etc. The services have been provided on express written orders and procedural delays in respect of reconciliation of accounts & disbursement of funds at government deparments are normal. Accordingly, management is of the view that all these amount are good for recovery and no provision for doubtful debts is required.

7.2 The amount outstanding classified as for a period of more than 6 months includes Rs. 60,108,004/- (Previous Year Rs.48,364,667) in respect of consultancy contracts for which the final bills are yet to be submitted and are outstanding on running accounts as per the contract of consultancy.

7.3 In respect of Airport Authority of India (AAI), one of the client of the company, the company''s invoice has not been accepted to an extent of Rs. 85.11 lacs citing certain minutes of their internal meeting held prior to contract execution as reason for rejection. According to the Management of the company, all the invoices raised by them is as per the contract entered with AAI for Architectural Design for Trivandrum International Airport. AAI has some interpretation clarifications in the terms of contract which the company feels are totally unsustainable. Accordingly company has sought legal clarification and filed an appeal for arbitration. The management is of the view that the action of AAI is ultra-virus and devoid of any contractual logic as well as the executed contract and agreement ab initio. Accordingly the whole amount receivable from AAI is considered good for recovery.

8. Defined Benefit Plan

The employees Gratuity Fund Scheme of the Company is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to addtional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

9. CONTINGENT LIBILITIES (To the extent not provided for)

Particulars Year Ended Mar Year Ended March 31, 2014 31, 2013 (Amount in Rs.) (Amount in Rs.)

(i) Guarantees given by the 59,128,066 67,407,442 Company''s Bankers. (Bank guarantees are provided under contractual/legal obligation. No cash outflow is expected.)

(ii) Corporate Guarantee Given 105,000,000 105,000,000 (Given to Bank against credit facility taken by a Subsidiary company)

(iii) Disputed Income tax demand 44,672,201 44,672,201 (The company has filed an appeal and does not expect any cash outflow) (Amount deposited-Rs.2,000,877/- (Previous year-NIL))

(iv) Third Party Claims 1,208,584 1,695,100 (Matters are pending before various forums.No cash outflow is expected)

NOTE 10

In the opinion of the management, Current Assets, Loans and Advances are of the value stated, if realised in the ordinary course of business.

NOTE 11

SEGMENT REPORTING:

As per Accounting Standard (AS ) 17 on "Segment Reporting" segment information has been provided under the notes to consolidated financial statements

NOTE 12

RELATED PARTY DISCLOSURES:

A . List of related parties :

(As certified by the Company)

I. Subsidiary Company

Artefact Infrastructure Ltd.

II. Step down Subsidiary

Alpine Inframining LLP

III. Associates

Rising Minerals & Metals LLP

Glowide Infradevelopment LLP

Artefact Inframining LLP

Valecha Badwani Sendhwa Tollways Limited

IV. Joint Ventures

Zaidun Leeng Sdn. Bhd.- Artefact Projects

Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.

Meinhardt Singapore Pte. Ltd. - Artefact Projects

V. Key Management Personnel and Their Relatives

Mr. Manoj B. Shah - Managing Director

Mr. Pankaj B. Shah - Whole Time Director

Mr. Siddhardh P Shah - Whole Time Director ( w.e.f. 06.07.2013)

Mr. Nilesh Jain - Chief Financial Officer (w.e.f 13.08.2013)

Mr. Chetan B. Shah - Relative of Key Management Personnel

Mrs. Madhvi M Shah - Relative of Key Management Personnel

VI. Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year :

(Other related parties)

Artefact Towers

Association Koradi Minerals Private Limited

JOINT VENTURE ACCOUNTING:

The Company''s share in the total value of the assets and liabilities as at Rs 31.03.2014 is Rs. 98,371,772 (Previous year Rs.92,659,946) and Rs. 80,936,746 (Previous Year Rs.77,287,463) respectively and in the income, expenditure and net profit/( Loss) before tax for the year ended 31.03.2014 of the above Joint Ventures amounts to Rs. 53,749 (Previous Year Rs.5,681,625), Rs. 5,408,406 (Previous Year Rs.53,69,333) and Rs. (5,354,658) (Previous year Rs.312,293) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled operations.

NOTE 13

In accordance with clause 32 of Listing Agreement the details of advance is as under:

a. To Artefact Infrastructure Limited (AIL), a Subsidiary , closing balance as on March 31, 2014 is Rs.Nil (Previous year Rs. 17,366,120/).

Maximum balance outstanding during the year was Rs. Rs. 22,303,984 (Previous year Rs. 17,366,120/- ).

b. AIL has not made investment in the shares of the Company

c. As per the Company''s policy loans to employees are not considered in ''a'' above.

NOTE 14

Previous Year''s figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

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Mar 31, 2013

NOTE 1

The opinion of the management, Current Assets, Loans and Advances are of [he value staled, if realised in the ordinary course of business.

NOTE 2

SEGMENT REPORTING:

As per Accounting Standard (AS ) 17 on "Segment Reporting" lejjnenl information has been provided under the notes to consolidated fin uncial slaiemenls

NOTE 3

RELATED PARTY DISCLOSURES:

A . List of related parties :

(As certified by the Company)

I. Subsidiary Company Artefact infrastructure Ltd,

I], Step down Subsidiary

Alpine Inframining LLP (w.e.f 10.11 2012 )

1IL Associates

Rising Minerals & Metals LLP ( w.e.f 01.01.20] 3 ) Valecha Badwani Sendhwa Tollways Limited

Joint Ventures

Zaidun Leeng Sdn. Bhd.- Artefact Projects

Sheladia Associates inc. - Artefact Projects -Zaidun Leeng Sdn. Bhd.

Meinhardt Singapore Pte. Ltd. - Artefact Projects

Artefact Project - Zaidun Leeng (India) Pvt. Ltd ( up to 25.11.2012)

V. Key Management Personnel and Their Relatives Mr.Manoj B. Shah Mr. Pankaj B. Shah

Mr. Balkrishna Shah - Relative of Key Management Personnel Mr.Chetan B. Shah- Relative of Key Management Persomel Mrs. Sushila B Shah -Relative of Key Management Personnel Mrs, Rupa C Shah - Relative of Key Management Persomel Mrs. Madhvi M Shah - Relative of Key Management Personnel Mrs, Rcena P Shah - Relative of Key Management Persoitiel

VI. Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year : (Other related parties) Artefact Towers Association Koradi Minerals Private Limited ( w.e.f 10.11.2012)

NOTE 4

Previous Year''s figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them comparable with those of current year.

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Mar 31, 2012

NOTE 1 CONTINGENT LIBILITIES AND COMMITMENTS (To the extent not provided for)

Particulars As at March 31, As at March 31, 2012 2011 (Amount in Rs.) (Amount in Rs.)

(a) Contingent Liabilities :

(i) Guarantees given by the Company's Bankers. 39,993,998 41,543,998

(Bank guarantees are provided under contractual/legal obligation. No cash outflow is expected.) (ii) Corporate Guarantee Given 105,000,000 105,000,000

(Given to Bank against credit facility taken by the Subsidiary) (iii) Third Party Claims 1,669,675 1,725,636

(Matters are pending before various forums.No cash outflow is expected)

NOTE 2

SEGMENT REPORTING:

Based on consideration of dominant source and nature of risks and returns, the Company is considered to be engaged only in the business of "Project Consultancy" with all activities revolving around this business and accordingly has only one reportable segment. The geographical location of its main operations and the internal organization / reporting and management structure supports such treatment.

NOTE 3

RELATED PARTY DISCLOSURES:

A . List of related parties :

(As certified by the Company)

I. Subsidiary Company

Artefact Infrastructure Ltd.

II. Joint Ventures

Zaidun Leeng Sdn. Bhd.- Artefact Projects

Sheladia Associates Inc. - Artefact Projects - Zaidun Leeng Sdn. Bhd.

Meinhardt Singapore Pte. Ltd. - Artefact Projects

Artefact Projects Zaidun Leeng (India) Pvt. Ltd.

III. Key Management Personnel and Their Relatives

Mr. Manoj B. Shah Mr. Pankaj B. Shah Mr. Chetan B. Shah - Relative of Key Management Personnel

IV Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year : (Other related parties)

Valecha Badwani Sendhwa Tollways Ltd Artefact Towers Association

NOTE 4

JOINT VENTURE ACCOUNTING:

(a) Jointly Controlled Operations

(i) The Company has entered in to Joint Ventures (JVs) in respect of certain projects with various bodies corporates. The share in the residual profit remaining after sharing of receipts in proportion to the extent of services rendered is in the ratio as under -

The Company's share in the total value of the assets and liabilities as at Rs 31.03.2012 is Rs. 89,007,885 (Previous year Rs.100,389,635) and Rs.80,368,255 (Previous Year Rs.92,761,503) respectively and in the income, expenditure and net profit before tax for the year ended 31.03.2012 of the above Joint Ventures amounts to Rs.15.055.309 (Previous Year Rs.21,057,848), Rs.14,626,783 (Previous Year Rs.20,664,180) and Rs.428,525 (Previous year Rs.393,668) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled operations.

The Company's share in the total value of the assets and liabilities as at Rs 31.03.2012 is Rs. 1,489 (Previous Year Rs. 1,089) and Rs. 15,320 (Previous year Rs. 400) respectively and in the income, expenditure and net profit before tax for the year ended 31.03.2011 of the above Joint Venture amounts to Rs. Nil (Previous year Rs.Nil), Rs.Nil (Previous year Rs.Nil) and Rs.Nil (Previous year Rs.Nil) respectively. The figures have been incorporated based on the audited financial statements received from the jointly controlled entity.

NOTE 5

On March 10, 2011 the income tax authorities carried out search and seizure at the company's premises and concluded on 15th Aprill, 2011. Given the information provided so far and the investigation carried out at the time of operation, the company believes that there will be no material tax liability for the period. The process of completion of assessment by the tax authorities is in process and the amount of tax liability if any, shall be determined upon completion of such assessment.

NOTE 6

This Revised Schedule VI has become effective from April 1, 2011 for the preparation of Financial Statements. This has significantly impacted the disclsoure and presentation made in Financial Statements. Previous Year's figures have been reworked /regrouped / rearranged / reclassified wherever necessary to correspond within Current Year's classification/ disclosure.

(i) The above Cash Flow Statement has been prepared under the "Indirect Method" as set out in Accounting Standard - 3 "Cash Flow Statements" issued by the Institute of Chartered Accountants of India. (ii) Figures in brackets indicate Outflows. (iii) Previous year's figures have been regrouped / rearranged wherever necessary to make them comparable with those of current year.

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Mar 31, 2010

31.03.2010 31.03.2009 (Amount In Rs.) (Amount In Rs.)

1 Contingent Liabilities :

Guarantees given by the Companys Bankers. 55834498 99594366

(Bank guarantees are provided under contractual/legal obligation. No cash outflow is expected.)

Defined Benefit Plan

The employees Gratuity Fund Scheme of the Company is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to addtional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

2 Segment Reporting:

Based on consideration of dominant source and nature of risks and returns, the Company is considered to be engaged only in the business of "Project Consultancy" with all activities revolving around this business and accordingly has only one reportable segment. The geographical location of its main operations and the internal organization / reporting and management structure supports such treatment.

3 Related Party Disclosures

A. List of related parties :

(As certified by the Company)

I. Associate Companies / Joint Ventures

a) Zaidun Leeng Sdn. Bhd.- Artefacts Projects

b) Sheladia Associates Inc. - Artefacts Projects- Zaidun Leeng Sdn. Bhd. L— Joint Ventures

c) Meinhardt Singapore Pte. Ltd. - Artefact Projects

d ) Artefact Projects Zaidun Leeng (India) Pvt. Ltd. Associate Company

II. Key Management Personnel

[a] Mr. Manoj B. Shah

[b] Mr. Pankaj B. Shah

[c] Mr. Mohan S.Adige

III Enterprises in which key managerial personnel and their relatives are able to exercise significant influence with whom transactions have taken place during the year: (Other related parties)

a) Artefacts Projects Sdn. Bhd.

b) Artefacts Infrastructure Limited

Note : Figures in brackets represent previous years amounts.

b. The computation of Net Profit for the purpose of Directors Remuneration u/s 349 of the Companies Act,1956 has not been enumerated since no commission has been paid to the Directors. Fixed managerial remuneration has been paid to the whole-time Directors of the Company as per Schedule XIII of the Companies Act, 1956. 13 In accordance with the Accounting Standard (AS-28) on "Impairment of Assets", the Management during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. On the basis of this review carried out by the management, there was no impairment loss on Fixed Assets during the year ended 31s March, 2010.

5 Joint Venture Accounting :

5.1 Jointly Controlled Operations

b As at the end of the year, the Companys share in the total value of the assets and liabilities is Rs. 22910016 and income, expenditure and net profit before tax of all these Joint Ventures amounts to Rs. 25947677, Rs. 25308022 and Rs. 639656 respectively. The figures have been incorporated based on the audited accounts received from the respective Joint Venturers.

As at the end of the year, the Companys share in the total value of the assets and liabilities is Rs. 200000/-, and income, expenditure and net profit before tax of the above Joint Venture amounts to Rs. Nil , Rs. Nil and Rs. Nil respectively. The figures have been incorporated based on the audited accounts received from the respective Company.

6 The Members at the EGM of the company held on 23rd February 2010 consented for offer, issue and allotment in one tranches through a Preferential allotment and/or Private placement basis up to 9 Lacs equity shares of Rs.10 Each at Rs. 101/-per equity share and up to 2 lacs warrants convertible at the option of the holders in to equity share ofRs. 10 Each atRs. 101/-per warrants to investors and up to 8.22 Lacs warrants convertible at the option of the holders in to equity share ofRs. 10 Each atRs. 101/- per warrants to the promoters. The company has received share application money aggregating to Rs. 909 Lacs and warrant application Money aggregating to Rs . 258.15 Lacs as on 31" March 2010.

7 Previous Years figures have been reworked /regrouped / rearranged / reclassified wherever necessary to make them compairable with those of the current year.