Notes to Accounts of Bigbloc Construction Ltd.

Mar 31, 2025

3.19 Provisions and contingent liabilities

A provision is recognized when the Company has a present obligation (legal or constructive) as a
result of past event and it is probable that an outflow of resources embodying economic benefits
will be required to settle the obligation, in respect of which a reliable estimate can be made.

A disclosure for a contingent liability is made when there is a possible obligation or a present
obligation that may, but probably will not require an outflow of resources.

18.1 Vehicle Loans from Bank are secured by hypothecation of Trucks and Motor Cars for which
loan has been taken.

18.2 The Commercial Vehicle Loan taken from HDFC Bank and GECL on the same is secured
against hypothecation of Trucks purchased against the same.

18.3 Loan against residential Property taken from ICICI Bank and Top Up Loan on the same is
secured by mortgage of Residential Flat purchased by the company at Surat. Loan against
office building taken from ICICI Bank is secured by mortgage of Office Building purchased
by the company.

18.4 Term Loans from Banks includes ECLGS is secured by hypothecation of Assets created out
of Bank Finance. The rate of interest of TL is 8.75% as at the year end.

b) Details of investments made are given in Note No. 6.

45. DISCLOSURE UNDER RULE 11(E) OF COMPANIES (AUDIT AND AUDITORS) RULES, 2014

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies),
including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company
(Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the Company shall whether, directly or indirectly lend or invest in other
persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46. FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT
A. Accounting classifications and fair values:

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for
financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Equity Security includes only shares of Co-operative bank. The equity instruments of Co-operative
Bank is not listed on stock exchange and are not tradable security. Further, share have been
purchased due to banking relation with said bank and as per Co-operative bank policy only face
value of shares is paid back at time of closure of relationship. Hence, equity security with Co¬
operative bank is taken at face value only as no amount above it can be realized by the company.

B. Financial risk management:

The Group has exposure to the following risks arising from financial instruments:

(i) credit risk

(ii) liquidity risk

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of
the risk management framework.

The board of directors has established the risk management committee, which is responsible for
developing and monitoring the Company''s risk management policies. The committee reports
regularly to the board of directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced
by the Company, to set appropriate risk limits and controls and to monitor risks and adherence
to limits. Risk management policies and systems are reviewed regularly to reflect changes in
market conditions and the Group''s activities. The Company, through its management standards
and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

The financial risk disclosures presented are only illustrative and reflect the facts and circumstances
of the Group. In particular, Ind AS 107 requires the disclosure of summary quantitative data about
an entity''s risk exposures based on information provided internally to an entity''s key management
personnel, although certain minimum disclosures are also required to the extent that they are not
otherwise covered by the disclosures made under the ''management approach'' above.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company''s
receivables from customers, loans and investments in debt securities.

The carrying amounts of financial assets and contract assets represent the maximum credit
exposure.

Impairment losses on financial assets and contract assets recognised in profit or loss were NIL.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial asset.
The Company''s objective when managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

47. Additional Information as required by para 7 of General Instructions for preparation of
Statement of Profit and Loss (other than already disclosed above) are either Nil or Not
Applicable.

48. Previous Year Figures have been regrouped/rearranged wherever necessary.

As per our Audit Report Attached For & On Behalf of Board of Directors

For RKM & Co. Naresh Saboo Narayan Saboo

Chartered Accountants Managing Director Director

Firm Registration No.: 108553W DIN: 00223350 DIN: 00223324

Manish R. Malpani Mohit Saboo

Partner Director & CFO

Membership No.: 121031 DIN: 02357431

Place: Surat
Date: May 30, 2025

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Mar 31, 2024

3.14 Provisions and contingent liabilities

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources embodying economic benefits will berequired to settle the obligation, in respect of which a reliable estimate can be made.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

18.1 Vehicle Loans from Bank are secured by hypothecation of Trucks and Motor Cars for which loan has been taken.

18.2 The Commercial Vehicle Loan taken from HDFC Bank and GECL on the same is secured against hypothecation of Trucks purchased against the same.

18.3 Loan against residential Property taken from ICICI Bank and Top Up Loan on the same is secured by mortgage of Residential Flat purchased by the Company at Surat. Loan against office building taken from ICICI Bank is secured by mortgage of Office Building purchased by the Company.

18.4 Term Loans from Banks includes ECLGS is secured by hypothecation of Assets created out of Bank Finance. The rate of interest of TL is 9.25% as at the year end.

42. SEGMENT REPORTING

In line with Ind AS - 108 on ''Operating Segments'', taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. “AAC Blocks Division”.

44. FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT A. Accounting classifications and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

B. Financial risk management

The Group has exposure to the following risks arising from financial instruments:

(i) credit risk

(ii) liquidity risk

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the risk management framework.

The Board of Directors has established the risk management committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group''s activities. The Company, through its management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The financial risk disclosures presented are only illustrative and reflect the facts and circumstances of the Group. In particular, Ind AS 107 requires the disclosure of summary quantitative data about an entity''s risk exposures based on information provided internally to an entity''s key management personnel, although certain minimum disclosures are also required to the extent that they are not otherwise covered by the disclosures made under the ''management approach'' above.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, loans and investments in debt securities.

The carrying amounts of financial assets and contract assets represent the maximum credit exposure.

Impairment losses on financial assets and contract assets recognised in profit or loss were Nil.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s objective when managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

47. RELATED PARTY RELATIONSHIP AND TRANSACTION A. Name of Related Parties & Nature of Relationships

a) Subsidiary Company

1. Starbigbloc Building Material Pvt. Ltd.

2. Bigbloc Building Elements Pvt. Ltd.

3. Siam Cement Bigbloc Construction Technologies Pvt. Ltd.

b) Enterprises Controlled by Key Managerial Personnel & their relatives

1. Mohit Industries Limited

2. Soul Clothing Pvt. Ltd.

45. ADDITIONAL INFORMATION AS REQUIRED BY PARA 7 OF GENERAL INSTRUCTIONS FOR PREPARATION OF STATEMENT OF PROFIT AND LOSS

(other than already disclosed above) are either Nil or Not Applicable.

46. Previous Year Figures have been regrouped/rearranged wherever necessary.

3. Mohit Exim Pvt. Ltd.

4. Mohit Texport Pvt. Ltd.

5. Mask Investments Limited

c) Key Managerial Personnel

1. Narayan S. Saboo

2. Naresh S. Saboo

3. Mohit N. Saboo

4. Manish N. Saboo

Explanation: There was no income generated from investment activity during current year.

As per our Audit Report Attached For & on Behalf of Board of Directors

For RKM & CO. Naresh Saboo Narayan Saboo

Chartered Accountants Managing Director Director

Firm Registration No.: 108553W DIN: 00223350 DIN: 00223324

Manish R. Malpani Mohit Saboo Alpesh Makwana

Partner Director & CFO Company Secretary

Membership No.: 121031 DIN: 02357431

Place: Surat Date: 7^th May, 2024

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Mar 31, 2023

CONTINGENT LIABILITY & COMMITMENTS (i) Contingent Liabilities not provided for:		(Amount in ? Lakhs)
Particulars	As at 31st March, 2023	As at 31st March, 2022
(a) Service Tax Demand and Penalty for period April 2016 to June 2017 The Company has filed appeal in respect of above demand before CESTAT.	39.60	-
(b) Stamp Duty demand raised by Stamp Duty Department on Demerger of AAC Block Division of Mohit Industries Limited in the Company.	28.38	28.38

(ii) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is W326.00 Lakhs (P.Y NIL) against which advance paid is W 130.77 Lakhs (P.Y NIL).

(b) Uncalled Liability on shares and other investments partly paid W NIL (P.Y. W NIL)

(c) Other Commitments W NIL (P.Y. W NIL)

The above information disclosure regarding Trade Payables of Micro, Small and Medium Enterprises is made by the Management as per information from suppliers’ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and relied upon by Auditors. The liability to pay interest u/s 16 of MSMED Act is provided in books of accounts as and when same is claimed by supplier by raising Debit Note in respect of the same. Accordingly, the above disclosure has been given as per liability of Trade Payable shown in the books of accounts of the Company.

(ii) Process risk management involves assurances by the Company’s internal audit department regarding the effectiveness of business and financial controls and processes in all key activities across the various business processes.

(iii) Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and regulations, with a comprehensive reporting process that cascades upwards from the accountable business line executives to BCL’s Audit Committee and then on to the Board of Directors.

The outcomes of business review meetings conducted by management and internal audit regarding processes and their compliance, as well as observations of the Audit Committee and the Board of Directors are continuously incorporated to capture new risks and update the existing ones. All three dimensions of BCL’s Risk Management framework are reviewed annually for their relevance and modifications, as required. The businesses and internal audit make regular presentations to the Audit Committee for detailed review. The risk management process, including its tracking and adherence, is substantially enabled for greater consistency and better reporting capabilities.

Explanation: There was no income generated from investment activity during current year.

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Mar 31, 2018

1. CORPORATE INFORMATION

Bigbloc Construction Limited (‘the company) is a public limited company domiciled in India and incorporated under the provisions of the Company Law. Its shares are listed on BSE and NSE. The company is having its head quarters in Surat and plants at Umargaon. The company is primarily engaged in manufacture, sale and marketing of AAC Blocks.

2. BASIS OF PREPARATION

The financial statements (on standalone basis) of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) Rules, 2016.

For the year ended 31st March 2017, the Company had prepared its financial statements in accordance with the Accounting Standards notified under Section 133 of the Companies Act, 2013 read together with the Companies (Accounts) Rules 2014 (referred as “Indian GAAP”). For the year ended 31st March, 2018, the Company has prepared financial statements in accordance with Ind AS notified by Ministry of Corporate Affairs (‘MCA’).

The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet as at 1st April, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101 ‘‘First-time adoption of Indian Accounting Standards’’.

The transition was carried out from Indian GAAP which is considered as the previous GAAP, as defined in Ind AS 101. The reconciliation of effects of the transition from Indian GAAP on the equity as at 1st April, 2016 and 31st March, 2017 and on the net profit or loss and cash flows for the year ended 31st March, 2017 is disclosed in Note no 37 to these financial statements.

Functional and presentation of currency

The financial statements are prepared in Indian Rupees which is also the Company’s functional currency.

Basis of measurement

The financial statements have been prepared on a historical cost basis except for Certain Financial Assets measured at fair value (refer accounting policy regarding financial instruments)

Use of significant accounting estimates, judgments and assumptions

The preparation of financial statements requires the management to make estimates and assumptions considered in reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates are recongnised in the periods in which these get materialized.

3.1 The Company has only one class of shares referred to as Equity Shares having face value of Rs. 10/- each. Each equity Shareholder is eligible for one vote per share held.

4.1 Car Loans from Bank are secured by hypothecation of Motor Cars for which loan has been taken.

4.2 Term Loans from Banks are secured by hypothecation of all the fixed assets of the company.

4.3 The Term Loans of the company is secured by Land & Building of Factory at Umargaon, Valsad (Gujarat).

4.4 The Term Loans are also secured against personal properties of the directors and sister concern M/s Mohit Yarns Limited and Mohit Industries Limited. All the term loans are guaranteed by directors of the company.

4.5 The Term Loans from The Shamrao Vithal Co.Op. Bank Ltd. of Rs. 884.29 Lakhs are repayable in Equal Monthly Instalments of Rs. 39.34 Lakhs. The loan shall be repaid by September, 2020. The rate of Interest at year end is 11%.

4.6 The Commercial Vehicle Loan taken from HDFC Bank is secured against hypothecation of Trucks purchased against the same. The rate of Interest is 8.60%.

5 CONTINGENT LIABILITY & COMMITMENTS:-

(i) Contingent Liablilities not provided for Rs. 28.38 Lakhs (P.Y. Rs. 46.19 Lakhs) in respect of Stamp Duty raised by Stamp Duty Department on Demerger of AAC Block Division of Mohit Industries Limited in the Company. The Company has disputed the amount of Stamp Duty.

(ii) Commitments:-

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs. 12 Lakhs (P. Y. Rs. 65 Lakhs) against which advance paid is Rs. 11.52 Lakhs (P.Y. Rs. 62.33 Lakhs).

(b) Uncalled Liability on shares and other investments partly paid Rs. Nil (P.Y. Rs. Nil)

(c) Other Commitments Rs. Nil (P.Y. Rs. Nil)

6 Disclosures of the Micro, Small and Medium Enterprises:-

The management of the Company has not received any intimation from ‘suppliers’ regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule III of the Companies Act, 2013 could not be provided.

7 Disclosure pursuant to Indian Accounting Standard 19 ‘Employee benefits’:

(A) The Company has recognized the following amounts towards defined contribution plans as an expense and included in the Statement of Profit and Loss.

(B) The company has not provided for Post Employment Benefits and other long term employee benefit sunder Defined Benefit Plans on accrual basis but provides the same as and when they become due for payment. Accordingly, the following amounts hae been provided as expenses during the year and charged in the Statement of Profit and Loss as they have become due:

8 Segment Reporting

In line with Ind AS - 108 on ‘Operating Segments’, taking into account the organizational structure, product type as well as the differing risks and returns criterion, the Company is engaged in only one reportable segment viz. “AAC Blocks Division”.

9 Financial Risk Management

Bigbloc Construction Limited (BCL) continues to deploy a well articulated risk management framework. This is based upon a three-tiered approach encompassing (i) enterprise risks, (ii) process risks, and (iii) compliance risks.

(i) Enterprise risk : The company continue to evaluate the risk and also ensures that the mitigation processes are in place.

(ii) Process risk management involves assurances by the Company’s internal audit department regarding the effectiveness of business and financial controls and processes in all key activities across the various business processes.

(iii) Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and regulations, with a comprehensive reporting process that cascades upwards from the accountable business line executives to BCL’s Audit Committee and then on to the Board of Directors.

The outcomes of business review meetings conducted by management and internal audit regarding processes and their compliance, as well as observations of the Audit Committee and the Board of Directors are continuously incorporated to capture new risks and update the existing ones. All three dimensions of BCL’s Risk Management framework are reviewed annually for their relevance and modifications, as required. The businesses and internal audit make regular presentations to the Audit Committee for detailed review. The risk management process, including its tracking and adherence, is substantially enabled for greater consistency and better reporting capabilities.

10 Additional Information as required by para 7 of General Instructions for preparation of Statement of Profit and Loss (other than already disclosed above) are either Nil or Not Applicable.

11 Previous Year Figures have been regrouped/rearranged wherever necessary.

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Mar 31, 2016

Each equity Shareholder is eligible for one vote per share held.

1. Reconciliation of No. of Equity Shares Outstanding at the Beginning & End of the reporting period:

2. Car Loans from Bank are secured by hypothecation of Motor Cars for which loan has been taken.

3. Term Loans from Banks are secured by hypothecation of all the fixed assets of the company.

4. The Term Loans of the company is secured by Land & Building of Factory at Umargaon, Valsad (Gujarat).

5. The Term Loans are also secured against personal properties of the directors and sister concern M/s Mohit Yarns Limited and Mohit Industries Limited. All the term loans are guaranteed by directors of the company.

6. The Term Loans from State Bank of Travancore, Central Bank of India and The Shamrao Vithal Co.Op. Bank Ltd. of Rs. 1680.96 Lakhs are repayable in Equal Monthly Installments of Rs. 31.84 Lakhs by March, 2020. The rate of interest at the year end is 12.70%.

* The weighted average number of equity shares has been taken as number of equity shares to be allotted to the shareholders of Mohit Industries Limited (MIL) as per Scheme of Demerger as the Appointed date of Scheme has been taken as 01st April, 2015 and the scheme has been effective on 16th March, 2016 after approval of the Scheme by Hon''ble Gujarat High Court and filing of certified copy of same with the ROC. Thus, effective weighted average number of equity shares as on 01st April, 2015 of the company is number of shares allotted by company to shareholders of MIL on 30th April, 2016.

7. SCHEME OF ARRANGEMENT (DEMERGER) BETWEEN THE COMPANY AND MOHIT INDUSTRIES LIMITED :-

The Company (Resulting Company) had entered into a Scheme of Arrangement (''the Scheme'') with Mohit Industries Limited (MIL) (''Demerged Company'') for demerger of the AAC Block Division of MIL into the Company. In Consideration of vesting of AAC Block division of MIL to the company as per terms of the Scheme, each shareholder of Demerged Company in respect of each share held in MIL, is entitled to one share each of the Resulting company of face value of Rs. 10/- each credited as fully paid up. Also as per Terms of the Scheme, the existing share capital of the Resulting Company of Rs. 7,00,000/- stands cancelled on allotment (issuance) of shares of Resulting company to shareholders of the Demerged Company.

The Scheme was approved by the Honourable High Court of Gujarat on February 22, 2016. The Company has filed the order and the Scheme Approved by the High Court with the Registrar of the Companies, Ahmadabad (ROC) on March 16, 2016. Thus, the scheme becomes effective on March 16, 2016 and the effect of the same is given from Appointed Dated which is 1st April, 2015. Thus, as the scheme has been approved by Hon''ble Gujarat High Court and effective from 16th March, 2016 all the assets and liabilities of AAC Block Division of MIL with effect from 1st April, 2015 becomes Assets & Liabilities of the Company. These financial statements have been prepared accordingly considering the AAC Block Division of MIL to be Undertaking of the Company from 1st April, 2015.

However, the Company has allotted shares to shareholder of MIL in accordance with the Scheme on 30th April, 2016 i.e. after the close of the year. Thus, Share Capital of the Company of Rs. 7,00,000/- has not stood cancelled as on 31st March, 2016. Hence, as on 31st March, 2016 the reported share capital of the company is Rs. 7,00,000/- (as the same stood cancelled on 30th April, 2016). While, the share capital and securities premium to be allotted to shareholders of MIL as per the scheme has been reflected in the Balance Sheet as on 31.03.2016 as "Share Capital & Premium Pending Allotment". After allotment of Shares to shareholders of MIL the effect in Shareholders'' Funds shall be as follows:-

Deferred Tax liability pertaining to the demerged undertaking (AAC Block Division) in the accounts of demerged company (MIL) as on 31.03.2015 being Rs. 3,05,91,432/- has also been transferred from the Demerged Company to the Company (resulting company) and same being opening balance (i.e. created out of profits of earlier years) has been reduced directly from the General Reserve transferred to the company pursuance to demerger as given in Note NO. 3(b).

8. Disclosures of the Micro, Small and Medium Enterprises :-

The management of the Company has not received any intimation from ''suppliers'' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure requirements in this regard as per Schedule III of the Companies Act, 2013 could not be provided.