Notes to Accounts of Dhruv Consultancy Services Ltd.

Mar 31, 2025

Terms Rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rupees 10 per share. Each holder of equity shares is entitled to one vote per

The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Note:12-e

During the FY 2024-25, the Company has raised Equity Share capital by issuing 30,77,800 Equity Shares as fully paid-up on preferential basis. During PY 2023-24, the Company has allotted 7,92,769 Equity Shares as fully paid-up by way of conversion of Share warrants issued on preferential basis into Equity Shares

2) For the period of five years immediately preceding the date as at which Balance Sheet is prepared the Company has:

(i) Not allotted any shares in pursuance to contract(s) without payment being received in Cash.

(ii) Not bought back any shares.

B. Fair Value Measurements

Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the Indian Accounting Standard. An explanation of each level is as follows:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices in active markets or identical assets and liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market (like forward contracts) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entityspecific estimates. If all significant inputs required to fair value as instrument are observable, the instrument is included in level 2

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

Valuation techniques used to determine fair value

The fair value of the quoted investment is determined using traded quoted bid prices in an active market.

The fair value of unquoted investments is determined using inputs other than quoted prices included in level 1 that are observable for assets and liabilities.

Financial risk management

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

Credit Risk

• Trade Receivables

• Other Financial Instruments

Liquidity Risk Market Risk

• Interest Rate Risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. Management is responsible for developing and monitoring the Company''s risk management policies, under the guidance of Audit Committee.

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 Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligation.

The Company''s Audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit committee.

ii. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments

a) Trade Receivables

The Company follows a ‘simplified approach'' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates irrecoverable amounts based on the ageing of the receivable balances and historical experience. Receivable balances and deposit balances are monitored on a monthly basis with the result that the Company''s exposure to bad debts is not considered to be material.

The Company has no significant concentrations of credit risk. It has policies in place to ensure that sale transactions are made to customers with an appropriate credit history.

The Company does not have any credit risk outside India.

iii. Liquidity Risk ( Rs in Lakhs)

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain optimum level of liquidity at all times, to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt etc. at an optimised cost. Working capital requirements are adequately addressed by internally generated and borrowed funds.

The following tables detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are at floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.

iv. Market Risk

Market risk is the risk that changes in market prices- such as foreign exchange rates, interest rates and equity prices- will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments such as foreign exchange contracts to manage its exposures to foreign exchange fluctuations. All such transactions are carried out within the guidelines set by the risk management committee.

The analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations, provisions and on the non financial assets and liabilities.

- Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Majority of borrowings of the Company are at fixed interest rate and are carried at amortised cost. They are therefore not subject to interest rate risks, since neither the carrying amount nor the future cash flows will fluctuate because off a change in market interest rates.

Cash equivalents & Other bank balances/deposits

The Company held cash equivalents and other bank balances/deposits of Rs. 6,52,40,871 at March 31, 2024 (6,52,40,871 at March 31, 2024). The cash equivalents and other bank balances/deposits are held with banks with good credit ratings.

Loans and advances

The loans and advances (including security deposits) have been to parties which are generally regular in making payments and hence the Company does not expect significant impairment losses on its current profile of outstanding advances.

Financial instruments - Fair values and risk management (continued) iv. Market Risk

Market Risk is the risk that changes in market prices- such as foreign exchange rates, interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

iv (a). Currency risk:

The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupees ("Rs.”). Company does not have any foreign currency transaction. Accordingly, the Company is not significantly exposed to any foreign currency risk.

iv (b). Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

v (b). Other

The Company does not have any Financial investment/ investment in shares that are subject to market risk. Hence, the market risk will not have any/ material effect on the company with respect to financial investments or investment in shares.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings taken and issued at fixed and floating rates exposes the Company to fair value and cash flow interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

Financial instruments - Fair values and risk management (continued) v. Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using Adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt less cash and bank balances.

(d) Remaining performance obligations

In case of revenue from Road repair and maintenance, the Company applies the practical expedient in paragraph 121 of Ind AS 115 and does not disclose information about remaining performance obligations where the Company has a right to consideration from customer in an amount that corresponds directly with the value to the customer of the Company''s performance completed to date. Accordingly, the Company recognises revenue by an amount to which the Company has a right to invoice.

Remaining performance obligations are subject to variability due to several factors such as changes in scope of contracts, periodic revalidations of the estimates, economic factors (changes in currency rates, tax laws etc). The aggregate value of transaction price allocated to remaining performance obligations is Rs 35019.77 lakh out of which 30% is expected to be recognised as revenue in the next year and the balance thereafter.

Leases disclosure pursuant to IndAS 116 Leases

The Company has taken few premises on lease.Rental contracts are made from 12 months to 60 months and are renewable by mutual consent on mutually agreeable terms. Some of these lease agreements have price escalation clauses. There are no restriction imposed by lease agreements and there are no sub leases. There are no contingent rents.

Note : 34

Employee Benefits

As required by IND AS 19 "Employees Benefits” the disclosures are as under:

Defined Contribution Plan

The Company offers its employees defined contribution plans in the form of Provident Fund (PF) and Employees'' Pension Scheme (EPS) with the Government, and certain State plans such as Employees'' State Insurance (ESI), PF and EPS cover substantially all regular employees and the ESI covers certain employees. Contributions are made to the Government''s funds. While both the employees and the Company pay predetermined contributions into the provident fund and the ESI Scheme, contributions into the pension fund is made only by the Company. The contributions are normally based on a certain proportion of the employee''s salary.

Defined Benefit Plans: -Gratuity:

Under the gratuity plan, the eligible employees are entitled to post -retirement benefit at the rate of 15 days salary for each year of service until the retirement or resignation with a payment ceiling of ? 20 lakhs. The Company makes annual contributions to Employees'' Group Gratuity-cum Life Assurance (Cash Accumulation) Scheme of LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

i) On normal retirement / early retirement / withdrawl / resignation:

As per the provisions of Payments of Gratuity Act, 1972 with vesting period of 5 years of service

ii) On death in service:

As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

Death Benefit:

The Company provides for death benefit, a defined benefit plan, (the death benefit plan) to certain categories of employees. The death benefit plan provides a lump sum payment to vested employees on death, being compensation received from the insurance company and restricted to limits set forth in the said plan. The death benefit plan is non - funded.

Leave Encashment:

The Company’s employees are entitled for compensated absences which are allowed to be accumulated and encashed as per the Company’s rule. The liability of compensated absences, which is non-funded, has been provided based on report of independent actuary using the "Projected Unit Credit Method”.

Accordingly aggregate of Rs 20.81 Lakhs (Pr. Yr. Rs 12.27 Lakhs) being liability as at the year end for compensated absences as per actuarial valuation has been provided in the accounts.

Explanation where variance in ratios is more than 25%

Current Ratio

Current period ratio is higher due to increase in current assets Debt Equity ratio

Current period ratio is lower due to increase in Equity share capital by way of preferential allotment of Equity Shares and Debt-Service Coverage ratio:

Current period ratio is higher due to increase in net profits accompanied with decrease in loans Return on Equity

Current period ratio is lower due to increased Equity base and no substantial increase in net profits as comapred to previous year. Trade payables turnover ratio:

Current period ratio is lower due to lower average payables in current finacial year due to utilisation of preferential issue proceeds. Net Capital Turnover ratio

Current period ratio is lower mainly due to increase in net working capital

Note : 37

Additional Regulatory Information

i) Title deeds of Immovable Property not held in name of the Company

The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the company.

ii) Revaluation of Property, Plant and Equipment

The Company has not revalued its Property, Plant and Equipment during the year.

iii) Details of loans granted to promoters, directors, KMPs and the related parties

The Company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties during the year.

iv) Capital-Work-in Progress (CWIP)

There is no expenditure incurred against Capital-Work-in Progress (CWIP) during the year.

v) Intangible assets under development:

During the year the company has invested into development of integrated software for performing Payroll related accounting activity. The total estimated cost of Development is Rs. 24.45 Lakhs and the amount paid is Rs. 14.63 Lakhs.

vi) Details of Benami Property held

There are no Benami properties held by the company and no cases of Benami properties have been initiated or pending against the name of company.

vii) Details of borrowings from banks or financial institutions on the basis of security of current assets

The Company has been sanctioned working capital during the year, from banks on the basis of security of net current assets

The management has taken requisite steps to probe into this matter. However, non-creation or non-satisfaction of charges, being relatively insignificant value, has not materially affected the Financial Statements nor the interest of financial institutions have been adversely affected.

xii) Compliance with number of layers of companies

There are no layer of companies hold or created by the company during the year.

xiii) Compliance with approved Scheme(s) of Arrangements

The company has not entered into any scheme of arrangements during the year.

xiv) Utilisation of Borrowed funds and share premium:

A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities.

B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities.

xv) Undisclosed income

The Company does not have any transaction that are not recorded in the books of accounts but it has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

xvii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

xviii) Previous year''s figures have been re-grouped / re-classified wherever necessary, to confirm to current year''s classification

viii) Utilisation of Borrowings

The company has used the borrowings taken from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

ix) Wilful Defaulter

The company is not declared wilful defaulter by any bank or financial Institution or other lender.

x) Relationship with Struck off Companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xi) Registration of charges or satisfaction with Registrar of Companies

The company has promptly created and satisfied the charges with Registrar of Companies, against the credit facilities availed from the financial institutions, except in following cases:

---

Mar 31, 2024

ix) Provisions, contingent liabilities:

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Further, long term provisions are determined by discounting the expected future cash flows specific to the liability. The unwinding of the discount is recognised as finance cost. A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Company recognises any impairment loss on the assets associated with that contract.

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 embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

x) Revenue from contracts with customers:

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

Revenue is measured based on the transaction price as specified in the contract with the customer. It excludes taxes or other amounts collected from customers in its capacity as an agent.

Revenue from Construction Contracts

Revenue, where the performance obligation is satisfied over time, is recognised in proportion to the stage of completion of the contract. The stage of completion of project is determined by the proportion that contract cost incurred for work performed upto the balance sheet date bear to the estimated total contract costs.

Contract revenue is recognised only to the extent of contract costs incurred that are likely to be recoverable. Contract costs are recognised as an expense in the statement of profit and loss in the accounting periods in which the work to which they relate is performed. An expected loss on a contract is recognised immediately in the Statement of Profit and Loss.

The Company recognises revenue using input method that is based on Company''s efforts or inputs to the satisfaction of a performance obligation relative to the total expected inputs to the satisfaction of that performance obligation. Contract revenue recognised at an amount which is higher than its right to consideration (i.e., right to invoice) from customer is recorded as unbilled revenue under other current assets.

Contract revenue includes the initial amount agreed in the contract plus any variations in contract work and claims payments, to the extent that it is probable that they will result in revenue and can be measured reliably. The Company recognises bonus/ incentive revenue on early completion of the project when it is highly probable that it will result in revenue."

Contract balances Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer e.g., unbilled revenue. If the Company performs its obligations by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset i.e., unbilled revenue is recognised for the earned consideration that is conditional. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Company issues an invoice to the Customer.

Trade receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional i.e., only the passage of time is required before payment of consideration is received.

Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. Contract liabilities are recognised as revenue when the Company performs under the contract.

Other income

a) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the effective rate of interest.

b) Dividend income is recognised in profit or loss on the date on which the Company''s right to receive payment is established.

xi) Retirement and other employee benefits:

a) Short term employee benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages etc. and the expected cost of ex-gratia are recognized in the period in which the employee renders the related service. A liability is recognised for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

b) Post Employment Employee Benefits:

Retirement benefits to employees comprise payments to government provident funds, gratuity fund and Employees State Insurance.

Defined benefit plans:

Gratuity liability is defined benefit obligation. The Company''s net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation by an independent actuary, using the projected unit credit method, which recognizes 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.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the Balance Sheet date.

Remeasurement of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in Other Comprehensive Income. Net interest expense (income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net defined liability (asset), to the net defined liability (asset) at the start of the financial year after taking into account any changes as a result of contribution and benefit payments during the year. Net interest expense and other expenses related to defined benefit plans are recognised in Statement of Profit and Loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in Statement of Profit and Loss. The Company recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

Actuarial gains/losses are recognized in the other comprehensive income.

xii) Income taxes:

Tax expense comprises of current and deferred tax. It is recognised in the statement of profit and loss except to the extent that it relates to an item recognised directly in equity or in Other Comprehensive Income.

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with Income Tax Act, 1961. Deferred income tax reflects the impact of current year timing differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves unrecognized deferred tax assets are reassessed at each reporting date and recognised to the extent that it has become probable that future taxable profits will be available against which they can be used.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Deferred tax asset / liabilities in respect of on temporary differences which originate and reverse during the tax holiday period are not recognised. Deferred tax assets / liabilities in respect of temporary differences that originate during the tax holiday period but reverse after the tax holiday period are recognised. The tax effect is calculated on the accumulated timing differences at the year-end based on the tax rates and laws enacted or substantially enacted on the balance sheet date.

Minimum alternate tax credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each balance sheet date and the carrying amount of the MAT credit is written down to the extent there is no longer convincing evidence to the effect that the Company will pay normal income tax during the specified period.

xiii) Earnings Per Share

a) Basic earnings per share:

Basic earnings per share is calculated by dividing:

- the profit attributable to equity share holders of the Company

- by the weighted average number of equity shares outstanding during the financial year.

b) Diluted earnings per share:

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 all dilutive potential equity shares.

xiv) Operating segments:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.

I) Term loans

A) Term loan includes loan from a bank amounting Rs 462.26 lakh (March 31, 2022 : Rs 226.26 lakh) which is secured by a first and exclusive charge as under:

a) The facility to the extent of Rs 170.12 lakh is cover by 100% guarantee from National credit Guarantee Trustee Company Limited (Ministry of Finance Government of India) and Rs 292.14 lakh is a Term Loan availed against purchase of equipment.

b) Second charges as Equitable mortgage of Properties and Hypothication of current assets of the Company including Present and future except specifically charged;

The term loan of Rs 170.12 lakh carries an interest rate calculated on 3 months Repo rate of the bank plus a spread 4.50%. The term loan is repayable in 36 equal monthly installments plus 12 months Principal Moratorium commencing from the date of disbursement. Further, loan of Rs 292.14 Lakh carries an interest rate 8.25%.

II) Vehicle Loans

a) Vehicle loans from NBFC of Rs 92.79 lakh (from bank as on March 31, 2022 : Rs 3.51 lakh) carry interest rates ranging from 7.40% - 8.10% p.a. The loans are repayable in 60 monthly installments along with interest. The loans are secured by way of hypothecation of the respective vehicles.

^III) Business Loan

a) Business Loan from NBFC of Rs 68.07 Lakh (March 31, 2022: Rs 13.68 Lakh) carry interest rate of 14.50% to 19.30% p.a. The loans are repayable in 36 monthly installments along with Interest. The Loan are secured by Personal guarantee of Mr. Pandurang Dandawate, Mrs. Jayashree Dandawate and Mrs. Tanvi Auti, Directors of the Company.

I) Loans repayable on demand

A) Loans repayable on demand include an overdraft facility from a bank amounting Rs 718.92 Lakh (March 31, 2022 : Rs 961.77 Lakh) which is secured as below:

a) First charge by way of hypothecation of all the current assets, present and future, of the the company.

b) Equitable Mortgage of the following Properties as under :

i) Row house No. 4, Ground Floor Building No. F 20, Vrindavan CHS Ltd., Sec-4, Sanpada, Navi Mumabi, Thane registered in the name of Mr. Pandurang Dandawate.

ii) Office No. 501, 5th floor of the building, Pujit plaza Co-oprative premises Society Ltd., Plot No. 67, Sec- 11, CBD Belapur, Navi Mumbai.

iii) Office No. 507 & 508, 5th floor of the building, Pujit plaza Co-oprative premises Society Ltd., Plot No.67, Sec- 11, CBD Belapur, Navi Mumbai.

iv) Residential Flat No. A-801 & 802, at shreeji Hights, Plot No.1, 1A, 1B & 1C, Sec-46A, Nerul, Navi Mumbai, Registerd in the name of Mr. Pandurang B. Dandawate & Mrs. Jayashree P. Dandawate.

v) Office at shop no. 3, Yashashree Plaza, Sec - 8, Sanpada, Navi Mumbai, registerd in the name of Mrs. Jayashree Pandurang Dandawate.

c) Personal Guarantee of Mr. Pandurang Dandawate, Jayshree Dandawate, Sandeep Dandawate and Tanvi Auti.

Loan carries an interest rate calculated on the 3 months Repo rate of the bank and a spread of 2.94% p.a. (i.e. 8.0%)

Note : 27

Financial risk management

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

Credit Risk

• Trade Receivables

• Other Financial Instruments

Liquidity Risk Market Risk

• Interest Rate Risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. Management is responsible for developing and monitoring the Company''s risk management policies, under the guidance of Audit Committee.

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 Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligation.

The Company''s Audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit committee.

ii. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments

(a) Trade Receivables

The Company follows a ''simplified approach'' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates irrecoverable amounts based on the ageing of the receivable balances and historical experience. Receivable balances and deposit balances are monitored on a monthly basis with the result that the Company''s exposure to bad debts is not considered to be material.

The Company has no significant concentrations of credit risk. It has policies in place to ensure that sale transactions are made to customers with an appropriate credit history.

The Company does not have any credit risk outside India.

Financial instruments - Fair values and risk management (continued)

iii. Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain optimum level of liquidity at all times, to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including bilateral loans, debt etc. at an optimised cost. Working capital requirements are adequately addressed by internally generated and borrowed funds.

The following tables detail the Company''s remaining contractual maturity for its financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are at floating rate, the undiscounted amount is derived from interest rate curves at the end of the reporting period.

iv. Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. Financial instruments affected by market risk include loans and borrowings, deposits, investments, and derivative financial instruments.

The Company''s activities expose it to a variety of financial risks, including the effects of changes in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments such as foreign exchange contracts to manage its exposures to foreign exchange fluctuations. All such transactions are carried out within the guidelines set by the risk management committee.

The analysis excludes the impact of movements in market variables on the carrying value of post-employment benefit obligations, provisions and on the non financial assets and liabilities.

- Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Majority of borrowings of the Company are at fixed interest rate and are carried at amortised cost. They are therefore not subject to interest rate risks, since neither the carrying amount nor the future cash flows will fluctuate because off a change in market interest rates.

iv. Market Risk

Market Risk is the risk that changes in market prices - such as foreign exchange rates, interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

iv(a). Currency risk:

The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupees ("Rs.”). Company does not have any foreign currency transaction. Accordingly, the Company is not significantly exposed to any foreign currency risk.

iv(b). Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

v(b). Other

The Company does not have any Financial investment/ investment in shares that are subject to market risk. Hence, the market risk will not have any/ material effect on the company with respect to financial investments or investment in shares.

Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings taken and issued at fixed and floating rates exposes the Company to fair value and cash flow interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

xvii) Details of Crypto Currency or Virtual Currency

The Holding Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

xviii) Previous year''s figures have been re-grouped / re-classified wherever necessary, to confirm to current year''s classification

For and on behalf of the Board of Directors For Dhruv Consultancy Services Limited

As per our report of even date

For Mittal & Associates., Tanvi T Auti P. B. Dandavate

^{Chartered Accountants} Managing Director ^Director

Firm Regn No 106456W din 07618878 DIN: 01202414

Hemant R Bohra Isha S Kulkarni

^Partner Snehal L Patil Company Secretary

^MeiTibe^{rship N}°. ¹⁶⁵⁶⁶⁷ Chief Financial Officer M No. A34065

UDIN: 24165667BKEZEE5224

Place: Mumbai Place: Navi Mumbai

Date: 27th May, 2024 Date: 27th May, 2024

---

Mar 31, 2023

Note: 12-e

1) During the FY 2017-18, 96,20,000 shares are issued for consideration other than

cash at par value.

2) During the FY 2022-23, 8,00,000 shares are issued at ^ 63 per share through

preferential allotment

I) Term Loans

A. Term loan includes loan from a bank amounting Rs 462.26 lakhs (March 31, 2022 : Rs 226.26 lakhs) which is secured by a first and exclusive charge as under:

a. The facility to the extent of Rs 170.12 lakhs is covered by 100% guarantee from National credit Guarantee Trustee Company Limited (Ministry of Finance Government of India) and Rs 292.14 lakhs is a Term Loan availed against purchase of equipment.

b. Second charges as Equitable mortgage of Properties and Hypothecation of current assets of the Company including Present and future except specifically charged;

The term loan of Rs 170.12 lakhs carries an interest rate calculated on 3 months Repo rate of the bank plus a spread 4.50%. The term loan is repayable in 36 equal monthly installments plus 12 months Principal Moratorium commencing from the date of disbursement. Further, a loan of Rs 292.14 Lakhs carries an interest rate 8.25%.

II) Vehicle Loans

A. Vehicle loans from NBFC of Rs 92.79 lakhs (from bank as on March 31, 2022 : Rs 3.51 lakhs) carry interest rates ranging from 7.40% - 8.10% p.a. The loans are repayable in 60 monthly installments along with interest. The loans are secured byway of hypothecation of the respective vehicles.

III) Business Loan

A. Business Loan from NBFC of Rs 68.07 Lakhs (March 31, 2022 : Rs 13.68 Lakhs) carry interest rate of 14.50% to 19.30% p.a. The loans are repayable in 36 monthly installments along with Interest. The loans are secured by Personal guarantee of Mr. Pandurang Dandawate, Mrs. Jayashree Dandawate and Mrs. Tanvi Auti, Directors of the Company.

I) Loans repayable on demand

A. Loans repayable on demand include an overdraft facility from a bankamounting Rs 718.92 Lakhs (March 31,2022 : Rs 961.77 Lakhs) which is secured as below:

a. First charge by way of hypothecation of all the current assets, present and future,

of the company.

b. Equitable Mortgage of the following Properties as under:

i. Row house No. 4, Ground Floor Building No. F 20, Vrindavan CHS Ltd., Sec-4, Sanpada, Navi Mumabi, Thane registered in the name of Mr. Pandurang Dandawate

ii. Office No. 501, 5th floor of the building, Pujit plaza Co-operative

premises Society Ltd., Plot No. 67, Sec-11, CBD Belapur, Navi Mumbai

iii. Office No. 507 & 508, 5th floor of the building, Pujit plaza Co-operative premises Society Ltd., Plot No.67, Sec-11, CBD Belapur, Navi Mumbai

iv. Residential Flat No. A-801 & 802, at shreeji Heights, Plot No.1,1A, 1B & 1C, Sec-46A, Nerul, Navi Mumbai, Registered in the name of Mr. Pandurang B. Dandawate & Mrs. Jayashree P. Dandawate.

v. Office at shop no. 3, Yashashree Plaza, Sec - 8, Sanpada, Navi Mumbai, registered in the name of Mrs. Jayashree Pandurang Dandawate.

vi. Personal Guarantee of Mr. Pandurang Dandawate, Jayshree

Dandawate, Sandeep Dandawate and Tanvi Auti.

Loan carries an interest rate calculated on the 3 months Repo rate of the bank and a spread of 3% p.a. (i.e. 9.5%)

(The Trade Payables ageing schedule is presented under note no. 17A of the Financial Statements)

Details of dues to Micro Small and Medium Enterprises

In absence of complete and updated data relating to trade creditors registered under the MSME Act, 2006 the disclosure relating to MSME creditors, required under the law, has not been possible. The Company has not received any legal notice or Show Cause Notice during the year under the MSME Act, 2006 and none of the creditors has initiated any legal suit against the company during the reporting period.

Note: 27

Financial instruments - Fair values and risk management

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values:

Note: 28

Financial risk management

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

1. Credit risk

2. Liquidity risk

3. Market risk

i. Risk management framework

The Company''s board of directors is primarily responsible to develop and monitor Company''s Risk Management framework. The Company has a risk management policy in place.

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 Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

ii. 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.

The Company follows a ‘simplified approach'' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates irrecoverable amounts based on the ageing of the receivable balances and historical experience. Receivable balances and deposit balances are monitored on a monthly basis with the result that the Company''s exposure to bad debts is not considered to be material.

The Company has no significant concentrations of credit risk. It has policies in place to ensure that sale transactions are made to customers with an appropriate credit history.

The Company does not have any credit risk outside India.

Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.

Cash equivalents & Other bank balances/deposits

The Company held cash equivalents and other bank balances/deposits of Rs. 708.62 Lakhs at March 31, 2023 (March 31, 2022 : Rs. 424.29 Lakhs). The cash equivalents and other bank balances/deposits are held with banks with good credit ratings.

Loans and advances

The loans and advances (including security deposits) have been to parties which are generally regular in making payments and hence the Company does not expect significant impairment losses on its current profile of outstanding advances.

iii. Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

iv. Market risk

Market Risk is the risk that changes in market prices - such as foreign exchange rates, interest rates will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

a. Currency risk

The risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The functional currency of the Company is Indian Rupees ("Rs."). Company does not have any foreign currency transaction. Accordingly, the Company is not significantly exposed to any foreign currency risk.

b. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.

c. Other

The Company does not have any Financial investment/ investment in shares that are subject to market risk. Hence, the market risk will not have any/ material effect on the company with respect to financial investments or investment in shares Exposure to interest rate risk

The Company''s interest rate risk arises from borrowings. Borrowings taken and issued at fixed and floating rates exposes the Company to fair value and cash flow interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit before tax by the amounts shown below. This analysis assumes that all other variables remain constant.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

v. Capital management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Note : 31 Contingent Liabilities		(^ in lakh)
	As at	As at March 31,2022
Particulars	March 31, 2023
Claims made against the Company not acknowledged as debts -		-
Bank guarantees	1,884.00	1,746.01
Corporate guarantee given on behalf of Indian subsidiaries Companies towards borrowings	-	-
Total	1,884.00	1,746.01
Note: 32 Auditor''s Remuneration		(^ in lakh)
Particulars	As at March 31, 2023	As at March 31,2022
Audit fees	3.00	3.00
Limited review fees	3.00	2.00
Other services (fees for certification)	0.66	1.32
Total	6.66	6.32

Note: 33

Disclosures pursuant to Indian Accounting standard (Ind AS) 115, Revenue from Contracts with Customers

(a) The Company believes that the information provided vide Note 26 (Revenue from Operations) is sufficient to meet the disclosure requirements with respect to disaggregation of revenue under Ind AS 115, Revenue from Contracts with Customers.

(b) Reconciliation of the amount for revenue recognized in the Statement of Profit and Loss with the contracted price:

Note: Increase in net contract balances is primarily due to higher revenue recognition as compared to progress bills raised during the year.

iii. Revenue recognised during the year from opening balance of Contract liabilities amounts to Rs. 221.00 Lakhs

(d) Remaining performance obligations

In case of revenue from Road repair and maintenance, the Company applies the practical expedient in paragraph 121 of Ind AS 115 and does not disclose information about remaining performance obligations where the Company has a right to consideration from customer in an amount that corresponds directly with the value to the customer of the Company''s performance completed to date. Accordingly, the Company recognises revenue by an amount to which the Company has a right to invoice.

Remaining performance obligations are subject to variability due to several factors such as changes in scope of contracts, periodic revalidations of the estimates, economic factors (changes in currency rates, tax laws etc). The aggregate value of transaction price allocated to remaining performance obligations is Rs 26,879 lakhs out of which 30% is expected to be recognised as revenue in the next year and the balance thereafter

Note: 35

Employee Benefits Defined Contribution Plan

The Company makes provident fund, Employees State Insurance and Maharashtra Labour Welfare Fund contributions for eligible employees. Under the schemes, the Company is required to contribute a specified percentage / fixed amount of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the respective fund set up by the government authority.

Defined Benefit Plan - Gratuity

The Company has defined a benefit plan for gratuity which is unfunded. The scheme provides payment to vested employees at retirement, death or on resignation/termination of employment of an amount equivalent to 15 days salary for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

(a) As per Profit and loss account Rs. 14.62 lakhs comprising of Rs. 34.30 lakhs of FY 2022-23 and less Rs. 19.67 lakhs of FY 2021-22 excess provision reversed

(b) As per Profit and loss account Rs. 79.86 lakhs comprising Rs. 37.99 lakh for FY2021-22 and Rs. 41.87 lakh for FY 2020-21

Notes:

1. Discount rate

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligation.

2. Salary escalation rate

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

3. Assumptions regarding future mortality experience are set in accordance with the statistics published by the Life Insurance Corporation of India.

The above sensitivity analyses have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the reporting date. In practice, generally it does not occur. When we change one variable, it affects others. In calculating the sensitivity, the project unit credit method at the end of the reporting period has been applied.

The Company makes payment of liabilities from its cash and cash equivalent balances whenever liability arises.

Note: 38

Additional regulatory information

i) Title deeds of Immovable Property not held in name of the Company

The title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company.

ii) Revaluation of Property, Plant and Equipment

The Company has not revalued its Property, Plant and Equipment during the year.

iii) Details of loans granted to promoters, directors, KMPs and the related parties

The Company has not granted any Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties during the year.

iv) Capital-Work-in Progress (CWIP)

There is no expenditure incurred against Capital-Work-in Progress (CWIP) during the year.

v) Intangible assets under development:

There is no expenditure incurred against Intangible assets under development during the year.

vi) Details of Benami Property held

There are no Benami properties held by the company and no cases of Benami properties have been initiated or pending against the name of the company.

viii) Utilisation of Borrowings

The company has used the borrowings taken from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

ix) Wilfiul Defaulter

The company is not declared wilful defaulter by any bank or financial Institution or other lender.

x) Relationship with Struck off Companies

There are no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xi) Registration of charges or satisfaction with Registrar of Companies

The company has promptly created and satisfied the charges with Registrar of

Companies, against the credit facilities availed from the financial institutions, except in following cases:

The management has taken requisite steps to probe into this matter. However, non-creation or non-satisfaction of charges, being of relatively insignificant value, has not materially affected the Financial Statements nor the interest of financial institutions have been adversely affected.

xii) Compliance with number of layers of companies

There are no layer of companies hold or created by the company during the year.

xiii) Compliance with approved Scheme(s) of Arrangements

The company has not entered into any scheme of arrangements during the year.

xiv) Utilisation of Borrowed funds and share premium:

A) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities.

B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities.

xv) Undisclosed income

The Company does not have any transaction that are not recorded in the books of accounts but it has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

xvii) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

---

Mar 31, 2018

Note: 1

1. During the year FY 2017-18, allotted 96,20,000 Equity shares as fully paid-up by way of Bonus Shares

2. For the period of five years immediately preceding the date as at which Balance Sheet is prepared the Company has not:

(i) Allotted any shares in pursuance to contract(s) without payment being received in Cash.

(ii) Bought back any shares