Notes to Accounts of Kaushalya Infrastructure Development Corpn.Ltd.

Mar 31, 2025

3.09 Provisions, Contingent liabilities and
Contingent assets

3.09.01 Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of past event, it is probable that
the Company will be required to settle the
obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognised as a provision is the
best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of
those cash flows (when the effect of the time
value of money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain
that reimbursement will be received and the
amount of the receivable can be measured
reliable.

3.09.02 Contingent liabilities and assets

Contingent liability is a possible obligation
that arises from past events and the existence
of which will be confirmed only by the
occurrence or non-occurrence of one or more

uncertain future events not wholly within
the control of the Company, or is a present
obligation that arises from past events but is
not recognised because either it is not probable
that an outflow of resources embodying
economic benefits will be required to settle the
obligation, or a reliable estimate of the amount
of the obligation cannot be made. Contingent
liabilities are disclosed and not recognised.
Contingent assets are neither recognised nor
disclosed.

3.10 Investments in subsidiaries, joint ventures
and associates

Investments in subsidiaries, joint ventures
and associates are initially recognised and
subsequently measured at cost less impairment
loss, if any.

3.11 Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a
party to the contractual provisions of the
instruments.

Financial assets and financial liabilities are
initially measured at fair value. Transactions
costs that are directly attributable to the
acquisition or issue of financial assets and
financial liabilities (other than financial
assets and financial liabilities at fair value
through profit and loss) are added to or
deducted from the fair value of the financial
assets or financial liabilities, as appropriate,
on initial recognition. Transactions costs
directly attributable to the acquisition of
financial assets or financial liabilities at fair
value through profit and loss are recognised
immediately in profit and loss.

3.12 Financial assets

All purchases or sales of financial assets which
require delivery of assets within the time frame
established by regulation or convention in the
market place are recognised and derecognised
on a trade date basis. All recognised financial
assets are subsequently measured in their
entirety at either amortised cost or fair value,

depending on the classification of the financial
assets.

3.12.01 Classification of financial assets

Debt instruments that meet the following
conditions are subsequently measured at
amortised cost (except for debt instruments
that are designated as at fair value through
profit and loss on initial recognition):

• the asset is held within a business model
whose objective is to hold assets in
order to collect contractual cash flows;
and

• the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal outstanding.

Debt instruments that meet the following
conditions are subsequently measured at
fair value through other comprehensive
income (except for debt instruments that are
designated as at fair value through profit and
loss on initial recognition):

• the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and
selling financial assets; and

• the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal outstanding.

Interest income is recognised in profit and loss
for Fair value through other comprehensive
inome (FVTOCI) debt instruments. For the
purpose of recognising foreign exchange
gains and losses, FVTOCI debt instruments
are treated as financial assets measured at
amortised cost. Thus exchange differences
on the amortised cost are recognised in
profit and loss and other changes in the fair
value of FVTOCI financial assets in other
comprehensive income and accumulated under
the heading of ‘Reserve for debt instruments
through other comprehensive income’. When

the investment is disposed of, the cumulative
gain or loss previously accumulated in this
reserve is reclassified to profit and loss.

All other financial assets are subsequently
measured at fair value.

3.12.02 Effective interest method

The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash receipts (including all fees and
points paid or received that form an integral
part of the effective interest rate, transaction
costs and other premium or discounts) through
the expected life of the debt instrument, or,
where appropriate, a shorter period to the net
carrying amount on initial recognition.

Income is recognised on effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income
is recognised in Statement of Profit and Loss
and is included in the “Other income” line
item.

3.12.03 Investments in equity instruments at
FVTOCI

On initial recognition, the Company make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in the fair value of investments in
equity instruments (other than investments
held for trading) in other comprehensive
income. These instruments are initially
measured at fair value plus transaction costs.
Subsequently they are measured at fair value
with gains and losses arising from changes in
fair value recognised in other comprehensive
income and accumulated in the ‘Reserve
for Equity through other comprehensive
income’. On disposal of these investments the
cumulative gain or loss is nor reclassified to
profit and loss.

Dividends on these investments in equity
instruments are recognised in profit and

loss when the Company’s right to receive
dividends is established, it is probable that
the economic benefits associated with the
dividend will flow to the entity, the dividend
does not represent a recovery of part of cost of
the investment and the amount of dividend can
be measured reliably. Dividends are included
as part of ‘Other income’ in the Statement of
Profit and Loss.

3.12.04 Financial assets at fair value through profit
and loss (FVTPL)

Financial assets which meets the criteria of
financial assets held for trading are designated
as ‘Financial Assets at FVTPL’. The Company
has derivatives that are not designated and
effective as a hedge instrument which are
designated as ‘Financial Assets at FVTPL’.
Financial assets at FVTPL are measured at
FVTPL are measured at fair value at the end
of each reporting period, with any gains or
losses arising on remeasurement recognised in
Statement Profit and Loss.

3.12.05 Impairment of financial assets

The Company applies the expected credit
loss model for recognising impairment
loss on trade receivables, other contractual
rights to receive cash or other financial
instruments. Expected credit losses are the
weighted average of credit losses with the
respective risks of default occurring as the
weights. Credit loss is the difference between
all contractual cash flows that are due to the
Company in accordance with the contract and
all the cash flows that the Company expects
to receive, discounted at the original effective
interest rate. The Company estimates cash
flows by considering all contractual terms of
the financial instrument.

The Company measures the loss allowance for
a financial instrument at an amount equal to
the lifetime expected credit losses if the credit
risks on that financial instrument has increased
significantly since initial recognition. If
the credit risk on financial instrument has
not increased significantly since initial

recognition, the Company measures the loss
allowance for that financial instrument at an
amount equal to 12 month expected credit
losses.

If the Company measures the loss allowance
for a financial instrument at lifetime expected
credit loss model in the previous period, but
determines at the end of a reporting period that
the credit risks has not increased significantly
since initial recognition due to improvement
in credit quality as compared to the previous
period, the Company again measures the loss
allowance based on 12 month expected credit
losses.

For trade receivables or any contractual right
to receive cash or another financial asset
that results from transactions that are within
the scope of Ind AS 11 and Ind AS 18, the
Company always measures loss allowance at
an equal to life time expected credit losses. For
the purpose of measuring lifetime expected
credit loss allowance for trade receivables
the Company has used practical expedient as
permitted under Ind AS 109. The expected
credit loss allowance is computed based on
a provision matrix which takes into account
historical credit loss experience and adjusted
for forward looking information.

3.12.06 Derecognition of financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flow
from the asset expire, or when it transfers
the financial asset and substantially all the
risks and rewards of ownership of the asset
to another party. If the Company neither
transfers nor retains substantially all the risks
and rewards of ownership and continues to
control the transferred asset, the Company
recognises its retained interest in the asset and
an associated liability for amounts it may have
to pay. If the Company retains substantially
all the risks and rewards of ownership of
a transferred financial asset, the Company
continues to recognise the financial asset and
also recognises a collateralised borrowing for
the proceeds received.

On derecognition of financial asset in its
entirety, the difference between the asset’s
carrying amounts and the sum of the
consideration received and receivable and
the cumulative gain or loss that had been
recognised in other comprehensive income
and accumulated in equity is recognised in
profit and loss if such gain or loss would have
otherwise been recognised in Statement of
Profit and Loss on disposal of that financial
asset.

3.13 Financial liabilities and equity instruments

3.13.01 Classification as debt or equity

Debt and equity instruments issued by a
Company entity are classified as either
financial liabilities or as equity in accordance
with the substance of the contractual
arrangements and the definition of a financial
liability and an equity instrument.

An equity instrument is any contract that
evidences a residual interest in the assets of
an entity after deducting all of its liabilities.
Equity instruments issued by a Company
entity are recognised at the proceeds received,
net of direct issue costs.

Repurchases of the Company’s own equity
instruments is recognised and deducted
directly in equity. No gain or loss is recognised
in profit and loss on the purchase, sale, issue
or cancellation of the Company’s own equity
instruments.

3.13.02 Financial liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at FVTPL,
loans and borrowings and payables. All
financial liabilities are recognised initially
at fair value and, in the case of loans and
borrowings and payables, net of directly
attributable transaction costs.

The Company’s financial liabilities include
trade and other payables, loans and borrowings

including bank overdrafts, and derivative
financial instruments.

Financial liabilities at FVTPL are stated at
fair value, with any gains or losses arising
on remeasurement recognised in profit and
loss. The net gain or loss recognised in profit
and loss incorporates any interest paid on the
financial liability and is included in the ‘Other
income’ line item.

3.13.03 Financial liabilities subsequently measured
at amortised cost

Financial liabilities that are not held-for-
trading and are not designated as at FVTPL
are measured at amortised cost at the end of
subsequent accounting periods. The carrying
amounts of financial liabilities that are
subsequently measured at amortised cost are
determined based on the effective interest
method. Interest expense that is not capitalised
as part of costs of an asset is included in the
‘Finance costs’ line item.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash payments (including all fees and
points paid or received that form an integral
part of the effective interest rate, transaction
costs and other premiums or discounts)
through the expected life of the financial
liability, or (where appropriate) a shorter
period, to the net carrying amount on initial
recognition.

3.13.04 Derecognition of financial liabilities

The Company derecognises financial
liabilities when, and only when, the
Company’s obligations are discharged,
cancelled or have expired. An exchange
between with a lender of debt instruments with
substantially different terms is accounted for

as an extinguishment of the original financial
liability and the recognition of a new financial
liability. Similarly, a substantial modification
of the terms of an existing financial liability
(whether or not attributable to the financial
difficulty of the debtor) is accounted for as
an extinguishment of the original financial
liability and the recognition of a new financial
liability. The difference between the carrying
amount of the financial liability derecognised
and the consideration paid and payable is
recognised in Statement Profit and Loss.

3.14 Joint Venture Operations

In respect of contracts executed in Integrated
Joint Ventures under profit sharing
arrangement (assessed as AOP under Income
tax laws), the services rendered to the Joint
Ventures are accounted as income on accrual
basis.

The profit / loss is accounted for, as and when
it is determined by the Joint Venture and the
net investment in the Joint Venture is reflected
as investments, loans and advances or current
liabilities.

3.15 Operating Cycle

Based on the nature of products / activities of
the Company and the normal time between
acquisition of assets and their realisation in
cash or cash equivalents, the Company has
determined its operating cycle as 36 months
for real estate & infrastructure projects and
12 months for others for the purpose of
classification of its assets and liabilities as
current and non-current.

3.16 Rounding Off

The financial statements have been prepared in
Indian Rupees (Rs) rounded off to two nearest
decimal places in lakhs unless otherwise
stated.

32.03 Segment Reporting

The company is engaged in business of construction contracts of Infrastructure and Hotel. In accordance with Ind AS-108
“Operating Segments” the company has presented segment information on the basis of its combined financial statements which
form part of this report.

In the Company’s operations within India there is no significant difference in the economic conditions prevailing in the various
states of India. Further, the company does not have any revenue from foreign. Hence disclosures on geographical segment are not
applicable.

33.01 Capital management

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt
(borrowings as detailed in notes 13 offset by cash and bank balances) and the total equity of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company includes within net debt, long term-term borrowings, short-term borrowings, less cash
and short-term deposits.

33.02 Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables.
The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive
directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use
of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles
on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments.
The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

The corporate treasury management reports on quarterly basis to the board of directors that monitors risks and policies implemented
to mitigate risk exposures.

33.02.01 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk and interest
rate risk.

33.02.02 Credit risk management

Credit risks refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration
risks. The Company’s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk.
Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, finance receivables,
loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material
concentrations of credit risks. The Company does not engage in speculative treasury activity but seeks to manage risk and optimise
interest and commodity pricing through proven financial instruments.

The credit risk on bank balances and derivative financial instruments is limited because the counterparties are banks with high
credit ratings.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. On going credit
evaluation is performed on the financial condition of accounts receivable.

The credit risk on bank balances is limited because the counterparties are banks with high credit ratings.

33.02.03 Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management
is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the maturity profile of Company’s non-derivative financial liabilities with agreed repayment period.
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.

37. Reclassification of Loans

During the year ended 31st March 2025, the Company has reviewed the classification of certain loans disclosed under non-current
assets in the previous year. These loans, although earlier presented as non-current, are repayable on demand as per the terms of the
loan agreements. Accordingly, based on the criteria laid down under Ind AS 1 - Presentation of Financial Statements, the Company
has reclassified such loans under current assets in the financial statements as at 31 March 2025.

The following loans have been reclassified as current assets: KDC Nirman Limited: ?5.52 lakhs

The corresponding figures as at 31st March 2024 have also been regrouped wherever necessary for comparability. The change in
classification has no impact on the profit or loss of the Company for the current or prior periods.

38. Reclassification of Audit Fees Payable

During the year ended 31st March, 2025, the Company has reviewed the classification of Audit Fees , which was earlier misclassified
as Trade Payable . Accordingly, based on the criteria laid down under Ind AS 1 - Presentation of Financial Statements, the Company
has reclassified such Audit Fees as Audit Fee Payable under the head Other Current Liabilities in the financial statements as at 31st
March, 2025.

The following Audit fees Payable have been reclassified as Other Current Liabilities:

Audit Fees-(KASG & Co.): ?3.24 Lakhs

Audit Fees Payable-(Barkha & Associates): ?0.27 Lakhs

The corresponding figures as at 31st March, 2024 have also been regrouped wherever necessary for comparability. The change in
classification has no impact on the profit or loss of the Company for the current or prior periods.

39. Reclassification of Rent Payable

During the year ended 31st March, 2025, the Company has reviewed the classification of Rent Payable, which was earlier misclassified
as Trade Payable . Accordingly, based on the criteria laid down under Ind AS 1 - Presentation of Financial Statements, the Company
has reclassified such Audit Fees as Audit Fee Payable under the head Other Current Liabilities in the financial statements as at 31st
March, 2025.

The following Rent Payable have been reclassified as Other Current Liabilities: Rent payable to Neeru Mehra: ?1.90 Lakhs

The corresponding figures as at 31st March, 2024 have also been regrouped wherever necessary for comparability. The change in
classification has no impact on the profit or loss of the Company for the current or prior periods.

1. Current ratio = Current assets Current liabilities

2. Debt-Equity ratio = Long term borrowings Shareholders funds

3. Debt service coverage ratio = Earnings available for debt service Debt service

Where, Earnings for debt service = Net profit before tax Non cash operating expenses like depreciation Interest Other adjustments
like loss on sale of fixed assets Debt service = Interest & Lease payments Principal repayments

4. Return on Equity ratio = Net profit shareholders funds

5. Trade receivables turnover ratio = Net credit sales average receivables

6. Trade payables turnover ratio = Net credit purchases average payables

7. Net capital turnover ratio = Total turnover Average working capital

8. Net profit ratio = Net profit Total revenue

9. Return on capital employed = EBIT (shareholders funds Long term borrowings)

10. Return on Investment = Net profit (shareholders funds Long term borrowings)

41. Other statutory information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ii) The Company do not have any transactions with struck off companies.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in crypto currency or any form of virtual currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

(Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other
relevant provisions of the Income Tax Act, 1961.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government
authority.

42. Approval of financial statements

The financial statements were approved for issue by the board of directors on 30.05.2025.

As per terms of our report attached. For and on behalf of the Board of Directors

For KASG & CO.

Chartered Accountants Mahesh Mehra Tarak Nath Mishra Sanjay Lal Gupta

Firm Regn. No. 002228C Whole-time Director Whole-time Director Whole-time Director

Roshan Kumar Bajaj & CFO & Company Secretary

Partner DIN:00086683 DIN : 08845853 DIN : 08850306

Membership No. 068523

Date : 30th May, 2025
Place : Kolkata

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Mar 31, 2024

3.09 Provisions, Contingent liabilities and
Contingent assets

3.09.01 Provisions

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of past event, it is probable that
the Company will be required to settle the
obligation, and a reliable estimate can be made
of the amount of the obligation.

The amount recognised as a provision is the

best estimate of the consideration required to
settle the present obligation at the end of the
reporting period, taking into account the risks
and uncertainties surrounding the obligation.
When a provision is measured using the cash
flows estimated to settle the present obligation,
its carrying amount is the present value of those
cash flows (when the effect of the time value of
money is material).

When some or all of the economic benefits
required to settle a provision are expected to
be recovered from a third party, a receivable is
recognised as an asset if it is virtually certain that
reimbursement will be received and the amount
of the receivable can be measured reliable.

3.09.02 Contingent liabilities and assets

Contingent liability is a possible obligation that
arises from past events and the existence of
which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain
future events not wholly within the control of
the Company, or is a present obligation that
arises from past events but is not recognised
because either it is not probable that an outflow
of resources embodying economic benefits will
be required to settle the obligation, or a reliable
estimate of the amount of the obligation cannot
be made. Contingent liabilities are disclosed and
not recognised. Contingent assets are neither
recognised nor disclosed.

3.10 Investments in subsidiaries, joint ventures
and associates

Investments in subsidiaries, joint ventures
and associates are initially recognised and
subsequently measured at cost less impairment
loss, if any.

3.11 Financial instruments

Financial assets and financial liabilities are
recognised when the Company becomes a party

to the contractual provisions of the instruments.

Financial assets and financial liabilities are
initially measured at fair value. Transactions
costs that are directly attributable to the
acquisition or issue of financial assets and
financial liabilities (other than financial assets
and financial liabilities at fair value through
profit and loss) are added to or deducted from
the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transactions costs directly attributable to the
acquisition of financial assets or financial
liabilities at fair value through profit and loss are
recognised immediately in profit and loss.

3.12 Financial assets

All purchases or sales of financial assets which
require delivery of assets within the time frame
established by regulation or convention in the
market place are recognised and derecognised
on a trade date basis. All recognised financial
assets are subsequently measured in their
entirety at either amortised cost or fair value,
depending on the classification of the financial
assets.

3.12.01 Classification of financial assets

Debt instruments that meet the following
conditions are subsequently measured at
amortised cost (except for debt instruments that
are designated as at fair value through profit and
loss on initial recognition):

• the asset is held within a business model
whose objective is to hold assets in order
to collect contractual cash flows; and

• the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal outstanding.

Debt instruments that meet the following
conditions are subsequently measured at fair

value through other comprehensive income
(except for debt instruments that are designated
as at fair value through profit and loss on initial
recognition):

• the asset is held within a business model
whose objective is achieved both by
collecting contractual cash flows and
selling financial assets; and

• the contractual terms of the instrument
give rise on specified dates to cash flows
that are solely payments of principal and
interest on the principal outstanding.

Interest income is recognised in profit and loss
for Fair value through other comprehensive
inome (FVTOCI) debt instruments. For the
purpose of recognising foreign exchange gains
and losses, FVTOCI debt instruments are treated
as financial assets measured at amortised cost.
Thus exchange differences on the amortised
cost are recognised in profit and loss and other
changes in the fair value of FVTOCI financial
assets in other comprehensive income and
accumulated under the heading of ‘Reserve for
debt instruments through other comprehensive
income’. When the investment is disposed of, the
cumulative gain or loss previously accumulated
in this reserve is reclassified to profit and loss.
All other financial assets are subsequently
measured at fair value.

3.12.02 Effective interest method

The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income
over the relevant period. The effective interest
rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premium or discounts) through the expected life

of the debt instrument, or, where appropriate,
a shorter period to the net carrying amount on
initial recognition.

Income is recognised on effective interest basis
for debt instruments other than those financial
assets classified as at FVTPL. Interest income is
recognised in Statement of Profit and Loss and is
included in the “Other income” line item.

3.12.03 Investments in equity instruments at
FVTOCI

On initial recognition, the Company make
an irrevocable election (on an instrument-by¬
instrument basis) to present the subsequent
changes in the fair value of investments in equity
instruments (other than investments held for
trading) in other comprehensive income. These
instruments are initially measured at fair value
plus transaction costs. Subsequently they are
measured at fair value with gains and losses
arising from changes in fair value recognised in
other comprehensive income and accumulated
in the ‘Reserve for Equity through other
comprehensive income’. On disposal of these
investments the cumulative gain or loss is nor
reclassified to profit and loss.

Dividends on these investments in equity
instruments are recognised in profit and loss
when the Company’s right to receive dividends
is established, it is probable that the economic
benefits associated with the dividend will flow
to the entity, the dividend does not represent a
recovery of part of cost of the investment and
the amount of dividend can be measured reliably.
Dividends are included as part of ‘Other income’
in the Statement of Profit and Loss.

3.12.04 Financial assets at fair value through profit
and loss (FVTPL)

Financial assets which meets the criteria of
financial assets held for trading are designated as
‘Financial Assets at FVTPL’. The Company has

derivatives that are not designated and effective
as a hedge instrument which are designated as
‘Financial Assets at FVTPL’. Financial assets at
FVTPL are measured at FVTPL are measured at
fair value at the end of each reporting period, with
any gains or losses arising on remeasurement
recognised in Statement Profit and Loss.

3.12.05 Impairment of financial assets

The Company applies the expected credit loss
model for recognising impairment loss on trade
receivables, other contractual rights to receive
cash or other financial instruments. Expected
credit losses are the weighted average of credit
losses with the respective risks of default
occurring as the weights. Credit loss is the
difference between all contractual cash flows that
are due to the Company in accordance with the
contract and all the cash flows that the Company
expects to receive, discounted at the original
effective interest rate. The Company estimates
cash flows by considering all contractual terms
of the financial instrument.

The Company measures the loss allowance
for a financial instrument at an amount equal
to the lifetime expected credit losses if the
credit risks on that financial instrument has
increased significantly since initial recognition.
If the credit risk on financial instrument has not
increased significantly since initial recognition,
the Company measures the loss allowance for
that financial instrument at an amount equal to
12 month expected credit losses.

If the Company measures the loss allowance for
a financial instrument at lifetime expected credit
loss model in the previous period, but determines
at the end of a reporting period that the credit
risks has not increased significantly since initial
recognition due to improvement in credit quality
as compared to the previous period, the Company
again measures the loss allowance based on 12

month expected credit losses.

For trade receivables or any contractual right
to receive cash or another financial asset that
results from transactions that are within the
scope of Ind AS 11 and Ind AS 18, the Company
always measures loss allowance at an equal to
life time expected credit losses. For the purpose
of measuring lifetime expected credit loss
allowance for trade receivables the Company
has used practical expedient as permitted under
Ind AS 109. The expected credit loss allowance
is computed based on a provision matrix
which takes into account historical credit loss
experience and adjusted for forward looking
information.

3.12.06 Derecognition of financial assets

The Company derecognises a financial asset
when the contractual rights to the cash flow
from the asset expire, or when it transfers the
financial asset and substantially all the risks and
rewards of ownership of the asset to another
party. If the Company neither transfers nor
retains substantially all the risks and rewards
of ownership and continues to control the
transferred asset, the Company recognises its
retained interest in the asset and an associated
liability for amounts it may have to pay. If the
Company retains substantially all the risks and
rewards of ownership of a transferred financial
asset, the Company continues to recognise the
financial asset and also recognises a collateralised
borrowing for the proceeds received.

On derecognition of financial asset in its entirety,
the difference between the asset’s carrying
amounts and the sum of the consideration
received and receivable and the cumulative
gain or loss that had been recognised in other
comprehensive income and accumulated in
equity is recognised in profit and loss if such gain
or loss would have otherwise been recognised in

Statement of Profit and Loss on disposal of that
financial asset.

3.13 Financial liabilities and equity instruments

3.13.01 Classification as debt or equity

Debt and equity instruments issued by a
Company entity are classified as either financial
liabilities or as equity in accordance with the
substance of the contractual arrangements and
the definition of a financial liability and an equity
instrument.

An equity instrument is any contract that
evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity
instruments issued by a Company entity are
recognised at the proceeds received, net of direct
issue costs.

Repurchases of the Company’s own equity
instruments is recognised and deducted directly
in equity. No gain or loss is recognised in
profit and loss on the purchase, sale, issue or
cancellation of the Company’s own equity
instruments.

3.13.02 Financial liabilities

Financial liabilities are classified, at initial
recognition, as financial liabilities at FVTPL,
loans and borrowings and payables. All financial
liabilities are recognised initially at fair value
and, in the case of loans and borrowings and
payables, net of directly attributable transaction
costs.

The Company’s financial liabilities include
trade and other payables, loans and borrowings
including bank overdrafts, and derivative
financial instruments.

Financial liabilities at FVTPL are stated at

fair value, with any gains or losses arising on
remeasurement recognised in profit and loss.
The net gain or loss recognised in profit and loss
incorporates any interest paid on the financial
liability and is included in the ‘Other income’
line item.

3.13.03 Financial liabilities subsequently measured at
amortised cost

Financial liabilities that are not held-for-trading
and are not designated as at FVTPL are measured
at amortised cost at the end of subsequent
accounting periods. The carrying amounts
of financial liabilities that are subsequently
measured at amortised cost are determined based
on the effective interest method. Interest expense
that is not capitalised as part of costs of an asset
is included in the ‘Finance costs’ line item.

The effective interest method is a method of
calculating the amortised cost of a financial
liability and of allocating interest expense over
the relevant period. The effective interest rate is
the rate that exactly discounts estimated future
cash payments (including all fees and points
paid or received that form an integral part of the
effective interest rate, transaction costs and other
premiums or discounts) through the expected life
of the financial liability, or (where appropriate)
a shorter period, to the net carrying amount on
initial recognition.

3.13.04 Derecognition of financial liabilities

The Company derecognises financial liabilities
when, and only when, the Company’s obligations
are discharged, cancelled or have expired.
An exchange between with a lender of debt
instruments with substantially different terms
is accounted for as an extinguishment of the

original financial liability and the recognition of
a new financial liability. Similarly, a substantial
modification of the terms of an existing financial
liability (whether or not attributable to the
financial difficulty of the debtor) is accounted
for as an extinguishment of the original financial
liability and the recognition of a new financial
liability. The difference between the carrying
amount of the financial liability derecognised
and the consideration paid and payable is
recognised in Statement Profit and Loss.

3.14 Joint Venture Operations

In respect of contracts executed in Integrated
Joint Ventures under profit sharing arrangement
(assessed as AOP under Income tax laws),
the services rendered to the Joint Ventures are
accounted as income on accrual basis.

The profit / loss is accounted for, as and when

it is determined by the Joint Venture and the
net investment in the Joint Venture is reflected
as investments, loans and advances or current
liabilities.

3.15 Operating Cycle

Based on the nature of products / activities of
the Company and the normal time between
acquisition of assets and their realisation in cash
or cash equivalents, the Company has determined
its operating cycle as 36 months for real estate &
infrastructure projects and 12 months for others
for the purpose of classification of its assets and
liabilities as current and non-current.

3.16 Rounding Off

The financial statements have been prepared in
Indian Rupees (Rs) rounded off to two nearest
decimal places in lakhs unless otherwise stated.

33.03 Segment Reporting

The company is engaged in business of construction contracts of Infrastructure and Hotel. In accordance with Ind AS-108
“Operating Segments” the company has presented segment information on the basis of its consolidated financial statements which
form part of this report.

In the Company’s operations within India there is no significant difference in the economic conditions prevailing in the various
states of India. Further, the company does not have any revenue from foreign. Hence disclosures on geographical segment are not
applicable.

34.01 Capital management

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt
(borrowings as detailed in notes 13 offset by cash and bank balances) and the total equity of the Company.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements
of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders,
return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided
by total capital plus net debt. The Company includes within net debt, long term-term borrowings, short-term borrowings, less cash
and short-term deposits.

34.02 Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables.
The Company’s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive
directly from its operations. The Company is exposed to market risk, credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use
of financial derivatives is governed by the Company’s policies approved by the board of directors, which provide written principles
on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments.
The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.
The corporate treasury management reports on quarterly basis to the board of directors that monitors risks and policies implemented
to mitigate risk exposures.

34.02.01 Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market
prices. The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and
interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk and interest
rate risk.

34.02.02 Credit risk management

Credit risks refers to risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.
Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness as well as concentration
risks. The Company’s Board approved financial risk policies comprise liquidity, currency, interest rate and counterparty risk.
Financial instruments that are subject to concentrations of credit risk, principally consist of trade receivables, finance receivables,
loans and advances and derivative financial instruments. None of the financial instruments of the Company result in material
concentrations of credit risks. The Company does not engage in speculative treasury activity but seeks to manage risk and optimise
interest and commodity pricing through proven financial instruments.

The credit risk on bank balances and derivative financial instruments is limited because the counterparties are banks with high
credit ratings.

Trade receivables consist of a large number of customers, spread across diverse industries and geographical areas. On going credit
evaluation is performed on the financial condition of accounts receivable.

The credit risk on bank balances is limited because the counterparties are banks with high credit ratings.

34.02.03 Liquidity risk management

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity
risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital lines from various banks. The Company manages liquidity
risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Liquidity and interest risk tables

The following tables detail the maturity profile of Company’s non-derivative financial liabilities with agreed repayment period.
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.

Fair Value hierarchy

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or

unobservable and consists of the following three levels:

• Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 — Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part
using a valuation model based on assumptions that are neither supported by prices from observable current market transactions
in the same instrument nor are they based on available market data.

39. Other statutory information

(i) The Company do not have any Benami property, where any proceeding has been initiated or pending against the Company for
holding any Benami property.

(ii) The Company do not have any transactions with struck off companies.

(iii) The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in crypto currency or any form of virtual currency during the financial year.

(v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding that the Intermediary shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Company (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the Company shall:

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the Funding Party (Ultimate Beneficiaries); or

b. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any
other relevant provisions of the Income Tax Act, 1961.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government

authority.

40. Approval of financial statements

The financial statements were approved for issue by the board of directors on 30th May, 2024.

As per terms of our report attached. For and on behalf of the Board of Directors

For KASG & CO.

Firm Regn. No. 002228C Mahesh Mehra Tarak Nath Mishra Sanjay Lal Gupta

Chartered Accountants Whole-time Director Whole-time Director Whole-time Director

Roshan Kumar Bajaj & CFO & Company Secretary

Partner DIN:00086683 DIN : 08845853 DIN : 08850306

Membership No. 068523
Place : Kolkata
Date : 30th May, 2024

---

Mar 31, 2015

Note 1: CORPORATE INFORMATION

Kaushalya Infrastructure Development Corporation Limited (the company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The company is primarily engaged in executing construction contracts relating to infrastructure and real estate developments. Moreover, it carries on the business in hotel segment, hotel industry and is also engaged in acquiring and purchasing of land. The company's services are limited to domestic markets only.

Note 2 : SHARE CAPITAL

(i) Rights, preferences and restrictions attached to equity shares:

The Company has issued only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 3 : ADDITIONAL INFORMATION OF THE FINANCIAL STATEMENTS

3.1 : Contingent Liabilities and Commitments to the extent not provided for (Amount in Rs.)

Sl. Particulars As on As on No. 31.03.2015 31.03.2014

1. a. Performance guarantees issued by the banks to various Government 50,297,983 47,623,983 Authorises, for which the Company has provided counter guarantee against which fixed deposit receipts have been pledged by the Company.

b. Performance Guarantee issued on behalf of other company against 8,674,000 8,674,000 which fixed deposit receipts have been pledged by the Company ` c. Bank Interest Reversed 4,542,695 Nil

2. Claims not acknowledged as debts

Income Tax Demand Nil 3,771,602 (Assessment Year 2004-05)

Income Tax Demand 90,875 72,381 (Assessment Year 2005-06)

Income Tax Demand Nil 923,573 (Assessment Year 2006-07)

Income Tax Demand 2,846,864 4,098,684 (Assessment Year 2007-08)

Income Tax Demand 3,026,950 Nil (Assessment Year 2009-10)

Income Tax Demand 3,761,030 3,761,030 (Assessment Year 2010-11)

Income Tax Demand 190,580 4,165,834 (Assessment Year 2011-12)

Income Tax Demand 5,142,880 259,290 (Assessment Year 2012-13)

3.2 : Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

3.3 : Disclosure as per clause 32 of the listing agreement

(Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties)

The loans and advances in the nature of advances given by the company to its Subsidiaries and Associates, amounts to Rs. 482,462,888/-, in aggregate as on 31st March 2015. The details of the same have been provided below:

3.4 : Earning in foreign exchange (net of TDS): Nil

3.5 : Amount remitted in foreign currency during the year on account of dividend: Nil

3.6 : Current assets

In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. However, the following are the areas of concern:

a Outstanding Sundry debtors.

Out of total Sundry Debtors of Rs. 779,639,664/-, an amount of Rs. 737,506,104/- is outstanding since long, and out of which several debtors are under dispute.

b. Short-term Advances:

The Company had advanced a net amount of Rs. 34,474,964/- to Flare Realty Engineers Private Limited, for meeting its working capital requirements. However, the work for execution of part of the work at Sardasahar, Rajasthan of Nagar Palika project was awarded to the Company. Thereafter, Flare Realty Engineers Private Limited asked for security deposit against the said work and requested to transfer the working capital advance to Security Deposit. The Company has accepted the condition and agreed to transfer the working capital advance to Security Deposit.

3.7 : Statutory Compliances

The following areas are of concern :

a. Service Tax Payable: Following information is worth noting in this regard-

i. The company opted for the VCES, 2013 for the service tax payable corresponding to the period from April' 2009 to December, 2012. The total liability of the service tax for the said period stood to Rs. 1,59,43,004/-, payable in two equal installments on or before 31st Dec, 2013 and 30th June, 2014 respectively. The company has paid Rs. 79,72,657/- i.e 50% of declared liability till date. In, the mean time, the Company has received a show cause cum demand notice from Service Tax Commissionerate, Kolkata for Rs. 4,21,84,307/- for the said period. However, the hearing of the matter is still pending.

ii. Apart from the afore-mentioned amount due under VCES, 2013, the balance amount of Service Tax which is due to be paid is Rs. 1,04,51,981/-

iii. An amount of Rs. 14,01,229/- has been shown as Service Tax accrued but not due for payment. This amount comprises of the tax accrued on or before 1st July, 2011, which is to be paid on receipt basis,but not paid till date as no payment has been recovered from the debtors against the same since F.Y. 2010-11.

3.8 : Dilution of holding:

A) During the current financial year, the shareholding of the company has diluted in one of its subsidiary : Kaushalya Township Private Limited in which shareholding reduced from 73.49% to 48.69%. However, Kaushalya Township Private Limited continue to be the step-down subsidiary of the company as the company holds more than 50% of the shareholding through its other subsidiary.

B) Details of companies which have cease as subsidiary and become associates during the year under review as under:

a) Orion Abasaan Private Limited by reducing shareholding from 72.50% to 48.33% on 28th day of March, 2015

b) Kaushalya Nirman Private Limited by reducing shareholding from 68.66% to 46% on 31st ay Day of March, 2015

3.9 : Fixed Deposits:

All the fixed deposits have been made against the Bank Guarantee and under lien with the corresponding bank.

3.10 : Interest on credit cards:

The company has paid interest to the tune of Rs. 1,67,381/- on delayed payment of credit cards of the directors.

Note 4 : During the year borrowing cost is not capitalized.

Note 5 : Related Parties*, Related Party Transactions and Balances receivable/payable as at the end of the year

Related Party Disclosures as required by AS 18 issued by ICAI

I. Parties Where Control Exists Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

Step Down Subsidiaries

4 Kaushalya Township (P) Ltd.

5 Azur Solar KDC (P) Ltd.

II. Joint Ventures

Jointly Controlled Entities

1 KIDCO - NACC

III. Associates

1 Kaushalya Nirman (P) Limited

2 Orion Abasaan (P) Limited

IV. Key Management Personnel :

1 Mr. Prashant Mehra, Managing Director

2 Mr. Ramesh Kumar Mehra, Chairman

3 Mr. Mahesh Mehra, Whole-time Director

4 Mr. Parag Keshar Bhattacharjee, Independent Director

5 Mr. Rajesh Kumar Agarwal, Independent Director

6 Mrs. Minoti Nath, Women Independent Director

V. Other Related Parties with whom the company had transactions during the year

Relatives of Key Management Personnel :

1 Mr Kartik Mehra

2 Mr Karan Mehra

3 Mrs. Neeru Mehra

4 Ramesh Kumar Mehra HUF

Note 6: Other information:

a. Projects in hand:

The company is having three major running projects, construction of integrated school and hostel complex for Westing House Saxby Farmer Ltd., contract value of Rs. 7.25 Cr., Mega Housing project for EWS, LIG & MIG through PPP in Sardarsahar, Rajasthan from Rajasthan Avas Vikas & Infrastructure Ltd. of Rs. 51.66 Cr & Construction of Swarigarh SHP from Uttarakhand Jal Vidyut Nigam (awarded to KIDCO-NACC Consortium) contract value Rs. 14.83 Cr. In these projects, revenue to the tune of Rs. 7.60 Crs. has already been recognized upto the year ending 31.03.2015.

b. Work order received from Power Department, Sikkim of Rs. 4,55,20,000/- in the year 2004-05. The company has completed the work to the tune of Rs. 2,92,43,450/- but it has not been certified by the said department and subsequently no payment has been released by them against the aforesaid work done. The reason for not receiving the funds as stated by the management is due to non availability of fund under the APDRP scheme (the scheme of the project) in Sikkim.

c. The Company had filed a claim with their client NPCC Ltd. the client in turn raised the claim to their principal NTPC and entered into arbitration via P.M.A. The arbitration has awarded a claim of Rs. 8,55,23,452/- against a demand of Rs. 77,66,336/- and against this award the principal has appealed before the Secretary of the P.M.A. As per term the claim received by NPCC shall be passed on to the company after deduction of their margins as per MOU.

d. It is also observed that the company has few debtors under dispute and in case where any order is received against the said claims, the company may prefer further appeal to the higher authority.

e. The bankers of the Company are considering a second restructuring which is under review by lead banker The State Bank of India. The SBI has also reversed part of earlier charged interest of Rs. 45.42 lacs in account. This has also resulted/refiected in lower finance cost in last quarter 31.03.2015. However, Bank shall have the right to recompense the reliefs/sacrifices/waivers extended upto this restructuring package.

Note 7 : Previous Year Figures

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

---

Mar 31, 2014

Note 1 : ADDITIONAL INFORMATION OF THE FINANCIAL STATEMENTS

1.1: Moneys received against share warrants

The Board of Directors of the Company at their meeting held on 31st August, 2011 and as approved at its Annual General Meeting held on 30th September, 2011 have resolved to create, offer, issue and allot up to 15,025,000 warrants, convertible into 15,025,000 equity shares of Rs. 11/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on (date) to the promoters and others. It is noted that 100% application money amounting to Rs. 165,275,000/- was received from them before 21.05.2013. The Company converted said warrants into equivalent number of shares on 15.05.2013.

(Amount inRs) 1.2. Contingent Liabilities and Commitments to the extent not provided for

Sl.No. Particulars As on 31.03.2014 As on 31.03.2013

1.a.Counter guarantees given to Bankers to obtain various Bank Guarantees 56,297,983 31,070,270

against which fixed deposit receipts have been pledged by the Company.

b.Performance Guarantee given on behalf of Joint Venture Entities Nil 14,812,525

c.Share of the company in the Contingent Liability of Joint Venture Entities Nil Nil

d.Capital Commitment of the company in Joint Venture Entities Nil Nil

e.Share of the company in the Capital Commitment of the Joint Venture Nil Nil Entities

2.Claims not acknowledged as debts

Income Tax Demand (Assessment Year 2004-05) 3,771,602 3,771,602

Income Tax Demand (Assessment Year 2005-06) 72,381 72,381

Income Tax Demand (Assessment Year 2006-07) 923,573 923,573

Income Tax Demand (Assessment Year 2007-08) 4,098,684 4,098,684

Income Tax Demand (Assessment Year 2010-11) 3,761,030 3,761,030

Income Tax Demand (Assessment Year 2011-12) 4,165,834 NIL

Income Tax Demand (Assessment Year 2012-13) 2,59,290 NIL

1.3 : Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

1.4 : Disclosure as per clause 32 of the listing agreement (loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by the such parties)

The loans and advances in the nature of advances given by the company to its subsidiaries, amounts to Rs. 51,78,33,183/-, in aggregate as on 31st March, 2014. The details of the same have been provided below :

1.5 : Earning in foreign exchange (net of TDS): Nil

1.6 : Amount remined in foreign currency during the year on account of dividend: Nil

1.7 : Current assets

In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. However, the following are the areas of concern.

A Outstanding Sundry debtors.

Out of total Sundry Debtors of Rs. 763,680,548/-, an amount of Rs. 670,125,891/- is outstanding since long, and out of which several debtors are under dispute.

b. Sundry Debit/(Credit) Balance W/Off :

The total sundry debit balances, which had been written off during the financial year 2013-14 amounted to Rs. 41,216,937/- out of which, debit balance to the tune of Rs. 28,736,687/- had been netted off with the credit balance of the same amount and the balance had been shown under the head of other expenses as Sundry Debit/ (Credit) Balance W/Off, in the statement of Profit and loss.

c. Short-term Advances:

The Company had advanced a net amount of Rs. 19,063,637/- to Flare Realty Engineers Private Limited, which was incorporated as a step-down subsidiary of the company, for meeting its working capital requirements. However, Flare Realty Engineers Private Limited has subsequently raised additional equity from outsiders to finance the project further and hence it ceased to be the subsidiary of the company as on 31st March, 2014.

Note 1.8: Statutory Compliances

The following areas are of concern :

a. Service Tax Payable: Following information is worth noting in this regard-

i. The company opted for the VCES, 2013 for the service tax payable corresponding to the period from April'' 2009 to December'' 2012. The total liability of the service tax for the said period stood to Rs. 15,943,004/-, payable in two equal installments on or before 31st Dec, 2013 and 30th June, 2014 respectively. The company has paid Rs. 7,972,657/- till date and the balance is due to be paid within 30th June, 2014.

ii. Apart from the afore-mentioned amount due under VCES, 2013, the balance amount of Service Tax which is due to be paid in the current Financial Year is Rs. 6,109,751/-

iii. An amount of Rs. 1,401,229/- has been shown as Service Tax accrued but not due for payment. This amount comprises of the tax accrued on or before 1st July, 2011, which is to be paid on receipt basis, but not paid till date as no payment has been recovered from the debtors against the same since F.Y. 2010-11.

Note 1.9: Prior period items

An amount of Rs. 2,197,861/- against the BG Commission, pertaining to the prior period has been included in the Finance Costs.

Note 1.10: Dilution of holding:

During the current financial year, the shareholding of the company has diluted in some of the subsidiaries, the details of which is as follows:

a. Orion Abasaan Private Limited: Shareholding reduced from 96.67% to 72.50%

b. Kaushalya Township Private Limited: Shareholding reduced from 99.01% to 73.49%

c. Kaushalya Nirman Private Limited: Shareholding reduced from 97.87% to 68.66%

Note 1.11: Fixed Deposits:

All the fixed deposits have been made against the Bank Guarantee and under lien with the corresponding bank.

Note 1.12: Interest on credit cards:

The company has paid huge amount of interest (to the tune of Rs. 454,155/-) on delayed payment of credit cards of the directors.

2 : During the year borrowing cost is not capitalized.

3: Related Parties*, Related Party Transactions and Balances receivable/payable as at the end of the year

I. Parties Where Control Exists Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

4 Kaushalya Nirman (P) Ltd.

5 Kaushalya Township (P) Ltd.

6 Orion Abasaan (P) Ltd.

Step Down Subsidiaries

7 Azur Solar KDC (P) Ltd.

II. Joint Ventures

Jointly Controlled Entities 1 New Asian Construction Co.

III. Key Management Personnel :

1 Mr. Prashant Mehra, Managing Director

2 Mr. Ramesh Mehra, Director

3 Mr. Mahesh Mehra, Whole-time Director

4 Mr. Parag Keshar Bhattacharjee, Independent Director

5 Mr. Rajesh Kumar Agarwal, Independent Director

6 Mr. Saktipada Banerjee, Independent Director

IV Other Related Parties with whom the company had transactions during the year

a) Relatives of Key Management Personnel :

1. Mr. Kartik Mehra

2. Mr. Karan Mehra

3. Mrs. Neeru Mehra

b) Associates Company:

1 Keleen worth Marketing Pvt. Ltd.

2 Mahanti Engineers Pvt. Ltd.

3 Sunkissed Merchandise Pvt. Ltd.

Note 4 : Other information :

a. Projects in hand:

The company is having three running projects, construction of integrated school and hostel complex for Westing House Saxby Farmer Ltd., contract value Rs. 7.25 crs., Mega Housing project for EWS, LIG & MIG through PPP in Sardarsahar, Rajasthan from Rajasthan Avas Vikas & Infrastructure Ltd. of Rs. 51.66 cr and construction of Swarigarh SHP from Uttrakhand Jal Vidyut Nigam (awarded to KIDCO-NACC consortium) contract value Rs. 14.83 crs. In these projects, revenue to the tune of Rs. 5.30 crs has already been recognized upto the year ending 31.03.2014.

b. Work order received from Power Department, Sikkim of Rs. 4,55,20,000/- in the year 2004-05. The company has completed the work to the tune of Rs. 2,92,43,450/- but it has not been certified by the said department and subsequently no payment has been released by them against the aforesaid work done. The reason for not receiving the funds as stated by the management is due to non availability of fund under the APDRP scheme (the scheme of the project)in Sikkim.

c. The Company had filed a claim with their client NPCC Ltd. the client in turn raised the claim to their principal NTPC and entered into arbitration via P.M.A. The arbitration has awarded a claim of Rs. 8,55,23,452/- against a demand of Rs. 77,66,336/- and against this award the principal has appealed before the Secretary of the P.M.A. As per term the claim received by NPCC shall be passed on to the company after deduction of their margins as per MOU.

d. It is also observed that the company has few debtors under dispute and in case where any order is received against the said claims, the company may prefer further appeal to the higher authority.

Note 5 : Previous Year Figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

Note 1: CORPORATE INFORMATION

Kaushalya Infrastructure Development Corporation Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The company is primarily engaged in executing construction contacts relating to infrastructure developments.

Moreover, it also carries on the business in hotel segment and hotel industry and is also engaged in acquiring and purchasing of land. The company''s services are limited to domestic markets only.

2.1: Moneys received against share warrants

The Board of Directors of the Company at their meeting held on 31st August, and as approved at its Annual General Meeting held on 30th September, 2011 have resolved to create, offer, issue and allot up to 15,025,000 warrants, convertible into 15,025,000 equity shares of Rs. 11/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on (date) to the promoters and others. It is noted that 74.72% application money amounting to Rs. 123,495,000/- was received from them. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 21.05.2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

2.2: Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

2.3: Disclosures as per clause 32 of the listing agreement (Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties)

2.4: Earning in foreign exchange (net of TDS): Nil

2.5: Amount remitted in foreign currency during the year on account of dividend: Nil

2.6: Current assets

a. In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. However, the following are the areas of concern.

b. Outstanding Sundry debtors.

Out of total Sundry Debtors of Rs. 95,02,45,551/-, an amount of Rs. 62,10,27,492/- is outstanding since long, and out of which several debtors are under dispute. Note 26: During the year borrowing cost is not capitalized.

Note 3: Other information:

a. Projects in hand:

The company is left with two running projects one namely Westing House Saxby Farmer Ltd., contract value Rs. 7.25 crs. and Uttrakhand Jal Vidyut Nigam contract value Rs. 14.83 crs out of which contract revenue to the tune of Rs. 2.76 crs has already been recognized upto the year ending 31.03.2013.

b. Work order received from Power Department, Sikkim of Rs. 4,55,20,0000/- in the year 2004-05. The company has completed the work to the tune of Rs. 2,92,43,450/- but it has not been certified by the said department and subsequently no payment has been released by them against the aforesaid work done. The reason for not receiving the funds as stated by the management is due to non availability of fund under the APDRP scheme (the scheme of the project) in Sikkim.

c. The Company had filed a claim with their client NPCC Ltd. the client in turn raised the claim to their principal NTPC and entered into arbitration via P.M.A. The arbitration has awarded a claim of Rs. 8,55,23,452/- against a demand of Rs. 77,66,336/- and against this award the principal has appealed before the Secretary of the P.M.A. As per term the claim received by NPCC shall be passed on to the company after deduction of their margins as per MOU.

Note 7 Previous Year Figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

Note 1: CORPORATE INFORMATION

Kaushalya Infrastructure Development Corporation Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange and National Stock Exchange. The company is engaged in executing construction contacts relating to infrastructure developments. The company''s services are limited to domestic markets only.

2.1: Moneys received against share warrants

The Board of Directors of the Company at their meeting held on 31st August, and as approved at its Annual General Meeting held on 30th September, 2011 have resolved to create, offer, issue and allot up to 15,025,000 warrants, convertible into 15,025,000 equity shares of Rs. 11/- each on a preferential allotment basis, pursuant to Section 81(1A) of the Companies Act, 1956, at a conversion price of Rs. 11/- per equity share of the Company, arrived at in accordance with the SEBI Guidelines in this regard and subsequently these warrants were allotted on (date) to the promoters and the 58.11% application money amounting to Rs. 96,043,750/- was received from them. The warrants may be converted into equivalent number of shares on payment of the balance amount at any time on or before 21.05.2013. In the event the warrants are not converted into shares within the said period, the Company is eligible to forfeit the amounts received towards the warrants.

2.2: Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. As confirmed by the management, the company has not yet received any information about such registration from the vendors and such information will be provided as and when confirmation is received from them. However, as regards the same, no documentary evidence has been found during the course of audit.

2.3: Earning in foreign exchange (net of TDS): Nil

2.4: Amount remitted in foreign currency during the year on account of dividend: Nil

2.5: Current assets

In the opinion of the Board, the current assets have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

Note 3 : Details of borrowing cost capitalized during the year: Not Applicable

Note 4: Segment reporting

The company has no separately identifiable primary and secondary segments. Therefore, AS 17: Segment reporting issued by the ICAI are not applicable to the company.

Note 5: Related Parties*, Related Party Transactions and Balances receivable/payable as at the end of the year

I. Parties Where Control Exists Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

4 Kaushalya Nirman (P) Ltd.

5 Kaushalya Township (P) Ltd.

6 Orion Abasaan (P) Ltd.

Step Down Subsidiaries

7 Azur Solar KDC (P) Ltd.

II. Joint Ventures

jointly Controlled Entities

1 New Asian Construction Co.

III. Key Management Personnel:

1 Mr. PrashantMehra, Managing Director

2 Mr. Ramesh Kumar Mehra, Director

3 Mr. Mahesh Mehra, Director

4 Mr. S.N.Mehra, Director

5 Mr. ParagKesharBhattacharjee, Independent Director

6 Mr. Shankar Saraf, Independent Director

7 Mr. Rajesh Kumar Agarwal, Independent Director

8 Mr. Saktipada Banerjee, Independent Director

IV. Other Related Parties with whom the company had transactions during the year Relatives of Key Management Personnel:

1 Mr Kartik Mehra

2 Mr Karan Mehra

3 Mrs. Neeru Mehra

4 Keleenworth Marketing Pvt. Ltd.

5 Mahanti Engineers Pvt. Ltd.

6 Sunkissed Merchandise Pvt. Ltd.

Note 6 Previous Year Figures

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2010

1. Current tax is determined in respect of taxable income for the year based on applicable tax rates and Laws.

2. The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and Medium Enterprises Development Act, 2006. In this process the Company has given notice to its vendors/ suppliers to inform about whether any of them are registered under the said Act. The Company has not yet received any information about such registration from the vendors. Such information will be provided as and when confirmation is received from them.

3. Disclosure on Related Party Transactions as per AS 18 on "Related party disclosures" issued by The Institute of Chartered Accountants of India.

I. Parties Where Control Exists

Subsidiaries

1 Bengal Kaushalya Nirman Ltd.

2 Bengal KDC Housing Development Ltd.

3 Kaushalya Energy (P) Ltd.

4 Kaushalya Nirman (P) Ltd.

5 Kaushalya Township (P) Ltd.

6 Orion Abasaan (P) Ltd.

II. Key Management Personnel

1 Mr. Prashant Mehra, Managing Director

2 Mr. Sidhnath Mehra, Wholetime Director

3 Mr. Ramesh Kumar Mehra, Director

4 Mr. Mahesh Mehra, Director

III. Other Related Parties

Relatives of Key Management Personnel

1 Mr. Kartik Mehra

2 Mrs. Neeru Mehra

4. Loans & Advances include advances Nil (Previous Year Nil) paid to various parties as advances for purchase of capital items.

5. The Company has reviewed the possibility of any impairment of the fixed assets of the Company in terms of the Accounting Standard AS 28 – "Impairment of Assets" issued by The Institute of Chartered Accountants of India as at the balance sheet date and is of the opinion that no such provision for impairment is required.

6. Disclosure pertaining to Accounting Standard 29 – "Provisions, Contingent Liabilities and Contingent Assets" issued by The Institute of Chartered Accountants of India. Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes to accounts. Disputed demands in respect of Income Tax, Sales Tax are disclosed as contingent liability. Payments in respect of such demands, if any, are shown as advance, till the final outcome of the matter. Contingent Assets are neither recognized nor disclosed in the financial statements.

7. In the opinion of the Board of Directors, the Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to the amount at which they have been stated in the Balance Sheet.

8. Service Tax of Rs.24,971,552/- (Previous Year Rs. 41,632,347/-) charged on works contract is included in contract received and shown under the head income from operation.

9. Income from operation is total of contract revenue received and net profit from hotel business.

10. Previous years figure have been re-grouped and rearranged wherever necessary.