Notes to Accounts of KCL Infra Projects Ltd.

Mar 31, 2024

Financial Instruments

30.1 Risk management frameworks

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

(i) Market risk

Market risk is the risk of changes the market prices on account of foreign exchange rates, interest rates and Commodity prices, which shall affect the Company''s income or the value of its holdings of its financial instruments. The objective of market risk management is to manage and control market risk exposure within acceptable parameters, while optimizing the returns.

(a) Interest Rate Risk

Interest rate risk is the risk the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks. Currently company is not using any mitigating factor to cover the interest rate risk.

(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 and arises principally from the Company’s receivables from customers. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of trade and other receivables and investments.

Trade and other receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry has an influence on credit risk assessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

Trade Receivable ageing schedule:-

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has obtained fund and non-fund based working capital lines from various banks. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, process 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.

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

Gearing Ratio

Note 32.3 Financial instruments by Category and fair value hierarchy

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.

The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counter parties.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

33. Balance in respect of Sundry Creditors, Sundry Debtors & Loans and Advance (including interest thereon) are subject to confirmation from respective parties.

34. Additional information pursuant to provisions of paragraph 5 of schedule III of the Companies Act, 2013. Expenditure incurred in foreign currency during the year Nil

CIF Value of Imports of Capital Goods Nil

35. Contingent Liabilities
Particulars	As on 31st March, 2024	As on 31st March, 2023
Related to Indirect Taxes	148,973	148,973

36. As per the definition of Business Segment and Geographical Segment contained in Ind AS 108 "Segment Reporting", the management is of the opinion that the Company''s operation comprise of operating in Primary and Secondary market and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment and, therefore, segment information is not required to be disclosed.

37. Details of amounts due to Micro, Small and Medium Enterprise under the head current liabilities, based on the information available with the Company and relied upon by the auditors- Nil (Previous Year - Nil).

38. In the opinion of the management, all current assets, loans and advances would be realizable at least an amount equal to the amount at which they are stated in the Balance Sheet. Also there is no impairment of fixed assets.

39. Previous year''s figures have been reclassified regrouped and rearranged wherever found necessary to make them comparable

40. Related Party Disclosures

(i)List of related parties where control exists and related parties with whom transactions have taken place and relationships:

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Mar 31, 2015

1. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ? 2/- per share. Each holder of equity shares is entitled to one vote per share.

2. Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II, Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted from the opening balance of Profit and Loss Account amounting to ' 54,714/-

3. 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 are stated.

4. Balances in respect of Sundry Creditors, Sundry Debtors, Loans and Advances (including interest thereon) are subject to confirmation from respective parties.

5. Previous year's figures have been re-grouped/re-arranged and re-classified wherever necessary.

6. Segment Reporting

The business of the Company is under two segments i.e.

a) Construction & Infrastructure

b) Derivative, Equity & Unit. ( Rs In Lacs)

For The Year For The Year Ended Ended 31st March 2015 31st March 2014

1. Segment Revenues:

(a) Constructions & Infrastructure 352.79 54.08

(b) Turnover in Derivatives, Equity & Unit 168.60 331.46

(c) Unallocated 115.02 125.77

Total Revenues 636.41 511.31

Less: Inter Segment Revenue - -

Net Sales/Income From Operations 636.41 511.31

2. Segment Results

(a) Constructions & Infrastructure 2.68 (58.05)

(b) Derivatives, Equity & Unit (15.02) 56.08

(c) Unallocated 115.02 125.77

Total 102.68 123.81

Less: (i) Financial Cost 26.24 24.82

(ii) Other Un-allocable Expenditure net off un-allocable income 48.55 58.41

Total Profit before Tax 27.89 40.58

3. Capital Employed (Segment assets - Segment Liabilities)

(a) Constructions & Infrastructure 331.62 723.11

(b) Derivatives, Equity & Unit 36.67 18.42

(c) Unallocated 1450.04 1059.04

Total 1818.33 1800.58

7. Related Party Disclosure (As identified & certified by the management)

(a) Enterprises owned or significantly influenced by key management personnel or their relatives: (1) KCL Stock Broking Ltd.

(b) Key Management Personal:

(1) Mr. Mohan Jhawar

(2) Mr. Siddharth Maheshwari

8. The Company has not made any preferential allotment to parties and Company covered under register maintain under section 189 of the companies act 2013 and hence, the question of whether the price at which shares have been issued is prejudicial to the interest of the Company does not arise.

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Mar 31, 2014

1 SHARE CAPITAL

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share.

2 CONTINGENT LIABILITIES AND COMMITMENTS

No contingent liabilities exist as on the balance sheet date - -

3 Confirmation of amount due from Sundry debtors and due to sundry creditors, deposits, loans and advances have been received from certain parties and necessary adjustments, if any, are made in the books of accounts.

4 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 are stated.

5 Balances in respect of Sundry Creditors, Sundry Debtors, Loans and Advances (including interest thereon) are subject to confirmation from respective parties.

6 Previous year''s figures have been re-grouped/re-arranged and re-classified wherever necessary.

7 Segment Reporting

The business of the Company is under two segments i.e.

a) Construction & Infrastructure

b) Derivative, Equity & Unit.

8 Related Party Disclosure (As identified & certified by the management)

(a) Enterprises owned or significantly influenced by key management personnel or their relatives:

(1) KCL Stock Broking Ltd.

(b) Key Management Personal:

(1) Mr. Mohan Jhawar

(2) Mrs. Alka Soni

(c) Transaction during the year with related parties.

9The company has not made any preferential allotment to parties and company covered under register maintain under section 301 of the company act 1956 and hence, the question of whether the price at which shares have been issued is prejudicial to the interest of the company does not arise.

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Mar 31, 2013

1 CONTINGENT LIABILITIES AND COMMITMENTS

No contingent liabilities exist as on the balance sheet date NIL NIL

2 Confirmation of amount due from Sundry Debtors and due to Sundry Creditors, deposits, Loans and Advances have been received from certain parties and necessary adjustments, if any, are made in the books of accounts.

3 In the opinion of the Board of Directors, the current assets, Loans & Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated.

4 Balances in respect of Sundry Creditors, Sundry Debtors, Loans and advances (including interest thereon) are subject to confirmation from respective parties.

5 Previous year''s figures have been re-grouped/re-arranged and re-classified wherever necessary. "*

6 Segment Reporting

The business of the Company is under two segments i.e. a) Construction & Infrastructure

7. The company has not made any preferential allotment to parties and company covered under register maintain under section 301 of the company act 1956 and hence, the question of whether the price at which shares have been issued is prejudicial to the interest of the company does not arise.

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Mar 31, 2012

(a) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote Der share.

1 CONTINGENT LIABILITIES AND COMMITMENTS

No contingent liabilities exist as on the balance sheet date NIL NIL

2 Confirmation of amount due from Sundry Debtors and due to Sundry Creditors, deposits, Loans and Advances have been received from certain parties and necessary adjustments, if any, are made in the books of accounts.

3 In the opinion of the Board of Directors, the current assets, Loans & Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated.

4 Balances in respect of Sundry Creditors, Sundry Debtors, Loans and advances (including interest thereon) are subject to confirmation from respective parties.

5 Previous year''s figures have been re-grouped/re-arranged and re-classified wherever necessary.

6 The company has not made any preferential allotment to parties and company covered under register maintain under section 301 of the company act 1956 and hence, the question of whether the price at which shares have been issued is prejudicial to the interest of the company does not arise.

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Mar 31, 2010

1. The amount due to Small Scale Industrial Undertakings (SSIs) is furnished under the relevant head, on the basis of information available with the Company regarding small scale industry status of the service provider.

2. In the opinion of the Board of Directors, the current assets, Loans & Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated.

3. Segment Reporting

The business of the Company is under two segments i.e. in constructions and the other relating to Derivatives trading. However, no activity has been carried on during the year for the construc- tion segment. The above Financial Statements relate only to the segment relating to Shares & securities, derivatives and other investments. In view of this, separate segments are not reported as per AS - 17

4. Balances in respect of Sundry Creditors, Sundry Debtors, Loans and advances (including interest thereon) are subject to confirmation from respective parties.

5. Related Party Disclosure (As identified & certified by the management)

(a) Associates: (1) Samyak Resources Pvt. Ltd.

(2) KCL Stock Broking Ltd.

(b) Key Management Personal: Mr. Mohan Jhawar

Mrs. Alka Soni

(c) Relatives of Key Management Personal: Mrs. Rajshree Biyani

6. Previous years figures have been re-grouped/re-arranged and re-classified wherever necessary.