Notes to Accounts of Niraj Cement Structurals Ltd.

Mar 31, 2025

u Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when

(i) the Company has a present obligation (legal or constructive) as a result of a past event;

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of
time value of money is material, the carrying amount of the provision is the present value of those cash flows.
Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is
virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible. Contingent assets are
disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received under such contract, the present obligation under the contract is recognised and
measured as a provision.

v Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities.
Cash flow from operating activities is reported using indirect method, adjusting the profit before tax excluding
exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables transactions of a non-cash
nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which
are not available for general use as at the date of Balance Sheet.

w Expected Credit Loss:

Losses (ECL) model for measurement and recognition of loss allowance on the following: • Trade receivables •
Financial assets measured at amortised cost (other than trade receivables); and • Financial assets measured at
fair value through other comprehensive income (FVTOCI). In accordance with Ind AS 109, the Company applies
Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the 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 115. For this purpose, the Company follows ‘simplified approach'' for recognition of impairment
loss allowance on the trade receivable balances. The application of simplified approach does not require the
Company to track changes in credit risk. As a practical expedient, the Company uses a provision matrix to
determine impairment loss allowance on portfolio of its trade receivables. The provision matrix is based on its
historically observed default rates over the expected life of the trade receivables, and is adjusted for forward
looking estimates. At every reporting date, the historical observed default rates are updated and changes in the
forward-looking estimates are analysed. In the case of other assets, the Company determines if there has been a
significant increase in credit risk of the financial asset since initial recognition. If the credit risk of such assets has
not increased significantly, an amount equal to twelve-month ECL is measured and recognised as loss allowance.
However, if credit risk has increased significantly, an amount equal to lifetime ECLis measured and recognised as
loss allowance.

X Other Income

Other income mainly comprises of interest income, dividend from investments, gain on sale of investments and
fair value gain/loss on investment measured at fair value through profit/ loss, which are held at the Balance Sheet
date.

a) Interest Income :

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company, and the amount of income can be measured reliably. Interest income is accrued on a time basis, by
reference to the principle outstanding and at the effective interest rate applicable, which is the rate that discounts
the estimated future cash receipts through the expected life of the financial asset to that asset''s net carrying
amount on initial recognition.

b) Dividends:

Dividend income from investments is recognised when the right to receive payment has been established,
provided that it is probable that the economic benefits will flow to the Company and the amount of income can be
measured reliably.

c) Other Income:

Other income is recognised when no significant uncertainty as to its determination or realisation exists

Note :

i Company has not made any non cash allotment/ Bonus issue nor bought back any share during the last five
years.

ii None of sharesholder(s) of Company is it''s holding company, ultimate holding company, subsidiaries, associates
of the holding company or associates of the ultimate holding company for current year and/or previous year.

iii There are no unpaid calls from any director or officers of the company for current and previous year.

i Voting :

The Company has 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.

ii Liquidation :

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the
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.

33 The office of the Director General of GST Intelligence (DGGI) had carried out a Search and seizure operations at
the office of the Company at Mumbai on 6th January, 2021 under the provisions of Section 67 (1) and (2) of
CGST Act. The company has challenged the entire search and seizure proceedings and filed a writ petition with
the Honorable Gujarat High Court and the matter is sub-judice in law. In View of this we are unable to comment
on financial liabilities, arising out of the said procedings. The Company has deposited Rs.108.40 Lakhs under
protest, which is adjusted by department against disputed dues, no provision is made in the books as the
company has challanged the action of the department in the Honorable Gujarat High Court.

34 As per lnd AS 109 "Financial instrument" the company is required to consider "Provision for Expected Credit
Loss" on all financial assets on the basis of expected probability of Recoverability of such financial instrument.

During the year, company has written off Rs.37.02 lakhs and has provided Rs.2,769.36 Lakhs (Rs.4,243.58
Lakhs Previous year) as Expected Credit Loss (ECL), has setoff in financial statement Rs.2,769.36 Lakhs
(Rs.3,379.70 Lakhs - Previous year) in General Reserve & surplus and Net Balance Rs. NIL Lakhs (Rs.863.88
Lakhs - Previous year) as an Expected Credit Loss. As per management explanation, the receivable and advance
is in dispute and for balance receivable and advances, the management is following up with the parties and is
hopeful for recovery. But in the absence of adequate basis/ supporting documents, we are unable to comment on
the measurement of carrying amount of all the financial assets appearing in the financial statements as on 31st
March, 2025.

35 In the year ended 31st March, 2025, mainly due to adoption of prudent accounting practices and various
contractual reasons the company has reversed contractual revenue and corresponding sub-contracting costs and
other direct expenses. The corresponding disputed receipts and payments transactions relating to the said
contracts are still unsettled and reflected in the financial statements under the head “Other Current Liabilities” and
“Other Current assets”.

36 lncome tax Assets (Net) Amount of Rs. 2,442.95 (Rs 2,091.06 Lakhs Previous year) has been shown under other
Non-Current Assets out of which an amount of Rs 837.80 Lakhs has been recovered /adjusted by the lncome Tax
Demand for the Assessment Year 2008-09 and 2007-08, further against the due refund of Ay 2014-15 to 2022-23
but no provision has been made despite of the fact that no appeal is pending at any state in respect of these
payments. Management is of the opinion that the department has made erroneous addition which requires
rectification and is taking time as the matter is very old. However, management is confident of getting rectification
done before the end of financial year 2025-2026 and pending demand pertaining to Assessment year 2007-2008
and 2008-09 if any, will be provided for before the end of financial year 2025-2026.

37 During the year under review, the Authorised Share Capital of the Company has increased from 4,20,00,000
(Four Crore Twenty Lakh) Equity Shares of face value Rs. 10/- each, aggregating to Rs. 4,200 Lakhs, to
7,00,00,000 (Seven Crore) Equity Shares of face value Rs. 10/- each, aggregating to Rs. 7,000 Lakhs.

Further, during the year, the Company issued and allotted 1,95,39,040 (One Crore Ninety-Five Lakh Thirty-Nine
Thousand Forty) Equity Shares of face value ?10/- each, at a premium of Rs. 43/- per share, under a preferential
issue. This resulted in the Issued, Subscribed, and Paid-up Share Capital of the Company increasing to
5,96,94,340 (Five Crore Ninety-Six Lakh Ninety-Four Thousand Three Hundred Forty) Equity Shares of face
value ?10/- each, aggregating to Rs. 5,969.43 Lakhs.

The above allotment includes 1,12,20,000 (One Crore Twelve Lakh Twenty Thousand) Equity Shares issued
upon conversion of Share Warrants previously allotted under a preferential issue.

40 Details of pending litigation / arbitration claims

Company''s claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances
given, receivables, etc is amounting to Rs.2116.73 Lakhs, which is under arbitration.

41 Trade payables, Trade receivables, Advances received, Advances given, GST Payable / input credit and Income
Tax assets (Net of liabilities) are subject to reconciliation and confirmation. The management is the process of
reconciling the same.

42 The Statement has been prepared in accordance with companies (Indian Accounting Standards) Rules,215
(indAS) prescribed under section 133 of the companies Act, 2013 and other recognized accounting practices and
policies to the extent applicable.

43 In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current
investments, have a realisable value in the ordinary course of business which is not different from the amount at
which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount
reasonably necessary.

44 The Company is engaged primarily in business of civil construction and infrastructure and accordingly there are
no separate reportable segments as per Indian Accounting standards (Ind AS) 108 dealing with the segment
reporting.

45 Company has booked turnover and costs related to joint venture entities and partners in the books of account.
However the whole projects have been handled by joint venture partners/entities and related TDS and GST
complied by Joint venture partners/entities.

46 The Inventory of Rs.685.78 Lakhs is in respect of ongoing Projects and includes uncerited work. This being a
technical matter, we have relied on the certicate of work in progress certied by the management of the company.

47 The Company have a program of verification to cover all the items of fixed assets in a phased manner, Fixed
assets were physically verified by the management during the year.

48 The Ratios for the year ended 31st March 2025 and 31st March, 2024 are as follows:

50 RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise mainly of borrowings, trade payables and other payables. The
Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with
banks, loans, trade receivables and other receivables. The Company has exposure to the following risks arising
from financial instruments:

a) Credit Risk

b) Liquidity Risk

c) Market Risk

a) Credit Risk : Credit risk is the risk that a counterparty will not meet its obligations under a nancial instrument or
customer contract, leading to a nancial loss. The Company is exposed to credit risk from its operating activities
(primarily trade receivables) and from its nancing activities, including deposits with banks, mutual funds and
nancial institutions, foreign exchange transactions and other nancial instruments. The Company has adopted a
policy of only dealing with counterparties that have sufciently high credit standards and nancial strength. The
Company''s exposure and credit ratings of its counterparties are continuously monitored, and the aggregate value
of transactions is reasonably spread amongst the several counterparties. Credit risk arising from derivative
nancial instruments and other balances with banks is limited, and there is no collateral held against these
because the counterparties are banks and recognised nancial institutions with high credit ratings assigned by the
reputed credit rating agencies.As regards, credit risk for investment in mutual funds, the Company limits its
exposure to credit risk by investing mainly in debt schemes issued by the mutual funds, wherein the fund
manager invests assets under the Management in highly rated instruments, which are of high credit ranking from
rating agency like CRISIL or the equivalent ratingagency. The Company monitors changes in credit risk by
tracking published external credit ranking. Based on its on-going assessment of counterparty risk, the Company
adjusts its exposure to various counterparties from time to time. Credit risk from trade receivables is managed by
the Company''s established policy, procedures and control relating to customer credit risk management. Trade
receivables are mainly from stockist, distributors and direct customers, and are mostly non-interest bearing. Trade
receivables generally ranges from 30 days to 180 days credit term. Credit limits are established for customers
based on internal criteria and any deviation in credit limit requires approval of Head of the Department depending
upon the quantum and overall business risk. Majority of the customers have been doing business with the
Company for more than 3 years, and they are being monitored by individual business managers who deals with
those customers. The Management monitors trade receivables on regular basis and takes suitable action, where
needed, to control the receivables crossing set criterias/limits. Also, in case of international business, particularly
new customers, the Management reviews the business risk by evaluating economic situation of the country and
the customers, and generally starts the relation either on advance payment or on the basis of conrmed
irrevocable Letter of Credit. The Management does an impairment analysis at each reporting date on an
individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous
groups and assessed for impairment collectively. Further, the Company''s customer base is widely distributed both
economically as well as geographically and, in view of the same, the quantum risk also gets spread across wide
base, and hence, the Management considers risk with respect to trade receivable as low. "

b) Liquidity Risk : Liquidity risk is the risk that the Company may not be able to meet its present and future cash
and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times,
maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors
its liquidity 83 position and deploys a robust cash management system. The Company has an established
liquidity risk management framework for managing its short-term, medium term and long-term funding, and
liquidity management requirements. The Company manages the liquidity risk by maintaining adequate funds in
cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that

there is sufcient cash or cash equivalent available to meet all its normal operating commitments in a timely and
costeffective manner. Working capital requirements are adequately addressed by internally generated funds.
Trade receivables are kept within manageable levels. The Company aims to maintain the level of its cash and
cash equivalents and other highly marketable debt investments at an amount in excess of expected cash outows
on nancial liabilities over the next three to six months."

c) Market Risk : Market risk is the risk that the fair value of future cash ows of a nancial instrument will uctuate
because of changes in market conditions. Market risk comprises three types of risks:

I. Interest Rate Risk and,

ii. Equity Price Risk. Financial instruments affected by market risk include borrowings, trade payables, investments,
trade receivables, loans and derivative nancial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.

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

ii) Equity Price Risk: The Company does not have any material exposure to equity price risk, as there is no major
investment in equity, except in its own subsidiaries, and accordingly, exposure to risk of changes in price is very
low."

51 Additional Regulatory Information/disclosures as required by General Instructions to Division II of Schedule III to
the Companies Act, 2013 :

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

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

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

d. 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).

e. The Company has not been declared wilful defaulter by any banks / Financial Institution.

The accompanying notes 1 to 51 are integral part of the financial statements

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

For Chaturvedi Sohan & Co.

Chartered Accountants

FRN: 118424W Vishram P Rudre Sudhakar B Tandale

Managing Director Whole Time Director

DIN 08564350 DIN 09083084

Vivekanand Chaturvedi

Vinay Kumar Ghuwalewala Anil Jha

M.No: 106403 Chief Financial Officer Company Secretary &

^{UDIN: 25106403BMIDMN2381}

Place : Mumbai Place : Mumbai

Date : 22nd May 2025 Date : 22nd May 2025

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Mar 31, 2024

u Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised only when

(i) the Company has a present obligation (legal or constructive) as a result of a past event;

(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

(iii) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and

(ii) a present obligation arising from past events, when no reliable estimate is possible. Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

v Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the profit before tax excluding exceptional items for the effects of:

(i) changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

(ii) non-cash items such as depreciation, provisions, unrealised foreign currency gains and losses; and

(iii) all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as at the date of Balance Sheet.

38 Details of pending litigation / arbitration claims

Company''s claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances given, receivables, etc is amounting to Rs.2116.73 Lakhs, which is under arbitration.

39 Trade payables, Trade receivables, Advances received, Advances given, GST Payable / input credit and Income Tax assets (Net of liabilities) are subject to reconciliation and confirmation. The management is the process of reconciling the same

40 In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

41 The Statement has been prepared in accordance with companies (Indian Accounting Standards) Rules,215 (ind AS) prescribed under section 133 of the companies Act,2013 and other recognized accounting practices and policies to the extent applicable

42 The Company is engaged primarily in business of civil construction and infrastructure and accordingly there are no separate reportable segments as per Indian Accounting standards (Ind AS) 108 dealing with the segment reporting

43 Company has booked turnover and costs related to joint venture entities and partners in the books of account. However the whole projects have been handled by joint venture entities and related TDS and GST complied by Joint venture entities.

44 The Inventory of Rs. 489.49 Lacs is in respect of ongoing Projects and includes unceritfied work. This being a technical matter, we have relied on the certificate of work in progress certified by the management of the company.

45 The Company have a program of verification to cover all the items of fixed assets in a phased manner, Fixed assets were physically verified by the management during the year.

46 The ratios for the years ended 31st March, 2024 and 31st March, 2023 are as follows

48 RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s financial liabilities comprise mainly of borrowings, trade payables and other payables. The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other receivables. The Company has exposure to the following risks arising from financial instruments:

a) Credit Risk

b) Liquidity Risk

c) Market Risk

Risk Management Framework: The Company''s Board of Directors has overall responsibility for establishment of the Company''s risk management framework. The Management is responsible for developing and monitoring the Company''s risk management policies, under the guidance of the Audit Committee. The Management identifies, evaluates and analyses the risks to which the Company is exposed to and set appropriate mitigation measures and controls to monitor such risk and adherence to limits. The Management periodically reviews its risk policy and systems to assess need for changes in the policies to adapt to the changes in the market conditions and aligns the same to the business of the Company. The Management, through its interaction and training to concerned employees, aims to maintain a disciplined and constructive control environment in which concerned employees understand their roles and obligations. The Audit Committee oversees how the Management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks to which the Company is exposed. The Audit Committee is assisted in its role by the internal auditor, wherever required. Internal auditor undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

a) Credit Risk: Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, mutual funds and financial institutions, foreign exchange transactions and other financial instruments. The Company has adopted a policy of only dealing with counterparties that have sufficiently high credit standards and financial strength. The Company''s exposure and credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions is reasonably spread amongst the several counterparties. Credit risk arising from derivative financial instruments and other balances with banks is limited, and there is no collateral held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by the reputed credit rating agencies.As regards, credit risk for investment in mutual funds, the Company limits its exposure to credit risk by investing mainly in debt schemes issued by the mutual funds, wherein the fund manager invests assets under the Management in highly rated instruments, which are of high credit ranking from rating agency like CRISIL or the equivalent ratingagency. The Company monitors changes in credit risk by tracking published external credit ranking. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties from time to time. Credit risk from trade receivables is managed by the Company''s established policy, procedures and control relating to customer credit risk management. Trade receivables are mainly from stockist, distributors and direct customers, and are mostly non-interest bearing. Trade receivables generally ranges from 30 days to 180 days credit term. Credit limits are established for customers based on internal criteria and any deviation in credit limit requires approval of Head of the Department depending upon the quantum and overall business risk. Majority of the customers have been doing business with the Company for more than 3 years, and they are being monitored by individual business managers who deals with those customers. The Management monitors trade receivables on regular basis and takes suitable action, where needed, to control the receivables crossing set criterias/limits. Also, in case of international business, particularly new customers, the Management reviews the business risk by evaluating economic situation of the country and the customers, and generally starts the relation either on advance payment or on the basis of confirmed irrevocable Letter of Credit. The Management does an impairment analysis at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. Further, the Company''s customer base is widely distributed both economically as well as geographically and, in view of the same, the quantum risk also gets spread across wide base, and hence, the Management considers risk with respect to trade receivable as low. "

b) Liquidity Risk: Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times, maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity

position and deploys a robust cash management system. The Company has an established liquidity risk management framework for managing its short-term, medium term and long-term funding, and liquidity management requirements. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash or cash equivalent available to meet all its normal operating commitments in a timely and cost-effective manner. Working capital requirements are adequately addressed by internally generated funds. Trade receivables are kept within manageable levels. The Company aims to maintain the level of its cash and cash equivalents and other highly marketable debt investments at an amount in excess of expected cash outflows on financial liabilities over the next three to six months."

c) 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 conditions. Market risk comprises three types of risks:

I. Interest Rate Risk and,

ii. Equity Price Risk. Financial instruments affected by market risk include borrowings, trade payables, investments, trade receivables, loans and derivative financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

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

ii) Equity Price Risk: The Company does not have any material exposure to equity price risk, as there is no major investment in equity, except in its own subsidiaries, and accordingly, exposure to risk of changes in price is very low. "

The accompanying notes 1 to 48 are integral part of the financial statements

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

For Chaturvedi Sohan & Co.

Chartered Accountants

FRN: 118424W Vishram P Rudre Sudhakar B Tandale

Managing Director Whole Time Director

DIN 08564350 DIN 09083084

Vivekanand Chaturvedi

Partner Vinay Kumar Ghuwalewala Anil Jha

^{MNo: 10}6⁴03

UDIN: 24106403BKBFGK2129

Place : Mumbai Place : Mumbai

Date : 23rd May 2024 Date : 23rd May 2024

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Mar 31, 2023

i Company has not made any non cash allotment/ Bonus issue nor bought back any share during the last five years.

ii None of sharesholder(s) of Company is it''s holding company, ultimate holding company, subsidiaries, associates of the holding company or associates of the ultimate holding company for current year and/or previous year.

iii There are no unpaid calls from any director or officers of the company for current and previous year.

Terms / Rights attached to equity shares :

i Voting :

The Company has 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.

ii Liquidation :

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the 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.

iii Dividend : The Board of Directors do not propose dividend for financial year 2022-23

I) Overdraft / Cash credit loan from ICICI Bank Ltd.

ii) The above facility from Capsave Finance Private Limited is secured by unconditional and irrevocable bank guarantees from subcontractors of the company, duly assigned in favour of financial institution and personal guarantee of Mr. Gulshan Chopra.

Disclosure as per Accounting Standards AS 15

Defined Contribution plan : Company contribution to Provident Fund is charged to the profit and loss account of the year when the contributions to the respective fund are due.

Defined Benefit Plan : Gratuity liabilities are provided for based on acturial valuation. The acturial valuation is done on Projected Unit Credit Method.

Actuarial gains or losses are recognized immediately in the statements of the profit and loss account as income or expense.

32 The office of the Director General of GST Intelligence (DGGI) had carried out a Search and seizure operations at the office of the Company at Mumbai on 6th January, 2021 under the provisions of Section 67 (1) and (2) of CGST Act. The company has challenged the entire search and seizure proceedings and filed a writ petition with the Honorable Gujarat High Court and the matter is sub-judice in law.In View of this we are unable to comment on financial liabilities, arising out of the said procedings. The Company has deposited Rs. 108.40 Lakhs under protest, which is adjusted by department against disputed dues, no provision is made in the books as the company has challanged the action of the department in the Honorable Gujarat High Court.

33 As per lnd AS 109 "Financial instrument" the company is required to consider "Provision for Expected Credit Loss" on all financial assets on the basis of expected probability of Recoverability of such financial instrument. During the year, the company has provided Rs. 1177.52 Lakhs as Expected Credit Loss (ECL), has written off in the financial statement and Rs. 716.52 Lakhs has been transfer from General Reserve & surplus & Net Balance Rs. 461.00 Lakhs as an Expected Credit Loss As per management explanation, the receivable and advance of Rs. 2116.73 Lakhs is in dispute and for balance receivable and advances, the management is following up with the parties and is hopeful for recovery. But in the absence of adequate basis/ supporting documents, we are unable to comment on the measurement of carrying amount of all the financial assets appearing in the financial statements as on 31st March, 2023.

34 In the year ended 31st March, 2023, mainly due to adoption of prudent accounting practices and various contractual reasons the company has reversed contractual revenue and corresponding sub-contracting costs and other direct expenses. The corresponding disputed receipts and payments transactions relating to the said contracts are still unsettled and reflected in the financial statements under the head “Other Current Liabilities” and “Other Current assets”.

35	Contingent Liabilities and Provisions ( to the extent not provided for	Figures in Lakhs (?)
	Particulars	For the year ended 31st March 2023	For the year ended 31st March 2022
	1. Contingent Liabilities a) Income Tax Demands	1,699.43	1,844.36
	Total	1,699.43	1,844.36

37 Details of pending litigation / arbitration claims

Company''s claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances given, receivables, etc is amounting to Rs. 2116.73 Lakhs, which is under arbitration.

38 Trade payables, Trade receivables, Advances received, Advances given, GST Payable / input credit and Income Tax assets (Net of liabilities) are subject to reconciliation and confirmation. The management is the process of reconciling the same

39 In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

40 The Company is engaged primarily in business of civil construction and infrastructure and accordingly there are no separate reportable segments as per Indian Accounting standards (Ind AS) 108 dealing with the segment reporting

41 Company has booked turnover and costs related to joint venture entities and partners in the books of account. However the whole projects have been handled by joint venture partners/entities and related TDS and GST complied by Joint venture partners/entities.

42 The Company has a program of verification to cover all the items of fixed assets in a phased manner, Fixed assets were physically verified by the management during the year.

The accompanying notes 1 to 43 are integral part of the financial statements

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Mar 31, 2018

Note:

1 Company has not made any non cash allotment/ Bonus issue nor bought back any share during the last five years.

2 None of shares holder(s) of Company is it’s holding company, ultimate holding company, subsidiaries, associates of the holding company or associates of the ultimate holding company for current year and/or previous year.

3 There are no unpaid calls from any director or officers of the company for current and previous year

Terms / Rights attached to equity shares:

1 Voting

The Company has 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.

2 Liquidation

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the 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.

3 Dividends

The Board of Directors do not propose dividend for financial year 2017-18

Terms & Security:

(1) Term Loan - From Bank

a) During the year the company has made payment of outstanding loan of Rs. 4044 lakhs (including interest up to 30/12/2014) which was taken from State Bank of India and has been taken over with effect from 30/12/2014 by ASREC (India) Limited . No dues certificate is received by the company. Originally It was secured by Primary first charge on entire Current Assets of the company, present and future, on pari passu basis with other Working Capital consortium banks, and Collateral first Equitable Mortgage/ Hypothecation charge on fixed assets of the Company on pari passu basis including land & building in TTC Industrial Area, Turbhe, Navi Mumbai own by Company and first Equitable Mortgage of land & building at Niraj House, Deonar, Chembur, Mumbai owned by directors & promoters groups.

b) During the year the company has made payment with Union bank of india for outstanding loan .The company has paid the loan and the all charges are cleared No Due certificate is received.The said loan was secured by pari passu charge on the assets of the company.

c) Loan of Rs.5400.00 lakhs is from ICICI Bank Ltd for which security is provided by the subcontractors in the form of bank gurantee .

(2) Term Loan - Others

a) During the year the company has made payment with Kotak mahindra bank ltd for outstanding loan .This loan is fully repaid which was taken from financial instituton in the nature of machinery / equipment finance secured by respective machinery/equipments. And No Dues certificate is received.

Note : A-1

Deferred tax liabilities (Net)

As per Ind AS 12, deferred tax liabilities should be recognised on all taxable temporary differences. The unrealised gain on revaluation of investment is not taxable until sold. But this does not affect accounting treatment and hence revaluation creates a taxable temporary difference. Hence, deferred tax liability is calculated on revaluation of Investment in Canara bank shares at Fair value.

Terms & Security:

1. Bank overdraft/ Cash credit

a) Rs. 176.38 Lakhs overdraft loan from Yes Bank Ltd is secured by primary charge on stocks and trade receivables and colletartal charge on fixed assets of the company and personal guarantees of the directors/promoters of the Company. Interest Rate is 10.75% p.a..

Disclosure of information u/s 22 of The Micro, Small and Medium Enterprises Development Act, 2006

1. In absence of complete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006 ), the Company is unable to compile the full information required to be disclosed herein under section 22 of the said Act.

Note : Trade receivables outstanding for over six months are slow moving and are subject to the outcome of arbitration and/or reconciliation proceedings arising out of various Contractual obligations and are considered good and realisable by Management.

Note:

1 Deposits- Margin money are in the nature of security as earnest money deposits or margin money with bank having fixed maturity period, subject to renew as per requirement to be a security.

Note : A-2

Details of pending litigation / arbitration claims:

Company''s claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances given, receivables, etc is amounting to Rs..13.63 Crores, which is under arbitration.

Disclosure as per Indian Accounting Standards AS 19

In the financial statements prepared under previous GAAP, remeasurement costs of defined benefits plans, arising primarily due to change in actuarial assumptions was recognised as employee benefit expense in the statement of profit and lass. Under Ind AS, such remeasurement costs relating to defined benefit plans is recognised in Other comprehensive Income as per the requirements of Ind AS 19, Employee benefits.

Thus, Actuarial gain/ (loss) in case of Gratuity liability is reclassified from Profit and loss A/c to Other comprehensive income for the years ending 31.03.2016 & 31.03.2017.

Note : A-3 Set off of advance tax and prepaid taxes against provisions made:

The advance tax, Tax deducted at Source and other prepaid taxes and provisions thereof are shown on net basis for both VAT and Income Tax.

Note : B-1 Segment Reporting:

a) The main business activities of company are that of execution of Infrastructure development Project through fixed price contracts. The same is considered as single segment by the Company in terms of guidelines provided in Accounting Standard 17.

b) During the year under review, the company has been operating in India and the same is considered as single geographical segment for the purpose of disclosures.

c. Disclosure of transaction between the Company and Related Parties:

The details of transactions executed between the Company and related parties during the financial year 2017-18 is as per Annexure 1 attached.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

Note : B-2: In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

Note : B-3 Details of pending litigation / arbitration claims:

Company’s claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances given, receivables, etc is amounting to Rs.13.63 Crores, which is under arbitration.

Note : B-4 The balances on all personal accounts are subject to confirmation by the parties and reconciliation, if any

Note : B-5. Previous year’s figures have been shown regrouped / rearranged, where considered necessary.

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Mar 31, 2016

NOTES ANNEXED TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31st March 2016. Note -PART - A

NOTES TO ACCOUNTS

Note:

1 Company has not made any non cash allotment/ Bonus issue nor bought back any share during the last five years

2 None of shareholder(s) of Company is it''s holding company, ultimate holding company, subsidiaries, associates of the holding company or associates of the ultimate holding company for current year and/or previous year.

3 There are no unpaid calls from any director or officers of the company for current and previous year

Terms / Rights attached to equity shares:

4 Voting

The Company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share.

5 Liquidation

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the 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

6 Dividends

The Board of Directors do not propose dividend for financial year 2015-16

Terms & Security:

(1) Term Loan - From Bank

a) Rs. 4044 lakhs was loan(including interest up to 30/12/2014) from State Bank of India and has been taken over with effect from 30/12/2014 by assets reconstruction company ASREC (India) Limited as per Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002). It is secured by Primary first charge on entire Current Assets of the company, present and future, on pari passu basis with other Working Capital consortium banks(SBI Share 60.53%), and Collateral first Equitable Mortgage/ Hypothecation charge on fixed assets of the Company on pari passu basis including land & building in TTC Industrial Area, Turbhe, Navi Mumbai own by Company and first Equitable Mortgage of land & building at Niraj House, Deonar, Chembur, Mumbai owned by directors & promoters groups.

b) Rs. 419.69 lakhs was loan (including interest till 31/03/2014) from IDBI Bank Ltd and has been taken over with effect from 01/04/2014 by assets reconstruction company ARCIL Limited as per SARFAESI Act 2002. This loan are secured by first charge on entire current assets, present and future on pari pasu basis and Collateral charges on fixed assets, factory land and building at Turbhe, and Land and building at Niraj House at Chembur on pari passu basis and also with personal guarantees given by directors / promoters to the bank.

c) Loan of Rs. 1000 lakhs is from ICICI Bank Ltd for which security is provided by Patel Engineering Limited

d) Loan of Rs. 4463.69 lacs (as mentioned in (a) and (b) above) is already defaulted in repayment of principal and interest and bank classify it as NPA. However management seek for restructuring and settlement with bank and prepared Financial Statement on Going Concern basis

(2) Term Loan - Others

a) This loan is taken from financial institution in the nature of machinery / equipment finance secured by respective machinery /equipments & repayable over a period of third year from balance sheet date. The Rate of Interest is 17% p.a.

Terms & Security:

1. Bank overdraft/ Cash credit

a) Rs. 198.80 Lakhs overdraft loan from Yes Bank Ltd is secured by primary charge on stocks and trade receivables and collateral charge on fixed assets of the company and personal guarantees of the directors/promoters of the Company. Interest Rate is 10.75% p.a.

b) Rs. 890.35 Lakhs is Loan from Union Bank of India included in current maturities of long term borrowing, against invocation of performance bank guarantees and secured by pari passu charge on the assets of the company. Rate of Interest is 17.25% p.a.

Note: A-7

Disclosure of information u/s 22 of The Micro, Small and Medium Enterprises Development Act, 2006

1. In absence of complete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006), the Company is unable to compile the full information required to be disclosed herein under section 22 of the said Act.

Note: A-8

Note: Trade receivables outstanding for over six months are slow moving and are subject to the outcome of arbitration and/or reconciliation proceedings are arising out of various Contractual obligations and are considered good and realizable by Management.

Note:

9 Deposits- Margin money are in the nature of security as earnest money deposits or margin money with bank having fixed maturity period, subject to renew as per requirement to be a security.

Disclosure as per Accounting Standards AS 15

10 Defined Contribution plan: Company contribution to Provident Fund is charged to the profit and loss account of the year when the contributions to the respective fund are due.

11 Defined Benefit Plan: Gratuity liabilities are provided for based on actuarial valuation. The Actuarial valuation is done on Projected Unit Credit method.

Actuarial gains or losses are recognized immediately in the statements of the profit and loss account as income or expense.

The assumptions, workings based on which gratuity liability is recognized and provided/reversed for is as below:

Note: C-12 Set off of advance tax and prepaid taxes against provisions made:

The advance tax, Tax deducted at Source and other prepaid taxes and provisions thereof are shown on net basis for both VAT and Income Tax.

Note: C-13 Segment Reporting:

a) The main business activities of company are that of execution of Infrastructure development Project through fixed price contracts. The same is considered as single segment by the Company in terms of guidelines provided in Accounting Standard 17.

b) During the year under review, the company has been operating in India and the same is considered as single geographical segment for the purpose of disclosures.

c. Disclosure of transaction between the Company and Related Parties:

The details of transactions executed between the Company and a related party during the financial year 2015-16 is as per Annexure 1 attached.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

Note: C-14: In the opinion of the Board, except otherwise stated all assets other than fixed assets and noncurrent investments, have a realizable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

Note: C-15 there have been defaults or continuing default in repayment of dues to the banks or financial institutions during the year.

Note: C-16 Details of pending litigation / arbitration claims:

Company''s claim for work done, material supply, final bill claims, retentions, mobilization/ material advances given, receivables, etc is amounting to Rs. 80.44 Crores, which is under arbitration.

Note: C-17 The balances on all personal accounts are subject to confirmation by the parties and reconciliation, if any

Note: C-18. Previous year''s figures have been shown regrouped / rearranged, where considered necessary.

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Mar 31, 2015

1. Share Capital

Terms / Rights attached to equity shares:

1 Voting

The Company has 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.

2 Liquidation

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the 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

3 Dividends

The Board of Directors do not propose dividend for financial year 2014-15

2. As at 31 March As at 31 March 2015 2014 Contingent liabilities and commitments (to the extent not provided for) Rs. Rs.

(1) Contingent Liabilities

(a) Guarantees 27,153,047 52,160,700

Company has counter guarantees from the sub contractor for the same - 52,160,700

(2) Commitments - -

Total 27,153,047 52,160,700

3. Set off of advance tax and prepaid taxes against provisions made:

The advance tax, Tax deducted at Source and other prepaid taxes and provisions thereof are shown on net basis for both VAT and Income Tax.

4. Segment Reporting:

a) The main business activities of company are that of execution of Infrastructure development Project through fixed price contracts. The same is considered as single segment by the Company in terms of guidelines provided in Accounting Standard 17.

b) During the year under review, the company has been operating in India and the same is considered as single geographical segment for the purpose of disclosures.

5. Related Parties Disclosure:

Disclosures for transactions with related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are as follows :

a. Disclosure of transaction between the Company and Related Parties:

The details of transactions executed between the Company and related parties during the financial year 2014-15 is as per Annexure 1 attached.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

6. In the opinion of the Board,except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

7. Details of pending litigation / arbitration claims:

Company's claim for work done, material supply, final bill claims, retentions, mobilisation/ material advances given, receivables, etc is amounting to Rs. 80.44 Crores, which is under arbitration.

8. The balances on all personal accounts are subject to confirmation by the parties and reconciliation, if any Note : C-11. Previous year's figures have been shown regrouped / rearranged, where considered necessary.

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Mar 31, 2014

Note:1

As at 31 March 2014 As at 31 March 2013 Rs. Rs.

Contingent liabilities and commitments (to the extent not provided for)

(1) Contingent Liabilities

(a) Guarantees Company has 52,160,700 185,200,400 counter guarantees from the sub contractor for the same 52,160,700 185,200,400

(2) Commitments - -

Total 52,160,700 185,200,400

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Mar 31, 2013

Note : A-1 Set off of advance tax and prepaid taxes against provisions made:

The advance tax, Tax deducted at Source and other prepaid taxes and provisions thereof are shown on net basis for both VAT and Income Tax.

Note : A-2 Segment Reporting:

a) The main business activities of company are that of execution of Infrastructure development Project through fixed price contracts. The same is considered as single segment by the Company in terms of guidelines provided in Accounting Standard 17. .

b) During the year under review, the company has been operating in India and the same is considered as single geographical segment for the purpose of disclosures.

Note : A-3 Related Parties Disclosure:

Disclosures for transactions with related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are as follows :

c. Disclosure of transaction between the Company and Related Parties:

The details of transactions executed between the Company and related parties during the financial year 2012-13 is as per Annexure 1 attached.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

Note : A-4 There have been defaults or continuing default in repayment of dues to the banks or financial institutions during the year.

Note : A-5 The balances on all personal accounts are subject to confirmation by the parties and reconciliation, if any

Note : A-6 In the opinion of the Board, except otherwise stated all assets other than fixed assets and noncurrent investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

Note : A-7. Previous year''s figures have been shown regrouped / rearranged, where considered necessary.

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Mar 31, 2012

Note:

1 Company has not made any non cash allotment/ Bonus issue nor bought back any share during the last five years

2 None of sharesholder(s) of Company is it's holding company, ultimate holding company, subsidiaries, associates of the holding company or associates ofthe ultimate holding company for current year and/or previous year.

3 There are no unpaid call from any director or officers ofthe company for current and previous year Terms / Rights attached to equity shares:

1 Voting

The Company has 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.

2 Liquidation

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the 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

3 Dividends

The Board of Directors do not propose dividend for financial year 2011-12

Note:

Company had made preferential allotment in financial year 2010-11, of 4.5 Lakhs Equity shares having nominal value of Rs.10/- each with samilar right and restriction as earlier equity shares, at premium of Rs.67/- each.

Terms & Security:

(1) Term Loan - From Bank

a) Rs 290.41 lakhs is in the nature of machinery/equipment finance secured by hypothecation of respective machinery/equipment/assets

b) Rs.891.00 Lakhs is encashment of bank guarantees secured by pari passu charge on the assets ofthe company.

c) Balance term loan amounting to Rs 1201.82 lakhs from the banks disbursed directly to sub contractors, together with interest and other charges thereon, are secured by bank guarantee given by the sub contractor and assigned to the bank for which company has given counter guarantee .

d) All secured term loan are repayable over a period of second and third year from balance sheet date

e) Interest rate for all term loan are subject to periodic review.

(2) Term Loan - Others

a) Rs118.05 lakhs Loan is from financial instituton in the nature of machinery / equipment finance secured by respective machinery/equipments & repayable over a period of second and third year from balance sheet date

Terms & Security:

1. Bank overdraft/ Cash credit

a) Rs.3019.37 lakhs is secured by primary charge on entire current including stocks and trade receivables and colletartal charge on fixed assets ofthe company and personal guarantees ofthe directors/promoters ofthe Company .

b) Rs.1107.63 lakhs is procured for Ludhiana Project and secured by all current and non current assets ofthat projects and personal guarantees of directors/promoters ofthe Company.

Disclosure of information u/s 22 ofThe Micro, Small and Medium Enterprises Development Act, 2006

1. In absence of incomplete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006 ), the Company is unable to compile the full information required to be disclosed herein under section 22 ofthe said Act.

Note :

Trade receivables outstanding for over six months are slow moving and are subject to the outcome of arbitration and reconciliation proceedings arising out of various Contractual obligations and are considered good and realisable by Management.

Note : A - 1

Contingent liabilities and commitments As at March 31st 2012 As at March 31st 2011 (to the extent not provided for)

(1) Contingent Liabilities

(a) Guarantees 259,143,732 302,935,000

Company has counter guarantees from the sub contractor for the same 259,143,732 302,935,000

(2) Commitments - -

Total 259,143,732 302,935,000

Disclosure as per Accounting Standards AS 15

1. Defined Contribution plan : Company contribution to Provident Fund is charged to the profit and loss account ofthe year when the contributions to the respective fund are due.

2. Defined Benefit Plan : Gratuity liabilities are provided for based on actuarial valuation. The Actuarial valuation is done on Projected Unit Credit method.

Actuarial gains or losses are recognized immediately in the statements ofthe profit and loss account as income or expense.

The assumptions, workings based on which gratuity liability is recognized and provided/reversed for is as below:

Note : A-1. Setoff of advance tax and prepaid taxes against provisions made:

The advance tax, Tax deducted at Source and other prepaid taxes and provisions thereof are shown as Net of Taxes for the earlier years for both VAT and Income Tax.

Note:A-2. Segment Reporting:

a) The main business activities of company are that of execution of Infrastructure development Project through fixed price contracts. The same is considered as single segment by the Company in terms of guidelines provided in Accounting Standard 17.

b) Duringthe year under review, the company has been operating in India and the same is considered as single geographical segment for the purpose of disclosures.

Note : A-3. Related Parties Disclosure:

Disclosures for transactions with related parties as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India are as follows:

c) Disclosure of transaction between the Company and Related Parties:

The details of transactions executed between the Company and related parties duringthe financial year 2011-12 is as per Annexurel attached.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

Note: A-4. There have been defaults in repayment of dues to the banks during the year, which have been subsequently made good and paid. On the year end there have been no continuing defaults in repayment of dues to the banks.

Note : A-5. The balances on all personal accounts are subject to confirmation by the parties and reconciliation, if any

Note: A-6. In the opinion of the Board, except otherwise stated all assets other than fixed assets and non current investments, have a realisable value in the ordinary course of business which is not different from the amount at which it is stated. The provision for current liabilities and other liabilities is adequate and not in excess of amount reasonably necessary.

Note : A-7. Previousyear'sfigures have been shown regrouped/rearranged, where considered necessary.

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Mar 31, 2010

1. Disclosure as per Accounting Standard AS -15:

Defined Contribution Plan:

Company contribution to Provident fund is charged to profit and loss account of the year when the contributions to the respective funds are due.

I. Defined Benefit Plan: Gratuity liabilities are provided for based on actuarial valuation. The Actuarial valuation is done on Projected Unit Credit method. Actuarial gains or losses are recognized immediately in the statements of the profit and loss account as income or expense.

2. Contingent liability not provided for:

i. The value of Bank guarantees given by the company for various purposes outstanding as on 31.3.2010 is Rs.9304.26 lakhs (Previous year Rs. 6312.45 Lakhs). The company has given counter guarantee for the same amount.

ii. The Sub Contractors have submitted Bank Guarantees to the Company for Mobilisation advances received by them, these Bank Guarantee has been assigned to M/s AXIS Bank Ltd who has in turn advanced monies to the Company. The outstanding guarantee as on 31.3.2010 is Rs. 2200.23 Lacs (Previous year NIL)

iii. Disputed Income tax demanded for which appeal is pending before the relevant Appellate Authorities is Rs.282,85 lakhs as detailed in para 9 below.

iv. Disputed ESIC demanded for which appeal is pending before the relevant Appellate Authorities is Rs.5.6 lakhs as detailed in para 10 below.

3. a) Term loans:

i) Secured loans amounting to Rs. 205.46 lakhs (previous year Rs.209.85 lakhs) from the financial institutions and banks together with interest and other charges thereon, are secured by a mortgage of a part of the companys immovable assets, both present and future.

ii) Secured Loan from Axis Bank of Rs.2200.23 lakhs (previous year - Nil) disbursed directly to sub-contractor, which are secured by Bank Guarantee of Sub-contractors.

iii) Secured Loan from others amounting to Rs.275.00 lakhs are Inter Corporate Deposit/Loan against hypothecation of Promoters shares

b) Cash Credit/Bank Overdraft facility from bank (outstanding amount of Rs.3609.97 lakhs) together with interest and other charges thereon, are secured by hypothecation of stock / book debts/Bills, other collaterals assets and personal guarantees of promoter directors of the company.

4. Other additional Quantitative information pursuant to para 3,4-C, and 4-D of part - II of Schedule VI of the Companies Act, 1956 is not ascertainable and amenable and hence not included in the Report.

5 .Set off of advance tax and prepaid taxes against provisions made:

The advance tax, Tax deducted at Source and other prepaid taxes and provisions thereof are shown as Net of Taxes (both for VAT and Income tax) for the earlier years.

6. In absence of incomplete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006 ), the Company is unable to compile the full information required to be disclosed herein under section 22 of the said Act.

7. Segment Reporting:

a) The main busi ness activities of company are that of execution of Infrastructure development Project through fixed price contracts. The same is considered as single segment by the Company in terms of guidelines provided in Accounting Standard 17.

b) During the year under review, the company has been operating in India and the same is considered as single geographical segment for the purpose of disclosures.

8. Disclosure of transaction between the Company and Related Parties: The details of transactions executed between the Company and related parties during the financial year 2009-10 is as per ARSS.

The above information has been determined to the extent such parties have been identified on the basis of information provided by the Company, which has been relied upon by the auditors.

Details for Value of Imported and Indigenous Raw materials and spare parts and components consumed and % thereof is not included as the same is not applicable.

Raw Materials Rs NIL Lakhs (Previous Year NIL)

9. Expenditure in Foreign currency during the financial year on account of Royalty, Know how fees, professional and consultation fees , interest and other matters:

a. Travel Rs. NIL(previousyearRs. NIL)

10.The amount remitted during the year in Foreign currency on account of:

a. Dividend NIL (previousyear NIL)

b. No. of Non Resident Shareholders NIL (Previousyear NIL)

11. Earnings in foreign Currency:

a. Exports of goods calculated on F.O.B. basis - NIL (previousyear NIL).

b. Royalty, Know how, professional fees and Consultation fees - NIL (Previous year NIL).

c. Interest and Dividend -NIL (Previous year NIL)

d. Other Income -NIL (Previous year NIL)

12.The balances on all personal accounts are subject to confirmation by the parties and reconciliation, if any.

13.As required by Accounting Standard 22 " Accounting for Taxes on Income" issued by the Institute Of Chartered Accountants Of India, which is mandatory in nature, the Company has recognized Deferred taxes which result from the timing difference between the Book Profits and Tax Profits. As a result the deferred tax assets for the year aggregating Rs. 6.91 lakhs has been recognised in the Profit and Loss Account.

14. In the opinion of the management, the current assets, loans and advances are approximately stated if realized in the ordinary course of business. The provisions for current liabilities and all other liabilities is adequate and not in excess of the amount reasonably necessary.

15. Previous years figures have been regrouped / recast/ rearranged, wherever necessary.