Notes to Accounts of Sanghvi Movers Ltd.

Mar 31, 2025

(xi) Provisions and Contingent Liabilities

The Company estimates the provisions that have
present obligations as a result of past events,
and it is probable that an outflow of resources
will be required to settle the obligations. These
provisions are reviewed at the end of each
reporting date and are adjusted to reflect the
current best estimates.

The Company uses significant judgement to
disclose contingent liabilities. Contingent
liabilities are disclosed when there is a possible
obligation arising from past events, 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 a present obligation that arises
from past events where it is either not probable
that an outflow of resources will be required to
settle the obligation or a reliable estimate of
the amount cannot be made. Contingent assets
are neither recognized nor disclosed in the
standalone financial statements.

(xii) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided
to the chief operating decision maker. The Board

of directors monitors the operating results
of all segments separately for the purpose of
making decisions about resource allocation and
performance assessment. Segment performance
is evaluated based on profit and loss and is
measured consistently with profit and loss in the
Summary Statements.

The operating segments have been identified on
the basis of the nature of services. Further:

i. Segment revenue includes sales and other
income directly identifiable with / allocable
to the segment. Expenses that are directly
identifiable with / allocable to segments
are considered for determining the
segment result.

ii. Expenses which relate to the Company as
a whole and not allocable to segments are
included under unallocable expenditure.

iii. Income which relates to the Company as a whole
and not allocable to segments is included in
unallocable income.

iv. Segment assets and liabilities include those
directly identifiable with the respective
segments. Unallocable assets and liabilities
represent the assets and liabilities that relate
to the Company as a whole and not allocable to
any segment.

(ii) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has only one class of equity shares having par value of I NR 1 per share (March 31, 2024: INR 2 per
share). Each shareholder is entitled to one vote per share held. They entitles the holders to participate in dividends and dividend,
if any declared is payable in Indian Rupees.

The Board of Directors, in their meeting on May 20, 2025, proposed a final dividend of INR 2 per equity share (Face Value:
INR 1 per share) for the year ended March 31, 2025 which is subject to approval of the shareholders in the ensuing Annual
General Meeting.

I n 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.

Nature and purpose of reserves

A) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of
the Companies Act, 2013.

B) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified
percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution
in a given year is more than 10% of the paid-up capital of the group for that year, then the total dividend distribution is less than
the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily
transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously
transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

C) Capital Reserve

As per the provisions of the erstwhile Companies Act 1956, the Company created Capital reserve on forfeiture of share call
money in previous financial years. The amount can be utilised only in accordance with the specific requirements of Companies
Act, 2013.

D) Surplus in the Statement of Profit and Loss

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other
distributions paid to investors.

v) Yes Bank Limited INR 1,075.94 Lakhs (March 31, 2024: INR 1,465.23 Lakhs), carrying interest rate 7.75% (March 31,
2024: 7.75%) repayable in 1 to 29 monthly installments. Such loans are hypothecated against Plant & Equipment (1 No.
Crane).

vi) Yes Bank Limited INR 320.35 Lakhs (March 31, 2024: INR 492.17 Lakhs), carrying interest rate 8.40% (March 31, 2024:
8.40%) repayable in 1 to 20 monthly installments. Such loans are hypothecated against Plant & Equipment (33 Prime
Movers).

vii) IDFC First Bank Limited INR 6,341.88 Lakhs (March 31, 2024: INR 6,268.18 Lakhs), carrying interest rate ranging from
9.25% (March 31, 2024: 9.00% to 9.95%) repayable in 1 to 58 monthly installments. Such loans are hypothecated
against Plant & Equipment (21 No. Cranes).

viii) ICICI Bank Limited INR 12,103.92 Lakhs (March 31, 2024: INR 1,791.95 Lakhs), carrying interest rate of 8.90% (March
31, 2024: 8.75%) repayable in 1 to 59 monthly installments. Such loans are hypothecated against Plant & Equipment
(32 No. Cranes).

8. (b) The Company has obtain term loans from bank during current financial year. The purpose for which said loans were taken
and details of end use are as below:

18. (a) Term loans & deferred payment liabilities include:-

i) Saraswat Co-Opeartive Bank Limited I NR 17,018.02 Lakhs (March 31, 2024: INR 11,658.27 Lakhs), carrying interest
rate ranging from 9.20% to 9.25% (March 31, 2024: 9.00% to 9.35%) repayable in 1 to 59 monthly installments. Such
loans are hypothecated against Plant & Equipment (27 Nos. Cranes) and registered mortgage on land and buildings
at Tathawade.

ii) Kotak Mahindra Bank Limited INR 2,164.07 Lakhs (March 31, 2024: INR 2,869.04 Lakhs), carrying interest rate ranging
from 7.27% to 7.30% (March 31, 2024: 7.27% to 7.30%) repayable in 1 to 40 monthly installments. Such loans are
hypothecated against Plant & Equipment (2 Nos. Cranes).

iii) HDFC Bank Limited INR 2,813.99 Lakhs (March 31, 2024: INR 2,134.34 Lakhs), carrying interest rate 9.00% to 9.25%
(March 31, 2024: 9.25%) repayable in 1 to 57 monthly or quarterly installments. Such loans are hypothecated against
Plant & Equipment (8 Nos. Cranes).

iv) Indusind Bank Limited INR 2,866.67 Lakhs (March 31, 2024: INR 3,429.14 Lakhs), carrying interest rate 8.75% (March
31, 2024: 9.90%) repayable in 1 to 44 monthly installments. Such loans are hypothecated against Plant & Equipment (2
No. Cranes).

32. Earnings per share ("EPS")

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into equity shares.

Pursuant to the approval of the members at the 35^th Annual General Meeting of the Company held on 03 September 2024,
each equity share of face value of INR 2/ each were split into two equity shares of INR 1/- with effect from the record date, 27
September 2024. Consequently, basic and diluted earnings per share have been computed for prior periods, presented in the
financial results of the company, in accordance with Ind AS 33 - ''Earnings per share''.

xi) Compensated Absences:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation.
Compensated Absences debited to Statement of Profit and Loss during the year amounts to INR 21.77 lakhs (March 31, 2024:
INR 17.87 lakhs) and is included in Note 28 - ''Employee benefits expenses''. Accumulated current provision for leave encashment
aggregates to INR 115.25 lakhs (Previous year INR 105.71 lakhs).

34. Leases

The Company incurred INR 461.52 Lakhs** (March 31, 2024 INR 408.07 Lakhs**) for the year ended towards expenses relating to
short term leases and leases of low-value assets.

** excluding expense related to discontinued operations amounting to INR 12.62 Lakhs (March 31, 2024 - INR 4.58 Lakhs)"

(D) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding
balances at the year-end are unsecured and interest free except for borrowings and settlement occurs in cash. There have been
no guarantees provided or received for any related party receivables or payables except as disclosed above.

36. Disclosure pursuant to Ind AS 105 "Non-Current Assets Held for Sale and Discontinued
Operations

The Board of Directors of the Company has approved vide its resolution dated August 07, 2024, slump sale of renewable energy
business to Sangreen Future Renewables Private Limited, the wholly owned subsidiary of the Company with effect from October
01, 2024. Further, the Company has executed the Business Transfer Agreement (""BTA"") on October 25, 2024, regarding transfer
of renewable business for a consideration of INR 4,306.05 lakhs. Accordingly, the renewable energy business is disclosed
as discontinued operations in the profit and loss account and previous period is restated to give effect to the presentation
requirement in accordance with IND AS 105 - Non-Current Assets Held for Sale and Discontinued Operations.

The slump sale is at book value considering it to be common control transaction in accordance with Appendix C of IND AS -103
- Business Combination and accordingly there is no impact on statement of profit and loss and the financial position of balance

The Company''s significant revenues are derived from one customer (March 31, 2024: two customer) contributing 10% or more to
the company''s revenue represented approximately INR 6,692.25 Lakhs (March 31, 2024: INR 13,667.74 Lakhs) of the Company''s
total revenue from operations.

The requirements for disclosure of segment information based on quantitative thresholds is met during the year for the first
time and accordingly in accordance with Ind AS 108 "Operating Segments", segment information is disclosed for all the periods
presented in this audited standalone financial results.

38. Fair values of financial assets and financial liabilities

The fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, security deposits, interest
accrued on fixed deposits, trade receivables, unbilled receivables, loans, interest accrued on ICDs given, investments, trade
payables, interest accrued but not due on borrowings, accrued employee liabilities, short-term borrowings, capital creditors,
interest payable on unsecured Loans and other financial liabilities approximate the carrying amounts because of the short term
nature of such financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of security deposits, fixed deposit
accounts with maturity for more than 12 months from balance sheet date are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and
other financial assets.

39. Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

• Level 2 - Inputs 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 for the assets or liabilities that are not based on observable market data (unobservable inputs).

(c) Fair Value of financial assets and liabilities measured at amortised cost

The fair value of cash and cash equivalents, trade receivables, Unbilled receivables, loans, other current financial assets, trade
payables, short-term borrowings and other financial liabilities approximate the carrying amounts because of the short term
nature of these financial instruments.

The amortized cost using effective interest rate (EIR) of non-current financial assets consisting of investments in equity instruments,
security and term deposits and of non current financial liabilities consisting of borrowings received are not significantly different
from the carrying amount.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

40. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise Borrowings and trade and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations and to support its operations. The Company''s principal financial assets
include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to various financial risks. These risks are categorized into market risk, credit risk and liquidity risk. The
Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash
flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) 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. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(B) 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. Credit risk arises principally from the Company''s trade receivables, receivables from deposits and also
arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value
of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company
assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and
retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Management reviews the
bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.
The maximum exposure to the credit risk as at the reporting period is primarily from trade receivables amounting to INR 17,559.93
Lakhs and INR 12,693.97 Lakhs as at March 31, 2025 and March 31, 2024 respectively. Trade receivables are typically unsecured
and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company
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. On account of adoption of Ind AS 109 - Financial Instruments
("Ind AS 109"), the Company uses expected credit loss (ECL) model to assess the impairment loss. The Company computes the
expected credit loss allowance for trade receivables based on available external and internal credit risk factors such as the ageing
of its dues, market information about the customer, industry information and the Company''s historical experience for customers
with forward looking experience.

(C) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

As at March 31, 2025, the Company had a working capital of INR 22,053.79 Lakhs (March 31, 2024: INR 16,941.56 Lakhs). The
working capital of the Company for this purpose has been derived as follows:

(i) Mainly due to provision created for slow and non moving inventory in books of account post submission of statement to bank and
exclusion of refurbished stock in statement.

(ii) Mainly due to unbilled revenue details submitted to bank includes only for the month for which statement is filed while unbilled
revenue as per books of account included all unbilled revenue oustanding as at the end of reporting period and additional
allowance for bad and doubtful debts created in books of account post submission of statement to bank.

43. Relationship with Struck off Companies under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956,

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of the Companies Act, 1956.

45. Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of Layers) Rules, 2017.

46. Utilisation of Borrowed funds and share premium:

(i) 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"

(ii) 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

(i) Claims against the Company not acknowledged as debts comprises of claims raised on Company by it''s customers or vendors for
breach of contracts, and by certain government authorities on account of road taxes, raod accident by SML''s Trailer and charges
for conversion fees for land aggregating to INR 209.18 Lakhs (March 31, 2024 - INR 208.44 Lakhs). The Company has been advised
by its legal counsel that it is possible, but not probable, that action will succeed in respect of claims against the Company. These
claims are being contested in the courts by the Company. The Management does not expect these claims to succeed. Accordingly,
no provision for the contingent liability has been recognised in the financial statements.

49. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity
reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximize the
shareholder value and to ensure the Company''s ability to continue as a going concern.

The Company has distributed dividend to its shareholders during this Financial Year. The Company monitors gearing ratio i.e. total
debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of borrowings from various banks /
financial institutions. The Company manages the capital structure and makes adjustments to it in the light of changes in economic
conditions and the risk characteristics of the underlying assets.

(ii) The Company has received favourable order in respect of Order of Assessment for FY 2008-09 towards VAT and CST liability
regarding transfer of right to use the goods. Accordingly the Demand Notice issued by Asst. Commissioner of Sales Tax (PUN-
INV-D-007) Pune in respect of Order of Assessment of Tax under Central Sales Tax, 1956 for Financial Year 2008-09 towards VAT
liability under CST Act and VAT liability under MVAT Act, 2002 aggregating to INR 120.26 Crores regarding "transfer of right to use
the goods" stands rejected.

Based on favourable judgments for F.Y. 2008-2009, the management believes that rendering Crane Services on rental basis does
not involve "transfer of right to use goods" so as to fall under the purview of VAT or Sales tax. As the Company never passes
effective control and possession of its cranes to its customers, the question of levying VAT or CST does not arise. Accordingly
company believes that order of Assessment for FY 2007-08, FY 2009-10, FY 2010-11, FY 2012-13, FY 2013-14, FY 2014-15, FY 2015¬
16, FY 2016-17 and FY 2017-18 towards VAT and CST liability regarding transfer of right to use the goods would be decided in favor
of company.

Also the management relied on the recent judgement issued by Supreme Court on 9^th January, 2024 related to applicability of
Sales Tax / VAT on renting out Trailers / cranes. Wherein the apex court recorded in its Order that a sale transaction can be subject
to either service or sales tax, and the sale transaction cannot be subjected to both taxing statutes. Accordingly, supreme court
allow the appeals by holding that the contracts are not covered by the relevant provisions of the Sales Tax Act and of the VAT Act,
as the contracts do not provide for the transfer of the right to use the goods.

(iii) I ncome tax matters comprise demand from the tax authorities for the payment of additional tax of INR 20.71 Lakhs (March
31, 2024: INR 18.27 Lakhs) upon completion of their tax reviews for the various financial years. The tax demands are mainly
on account of TDS liability under the Income Tax Act and disallowances of certain expenses. The matter is pending before the
Assessing Officer of Income Tax.

(iv) The Company has received notice of demand in respect of FY 2017-18 to FY 2021-22 towards GST liabilities regarding disallowance
of input tax credits, unreconciled turnover, ifference in tax payment in reconciliation. The matters are pending before
various forums.

The Company is contesting the above demands of Sales tax, VAT, Income tax and Goods and Services Tax and the management,
including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued
in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding
will not have a material adverse effect on the Company''s financial position and results of operations.

Contingent assets are neither recorded nor disclosed in the financial statements.

52. Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of
its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The
areas for CSR activities are as described below. A CSR committee has been formed by the company as per the Act. The funds are
utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

53. Audit Trail

In regard to financial accounting software:

The Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail
(edit log) facility and the same has been operated throughout the year for all the relevant transactions recorded in the software
except that in absence of sufficient and appropriate audit evidence including adequate coverage in SOC report we are unable
to comment on audit trail at database level. Further, we did not come across any instance of audit trail feature being tampered
with in respect of such accounting software except for above. Additionally, the audit trail of prior year has been preserved by the
Company as per the statutory requirements for record retention to the extent it was enabled and recorded in respective years.

In regard to Payroll application:

The Company has used an accounting software for maintaining its payroll records, which is managed and maintained by a third-
party software service provider. However, in absence of sufficient and appropriate audit evidence including adequate coverage in
SOC report we are unable to comment whether the accounting software has a feature of recording audit trail (edit log) facility and
whether the same has operated throughout the period for all relevant transactions recorded in the software or whether there is
any instance of audit trail feature being tampered with. Additionally, we are unable to comment whether the audit trail of prior
year has been preserved as per the statutory requirements for record retention.

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

55. The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or
disclosed as income during the year (and previous 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.

56. The company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.

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

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

59. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements
are duly executed in favour of the lessee), as disclosed in note 3.1 to the financial statements, are held in the name of the company.

60. The Code on Social Security 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits
received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on
which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The
Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code
becomes effective.

61. The other requirements of the Schedule III of the Companies Act, 2013 not specifically disclosed are either Nil or not applicable
to the Company.

62. No Significant subsequent events have been observed which may require an adjustment to the standalone financial statements.

63. Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of
the Act.

As per our report of even date For and on behalf of the Board of Directors of

For M S K A & Associates Sanghvi Movers Limited

Chartered Accountants CIN: L29150PN1989PLC054143

Firm Registration No.:105047W

Nitin Manohar Jumani Rishi Sanghvi Madhu Dubhashi

Partner Chairman & Managing Director Director

Membership No: 111700 DIN: 08220906 DIN: 00036846

Place: Pune Place: Pune

Date: May 20, 2025 Date: May 20, 2025

Rajesh Likhite Sham Kajale

Company Secretary & Chief Compliance Officer Chief Financial Officer

Membership No - A-13151

Place: Pune Place: Pune Place: Pune

Date: May 20, 2025 Date: May 20, 2025 Date: May 20, 2025

---

Mar 31, 2024

(xi) Provisions and Contingent Liabilities

The Company estimates the provisions that have present obligations as a result of past events, and it is probable that an outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting date and are adjusted to reflect the current best estimates.

The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past

events, 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 a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the financial statements.

(xii) Segment Reporting

Segments are identified based on the manner in which the Chief Operating Decision Maker (''CODM'') decides about resource allocation and reviews performance. Segment results that are reported to the CODM include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

The Company is primarily engaged in the business of providing cranes on rental basis. Further all the commercial operations of the Company are based in India (Refer Note 36). Performance is measured based on the management accounts as included in the internal management reports that are reviewed by the Company''s chairman and Managing Director. Accordingly, there is no separate reportable segments.

As per our report of even date For and on behalf of the Board of Directors of

For M S K A & Associates Sanghvi Movers Limited

Chartered Accountants CIN: L29150PN1989PLC054143

Firm Registration No.:105047W

Nitin Manohar Jumani Rishi Sanghvi Sham Kajale

Partner Chairman & Managing Director Chief Financial Officer

Membership No: 111700 DIN: 08220906 PAN: AAUPK7774R

Rajesh Likhite Madhu Dubhashi

Company Secretary & Chief Compliance Officer Director

PAN: ABDPL6323M DIN: 00036846

Place: Pune Place: Pune Place: Pune

Date: May 16, 2024 Date: May 16, 2024 Date: May 16, 2024

(ii) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has only one class of equity shares having par value of '' 2 per share. Each shareholder is entitled to one vote per share held. They entitles the holders to participate in dividends and dividend, if any declared is payable in Indian Rupees. The Board of Directors, in their meeting on May 16, 2024, proposed a final dividend of '' 6 per equity share for the year ended March 31, 2024 which is subject to approval of the shareholders in the ensuing Annual General Meeting. 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.

Nature and purpose of reserves

A) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act,2013.

B) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the group for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

18 (a) Term loans & import letter of credits from banks include:-

i) Saraswat Co-Opeartive Bank Limited '' 11,658.27 Lakhs ( March 31, 2023 : '' 6,016.84 Lakhs), carrying interest rate ranging from 9% to 9.35% ( March 31, 2023 : 9.35%) repayable in 1 to 54 monthly installments. Such loans are hypothecated against Plant & Equipment (13 Nos. Cranes) and registered mortgage on land and buildings at Tathawade.

ii) Kotak Mahindra Bank Limited '' 2,869.04 Lakhs (March 31, 2023 : '' 1,349.26 Lakhs ), carrying interest rate ranging from 7.27% to 7.30% (March 31, 2023 : 8.30%) repayable in 1 to 47 monthly installments. Such loans are hypothecated against Plant & Equipment (2 Nos. Cranes).

iii) HDFC Bank Limited '' 2,134.34 Lakhs (March 31, 2023 : '' Nil Lakhs), carrying interest rate 9.25% (March 31, 2023 : Nil ) repayable in 1 to 54 monthly or quarterly installments. Such loans are hypothecated against Plant & Equipment (4 Nos. Cranes).

iv) Indusind Bank Limited '' 3,429.14 Lakhs (March 31, 2023 : '' 1,368.41 Lakhs), carrying interest rate 9.90% (March 31, 2023 : 9.00% ) repayable in 1 to 57 monthly installments. Such loans are hypothecated against Plant & Equipment (2 No. Cranes).

v) Yes Bank Limited '' 1,465.23 Lakhs (March 31, 2023 : '' 1,825.36 Lakhs), carrying interest rate 7.75% (March 31, 2023 7.75% to 8.40%) repayable in 1 to 41 monthly installments. Such loans are hypothecated against Plant & Equipment (1 No. Cranes).

vi) Yes Bank Limited '' 492.17 Lakhs (March 31, 2023 : '' 650.20 Lakhs), carrying interest rate 8.40% (March 31, 2023 7.75% to 8.40% ) repayable in 1 to 32 monthly installments. Such loans are hypothecated against Plant & Equipment (33 No. Prime Movers).

vii) IDFC First Bank Limited '' 6,268.18 Lakhs (March 31, 2023 : '' 7,403.34 Lakhs), carrying interest rate ranging from 9.00% to 9.95% (March 31, 2023 8.90% to 9.00% ) repayable in 1 to 67 monthly installments. Such loans are hypothecated against Plant & Equipment (13 No. Crane and 9 No. boom inserts of cranes).

viii) ICICI Bank Limited '' 1,791.96 Lakhs (March 31, 2023 : Nil), carrying interest rate of 8.75% (March 31, 2023 : Nil) repayable in 1 to 48 monthly installments. Such loans are hypothecated against Plant & Equipment (7 No. Cranes).

iii) The Company participates in a supplier finance arrangement (SF) which is disclosed under borrowings under which its suppliers may elect to receive payment of their invoice from a bank by presenting the letter of credit for their receivable from the Company once due. Under the arrangement, a bank agrees to pay amounts to a participating supplier in respect of invoices owed by the Company and receives settlement from the Company at a later date. The principal purpose of this arrangement is to improve working capital position of the Company by obtaining additional financing.

The Company has derecognised the original liabilities to which the arrangement applies because the original liability was substantially modified on entering into the arrangement. From the Company''s perspective, the arrangement extends payment terms beyond the normal terms agreed with other suppliers that are not participating. The difference between the cash price equivalent and total payment is charged as interest to profit and loss over the period. The Company has created security charge to the bank. The bank considers each letter of credit as drawdown on an existing line of credit. The Company therefore discloses the letter of credit given to suppliers within borrowings because the terms, nature and function of the payables has been significantly modified.

The payments to the bank are included within financing cash flows because they are not part of the normal operating cycle of the Company and their principal nature has been changed to financing.

34 Leases

The Company incurred '' 412.65 Lakhs (March 31, 2023''322.03 Lakhs) for the year ended towards expenses relating to short term leases and leases of low-value assets.

35 Related Party Disclosures:

In accordance with the requirements of Ind AS - 24 ''Related Party Disclosures'', names of the related parties, related party relationship, transactions and outstanding balances including commitments where control exits and with whom transactions have taken place during reported periods are:

(A) Names of related parties and description of relationship as identified and certified by the Company:

Key Management Personnel (KMP)

Rishi Sanghvi - Chairman & Managing Director Sham Kajale - Chief Financial Officer

Rajesh Likhite - Company Secretary and Chief Compliance Officer

Non Executive and Independent Directors

Maithili Sanghvi - Non Executive Woman Director

Dara Damania - Non Executive Independent Director * (Upto March 31, 2024)

S. Padmanabhan - Non Executive Independent Director * (Upto March 31, 2024)

Pradeep Rathi - Non Executive Independent Director * (Upto March 31, 2024)

Dinesh Munot - Non Executive Independent Director * (Upto March 31, 2024)

Madhukar Kotwal - Non Executive Independent Director *

Madhu Dubhashi - Non Executive Independent Director *

Bhumika Batra - Non Executive Independent Director * (W.e.f. January 01, 2024)

Indraneel Chitale - Non Executive Independent Director * (W.e.f. December 26, 2023)

Relatives of Individuals exercising significant influence over the Company

Mina Sanghvi - Mother of Rishi Sanghvi Niyoshi Sanghvi - Sister of Rishi Sanghvi

Subsidiaries

Sanghvi Movers Vietnam Co. Ltd., Vietnam (Upto February 27, 2024)

Sangreen Renewables Private Limited (w.e.f March 23, 2024)(Refer Note 52)

36 Segment reporting

The Company generates its revenue by providing cranes, trailers on hire and other ancillary services within in India.

The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no separate segment information has been furnished herewith.

Information about major customers

Company''s significant revenues are derived from two customer (March 31, 2023 : two customer) contributing 10% of more to the company''s revenue represented approximately '' 13,667.74 Lakhs (March 31, 2023 : '' 11,597.77 Lakhs) of the Company''s total revenue from operations.

37 Fair values of financial assets and financial liabilities

The fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, security deposits, interest accrued on fixed deposits, trade receivables, unbilled Receivables, loans, investments, trade payables, interest accrued but not due on borrowings, accrued employee liabilities, short-term borrowings Capital creditors, interest payable on unsecured Loans and other financial liabilities approximate the carrying amounts because of the short term nature of such financial instruments.

The amortised cost using effective interest rate (EIR) of non-current financial assets consisting of security deposits, fixed deposit accounts with maturity for more than 12 months from balance sheet date are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and other financial assets.

38 Fair value hierarchy

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

• Level 2 - Inputs 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 for the assets or liabilities that are not based on observable market data (unobservable inputs).

39 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise Borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s principal financial assets include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) 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. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(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. The Company exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates (if applicable).

Interest rate sensitivity

Since the long term debt obligations carry fixed interest rates, no risk is anticipated on account of interest rate changes

(C) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

As described in Note 19, the Company also participates in a supplier finance arrangement (SF) with the principal purpose to improve working capital position of the Company by obtaining additional financing from banks with good credit ratings so the likelihood of the supplier finance arrangement becoming unavailable is remote.

As at March 31, 2024, the Company had a working capital of '' 16,941.56 Lakhs (March 31, 2023 : '' 9,915.71 Lakhs). The working capital of the Company for this purpose has been derived as follows:

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s financing activities (when borrowings are denominated in a different currency from the Company''s functional currency).

(B) 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. Credit risk arises principally from the Company''s trade receivables, receivables from deposits and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month''s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The maximum exposure to the credit risk as at the reporting period is primarily from trade receivables amounting to '' 11,819.18 Lakhs and '' 9,889.48 Lakhs as at March 31, 2024 and March 31, 2023 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company through

44 Compliance with number of layers of companies

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

45 Utilisation of Borrowed funds and share premium:

(i) 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

(ii) 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

47 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximize the shareholder value and to ensure the Company''s ability to continue as a going concern.

The Company has distributed dividend to its shareholders during this Financial Year. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of borrowings from various banks/ financial institutions. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

49 Contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made

(b) The Company had received notices of demand in respect of Order of Assessment of FY 2008-09, FY 2009-10, FY 2010-11, FY 2012-13, FY 2013-14, FY 2014-15, FY 2015-16, FY 2016-17 and FY 2017-18 towards VAT and CST liability treating hiring of cranes as transfer of right to use of cranes.

The Company had received a favorable order for FY 2008-09 from Maharashtra Sales Tax Tribunal against which the Sales tax department had preferred an appeal in the High Court. The Honourable Bombay High Court vide its order dated December 04, 2023 held that giving cranes on hire does not involve the transfer of the right to use the cranes, as the effective control and possession always remained with the Company. Hence, the Department''s appeal stood dismissed.

Basis the above favourable judgement for one year from High Court and considering the nature of its business, the management is confident that ongoing litigations for other years will also be decided in the favour of the Company and hence no provision/disclosure of contingency is required.

(c) Income tax matters comprise demand from the tax authorities for the payment of additional tax of '' 18.27 Lakhs (2023: '' 2.61 Lakhs) upon completion of their tax reviews for the various financial years. The tax demands are mainly on account of TDS liability under the Income Tax Act and disallowances of certain expenses. The matter is pending before the Assessing Officer of Income Tax.

(d) The Company has received notice of demand in respect of FY 2017-18 and FY 2023-24 towards GST liabilities regarding disallowance of input tax credits, incorrect admissibility of input tax credit and generation of E-way bill with incorrect details. The matters are pending before various forums.

The Company is contesting the above demands of Sales tax and Income tax and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised.

50 Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are as described below. A CSR committee has been formed by the Company as per the Act. The funds are utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

51 The remuneration payable to promoter director of the Company during the financial year ended March 31, 2024, exceeds the limits prescribed under regulation 17(6)(e) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, by '' 517.70 Lakhs. The remuneration payable to promoter director in excess of the limits has been approved by the Board of Directors and the Company is in the process of placing the same before the shareholders for their approval by special resolution in the forthcoming Annual General Meeting.

52 The Company is under active discussions with an Independent Power Producer ("IPP") party for providing full-fledged turnkey services, right from conceptualisation to commissioning of wind turbine generators. The above discussion is basis the understanding that the Company would incorporate a special purpose vehicle which would carry out all the initial relevant activities, including application/approvals from various government authorities. On successful completion of such activities, the IPP party would acquire the shareholding of the SPV.

Accordingly, the Company has incorporated Sangreen Renewables Private Limited (SRPL) on March 23, 2024, to carry out the above activities. Post the year end, all relevant activities have been completed, and the Company is in the process of signing definitive share purchase agreement with the IPP party for transfer of ownership rights over SRPL.

Moreover, as there are no material transactions and balances in SRPL books to be consolidated, the management has decided not to prepare consolidated financial statements for the year ended March 31, 2024.

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

54 The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (and previous 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.

55 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

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

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

58 The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 3.1 to the financial statements, are held in the name of the Company.

59 The Code on Social Security 2020

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

60 The other requirements of the Schedule III of the Companies Act, 2013 not specifically disclosed are either Nil or not applicable to the Company.

61 No significant subsequent events have been observed which may require an adjustments to the financial statements.

62 Previous year figures have been regrouped/reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.

As per our report of even date For and on behalf of the Board of Directors of

For M S K A & Associates Sanghvi Movers Limited

Chartered Accountants CIN: L29150PN1989PLC054143

Firm Registration No.:105047W

Nitin Manohar Jumani Rishi Sanghvi Sham Kajale

Partner Chairman & Managing Director Chief Financial Officer

Membership No: 111700 DIN: 08220906 PAN: AAUPK7774R

Rajesh Likhite Madhu Dubhashi

Company Secretary & Chief Compliance Officer Director

PAN: ABDPL6323M DIN: 00036846

Place: Pune Place: Pune Place: Pune

Date: May 16, 2024 Date: May 16, 2024 Date: May 16, 2024

---

Mar 31, 2023

The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

4.1 Estimation of fair value

As at 31 March 2023, the fair values of the properties is Rs. 428.40 Lakhs (31 March 2022 : Rs. 428.40 Lakhs) These valuations are based on valuations performed by an accredited independent valuer. Such independent valuer is a specialist in valuing these types of investment properties.

The valuer has carried out valuation by considering the clear & marketable title of properties, the valuation is therefore based on the verbal market survey of the real estate market in the subject area.

A description of the Company’s financial instrument risks, including risk management objectives and policies is given in Note 38. The methods used to measure financial assets reported at fair value are described in Note 37.

ii. The Company during Financial Year 2020-21 had incorporated a wholly owned subsidiary namely “Sanghvi Movers Vietnam Company Limited (“SML Vietnam") in Vietnam and registered with Ministry of Planning and investment, the Company invested Rs. 26.44 Lakhs (USD 35,000) towards initial capital. Further, due to the complicated situation of COVID-19 epidemic, SML Vietnam had filed for temporary suspension of business for the period of one year upto December, 2022 which was acknowledged by the ministry. Further, SML Vietnam has extended temporary suspension of business for further one year from December, 2022 to December, 2023. The Company during the current financial year recognised an impairment loss of Rs. 3.73 Lakhs towards carrying value of the investment.

(ii) Rights, preferences and restrictions attached to shares

Equity Shares: The Company has only one class of equity shares having par value of Rs. 2 per share. Each shareholder is entitled to one vote per share held. They entitles the holders to participate in dividends and dividend, if any declared is payable in Indian Rupees.

The Board of Directors, in their meeting on 24 May 2023, proposed a final dividend of Rs. 4 per equity share for the year ended 31 March 2023 which is subject to approval of the shareholders in the ensuing Annual General Meeting

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.

The Company, during the year ended 31 March 2021 made an Investment in certain equity shares of a Company and accounted for the same at its fair value on initial recognition and choose an irrevocable option to account for the subsequent changes in this financial instrument through other comprehensive income (OCI). Accordingly, during the year ended 31 March 2021, the Company recognised gain of Rs. 624.48 Lakhs on changes in the fair value of equity instrument through OCI. Further, the Company entered into a call option contract (''written call option’) against the said investment in equity shares. Call option being a derivative instrument, any loss on fair valuation of the written call option has to be recognised in statement of profit and loss. Accordingly, during the year ended 31 March 2021, the Company recognised the loss on fair valuation of call option contract amounting Rs. 516.73 Lakhs in its statement of profit and loss.

During previous year ended 31 March 2022, the Company sold such investment in equity shares and therefore, the Company reversed fair value gain of Rs. 624.48 Lakhs recognised through OCI during the year ended 31 March 2022.

Nature and purpose of reserves

A) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act,2013.

B) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the group for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

C) Capital Reserve

As per the provisions of the erstwhile Companies Act 1956, the Company created Capital reserve on forfeiture of share call money in previous financial years. The amount can be utilised only in accordance with the specific requirements of Companies Act, 2013.

D) Surplus in the Statement of Profit and Loss

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to investors

18 (a) Term loans & import letter of credits from banks include:-

i) Saraswat Co-Opeartive Bank Limited Rs. 6,016.84 Lakhs (31 March 2022 : Rs. 10,993.17 Lakhs), carrying interest rate of 9.35% (31 March 2022 : 9.15% to 10.25%) repayable in 1 to 60 monthly installments. Such loans are hypothecated against Plant & Equipment (16 Nos. Cranes) and registered mortgage on land and buildings at Tathawade and continuation of hypothecation charge on 32 Cranes hypothecated to the bank for earlier term loan which are fully paid now.

ii) Kotak Mahindra Bank Limited Rs. 1,349.26 Lakhs (31 March 2022 : Rs. 2,950 Lakhs), carrying interest rate of 8.30% (31 March 2021 : 8.25% to 8.30%) repayable in 1 to 60 monthly installments. Such loans are hypothecated against Plant & Equipment (4 Nos. Cranes).

iii) HDFC Bank Limited Rs. Nil Lakhs (31 March 2022 : Rs. 1,494.14 Lakhs), carrying interest rate Nil (31 March 2022 : 8.25% to 9.03%) repayable in 1 to 36 monthly or quarterly installments. Such loans are hypothecated against Plant & Equipment (2 Nos. Cranes).

iv) Indusind Bank Limited Rs. 1,368.41 Lakhs (31 March 2022 : Rs. Nil), carrying interest rate 9.00% (31 March 2022 : Nil) repayable in 1 to 60 monthly installments. Such loans are hypothecated against Plant & Equipment (1 No. Cranes).

v) Yes Bank Limited Rs. 1,825.36 Lakhs (31 March 2022 : Rs. Nil), carrying interest rate ranging from 7.75% to 8.40% (31 March 2022 : Nil) repayable in 1 to 60 monthly installments. Such loans are hypothecated against Plant & Equipment (1 No. Cranes).

vi) Yes Bank Limited Rs. 650.20 Lakhs (31 March 2022 : Rs. Nil), carrying interest rate ranging from 7.75% to 8.40% (31 March 2022 : Nil) repayable in 1 to 48 monthly installments. Such loans are hypothecated against Plant & Equipment (33 No. Prime Movers).

vii) IDFC First Bank Limited Rs. 7,403.34 Lakhs (31 March 2022 : Rs. Nil), carrying interest rate ranging from 8.90% to 9.00% (31 March 2022 : Nil) repayable in 1 to 60 monthly installments. Such loans are hypothecated against Plant & Equipment (8 No. Crane).

18 (c) Bank loans contain certain debt covenants relating to limitation on indebtedness, debt-equity ratio, net Borrowings to EBITDA ratio and debt service coverage ratio. The limitation on indebtedness covenant gets suspended if the Company meets certain prescribed criteria. The debt covenant related to limitation on indebtedness remained suspended as of the date of the authorisation of the financial statements. The Company has also satisfied all other debt covenants prescribed in the terms of bank loan. The other loans do not carry any debt covenant.

The Company has not defaulted on any loans payable.

i) Working capital loans from Kotak Mahindra Bank representing cash credit facilities as at 31 March 2023 are secured against first & exclusive charge on Current Assets i.e. receivables, stock of spares and equitable / registered mortgage of land & building at Gat No. 110 & 111 at Vadgaon Maval, Pune. The cash credit facilities are repayable on demand and carry interest rate of 9.30% p.a.

ii) Working capital loans from Kotak Mahindra Bank representing cash credit facilities as at 31 March 2022 are secured against first & exclusive charge on Current Assets i.e. receivables, stock of spares and equitable / registered mortgage of land & building at Gat No. 110 & 111 at Vadgaon Maval, Pune. The cash credit facilities are repayable on demand and carry interest rate of 6.80% p.a.

iii) The Company participates in a supplier finance arrangement (SF) which is disclosed under borrowings under which its suppliers may elect to receive payment of their invoice from a bank by presenting the letter of credit for their receivable from the Company once due. Under the arrangement, a bank agrees to pay amounts to a participating supplier in respect of invoices owed by the Company and receives settlement from the Company at a later date. The principal purpose of this arrangement is to improve working capital position of the Company by obtaining additional financing.

The Company has derecognised the original liabilities to which the arrangement applies because the original liability was substantially modified on entering into the arrangement. From the Company’s perspective, the arrangement extends payment terms beyond the normal terms agreed with other suppliers that are not participating. The difference between the cash price equivalent and total payment is charged as interest to profit and loss over the period. The Company has created security charge to the bank. The bank considers each letter of credit as drawdown on an existing line of credit. The Company therefore discloses the letter of credit given to suppliers within borrowings because the terms, nature and function of the payables has been significantly modified.

The payments to the bank are included within financing cash flows because they are not part of the normal operating cycle of the Company and their principal nature has been changed to financing.

32 EARNINGS PER SHARE (“EPS”)

Basic earnings per share amounts are calculated by dividing the profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

xi) Compensated Absences:

The Compensated Absences is payable to all eligible employees for each day of accumulated leave on death or on resignation. Compensated Absences debited to Statement of Profit and Loss during the year amounts to Rs. 8.29 Lakhs (31 March 2022 : Rs. 100.64 Lakhs) and is included in Note 28 - ''Employee benefits expenses’. Accumulated current provision for leave encashment aggregates to Rs. 97.28 Lakhs (Previous year Rs. 101.55 Lakhs).

34 LEASES

The Company incurred Rs. 322.03 Lakhs (31 March 2022 : Rs. 325.61 Lakhs) for the year ended towards expenses relating to short term leases and leases of low-value assets.

35 RELATED PARTY DISCLOSURES:

In accordance with the requirements of Ind AS - 24 ''Related Party Disclosures’, names of the related parties, related party relationship, transactions and outstanding balances including commitments where control exits and with whom transactions have taken place during reported periods are:

(A) Names of related parties and description of relationship as identified and certified by the Company:

Key Management Personnel (KMP)

Rishi Sanghvi - Managing Director

Sham Kajale - Joint Managing Director and Chief Financial Officer Rajesh Likhite - Company Secretary and Chief Compliance Officer

Non Executive and Independent Directors

Maithili Sanghvi - Non Executive Woman Director Dara Damania - Non Executive Independent Director *

S. Padmanabhan - Non Executive Independent Director *

Pradeep Rathi - Non Executive Independent Director *

Dinesh Munot - Non Executive Independent Director *

Madhukar Kotwal - Non Executive Independent Director *

Madhu Dubhashi - Non Executive Independent Director *

Relatives of Individuals exercising significant influence over the Company

Mina Sanghvi - Mother of Rishi Sanghvi Niyoshi Sanghvi - Sister of Rishi Sanghvi

Related parties where control exists Wholly Owned Subsidiary

Sanghvi Movers Vietnam Co. Limited., Vietnam

(D) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free except for borrowings and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

36 SEGMENT REPORTING

The Company generates its revenue by providing cranes, trailers on hire and other ancillary services within India.

The Chief Operating Decision Maker (CODM) reviews the operations of the Company as one operating segment. Hence no separate segment information has been furnished herewith.

Information about major customers

Company’s significant revenues are derived from two customers (31 March 2022 : one customer) contributing 10% of more to the Company’s revenue represented approximately Rs. 11,597.77 Lakhs (31 March 2022 : Rs. 3,432.84 Lakhs) of the Company’s total revenue from operations.

37 FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

The fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, security deposits, interest accrued on fixed deposits, trade receivables, unbilled Receivables, loans, investments, trade payables, interest accrued but not due on borrowings, accrued employee liabilities, short-term borrowings Capital creditors, interest payable on unsecured Loans and other financial liabilities approximate the carrying amounts because of the short term nature of such financial instruments.

The amortised cost using effective interest rate (EIR) of non-current financial assets consisting of security deposits, fixed deposit accounts with maturity for more than 12 months from balance sheet date are not significantly different from the carrying amount.

Financial assets that are neither past due nor impaired include cash and cash equivalents, security deposits, term deposits, and other financial assets.

38 FAIR VALUE HIERARCHY

The following is the hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

• Level 2 - Inputs 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 for the assets or liabilities that are not based on observable market data (unobservable inputs).

39 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise Borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s principal financial assets include investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company is exposed to various financial risks. These risks are categorised into market risk, credit risk and liquidity risk. The Company’s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) 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. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(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. The Company exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates (if applicable).

Interest rate sensitivity

Since the long term debt obligations carry fixed interest rates, no risk is anticipated on account of interest rate changes.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s financing activities (when borrowings are denominated in a different currency from the Company’s functional currency).

(B) 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. Credit risk arises principally from the Company’s trade receivables, receivables from deposits and also arises from cash held with banks and financial institutions. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month’s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts.

The maximum exposure to the credit risk as at the reporting period is primarily from trade receivables amounting to Rs. 9,889.48 Lakhs and Rs. 7,927.01 Lakhs as at 31 March 2023 and 31 March 2022 respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company 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. On account of adoption of Ind AS 109 - Financial Instruments (“Ind AS 109"), the Company uses expected credit loss (ECL) model to assess the impairment loss. The Company computes the expected credit loss allowance for trade receivables based on available external and internal credit risk factors such as the ageing of its dues, market information about the customer, industry information and the Company’s historical experience for customers with forward looking experience.

Set out below is the information about the credit risk exposure on the Company’s trade receivables using a provision matrix:

(C) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due.

As described in Note 19, the Company also participates in a supplier finance arrangement (SF) with the principal purpose to improve working capital position of the Company by obtaining additional financing from banks with good credit ratings so the likelihood of the supplier finance arrangement becoming unavailable is remote.

(i) Provision created for Slow and Non Moving Inventory in Books of account post submission of statement to bank

(ii) Unbilled revenue details submitted to bank includes only for the month for which statement is filed while unbilled revenue as per books of account included all unbilled revenue oustanding as at the end of reporting period

44 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

45 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM:

(i) 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

(ii) 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

47 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company’s capital management is to maximise the shareholder value and to ensure the Company’s ability to continue as a going concern.

The Company has distributed dividend to its shareholders during this Financial Year. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. Total debt comprises of borrowings from various banks / financial institutions. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2023 and 31 March 2022.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

48 COMMITMENTS
Particulars	As at 31 March 2023	Ast at 31 March 2022
- Estimated amount of contracts remaining to be executed on capital account and not provided, net of advances	11,184.01	5,314.08
	11,184.01	5,314.08

49 CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date and are not discounted to its present value.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources or where a reliable estimate of the obligation cannot be made.

Particulars	As at 31 March 2023	Ast at 31 March 2022
Contingent Liabilities
(a) Claims against the Group not acknowledged as debts (Refer footnote (a) below)	213.48	213.48
(b) Sales tax matters (Refer footnote (b) below)	87,076.21	87,076.21
(c) Income tax matters (Refer footnote (c) below)	6.09	5.11
(d) Goods & Service Tax Matters (Refer footnote (b) below)	31.73	-

(a) Claims against the Company not acknowledged as debts comprises of claims raised on Company by it’s vendors amounting to Rs. 24.66 Lakhs (31 March 2022 : Rs. 24.66 Lakhs) for breach of contracts and by certain government authorities and others amounting to Rs. 188.82 Lakhs (31 March 2022 : Rs. 188.82 Lakhs) on account of road taxes, road accident by the Company’s trailer and charges for conversion fees for land. The Company has been advised by its legal counsel that it is possible, but not probable, that action will succeed in respect of claims against the Company. These claims are being contested in the courts by the Company. The Management does not expect these claims to succeed. Accordingly, no provision for the contingent liability has been recognised in the financial statements.

(b) Sales tax matters include demand notice received from various authorities regarding transfer of right to use the goods as mentioned below and assessment notice received from GST Authorities:

The Company has received notice of demand in respect of Order of Assessment for FY 2007-08, FY 2008-09, FY 2009-10, FY 2010-11, FY 2012-13, FY 2013-14, FY 2014-15, FY 2015-16, FY 2016-17 and FY 2017-18 towards VAT and CST liability regarding transfer of right to use the goods.

Based on various favourable judgments and considering the nature of its business, the management believes that rendering Crane Services on rental basis does not involve “transfer of right to use goods" so as to fall under the purview of VAT or Sales tax. As the Company never passes effective control and possession of its cranes to its customers, the question of levying VAT or CST does not arise. The Company has also received a favourable order for 2008-09 from Maharashtra Sales Tax Tribunal.

(c) Income tax matters comprise demand from the tax authorities for the payment of additional tax of Rs. 6.09 Lakhs (2022: Rs. 5.11 Lakhs) upon completion of their tax reviews for the various financial years. The tax demands are mainly on account of TDS liability under the Income Tax Act and disallowances of certain expenses. The matter is pending before the Assessing Officer of Income Tax.

The Company is contesting the above demands and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company’s financial position and results of operations.

Contingent assets are neither recorded nor disclosed in the financial statements.

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

51 The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (and previous 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).

52 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

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

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

55 The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in note 3.1 to the financial statements, are held in the name of the Company.

56 THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 (''the Code’) relating to employee benefits, during the employment and postemployment, has received Presidential assent on 28 September 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on 13 November 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

57 Previous year figures have been regrouped/ reclassified to confirm presentation as per Ind AS and as required by Schedule III of the Act.

---

Mar 31, 2018

1. Reporting entity

Sanghvi Movers Limited (“SML” or “the Company”) is a public company domiciled in India and was incorporated in 1989. SML is engaged in the business of providing hydraulic and crawler cranes to various industries in the infrastructure sector and has a fleet of mediumldto largedsize hydraulic truck mounted telescopic and lattice boom cranes and crawler cranes with lifting capacity ranging from 20 tons to 800 tons. The Company has its registered office in Pune. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2. Basis of preparation

2.1 Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act.

The financial statements were authorized for issue by the Company’s Board of Directors on 25 May 2018. Details of the Company’s significant accounting policies are included in Note 3.

2.2 Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts have been rounded-off to the nearest lakh to two decimal points, unless otherwise indicated.

2.3 Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items:

2.4 Use of estimates

In preparing these financial statements, management has madejudgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Assumptions and estimation uncertainties

- Note 19 - measurement of defined benefit obligations: key actuarial assumptions;

- Note 19 and 25 - the Company has received some orders and notices from tax authorities in respect of direct and indirect taxes. The outcome of these matters may have a material effect on the financial position, results of operations or cash flows. Management regularly analyses current information about these matters and makes provisions for probable contingent losses expected to be incurred to resolve these matters. In making the decision regarding the need for loss provisions, management considers the degree of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or the disclosure or the disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate; and

- Note 10 - Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company’s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life.

2.5 Measurement of fair values

A number of the accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values which is overseen by the Chief Financial Officer (CFO).

Significant valuation issues are reported to the Company’s audit committee.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

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

- Level 2: inputs other than quoted prices included in 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 for the asset or liability that are not based on observable market data (unobservable inputs)

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as a lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

2.6 Current versus non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current/ non-current classification.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realized in, or is intended for sale or consumption in, the Company’s normal operating cycle

b) it is held primarily for the purpose of being traded;

c) it is expected to be realized within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company’s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The operating cycle of the Company is less than 12 months.

A. Measurement of fair values Fair value hierarchy

The fair value of investment property has been determined by external, independent valuer, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

The fair value measurement for all of the investment property has been categorised as a Level 3 fair value based on the inputs to the valuation techniques used.

3 (a) (i) Rights preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

Nature and purpose of other reserves

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is to be utilised in accordance with the provisions of the Act.

Remeasurement of defined benefit liability (asset)

Remeasurement of defined benefit liability (asset) comprises actuarial gains and losses.

Cash flow hedging reserve

The Company uses hedging instruments as part of its management of foreign currency risk associated with foreign currency borrowings and interest rate risk associated with variable interest rate borrowings as described within note 22. For hedging foreign currency risk, the Company uses principal swap which is designated as cash flow hedges. For hedging interest rate risk, the Company uses interest rate swaps which is also designated as cash flow hedges. To the extent these hedges are effective; the change in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amounts recognised in the cash flow hedging reserve is reclassified to profit or loss when the hedged item affects profit or loss (e.g. interest payments).

i) Term loans from banks in Indian rupees carry interest rate ranging from 9.20% to 9.75% p.a. repayable in 1 to 48 monthly and 1 to 12 quarterly installments.

ii) Loans from related parties are repayable on demand with a notice of 13 months and carry interest rate ranging from 4.25 % - 9.12% p.a.

iii) USD term loan from bank equivalent to Rs. 2,170.02 Lakhs (31 March 2017: Rs. 2,138.96 Lakhs) carries interest rate of one year 6 months LIBOR 0.50% which is repayable on 14 November 2018.

iv) Another USD term loan from bank equivalent to Rs. 2,620.95 Lakhs (31 March 2017: Rs. 2,596.58 Lakhs) carries interest rate of one year 6 months LIBOR 0.61% which is repayable on 17 September 2018.

v) EURO term loan from bank equivalent to Rs. Nil (31 March 2017: Rs. 5,045.21) carries interest rate of one year EURIBOR 0.68% which was repayable on 27 March 2018.

Secured borrowings and assets pledged as security

a) Term loans amounting to Rs. 35,966.38 Lakhs (31 March 2017 : Rs. 29,517.64 Lakhs) are secured against cranes/ trailers.

b) Term loans amounting to Rs. 12,982.78 lakhs (31 March 2017: Rs. 9,979.07 Lakhs) are secured against cranes/ trailers and registered mortgage on land and buildings at Tathawade.

c) Term loans amounting to Rs. 1,108.37 lakhs (31 March 2017 : Rs. 3,797.21 Lakhs) are secured against cranes and land at Vadagaon Pune.

d) Term loans amounting to Rs. 684.64 Lakhs (31 March 2017: Rs. 5,338.96 Lakhs) are secured against cranes and office building at Sate, Pune.

e) Term loans amounting to Rs. 239.34 Lakhs (31 March 2017: Rs. Nil) are secured against Car.

f) Working capital loans from banks representing cash credit facilities as at 31 March 2018 and 31 March 2017 are secured against receivables and stock of spares & continuation of charge on cranes hypothecated with bank for term loan. The cash credit facilities are repayable on demand and carry interest rate ranging between 8.75-8.8% p.a.

The carrying amounts of financial and non-financial assets pledged as security for current and non-current borrowings are disclosed in note 26.

Information about the Company’s exposure to interest rate, foreign currency and liquidity risks is included in note 22.

(i) Compensated absences

The compensated absences cover the Company’s liability for earned leave.

The amount of the provision of Rs. 14.92 Lakhs (31 March 2017 - Rs. 31.50 Lakhs) of its employees is presented as current since the same is expected to be funded within 12 months from the reporting date.

(ii) Defined contribution plans

The Company has certain defined contribution plans. Contributions are made to provident fund, superannuation fund and national pension scheme in India for employees at the prescribed rate of basic salary. These contributions are made to registered provident fund administered by the government. The Company also contributes to superannuation fund to Life Insurance Corporation of India for its employees. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan are as follows:

(Hi) Defined benefit obligation

The Company has a defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. It entitles an employee who has rendered at least five years of continuous service to gratuity at the rate of fifteen days salary for every completed year of service or part thereof in excess of six months based on the rate of salary last drawn by the concerned employee.

A. Funding

The gratuity liability is funded through a Group Gratuity Scheme with Life Insurance Corporation of India. The funding requirements is determined at each Balance sheet date based on an actuarial valuation carried out by an independent actuary using the projected unit credit method.

* Financial assets and liabilities such as trade receivables, loans, cash and cash equivalents, bank balance other than cash and cash equivalents, security deposits, interest accrued on fixed deposits, trade payables, interest accrued but not due on borrowings, accrued employee liabilities, capital creditors are largely short-term in nature. The fair value of these financial assets and liabilities approximate their carrying amount due to the short-term nature of such assets and liabilities.

4. Financial risk management

“The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate credit limits and controls and to monitor risks and adherence to credit limits. The Company, through its training and established procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, principal swaps are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk to which the Company is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements:”

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 13,451.77 lakhs and Rs. 16,581.50 lakhs as of 31 March 2018 and 31 March 2017, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company 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. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss. The Company computes the expected credit loss allowance for trade receivables based on available external and internal credit risk factors such as the ageing of its dues, market information about the customer, industry information and the Company’s historical experience for customers.

The following table gives details in respect of percentage of revenue generated from top three customers of the Company wherein revenue for each of them exceeds 10 percent of Company’s revenue from operations:

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances as at 31 March 2018 was Rs. 2,945.18 Lakhs (2017 - Rs. 833.45 lakhs). The impairment loss recognised for lifetime expected credit loss on customer balances for the year ended 31 March 2018 was Rs. 2,111.73 lakhs (2017 - Rs. 206.86 lakhs).

Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units and fixed deposits which are funds deposited at a bank for a specified time period.

(B) Liquidity risk

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of 31 March 2018, the Company had a working capital of Rs. 3,600.86 lakhs and that as at 31 March 2017 had a working capital of Rs. 3,800.50 lakhs. The working capital of the Company for this purpose has been derived as follows:

The working capital as at 31 March 2018 calculated above includes cash and cash equivalents of Rs. 251.30 lakhs. Also, the working capital as at 31 March 2017 calculated above includes cash and cash equivalents of Rs. 238.92 lakhs and current investments of Rs. 1,500.43 lakhs.

The table below provides details regarding the contractual maturities of significant financial liabilities as of 31 March 2018:

(C) Market risk

Though the Company operates only in India, the Company is exposed to foreign exchange risk through purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward and cross currency interest rate swap (CCIRS) to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are affected as the Indian rupee appreciates/ depreciates against these currencies.

Sensitivity Analysis:

A change in 1% in the rates of foreign currency payables will affect the outstanding as at 31 March 2018 by Rs.47.86 lakhs (31 March 2017 - Rs. 97.81 lakhs). As the rate of exchange of the foreign currency increases, the outstanding dues would increase and vice versa. However the foreign currency payables are fully hedged by forward contracts.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

Some of the foreign exchange forward contracts mature within twelve months. The table below analyzes the derivative financial instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:

The Company has designated foreign exchange forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge transactions for balance in cash flow hedging reserve are expected to occur and reclassified to the statement of profit or loss within a period of 12 months to 18 months from 31 March 2018.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

The following table provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting from cash flow hedge accounting:

5 Related party disclosures

a) Individuals exercising significant influence over the Company

1 Chandrakant Sanghvi

b) Key management personnel

1 Chandrakant Sanghvi - Chairman and Managing Director

2 Sham Kajale - Joint Managing Director and Chief Financial Officer

3 Rajesh Likhite - Company Secretary and Chief Compliance Officer

4 Vijay Mainkar - Non Executive Independent Director *

5 Dara Damania - Non Executive Independent Director *

6 S. Padmanabhan - Non Executive Independent Director *

7 Pradeep Rathi - Non Executive Independent Director *

8 Dinesh Munot - Non Executive Independent Director *

9 Madhukar Kotwal - Non Executive Independent Director *

10 Mina Sanghvi - Non Executive Non Independent Director *

c) Relatives of Individuals exercising significant influence over the Company

1 Mina Sanghvi - Spouse of Chandrakant Sanghvi

2 Rishi Sanghvi - Son of Chandrakant Sanghvi

3 Niyoshi Sanghvi - Daughter of Chandrakant Sanghvi

4 Ruchi Sanghvi - Daughter of Chandrakant Sanghvi

5 Anilkumar Sanghvi - Brother of Chandrakant Sanghvi

d) Enterprises over which key management personnel exercise significant influence

1 Jethi Builders and Traders Private Limited

2 Maharashtra Erectors Private Limited

3 Sanghvi Erectors Private Limited

* The Company has paid sitting fees amounting to Rs. 21.90 Lakhs (2017: Rs. 20.50 Lakhs) to non executive independent directors.

** As gratuity and compensated absences are computed for all the employees in aggregate, the amounts relating to the Key Managerial Personnel cannot be individually identified. However, contribution toward superannuation fund is included as part of managerial remuneration.

a) Claims against the Company not acknowledged as debts comprises of claims raised on Company by it’s customers amounting to Rs. 127.92 Lakhs (2017 : Rs. 127.92 Lakhs) for breach of contracts and by certain government authorities amounting to Rs. 235.64 Lakhs (2017 : Rs. 174.06 Lakhs) on account of road taxes and charges for conversion fees for land. The Company has been advised by its legal counsel that it is possible, but not probable, that action will succeed in respect of claims against the Company. These claims are being contested in the courts by the Company. The Management does not expect these claims to succeed. Accordingly, no provision for the contingent liability has been recognised in the financial statements.

b) Sales tax matters include demand notice received from various authorities regarding transfer of right to use the goods as mentioned below:

The Company has received Notice of Demand in respect of Order of Assessment for FY 2007-08 , FY2008-09 , FY 2009-10 and FY 2010-11 towards VAT and CST liability regarding transfer of right to use the goods .

Based on various favourable judgments and considering the nature of its business, the management believes that rendering Crane Services on rental basis does not involve “transfer of right to use goods” so as to fall under the purview of VAT or Sales tax. As the Company never passes effective control and possession of its cranes to its customers, the question of levying VAT or CST does not arise.

c) Income tax matters comprise demand from the tax authorities for the payment of additional tax of Rs. 3.03 Lakhs (2017: Rs. 6.24 Lakhs) upon completion of their tax reviews for the various financial years. The tax demands are mainly on account of TDS liability under the Income Tax Act. The matter is pending before the Assessing Officer of Income Tax.

d) Service tax matters comprise of demand raised by tax authorities for the payment of service tax of Rs. 237.48 Lakhs (2017: 237.48 Lakhs) on account of services provided to SEZ developer/unit where exemption has been claimed by the Company. The matter is pending before the Customs, Excise and Service Tax Appellate Tribunal.

The Company is contesting the above demands of Sales tax, Income tax and Service tax and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company’s financial position and results of operations.

6 Operating leases

Leases as lessor

The Company leases out its investment property on operating lease basis (see Note 11)

Amounts recognised in profit or loss

During the year ended 31 March 2018, property rentals of Rs. 123.87 lakhs (31 March 2017: Rs. 27.53 lakhs) pertaining to investment property have been included in other income (see note 5). Expenses recognised in profit or loss, are as follows:

7 Compliance with Micro, Small and Medium Enterprises Development Act, 2006

The Company has amounts due to suppliers under the Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’) as at 31 March

8 Disclosure on Specified Bank Notes

During the last year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308(E ), dated March 30, 2017. The details of SBNs held and transacted during the period from November 08, 2016 to December 30, 2016, the denomination-wise SBNs and other notes as per the notification were as follows for years ended 2017. However, this notification will not be applicable for current financial year ended 2018:

* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economics Affairs number S.O. 3407(E ), dated November 8, 2016.

^A Permitted receipts include Rs. 20.48 lakhs representing withdrawal from banks.

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Mar 31, 2017

1. Reporting entity

Sanghvi Movers Limited (“SML” or “the Company”) is a public company domiciled in India and was incorporated in 1989. SML is engaged in the business of providing hydraulic and crawler cranes to various industries in the infrastructure sector and has a fleet of medium-to large-size hydraulic truck mounted telescopic and lattice boom cranes and crawler cranes with lifting capacity ranging from 20 tons to 800 tons. The Company has its registered office in Pune. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2. Basis of preparation

2.1 Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of Companies Act, 2013, (the ‘Act’) and other relevant provisions of the Act.

The financial statements up to and for the year ended 31 March 2016 were prepared in accordance with the Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act.

As these are the first financial statements prepared in accordance with Indian Accounting Standards (Ind AS), Ind AS 101, First-time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company is provided in Note 28.

The financial statements were authorized for issue by the Company’s Board of Directors on 30 May 2017. Details of the Company’s significant accounting policies are included in Note 3.

2.2 Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency. All amounts have been rounded-off to the nearest lakh to two decimal points, unless otherwise indicated.

2.3 Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items:

2.4 Use of estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Assumptions and estimation uncertainties

- Note 19 - measurement of defined benefit obligations: key actuarial assumptions;

- Note 19 and 25 - the Company has received some orders and notices from tax authorities in respect of direct and indirect taxes. The outcome of these matters may have a material effect on the financial Management regularly analyzes current information about these matters and makes provisions for probable contingent losses expected to be incurred to resolve these matters. In making the decision regarding the need for loss provisions, management considers the degree of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or the disclosure or the disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss maybe appropriate; and

- Note 10 - Property, plant and equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of company’s assets are determined by management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life.

2.5 Measurement of fair values

A number of the accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values which is overseen by the Chief Financial Officer(CFO).

Significant valuation issues are reported to the Company’s Audit Committee.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

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

- Level 2: inputs other than quoted prices included in 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 for the asset or liability that are not based on observable market data (unobservable inputs)

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset ora liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as a lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

2.6 Current versus non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a) it is expected to be realised in, or is intended for sale or consumption in the Company’s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be realised within 12 months after the reporting date; or

d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include current portion of non-current financial assets. All other assets are classified as noncurrent.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a) it is expected to be settled in the Company’s normal operating cycle;

b) it is held primarily for the purpose of being traded;

c) it is expected to be settled within 12 months after the reporting date; or

d) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counter party, result in its settlement by the issue of equity instruments do not affect its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

Operating cycle

Operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. The operating cycle of the Company is less than 12 months.

3 (a) (i) Rights preferences and restrictions attached to equity shares

The Company has only one class of equity shares having par value of INR 2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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.

Nature and purpose of other reserves

Securities premium reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is to be utilised in accordance with the provisions of the Act.

Remeasurement of defined benefit liability (asset)

Remeasurement of defined benefit liability (asset) comprises actuarial gains and losses.

Cash flow hedging reserve

The Company uses hedging instruments as part of its management of foreign currency risk associated with foreign currency borrowings and interest rate risk associated with variable interest rate borrowings as described within note 22. For hedging foreign currency risk, the Company uses principal swap which is designated as cash flow hedges. For hedging interest rate risk, the Company uses interest rate swaps which is also designated as cash flow hedges. To the extent these hedges are effective; the change in fair value of the hedging instrument is recognised in the cash flow hedging reserve. Amounts recognised in the cash flow hedging reserve is reclassified to profit or loss when the hedged item affects profit or loss (e.g. interest payments).

4(a). Current borrowings

I) Term loans from banks in Indian rupees carry interest rate ranging from 9.95% to 10.90% p.a. repayable in 1 to 59 monthly and 16 to 22 quarterly installments.

ii) Loans from related parties are repayable on demand with a notice of 13 months and carry an interest ranging from 7.25%-10.30% p.a.

iii) USD term loan from bank equivalent to Rs. 2,138.96 (31 March 2016: Nil;01 April 2015: Nil) carries interest rate of one year 6 months LIBOR 0.50% which is repayable on 14 November 2018.

iv) Another USD term loan from bank equivalent to Rs. 2,596.58 (31 March 2016: Nil; 01 April 2015: Nil) carries interest rate of one year 6 months LIBOR 0.61% which is repayable on 17 September 2018.

v) EURO term loan from bank equivalent to Rs. 5,045.21 (31 March 2016:5,414.43,01 April 2015: Nil) carries interest rate of one year EURIBOR 0.68% which is repayable on 27 March 2018.

vi) Commercial paper loan carry interest rate of 7.50% p.a. and is repayable on 04 September 2017.

Secured borrowings and assets pledged as security

a) Term loans amounting to Rs. 29,517.64 (31 March 2016 : Rs.29,260.11, 01 April 2015 :Rs. 10,559.10) are secured against cranes/trailers.

b) Term loans amounting to Rs. 9,979.07 (31 March 2016 : Rs. 13,187.90, 01 April 2015 : Rs. 11,387.86) are secured against cranes/trailers and Registered mortgage on land and buildings at Tathawade.

c) Term loans amounting to Rs. 3,797.21 (31 March 2016 : Rs. 11,950.54, 01 April 2015 : Rs. Nil) are secured against cranes and Land at Vadagaon Pune.

d) Term loans amounting to Rs. 5,338.96 (31 March 2016: Rs. 3,380.01 (01 April 2015 : Rs. 4,198.30) are secured against cranes and office building at Sate, Pune.

e) Term loans amounting to Rs. Nil (31 March 2016: Nil (1 April 2015 : Rs. 4,935.75)) are secured against cranes and equitable mortgage of residential land at Sate & personal guarantees given by Chairman and Managing Director Mr. Chandrakant Sanghvi till the conversion of land into Non-agricultural land.

f) Working capital loans from banks representing cash credit facilities as at 31 March 2017 and 31 March 2016 are secured against receivables and stock of spares. As at 31 March 2015, the working capital loan was also secured against the personal guarantee given by Mr. Chandrakant Sanghvi, Chairman and the Managing Director amounting to Rs. 3,700 Lakhs and a pledge of 6 lakh equity shares of the Company held by him. The cash credit facilities are repayable on demand and carry an interest ranging between 11-13% p.a.

The carrying amounts of financial and non-financial assets pledged as security for current and non-current borrowings are disclosed in note 26.

Information about the Company’s exposure to interest rate foreign currency and liquidity risks is included in note 22.

5. Provisions

(i) Compensated absences

The compensated absences cover the Company’s liability for earned leave.

The amount of the provision of Rs. 31.50 (31 March 2016 - Rs. 24.63;1 April 2015 - Rs. 20.94) of its employees is presented as current since the same is expected to be funded within 12 months from the reporting date.

(ii) Defined contribution plans

The Company has certain defined contribution plans. Contributions are made to provident fund, superannuation fund and national pension scheme in India for employees at the prescribed rate of basic salary. These contributions are made to registered provident fund administered by the government. The Company also contributes to superannuation fund to Life Insurance Corporation of India for its employees. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plan are as follows:

(iii) Defined benefit obligation

The Company has a defined benefit gratuity plan governed by the Payment of Gratuity Act, 1972. It entitles an employee who has rendered at least five years of continuous service to gratuity at the rate of fifteen days salary for every completed year of service or part thereof in excess of six months based on the rate of salary last drawn by the concerned employee.

A. Funding

The gratuity liability is funded through a Group Gratuity Scheme with Life Insurance Corporation of India. The funding requirements is determined at each Balance sheet date based on an actuarial valuation carried out by an independent actuary using the projected unit credit method.

B. Reconciliation of net defined liability

The amounts recognised in the balance sheet and the movements in the net defined benefit obligation over the year are as follows:

iv) Plan assets are as follows:

The Company has invested Rs. 227.72 (2016: Rs. 195.16; 2015: Rs. 166.96) in assets which are insurer managed funds.

*Financial assets and liabilities such as trade receivables, loans, cash and cash equivalents, bank balance other than cash and cash equivalents, security deposits, interest accrued on fixed deposits, trade payables, interest accrued but not due on borrowings, accrued employee liabilities, capital creditors are largely short-term in nature. The fair value of these financial assets and liabilities approximate their carrying amount due to the short-term nature of such assets and liabilities.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Investment in mutual funds are valued using the closing net asset value (NAV).

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Accordingly, unquoted equity shares have been considered as Level 3 financial instrument. The carrying amount of unquoted equity shares is not considered material and hence it has not been fair valued and carrying amount for the same has been considered as the fair value.

(ii) Valuation techniques used to determine fair value

Specific valuation techniques used to value the financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments.

- the fair value of the interest rate swaps is calculated as present value of the estimated future cash flows based on observable yield curves.

- the fair value of forward exchange contracts and principal swap is determined using forward exchange rates at the Balance Sheet date.

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis.

(iii) Valuation processes

The finance department of the Company performs the valuation of financial assets and liabilities required for financial reporting purposes. The finance department reports directly to the chief financial officer (CFO). Discussions of valuation processes and results are held between the CFO and the finance department at least once every three months, in line with the Company’s quarterly reporting periods.

6. Financial risk management

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate credit limits and controls and to monitor risks and adherence to credit limits. The Company, through its training and established procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s activities expose it to market risk, liquidity risk and credit risk. In order to minimize any adverse effects on the financial performance of the Company, derivative financial instruments, such as foreign exchange forward contracts, principal swaps are entered to hedge certain foreign currency risk exposures and interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

This note explains the sources of risk to which the Company is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements:

(A) Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs. 16,581.50 lakhs and Rs. 15,506.72 lakhs as of 31 March 2017 and 31 March 2016, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers located in India. Credit risk has always been managed by the Company 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. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment. The Company computes the expected credit loss allowance for trade receivables based on available external and internal credit risk factors such as the ageing of its dues, market information about the customer, industry information and the Company’s historical experience for customers.

The following table gives details in respect of percentage of revenues generated from top two customers (top three for the year ended 31 March 2016) of the company wherein revenue for each of them exceeds 10% of company’s revenue from operations:

Credit risk exposure

The allowance for lifetime expected credit loss on customer balances for the year ended 31 March 2017 was Rs. 833.45 lakhs. The impairment loss recognised for lifetime expected credit loss on customer balances for the year ended 31 March 2017 was Rs.206.86 Lakhs.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units and fixed deposit which are funds deposited at a bank for a specified time period.

(B) Liquidity risk

The Company’s principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company believes that the working capital is sufficient to meet its current requirements. Accordingly, no liquidity risk is perceived.

As of 31 March 2017, the Company had a working capital of Rs. 3,800.50 lakhs and that as at 31 March 2016 had a working capital of Rs. 1,687.06 lakhs. The working capital of the Company for this purpose has been derived as follows:

The working capital as at 31 March 2017 calculated above includes cash and cash equivalents of Rs. 238.92 lakhs and current investments of Rs. 1,500.43 lakhs. Also, the working capital as at 31 March 2016 calculated above includes cash and cash equivalents of Rs.342.57 lakhs and current investments of Rs. Nil.

The table below provides details regarding the contractual maturities of significant financial liabilities as of 31 March 2017:

(C) Market risk

Though the Company operates only in India, the Company is exposed to foreign exchange risk through purchases from overseas suppliers in various foreign currencies. The Company holds derivative financial instruments such as foreign exchange forward and cross currency interest rate swap (CCIRS) to mitigate the risk of changes in exchange rates on foreign currency exposures. The exchange rate between the Indian rupee and foreign currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of the Company’s operations are affected as the rupee appreciates/ depreciates against these currencies.

The following table analyzes foreign currency risk from financial instruments as 31 March 2017 and 31 March 2016:

Sensitivity Analysis:

A change in 1% in the rates of foreign currency payables will affect the outstanding as at 31 March 2017 by Rs. 97.81 lakhs. As the rate of exchange of the foreign currency increases, the outstanding dues would increase and vice versa. However the foreign currency payables are fully hedged by forward contracts.

Derivative financial instruments

The Company holds derivative financial instruments such as foreign currency forward contracts to mitigate the risk of changes in exchange rates on foreign currency exposures. The counterparty for these contracts is generally a bank or a financial institution. These derivative financial instruments are valued based on quoted prices for similar assets and liabilities in active markets or inputs that are directly or indirectly observable in the marketplace.

The Company has designated foreign exchange forward contracts as cash flow hedges to mitigate the risk of foreign exchange exposure on highly probable forecast cash transactions. The related hedge transactions for balance in cash flow hedging reserve are expected to occur and reclassified to the statement of profit or loss within a period of 12 months to 21 months from 31 March 2017.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in profit or loss at the time of the hedge relationship rebalancing.

The following table provides a reconciliation by risk category of components of equity and analysis of OCI items, net of tax, resulting from cash flow hedge accounting:

7 Related party disclosures

a) Individuals exercising significant influence over the Company

1 Chandrakant Sanghvi

b) Key management personnel

1 Chandrakant Sanghvi - Chairman and Managing Director

2 Sham Kajale - Executive Director and Chief Financial Officer

3 Rajesh Likhite - Company Secretary & Chief Compliance Officer

c) Relatives of Individuals exercising significant influence over the Company

1 Mina Sanghvi - Spouse of Chandrakant Sanghvi

2 Rishi Sanghvi - Son of Chandrakant Sanghvi

3 Niyoshi Sanghvi - Daughter of Chandrakant Sanghvi

4 Ruchi Sanghvi - Daughter of Chandrakant Sanghvi

5 AnilkumarSanghvi - Brother of Chandrakant Sanghvi

d) Enterprises over which key management personnel exercise significant influence

1 Jethi Builders and Traders Private Limited

2 Maharashtra Erectors Private Limited

3 Sanghvi Erectors Private Limited

8 Contingent liabilities and commitments

a) Claims against the Company not acknowledged as debts comprises of claims raised on Company by it’s customers amounting to Rs. 127.92 (2016 : Rs. 117.92) for breach of contracts and by certain government authorities amounting to Rs. 174.06 (2016:125.92) on account of road taxes and charges for conversion fees for land. The Company has been advised by its legal counsel that it is possible, but not probable, that action will succeed in respect of claims against the Company. These claims are being contested in the courts by the Company. The Management does not expect these claims to succeed. Accordingly, no provision for the contingent liability has been recognized in the financial statements.

b) Sales tax matters includes demand notice received from various authorities regarding transfer of right to use the goods as mentioned below:

The Company has received Notice of Demand in respect of Order of Assessment for FY 2007-08, FY2008-09, FY 2009-10 and FY 2010-11 towards VAT and CST liability regarding transfer of right to use the goods.

Based on various favourable judgements and considering the nature of its business, the management believes that rendering Crane Services on rental basis does not involve “transfer of right to use goods” so as to fall under the purview of VAT or Sales tax. As the Company never passes effective control and possession of its cranes to its customers, the question of levying VAT or CST does not arise.

c) Income tax matters comprise demand from the tax authorities for the payment of additional tax of Rs. 6.24 (2016: Rs. 34.64) upon completion of their tax reviews for the various financial years. The tax demands are mainly on account of TDS liability under the Income Tax Act. The matter is pending before the Assessing Officer of Income Tax.

d) Service tax matters comprise of demand raised by tax authorities for the payment of service tax of Rs. 237.48 (2016: Rs. 237.48) on account of services provided to SEZ developer/unit where exemption have been claimed by the Company. The matter is pending before the Customs, Excise and Service Tax Appellate Tribunal.

The Company is contesting the above demands of Sales tax, Income tax and Service tax and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company’s financial position and results of operations.

9 Events occurring after the reporting period

Refer to note 16(b) for the final dividend proposed by the directors which is subject to the approval of shareholders in the ensuing annual general meeting.

10 Operating leases Leases as lessor

The Company leases out its investment property on operating lease basis (see Note 11).

Amounts recognised in profit or loss

During the year ended 31 March 2017, property rentals of Rs. 27.53 lakhs (31 March 2016: Nil) pertaining to investment property have been included in other income (see note 5). Expenses recognised in profit or loss, is as follows:

11 Disclosure on Specified Bank Notes

During the year, the Company had Specified Bank Notes (SBNs) or other denomination notes as defined in the MCA notification, G.S.R. 308(E), dated March 31, 2017. The details of SBNs held and transacted during the period from November 08,2016 to December 30, 2016, the denomination-wise SBNs and other notes as per the notification are as follows:

* For the purposes of this clause, the term ‘Specified Bank Notes’ shall have the same meaning provided in the notification of the Government of India, in the Ministry of Finance, Department of Economics Affairs number S.0.3407(E), dated November 8,2016.

^A Permitted receipts includeRs.20.48 lakhs representing withdrawal from banks.

12 Explanation of transition to Ind AS

As stated in Note 2, these are the Company’s first financial statements prepared in accordance with Ind AS. For the year ended 31 March 2016, the Company prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under 133 of the Act and other relevant provisions of the Act (‘previous GAAP’).

The accounting policies set out in Note 2 have been applied in preparing these financial statements for the year ended 31 March 2017 including the comparative information for the year ended 31 March 2016 and the opening Ind AS balance sheet on the date of transition i.e. 1 April 2015.

In preparing its Ind AS balance sheet as at 1 April 2015 and in presenting the comparative information for the year ended 31 March 2016, the Company has adjusted amounts reported previously in the financial statements prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.

A. Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied below mentioned optional exemptions and mandatory exceptions.

1. Property plant and equipments

As per Ind AS 101 an entity may elect to:

(i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date

(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the revolution, broadly comparable to:

- fair value

- or cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general or specific price index.

(iii) use carrying values of property, plant and equipment as on the date of transition to Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment.

2. Designation of previously recognised financial instruments

Ind AS permits an entity to designate particular equity instruments as at fair value through other comprehensive income (FVOCI) based on facts and circumstances at the date of transition to Ind AS (rather than initial recognition). Other equity investments are classified at fair value through profit or loss (FVTPL).

The Company has opted to avail this exemption to designate certain equity investments as FVTPL on the date of transition.

B. Mandatory exceptions

1. Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Fair valuation of financial instruments carried at FVTPL and/or FVOCI.

- Impairment of financial assets based on expected credit loss model.

- Determination of the discounted value for financial instruments carried at amortised cost.

2. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on the facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

Notes to the reconciliation

(a) Revenue from operations

As per Ind AS 18, the revenue recognition criteria are applied to two or more transactions together when they are linked in such a way that the commercial effect cannot be understood without reference to the series of transactions as a whole.

The Company is responsible for mobilization and operation of the cranes during the service period. Therefore, these components of the contract are treated as a single transaction and mobilization charges are deferred over the service period of the contract. Accordingly, the Company has deferred revenue accounting to Rs. 664.34 lakhs as at 31 March 2016 (Rs. 592.94 lakhs).

Hence the revenue from operations recognised under Ind AS has increased by Rs. 71.40 lakhs as compared to that under the previous GAAP for the year ended 31 March 2016.

(b) Fair valuation of investments

In accordance with Ind AS, financial assets representing investment in equity shares of entities have been fair valued. The Company has designated certain investments as fair value through profit or loss (FVPL) as permitted by Ind AS 109. Under previous GAAP, the application of the relevant accounting standard resulted in all these investments being carried at cost.

(c) Actuarial gain and loss

Under Ind AS, all actuarial gains and losses are recognised in other comprehensive income. Under previous GAAP the Company recognised actuarial gains and losses in profit or loss. Accordingly, actuarial loss of Rs. 108.29 lakhs (net of tax accounting to Rs. 70.81 lakhs) recognised in the Statement of profit and loss has been recognised under other comprehensive income under Ind AS. However, this has no impact on total comprehensive income and total equity as on 1 April 2015 and as on 31 March 2016.

(d) Borrowing at amortised cost

Based on Ind AS 109, financial liabilities in the form of borrowings have been accounted at amortised cost using the effective interest rate method.

(e) Proposed dividend

Under previous GAAP, dividends proposed by the board of directors after the reporting date but before the approval of financial statements were considered to be adjusting event and accordingly recognised (along with related dividend distribution tax) as liabilities at the reporting date. Under Ind AS, dividends so proposed by the board are considered to be non-adjusting event. Accordingly, provision for proposed dividend distribution tax recognised under previous GAAP has been reversed.

(f) Income tax

The above changes (decreased)/increased the deferred tax liability as follows based on a tax rate of 34.608 percent:

(g) Retained earnings

The above changes (decreased)/increased total equity as follows:

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Mar 31, 2016

1 Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity share holder on a poll (not on show of hands) are in proportion to its share of the paid up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

i) Term loans from banks in Indian rupees carry interest rate ranging from 10.50% to 11.40% p.a. Repayable in 16 to 60 monthly and 9 to 22 quarterly installments.

ii) Loans from related parties are repayable on demand with a notice of 13 months and carry an interest ranging from 7.25 % - 12.30 % p.a.

iii) Term loans from bank in foreign currency carry interest rate of one year EURIBOR 0.68% which is repayable on 27 March 2018.

Security

a) Term loans amounting to Rs. 29,488.10 Lakhs (2015 : Rs. 10,690.90 Lakhs) are secured against cranes/trailers.

b) Term loans amounting to Rs. 13,290.47 Lakhs (2015 : Rs. 11,513.69 Lakhs) are secured against cranes/trailers and Registered mortgage on land and buildings at Tathawade.

c) Term loans amounting to Rs. 12,076.03 Lakhs (2015 : Rs. NIL) are secured against cranes and Land at Vadagaon, Pune.

d) Term loans amounting to Rs. 3,422.28 Lakhs (2015 : Rs. 4,248.59 Lakhs) are secured against cranes and office building at Sate, Pune.

e) Term loans amounting to Rs. NIL (2015 : Rs. 4,997.87 Lakhs) are secured against cranes and equitable Mortgage of residential land at Sate & personal guarantees given by Chairman and Managing Director Mr. Chandrakant Sanghvi till the conversion of land into Non-agricultural land.

f) Also refer note 19.

a) Claims against the Company not acknowledged as debts comprises of claims raised on Company by its customers amounting to Rs. 117.92 Lakhs (2015 : Rs. 167.16 Lakhs) for breach of contracts and by certain government authorities amounting to Rs. 125.92 Lakhs (2015 : Rs. 75.68 Lakhs) on account of road taxes and charges for conversion fees for land. The Company has been advised by its legal counsel that it is possible, but not probable, that action will succeed in respect of claims against the Company. These claims are being contested in the courts by the Company. The Management does not expect these claims to succeed. Accordingly, no provision for the contingent liability has been recognized in the financial statements.

b) Sales tax matters includes demand notice received from various authorities regarding transfer of right to use the goods as mentioned below:

The Company has received Notice of Demand on 25^th May 2015 from Assistant Commissioner of Sales Tax (PUN-INV-D-007) Pune in respect of Order of Assessment for Financial Year 2008-09 towards VAT and CST liability regarding transfer of right to use the goods .

Based on various favorable judgments and considering the nature of its business, the management believes that rendering Crane Services on rental basis does not involve "transfer of right to use goods" so as to fall under the purview of VAT or Sales tax. As the Company never passes effective control and possession of its cranes to its customers, the question of levying VAT or CST does not arise.

c) Income tax matters comprise demand from the tax authorities for the payment of additional tax of Rs. 34.64 Lakhs (2015 : Rs. 102.47 Lakhs) upon completion of their tax reviews for the various financial years. The tax demands are mainly on account of TDS liability under the Income Tax Act. The matter is pending before the Commissioner of Income Tax (Appeals).

d) Service tax matters comprise of demand raised by tax authorities for the payment of service tax of Rs. 237.48 Lakhs (2015: Rs. 261.20 Lakhs) on account of services provided to SEZ developer/unit where exemption have been claimed by the Company. The matter is pending before the Customs, Excise and Service Tax Appellate Tribunal.

The Company is contesting the above demands of Sales tax, Income tax and Service tax and the management, including its tax advisors, believe that its position will likely be upheld in the appellate process. No tax expense has been accrued in the financial statements for the tax demand raised. The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the Company''s financial position and results of operations.

2. Related party disclosures

a) Individuals exercising significant influence over the company

1 Mr. Chandrakant Sanghvi

b) Key management personnel

1 Mr. Chandrakant Sanghvi - Chairman and Managing Director

2 Mr. Sham Kajale - Executive Director and Chief Financial Officer

3 Mr. Rajesh Likhite - Company Secretary

c) Relatives of Individuals exercising significant influence over the company

1 Mrs. Mina Sanghvi - Spouse of Chandrakant Sanghvi

2 Mr. Rishi Sanghvi - Son of Chandrakant Sanghvi

3 Ms. Niyoshi Sanghvi - Daughter of Chandrakant Sanghvi

4 Ms. Ruchi Sanghvi - Daughter of Chandrakant Sanghvi

5 Mr. Anilkumar Sanghvi - Brother of Chandrakant Sanghvi

d) Enterprises over which key management personnel exercise significant influence

1 Jethi Builders and Traders Private Limited

2 Sanghvi Erectors Private Limited

3 Maharashtra Erectors Private Limited

3. Deferral/capitalization of exchange differences

On 29^th December 2011, the Ministry of Corporate Affairs (’MCA’) has issued an amendment to Accounting Standard 11- The Effects of changes in Foreign Exchange Rates and clarification provided vide circular 25/2012 dated 09 August 2012. The amendment permits Companies to defer/capitalize the exchange differences arising on Long Term Foreign Currency Monetary Items.

In accordance with the amendment, the Company has capitalized exchange gain arising on unhedged long term foreign currency loans, amounting to Rs. NIL (2015 : Rs. 544.18 Lakhs) to the cost of plant and equipments. There is no exchange loss deferred in ’Foreign Currency Monetary Translation Difference Account’, as there are no other long term foreign currency monetary items.

4. Foreign currency exposures outstanding at the year end

(a) The Company has hedged its foreign currency risk exposure and the forward cover outstanding as at the Balance Sheet date

5. Segment reporting

The Company is primarily engaged in the business of providing cranes on rental basis. Further all the commercial operations of the Company are based in India. Accordingly, there is no separate reportable segment in accordance with AS 17- Segment Reporting prescribed under the Companies (Accounting Standards) Rules, 2006 which continue to apply under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules 2014.

6. Corporate Social Responsibility

As per provisions of Section 135 of the Companies Act 2013, the Company was required to spend Rs. 39.14 Lakhs (2015 : Rs. 123.76 Lakhs) being 2% of average net profits made during the three immediately preceding financial years, in pursuance of its Corporate Social Responsibility Policy on the activities specified in Schedule VII of the Act.

7. Derivative instruments

During the current financial year, the Company has availed 3 years Buyers’ Credit Facility (‘hedged item’) of Euro 72.00 Lakhs (2015: NIL). Being a Foreign Currency Loan, it is exposed to the risk of foreign currency fluctuations & interest rate fluctuation. In order to mitigate the effect of these fluctuations, the Company has simultaneously entered into fully hedged structure (an Interest Rate Swap (IRS) and Principal Swap Structure (POS)- ‘hedging instrument’) whereby the Company fixed the principal repayment and its interest outflows in Indian Rupee terms as they fall due.

As at the year end, the Company has recorded a mark-to-market loss of Rs. 294.23 Lakhs (2015: NIL) in Hedging Reserve, being the effective portion of the change in fair value of the Hedging Instrument. Further, to match the gains and losses of the hedged item and the hedging instrument in the Statement of Profit and Loss, Rs. 287.28 Lakhs (2015: Nil) has been recycled from the Hedging Reserve to the Statement of Profit and Loss.

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Mar 31, 2014

Particulars For the year ended 31st March 2014 31st March 2013 1. Contingent liabilities and commitments Contingent liabilities

(a) Claims against the Company not acknowledged as debts 82.17 104.30

(b) Bills receivable discounted — 279.22

(c) Sales tax matters (refer note ''i'' below) 707.06 125.00

(d) Income tax matters* 258.94 535.90

(e) Service tax matters* 261.20 — excluding consequent penalties, if any

Commitments

Estimated amount of contracts 29.40 86.11 remaining to be executed on capital and not provided for (net of advances)

1,338.77 1,130.53

i) Includes demand notice of Rs. 363.94 lakh (2013: Rs. Nil) towards VAT and Rs. 218.37 lakh (2013: Rs. Nil) for interest aggregating to Rs. 582.31 lakh (2013: Rs. Nil) received from Deputy Commissioner of Sales Tax under Maharashtra Value Added Tax Act, 2002 for the year 2009-10 and Rs. 124.75 (2013: Rs. 124.75) from Joint Commissioner of Sales Tax under Gujarat Value Added Tax Act, 2003 for the year 2008-09 regarding transfer of right to use the goods. The Company is in process of contesting the demand in appeal under Maharashtra Value Added Tax Act, 2002 and has contested the demand in appeal under the Gujarat Value Added Tax Act, 2003.

2. Related party disclosures

a) Individuals exercising significant influence over the company

1 Mr. Chandrakant Sanghvi

b) Key management personnel

1 Mr. Chandrakant Sanghvi

2 Mr. Ramchandra Desai (upto 1 November 2012)

3 Mr. Sham D. Kajale

c) Relatives of Individuals exercising significant influence over the company

1 Mrs. Mina C. Sanghvi - Spouse of Mr. Chandrakant Sanghvi

2 Mr. Rishi Sanghvi - Son of Mr. Chandrakant Sanghvi

3 Ms. Niyoshi Sanghvi - Daughter of Mr. Chandrakant Sanghvi

4 Ms. Ruchi Sanghvi - Daughter of Mr. Chandrakant Sanghvi

5 Mr. Anilkumar Sanghvi - Brother of Mr. Chandrakant Sanghvi

d) Relatives of key management personnel

1 Mrs. Tanuja Desai - Spouse of Ramchandra Desai (upto 1 November 2012)

e) Enterprises over which key management personnel exercise significant influence

1 Jethi Builders and Traders Private Limited

2 Sanghvi Erectors Private Limited

3 Maharashtra Erectors Private Limited

* As gratuity and compensated absences are computed for all the employees in aggregate, the amounts relating to the Key Managerial Personnel cannot be individually identified. However, contribution toward superannuation fund is included as part of managerial remuneration.

** Mr. Chandrakant P. Sanghvi has given personal guarantee up to Rs. 3,500 Lakhs (2013 : Rs. 3,500 Lakhs) and has pledged his 6 lakh (2013 : 6 Lakhs) equity shares towards the loan for which no guarantee commission is paid by the Company.

$ Includes Rs. 79.83 Lakhs (Previous Year Rs. Nil) of managerial remuneration which is subject to the approval of shareholders and Central Government.

# Includes Rs. 15.72 Lakhs (Previous Year Rs. Nil) managerial remuneration subject to the approval of shareholders.

31. Disclosure as per Accounting Standard 15 ( Revised) : Employee Benefits

The following table sets out the status of the Gratuity plan as required under Accounting Standard 15 (Revised)

Note:The estimates of future salary increases take into account inflation, seniority, promotion and other relevant factors on long term basis.

3. Deferral/capitalisation of exchange differences

On 29 December 2011, the Ministry of Corporate Affairs (''MCA'') has issued an amendment to Accounting Standard 11- The Effects of changes in Foreign Exchange Rates and clarification provided vide circular 25/2012 dated 09 August 2012. The amendment permits Companies to defer/capitalise the exchange differences arising on Long Term Foreign Currency Monetary Items.

In accordance with the amendment, the Company has capitalised exchange differences arising on long term foreign currency loans, amounting to Rs. 3,229.02 (2013: Rs. 684.32) to the cost of plant and equipments. There is no exchange loss deferred in ''Foreign Currency Monetary Translation Difference Account'', as there are no other long term foreign currency monetary items.

4. Foreign currency exposures outstanding at the year end

(a) The Company has hedged its foreign currency risk exposure and the forward cover outstanding as at the Balance Sheet date:

5. Segment reporting

The Company is primarily engaged in the business of providing cranes on rental basis. Further all the commercial operations of the Company are based in India. Accordingly, there is no separate reportable segment in accordance with AS 17- Segment Reporting prescribed under the Companies (Accounting Standards) Rules, 2006.

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Mar 31, 2013

1. Background

Sanghvi Movers Limited ("SML" or "the Company") was incorporated in 1989. SML is engaged in the business of providing hydraulic and crawler cranes to various industries in the infrastructure sector and has a fleet of 387 medium-to large-size hydraulic trucks mounted telescopic and lattice boom cranes and crawler cranes with lifting capacity ranging from 20 tons to 800 tons. The Company has its corporate office at Pune. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2. Related party disclosures

a) Enterprises exercising significant influence over the company

1 Maharashtra Erectors Private Limited (upto 09 September 2011)

b) Individuals exercising significant influence over the company

1 Mr. Chandrakant Sanghvi

c) Key management personnel

1 Mr. Chandrakant Sanghvi

2 Mr. Ramchandra Desai (upto 1 November 2012)

3 Mr. Sham Kajale

d) Relatives of individuals exercising significant influence over the company

1 Mrs. Mina Sanghvi - Spouse of Mr. Chandrakant Sanghvi

2 Mr. Rishi Sanghvi - Son of Mr. Chandrakant Sanghvi

3 Ms. Niyoshi Sanghvi - Daughter of Mr. Chandrakant Sanghvi

4 Ms. Ruchi Sanghvi - Daughter of Mr. Chandrakant Sanghvi

5 Mr. Anilkumar Sanghvi - Brother of Mr. Chandrakant Sanghvi

e) Relatives of key management personnel exercising significant influence over the Company

1 Mrs. Tanuja Desai - Spouse of Ramchandra Desai (upto 1 November 2012)

f) Enterprises over which key management personnel exercise significant influence

1 Jethi Builders and Traders Private Limited

2 Sanghvi Erectors Private Limited

3 Maharashtra Erectors Private Limited

3. Deferral/capitalisation of exchange differences

On 29 December 2011, the Ministry of Corporate Affairs (''MCA'') has issued an amendment to Accounting Standard 11- The Effects of changes in Foreign Exchange Rates and clarification provided vide circular 25/2012 dated 09 August 2012. The amendment permits Companies to defer/capitalise the exchange differences arising on Long Term Foreign Currency Monetary Items.

In accordance with the amendment, the Company has capitalised exchange differences arising on long term foreign currency loans, amounting to Rs.684.32 (2012: Rs.1,230.01) to the cost of plant and equipments. There is no exchange loss deferred in ''Foreign Currency Monetary Translation Difference Account'', as there are no other long term foreign currency monetary items.

4. Foreign currency exposures outstanding at the year end

(a) The Company has hedged its foreign currency risk exposure and the forward cover outstanding as at the Balance Sheet date:

(b) The following foreign currency receivables/payables balances are not covered by derivative instruments at the Balance Sheet date:

5. Segment reporting

The company is primarily engaged in the business of providing cranes on rental basis. Further all the commercial operations of the company are based in India. Accordingly, there is no separate reportable segment in accordance with AS 17- Segment Reporting prescribed under the Companies (Accounting Standards) Rules, 2006.

6. During the previous year, the company had corrected its accounting practice of recognising certain borrowing costs as cost of fixed assets resulting in the interest expense being higher by Rs. Nil (2012 : Rs.678.66) and consequently depreciation charge being lower by Rs. Nil (2012 : Rs.199.29) for the year with consequent profit before tax being lower by Rs. Nil (2012 : Rs.479.37) on account of the prior period item.

7. Prior period comparatives

Previous years'' comparative figures have been regrouped/reclassified wherever necessary to conform to current year''s presentation.

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Mar 31, 2012

1. Background

Sanghvi Movers Limited ("SML" or "the Company") was incorporated in 1989. SML is engaged in the business of providing hydraulic and crawler cranes to various industries in the infrastructure sector and has a fleet of 400 medium to large size hydraulic trucks mounted telescopic and lattice boom cranes and crawler cranes with lifting capacity ranging from 20 tons to 800 tons. The Company has its corporate office at Pune. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

2.1 Rights, Preferences and Restrictions Attached to Equity Shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 2. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. The Board of Directors, in their meeting held on 30th May 2012 proposed a final dividend of Rs. 3 per equity share. The proposal is subject to the approval of shareholders at the ensuing Annual General Meeting . In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their share holding.

a) Term loans from banks in Indian Rupees carry interest rate ranging from 10% to 13.5% p.a. The number of monthly installments payable for these loans are 54 to 96.

b) Foreign Currency term loans from banks carry usance interest or interest rate ranging from 6 months to 1 year LIBOR or EURIBOR plus additional basis points ranging from 120 to 350. These loans are repayable in 360 to 720 days from the date when these loans were availed.

Security

a) Term loans amounting to Rs. 59,527.93 (2011 : Rs. 52,444.73) are secured against cranes/trailers.

b) Term loans amounting to Rs. 3,508.22 (2011 : Rs. 2,229.26) are secured against cranes/trailers and equitable mortgage on land and buildings at Tathawade and Bharuch.

c) Term loans amounting to Rs. 424.77 (2011 : Rs. 731.82) are secured against mortgage on land and buildings at Tathawade and Bharuch.

d) Term loans amounting to Rs. 2,219.51 (2011 : Rs. 4,120.01) are secured against cranes/trailers and personal guarantees given by Chairman and Managing Director, Mr. Chandrakant Sanghvi.

e) Term loans amounting to Rs. 72.24 (2011 : Rs. 56.03) are secured against vehicles purchased out of the term loan.

f) Also refer note 16.

a) Working Capital loans from banks representing cash credit facilities are secured against receivables, personal guarantee of Mr. Chandrakant Sanghvi, Chairman and the Managing Director up to Rs. 3,700, pledge of 5 lacs equity shares of the Company held by Mr. Chandrakant Sanghvi, Chairman and the Managing Director and 1 lac equity shares held by Mrs. Mina Sanghvi. The cash credit facilities are repayable on demand and carry an interest ranging between 12-14% p.a.

b) Loans and Advances from a related party are repayable on demand and carry an interest rate ranging from 12-14 % p.a.

The Company was levied additional custom duty amounting to Rs. 140.59 in the year 1998 on import of certain cranes. The Company had capitalised this amount in the year of procurement of these cranes and had also filed an appeal against the levy of this additional customs duty. Those cranes were subsequently sold in earlier years. In the current year the appeal was decided in favour of the Company and it received a refund.

3. Related Party Disclosures

a) Enterprises Exercising Significant Influence over the Company

1 Maharashtra Erectors Private Limited (upto 09 September 2011)

b) Individuals Exercising Significant Influence over the Company

1 Chandrakant Sanghvi

c) Key Management Personnel

1 Chandrakant Sanghvi

2 Ramchandra Desai

3 Sham Kajale

d) Relatives of Individuals Exercising Significant Influence over the Company

1 Mina Sanghvi - Spouse of Chandrakant Sanghvi

2 Rishi Sanghvi - Son of Chandrakant Sanghvi

3 Niyoshi Sanghvi - Daughter of Chandrakant Sanghvi

4 Ruchi Sanghvi - Daughter of Chandrakant Sanghvi

5 Anilkumar Sanghvi - Brother of Chandrakant Sanghvi

e) Relatives of Key Management Personnel Exercising Significant Influence over the Company

1 Tanuja Desai - Spouse of Ramchandra Desai

f) Enterprises over which Key Management Personnel Exercise Significant Influence

1 Jethi Builders and Traders Private Limited

2 Sanghvi Erectors Private Limited

3 Maharashtra Erectors Private Limited

* As gratuity and compensated absences are computed for all the employees in aggregate, the amounts relating to the Key Managerial Personnel cannot be individually identified.

** Chandrakant Sanghvi has given personal guarantee up to Rs. 59.45 crores and has pledged his 5 lacs equity shares towards the loan for which no guarantee commission is paid by the Company.

** Mina Sanghvi has pledged her 1 lac equity shares towards a loan for which no guarantee commission is paid by the Company.

4. Deferral/Capitalisation of Exchange Differences

On 29 December 2011, the Ministry of Corporate Affairs ('MCA') has issued an amendment to Accounting Standard 11- The Effects of changes in Foreign Exchange Rates. The amendment permits Companies to defer/capitalise the exchange differences arising on Long Term Foreign Currency Monetary Items.

In accordance with the amendment, the Company has capitalised exchange differences arising on long term foreign currency loans, amounting to Rs. 1,230.01 (2011: 83.44) to the cost of plant and equipments. There is no exchange loss deferred in 'Foreign Currency Monetary Translation Difference Account', as there are no other long term foreign currency monetary items.

5. Segment Reporting

The Company is primaraly engaged in the business of providing cranes on rental basis. Further all the commercial operations of the Company are based in India. Accordingly, there is no separate reportable segment in accordance with AS 17- Segment Reporting prescribed under the Companies (Accounting Standards) Rules, 2006.

6. During the year, the Company corrected its accounting practice of recognising certain borrowing costs as cost of fixed assets resulting in the interest expense being higher by Rs. 678.66 (2011 : Nil) and consequently depreciation charge being lower by Rs. 199.29 (2011 : Nil) for the year with consequent profit before tax being lower by Rs. 479.37 (2011 : Nil) on account of the prior period item.

7. Prior Period Comparatives

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

8. The prior year financial statements have been audited by a firm of Chartered Accountants other than B S R & Co.

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Mar 31, 2011

1 Contingent Liabilities

a) Claims against the Company not acknowledged as debts – Rs.79.60 Lakhs (previous year Rs.75.60 Lakhs).

b) Guarantees issued by Company's bankers on behalf of the Company for performance of contractual obligations, or as security deposits, or as a condition of tender bids made by the Company, aggregate to Rs.324 Lakhs (previous year Rs.197 Lakhs). Some of them are covered by margins in the form of fixed deposits Rs.22 Lakhs (previous year Rs.2.52 Lakhs) and others by way of counter-guarantee and extension of charge on cranes which are hypothecated to the bank on existing term loans.

c) Bills Receivable which are discounted with bankers - Rs.2,801.33 Lakhs (previous year Rs.572.23 Lakhs).

d) Letters of Credit issued by Banks in foreign currencies for which goods were yet to be received on date of Balance Sheet US $ 24,41,750; Euro 43,04,996; Yen 90,08,569.

e) Income Tax Assessment demands contested in appeal – Rs.296.85 lakhs (previous year Rs.296.85 lakhs). The contested demand arises due to issues which do not warrant a provision to be made.

f) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs.Nil (previous year Rs.Nil Lakhs).

2 Secured Loans - Nature of Security

a) Term Loans from State Bank of India are secured by Hypothecation of Cranes and additions thereto which are funded there from and also collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans.

b) Term Loans from ING Vysya Bank are secured by Hypothecation of Cranes, Prime Movers & Trailers which are funded there from besides being collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans.

c) Term Loans from ICICI Bank Ltd and Letters of Credit accepted by the bank are secured by Hypothecation of Cranes which are funded there from besides being collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans.

d) Term Loans from The Saraswat Co-operative Bank Ltd are secured by Hypothecation of the respective Cranes and Vehicles, in aggregate, as well by Equitable Mortgage of certain Lands and Immovable properties and by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans.

e) Term Loans from Axis Bank and Letters of Credit accepted by the bank are secured by Hypothecation of the Cranes funded there from besides being collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans. One of the Term loan is personally guaranteed by the Managing Director.

f) Term Loans from HDFC Bank are secured by Hypothecation of the Cranes funded there from.

g) Term Loans from Corporation Bank are secured by Hypothecation of the Cranes funded there from besides being collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans with some loans being personally guaranteed by the Managing Director.

h) Term Loans from State Bank of Hyderabad are secured by Hypothecation of the Cranes funded there from with besides being collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans. Some loans being personally guaranteed by the Managing Director.

i) Term Loans from Bank of Baroda and Letters of Credit accepted by the bank are secured by Hypothecation of the Cranes and additions thereto funded there from besides being collaterally secured by Hypothecation of certain Cranes funded by the Bank in respect of its previous Term Loans. One of the Term Loan is personally guaranteed by the Managing Director.

j) Term Loans from Bank of India are secured by Hypothecation of the Cranes or additions thereto funded there from.

k) Cash Credit facilities availed from Dena Bank are secured against the Company's receivables. These are personally guaranteed by the Managing Director up to Rs.37 Crores.

l) Principal amount of secured Term Loans due for repayment within next 12 months - Rs.162.44 Crores (previous year Rs.148.52 Crores).

3 The Company has opted to follow the amended accounting standard rules with respect to change in foreign exchange rates by capitalising the gain or loss on foreign currency loans used for acquiring fixed assets to their cost. Accordingly, the cost of fixed assets has been adjusted accordingly.

4 Confirmations from Debtors of balances due to the Company are generally not received. In the management's view in the ordinary course of its business, the Company shall be able to realise the Debtors at the amounts they are stated.

5 Loans and Advances include Rs.13.88 Lakhs (previous year Rs.14.13 Lakhs) due from Officers of the Company. Aggregate of Maximum amounts due during the year was Rs.22.45 Lakhs (previous year Rs.19.42 Lakhs).

6 Managerial Remuneration :

a) To Mr. C. P. Sanghvi, Chairman and Managing Director comprises of Salary & Allowances Rs.144 Lakhs, Commission Rs.119 Lakhs, Payments towards (i) residential Electricity and Club fees & charges Rs.3.05 Lakhs, (ii) Medical Expenses Rs.0.14 lakh (iii) Contribution to Superannuation Fund Rs.37.26 Lakhs. Perquisite value of Car provided as per Income Tax Rules Rs.0.40 lakh.

b) To Mr. R. S. Desai, Executive Director, comprises of Salary & Allowances Rs.25.56 Lakhs, Payments towards (i) Medical Expenses Rs.0.15 lakh (ii) Contribution to Superannuation Fund 2.74 Lakhs. Perquisite value of Car provided as per Income Tax Rules Rs.0.26 lakhs.

c) To Mr. S. D. Kajale, Executive Director & CFO, comprises of Salary & Allowances Rs.23.04 Lakhs, Payments towards (i) Medical Expenses Rs.0.17 lakh and Contribution to Superannuation Fund Rs.2.47 Lakhs. Perquisite value of Car provided as per Income Tax Rules is Rs.0.26 lakhs.

7 Related Party Disclosures as per Accounting Standard 18 -

a) Key Management Personnel of the Company:

(i) Mr. C. P. Sanghvi, Managing Director,

(ii) Mr. R. S. Desai, Executive Director, and

(iii) Mr. S. D. Kajale Executive Director & CFO

b) Enterprises under control of Key Management Personnel :

(i) Maharashtra Erectors Private Limited (MEPL)

(ii) Sanghvi Hi-Lift Private Limited (SHPL)

(iii) Jethi Builders & Traders Private Limited (JBTPL)

c) Transactions with related parties :

(i) Remuneration to Key Management Personnel is stated at (7) above.

(ii) For services and facilities availed from MEPL Crane Hire Charges Rs.72.75 Lakhs and Trailer Hire Charges Rs.27 Lakhs

(iii) Advance from MEPL – at the beginning of the year – Nil, received Rs.740 lakhs and refunded Rs.100 lakhs.

(iv) Interest Paid to MEPL – Rs.43.40 lakhs.

(v) Sitting Fees Paid to Mrs Mina C. Sanghvi – Rs.1.00 lakhs

d) Mr C. P. Sanghvi has guaranteed some of the secured loans borrowed by the Company for which no guarantee commission is paid to him.

8 Employee Benefit Plans :

Defined Contribution Plans -

The Company makes Provident Fund, Pension Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. The Company charged Rs.18.41 Lakhs (previous year Rs.14.72 Lakhs) to the Profit & Loss Account towards Provident Fund and Pension Fund contributions and Rs.50.77 Lakhs (previous year Rs.49.32 Lakhs) towards Superannuation Fund contributions.

Defined Benefit Plans –

The Company makes annual contributions to the Employees' Group Gratuity cum Life Assurance Scheme of Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs upon completion of five years of service, except in case of death of permanent disability.

9 Foreign Currency Transactions :

a) Imports on CIF basis during the year in respect of :

Components and Spare Parts - Rs.685.67 Lakhs (previous year Rs.483.60 Lakhs) Capital Goods – Rs.26,381.24 Lakhs (previous year Rs.12,775.53 Lakhs)

b) Expenditure incurred in foreign currency during the year – Rs.27.32 Lakhs (previous year Rs.15.34 Lakhs)

c) Remittance of Dividends – Rs.132 Lakhs (previous year – Rs.88 lakhs)

10 As per Accounting Standard 17, the Company's Windmills are not a reportable segment and Operations from Cranes is the only reportable segment.

11 Installed Capacity – Wind Power Generation – 5.05 MW and Generation of Electricity – 55.29 Lakhs Kwh (previous year 78.32 Lakhs Kwh)

12 Previous year's figures have been regrouped wherever necessary.

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Mar 31, 2010

1 Contingent Liabilities

a) Claims against the Company not acknowledged as debts - Rs. 75.60 Lakhs (previous year Rs. 42.14 Lakhs).

b) Guarantees issued by Companys bankers on behalf of the Company for performance of contractual obligations, or as security deposits, or as a condition of tender bids made by the Company, aggregate to Rs. 197 Lakhs (previous year Rs. 483 Lakhs). Some of them are covered by margins in the form of fixed deposits Rs. 2.52 Lakhs (previous year Rs. 26.46 Lakhs) and others by of counter-guarantee and extension of charge on cranes which are hypothecated to the bank on existing term loans.

c) Bills Receivable which are discounted with bankers are Rs. 572.23 Lakhs (previous year Rs. 994.40 Lakhs).

d) Income Tax Assessment Order for financial year 2006-07 was received in December, 2009 raising a rectified demand of Rs. 303.68 Lakhs. Of the same Rs. 6.83 Lakhs has been accepted and paid. Balance demand of Rs. 296.85 Lakhs though contested in an appeal is being partly adjusted against various refunds receivable and was partly paid. The contested demand arises due to issues which do not warrant a provision to be made.

e) Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. Nil (previous year Rs. 3,483 Lakhs).

2 Secured Loans :- Nature of Security

a) Term Loans from State Bank of India are secured by Hypothecation of Cranes and additions thereto which are funded there from and also collaterally secured by way of Mortgage of certain Windmills and by Hypothecation of certain Cranes. Some of the loans are also personally guaranteed by the Managing Director.

b) Term Loans from ING Vysya Bank are secured by Hypothecation of Cranes which are funded there from besides being collaterally secured by Hypothecation of certain Cranes. Some of the loans are also personally guaranteed by the Managing Director.

c) Term Loans from ICICI Bank Ltd are secured by Hypothecation of Cranes and Tractor Trailers which are funded there from besides being collaterally secured by Hypothecation of certain Cranes. Some of the loans are also personally guaranteed by the Managing Director.

d) Term Loans from The Saraswat Co-operative Bank Ltd are secured by Hypothecation of the respective Cranes and vehicle, in aggregate, as well by Equitable Mortgage of certain Lands and Immovable properties and by Hypothecation of certain Cranes. Some of the loans are also personally guaranteed by the Managing Director.

e) Term Loans from Axis Bank are secured by Hypothecation of the Cranes funded there from with some loans being personally guaranteed by the Managing Director.

f) Term Loans from HDFC Bank are secured by Hypothecation of the Cranes funded there from.

g) Term Loans from Corporation Bank are secured by Hypothecation of the Cranes funded there from with some loans being personally guaranteed by the Managing Director.

h) Term Loans from State Bank of Hyderabad are secured by Hypothecation of the Cranes funded there from with some loans being personally guaranteed by the Managing Director.

i) Term Loans from Bank of Baroda are secured by Hypothecation of the Cranes or additions thereto funded there from with some loans being personally guaranteed by the Managing Director.

j) Term Loans from Bank of India are secured by Hypothecation of the Cranes or additions thereto funded there from.

k) Cash Credit facilities availed from Dena Bank are secured against the Companys receivables. These are personally guaranteed by the Managing Director upto Rs. 35 Crores.

l) Principal amount of secured Term Loans due for repayment within next 12 months - Rs. 14,852 Lakhs.

3 Stores and spare parts for repairs and maintenance of cranes and trailers were being expensed out on purchase as consumables. Management considered it expedient to take an inventory of spare parts at the year end and has valued it at cost resulting in an increase in Profit before Tax by Rs. 2,88,80,340.

4 The Company has opted to follow the amended accounting standard rules with respect to change in foreign exchange rates by capitalising the gain or loss on foreign currency loans used for acquiring fixed assets to their cost. Accordingly, cost of fixed assets has been reduced by gain of Rs. 149.10 Lakhs.

5 Confirmations from Debtors of balances due to the Company are generally not received. In the managements view in the ordinary course of its business, the Company shall be able to realise the Debtors at the amounts they are stated.

6 Loans and Advances include Rs. 14.13 Lakhs (previous year Rs. 8.33 Lakhs) due from Officers of the Company. Aggregate of Maximum amounts due during the year was Rs. 19.42 Lakhs (previous year Rs. 15.08 Lakhs).

7 Managerial Remuneration :

a) To Shri C. P. Sanghvi, Chairman and Managing Director comprises of Salary and Allowances Rs. 144 Lakhs, Commission Rs. 133 Lakhs, Payment of residential Electricity and Club fees & charges Rs. 1.94 Lakhs, Reimbursement of Medical Expenses 0.67 Lakhs, Contribution to Superannuation Fund Rs. 37.26 Lakhs. The perquisite value of one Car provided as per Income Tax Rules is Rs. 0.40 Lakhs.

b) To Shri R. S. Desai, Executive Director, comprises of Salary & Allowances Rs. 21.92 Lakhs, Performance Linked Incentive Rs. 6 Lakhs, Reimbursement of Medical Expenses Rs. 0.15 Lakhs and Contribution to Superannuation Fund Rs. 2.28 Lakhs. The perquisite value of one Car provided as per Income Tax Rules is Rs. 0.22 Lakhs.

c) To Shri S. D. Kajale, Executive Director & CFO, comprises of Salary & Allowances Rs. 19.73 Lakhs, Performance Linked Incentive Rs. 5.60 Lakhs, Reimbursement of Medical Expenses Rs. 0.15 Lakhs and Contribution to Superannuation Fund Rs. 2.05 Lakhs. The perquisite value of one Car provided as per Income Tax Rules is Rs. 0.22 Lakhs.

8 Related Party Disclosures as per Accounting Standard 18 :

a) Key Management Personnel of the Company : (i) Mr. C. P. Sanghvi, Managing Director,

(ii) Mr. R. S. Desai, Executive Director, and (iii) Mr. S. D. Kajale Executive Director & C.F.O.

b) Enterprises under control of Key Management Personnel : (i) Maharashtra Erectors Private Limited (MEPL)

(ii) Sanghvi Hi-Lift Private Limited (SHPL)

(iii) Jethi Builders & Traders Private Limited (JBTPL)

c) Transactions with related parties :

i) Remuneration to Key Management Personnel is stated at (8) above.

ii) For services and facilities availed from MEPL, Crane Hire Charges Rs. 111.05 Lakhs and Trailer Hire Charges Rs. 21 Lakhs.

iii) Advance to MEPL - at the beginning of the year Rs. 70 Lakhs, received back Rs. 70 Lakhs, at the end of the year Rs. Nil.

iv) Interest Received from MEPL – Rs. 2.82 Lakhs.

v) Advance from MEPL - at the beginning of the year - Nil, received Rs. 435 Lakhs and refunded Rs. 435 Lakhs.

vi) Interest Paid to MEPL – Rs. 12.44 Lakhs.

vii) S a l ary to Niyoshi C. Sanghvi – Rs. 3.17 Lakhs.

viii) Sitting Fees Paid to Mrs. Mina C. Sanghvi – Rs. 0.70 Lakhs.

d) Mr. C. P. Sanghvi has guaranteed secured loans borrowed by the Company for which no guarantee commission is paid to him.

9 Employee Benefit Plans :

Defined Contribution Plans -

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. The Company charged Rs. 14.72 Lakhs (previous year Rs. 14.75 Lakhs) to the Profit & Loss Account towards Provident Fund contribution and Rs. 49.32 Lakhs (previous year.40.48Lakhs) towards Superannuation Fund contributions.

Defined Benefit Plans -

The Company makes annual contributions to the Employees Group Gratuity cum Life Assurance Scheme of Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for each completed year of service. Vesting occurs upon completion of five years of service, except in case of death or permanent disability.

10 Foreign Currency Transactions :

a) Imports on CIF basis during the year in respect of :

Components and Spare Parts - Rs. 483.60 Lakhs (previous year Rs. 489.75 Lakhs)

Capital Goods - Rs. 12,775.53 Lakhs (previous year Rs. 19,622.45 Lakhs)

b) Expenditure incurred in foreign currency during the year - Rs. 15.34 Lakhs (previous year Rs. 20.65 Lakhs)

c) Remittance of Dividends - Rs. 88 Lakhs (previous year Rs. 132 Lakhs)

11 As per Accounting Standard 17, the Companys Windmills are not a reportable segment and Operations from Cranes is the only reportable segment.

12 Installed Capacity - Wind Power Generation - 5.05 MW and Generation of Electricity - 78.32 Lakhs Kwh (previous year 78.01 Lakhs Kwh)

13 Previous years figures have been regrouped wherever necessary.