(viii) Provisions, contingent liabilities and contingent
assets
Provisions are recognised when the Company has a
present obligation as a result of past events, for which
it is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation and a reliable estimate of the amount can
be made. A disclosure for a contingent liability is
made where there is a possible obligation that arises
from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence
of one or more uncertain future events not wholly within
the control of the Company or a present obligation
that arises from the 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. Provisions are reviewed
regularly and are adjusted where necessary to reflect
the current best estimates of the obligation. Where
the Company expects a provision to be reimbursed,
the reimbursement is recognised as a separate asset,
only when such reimbursement is virtually certain.
Contingent asset is not recognised in the standalone
financial statements. However, it is recognised only
when an inflow of economic benefits is probable.
(ix) Borrowing costs
Borrowings are initially recognised at net of
transaction costs incurred and measured at
amortised cost. Any difference between the proceeds
(net of transaction costs) and the redemption amount
is recognised in the standalone statement of profit
and loss over the period of the borrowings using the
effective interest method.
Borrowing costs majorly includes interest and
amortisation of ancillary costs incurred in connection
with the arrangement of borrowings. Borrowing costs
directly attributable to the acquisition, construction
or production of an asset that necessarily takes
a substantial period of time to get ready for its
intended use or sale are capitalised as part of the
cost of the respective asset. All other borrowing
costs are expensed in the period in which they occur.
The Company ceases capitalising borrowing costs
when substantially all the activities necessary to
prepare the qualifying asset for its intended use or
sale are complete.
(x) Income recognition
Revenue recognition
When a performance obligation is satisfied, the
Company recognises as revenue the amount of
the transaction price (which excludes estimates
of variable consideration) that is allocated to that
performance obligation. Transaction price is the
amount of consideration to which the Company
expects to be entitled in exchange for transferring
promised goods or services to a customer, excluding
amounts collected on behalf of third parties.
Ind AS 115 “Revenue from Contract with Customers”
specifies five step model for revenue recognition:
1. Identify the contract with a customer;
2. Identify the separate performance obligations
in the contract;
3. Determine the transaction price;
4. Allocate the transaction price to the separate
performance obligations; and
5. Recognize revenue when (or as) each
performance obligation is satisfied.
Company accounts for a contract when it has
approval and commitment from all parties, the rights
of the parties are identified, payment terms are
identified, the contract has commercial substance
and collectability of consideration is probable.
Revenue is recognised in the standalone statement
of profit and loss with the contracted price showing
separately each of the adjustments made to the
contract price and specifying the nature and amount
of each such adjustment separately.
The Company satisfies a performance obligation and
recognises revenue over time, if one of the following
criteria is met:
1. The customer simultaneously receives
and consumes the benefits provided
by the Company’s performance as the
Company performs; or
2. The Company’s performance creates or
enhances an asset that the customer controls
as the asset is created or enhanced; or
3. The Company’s performance does not create
an asset with an alternative use to the Company
and an entity has an enforceable right to
payment for performance completed to date.
For performance obligations where one of the above
conditions are not met, revenue is recognised
at the point in time at which the performance
obligation is satisfied.
Revenue is measured based on the transaction price
(which is the consideration, adjusted to discounts,
incentives and returns, etc., if any) that is allocated
to that performance obligation. These are generally
accounted for as variable consideration estimated
in the same period the related sales occur. The
methodology and assumptions used to estimate
rebates and returns are monitored and adjusted
regularly in the light of contractual and legal
obligations, historical trends, past experience and
projected market conditions.
The Company does not expect to have any contracts
where the period between the transfer of the promised
goods or services to the customer and payment by
the customer exceeds one year. As a consequence,
it does not adjust any of the transaction prices for the
time value of money.
The Company collects goods and services tax
(‘GST’) and other indirect taxes on behalf of the
government and, therefore, these are not economic
benefits flowing to the Company and are accordingly
excluded from the revenue.
Revenue from collection and transportation of
municipal solid waste and mechanical power
sweeping of roads
Revenue from mechanical power sweeping and
collectionand transportation of municipal solid
waste is recognised when the services have been
performed. Revenue is product of swept kilometers
of roads/ waste tonnage collected to the rates agreed
with the customer, i.e., Municipal Corporation.
Performance obligation is satisfied at a point in time
when the actual service is performed.
Vehicle leasing income
Revenue from short-term vehicle leasing contracts
is recognised on a straight-line basis over the lease
term, reflecting the pattern in which the Company
satisfies its performance obligation by providing
access to the leased vehicle.
No lease receivable is recognised, and the underlying
asset remains on the Company’s balance sheet.
Lease income is presented as part of operating
revenue in the standalone statement of profit or loss.
Revenue from sale of scrap is recognised at the
point in time when control of the goods is transferred
to the customer in accordance with the terms
of the contract.
Other operating income
It includes revenue arising from the reversal of
operating liabilities or revenue arising from Company’s
ancillary revenue-generating activities. Revenue from
these activities are recorded only when Company is
reasonably certain of such income.
Other income
Other income majorly comprises interest income
which is recognised using the effective interest
method and on time proportion basis.
Cost to fulfil the contracts
Recurring operating costs for contracts with customers
are recognised as incurred. Revenue recognition
excludes any government taxes but includes
reimbursement of out of pocket expenses. Provision
towards onerous contracts are recognised when the
expected benefits to be derived by the Company from
a contract are lower than the unavoidable cost of
meeting the future obligations under the contract. The
provision is measured at present value of the lower of
the expected cost of terminating the contract and the
expected net cost of continuing with the contract.
Incremental costs of obtaining a contract
The incremental costs of obtaining a contract are
those costs that an entity incurs to obtain a contract
with a customer that it would not have incurred
if the contract had not been obtained. In such
cases, Company applies practical expedient by
recognising such cost as expense, when incurred, in
the standalone statement of profit and loss instead
of creating an asset as the amortisation period of
the asset that the Company otherwise would have
recognised is one year or less.
Significant financing component
Company considers all relevant facts and
circumstances in assessing whether a contract
contains a financing component and whether that
financing component is significant to the contract,
including both the conditions:
(a) the difference, if any, between the amount of
promised consideration and the cash selling
price of the promised goods or services; and
(b) the combined effect of both the
following conditions:
(i) the expected length of time between
when the entity transfers the promised
goods or services to the customer and
when the customer pays for those goods
or services; and
(ii) the prevailing interest rates in the
relevant market.
Trade receivables and contract liabilities
Trade Receivable, net is primarily comprised of billed
receivables for which the Company has an unconditional
right to consideration, net of loss allowance.
Contract liabilities consist of advance payments. The
difference between opening and closing balance
of the contract liabilities results from the timing
differences between the performance obligation and
customer payment.
(xi) Income tax
Tax expense for the year comprises of current tax
and deferred tax. Current tax is measured by the
amount of tax expected to be paid to the taxation
authorities on the taxable profits after considering
tax allowances and exemptions and using applicable
tax rates and laws. Deferred tax is recognised on
temporary differences between the accounting base
and the tax base for the year and quantified using
the tax rates and tax laws enacted or substantively
enacted as on the balance sheet date.
There are certain transactions and calculations for
which the ultimate tax determination is uncertain.
The Company recognises liabilities for anticipated
tax issues based on estimates of whether additional
taxes will be due. The uncertain tax positions are
measured at the amount expected to be paid to
taxation authorities when the Company determines
that the probable outflow of economic resources will
occur. Where the final tax outcome of these matters
is different from the amounts that were initially
recorded, such differences will impact the current
and deferred income tax assets and liabilities in the
period in which such determination is made.
Deferred tax is recognised using the balance sheet
approach. Deferred tax assets and liabilities are
recognised for deductible and taxable temporary
differences arising between the tax base of assets
and liabilities and their carrying amount in standalone
financial statements, except when the deferred tax
arises from the initial recognition of goodwill or an
asset or liability in a transaction that is not a business
combination and affects neither accounting nor
taxable profits or loss at the time of the transaction.
Deferred tax asset is recognised to the extent it is
probable that taxable profit will be available against
which the deductible temporary differences, and
the carry forward of unused tax credits and unused
tax losses can be utilised. Deferred tax liabilities are
recognised for all taxable temporary differences.
Deferred tax is measured at the tax rates that are
expected to apply to the period when the asset is
realised or the liability is settled, based on the laws
that have been enacted or substantively enacted by
the reporting date.
The measurement of deferred tax reflects the tax
consequences that would follow from the manner
in which the Company expects, at the reporting
date, to recover or settle the carrying amount of its
assets and liabilities. For this purpose, the carrying
amount of investment property is presumed to be
recovered through sale.
Current tax and deferred tax assets and liabilities are
offset when there is a legally enforceable right to set
off the recognised amount and there is an intention to
settle the asset and liability on a net basis.
(xii) Share based payments
The Company determines the compensation cost
based on the fair value method using Black-Scholes-
Merton formula, in accordance with Ind AS 102
“Share-based Payment”. The Company grants
options to its employees which will be vested in a
graded manner and are to be exercised within a
specified period. The compensation cost is amortised
on graded basis over the vesting period. The share
based payment expense is determined based on the
Company’s estimate of equity instrument that will
eventually vest.
The amounts recognised in “Share options
outstanding account” are transferred to share capital
and securities premium upon exercise of stock options
by employees. Where employee stock options lapse
after vesting, an amount equivalent to the cumulative
cost for the lapsed option is transferred from “Share
options outstanding account” to “General reserve”.
The Company has implemented the stock option
plan through creation of an employee benefit trust.
The Company treats such trust as its extension and
shares held by the trust are treated as ‘treasury
shares’. The stock options exercised by the eligible
employees are settled through the trust. The balance
equity shares not yet issued to eligible employee, and
held by the trust, are disclosed as a reduction from
the share capital and securities premium account.
(xiii) Financial guarantee contract/ Guarantee
commission
Financial guarantee contracts issued by the
Company are those contracts that require a payment
to be made to reimburse the holder for a loss it
incurs because the specified debtor fails to make a
payment when due in accordance with the terms of
a debt instrument. Financial guarantee contracts are
recognised initially as a liability at fair value, adjusted
for transaction costs that are directly attributable
to the issuance of the guarantee. Subsequently,
the liability is measured at the higher of the amount
of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount
recognised less, when appropriate, the cumulative
amount of income recognised in accordance with the
principles of Ind AS 115 “Revenue from Contracts
with Customers” (‘Ind AS 115’).
(xiv) Investment in subsidiaries, associate and joint
venture
Investment in subsidiary, associate and joint venture
is carried at cost less accumulated impairment losses,
if any. Where an indication of impairment exists,
the carrying amount of the investment is assessed
and written down immediately to its recoverable
amount. On disposal of investment in subsidiary, the
difference between net disposal proceeds and the
carrying amounts are recognised in the standalone
statement of profit and loss.
(xv) Exceptional items
When items of income and expense within profit or
loss from ordinary activities are of such size, nature
or incidence that their disclosure is relevant to assist
users in understanding the financial performance
achieved and in making projections of future financial
performance, the nature and amount of such material
items are disclosed separately as exceptional items.
(xvi) Treasury shares - ESOP Trust
Treasury shares issued to the ESOP Trust are
recorded as a deduction from equity under a
separate line item titled “Shares held in ESOP Trust”.
These shares are measured at cost at the time of
transfer to the trust. The ESOP trust is considered an
extension of the Company; hence, shares held by the
trust are treated as treasury shares until exercised or
transferred to employees. Treasury shares related to
forfeited options remain in the ESOP trust and can be
reallocated or cancelled.
(xvii) Recent accounting pronouncements
Ministry of Corporate Affairs (‘MCA’) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards)
Rules, 2015 (as amended). For the year ended 31
March, 2025, MCA has notified Ind AS 117 “Insurance
Contracts” and amendments to Ind AS 116 “Leases”,
relating to sale and leaseback transactions, which
is applicable w.e.f. 01 April 2024. The Company
has reviewed the new pronouncements and based
on its evaluation has determined that it is not
likely to have any material impact in its standalone
financial statements.
New standards and amendments issued but
not effective - On 7 May 2025, MCA notifies the
amendments to Ind AS 21 “Effects of Changes in
Foreign Exchange Rates”. These amendments aim
to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates
when currencies are not readily exchangeable.
The amendments are effective for annual periods
beginning on or after 1 April 2025. The Company
is currently assessing the probable impact of these
amendments on its standalone financial statements.
3 Non-current investment (Contd..)
On the scheme becoming effective, the Company's holdings in KL Envitech and Antony Infrastructure were cancelled, and
AGEIPPL issued additional equity shares to the Company. Consequently, the Company reversed the previously recognised
impairment provision of H 153.99 lakhs (impairment provision on investment: H 61.01 lakhs and impairment provision on other
financial assets: H 92.98 lakhs, refer note 6) related to its holding in KL Envitech.
(ii) As at 31 March 2025 and 31 March 2024, the Company has pledged the equity investment in favour of the respective lenders
of the subsidiary as a part of financing agreement for the facilities availed by such subsidiary.
12 Equity share capital (Contd..)
(g) Rights, preference and restriction on equity shares
The Company has only one class of equity shares having par value of H 5 per share. Each holder of equity share is entitled to
one vote per equity share. The Company declares and pays dividends in H. The dividend, if any, proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except for interim dividend
which is approved by the Board.
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive assets of the Company
remaining after distribution of all preferential amounts. The distribution will be in proportion to the number of fully paid-up equity
shares held by the shareholders.
(h) Employee stock option scheme
During the financial year ended 31 March 2023, the Company had granted 100,000 options to the employees of the Company
and its the subsidiaries. The shareholders of the Company at their meeting held on 27 September 2022 had approved AWHCL
Employee Stock Option Plan 2022 ('AWHCL ESOP 2022'). Options granted under AWHCL ESOP 2022 vest on the expiry of
one year from the date of grant i.e.,19 December 2022. The options may be exercised over a period of five years from the
date of vesting and are settled in equity on exercise. According to the scheme, the employees selected by the Nomination and
Remuneration Committee from time to time will be entitled to options.
The Company formed an “AWHCL Employee Welfare Trust” (‘AWHCL EWT’) for allotment of equity shares of the Company
under the AWHCL ESOP 2022. On 14 December 2023, the Company had issued 94,930 equity shares to AWHCL EWT. The
Company consider equity shares held by AWHCL EWT as treasury shares and accordingly, adjusted such shares issued from
its share capital and securities premium account.
Volatility : Volatility is a measure of the amount by which a price has fluctuated or is expected to fluctuate during the period.
The measure of volatility used in Black-Scholes-Merton formula is the annualised standard deviation of the continuously
compounded rates of return on the stock over a period of time. Company considered the daily historical volatility of Company's
stock price on NSE over a period prior to the date of grant, corresponding with the expected life of the options.
Risk free rate : The risk free rate being considered for the calculation is the interest rate applicable for a maturity equal to the
expected life of the options based on zero coupon yield curve for government securities.
Expected life of the options : Expected life of the options is the period for which the Company expects the options to be live.
The minimum life of stock options is the minimum period before which the options cannot be exercised and the maximum life
of the option is the maximum period after which the options cannot be exercised. The Company has calculated expected life
as the average of the minimum and the maximum life of the options.
Dividend yield : Expected dividend yield has been calculated by dividing the last declared dividend per share by the market
price per share as on the date of grant.
19 Revenue from operations (Contd..)
Performance obligation
Revenue from collection and transportation of municipal solid waste and mechanical power sweeping of roads is provided to various
municipal corporations and the performance obligation is satisfied at point in time.
Revenue from sale of scrap is recognised at the point in time when control of the goods is transferred to the customer in accordance
with the terms of the contract.
Revenue from short-term vehicle leasing contracts is recognised on a straight-line basis over the lease term, reflecting the pattern in
which the Company satisfies its performance obligation by providing access to the leased vehicle.
Disaggregation of revenue
The tables below present disaggregated revenue from contracts with customers by customer location and type of services. The
Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are
affected by industry, market and other economic factors.
27 Financial instruments
Financial Instrument by category and hierarchy
The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a
current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions are
used to estimate the fair values:
1. Fair value of cash and cash equivalents, bank balances other than cash and cash equivalents, trade receivables, trade
payables and other current financial assets/ liabilities approximate their carrying amounts largely due to short term maturities
of these instruments. The trade receivables do not have a significant financing component and retention is deducted under the
contractual terms. There is no significant benefit of financing to either of the party.
2. Financial instruments are evaluated by the Company based on parameters such as individual credit worthiness of the counter¬
party. Based on this evaluation, allowances are taken to account for expected losses on these receivables. Accordingly, fair
value of such instruments is not materially different from their carrying amounts.
3. The fair value for deposits is calculated based on cash flows discounted using market interest rate on the date of initial
recognition and subsequently on each reporting date. The lease liability is initially recognised at the present value of the
future lease payments and is discounted using the interest rate implicit in the lease or, if not readily determinable, using the
incremental borrowing rates and subsequently measured at amortised cost.
4. Fair value of long term borrowings and long term loans (receivable) approximate their carrying amounts as the interest rate is
equal to the market interest rate.
5. Rights to reimbursement of expenditure is not fair valued as per the provisions of Ind AS 37 “Provisions, Contingent Liabilities
and Contingent Assets”.
The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments
by valuation technique:
Level 1: quoted (unadjusted) prices 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 : techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable
market data (unobservable inputs).
There have been no transfer amongst the levels of fair value hierarchy during the year.
For assets and liabilities that are recognised in the standalone financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input
that is significant to the fair value measurement as a whole) at the end of each reporting period.
28 Financial risk management objectives and policies
The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s primary focus
is to foresee the unpredictability of financial markets and seek to minimise potential adverse effects on its financial performance. The
Company's management oversees these risks and formulates the policies which are reviewed and approved by the Audit Committee
and Board of Directors, as applicable. Such risks are summarised below:
a) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market
prices. The primary market risk to the Company is interest risk.
Foreign currency risk: Foreign exchange risk arises from commercial transactions and recognised assets and liabilities
denominated in a currency that is not the functional currency of the Company. The Company do not have dealing in foreign
currencies. Also, the asset balance i.e., investment and other financial assets in AED currency is fully provided for in the past
years. Therefore, the Company do not have exposure to foreign currency risk.
Interest risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the
Company's debt obligations.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises from cash and cash equivalents, bank balances other than cash and cash equivalents,
security deposits, loans as well as credit exposures to customers including outstanding receivables. The maximum exposure
to credit risk is equal to the carrying value of the financial assets.
Trade receivables
The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. To manage
this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition,
current economic trends, forward looking macroeconomic information, analysis of historical bad debts and ageing of accounts
receivables. Individual risk limits are set accordingly. The Company’s exposure to credit risk is influenced mainly by the
individual characteristics of each customer. The demographics of the customer including the default risk of the industry and
country in which the customer operates also has an influence on credit risk assessment.
The expected credit loss rates are based on the payment profiles of sales over a period of 3 years before the reporting date and
the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current
and forward-looking information on macro-economic factors affecting the ability of the customers to settle the receivables. The
Company recognises lifetime expected losses for all trade receivables that do not constitute a financing component.
The Company has low concentration of credit risk as the customer base is distributed. The Company has 4 customers (31
March 2024: 3 customers) is contributing 90.26% of outstanding trade receivables as at 31 March 2025 (31 March 2024:
82.30%). These customers are municipal corporations and the credit risk is minimal with no history of dispute/ non-recovery.
Outstanding customer receivables are regularly monitored.
Other financial assets
The Company periodically monitors the recoverability and credit risks of its other financial assets. The Company evaluates 12
months expected credit losses for all the financial assets for which credit risk has not increased significantly. In case credit risk
has increased significantly, the Company considers life time expected credit losses for the purpose of impairment provisioning.
The Company has considered financial condition, current economic trends, forward looking macroeconomic information,
analysis of historical bad or doubtful receivables and ageing of receivables related to cash and cash equivalents, bank balances
other than cash and cash equivalents, security deposits, loans and other financial assets. In most of the cases, risk is considered
low since the counterparties are reputed organisations with no history of default to the Company and no unfavourable forward
looking macro economic factors. Wherever applicable, loss allowance is recorded.
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. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for financial liabilities as well
as forecast cash inflow and outflows due in day to day business. In addition, processes and policies related to such risks are
overseen by senior management. The Company's management monitors the net liquidation position through rolling forecast
on the basis of expected cash flows. The Company have undrawn facility of H 172.25 lakhs (31 March 2024: 3.66 lakhs) as at
reporting date, that is secured and can be drawn down to meet short-term financing needs. Interest would be payable at a rate
mutually agreed with banks at the time of drawdown.
Also, the probability that guarantee given by the Company on behalf of its subsidiaries, for their respective borrowings, will
be invoked, is remote. Antony Lara Enviro Solutions Private Limited and AG Enviro Infra Projects Private Limited have history
of timely repayment and financial strength to repay the loans. Accordingly, such guarantees are not expected to impact the
liquidity risk profile of the Company.
30 Details of significant investments in accordance with Ind AS 27
Section 129(3) of the Act requires preparation of consolidated financial statements of the holding company and of all the subsidiaries
including associate company and joint venture businesses in the same form and manner as that of its own. Ind AS 28 defines
Associate as an entity over which the investor has significant influence. It mentions that if an entity holds, directly or indirectly
through intermediaries, 20% or more of the voting power of the enterprise, it is presumed that the entity has significant influence,
unless it can be clearly demonstrated that this is not the case. Also, the fact that an investor does not have significant influence in
an enterprise can be demonstrated through following conditions:
(i) The investor does not have any representation on the board of directors or corresponding governing body of the investee.
(ii) The investor does not participate in policy making process.
(iii) The investor does not have any material transactions with the investee.
31 Related party transactions (Contd..)
Notes:
(i) The remuneration to the KMP does not include the provisions made for gratuity and compensated absences, as they are
determined on an actuarial basis for the Company as a whole.
(ii) The Company has paid the remuneration to its directors during the year in accordance with the provision of and limits laid
down under section 197 read with Schedule V to the Act.
(e) Other arrangements
1 On the scheme becoming effective, the Company's holdings in KL EnviTech Private Limited and Antony Infrastructure
and Waste Management Services Private Limited were cancelled, and AG Enviro Infra Projects Private Limited issued
additional equity shares to the Company [Refer note 3(i)].
2 As agreed between the Board of Directors of the Company and Antony Recycling Private Limited ('Antony Recycling'),
an amount equivalent to the Company's net carrying value of investment in Antony Recycling will be invested in bank
deposits by Antony Recycling and it will not be available for working capital requirement of the investee (Refer note 3A).
Also, Jose Jacob Kallarakal has given commitment for financial support to Antony Recycling.
3 The Company has extended the term of repayment by one year for unsecured loans receivable from Antony Recycling
Private Limited and AG Enviro Infra Projects Private Limited (refer note 5).
4 For the loans to related parties that are repayable on demand or without specifying any terms or period of
repayment, refer note 5.
5 The Company has unsecured borrowings from related party which is interest-free.
6 The cash credit facility is secured by :
31 March 2025
- Personal guarantee of Jose Jacob Kallarakal and Shiju Jacob Kallarakal
31 March 2024
- Equitable mortgage of a property belonging to Antony Motors Private Limited
- Personal guarantee of K Jose Antony, Tito Varghese Kallarakkal, Jose Jacob Kallarakal and Shiju Jacob Kallarakal
- Corporate guarantee of AG Enviro Infra Projects Private Limited, KL Envitech Private Limited and Antony Infrastructure
and Waste Management Services Private Limited
7 Refer note 44(f) for the arrangement between the Company and Antony Recycling for onward funding.
8 The Company has given commitment for financial support to Antony Recycling, Antony Lara Renewable Energy Private
Limited and AG Enviro Infra Projects Private Limited.
9 The Company's investment in equity shares of Antony Lara Enviro Solutions Private Limited is pledged in favour of the
respective lenders of the subsidiary as a part of financing agreement for the facilities availed by such subsidiary.
10 Refer note 34(A) for corporate guarantee given by the Company on behalf of its subsidiaries.
Notes:
1 There are no other commitments with any related party during the year or as at year end.
2 All the related party transactions are made on terms equivalent to those that prevail in an arm's length transaction, for
which prior approval of Audit Committee and/ or Board of Directors, as applicable, was obtained during the year ended
31 March 2025 and 31 March 2024.
32 Segment reporting
The Company is primarily engaged into business of providing service pertaining to collection and transportation of waste along
with mechanical power sweeping of roads. The Chief Operating Decision Maker ('CODM') reviews the Company's performance as
a single business segment, i.e., integrated waste management & allied activities. As the activities of the Company comprise of only
one segment and accordingly, the standalone financial statements are reflective of the information required by Ind AS 108 'Operating
Segments'. Also, the entire operations of the Company in terms of location of assets are within India.
33 Audit trail
The Ministry of Corporate Affairs (‘MCA’) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting
software for maintaining its books of account, to use only such accounting software which has a feature of recording audit trail
of each and every transaction, creating an edit log of each change made in the books of account along with the date when such
changes were made and ensuring that the audit trail cannot be disabled.
The Company has used an accounting software for maintaining its books of account which has a feature of audit trail (edit log)
facility and the same was enabled at the application level. During the year ended 31 March 2025, the Company has not enabled
the feature of recording audit trail (edit log) at the database level for the said accounting software to log any direct data changes.
Additionally, the audit trail has been preserved by the Company as per the statutory requirements for record retention where such
feature was enabled.
Footnotes:
(a) It represents claims for vehicle accident cases.
(b) It represents demands raised by the direct tax authority on various grounds, which are contested by the Company.
Notes:
1. The Honorable Supreme Court, had passed a decision on 28 February 2019 in relation to inclusion of certain allowances
within the scope of "Basic wages" for the purpose of determining contribution to provident fund under the Employees'
Provident Funds & Miscellaneous Provisions Act, 1952. The Company, based on legal advice, is awaiting further
clarifications in this matter in order to reasonably assess the impact on its standalone financial statements, if any.
Accordingly, the applicability of the judgement to the Company, with respect to the period and the nature of allowances
to be covered, and resultant impact on the past provident fund liability, cannot be reasonably ascertained, at present.
34 Contingent liabilities and commitments (Contd..)
2. The Income Tax Department conducted searches at two of the Company's business premises and certain Directors'
residences in October 2021 under the Income-tax Act, 1961 ('IT Act'). The Company fully cooperated during and after
the proceedings.
Until 31 March 2024, the Company received demand orders u/s 143(3) and 147 of the IT Act for AY 2018-19, AY 2021-22
to AY 2022-23, primarily related to expense disallowances. After considering all the available records and information,
appeals against these demand orders were filed with the Commissioner of Income Tax (Appeals). The Company also
filed a rectification application with the Assessing Officer in respect of certain adjustments made by them for AY 2018-19
and AY 2021-22.
During the year ended 31 March 2025, demand orders u/s 147 were received for AY 2019-20 and AY 2020-21 relating to
similar expense disallowances. The Company has filed appeals and rectification applications, as applicable, with CIT(A)
and AO, respectively, against these demand orders. Further, a favorable rectification order was received by the Company
for AY 2021-22.
While the outcome of these proceedings remains uncertain, management, after consulting external experts on its
tax position and reviewing the available relevant documentation, believes the Company's position is well-supported.
Accordingly, no material adjustments have been made to the standalone financial statements.
3. The Company is contesting all of the above demands in respect of income tax and the management believes that
its positions are likely to be upheld at the appellate stage. No expense has been accrued in the standalone financial
statements for the aforesaid demands. The management believes that the ultimate outcome of these proceedings are not
expected to have a material adverse effect on the Company's financial position and results of operations and hence no
provision has been made in this regard.
4. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending
resolution of the respective proceedings.
5. The amounts disclosed above represent the best possible estimates arrived at on the basis of available information and
do not include any penalty payable.
6. The Company does not expect any reimbursements in respect of the above contingent liabilities.
7. Amount outstanding as at balance sheet date represents gross demand raised by the tax authorities, as amount paid
under protest is not charged to the standalone statement of profit and loss by the Company
36 Leases
The Company's lease was for office space. There was no extension options in the lease agreements. For termination options,
management exercised significant judgement in determining whether the termination option was reasonably expected to be
exercised. Since it was reasonably certain to not exercise termination option, the Company had opted to ignore termination option
in determination of lease term. Further, Company was not exposed to any variable lease payments or residual value guarantee. The
lease contract was completed during the year ended 31 March 2024.
As the lease contract was completed in the year ended 31 March 2024, the disclosure in relation to contractual maturities of lease
liabilities is not applicable.
Notes:
1. The Company has not entered into any sale and lease back transaction.
2. There were no significant restrictions or covenants imposed on leases.
3. Refer note 28 for liquidity risk.
37 Trade receivables (non-current) as at 31 March 2024 included long overdue receivables from Navi Mumbai Municipal
Corporation ('NMMC') of H 398.06 lakhs which was under litigation. During the year ended 31 March 2025, the Hon'ble High
Court of Bombay ruled in the Company's favor. The Company has received H 2,786.70 lakhs (including interest), and the excess
amount of H 2,388.64 lakhs has been recognized as an exceptional gain in the standalone financial statements.
Trade receivables (non-current) as at 31 March 2024 also included long overdue receivables from Amritsar Municipal
Corporation of H 168.33 lakhs which was under litigation. Owing to the aforesaid legal case, the recoverability of the amount
was expected to take some time. However, management was confident of the recovery of these outstanding receivables in due
course and hence the same was considered good and recoverable as at 31 March 2024. In the year ended 31 March 2025, an
arbitration award is received in the Company's favour, however it has been further challenged by the other party with a higher
jurisdiction authority. In view of the ongoing proceedings and the prevailing uncertainties surrounding the enforceability and
timely realization of the aforesaid dues and having regard to the substance of discussions with the Municipal Corporation, the
management has, on grounds of prudence, deemed it appropriate to recognise a loss allowance for the outstanding amount.
38 As of 31 March 2025, other financial assets (current) and trade receivables (current) includes amount of H 1,505.96 lakhs (31
March 2024: H 3,505.96 lakhs) and H 2,266.00 lakhs (31 March 2024: H 2,266.00 lakhs), respectively, receivable from Mangalore
Municipal Corporation towards reimbursement of minimum wages and regular business activities. Although this amount has
been overdue for a considerable period, the overall outstanding balance has reduced by H 2,000.00 lakhs in the year ended
31 March 2025, indicating that the Municipal Corporation has been making steady repayments. The Company has received a
balance confirmation as of 31 March 2025, along with communication from the Municipal Corporation confirming that approval
for reimbursement has been obtained from the State Government and that arrangements are underway to settle the remaining
dues. In view of these developments and ongoing discussions with the Municipal Corporation, management is confident that
the outstanding balance will be realized in due course. Accordingly, the receivables, as aforementioned, are considered good
and recoverable as at the reporting date.
39 As at 31 March 2025, trade receivables (current) include an amount of H 1,500.00 lakhs (31 March 2024: H 1,500.00 lakhs) due
from Bhiwandi Municipal Corporation. This amount has been outstanding for a significant period and pertains to contractual
dues that were thoroughly reviewed and approved by the standing committee of the Bhiwandi Municipal Corporation,
following which a conciliation agreement was executed. Subsequently, the Bhiwandi Municipal Corporation contested the
standing committee’s decision before the Hon’ble High Court. The High Court ruled in favor of the Company, but the Bhiwandi
Municipal Corporation has since appealed the decision to the Hon’ble Supreme Court, where the matter is presently under
consideration. Based on the contractual tenability of the claim and a legal opinion obtained by the Company, management
remains confident in the ultimate recovery of these receivables. Accordingly, the amount is considered good and recoverable
as at the reporting date.
40 Corporate Social Responsibility (CSR)
As per section 135 of the Act, and rules therein, the Company is required to spend at least 2% of its average net profits for three
immediately preceding financial years towards CSR activities. The Company has CSR committee as per the Act. The funds are
utilised on the activities which are specified in Schedule VII of the Act. Details of CSR expenditure are as follows:
The Company's spend towards CSR does not involve any long term projects and accordingly, disclosure requirements relating to
ongoing projects is not applicable as at reporting dates. Also, there are no related party transactions in CSR. Further, there are no
CSR transactions with the related parties.
41 Disclosure under section 186(4) of the Act
The provisions of section 186 of the Act is not applicable to the Company as its business falls under infrastructural projects/
infrastructural facilities (urban development including solid waste management systems) as defined under Schedule VI to the Act.
Reason for variance: Trade receivables are net of deductions and loss allowances under Ind AS.
44 Additional regulatory information required by Division II of Schedule III to the Act
a) Details of benami property
The Company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules
made thereunder as at 31 March 2025 and 31 March 2024. Further, no proceedings have been initiated or pending against the
Company for holding any benami property under the said act and rules mentioned above for the years ended 31 March 2025
and 31 March 2024.
b) Wilful defaulter
The Company has not been declared wilful defaulter by any bank or financial institution or any other lender for the years ended
31 March 2025 and 31 March 2024.
c) Relationship with struck off companies
There is no transaction and year-end balance as at 31 March 2025 and 31 March 2024 with struck off companies.
d) Compliance with number of layers of companies
The Company has complied with the number of layers prescribed under section 2(87) of the Act for the years ended 31 March
2025 and 31 March 2024.
e) Compliance with approved scheme of arrangements
On 27 March 2025, the Board of Directors approved the scheme of merger by absorption of AG Enviro Infra Projects Private
Limited (wholly owned subsidiary) with the Company under the provision of sections 230 to 232 and other applicable provisions
of the Act. The said scheme of merger is presently subject to the requisite statutory and regulatory approvals. Accordingly, no
adjustments are made in the books of account.
The merger will ensure simplification of management structure, better administration and reduction/rationalisation of administrative
and operational costs over a period of time and the elimination of duplication and multiplicity of compliance requirements.f)
Utilisation of borrowed funds and share premium (for the years ended 31 March 2025 and 31 March 2024)
The Company has not received any fund from any person or entity, including foreign entity ('Funding Party') with the
understanding (whether recorded in writing or otherwise) that the Company shall:
44 Additional regulatory information required by Division II of Schedule III to the Act (Contd..)
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
The Company has not advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) to any other person or entity, including foreign entity ('Intermediaries') with the understanding (whether recorded
in writing or otherwise) 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, except for the following:
44 Additional regulatory information required by Division II of Schedule III to the Act (Contd..)
g) Undisclosed income
No income has been surrendered or disclosed as income during the current and previous year.
h) Details of crypto currency or virtual currency
The Company has not traded or invested in crypto currency or virtual currency during the current and previous year.
i) Registration of charges or satisfaction with Registrar of Companies ('ROC')
There are no charges which are yet to be registered with the ROC beyond the statutory period as at 31 March 2025
and 31 March 2024.
j) Revaluation
The Company has not revalued its PPE, ROU assets and intangible assets during the current and previous year.
k) Loans or advances to specified persons
Other than the loans disclosed in note 5, the Company has not granted any loan or advance in the nature of loan, during the
current and previous year, to promoters, directors, KMPs or other related parties, either severally or jointly with any other
person, that is repayable on demand or without specifying any terms or period of repayment. Also, other than the loans
disclosed in note 5, no such loan or advance in nature of loan is outstanding as at 31 March 2025 and 31 March 2024.
45 Subsequent events
There are no subsequent events which warrant adjustment or disclosure in the standalone financial statements.
46 Authorisation of standalone financial statements
The standalone financial results have been reviewed and recommended by the Audit Committee and were thereafter approved by
the Board of Directors of the Company, at their respective meetings held on 29 May 2025.
Previous year figures have been regrouped, reclassified and rearranged wherever necessary, to conform to this year’s presentation,
and these are not material to the standalone financial statements.
These are the notes to standalone financial statements referred to in our report of even date
For Walker Chandiok & Co LLP For and on behalf of the Board of Directors
Chartered Accountants
Firm Registration No. 001076N/N500013
Jose Jacob Kallarakal Shiju Jacob Kallarakal
Chairman & Managing Director Director
DIN:00549994 DIN:00122525
Vijay D. Jain Subramanian N G Harshada Rane
Partner Group CFO Company Secretary & Compliance Officer
Membership No.: 117961 Membership No.: A 34268
Place: Mumbai Place : Mumbai
Date : 29 May 2025 Date : 29 May 2025
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