Right of use assets and Lease Liabilities

The Company has lease contracts for office and factory premises with no restrictions and are renewable at the option of the parties mutually agreed from time to time. Leases of building generally have lease terms between 4 and 5 years. The escalation rate is 5% per annum as per the terms of the lease agreement.The Company also has certain lease spaces including guest houses with lease term of 12 months or less and with low value. The Company applies the 'short-term lease' and lease of 'low-value assets' recognition exemptions for these leases.

^Unbilled includes amounts to the tune of Rs:- 75.79 lacs form the Indian Railways, which is in unbilled for more than an year. However, management is confident of collect in the same as the customer is Ministry of Railways, GOI and the delay is due to procedural issue.Managment is of the view that there is no uncertainty as to measurement or collectability of consideration, as the Company has completed it's performance obligations.

^Unbilled also includes amounts to the tune of Rs:-127.31 lacs form a customer, which is in unbilled for more than an year. The work is in the nature of sub contact, and the Company has completed it's performance obligations. Since, the main contractor has yet to complete their billing , this amount is held under un-billed. The management is confident of collecting the same, the delay is only a procedural issue.Managment is of the view that there is no uncertainty as to measurement or collectability of consideration.

1) Secured Loans

a. Tranche I of ECB loan is repayable in 5 years and carrying interest rate of 10.40% pa . Tranche II of ECB loan is repayable in 4 years and carrying interest rate of 9.50% pa. ECB loan is secured by (1) Hypothecation (Exclusive first charge) of Plant & Equipment at each of the 4 manufacturing plants owned or leased by the Company, (2) All receivables of Andhra Pradesh FSM Package and the Telangana FSM Package and (3) Personal Guarantees from Mrs. Namita Sanjay Banka, Managing director & Mr. Sanjay Banka, Chairman and whole time director.

b. Term Loan from bank is repayable in 48 monthly instalments ending on 10 August 2027 and carrying interest rate @ 3 M T Bill Interest Margin (i.e.9.50% pa). The loan is secured by way of exclusive charge on movable fixed assets (Ibrahimpatnam) (funded out of the term loan), exclusive charge on office building of the company located at Lakdi-ka-pool, exclusive charge on the residential property of Mrs. Namita Banka, located at Lakdi-ka-pool and personal guarantees of Mr. Sanjay Banka, Executive Charman, Mrs. Namita Banka, Managing Director, Mr. Vishal Murarka, CEO and Executive Director and Mr. Akhilesh Tripathi Director.

c. Cash Credit facility of Rs.300 lacs from Bank is for one year and repayable on demand and carrying interest rate of 9.80% pa. The loan is secured by hypothecation of Stock & Book debts (1st paripassu charge), exclusive charge on Industrial Land of the company located Aler and personal guarantees of Mr. Sanjay Banka, Executive Charman, Mrs. Namita Banka, Managing Director, Mr. Vishal Murarka, CEO and Executive Director and Mr. Akhilesh Tripathi Director.

d. Cash Credit facility of Rs.400 lacs is for one year and repayable on demand and carrying interest rate of 11.25% pa. The facility is secured by hypothecation of Stock & Book debts (1 st paripassu charge), pari passu first charge on movable fixed assets (excluding those funded by term loan) exclusive charge on land & buildings situated in plot No.16 & 17 MSME, Ibrahimpatnam, exclusive charge on office building of the company located at Lakdi-ka-pool, exclusive charge on the residential property of Mrs. Namita Banka, located at Lakdi-ka-pool and personal guarantees of Mr. Sanjay Banka, Executive Charman, Mrs. Namita Banka, Managing Director, Mr. Vishal Murarka, CEO and Executive Director, Mr. Akhilesh Tripathi Director.

e. Cash Credit facility of Rs.450 lacs is for one year and repayable on demand and carrying interest rate of 13.40% pa (4.25% above EBLR). The facility is covered under CGTMSE and secured by hypothecation of Stock & Book debts pari passu charge on hypothecation of Stock & Book debts to be shared with the other bankers (excluding those funded by term loan). Personal guarantees of Mr. Sanjay Banka, Executive Charman, Mrs. Namita Banka, Managing Director, Mr. Vishal Murarka, CEO and Executive Director, Mr. Akhilesh Tripathi Director

f. Unlisted, Unrated, Secured, Redeemable Non-Convertible Debentures (NCDs) issues on a private placement basis to the tune of Rs.430 lacs is repayable in 3 years and carrying interest rate of 4.20 % pa over the India 10-Year Bond Yield.Loan principal will be repaid in three instalments at the end of 30 months (12.5%), 33 months (12.5%) and 36 months (75%). Secured with Hypothecation of plant and machinery of the STP plant at MyHome Vihanga, Hyderabad, Present and future receivables pertaining to the STP plant at MyHome Vihanga, Hyderabad, and Present and future current assets pertaining to STP business. Personal guarantees from Mr. Sanjay Banka, Ms. Namita Banka and Mr. Vishal Murarka for all obligations under the facility.

From Banks

k Vehicle/Equipment loans from Bank is carrying an interest rate of 9.75% pa

36. Employee Benefits

a. Defined contribution plan

Eligible employees of the Company receive benefits from a provident fund, which is a defined contribution plan. The Company has no further obligations under the plan beyond its monthly contributions. The Company contributed Rs.1,87,72,775/- (Previous year Rs.1,66,13,439/-) towards provident fund plan during the year ended 31 March 2024.

b. Defined Benefit Plan Gratuity Plan

The Company provides for gratuity, a defined benefit plan ("Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum gratuity payment to eligible employees of the company on superannuation, death and permanent disablement . The amount of the payment is based on the respective employee's last drawn salary and the years of employment with the Company.

42. Segment Reporting

As per the assessment undertaken by CODM, the allocation of resources and assessment of the financial performance is undertaken at the company level. The Company has only one reportable business segment, waste water treatment (Bio toilets, setting up Fecal Sludge Treatment Plants (FSTPs), waste water treatment plants, Effluent treatment plants and their operation and maintenance). Accordingly, the amounts appearing in the financial statements relate to the Company's single business segment.

44. Financial Risk Management

In course of its business, the company is exposed to certain financial risk such as market risk , credit risk and liquidity risk that could have significant influence on the company's business and operational/financial performance. The Board of directors and the Audit Commitee reviews and approves risk management framework and policies for managing these risks and monitor suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

a. Credit risk

Credit Risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The Company has a prudent and conservative process for managing its credit risk raising in the course of its business activities. Credit risk is managed through continuously monitoring the creditworthiness of customers and obtaining sufficient collateral, where appropriate, a means of mitigating the risk of financial loss from defaults.

The company makes an allowance for doubtful debts/advances using expected credit loss model.

Liquidity Risk refers to 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, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.

The company has obtained fund and non fund based working capital loans from bank .The borrowed funds are generally applied for company's own operational activities.The company manages the liquidity and fund requirements for its day to day operations like working capital, suppliers /buyers credit.

c. Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices such as commodity prices, foreign currency exchange rates and other market changes.

The Board of Directors are reponsible for setting up of policies and procedures to manage market risks.

d. Exchange rate risk

The company has no foreign operations and aslo all the foreign payments are made in advance. Hence the company is not exposed to exchange rate risk.

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. The company's exposure to the risk of changes in the market interest rate relates primarily to the company's long term debt obligations with floating interest rates. The company's interest rate exposure is mainly related to variable interest rates debt obligations.

The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms (e.g. fixed rate loans, floating rate loans, rupee term loans,etc.).

Cash flow sensitivity analysis for variable -rate instruments

The risk estimates provided assume a change of 25 basis points interest rate for the interest rate benchmark as applicable to the borrowing summarised above.This caluclation assumes that the change occurs at the balance sheet date and has been caluclated on risk exposures outstanding as at that date assuming that all other variables ,in particular foreign currency exchange rates,remain constant.The period end balances are not necessarily representative of the average debt outstanding during the period.

The management assessed that cash and cash equivalents, trade receivables, trade payables and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities is 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 financial instruments are categorized into three levels based on the inputs used to arrive at fair value measurements as described below:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable Inputs for the asset or liability.

47. Other Statutory Information

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

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

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

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year

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

a) directly or indirectly lend or invest in other persons or entities identifi ed in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

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

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

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

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

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

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

(ix) 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

(x) No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013, during the year

(xi) The Company does not have any borrowings from banks or financial institutions against security of its current assets.

48. The code of Social Security, 2020 ('Code') relating to employee benefits during employment and post-employment received Presidential assent in September 2020 and its effective date is yet to be notified. The Company will assess and record the impact of Code, once its effective.

49. Previous year figures have been regrouped/reclassified wherever necessary to conform to the current year's classification.