H) Provisions, Contingent Liabilities and Contingent Assets
Provisions
A provision is recognized when the Company has a present obligation (legal or constructive) as a result
of past events and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, in respect of which a reliable estimate can be made of the amount of
obligation. Provisions (excluding gratuity and compensated absences) are determined based on
managements estimate required to settle the obligation at the Balance Sheet date. In case the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks
specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognized as a finance cost. These are reviewed at each Balance Sheet date and adjusted to
reflect the current management estimates.
Contingent liabilities
A disclosure for a contingent liability is made when there is a possible obligation or a present obligation
that may, but probably will not, require an outflow of resources. Where there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of resources is remote, no provision
or disclosure is made.
Contingent assets
Contingent assets are not recognized in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and
related income are recognized in the period in which the change occurs.
I) Revenue recognition
Revenue is recognized, when the company satisfies a performance obligation by transferring a promised
good or service to its customers. The company considers the terms of the contract and its customary
business practices to determine the transaction price. Performance obligations are satisfied at the point
of time when the customer obtains controls of the asset.
Revenue is measured based on transaction price, which is the fair value of the consideration received
or receivable, stated net of discounts, returns and value added tax. Transaction price is recognized
based on the price specified in the contract, net of the estimated sales incentives/ discounts. Accumulated
experience is used to estimate and provide for the discounts/ right of return, using the expected value
method.
J) Borrowing Costs
Borrowing costs consist of interest and other costs that the Company incurs in connection with the
borrowing of funds. Also, the EIR amortization is included in finance costs.
K) Tax Expenses
Income Tax
Current income tax is recognized based on the estimated tax liability computed after taking credit for
allowances and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets
and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.
Deferred Tax
Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and liabilities
are recognized for all deductible temporary differences between the financial statements carrying amount
of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities are
measured using the enacted tax rates or tax rates that are substantively enacted at the Balance Sheet
date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period
that includes the enactment date. Deferred tax assets are only recognized to the extent that it is probable
that future taxable profits will be available against which the temporary differences can be utilized.
Such assets are reviewed at each Balance Sheet date to reassess realization. Deferred tax assets and
liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.
L) Earnings Per Share
The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic
earnings per share are computed by dividing the net profit after tax by the weighted average number of
equity shares outstanding during the period. Diluted earnings per share is computed by dividing the
profit after tax by the weighted average number of equity shares considered for deriving basic earnings
per share and also the weighted average number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares.
M) Recent Accounting Pronouncements.
Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards.
There is no such notification which would have been applicable from April 1, 2020.
N) Employee Benefits
The present value of the defined benefit obligations depends on a number of factors that are determined
on an actuarial basis using various assumptions. The assumptions used in determining the net cost/
(income) includes the discount rate, wage escalation and employee attrition. Any changes in these
assumptions will impact the carrying amount of obligations. The discount rate is based on the prevailing
market yields of Indian Government securities as at the Balance Sheet date for the estimated term of
the obligations.
O) Trade Receivables
The credit worthiness of Trade Receivables and the credit terms set are determined on a case to case
basis and the Management has factored in the uncertainties arising out of COVID-19, as applicable.
Based on other internal and external sources of information as determined by the Management, the
Company expects to fully recover the carrying amount of Trade Receivables.
The fair values of Trade Receivables are not considered to be significantly different from their carrying
values, given their generally short period to maturity, with impairment reviews considered on an
individual basis rather than when these become overdue.
The accompanying notes are an integral part of these financial statements
As per our Report of even date attached
for MHA & Associates LLP for and on behalf of Board of Directors of
Chartered Accountants Bhudevi Infra projects limited
ICAI Firm Registration No.:S200133 CIN:L45100TS1992PLC175723
Sd/- Sd/- Sd/- Sd/-
Raviteja Parinam Rohan Rajendrakumar Bhatt Bhasker K Bhatt Anand Joshi
Partner Chief Financial Officer Chairman & Company Secretory
M. No.: 230267 PAN:AJBPB5787F Managing director M.No: A73084
DIN: 09463033
Place: Hyderabad Place: Hyderabad Place: Hyderabad
Date: 30 May 2024 Date: 30 May 2024 Place: Hyderabad Date: 30 May 2024
Date: 30 May 2024
d The Company was incorporated on 13th January 1992 and from then onwards, the Company has not
allotted any shares as fully paid by way of bonus shares, pursuant to a contract without payment being
received in cash.
e The Company has not bought back any shares during the period of five years immediately preceding
the balance sheet date.
f The company has not issued any Sweat Equity Shares during the year ended 31 March 2024
g The Company has not issued any Preference shares/Debentures during the year ended 31 March 2024
h The Company has not provided any Stock Option Scheme during the year ended 31 March 2024
B. Fair value hierarchy
This section explains the judgments and estimates made in determining the fair values of the financial
instruments that are: (a) recognised and measured at fair value and (b) measured at amortised cost and
for which fair values are disclosed in the financial statements. To provide an indication about the
reliability of the inputs used in determining fair value, the Company has classified its financial
instruments into three levels prescribed under the Indian Accounting Standard 113. An explanation of
each level follows underneath the table.
Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices
Level 2: The fair value of financial instruments that are not traded in an active market (for example,
traded bonds, over-the counter derivatives) 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.
Level 3: If one or more of the significant inputs is not based on observable market data, the instrument
is included in level 3.
There are no transfers between level 1 and level 2 during the year.
Valuation process
The finance department of the Company performs the valuation of financial assets and liabilities
required for financial reporting purposes, including level 3 fair values. Discussions of valuation processes
and results are held between the director and the finance team at least once every quarter.
The carrying amounts of cash and cash equivalents, trade payables and other payable are considered
to be the same as their fair values due to their short-term nature.
II. Financial risk management
Risk management framework
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 are responsible for monitoring the
Company’s risk management policies. The Company’s risk management policies are established to
identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to
monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly
to reflect changes in market conditions and the Company’s activities. The Company, through its training
and management standards and procedures, aims to maintain a disciplined and constructive control
environment in which all employees understand their roles and obligations.
The Company has exposure to the following risks arising from financial instruments:
a) Credit risk ;
b) Liquidity risk ; and
c) Market risk
i. 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 resulting in a financial loss to the Company. Credit
risk encompasses both the direct risk of default and the risk of deterioration of credit worthiness as
well as concentration risks. Credit risk arises principally from trade receivables, advances, security
deposits, cash and cash equivalents and deposits with banks.
Cash and cash equivalents and deposits with banks
Cash and cash equivalents of the Company are held with banks which have high credit rating. The
Company considers that its cash and cash equivalents have low credit risk based on the external credit
ratings of the counterparties.
ii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s
approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation.
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
the cash flows generated from operations to meet obligations when due and to close out market positions.
Due to the dynamic nature of the underlying businesses, the Company’s treasury maintains flexibility
in funding by maintaining availability under committed credit lines.
Management monitors rolling forecasts of the Company’s liquidity position comprising cash and cash
equivalents on the basis of expected cash flows. This is generally carried out in accordance with
practice and limits set by the Company. In addition, the Company’s liquidity management policy involves
projecting cash flows in major currencies and considering the level of liquid assets necessary to meet
these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements
and maintaining debt financing plans. As at 31 March 2024, the Company has a net current assets of
INR (74.49) Lakhs (31 March 2023: INR (234.54) Lakhs)
iii. Market risk
Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates
- will affect the Company’s Revenue from operations or the value of its holdings of financial instruments.
The objective of market risk management is to manage and control market risk exposures within
acceptable parameters, while optimising the return.
Currency risk
The Company is not exposed to foreign currency risk as there are no significant foreign currency
receivable or payable as at 31 March 24 as well as 31 March 23.
29. Capital management
The Company aims to maintain a strong capital base so as to maintain the confidence of all stakeholders
30 Revenue from contract with customers
The Company constructs infrastructure projects on behalf of clients. Delivering the project as per the
contractual terms is the only performance obligation that has been identified. Under the terms of the
contracts, the Company will perform its obligations on time to time as per the timing schedule indicated
in the contract with the asset having no alternative use to the entity and the Company having an
enforceable right to receive payment for the work done. Hence, Revenue is therefore recognised over
time on a cost to cost method, i.e. based on the proportion of contract costs incurred for the work
performed to date relative to the estimated total contract costs. The management consider that this
input method is an appropriate measure of the progress towards complete satisfaction of these
performance obligations under Ind AS 115.
(b) Reconciliation of revenue with contract price
There is no difference in the contract price negotiated and the revenue recognised in the statement of
profit and loss for the current year. There is no significant revenue recognised in the current year from
performance obligations satisfied in previous periods.
31 Segment Reporting:
a) Business segment: The Group has considered business segment as primary segment for disclosure.
The Group’s operations predominantly consist of construction / project activities, which in the
context of Ind AS 108 “Operating Segments” is considered the only business segment.
Reason for change more than 25%:
Due to increase in revenue as a result of recognising it from the construction projects, which in turn
increased the net profit of the company. Repayment of loans taken and increase in inventory also
effected the change in the return on capital employed
Note: The Company does not have Trade receivables ,credit sales, credit purchases. Therefore Inventory
turnover ratio, Trade receivable turnover ratio is not applicable and accordingly not presented.
34 The Company does not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.
35 The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
36 To the best of our knowledge, the Company does not have any transactions with companies struck off.
37 The Company has not traded or invested in Crypto currency or Virtual Currency during the financial
year.
38 The Company had 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.
39 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) orb) provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.
40 The Company does not have any such transaction which is not recorded in the books of accounts that
has been surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act,1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
41 The Company does not have borrowings from banks and financial institutions on the basis of security
of current assets. Hence, no quarterly returns or statements of current assets are being filed by the
Company with banks and financial institutions
for MHA & Associates LLP for and on behalf of Board of Directors of
Chartered Accountants Bhudevi Infra projects limited
ICAI Firm Registration No.:S200133 CIN:L45100TS1992PLC175723
Sd/- Sd/- Sd/- Sd/-
Raviteja Parinam Rohan Rajendrakumar Bhatt Bhasker K Bhatt Anand Joshi
Partner Chief Financial Officer Chairman & Company Secretory
M. No.: 230267 PAN:AJBPB5787F Managing director M.No: A73084
DIN: 09463033
Place: Hyderabad Place: Hyderabad Place: Hyderabad
Date: 30 May 2024 Date: 30 May 2024 Place: Hyderabad Date: 30 May 2024
Date: 30 May 2024
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