d) Buyback of shares and shares allotted by way of
The Company has not allotted any fully paid-up equity shares by way of bonus shares nor has it bought back any class of equity shares during the period of five years immediately preceding the balance sheet date nor has it issued shares for consideration otf =r than cash.
e) Terms/Rights attached to equity shares
i) The Company has only one class of share capital,i.e.equity shares having face value of Re.1/- per share. Each holder of equity share is entiltled to o e vote per share, The equity shareholders are entitled to receive dividends as and when declared.
ii) In the event of liquidation of the Company,the holders of equity shares will be entiteld to receive remaining assets of the Company,after distributio of all prefrencial amounts.The distribution will be in proportion to the no.of equity shares held by the shareholder.
Fair value hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices include 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).
(*) The fair value of these investment in equity shar s are calculated based on discounted cash flow approach for un-quoted market instruments which are classified as level III fair value hierarchy.
(A) The carrying value of these accounts are considered to be the same as their fair value, due to their short term nature. Accordingly, these are classified as level 3 of fair value hierarchy.
33 Financial risk management
The Company has exposure to following risks arising from financial instruments- credit risk
- market risk
- liquidity risk
(a) 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 Company's risk management policies are established to idenitfy and analyse the risks faced by the Comp ny, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regulalrly to reflect changes in market conditions and the Company's activities.
(b) Credit risk
Credit risk is the risk that counter party will not meet its obligations under a financ al instruments or customer contract leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) from its financing activitie including deposits with banks and investment in quoted and un-quoted equity instruments.
i) Trade and other receivables:
Credit risk is managed by each business unit subject to the Company’s establis ;d policy, procedures and control relating to customer cred! risk management. Outstanding customer receivables are regularly monitored.
The impairment analysis is performed at each reporting date on an individual basi for major customers. In addition, a large number of minor receivables are grouped into homogeneous Expected credit loss (ECL) assessment for corporate customers as at 31 M irch 2023 and 31 March 2022
The Company allocates each exposure to a credit risk grade based on a variety f data that is determined to be predictive of the risk of loss (including but not limited to past payment history, security by way of deposits, external ratings, audited financial statemen , management accounts and cash flow projections and available press information about customers)
ii) Other financial assets and deposits with banks:
Credit risk on cash and cash equivalent is limited as (including bank balances, fixe deposits and margin money with banks) the Company generally transacts with banks with high credit ratings assigned by international and domestic credit rating agencies.
(c) Market Risk Equity price risk
The Company is exposed to equity price risk from investments in equity securiti s measured at fair value through profit and loss. The Management monitors the proportion of equity securities in its investment portfolio based on market indices and based on comp ny performance for un-equity instruments. Material investments within the portfolio are managed on an individual basis and all buy and sell decisions are approved by the Board of Directors. Further, major investments in un-quoted equity instruments are strategic in nature and hence
Interest rate risk
Interest rate risk is the risk that the future cash flows of a financial instrumen 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 its short term borrowings in nature of working capital loans, which carry floating interest rates. Accordingly, the Company's risk of changes in interest rates relates primarily to the Company’s debt obligations with floating interest rates.
(d) Liquidity Risk
Liquidity is the risk that the Company will encounter difficulty in meeting the ob gations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company's approach to managing the 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 o the Company's reputation.
The Company’s principal sources of liquidity are cash and cash equivalents a the cash flow that is generated from operations. The Company believes that the cash and cash equivalents is sufficient to meet its current requirements. Accordingly no liquidity risk is perceived.
35 The company has availed the facility from M/s IL & FS Financial Services Ltd during F.Y. 2017-2018 and the same was advanced to Sikar Bikaner Highway Limited and ITNL Road Infrastructure Development Company Limited (a subsidiary of IL & FS Transportation Networks Limited) vide agreement dated 31/03/2018. In June 2018, the problems in IL & FS Group surfaced as a result Sikar Bikaner Highway Limited and ITNL Road Infrastructure Development Company Limited were unable to service its obligations. In light of the above developments the complete transaction was restructured as under:
The obligation of ITNL Road Infrastructure Development Company Limited was taken over IL & FS Transportation Networks Limited vide assignment deed dated 07/09/2018 which was further transferred to Srinagar Sonamarg Tunnelway Limited (a subsidiary of IL & FS Transportation Limited) vide assignment deed dated 22/09/2018.
The insolvency proceedings have been initiated against the IL & FS group. Pursuant to the Order passed by Hon’ble National Company Law Tribunal the IL & FS Group are under moratorium. The claim by IL & FS Financial Services Limited is being contested by the Company before Hon’ble National Company Law Tribunal.
As the claim of IL & FS Financial Services Limited and the company’s claim against Sikar Bikaner Highway Limited and Srinagar Sonamarg Tunnelway Limited are dependent upon the
36 CSR Activity
As per the Companies Act, 2013, all companies having a net woth of Rs. 500 crore or more, or a turnover of Rs. 1000 crore or more or a net profit of Rs. 5 crore or more during any financial year are required to constiture a CSR Committee of the Board of Director comprising three director. All such companies are requaired to spend at least 2% of the average net profit of their three immediately preceding financial years on CSR-related activities. Accordingly, the Company was not required to spend amount towards CSR activities.
37 Balances in the accounts of debtors, creditors and con-tracts and contractors, certain Bank Accounts are taken subject to confirmation and reconciliation and only upon such confirmation and reconciliation, the entries for discounts, claims and writing off sundry balances etc. will be recorded in the books.
38 In the absence of detailed information from Small Scale and Ancillary Undertaking, included under the head Sundry Creditors dues there from are not ascertained as on the date of Balance Sheet.
39 Other Information
i) In the opinion of the management, the current assets and loans & advances are approximately of the value stated, if realised / paid in the ordinary course of business. The provisions for all known liabilities is adequte and is not in excess of amounts considered reasonably necessary.
ii) Balances grouped under non current Liabilities, Current Assets , and Non current assets in certain cases are subject to confirmation and reconcillation from respective parties, impect of the same , if any , shall be accounted as when determined.
40 Other information required under part I and Part II of schedule III of Companies Act 2013, are either NIL or NOT Applicable
41 The previous year figures have been regrouped, rearranged wherever necessary.
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