X PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions are recognised only when:
(i) the Company has a present obligation (legal or constructive) as a result of a past event: and
(ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation: and
(iii) a reliable estimate can be made of the amount of the obligation.
Provision is measured using the cnsh flows estimated to settle the present obligation and when the efTect of time value of money is material, the carrying amount of the provision
is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the
reimbursement will be received. _ "N.
Contingent liability is disclosed in case of:
(i) a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and
(ii) a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where on inflow of economic benefits is probable.
Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation
under the contract is recognised and measured as a provision.
Y BORROWING COST
Borrowings cost are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent they are regarded as an adjustment to interest
costs) incurred in connection with the borrowing of funds. Borrowing cost directly attributable to the acquisition or construction of qualifying /eligible assets, intended for
commercial production are capitalized as part of the cost of such assets. All other borrowing costs are recognized as an expense in the year in which they are incurred.
Z LEASES
The Company does not have any transaction related Ind AS 116 (Leases) during the year and in previous year. Accordingly, Ind AS 116 is not applicable to company.
AA COMMITMENTS
Commitments are future liabilities for contractual expenditure, classified and disclosed as follow’s:
(i) estimated amount of contracts remaining to be executed on capital account and not provided for;
(ii) uncalled liability on shares and other investments partly paid:
(iii) funding related commitment to subsidiary, associate and joint venture companies; and
(iv) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.
Other commitments related to sales/procurements made in the normal course of business are not disclosed to avoid excessive details.
AB STATEMENT OF CASHFLOWS
Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect
method, adjusting the profit before tax excluding exceptional items for the effects of:
(i) changes during the period in inventories and operating receivables and payables;
(ii) non-cash items such os depreciation, provisions, unrealised foreign currency gains and losses; and
(iii) all other items except the cash flow effects from investing or financing activities.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available fou^nvntt’Tm^s at the dale of Balance
Sheet.
39 Previous year figures have been rcgroupcd/rcclassificd wherever necessary.
40 Operating Segment Information
There is no separate reportable segment as required under Indian Accounting Standard - 108 (Ind AS - 108) regarding "segment reporting".
41 DETAILS FOR GRATUITY AND EMPLOYEE BENEFIT EXPENSES
The disclosures required by Ind- AS-19 •‘Employee Benefits" arc as under:
(a) Defined Contribution Plan
(i) The contribution to provident fund is charged to accounts on accrual basis. The contribution made by lire Company during the year is Rs. 129.92 Lakhs (Previous Ycru Rs. 80.99 Laklis)
(ii) In respect of short-term employee benefits, the Company lias at present only the scheme of cumulative benefit of leave cncasluncnt payable at (lie time of retirement/ cessation and (lie same have been prov ided for on
accrual basis as per actuarial valuation.
(b) Defined Benefit Plan
(i) Liability for retiring gratuity as on March 31.2024 is Rs. 114.24 Lakhs (as on 31.03.2023 is Rs. 93.40 Laklis). The liability for Gratuity is actuarially determined and provided for in Hie books.
(ii) Details of llic Company‘s posl-rclircmcn! gratuity plans and leave cncasluncnt for its employees including whole-time directors arc given below, which is certified by the actuary and relied upon by the auditors
A) Tlic employees' Group Gratuity Scheme is managed by Kolak Life Insurance Co. Ltd. Tlic present v alue of obligation for Gratuity & other Post Employment benefit (i.c.. Leav e cncasluncnt) arc determined based on actuarial
valuation using the Projected Unit credit Method. The additional disclosure in terms of Ind AS 19 on "Employee Benefits", is as under:
46 (u) Financial Risk Management:
In the course of business, amongst olltcrs, (Ik Company is exposed lo several financial risks such as Credit Risk, Liquidity Risk, Interest Rale Risk, Exchange Risk and Commodity Price Risk. These risks may be caused by the
internal and external factors resulting into impairment of the assets of the Company causing adverse influence on the achievement of Company's strategies, operational and financial objectives, canting capacity and Hnancial
position
The Company has formulated an appropriate policy and established a risk management framework which encompass the following process.
- identify the major fiamcial risks which may cause financial losses to the company
- assess the probability of occurrence and severity of financial losses
- mitigate and control them by formulation of appropriate policies, strategics, structures, systems and procedures
- Monitor and review periodically tlic adherence, adequacy and efficacy of the financial risk management system.
Tlic Company enterprise risk maaigcmcnt system is monitored and reviewed at all levels of management and tlic Board of Directors from time to lime.
(b) Credit Risk
Credit Risk refers to tlic risks Hurl arise on default by tlic counterparty on its contractual obligation resulting into financial loss to tlic company. The company may carry litis Risk on Trude and oilier receivables, liquid assets and
some of the non-currcnl financial assets.
In ease of Trade receivables, tlic company's Clicntal arc major!) Government departments like Municipal Corporation Jalandhar. Raigarh Municipal Corporation, Municipal Corporation. Jagdalpur. Punjab Water Supply &
Sewerage Division. Ludhiana. HUDA Division. Panipat. Haryana State Industrial and Infrastructure Development Corp. Ltd.. Public Health Engineering Division. Rewari. Municipal Corporation - Jaipur Heritage. Rajasthan
Urban Drinking Water Sewerage and Infrastmctiue Corp.. Municipal Corporation Jodhpur Norlh A South. Delhi Jal Board. Nava Raipur Development Vikas Pradikharan. Madhya Pradesh Jal Nigam Mary adit, Karnataka Urban
Water Supply & Drainage Board (KUW&SDB, Jharkhand Urban Infrastmctiue Development Company Ltd., U P Jal Nigam. HSI1DC. HSVP (Haryana Shahari Vikas PradJiikaran). Urban Improvement Trust Kota. Gqjrat
Urban Development Corporation, Gujarat Water Supply & Sewerage Board, Ahmedabad Municipal Corporation, etc. All tlicsc Aulliorilics arc liighly rated. And (lie Payment is made .is per Hie Tender terms. The Company' also
works for projects wherein tlic funds arc already allocated like AMRUT, hence the Debtors realization is on time. Further, in this segment of business the Authority retain certain portion of the bills which is realized at the
completion of Projects which is again as per Hie Contract signed between (he Company and (lie Authority. Hence, based on management estimates, the company has not made any provision on expected credit loss on trade
receivables and other financial assets.
Moreover, tlic Company take-up projects for different authorities at different states, wherein the fund allocation is also different, this also mitigates tlic risk of concentration of Clients. Tie Company prior to bid any projects do a
thorough survey on fund availability, tie creditability of the Authority, funding support, etc.
The credit risk on cash & cash equivalent, investment in fixed deposits, liquid fluids and deposits arc insignificant as coiuitcrparlics arc banks.
(c) kiqu»li«.r Ki?H
Liquidity Risk arises when the company is unable to meet its short-term financial obligations as and when they fall due.
Liquidity risk is lie risk dial the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels
of liquidity lo meet its cash and collateral requirements. Tie Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adcquaic sources of financing including debt and
overdraft from banks at an optimised cost. This monitoring lakes into account the accessibility of cash and cash equivalents and additional undrawn financing facilities. As at 31 Much, 2024, tie company lias available Rs.
947.37 Laklts (31 March 2023: Rs.2777.21 Lakhs) in fonu of undrawn committed borrowing limits.
(d) interest Kijty Risk
Generally, market linked financial inslnuncnts arc subject lo interest rate risk. The company docs not have any market linked fmaieial instruments both on the asset side as well liability side. Hence there no interest rate risk
linked to market rales.
Howev er, the interest rate in respect of major portion of borrowings by tlic Company from tlic banks and others arc linked with the REPO/T-Bill specified by RBI. Any fluctuation in tlic same either on higher side or lower side
will result into financial loss or gain to the company. And while bidding the Projects the Finance Cost is kept in mind.
(c) Foreign Currency Risk
The Company have foreign currency exposure in nature of Advance TT of EURO 27667/- Ins been nude on 12-12-2023 from ICICI Bank Limited to “M/s. Invent Umwclt-Und Vcrfahicnstcchnik AG” against the supply of
“Aerialion and Mixing System" to be installed at Sewerage Treatment Plant Up gradation Project of RUDSJCO allotted to us.
Tlic approval from respective department for installation of Hie system has just received, so it will take another 2 months for delivery of Hie Products.
47 £ai}jtiil.jyti»n»|»y.nyn«;
(i) management
Tlic Company's policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustnin future development of the business. The management monitors tlic return on capital. The Group
monitors capital using a ratio of'adjusted net debt' to 'total equity*. For lliis purpose, adiustcd net debt is defined as total borrowings net of cash and cash equivalents. Equity comprises all components of equity (os shown in the
Balance Sheet). The Group always tries to minimize its adjusted net debt to equity ratio.
* Reasons is not required for Variance is less than 25%
Notes:-
(i) Total Debts include Non-current & Current borrowings
(ii) Shareholders' Equity = Equity share capital Other equity
Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation and other amortization Interest other adjustments like
' Loss/(Gain) on sale of Fixed Assets etc.
(iv) Debt service Ý Interest & Lease Payments Principal Repayments
(v) Working capital Ý Current assets - Current liabilities Vv
(vi) Capital employed = Tangible Net Worth Total Debt Deferred Tax Liability
As per our report of even date attached | For and on behalf oVsBooVd of Directors of Enviro Infra Engineers Limited
For S S Kothari Mehta & Co. LLP y^OA Sarrjay Jalfr^ " " ManishsJaln
Chartered Accountants Cliairman and Managin^T)irector
FRN: 000756N/N500441 Whole Time Director DIN: 0267^^2
\0\ JUR'. 02575734 /]
^^^^®rDEL„,V
Ý---^Deepak K. Aggorwnl \ \ J. ] Sunil Chuuhan PiyustiJain
Partner \Qj\. / Chief Financial Officer Convpimy Secretary
Membership No.: 095541 / PAN: ACPPC7246P PAN-,APEPJ2369E
Place: New Delhi Place: New Delhi Place: New Delhi
Date: 28-08-2024 Date: 28-08-2024 Date: 28-08-2024
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