Hire purchase loans are secured by hypothecation of respective vehicle financed. The loan carnes interest @ 15.25% p a. The loan is repayble in 60 monthly instalments starting from September 10. 2022 to August 10. 2027
Facility from Bank of Maharashtra { BOM )
Cash Credit from BOM amounting to Rs. 557.78 Lakhs (PY Rs. Nil) carnes interest rate @ 12.30% p.a. is secured by 1st Hypothecation charge on Stocks. Receivable & all current assets and collaterally secured by Equitable Mortgage of Commercial Property of Directors and others. It is futher secured by Personal Guarantee of Directors of the Company and other individual
Note Ý The Stock statement were submited to the bank from November 2024 onwards . so requisite details for the quarter 1 and Quarter 2 is not provided above.
Note: Reason for difference in value reported to bank and that mentioned in books is as follows:
The reason for differences in inventories is because the company has recongnised the unbilled revenue in trade receivable as well as inventory by an amount of Rs 353 44 lakhs secondly the inventory is shown in stock statement at full value whereas in the financial statement it is shown at realisable value.
The reason for difference in Advance to suppliers is because the same was not furnished in the stock statement
Note: This information, as required to be disclosed under the MSMED Act. has been determined to the extent such parties have been identified on the basis of information available with the Company.
Interest paid or payable by the Company on the aforesaid principal amount has been waived by the concerned suppliers.
b.Terms/rights attached to equity shares:
i) The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity share is entitled to one vote per share n) The Company declare and pays dividend in Indian Rupees. Each equity shareholder has the sane right of dividend.
iii) In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
iv) The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
Description of nature and purpose of reserve Securities Premium Reserve
Secunties Premium Reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act. Retained Earnings
Retained Earnings represents surplus/accumulated earnings of the Company and are available for distribution to shareholders
29 Segment reporting as required under Indian Accounting Standard 108. “Operating Segments”
Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM”) of the Company The CODM, who is responsible for allocating resources and assessing performance of the operating segments has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i e “Construction Contracts'. hence does not have any reportable Segments as per Ind AS 108 "Operating Segments”.
Information about major customers - There are 2 customers from whom the revenues is generated by 10 % or mere of Company's Total Revenue during the year by an amounting to Rs 490.93/- Lakhs ( PY 173.89 lakhs).
30 Liabilities in respect of gratuity is accounted for on cash basis which is not in conformity with Indian Accounting Standard (lndAS)19 on Employee Benefits which requires that Gratuity Liabilities be accounted for on accrual basis
32 Loans and advances in the nature of loans given to subsidiaries and associates as required to be disclosed in the annual accounts of the Company pursuant to Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015 :
a) Details of loans to subsidiaries / step down subsidiaries - For Details refer the note no 10 of standalone financial statements for the year ended 31 March 2024
33 Disclosure with regards to section 186 (4) of the Companies Act. 2013
34 Expenditure on Corporate Social Responsibility (CSR) activities : The Provisions for Corporate Social Responsibility as per Section 135 of Companies act 2013 are not applicable to the company
35 INDAS115 - Revenue from Contracts with Customers
Ind AS 115 Revenue from contracts with customer has been notified by Mnistry of Corporate Affairs (MCA] on 28 March 2018 and is effective from accounting period beginning on or after 1 April 2018, replace existing revenue recognition standard. The adoption of standard did not have any impact on the standalone financials results of the Company.
b) Disaggregation of revenue from contracts with customers
The Company believes that the information provided under note 19- Revenue from operations and note 28- Segment reporting best depicts how the nature, amount, tinning and uncertainty of revenue and cash flows are affected by industry, market and other economic factors.
(d) Transaction price allocated to remaining performance obligation
The Company has recognised revenue as the amount that the entity has a right to invoice, thus there are no unsatisfied performance obligation.
36 Fair Value Measurement
A. Accounting classification and fair values
The fair value of the finarcial assets are included at amounts at wdiich the instruments could be exchanged in a current transacton between willing parties other than in a forced or Iquidation sale.
The following methods and assumptions were used to estimate the fair value:
(a) Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, approximate their carrying amounts largely due to the short-term maturities of these instruments
(b) Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
Assets and Liabilities that are disclosed at Amortised Cost for which Fair values are disclosed are classified as Level 3.
II one or more of the significant inputs is not based on observable market data, the respective assets and liabilities are considered under Level 3.
B. Fair Value Hierarchy.
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: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or ndirecty Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
37 Financial risk management objectives and policies Risk management framework
A wide range of risks may affect the Company’s business and operational / financial performance. The risks that could have significant influence on the Company are market risk, credit risk and liquidity risk. The Company’s Board of Directors reviews and sets out policies for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the company's operational and financial performance.
i. Market risk
Market Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.
ii. Currency risk
The Company is not much exposed to currency risk.
iii. 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, and arises principally from the Company’s trade and other receivables, cash and cash equivalents and other bank balances. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. The maximum exposure to credit risk in case of all the financial instruments covered below is restricted to their respective carrying amount.
(a) Trade and other receivables from customers
Credit risk in respect of trade and other receivables is managed through credit approvals., establishing credit limits and monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.
The Company measures the expected credit loss of trade receivables based on historical trend., industry practices and the business environment in which the entity operates. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as credit ratings from credit rating agencies, financial condition, ageing of accounts receivable and the Company's historical experience for customers.
i) Actual or expected significant adverse changes in business
ii) Actual or expected significant changes in the operating results of the counterparty
iii) Financial or economic conditions that are expected to cause a significant change to the counterparties ability to meet its obligation
iv) Significant increase in credit risk on other financial instruments of the same counterparty
v) Significant changes in the value of the collateral supporting the obligation or in the quality of third party guarantees or credit enhancements
Financial assets are written off when there is a no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. When loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. When recoverable are made, these are recognised as income in the statement of profit and loss.
The Company measures the expected credit loss of trade and other receivables based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
(b) Cash and cash equivalents and Other
The Company held cash and cash equivalents and other bank balances of Rs.3.72 Lakhs at 31st March 2024 (31st March 2023: Rs.1.81 lakhs). The cash and cash equivalents are held with bank with good credit ratings and financial institution counterparties with good market standing.
iv. Interest rate 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 total debt obligations with floating interest rates.
vi. 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.
Liquidity risk is managed by Company through effective fund management of the Company's short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and other borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted.
39 Capital management
For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The Company strives to safeguard its ability to continue as a going concern so that they can maximise returns for the shareholders and berefits for other stake holders. The aim to maintain an optimal capital structure and minimise cost of capital.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company nay return capital to shareholders, issue new shares or adjust the dividend payment to shareholders (if permitted). Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total debt divided by total capital plus total debts.
40 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE COMPANIES ACT, 2013
IThe Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
2. The Company has not been declared wilful defaulter by any bank or financial institution or other lender or government or any government authority.
3. The Company has complied with the requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
4. Utilisation of borrowed funds and share premium
I. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), inducing 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.
II. The Company has not received any fund from any person(s) or antitypes), 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) or
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.
5. There is no income surrendered or disclosed as income during the year in tax assessments under the Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account
6. The Company has not traded or invested in crypto currency or virtual currency during the year.
7. The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.
8. The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.
9. The Company has not entered into any transaction with the struck off companies under section 248 companies Act, 2013.
41 Prior year comparatives
Previous year's figures have been regrouped or reclassified, to conform to the current year's presentation wherever considered necessary.
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