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Notes to Accounts of J Kumar Infraprojects Ltd.

Mar 31, 2023

(n) Provisions, Contingent Liabilities, Contingent
Assets and Commitments:

Provisions are recognised only when the
Company has a present obligation (legal
or constructive) as a result of a past event,
it is probable that an outflow of resources
embodying economic benefits will be required
to settle the obligation and a reliable estimate
can be made of the amount of the obligation.
When the Company expects some or all of a
provision to be reimbursed, for example, under

an insurance contract, the reimbursement is
recognised as a separate asset, but only when
the reimbursement is virtually certain. The
expense relating to a provision is presented
in the Statement of Profit and Loss net of any
reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the risks
specific to the liability. When discounting is used,
the increase in the provision due to the passage
of time is recognised as a finance cost.

Contingent liability is disclosed in case of:

- a present obligation arising from past
events, when it is not probable that an
outflow of resources will be required to settle
the obligation

- a present obligation arising from past events,
when no reliable estimate is possible

- a possible obligation arising from past
events, unless the probability of outflow of
resources is remote.

Contingent asset is disclosed where an inflow of
economic benefits is probable.

Commitments include the amount of purchase
order (net of advances) issued to parties for
completion of assets.

Provisions, contingent liabilities, contingent
assets and commitments are reviewed at each
balance sheet date.

(o) Fair Value Measurement:

The Company measures financial instruments of
certain investments at fair value, at each balance
sheet date.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value
measurement is based on the presumption that
the transaction to sell the asset or transfer the
liability takes place either:

- In the principal market for the asset or
liability, or

- In the absence of a principal market, in
the most advantageous market for the
asset or liability. The principal or the most
advantageous market must be accessible by
the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,

assuming that market participants act in their
economic best interest.

A fair value measurement of a non-financial
asset takes into account a market participant''s
ability to generate economic benefits by using
the asset in its highest and best use or by selling
it to another market participant that would use
the asset in its highest and best use.

The Company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair
value, maximizing the use of relevant observable
inputs and minimizing the use of unobservable
inputs.

All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

Level 1 - Quoted (unadjusted) market prices in
active markets for identical assets or liabilities

Level 2 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is directly or indirectly
observable

Level 3 - Valuation techniques for which the
lowest level input that is significant to the fair
value measurement is unobservable

For assets and liabilities that are recognised
in the Balance Sheet on a recurring basis, the
Company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.

(p) Financial Instruments:

Financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.

(i) Financial Assets-

The classification depends on the Company''s
business model for managing the financial
assets and the contractual terms of the cash
flows.

For assets measured at fair value, gains
and losses will either be recorded in profit
or loss or other comprehensive income.
For investments in equity instruments, this
will depend on whether the Company has
made an irrevocable election at the time of
initial recognition to account for the equity
investment at fair value through OCI.

Initial Recognition and Measurement

Financial assets are recognized when the
Company becomes a party to the contractual
provisions of the instrument. Financial assets
are recognized initially at fair value plus, in
the case of financial assets not recorded at
fair value through profit or loss, transaction
costs that are attributable to the acquisition
of the financial asset. Transaction costs of
financial assets carried at fair value through
profit or loss are expensed in the Statement
of Profit and Loss.

Subsequent Measurement

After initial recognition, financial assets
(other than investments in subsidiaries and
joint ventures) are measured either at:

i) fair value (either through other
comprehensive income or through profit
or loss) or,

ii) amortized cost

Measured at Amortized Cost

Financial assets that are held within a
business model whose objective is to hold
financial assets in order to collect contractual
cash flows that are solely payments of
principal and interest, are subsequently
measured at amortized cost using the
effective interest rate (‘ElR’) method less
impairment, if any, the amortization of EIR
and loss arising from impairment, if any is
recognized in the Statement of Profit and
Loss.

Measured at Fair Value Through Other
Comprehensive Income (FVOCI)

Financial assets that are held within a
business model whose objective is achieved
by both, selling financial assets and
collecting contractual cash flows that are
solely payments of principal and interest,
are subsequently measured at fair value
through other comprehensive income. Fair
value movements are recognized in the OCI
net of taxes.

Interest income measured using the EIR
method and impairment losses, if any are
recognized in Profit and Loss.

Gains or Losses on De-recognition

in case of investment in equity instruments
classified as the FVOCI, the gains or losses on
de-recognition are re-classified to retained
earnings.

in case of investments in debt instruments
classified as the FVOCI, the gains or losses on
de-recognition are reclassified to Statement
of Profit and Loss.

Measured at Fair Value Through Profit or
Loss (FVTPL)

A financial asset not classified as either
amortized cost or FVOCI, is classified as
FVTPL. Such financial assets are measured
at fair value with all changes in fair value,
including interest income and dividend
income if any, recognized as ‘other income'' in
the Statement of Profit and Loss.

The Company measures all its investments in
equity (other than investments in subsidiaries
and joint ventures) and mutual funds at
FVTPL.

Changes in the fair value of financial assets
measured at fair value through profit or loss
are recognized in Statement of Profit and
Loss.

impairment losses (and reversal of
impairment losses) on equity investments
measured at FVTPL are recognised in
Statement of Profit and Loss.

Impairment of Financial Assets

The Company assesses on a forward
looking basis the expected credit losses
associated with its financial assets carried at
amortized cost, FVTPL and FVOCI and debt
instruments. The impairment methodology
applied depends on whether there has been
a significant increase in credit risk.

For trade receivable only, the Company
applies the simplified approach permitted
by Ind AS - 109 “Financial Instruments”,
which requires expected lifetime losses to
be recognised from initial recognition of such
receivables.

De-Recognition

A financial asset is de-recognized only when

i) The Company has transferred the rights
to receive cash flows from the financial
asset or

ii) Retains the contractual rights to receive
the cash flows of the financial asset, but

assumes a contractual obligation to pay
the cash flows to one or more recipients.

Where the entity has transferred an
asset, the Company evaluates whether it
has transferred substantially all risks and
rewards of ownership of the financial asset.
In such cases, the financial asset is de¬
recognized.

Where the entity has not transferred
substantially all risks and rewards of
ownership of the financial asset, the financial
asset is not de-recognized.

Where the entity has neither transferred
a financial asset nor retains substantially
all risks and rewards of ownership of the
financial asset, the financial asset is de¬
recognized if the Company has not retained
control of the financial asset.

Where the Company retains control of the
financial asset, the asset is continued to
be recognized to the extent of continuing
involvement in the financial asset.

(ii) Financial liabilities-

Classification as Debt or Equity

Financial liabilities and equity instruments
issued by the Company are classified
according to the substance of the
contractual arrangements entered into and
the definitions of a financial liability and an
equity instrument.

Initial Recognition and Measurement

Financial liabilities are recognized when
the Company becomes a party to the
contractual provisions of the instrument.
Financial liabilities are initially measured at
fair value.

Subsequent Measurement

Financial liabilities other than those

measured at fair value through Statement of
Profit and Loss are subsequently measured
at amortized cost using the effective interest
rate method. The Company measures all
debt instruments at amortised.

Financial liabilities carried at fair value
through profit or loss are measured at fair
value with all changes in fair value recognized
in Profit and Loss.

De-recognition

A financial liability is derecognized when
the obligation specified in the contract is
discharged, cancelled or expires.

Offsetting Financial Instruments

Financial assets and liabilities are offset and
the net amount is reported in the Balance
Sheet where there is a legally enforceable
right to offset the recognized amounts and
there is an intention to settle on a net basis
or realize the asset and settle the liability
simultaneously. The legally enforceable right
must not be contingent on future events and
must be enforceable in the normal course
of business and in the event of default,
insolvency or bankruptcy of the Company or
the counterparts.

(q) Interests in Joint Arrangements:W

Under Ind AS 111 “Joint Arrangements”,
investments in joint arrangements are classified
as either joint operations or joint ventures. The
classification depends on the contractual rights
and obligations of each investor, rather than
the legal structure of the joint arrangement. The
Company has joint operations.

Joint operations

The Company recognises its direct right to
the assets, liabilities, revenues and expenses
of joint operations and its share of any jointly
held or incurred assets, liabilities, revenues and
expenses. These have been incorporated in the
Financial Statements under the appropriate
headings.

(r) Segment Reporting:

An operating segment is a component of the
Company that engages in business activities
from which it may earn revenues and incur
expenses, whose operating results are regularly
reviewed by the company''s Chief Operating
Decision Maker (CODM) to make decisions for
which discrete financial information is available.
Based on the management approach as defined
in Ind AS 108 “Operating Segments”, the CODM
evaluates the Company''s performance and
allocates resources based on an analysis of
various performance indicators by business
segments and geographic segments.

3 SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS:

The preparation of the Company''s Financial
Statements requires management to make
judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets
and liabilities, and the accompanying disclosures, and
the disclosure of contingent liabilities. Uncertainty

about these assumptions and estimates could result
in outcomes that require a material adjustment to
the carrying amount of assets or liabilities affected
in future periods.

Judgements, Estimates and Assumptions

The key assumptions concerning the future and
other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing
a material adjustment to the carrying amounts
of assets and liabilities within the next financial
year, are described below. The Company based its
assumptions and estimates on parameters available
when the financial statements were prepared.
Existing circumstances and assumptions about
future developments, however, may change due to
market changes or circumstances arising that are
beyond the control of the Company. Such changes
are reflected in the assumptions when they occur.

(a) Impairment of Non-Financial Assets

The Company assesses at each reporting date
whether there is an indication that an asset
may be impaired. If any indication exists, or
when annual impairment testing for an asset
is required, the Company estimates the asset''s
recoverable amount.

(b) Estimation of Defined Benefit Obligations/ Plans

The cost of the defined benefit plan and other
post-employment benefits and the present
value of such obligation are determined using
actuarial valuations. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount
rate, future salary increases, mortality rates and
future pension increases. Due to the complexities
involved in the valuation and its long-term nature,
a defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions
are reviewed at each reporting date.

(c) Impairment of Financial Assets

The impairment provisions for financial assets
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgement in making these assumptions
and selecting the inputs to the impairment
calculation, based on Company''s history, existing
market conditions as well as forward looking
estimates at the end of each reporting period.


Mar 31, 2018

1 Corporate Information

These statements comprise financial statements of J Kumar Infraprojects Limited (CIN: L74210MH1999PLC122886) (‘the company’) for the year ended March 31, 2018. The company is a public company domiciled in India and is incorporated on December 2, 1999 under the provisions of the Companies Act applicable in India. Its shares are listed on two recognised stock exchanges in India. The registered office of the company is located at 16-A, Andheri Industrial Estate, Veera Desai Road, Andheri (West), Mumbai 400053.

The Company is engaged in the business of execution of contracts of various infrastructure projects including Transportation Engineering, Irrigation Projects, Civil Construction and Piling Work etc.

The Financial Statements of the Company for the year ended March 31, 2018 were authorised for issue by the Board of Directors on May 29, 2018

2 Significant Accounting Policies

2.1 Basis of preparation

(a) Compliance with Ind AS:

The Financial Statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended and Companies (Indian Accounting Standards) Amendment Rules, 2016 (Ind AS) . The Financial Statements comply in all material respects with Ind AS.

(b) Historical cost convention

The Financial Statements have been prepared on a historical cost basis, except for the following:

a. certain financial assets and liabilities that are measured at fair value;

b. defined benefit plans - plan assets measured at fair value;

The Financial Statements are presented in Indian Rupees (Rs.) which is the functional and presentational currency and all values are rounded to the nearest Lakh, except otherwise indicated.

(c) Recent Accounting Pronouncements Standards issued but not yet effective: Ind AS 115 - Revenue from Contracts with Customers

Ind AS 115 was issued in February 2016 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This standard will come into force from accounting period commencing on or after April 1, 2018. The Group will adopt the new standard on the required effective date.

3 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements, Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount.

(b) Estimation of Defined benefit obligations/ plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

(c) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company’s history, existing market conditions as well as forward looking estimates at the end of each reporting period.

(b) The company has only one class of shares referred to as Equity shares having a face value of Rs.5 each (March 31, 2017: Rs.5 each). Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(c) The company has not issued any bonus shares during the last five years immediately preceeding the balance sheet date.

(d) In the event of liquidation of the company, the holders 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.

(e) Details of shareholders holding more than 5% shares in the company

(f) Aggregate number of equity shares issued as bonus, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This is not available for distribution of dividend but can be utilised for issuing bonus shares.

(a) Non Current Borrowings

(1) Secured term loans from banks:

i. Loans from HDFC bank are bearing interest rates ranging from 8.25% p.a. to 9.36% p.a. The loans are repayable in 36 months to 48 months in equal monthly instalments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of assets (i.e. Equipment, Vehicles and plant and machinery) and personal guarantee of Mr. Jagdishkumar M. Gupta.

ii. Loans from ICICI bank are bearing interest rates ranging from 8.45% p.a. to 10.99% p.a. The loans are repayable in 29 months to 48 months in equal monthly instalments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of assets (i.e. Equipment, Vehicles and plant and machinery).

iii. Loans from Allahabad bank are bearing interest rates ranging from 8.65% p.a. to 8.85% p.a. The loans are repayable in 48 months to 60 months in equal monthly instalments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of vehicle and personal guarantee of Mr. Jagdishkumar M. Gupta.

iv. Loans from Bank of Baroda bearing interest rate of 10.70 % p.a. The loans are repayable in 48 months in equal quaterly instalments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of equipment and personal guarantee of Mr. Jagdishkumar M. Gupta , Mr. Nalin J. Gupta and Mr. Kamal J. Gupta.

v. Loan from RBL Bank Ltd bearing interest rate of 5.40 % p.a. unhedged. The loans are repayable in 36 months in equal quaterly instalments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of equipment and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Kamal J. Gupta.

(2) Secured term loans from others:

Loans from SREI Equipment Finance Limited are bearing interest rates ranging from 2.31% p.a. to 9.00% p.a. The loans are repayable in 48 months to 60 months in equal monthly instalments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of assets (i.e. Equipment, Vehicles and plant and machinery)

(3) Secured External Commercial Borrowing /term loans from banks:

External Commercial Borrowing (ECB loan) of USD 7.90 Million from Standard Chartered bank is bearing interest rate ranging from 12.60% p.a. to 12.70% p.a. and is fully hedged by Company. The loans are repayable in 5 years in quarterely instalments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of plant and machinery and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin J. Gupta.

(b) Secured Current Borrowings

(1) Working capital loans (Cash credit ) from banks are under consortium arrangement (refer Note No. 15 for further details of Security and other details). The interest rate are ranging from 10.00% p.a. to 11.00 % p.a.

(2) Overdraft facilities from banks are secured against Fixed Deposit Receipts. The interest rate are ranging from 7.00% p.a. to 9.05% p.a.

4 WORKING CAPITAL LIMITS UNDER CONSORTIUM ARRANGEMENT

(I) GENERAL CONSORTIUM

The Company has availed Working Capital Facilities against hypothecation of Stock and Book Debt under Bank of India Lead Consortium Arrangement, the details of credit facilities and Security details are as follows :

Post Employement obligations a) Defined benefit plans - Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

The amount recognised in the balance sheet and the movement in the net defined benefit obligation over the period are as follows

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occuring at the end of the reporting period.

The average remaining duration of the defined benefit plan obligation at the end of the reporting period is 2.02 years (March 31, 2017: 2.23 years)

b) Defined contribution plans - Provident fund

The company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any contructive obligation. The expense recognised during the period towards defined contribution plan is Rs.703.74 Lakh (March 31, 2017: Rs.480.47 Lakh)

5. COMMITMENTS AND CONTINGENCIES

A. Commitments

i. Capital Commitments

ii. Leases Operating lease commitments - Company as lessee

The Company has taken various residential and commercial premises under cancellable / non-cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee.

Lease rental expense in respect of operating leases for the year is Rs.862.41 Lakhs (March 31, 2017: Rs.511.86 Lakhs)

The initial tenure of the lease period vary from eleven to thirty six month. The rental obligations are as follows:

6. INTEREST IN OTHER ENTITIES

Joint Operations

The Company’s share of interest in joint operations as at March 31, 2018 and March 31, 2017 is set out below. The principal place of business of all these joint operations is in India.

Reclassification of joint arrangements

During the year, the company has completed the assessment of its interest in all jointly controlled entities based on the facts and circumstances and application of guidance given in Ind AS 111 on Joint Arrangements.

The joint arragements in relation ofjoint operations mentioned above requires unanimous consent from all the parties for all relevant activities. The partners/joint operators have direct rights to the assets of the entity and are jointly and severally liable for the liabilities incurred by the entity. These entities are therefore classified as joint operations and the company recognises its direct right to the jointly held assets, liabilities, revenues and expenses.

* The amount of post employment benefit are not available seperately in the acturial’s report. Composite amount is disclosed in Note No. 30

(e) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year end are unsecured and interest free and settlement occurs by cash flows. There have been no guarantees provided or received for any related party receivables and payables. This assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party operates.

7. SEGMENT REPORTING

The company’s operations predominantly consist of construction activities. Hence there are no reportable segments under Ind AS - 108 “ Operating Segment ” during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

Revenue arising from contract revenue of three customers aggregated to Rs.116,662.35 Lakh (March 31, 2017: two customer aggregated to Rs.52,921.76 Lakh ), exceeds 10% of revenue from operations of the Company.

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

The fair values for loans, security deposits and other non current assets were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the Fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

ii. Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measure at fair value. To provide an indication about the reliability of the inputs used in determing fair value, the company has classified its financial instruments into three levels prescribed under the accounting standard. An explanation of each level follows underneath the table:

There have been no transfers among Level 1, Level 2 and Level 3 during the period

Level 1 - Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV

Level 2 - The fair value of financial instruments that are not traded in an active market 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 are not based on observable market data, the instrument is included in level 3.

iii. Valuation technique used to determine fair value Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iv. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports direclty to the chief financial officer (CFO) and the audit committte. Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every three months, in line with the company’s quarterly reporting periods.

8. FINANCIAL RISK MANAGEMENT

The company’s activity expose it to market risk, liquidity risk and credit risk. The company’s focus is to foresee the unpredictability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance. In order to minimise any adverse effects on the financial performance of the company, derivative financial instruments, such as interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the company’s management.

(A) Credit risk

Credit risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the company. The maximum exposure of the financial assets represents trade receivables, work in progress and receivables.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs.52,877.31 Lakh and Rs.48,614.30 Lakh as of March 31, 2018 and March 31, 2017, respectively. However the Company has its major revenue from companies mainly consisting of government promoted entities having strong credit worthiness, Hence the exposure to credit risk is not material.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies. Investments primarily include investment in liquid mutual fund units with high credit rating mutual funds.

(B) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Long-term borrowings generally mature between 1 and 5 years. Liquidity is reviewed on a daily basis based on weekly cash flow forecast.

The Company had a working capital of Rs.52,202.90 Lakh as of March 31, 2018 and Rs.61,193.17 Lakhs as of March 31, 2017.The Company is confident of managing its financial obligation through short term borrowing and liquidity management.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

(i) Foreign currency risk

“Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the external commercial borrowings and foreign receivables.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating procedures to mitigate the risks.”

(ii) Interest rate risk

The company’s main interest rate risk arises from borrowings with variable rates, which expose the company to cash flow interest rate risk. Company’s policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During March 31, 2018 and March 31, 2017, the company’s borrowings at variable rate were mainly denominated in USD.

The company’s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market

The company manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. Under these swaps, the company agrees with other parties to exchange, at specified intervals (mainly quarterly), the difference between fixed contract rates and floating rate interest amounts calculated by reference to the agreed notional principal amounts. Generally, the company raises long-term borrowings at floating rates and swaps them into fixed rates that are lower than those available if the company borrowed at fixed rates directly.

(iii) Price risk

Equity instruments/Mutual Funds price risk - The company’s exposure to listed equity instruments and mutual funds price risk arises from investments held by the company and classified in the balance sheet at fair value through profit or loss.

To manage its price risk arising from investments in equity instruments and mutual funds, the company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the company.

Profit for the period would increase/decrease as a result of gains/losses on equity instruments/mutual funds classified as at fair value through profit or loss.

9. CAPITAL MANAGEMENT

The Company’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain/enhance credit rating.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of gearing ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents and other bank balances.

10. DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 (MSMED ACT, 2006)

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.


Mar 31, 2017

NOTE 1 :- DISCLOSURE REQUIRED PURSUANT TO IND AS - 17 “ACCOUNTING FOR LEASES”

The Company has taken various residential and commercial premises under cancellable operating leases.

(a) Operating lease payment:

Lease rental expense in respect of operating leases: Rs, 511.86 Lakh (P.Y. Rs, 447.42 Lakh)

The Company has taken various residential and commercial premises under cancellable / non-cancellable operating lease agreements that are renewable on a periodic basis at the option of both the less or and the lessee .

(b) Operating lease receivables:

Lease rental income in respect of operating lease: Rs, 35.84 Lakh (P.Y. Rs, 31.31 Lakh)

NOTE 2 :- Value of Imports calculated on CIF basis: Rs, 3,390.68 Lakh (P.Y. Rs, 133.76 Lakh)

NOTE 3 :- Forward Cover Contracts (Disclosure as required by Ind AS - 21 The Effect of changes in Foreign Exchange Rates) :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from exchange rates fluctuations, and is not used by the company for trading or speculation purposes. This forward contracts are classified and measured as derivatives. The company does not follow the hedge accounting.

Buyers'' Credit is not hedged by the Company as its exposure to the movements in foreign currency exchange rates is adjusted against inflows. Buyers credit has fully paid during the year and there are no buyers credit outstanding at the end of the year.

NOTE 4:- The company’s operations predominantly consist of construction activities. Hence there are no reportable segments under Ind AS - 108 “ Operating Segment ” during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

NOTE 5:-FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company’s business activities exposed to a variety of financial risk viz., market risk, credit risk and liquidity risk. The company’s focus is to foresee the unpredictability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the company’s management.

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. Such changes in the values of financial instruments may result from changes in the foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

Interest rate risk

Out of total borrowings, large portion represents short term borrowings and the interest rate primarily basing on the company’s credit rating and also the changes in the financial market. Company influence rating and also factors which influential the determination of the interest rates by the banks to minimize the interest continuously monitoring over all factors rate risks.

Foreign currency risk:

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from exchange rates fluctuations. Buyers credit has fully paid during the year and there are no buyers credit outstanding at the end of the year.

Credit Risk

Credit risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the company. The maximum exposure of the financial assets represents trade receivables, work in progress and receivables.

Capital management:

The Company’s capital management objective is to maximize the total shareholder return by optimizing cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain/enhance credit rating.

The Company determines the amount of capital required on the basis of annual operating plan and long-term strategic plans. The funding requirements are met through internal accruals and long-term/short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents.

Note 6:

Figures of earlier year have been reclassified to conform to Ind AS presentation requirements Note 52: First-time adoption of Ind AS

These are the Company''s first Standalone Financial Statements prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and as amended and other relevant provisions of the Act.(Ind AS) . The accounting policies set out in Note 1 have been applied in preparing the Financial Statements for the year ended March 31, 2017.

The comparative information presented in these standalone Financial Statements for the year ended March 31, 2016 and in the preparation of an opening Ind AS balance sheet at April 01, 2015 (date of transition of the Company). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act, (hereinafter referred to as ''Previous GAAP''). An explanation of how the transition from Previous GAAP to Ind AS has affected the financial position, financial performance and cash flows of the Company is set out in the following tables and notes.

The Company has adopted Indian Accounting Standards (Ind AS) as notified under Section 133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules, 2015] and other relevant provisions of the Act. (Ind AS) on and from the financial year 2016-17, with a transition date of April 01, 2015. For all periods up to and including the year ended March 31, 2016, the Company prepared its Financial Statements in accordance with the previously applicable Indian GAAP (hereinafter referred to as ''Previous GAAP'').

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time adoption of Indian Accounting Standards (Ind AS 101). Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS Financial Statements be applied retrospectively and consistently for all financial years presented, subject to mandatory exceptions and voluntary exemptions.

Accordingly, the Company has prepared Financial Statements which comply with Ind AS for year ended March 31, 2017, together with the comparative information as at and for the year ended March 31, 2016.

The Company had prepared opening Ind AS balance sheet as at April 01, 2015, the date of transition to Ind AS. In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in Financial Statements prepared in accordance with the accounting standards notified

Notes to the Standalone Financial Statements for the year ended March 31, 2017

under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected the financial position, financial performance and cash flows of the Company is set out in the following tables and notes:

A. Exemptions and exceptions Availed: > Ind AS optional exemptions

i. Previous GAAP carrying value as deemed cost exemption:

Ind AS 101 permits a first-time adopter to elect to I GAAP carrying value of all of its property, plant and equipment as recognized in the Financial Statements as at the date of transition as its deemed cost under In Ind AS. Accordingly, the Company has elected to measure all of its property, plant and equipment at previous GAAP carrying value on date of transition as deemed cost.

ii. Long Term Foreign Currency Monetary Items

The Company continues the policy of capitalizing exchange differences arising on translation of long term finance currency monetary items.

iii. Investments in subsidiaries, joint ventures and associates

Ind AS 101 permits a first time adopter to measure its investment in subsidiaries , associates and joint ventures at the date of transition, at cost determined in accordance with Ind AS 27, or deemed cost, The deemed cost of such investment shall be it''s fair value at date of transition to Ind AS of the Company, or IGAAP carrying amount at that date. The Company has elected to measure its investment in subsidiary firms , and joint venture firms at previous GAAP carrying amount as its deemed cost on the transition date. The Company has for the first time prepared the consolidated financial statements as it was not required to prepare and present the consolidated financial statements as per previous GAAP.

> Ind AS Mandatory exceptions:

Exceptions applied:

The Company has applied the following exceptions from full retrospective application of Ind AS mandatorily required under Ind AS 101.

i) Estimates

Estimates in accordance with Ind AS at the transition date shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 01, 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Impairment of financial assets based on expected credit loss model.

ii) De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of transition to Ind AS, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities de-recognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

iii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

iv) Impairment of financial assets

IndAS 101 requires guidance''s for impairment as per IndAS 109 to be applied post-transition date.

Reference to the reconciliation :

A. (i) Fair Valuation of Investments

Under the previous GAAP , investments in equity instruments and mutual funds were classified as long term investments or current investments based on the intended holding period and reliability .Long term investments were carried at cost less provision for other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value. Under Ind AS investments in equity instruments (other than of subsidiaries, associates and joint ventures) are required to be measured at fair value. The Company has opted to measure investment in equity instruments (other than of subsidiaries, associates and joint ventures) , Investments in mutual funds and KVP at fair value through profit and loss account ( FVTPL) . The resulting fair value changes of these investments (other than equity instruments designed as at FVOCI) have been recognized in retained earnings as at the date of transition and subsequently in the profit or loss for the year ended March 31, 2016. This decreased the retained earnings by Rs, 80.21 lakhs as at March 31, 2016 (April 1,2015 - Rs, 61.43 lakhs). Consequent to the above, the total equity as at March 31,

2016 decreased by Rs, 80.21 lakhs ( April 1,2015 - Rs, 61.43 Lakhs) and profit for the year ended March 31,2016 decreased by Rs, 18.79 lakhs.

A.(ii)Non Current Investments measured at fair value : Other income

Under Ind AS, investments in certain equity instruments (other than of subsidiaries, associates and joint ventures) are carried at fair value through Profit and Loss as compared to being carried at cost under previous GAAP. The adjustment represents the difference in the fair value and the cost of investments in equity instruments. This difference decreased the income by Rs, 18.79 Lakhs as at March 31, 2016.

B Other Equity

Adjustments to retained earnings and OCI have been made in accordance with Ind AS, for the above mentioned transition items

C Borrowings

Ind AS 109 requires transaction cost incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit or loss over the tenure of the borrowing as part of the interest expense by applying the EIR method. Under Ind AS, loans are valued at present value as against cost in the previous GAAP. The difference between the present value and cost is recognized in the opening retained earnings

D Deferred Tax

Tax component on the gain/ (loss) on fair value of defined benefit plans and equity instruments have been transferred to the OCI under Ind AS. Deferred tax have been recognized on the adjustments made on transition to Ind AS

E Provisions : Proposed Dividends :

Under the IGAAP, dividends proposed by the Board of Directors after the Balance Sheet Date but before the approval of the Financial statements was considered as adjusting events. Accordingly, provision for Proposed dividend was recognized as a liability. Under IndAs, such dividends are recognized when the same are approved by the Shareholders in the General meeting. Accordingly, the liabiity of the proposed dividend (including the dividend distribution tax thereon) of Rs, 1821.39 lakhs as at March 31, 2016 (April 01,2015 :Rs, 1551.50 Lakhs) included in the current provisions has been reversed with corresponding adjustment to Retained earnings. Consequently, the total equity has been increased by an equivalent amount.

F Other Non-Current assets : Security Deposits

Under Ind AS, interest free security deposits are measured at amortised cost as compared to being carried at transaction value in the previous GAAP. The adjustment includes the difference between the book value and present value of interest free security deposits.

G Other Comprehensive Income

Under Ind AS, all items of income and expenses were recognized in a period should be included in profit or loss for the period, unless a standard requires or permits Items of income and expense that are not not recognized in profit and loss but are shown in the statement of profirt and loss as other comprehensive income include remeasurement of defined benefit plans. The concept of other comprehensive income did not exit under previous GAAP. Under the previous GAAP, the Company has not presented OCI separately. Hence, it has reconciled previous GAAP profit or loss to profit or loss as per Ind AS. Further, previous GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

H Remeasurement of post-employee benefit obligations

Under IndAS, remeasurements that is actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in Other Comprehensive Income instead of profit or loss. Under the IGAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity as at March 31, 2016

I Statement of cash flows

The transition from IGAAP to Ind AS did not have a material impact on the statement of cash flows.

J Financial assets and financial liabilities have been re-grouped / reclassified wherever required to comply with Ind AS

Note 8: Proposed Dividend

The proposed dividend on Equity shares at Rs, 2.00 (previous year Rs, 2.00 ) per share is recommended by the Board of Directors which is subject to the approval of the Shareholders in the ensuing Annual General Meeting.


Mar 31, 2016

1. Disclosure required pursuant to Accounting Standard - 28 "Impairment of Assets”

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the Management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2. Figures of previous year have been regrouped / rearranged wherever necessary. All figures have been given in Rupees in Lakh.

In our opinion and according to the information and explanation given to us, contract which has been awarded in the name of Joint Venture were executed by the joint venture. The company neither deploys any of its assets nor it incurs any liabilities, it books only its share of profit as per JV agreements between the venture partners.

3. In the opinion of the Management, the balance shown under Trade Receivables and Loans & Advances have approximately and the same realizable value as shown in accounts.

4. During the year 2015 - 16, the company has transferred Rs. 1031.62 lakh @ 10% of the profit (P.Y. Rs. 943.86 lakh) from Statement of Profit and Loss to General Reserve.

5. Micro & Small Enterprises:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Disclosure required pursuant to Accounting Standard - 19 “Accounting for Leases”:

The Company has taken various residential and commercial premises under cancellable operating leases.

(a) Operating Lease Payment:

Lease rental expense in respect of operating leases: Rs. 447.42 lakh (P.Y. Rs. 452.45 lakh)

The Company has taken various residential and commercial premises under cancellable / non-cancellable operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee.

(b) Operating Lease Receivables:

Lease rental income in respect of operating lease: Rs.31.31 lakh (P.Y. Rs. 28.30 lakh)

7. The company’s operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard-17 “Segment Reporting” during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

8. Expenditure related to Corporate Social Responsibility (CSR) is in accordance with the provisions of section 135 of the Companies Act, 2013 the Company has spent an amount of Rs. 376.20 lakh during the year as against Rs. 249.94 lakh.

9. Value of Imports calculated on CIF basis: Rs. 133.76 lakh (P.Y. Rs. 1,762.52 lakh)

10. Forward Cover Contracts (Disclosure as required by AS - 11 The Effect of changes in Foreign Exchange Rates) :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from exchange rates fluctuations, and is not used by the company for trading or speculation purposes.

Buyers'' Credit is not hedged by the Company as its exposure to the movements in foreign currency exchange rates is adjusted against inflows.

11. Expenditure in Foreign Currency:

12. During the previous financial year, the company has revised the Depreciation rate on fixed assets as per the useful life specified in Schedule II of the companies act, 2013 or re-assessed by the company. Based on the current estimate, depreciation of Rs. 44.87 lakh on account of assist whose useful life was over as on 01.04.2014 and deferred tax Rs.15.25 lakh thereon have been adjusted against General Reserves.

13. During the year, the Company has raised Rs. 40,927.80 lakh (P.Y. 13,716.62) by issuing and allotting 56,06,548 (P.Y. 44,25,000) Equity Shares having a face value of Rs. 10/- each at premium of Rs.720/- (P.Y. 299.98/-) per share to the Qualified Institutional Investors rank Pari Passu with existing Equity Shares including rights in respect of dividends, the net proceeds of the issue have been partially utilized towards Working Capital and balance unutilized amount of Rs. 17,500.00 lakh invested in Mutual Funds. Details of Utilisation and Investment of QIP Proceeds are as

14. The company has only one class of shares referred to as Equity Shares having a face value of Rs. 5/-1 each (PY Rs.10/-). Each Equity share is entitled to one vote per share held.

Board of Directors at their Meeting held on 2841 June 2015 had approved the sub-division of each Equity Share of face value of Rs.10/- (Rupees Ten Only) of the Company into 2 (Two) Equity Shares of face value of Rs. 5/- (Rupees Five Only) further the Members of the Company have approved the said sub-division at the 16th Annual General Meeting on 15th September 2015. The record date for the spilt of share was 11th December, 2015


Mar 31, 2015

1 SHARE CAPITAL

a) The company has only one class of shares referred to as Equity Shares having a face value of Rs. 10/- each. Each Equity share is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the Shareholders in the ensuring Annual General Meeting.

b) The company has not issued any bonus shares during the last five years immediately preceeding the balance sheet date.

c) In the event of liquidation of the Company, the holders 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.

d) During the year, the Company has issued and allotted 44,25,000 (Previous Year - Nil) Equity Shares having a face value of Rs. 10/- each at a premium of Rs. 299.98 per share to the Qualified Institutional Investors rank Pari Passu with existing Equity Shares including rights in respect of dividend.

2 During the year, the Company has issued and allotted 44,25,000 (Previous Year - Nil) Equity Shares having a face value of Rs. 10/- each at premium of Rs. 299.98 per share to the Qualified Institutional Investors rank Pari Passu with existing Equity Shares including rights in respect of dividend.

3 During the year the Company has paid dividend @ Rs 3.75 per equity share on additional 44,25,000 equity shares issued on 23rd July, 2014 and allotted after balance sheet date but before book closure date i.e. 6th September 2014.

4 The Directors recommended payment of final dividend of Rs. 4/- per equity share of Rs. 10/- on each of the number of shares outstanding as on the record date.

ECB Loan of USD 10 Million from Standard Chartered Bank bearing interest rate ranging from 8.48% p.a. to 11.95% p.a. on fully hedged. The loans are repayable in 4 years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M. Gupta and Mr. Nalin J. Gupta.

ECB Loan of USD 7.90 Million from Standered Chartered Bank bearing interest rate ranging from 12.60% p.a. to 12.70% p.a. on fully hedged. The loans are repayable in 5 years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M.Gupta and Mr. Nalin J. Gupta.

Buyers Credit of USD 26.13 Million from Union Bank of India, Vijaya Bank, Standared Chartered Bank, Bank of Maharashtra and Dena Bank bearing interest rate ranging from 2.00% p.a. to 3.35% p.a. unhedged . The loans are repayable in 3 Years in quarterly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M.Gupta and Mr. Nalin J. Gupta.

Other term Loans includes loan from HDFC Bank bearing interest rate ranging from 10% p.a. to 11% p.a. The loans are repayable in 36 months to 48 months in equal monthly installments from the respective dates of disbursement of loans after considering moratorium period. The above loans are secured by hypothecation of Plant & Machinery and personal guarantee of Mr. Jagdishkumar M.Gupta.

Other term Loans includes loan from ICICI Bank bearing interest rate ranging from 8.45% p.a. to 10.59% p.a. The loans are repayable in 29 months to 48 months in equal monthly installments from the respective dates of disbursement of loans. The above loans are secured by hypothecation of Plant & Machinery .

5 Working Capital Loan (Cash credit ) from banks under consortium limit is secured against hypothecation of stock and book debts, details of security and limits (Refer Note 31 and 32).The interest rate ranging from 10.90% p.a. to 13.50 % p.a.

6 Overdraft facility from banks secured against Fixed Deposit receipts and are personal guarantee of promoter Directors. The interest rate ranging from 8% p.a. to 10.05% p.a.

7 Overdraft facility against Earnest Money Deposit (EMD) within Guarantee limit and details of security (Refer Note 31).The interest rate is 12.20% p.a. and repayable within 6 months from the date of disbursement.

8 Disclosure required pursuant to Accounting Standards - 28 "Impairment of Assets" prescribed by Companies (Indian Accounting Standards) Rules, 2015 is as follows:-

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

9 In the opinion of the Management, the balance shown under Trade Receivables and Loans & Advances have approximately the same realizable value as shown in accounts.

10 During the year 2014 - 15, the company has transferred Rs. 943.86 Lacs @ 10% of the profit (P.Y. Rs. 840.50 Lacs) from Statement of Profit and Loss to General Reserve.

11 Micro & Small Enterprises:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

12 Disclosure required pursuant to Accounting Standards - 19 "Accounting for Leases" prescribed by Companies (Indian Accounting Standards) Rules, 2015 is as follows:-

The Company has taken various residential premises under cancellable operating leases.

(a) Operating Lease Payment:

Lease rental expense in respect of operating leases: Rs. 452.45 Lacs (P.Y. Rs. 368.20 Lacs)

(b) Operating Lease Receivables:

Lease rental income in respect of operating lease: Rs. 28.30 Lacs (P.Y. Rs. 109.68 Lacs)

13 The company''s operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard- 17 " Segment Reporting" during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

14 Expenditure related to Corporate Social Responsibility is in accordance with the provisions of section 135 of the Companies Act, 2013 read with Schedule VII, the Company has spent an amount of Rs. 100 Lakhs during the year as against Rs. 224.40 lacs.

15 Value ofImports calculated on CIF basis: Rs. 1,762.52 Lacs (P.Y. Rs. 13,949.35 lacs)

16 Forward Cover Contracts (Disclosure as required by AS - 11 The Effect of changes in Foreign Exchange Rates) :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from exchange rates fluctuations, and is not used by the company for trading or speculation purposes.

17 Contingent Liabilities & Commitments (Rs. in lacs)

Particulars 2014-15 2013-14

A. Contingent Liabilities

Guarantees 83,440.12 82,121.34

Letter of Credit 3,894.14 2,469.35

Income tax* 1,833.00 569.18

B. Commitments contracts remaining to be 2,673.70 2,673.70 executed on capital account

Total 91,840.96 87,833.57

*The order under section 143 (3) read with section 147 of Income Tax Act, 1961 has been received for total demand of Rs. 1833.00 Lacs raised by the Assessing Officer for the Assessment Year 2007 - 08 to 2012 - 13 and against which the company has filed an appeal with Commissioner of Income Tax (Appeal). In view of earlier favourable judgements by the Authorities on similar grounds, the Management is expecting to receive a favourable order in this matter.

18 During the financial year, the Company has revised the Depreciation rate on fixed assets as per the useful life specified in Schedule II of the Companies Act, 2013 or re-assessed by the Company. Based on current estimates, depreciation of Rs 44.87 Lacs on account of assets whoes useful life was over as on 01.04.2014 and deferred tax Rs 15.25 Lacs thereon have been adjusted against General Reserves.


Mar 31, 2014

1 Accounting for interests in Joint Ventures :

Interests in joint ventures are accounted as follows:

Type of joint venture Type of joint venture

Jointly controlled entities (a) Unincorporated joint ventures:

(i) Company''s share in profits or losses of unincorporated joint ventures is accounted on determination of the profits or losses by the joint ventures.

In respect of contracts executed in integrated joint venture under profit sharing arrangements, net investment in the joint venture is reflected as Current Assets.

2 Cash and cash equivalents :

Cash and cash equivalents for purpose of the cash flow statements comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

3 Forward Exchange Contract

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

Buyers'' Credit is not hedged by the Company as its exposure to the movements in foreign currency exchange rates is adjusted against inflows.

4 Cash Flow Statement :

"Cash Flow Statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit is adjusted for the effects of :"

i) Transactions of a non-cash nature

ii) Any deferrals or accruals of past or future operating cash receipts or payments and

iii) Items of income or expense associated with investing or financing cash flows

Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.

5 Disclosure required pursuant to Accounting Standards – 28 "Impairment of Assets" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:-

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

6. Quantitative Details:

The Company is engaged in the business of Construction Contract. Such activity cannot be expressed in any generic unit. Hence , it is not possible to give the quantitative details of Sales and the information as required under revised schedule VI of the Companies Act, 1956.

7 In the opinion of the Management, the balance shown under Sundry Debtors and Loans & Advances have approximately the same realizable value as shown in accounts.

8 During the year 2013-14, the company has transferred Rs. 840.50 Lacs from Statement of Profit and Loss to General Reserve to comply with the provision under section 205(2) of the Companies Act 1956.

9 Micro & Small Enterprises:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

10 Disclosure required pursuant to Accounting Standards – 19 "Accounting for Leases" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:- The Company has taken various residential premises under cancellable operating leases.

(a) Operating Lease Payment:

Lease rental expense in respect of operating leases: Rs. 368.20 Lacs (P.Y. Rs. 163.18 Lacs)

(b) Operating Lease Receivables:

Lease rental income in respect of operating lease: Rs. 109.68 Lacs (P.Y. Rs. 94.58 Lacs)

11 The company''s operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard- 17 " Segment Reporting" during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

12 Figures of previous year have been regrouped / rearranged wherever necessary. All figures have been given in Rupess in lakhs.

13 Value of Imports calculated on CIF basis: 13,949.35 Lacs (P.Y. 4,455.45 Lacs)

14 Forward Cover Contracts (Disclosure as required by AS - 11 The Effect of changes in Foreign Exchange Rates) :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

15 Contingent Liabilities

Guarantee: Rs in. Lacs

Particulars 2013.14 2012-13

Outstanding Bank Guarantee as on 31st March, 2014 is Rs. 82,121.34 Lacs.

Letter of Credit

Outstanding Letter of Credit (L.C.) is Rs. 2,469.35 Lacs as on 31st March, 2014

Income Tax Assessment:

The Block assessment order under section 153 A has been completed and assessment order has been received and the total liability raised by the CIT (A) for the Assessment Year 2004 - 05 to 2010 - 11 is Rs. 569.18 lacs and the same has been paid by the company against which the company has gone in to appeal with Income Tax Appelate Tribunal.


Mar 31, 2013

1 Disclosure required pursuant to Accounting Standards - 28 "Impairment of Assets" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:-

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2. Quantitative Details:

The Company is engaged in the business of Construction Contract. Such activity cannot be expressed in any generic unit. Hence , it is not possible to give the quantitative details of Sales and the information as required under revised schedule VI of the Companies Act, 1956.

3 In the opinion of the Management, the balance shown under Sundry Debtors and Loans & Advances have approximately the same realizable value as shown in accounts.

4 During the FY 2012-13, the company has transferred Rs. 757.43 lacs from Statement of Profit and Loss to General Reserve to comply with the provision under section 205(2) of the Companies Act 1956.

5 Micro & Small Enterprises:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 Disclosure required pursuant to Accounting Standards - 19 "Accounting for Leases" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:-

The Company has taken various residential premises under cancellable operating leases.

Operating Lease Payment:

Lease rental expense in respect of operating leases: Rs. 163.18 Lacs (RY. Rs. 169.34 Lacs)

Operating Lease Receivables:

Lease rental income in respect of operating lease: Rs. 94.58 Lacs (P. Y. Rs. 69.14 Lacs)

7 The company''s operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard- 17 " Segment Reporting" during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

8 The Company is maintaning accounts in ERP (Farvision) system.

9 Figures of previous year have been regrouped / rearranged wherever necessary. All figures have been given in Rupess in lakhs.

10 Value of Imports calculated on CIF basis: 4,455.45 Lacs (P.Y. 224.25 Lacs)

11 Forward Cover Contracts (Disclosure as required by AS -11 The Effect of changes in Foreign Exchange Rates):

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

Buyers'' Credit is fnot hedged by the Company as its exposure to the movements in foreign currency exchange rates is adjusted against inflows.


Mar 31, 2012

(A) ADDITIONAL NOTES TO ACCOUNTS

1 Disclosure required pursuant to Accounting Standards - 28 "Impairment of Assets" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:-

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2 Quantitative Details:

The Company is engaged in the business of Construction contract. Such activity cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under revised schedule VI of the Companies Act, 1956.

3 In the opinion of the Management, the balance shown under Sundry Debtors and Loans & Advances have approximately the same realizable value as shown in accounts.

4 During the year 2011-12, the company has transferred Rs. 680.66 Lacs from Profit and Loss account to General Reserve to comply with the provision under section 205(2) of the Companies Act 1956

5 Micro & Small Enterprises:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 Disclosure required pursuant to Accounting Standards - 19 "Accounting for Leases" prescribed by Companies (Accounting Standards) Rules, 2006isasfollows:-

a) The Company has taken various residential premises under cancellable operating leases.

Operating Lease Payment:

Lease rental expense in respect of operating leases: Rs. 169.34 Lacs (P.Y. Rs. 89.18 Lacs)

Operating Lease Receivables:

Lease rental income in respect of operating lease: Rs. 69.14 Lacs (P.Y. Rs. 140.25 Lacs)

7 The company's operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard- 17 " Segment Reporting" during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

8 The Company is maintaning accounts in ERP (Farvision) from 01.04.2011 earlier the company was using Tally 9 version.

9 Figures of previous year have been regrouped / rearranged wherever necessary. All figures have been given in Rupees in lacs.

10 Value of Imports calculated on CIF basis: 224.25 Lacs (P.Y. 790.16 Lacs)

11 Forward Cover Contracts (Disclosure as required by AS -11 The Effect of changes in Foreign Exchange Rates):

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.


Mar 31, 2011

1. Disclosure required pursuant to Accounting Standards – 28 "Impairment of Assets" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:-

The Company has carried out impairment test on its fixed assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision for impairment is required to be made as per Accounting Standard - 28 on Impairment of Assets.

2. Secured Loans:

a) Overdraft against FDR :

The Company has taken Overdraft Facility against Fixed Deposit Receipts from Banks and the outstanding balance as on 31st March, 2011 was Rs. 1,751.99 Lacs.

The Company has taken Overdraft Facility secured by personal guarantee of Jagdishkumar M. Gupta, Kamal J. Gupta and Nalin J. Gupta from Bank and the outstanding balance as on 31st March, 2011 was Rs. 940.92 Lacs.

b) Other Term Loan :

The Company has taken Term Loan for the Purchase of Plant & Machinery from Bank and secured by way of first charge on such Plant & Machinery. The Outstanding balance as on 31st March, 2011 was Rs. 29.63 Lacs.

c) ECB Loan :

The Company has taken ECB Loan for the Purchase of Plant & Machinery from Bank and secured by way of first charge on such Plant & Machinery and personal guarantee of Jagdishkumar M. Gupta, Kamal J. Gupta and Nalin J. Gupta. The Outstanding balance as on 31st March, 2011 is Rs. 901.00 Lacs.

d) FCNR Loan :

The Company has taken FCNR Loan from Bank and secured by way of personal guarantee of Jagdishkumar M. Gupta, Kamal J. Gupta, Nalin J. Gupta and Kusum J. Gupta. The Outstanding balance as on 31st March, 2011 is Rs. 1,500.00 Lacs.

e) Working Capital Limits:

The Company has taken Working Capital Limits against hypothecation of Stock and Book Debt under consortium agreement with several banks details of which is as follows:

Particulars Working Capital Facility

Cash Credit Rs. 13,500 Lacs

BG Limit Rs. 30,000 Lacs

Principal Security a) Pari Passu first charge on Current Assets

b) Non Fund Based: Margin by way of Pledge of TDR @ 5% on B.G. and 10% Cash Margin on financial guarantees.

Collateral Security a) Pari Passu first charge by way of Legal mortgage of open plot at Thane admeasuring 5070 sq. meters situated at survey no.144, H. No. Nil at village Chene, Taluka & District Thane.

b) Pari Passu first charge by way of Legal mortgage of unit no.14, in Andheri Industrial Premises C.H.S. in Amboli, Andheri (w), Mumbai. Estimated at Rs. 0.71 Crores.

c) Pari Passu first charge by way of hypothecation of unencumbered plant & machinery worth Rs. 3.62 Crores.

d) Pari Passu first charge by way of pledge of 40 Lacs company's shares from promoter's holding.

e) Exclusive charge – Pledge of TDR for Rs. 0.35 Crore.

Guarantor Personal guarantees of Directors Jagdishkumar M. Gupta, Kamal J. Gupta, Nalin J.

Gupta and Kusum J. Gupta and J. Kumar & Co.

Outstanding as on 31.03.2011 Rs. 11,616.08 Lacs

3. Quantitative Details:

The Company is engaged in the business of Construction contract. Such activity cannot be expressed in any generic unit. Hence, it is not possible to give the quantitative details of sales and the information as required under paragraph 3, 4C and 4D of part II of schedule VI of the Companies Act, 1956.

4. In the opinion of the Management, the balance shown under Sundry Debtors and Loans & Advances have approximately the same realizable value as shown in accounts.

5. During the previous year 2007-08, 2008-09 and 2009-10, the company had declared dividend @ 15%, 20% and 22.50% respectively, however the company had not transferred prescribed percentage of profits not exceeding 5%, 7.50% and 10% respectively for the year 2007-08, 2008-09 and 2009-10 respectively as required by Sec.205 (2A) r.w. Companies (Transfer of Profits to Reserves)

6. Micro & Small Enterprises:

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding more than 45 days at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. Disclosure required pursuant to Accounting Standards – 19 "Accounting for Leases" prescribed by Companies (Accounting Standards) Rules, 2006 is as follows:-

a) The Company has taken various residential premises under cancellable operating leases.

- Operating Lease Payment:

Lease rental expense in respect of operating leases: Rs. 89.18 Lacs (P.Y. Rs. 76.33 Lacs)

- Operating Lease Receivables:

Lease rental income in respect of operating lease: Rs. 140.25 Lacs (P.Y. Rs. 161.74 Lacs)

As per the information given to us and explanation provided by the management, the company has not entered in any non cancellable lease agreement during the year.

8. The company's operations predominantly consist of construction activities. Hence there are no reportable segments under Accounting Standard-17 " Segment Reporting" during the year under report, the company has engaged in its business only within India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

9. Figures of previous year have been regrouped / rearranged wherever necessary. All figures have been rounded off to the nearest decimal.

10. Value of Imports calculated on CIF basis: 790.16 Lacs (P.Y. – 249.34 Lacs)

11. Forward Cover Contracts (Disclosure as required by AS - 11 The Effect of changes in Foreign Exchange Rates) :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

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