Notes to Accounts of Setubandhan Infrastructure Ltd.

Mar 31, 2018

Note 1: General Corporate Information.

At PrakashConstrowell Limited, we are basically engaged in the business of construction for government and semi-government authorities such as buildings, quarters, roads, bridges, airports, godowns, hospitals, etc and works for private bodies for construction of industrial buildings, residential & commercial complex, townships, health care centres and institutional campus with all related utility services. The company is also engaged in the business of real estate development.

Notes:

(a) The company has only one class of shares referred to as equity shares having a par value of Rs.1 each. Each holder of equity shares is entitled to one vote per share

A. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006:

The company has not maintained the records and details of its suppliers regarding their status as Micro, Small and Medium Enterprises as defined under “Micro, Small and Medium Enterprises Development Act, 2006 “. Since the details are not available in this regards it is not possible for us to give necessary disclosures required.

The stage of completion of contract is determined as the proportion that contract costs are incurred for execution of work to the estimated total contract costs as on reporting date. Revenue is recognised in percentage of stage of completion.

Expected variations in works contract, claims and incentive payments are included in contract revenue only when revenue is certain and capable of being measured reliably. Figures disclosed above are only relating to contracts in progress

B. Disclosure pursuant to Indian Accounting Standard (Ind-AS) 19 Employees Benefits:

i) Defined Contribution Plan:

Employer’s contributions to defined Contribution Plan, recognised as expenses for the year are as under:

The above mentioned figures are as complied and reported by the management.

ii) Defined Benefit Plan:

The present value of obligation for Defined benefit plan is based on the independent actuarial valuation for the year, it was provided on ad hoc basis for last year. The disclosures as required as per the IndAS-15 are as under:

The estimates of future salary increases, considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market.

The expected rate of return on the plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, and historical results of returns on plan assets etc.

C. The company has credited to the profit and loss account Rs. 1,11,770/- being the excess provision of Income Tax for the Previous Year.

D. The Company do not have significant influence on any associate or joint venture, hence the reporting requirements of Ind-AS 28 “Investment in Associates and Joint Venture” is not applicable to it.

E. The Previous year figures are regrouped and rearranged wherever necessary, to confirm with current year’s presentation.

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Mar 31, 2016

Notes:

(a) The company has only one class of shares referred to as equity shares having a par value of '' 1 each. Each holder of equity shares is entitled to one vote per share

The company does not expect any future outflow in respect of above mentioned contingent liabilities. Provisions are made in the accounts in respect of those contingencies which are likely to be materializing into liabilities after the year end, till the finalization of accounts and have material effect on the position stated in Financial Statement.

D. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006:

The company has not maintained the records and details of its suppliers regarding their status as Micro, Small and Medium Enterprises as defined under “Micro, Small and Medium Enterprises Development Act, 2006 “. Since the details are not available in this regards it is not possible for us to give necessary disclosures required.

E. Disclosure pursuant to Accounting Standard (AS) 5 Net Profit or loss for the period, Prior period Items & changes in Accounting Policies:

The Extraordinary item of Rs. 3.06 Lakh (Rs. 2.86 Lakh Previous year) in profit & Loss reflects various donations made by the company.

The stage of completion of contract is determined as the proportion that contract costs are incurred for execution of work to the estimated total contract costs as on reporting date. Revenue is recognized in percentage of stage of completion.

Expected variations in works contract, claims and incentive payments are included in contract revenue only when revenue is certain and capable of being measured reliably. Figures disclosed above are only relating to contracts in progress.

The estimates of future salary increases, considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market.

The expected rate of return on the plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, and historical results of returns on plan assets etc.

b) Changes in the present value of obligation

L. The company has credited to the profit and loss account Rs. 0.02 Lakh being the excess provision of Income Tax for the Previous Year.

M. The Previous year figures are regrouped and rearranged wherever necessary, to confirm with current year’s presentation.

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Mar 31, 2015

Note 1 : General Corporate Information.

At Prakash Constrowell Limited, we are basically engaged in the business of construction for government and semi-government authorities such as buildings, quarters, roads, bridges, airports, godowns, hospitals, etc and works for private bodies for construction of industrial buildings, residential & commercial complex, townships, health care centres and institutional campus with all related utility services. The company is also engaged in the business of real estate development.

A. Contingent Liabilities not provided for:

(in Lakh)

Sr. As at 31st As at 31st March 2015 March 2014 No. Particulars

(i) Performance Guarantees 1384.01 1231.11 given by banks on behalf of the company

(ii) Income Tax Proceedings 175.86 175.86 (Income Tax Department has filed appeal with ITAT for Block Period from 01/04/96 to 09/10/2002)

Total 1559.87 1406.97

The company does not expect any future outflow in respect of above mentioned contingent liabilities. Provisions are made in the accounts in respect of those contingencies which are likely to be materializing into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in Financial Statement.

D. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006:

The company has not maintained the records and details of its suppliers regarding their status as Micro, Small and Medium Enterprises as defined under "Micro, Small and Medium Enterprises Development Act, 2006 ". Since the details are not available in this regards it is not possible for us to give necessary disclosures required.

E. Disclosure pursuant to Accounting Standard (AS) 5 Net Profit or loss for the period, Prior period Items & changes in Accounting Policies :

The Extraordinary item of Rs. 2.86/- Lakh (Rs. 2.21/- Lakh Previous year) in profit & Loss reflects various donations made by the company .

Defined Benefit Plan:

The present value of obligation for Defined benefit plan is based on the independent actuarial valuation for the year, it was provided on ad hoc basis for last year. The disclosures as required as per the Revised AS-15 are as under:

M. The company has credited to the profit and loss account Rs.0.69/- Lakh being the excess provision of Income Tax for the Previous Year & debited to the profit and loss account Rs. 19.98/- Lakh being short provision for income tax for previous years.

N. With effect from April 1, 2014, depreciation has been computed and provided on the basis of useful life of fixed assets as specified in Schedule II to the Companies Act, 2013. The company has decided to change the method of depreciation for following classes of assets from WDV to SLM:

1. Tower Hoists

2. Generators

3. Mixers

4. Other machinery

5. Shops

Due to which the gross charge of depreciation has been reduced by Rs. 33.62 Lakhs including restatement figure. Same has been effected in statement of profit & loss account in depreciation.

O. The Previous year figures are regrouped and rearranged wherever necessary, to confirm with current year''s presentation.

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Mar 31, 2014

Note 1: Notes to the Balance Sheet as at 31st March 2014 and Profit and Loss Account for the year ended on that date.

A. Contingent Liabilities not provided for:

in Lakh As at 31st March As at 31st March 2014 2013

(i) Performance Guarantees given by banks on behalf 1231.11 1605.02 of the company

(ii) Income Tax Proceedings 175.86 175.86

(Income Tax Department has filed appeal with ITAT f or Block Period from 01/04/96 to 09/10/2002)

Total 1406.97 1780.88

The company does not expect any future outflow in respect of above mentioned contingent liabilities. Provisions are made in the accounts in respect of those contingencies which are likely to be materializing into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in Financial Statement.

D. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006:

The company has not maintained the records and details of its suppliers regarding their status as Micro, Small and Medium Enterprises as defined under "Micro, Small and Medium Enterprises Development Act, 2006 Since the details are not available in this regards it is not possible for us to give necessary disclosures required.

E. Disclosure pursuant to Accounting Standard (AS) 5 Net Profit or loss for the period, Prior period Items & changes in Accounting Policies:

The Extraordinary item of Rs. 2.21/- lakh(Rs. 9.52/- lakh Previous year) in profit & Loss reflects various donations made by the company.

F. Disclosure pursuant to Accounting Standard (AS) 7 Construction Contracts:

The stage of completion of contract is determined as the proportion that contract costs are incurred for execution of work to the estimated total contract costs as on reporting date. Revenue is recognised in percentage of stage of completion.

Expected variations in works contract, claims and incentive payments are included in contract revenue only when revenue is certain and capable of being measured reliably. Figures disclosed above are only relating to contracts in progress.

G. Disclosure pursuant to Accounting Standard (AS) 15 Employees Benefits:

The above mentioned figures are as complied and reported by the management, ii) Defined Benefit Plan:

The present value of obligation for Defined benefit plan is based on the independent actuarial valuation for the year, it was provided on ad hoc basis for last year. The disclosures as required as per the Revised AS-15 are as under:

a) Actuarial Assumptions:

The estimates of future salary increases, considered in the actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market.

The expected rate of return on the plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risk, and historical results of returns on plan assets etc.

H. Disclosure pursuant to Accounting Standard (AS) 11 Effect of changes in foreign exchange rates :

The Company has debited to its profit & loss account Rs.3.63/- lakh being amount of exchange difference arising on foreign currency transactions.

I. Disclosure pursuant to Accounting Standard (AS) 17 Segment Reporting :

i) Primary Segment:

The company''s operations predominantly relate to Engineering. Contracting and procurement segment which have been identified as primary reporting segment. Company also works in Real estate & Buildership activity which is a reportable segment for the current year. Following is the segment information

Related parties have been identified on the basis of representation and information given by the Key Management Personnel.

Name Of Party Relationship with the party

Prakash Pusaram Laddlia Executive Director

Trichur Ganpat Krishnan Managing Director

Suresh Girdharilal Sarda Executive Director

(iv) Hemant M. Rathi Non Executive Director

(v) Jayant V. Phalke Non Executive Director

(vi) Girish Vinayak Dani Non Executive Director

(vii) Prashant Prabhakar Gadkari Non Executive Director

(viii) Aruna Prakash Laddha Relative of Director

ix)PUNAMRAJ CONSTRUWELL Wholly Owned Subsidiary Company PVT LTD

(x) Unique Vastu Nirman & Projects Pvt Ltd Subs.d.ary Company

(xi) Vastukrupa Constructions (I) Private Limited AssOCITE COMPANY

(xii) Atal Buildcon Pvt Ltd Associate Company

(xiii) Q Fab Cements Pvt Ltd Associate Company

(xiv) Perfect Aggregates Pvt Ltd Associate Company



K. Disclosure pursuant to Accounting Standard (AS) 19 Leases:

The company has entered into cancellable operating leasing arrangements for Commercial premises. Residential accommodation and Office premises.

The lease terms do not contain any exceptional / restrictive covenants nor are there any options given by the lessor to purchase the properties. The agreements provide for changes in the rentals along with taxes leviable.

The company has recognised Deferred Tax, which results from the timing difference between Book Profit and Tax Profits for the period aggregating Rs 2.79/- lakh in Profit and Loss Account, the details of which are as under:

N. The company has credited to the profit and loss account Rs. 0.44/- lacs being the excess provision of Income Tax for the Previous Year.

O. The Previous year figures are regrouped and rearranged wherever necessary, to confirm with current year''s presentation.

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Mar 31, 2013

Note 1 : General Corporate Information.

At Prakash Constrowell Limited, we are basically engaged in the business of construction for government and semi-government authorities such as buildings, quarters, roads, bridges, airports, godowns, hospitals, etc and works for private bodies for construction of industrial buildings, residential & commercial complex, townships, health care centres and institutional campus with all related utility services. The company is also engaged in the business of real estate development.

Note 2: Notes to the Balance Sheet as at 31stMarch 2013 and Profit and Loss Account for the year ended on that date.

A. Contingent Liabilities not provided for:

(Rs. In Lakh) Sr. As at 31st March As at 31st March Particulars No. 2013 2012

(i) Performance Guarantees given by banks on behalf 1,605.02 802.72 of the company

(ii) Income Tax Proceedings 175.86 175.86

(Income Tax Department has filed appeal with ITAT f or Block Period from 01/04/96 to 09/10/2002)

Total 1,780.88 978.58



The company does not expect any future outflow in respect of above mentioned contingent liabilities. Provisions are made in the accounts in respect of those contingencies which are likely to be materializing into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in Financial Statement.

B. Disclosure required under the Micro, Small and Medium Enterprises Development Act, 2006:

The company has not maintained the records and details of its suppliers regarding their status as Micro, Small and Medium Enterprises as defined under "Micro, Small and Medium Enterprises Development Act, 2006 ". Since the details are not available in this regards it is not possible for us to give necessary disclosures required.

C. Disclosure pursuant to Accounting Standard (AS) 5 Net Profit or loss for the period, Prior period It ems & changes in Accounting Policies:

During the current year the company has credited to profit & loss account profit on sale of fixed asset (Rs. 78,517/-) & profit on sale of Investment in subsidiaries ( Rs. 28,20,130/-)

D. The company has credited to the profit and loss account Rs. 10,01,701/- being the excess provision of Income Tax for the Previous Year. Company has also debited Rs. 4,21,773/- to profit and loss account being assessment dues for financial year 2009-10. The Extraordinary item of Rs. 9,51,552/- (Rs. 59,54,403/- Previous year) in profit & Loss reflects various donations made by the company.

E. The Previous year figures are regrouped and rearranged wherever necessary, to confirm with current year''s presentation.

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Mar 31, 2012

Note 1 : General Corporate Information

At Prakash Constrowell Limited, we are basically engaged in the business of construction for government and semi- government authorities such as buildings, quarters, roads, bridges, airports, godowns, hospitals, etc and works for private bodies for construction of industrial buildings, residential & commercial complex, townships, health care centres and institutional campus with all related utility services. Company also undertakes land development activities.

The Company operates its business mainly in the State of Maharashtra, Karnataka, Uttar Pradesh and Andhra Pradesh. The Company recently in the month of October, got listed on both the Stock Exchanges; viz BSE and NSE. The spectrum of work of Company has enhanced since then.

Note 27: Notes to the Balance Sheet as at March 31st, 2012 and Profit and Loss Account for the year ended on that date.

A. Contingent Liabilities not provided for:

Sr. No. Particulars As at March 31st, 2012 As at March 31st ,2011

Performance Guarantees given by banks on behalf of (i) 8,02,71,553.00 6,90,99,611.00 the company

(ii) Income Tax Proceedings 1,75,86,467.00 1,75,86,467.00

Total 9,78,58,020.00 8,66,86,078.00

The company does not expect any future outflow in respect of above mentioned contingent liabilities. Provisions are made in the accounts in respect of those contingencies which are likely to be materializing into liabilities after the year end, till the finalisation of accounts and have material effect on the position stated in Financial Statement.

D. Disclosure required under the Micro, Small and Medium Enterprises Development Act,2006:

The company has not maintained the records and details of its suppliers regarding their status as Micro, Small and Medium Enterprises as defined under “Micro, Small and Medium Enterprises Development Act, 2006 “. Since the details are not available in this regards it is not possible for us to give necessary disclosures required.

E. Public Issue of equity shares

During the year, the company issued 43,47,826 equity shares having a face value of Rs. 10/- per share at a price of Rs. 138/- (including share premium of Rs. 128/-) through an initial public offering.

Out of total proceeds aggregating Rs. 59,99,99,988 sum of Rs. 4,34,78,260/- was credited to share capital account and the balance amount of Rs. 55,65,21,728/- was credited to Securities Premium Account. Total public issue expense amounts to Rs. 591.32 lacs. The company expects to derive the economic benefit from the public issue expense, and expenditure is deferred and balance is shown under the head Other non current assets.

F. Disclosure pursuant to Accounting Standard (AS) 7 Construction Contracts:

The stage of completion of contract is determined as the proportion that contract costs are incurred for execution of work to the estimated total contract costs as on reporting date. Revenue is recognised in percentage of stage of completion.

Expected variations in works contract, claims and incentive payments are included in contract revenue only when revenue is certain and capable of being measured reliably. Figures disclosed above are only relating to contracts in progress.

Calculation of construction cost is based on accounting estimate. There are deviations in some instances in accounting estimate from last year as compared to this year. Same are dealt with while recognising revenue as per Accounting Standard 7.

H. Disclosure pursuant to Accounting Standard (AS) 17 Segment Reporting :

i) Primary Segment:

The company''s operations predominantly relate to Engineering, Contracting and procurement segment which have been identified as primary reporting segments. There are no other primary reporting segments. Geographical segments are secondary segments. Company does not have any reportable segment for the year as per Accounting Standard, segment information for previous year is provided herewith.

M. The company has charged to the profit and loss account Rs. 17,37,612/- being the short provision of Income Tax for the Previous Year. The company has charged to the profit and loss account Rs. 1875948 being expenses incurred for issue of equity shares to public last year. Amount being deferred expenses and written off wrongly now adjusted this year against miscellaneous expenses to the extent written off.

The Extraordinary item of Rs. 5954403/- in profit & Loss for Financial year 2011-12 reflects various donations made by the company and Rs.13192633/- in profit & loss Account for Financial year 2010-11 reflects Revaluation reserve (Rs. 13477971.38) written back & donations (Rs. 285338).

N. The Previous year figures are regrouped and rearranged wherever necessary, to confirm with current year''s presentation.