Notes to Accounts of B L Kashyap & Sons Ltd.

Mar 31, 2023

Provisions & Contigent Liabilty

Provisions for legal claims, service warranties are recognised when the Company has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect
to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as interest expense.

2.19 Employee benefits

(i) Employee benefits

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees'' services
up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit obligations in the balance sheet.

(ii) Post employment benefits

The Company operates the following statutory post-employment schemes:

(a) defined benefit plans such as gratuity and

(b) defined contribution plans such as provident fund and superannuation fund
Gratuity obligations

The liability recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined
benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by independent
actuaries using the projected unit credit method.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair
value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised
in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the
statement of changes in equity and in the balance sheet.

Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognised
immediately in profit or loss as past service cost.

Defined contribution plans

The Company pays provident fund contributions to publicly administered provident funds as per local regulations. The
Company has no further payment obligations once the contributions have been paid. The contributions are accounted for as
defined contribution plans and the contributions are recognised as employee benefit expense when they are due.

(iii) Bonus plan

The Company recognises a liability and an expense for bonus. The Company recognises a provision where contractually
obliged or where there is a past practice that has created a constructive obligation.

2.20 Contributed equity

Equity shares are classified as equity

Incremently cost directly attributable to the issue of new shares or options are shown in equity as a deduction net of tax, from
the proceeds

2.21 Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of
the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

2.22 Earning per share

(i) Basic Earning per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus
elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted Earning per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion
of all dilutive potential equity shares.

2.23 Statement of cash flows

The company''s statements of cash flows are prepared using the Indirect method, whereby profit for the period is adjusted for
the effect of transaction of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment
and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing
and financing activities of the Company are segregated.

Cash and cash equivalents comprise cash and bank balances and short-term fixed bank deposits that are subject to an
insignificant risk of changes in value. These also include bank overdrafts which forms an integral part of the company''s cash
management.

2.24 Events after reporting date

Where events occurring after the balance sheet date provide evidence of conditions that existed at the end of the reporting
period, the impact of such events is adjusted with the IND AS financial statements. Otherwise, events after the balance sheet
date of material size or nature are only disclosed.

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Mar 31, 2018

Note 1 General Information

B.L. Kashyap And Sons Ltd {CIN: L74899DL1989PLC036148} (BLK) is a public limited company domiciled in India and with registered office at 409, 4th Floor, DLF Tower-A, Jasola, New Delhi-110025 , incorporated under the provisions of the Companies Act, 1956. Its Equity Share are listed on Bombay stock Exchange and National Stock Exchange of India Limited.Founded in 1978 as a partnership firm, BLK owes its success to Shri B L Kashyap, a veteran construction professional. Incorporated as a limited company on 08.05.1989. Today, BLK is one of India’s most respected construction and infrastructure development company with a pan India presence. Our service portfolio extends across the construction of factories manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels.

Basis of Preparation

(a) Statement of compliance

These standalone Ind AS financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 notified under Section 133 of the Companies Act, 2013 (the Act) and other relevant provisions of the Acts amended from time to time. The financial statements up to and for the year ended 31 March 2017 were prepared in accordance with the Companies (Accounting Standards) Rules, 2006 notified under Section 133 of the Act and other relevant provisions of the Act. As these are the Company’s first financial statements prepared in accordance with Indian Accounting Standards (Ind AS), Ind AS 101, First Time Adoption of Indian Accounting Standards has been applied. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the company is provided in Note 35.

These standalone Ind AS financial statements were authorized for issue by the Company’s Board of Directors on 19th May 2018. Details of the Company’s Accounting Policies are included in Note 2.

(b) Functional and presentation currency

These standalone Ind AS financial statements are presented in Indian Rupees (INR), which is the Company’s functional currency. All the financial information have been presented in Indian Rupees (INR) all amounts have been rounded-off to the nearest Rupees, unless otherwise stated

(c) Basis of Measurement

The standalone Ind AS financial statements have been prepared on a historical cost basis, except for the following: - defined benefit plans - plan assets measured at fair value

(d) Use of estimates and judgments

The preparation of the standalone Ind AS financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected thereby.

The areas involving critical estimates and judgments are:

(i) Estimation of Contract Cost for Revenue recognition (Refer Note -30)

(ii) Estimation of useful life of property, Plant and Equipment and Intangible (refer point 2.12 & 2.14)

(iii) Estimation of provision for defect liability period and liquidated damages, if any (refer note 26 )

(iv) Estimation of defined benefit obligation (refer note 28)

(v) Estimation of recognition of deferred tax assets, availability of future taxable profit against which tax losses carried forward can be used (refer note -6)

(vi) Impairment of financial assets (refer note -22)

(e) Measurement of fair values

The Company’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Company has an established control framework with respect to the measurement of fair values. The finance team has overall responsibility for overseeing all significant fair value measurements, including Level 3 fair values.

They regularly review significant unobservable inputs and valuation adjustments. If third party information is used to measure fair values then the finance team assesses the evidence obtained from the third parties to support the conclusion that such valuation meet the requirements of Ind AS including the level in the fair value hierarchy in which such valuations could be classified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follow:

Level 1: quoted prices ( unadjusted ) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Input for the assets or liability that are not based on observable market data ( unobservable inputs)

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an assets or a liability fall into different level of the fair value hierarchy. then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The future economic benefits embodied in the all items of the despicable assets owned by the Company as per note no 3 and 4 which are expected to be consumed from year to year over their respective balance lives, shall be same from year to year. Therefore, the method of charging depreciation has been changed from written down value to straight line method to reflect the true consumption pattern of the depreciable assets resulting in change in the amount of depreciation charged from Rs. 144,976,689/-(Rs. 178,206,557/-) to Rs. 94,518,727/- (‘103,295,924). Consequently, the carrying value of depreciable assets also been changed from Rs. 711,722,212/- (Rs. 792,558,207/-) to Rs. 837,090,807/- ( Rs. 867,468,840/-). Consequently, the charge of depreciation is lower by Rs. 50,457,962/- (Rs. 74,910,633/-) and profit before tax is higher by the above amount in respective financial years.

Property, Plant and equipment have been pledged as security for borrowings, refer note 11a for detail.

* In accordance with section 186 of the Act read with companies( Meeting of Board and its Power) Rules ,2014 the details of investments made by the Company as at the reporting dates are stated above . There have been no addition or deletions during the years ended 31 March, 2017 and 31 March, 2018

Rs. 10,40,92000/-), non-current loans amounting to Rs. 22,83,29,371/- (31 March,2017: Rs. 22,04,09,221/-; 1 April, 2016: Rs. 20,79,63,269/-) and other current financial assets amounting to Rs. 6,56,89,145/- (31 March, 2017: Rs. 3,24,12,607/-; 1 April, 2016: Rs. 4,00,04,836/-) in B L K Lifestyle Ltd, a subsidiary. While such entity has been incurring losses and the net-worth of Entity as at 31 March 2018 has been fully eroded, this entity is operating at at much lower then its installed capacity due to current market situation caused by low private investment and is expected to achieve adequate profitability on revival of private investment in coming years. The net-worth of this subsidiary does not represent its true market value as the value of the underlying assets/installed capacity, based on valuation report of an independent valuer, is substantially higher. Therefore, based on certain estimates like future business plans, growth prospects and other factors, the management believes that the realizable amount of this subsidiary is substantially higher than the carrying value of the non-current investment, non-current loans and other current financial assets due to which these are considered as good and recoverable.

The Company, as at 31 March, 2018 has a non-current investment amounting to Rs. 2,05,00,000/- (31 March, 2017: Rs. 2,05,00,000/-; 1 April, 2016: Rs. 2,05,00,000/-), non-current loans amounting to Rs. 4,21,17,20,390/- (31 March, 2017: Rs. 4,10,78,56,622/-; 1 April, 2016: Rs. 3,91,30,71,122/-) and other current financial assets amounting to Rs. 39,05,23,303/- (31 March, 2017: Rs. 39,18,08,040/-;1 April, 2016: Rs. 38,71,99,802/-) in Soul Space Project Ltd, a subsidiary (97.91%), which is holding 100% in SSHL (Soul Space Hospitality Limited) and 100% in SSRL ( Soul Space Reality Limited). While SSPL has been incurring losses, the underlying projects are expected to achieve adequate realizable value. The net-worth of this subsidiary does not represent its true market value as the value of the underlying investments/ assets, based on valuation report of an independent valuer, is higher. Therefore, based on certain estimates like future business, growth prospects and other factors, the management believes that the realizable amount of the subsidiary is higher than the carrying value of the investments, non-current loans and other current financial assets due to which these are considered as good and recoverable.

For terms and conditions of receivables due from related parties, refer note 32 of standalone Ind AS financial statements.

For details of borrowings secured by receivables, refer note 11(a), 11 (b) & 32 of Standalone Ind AS Financial Statements.

The Company exposure to credit and currency risks, and loss allowances related to receivables are disclosed in note 32 of standalone Ind AS financial statements.

Debtors amounting to Rs. 1,05,39,85,406/- (As On 31.03.2017 Rs. 2,24,88,84,798/- and As On 01.04.2016 Rs. 2,27,71,50,150/-) are outstanding for more than one year.

Sundry Debtors as at 31 March, 2018 include debtors aggregating to Rs. 35,93,10,871 (31 March 2017 Rs. 39,97,20,296/- and 1 April 2016 Rs. 17,29,57,697/-). These represent amounts of work done and retention which have been disputed by the Clients. However, the matters has been referred to arbitration. The management is reasonably confident of establishing its claims for the said amount supported by proper evidences and consequently no change have been made to the values and classification of these amounts in the financial statements.

Sundry Debtors as at 31 March, 2018 include ‘ Nil (31 March, 2017 Rs. 3,87,87,898/- and 1 April, 2016 Rs. 16,30,40,701/-) it represents amount recoverable under a contract foreclosed by the client(s).

Long Term Loans and Advances given to subsidiary and other companies which are recoverable on demand have been classified as Long Term Loans and Advances as the management is of the view that there is no likelihood of asking for their repayment, atleast within next 12 months.

The Company has only one class of equity shares having par value of INR 1/- per share. Each holder of equity shares is entitled to one vote per share. The dividend, if any, is declared and paid on being proposed by the Board of Directors after the approval of the Shareholders in the ensuing Annual General Meeting.

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 liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

Terms of issue of share warrants:

All Share Warrants bear no interest or dividend and each Share warrant is entitled to one equity share of ‘1/- each on payment total of Rs. 33.33 (inclusive of Rs. 32.33 towards premium) per Share Warrant will on exercise of conversion right by the holder on or before 8th February, 2019. The Equity Shares to be issued on conversion of such Share Warrants shall not be sold / transferred / hypothecated for a period of one year from the date of trading approval from the stock exchanges.

Nature and purpose of Reserves

(i) Securities Premium Reserve

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act

(ii) General Reserve

General reserve is created out of surplus of profit and loss

A. CORPORATE DEBT RESTRUCTURING (CDR)

Subsequent to the approval of Restructuring package by Corporate Debt Restructuring (CDR) Empowered Group after duly recommended by Independent Evaluation Committee (IEC) on 31.12.2014 the company has complied with all the critical conditions. The participative CDR Lenders were State Bank of India, Canara Bank, ICICI Bank, Oriental Bank of Commerce, Indusind Bank, Syndicate Bank and the Non CDR Members were Yes Bank Ltd, SREI Equipment Finance Ltd, Standard Chartered Bank Ltd and HDFC Bank In terms of LOA ( Letter of Approval) and MRA ( Master Restructuring Agreement) dated 31.12.2014 , the company’s debts have been restructured with longer repayment schedule stretching up to FY 2019-20 with lower interest rates linked to Base Rates of respective Banks. However the CDR lenders would have a right of recompense for their sacrifices at the time of Company’s exit from CDR. The total amount of recompense works out to Rs. 69.50 Cr during the full

tenure of the CDR, of which the sacrifice amount for the period upto 31 March 2018 is Rs. 42.55 Crores( 31 March 2017 is Rs. 33.61 Crores and 1April 2016 Rs. 23.93 Crores) However as per RBI directives dated 12.02.2018 in respect of Resolution of stressed assets all the restructuring schemes such as CDR, SDR, ,S4A etc. stands withdrawn.

Note A.

a) First Pari Passu Charge on the entire fixed assets of the company in terms of CDR Package.

b) First Pari Passu Charge on the entire Current Assets of the company in terms of CDR Package.

c) Pledge of Un-encumbered share holding of B. L. Kashyap and Sons Limited in favour of lenders by the Whole Time Directors.

d) Unconditional and Irrevocable Personal Guarantee of Mr. Vinod Kashyap, Mr. Vineet Kashyap and Mr. Vikram Kashyap.

e) Srei Equipment Finance Ltd - Loan secured against creation/modification of equitable mortgage by way of deposit of title deed of third party property and Personal Guarantee of Mr. Vineet Kashyap, Whole Time Director.

f) Canara Bank Credit Facility is secured by way of Equitable mortgage of third party property of M/s Ahuja Kashyap Malts Private Limited

g) Repayment Terms

Term Loan (Restructured) Under CDR - 2% of Loan amount in quarterly installments in Financial Year 2016-17, 50% of The loan amount in quarterly installments in Financial Year 2017-18, 44% of Loan amount in in quarterly installment in Financial Year 2018-19 and 4% of the loan amount in quarterly installment in Financial Year 2019-20

Corporate Loans under CDR repayable in 14 quarterly structured installments beginning form 30.06.2016 to 31.03.2018.

Working Capital Term Loans under CDR repayable in 8 quarterly structured installments beginning form 30.06.2016 to 30.09.2019.

Funded Interest Term Loan (FITL) - 91.39% of Loan amount in March 2017 and 8.61% of Loan Amount on Sept 2017 Loan from SREI is to be paid in 14 quarterly installments and interest @11.50 to be paid monthly

The above breakup of total loans of Rs. 1,96,59,27,523/- in aggregate, out of which, an amount of Rs. 39,54,57,456/- is shown under Non -Current loans as per Note 11a and the balance of Rs. 1,57,04,70,067/- is shown as part of the current maturities of Long Term Debt under Other Current Financial Liabilities as per Note 11d in terms of requirements of Schedule III to the Companies Act, 2013

(a) Secured Loans

1. Working Capital Facility From Banks

(Secured by way of first pari passu charge on Current Assets of the company and second pari passu charge on Fixed Assets of the Company except those specifically charged to Financial Institutions/banks/others for term Loans of machinery & vehicles and Personal Guarantees of whole time Directors)

The Sundry Creditors Trade (Long Term) payable are those Sundry Creditors which are outstanding for a period of more than one year and hence fall outside the operating cycle of the company.

Note-2 Impairment of assets

The management is of the opinion that as on the balance sheet date, there are no indications of a material impairment loss on Property, Plant and Equipment, hence the need to provide for impairment loss does not arise.

Note-3 Contingent liability in respect of

The company has not provided for penal and overdue interest on the Outstanding Loans as on 31st March 2018. Pending Settlement The aggregate of such panel and overdue interest of Rs. 1,60,63,304/

- Differential amount of Interest sacrificed by Bankers pursuant to scheme of Corporate Debt Restructuring (Refer Note 11a) amount Rs. 42.55 Cr as Bankers have a right of recompose of sacrifices.

- Additional tax liability, if any pending assessments is indeterminate.

Note 4

In the management opinion, the assets other than Property, Plant and Equipment’s and Non-Current Investments have a realisable value, in the ordinary course of business, approximately of the amount at which they are stated in these standalone In AS financial statements.

Provision for defect liability period - The Company has made provision for defect liability period based on the defect liability period mentioned in contracts. The provision is bases on the estimates made from historical data associated with similar project. The Company expects to incur the related expenditure over the defect liability period

Provision for onerous contracts - The Company has a contract where total contract cost exceeds the total contract revenue. In such situation as per In AS 11 the Company has to provide for these losses. The provision is based on the estimate made by the management

Note-5 Retirement Benefits

a. Defined Contribution Plan

The Company makes contribution towards provident fund and superannuation fund which are defined contribution retirement plans for qualifying employees. The provident fund plan is operated by the regional provident fund commissioner. Under the schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes to fund benefits.

The Company recognised Rs. 7,74,31,276 (31 March, 2017: Rs. 6,89,54,489) for Provident Fund contributions in the Statement of Profit & Loss. The contribution payable to these plans by the Company are at rates specified in the rules.

b. Defined Benefit Plan

The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the projected unit credit method as per actuarial valuation carried out at balance sheet date.

The following table sets out the funded status of the gratuity plan and the amount recognised in the Company’s Standalone Ind AS financial statements as at 31 March, 2018

Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Note: Figures in bracket represents amount of previous year values

Terms and conditions of transactions with related parties - The sales to and purchases from related parties are made on terms equivalent to those that prevails in arm’s length transactions. There have been no guarantees provided or received for any related party receivables or payables. For year ended 31 March 2018, the Company has not recorded any impairment of receivables relating to the amounts owned by related parties (31 March 2017: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Advances taken from clients herein are Gross amount before Adjustment of Trade Receivables. All outstanding balances with related parties are unsecured. Figures shown in bracket represents corresponding amounts of previous year.

Note-6 Micro and small enterprises

Under the Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED’) which came into force from 2 October 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis or the information and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the Micro, Small mid Medium Enterprises Development Act, 2006 as set out in the following disclosures*

The disclosure in respect of the amount payable to enterprises which have provided goods and services to the Company and which qualify under the definition of micro and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006 has been made in the standalone Ind AS financial statement as at March 31, 2018 based on the information received and available with the Company. On the basis of such information, credit balance as at March 31, 2018 of such enterprises is INR2,39,18,675 (31 March 2017: INR 1,69,87,747/- ; 1 April 2016: INR 1,56,71,312/-. Auditors have relied upon the information provided by the Company.

Note-7 Financial instruments - Fair values and risk management Risk management framework

The business of the Company involves market risk, credit risk and liquidity risk. Among these risks, market risk is given paramount importance so as to minimize its adverse affects on the Company’s performance. The Company has policies and process to identify, evaluate and manage risks and to take corrective actions, if required, for their control and mitigation on continuous basis. And regular monitoring of the said policies and process for their compliance is responsibility of the management under the supervision of the Board of Directors and Audit Committee. The policies and process are regularly reviewed to adapt them in tune with the prevailing market conditions and business activities of the Company. The Board of Directors and Audit Committee are responsible for the risk assessment and management through formulation of policies and processes for the same.

Credit risk

Credit risk is part of the business of the Company due to extension of credit in its normal course having a potential to cause financial loss to the Company. It mainly arises from the receivables of the Company due to failure of its customer or a counter party to a financial instrument to meet obligations under a contract with the Company. Credit risk management starts with checking the credit worthiness of a prospective customer before entering into a contract with him by taking into account, his individual characteristics, demographics, default risk in his industry. A customer’s credit worthiness is also continuously is checked during the period of a contract. However, risk on trade receivables and unbilled work in progress is limited as the customers of the company are either government promoted entities or have strong credit worthiness. In order to make provisions against dues from the customers other than government promoted entities, the Company takes into account available external and internal credit risk factors such as credit rating from credit rating agencies, financial condition, aging of accounts receivables and the Company’s historical experience for customers. However, in Company’s line of business, delay in meeting financial obligation by a customer is a regular feature especially towards the end of a contract and is as such factored in at the time of initial engagement.

The following table gives details in respect of contract revenues generated from the top customer and top 5 customer for the year ended

^A The Company has written off Rs. 20,67,47,928/- towards amounts not recoverable during the year ended 31 March, 2018 (31 March , 2017- Nil)

Expected credit loss/ lifetime credit loss assessment for customers as at 1 April 2016, 31 March, 2017 and 31 March, 2018

Trade and other receivables are reviewed at the end of each reporting period to determine expected credit loss other those already incurred, if any. In the past, trade receivables, in normal course, have not shown any trend of credit losses which are higher than in the industry or as observed in the company’s history. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk. The impairment loss at March 31, 2018 relates to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances.

Cash and Cash equivalents

The Company held cash and cash equivalents with credit worthy banks of Rs. 9,16,72,601/- and Rs. 7,12,92,607/- & Rs. 6,84,09,802/as at 31 March 2018, 31 March 2017 and 1 April, 2016 respectively. The credit worthiness of such banks is evaluated by the management on an ongoing basis and is considered to be good.

Guarantees

The Company’s policy is to provide financial guarantee only for its subsidiaries liabilities. At 31 march 2018 and 31 March 2017, the Company has issued a guarantee of Rs. 84,00,00,000/- to certain banks in respect of credit facilities granted to subsidiaries.

Security deposits given to lessors

The Company has given security deposit to lessors for premises leased by the Company as at 31 March 2018 and 31 March 2017. The company monitors the credit worthiness of such lessors where the amount of security deposit is material.

Loans, investments in Subsidiaries Companies

The Company has given unsecured loans to its Subsidiaries as at 31 March, 2018 Rs. 4,46,91,64,991/- and 31 March, 2017 Rs. 4,35,63,07,211/-. The Company does not perceive any credit risk pertaining to loans provided to subsidiaries or the investment in such subsidiaries.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired.

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 its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has access to funds from loans from banks. The Company also constantly monitors funding options available in the debt and capital markets with a view to maintaining financial flexibility.

As of 31 March 2018, the Company had working capital (Total current assets - Total current liabilities) of INR 72,78,48,454/including cash and cash equivalents of INR 9,16,72,601, investments in term deposits (i.e., bank certificates of deposit having original maturities of less than 3 months) of INR NIL. As of 31 March 2017, the Company had working capital of INR 6,24,51,636 including cash and cash equivalents of INR 7,12,92,607/-, investments in term deposits (i.e., bank certificates of deposit having original maturities of more than 3 months) of INR NIL. As of 1 April 2016, the Company had working capital of INR 1,78,38,55,915/-, including cash and cash equivalents of INR 8,37,85,96,279/- , investments in term deposits (i.e., bank certificates of deposit having original maturities of less than 3 months) of NIL.

Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates, foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long-term debt. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

Currency Risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the entity.

The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange and interest rate exposure. The Company does not use derivative financial instruments for trading or speculative purposes.

Exposure to currency risk

The summary quantitative data about the Company’s exposure to currency risk as reported to the management of the Company is as follows:

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to market risk for changes in interest rates relates to fixed deposits and borrowings from financial institutions.

For details of the Company’s Current Borrowings and Non Current Borrowings, including interest rate profiles, refer to Note 11a & 11b of these Ind AS financial statements.

Interest rate sensitivity - fixed rate instruments

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 flow will fluctuate because of a change in market interest rates.

Interest rate sensitivity - variable rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased equity and profit or loss by amounts shown below. This analyses assumes that all other variables, in particular, foreign currency exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

A Accounting Classification and fair values

The following table shows the carrying amounts of financial assets and financial liabilities measured at fair value, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the carrying amount is a reasonable approximation of fair value.

B measurement of fair value

Valuation techniques and significant unobservable inputs

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values for financial instruments measured at fair value in the statement of financial position as well as the significant unobservable inputs used

Note-8 Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company operates a hotel in Mussourie, however, revenue/profit/assets from/of the said hotel business is much lower than 10% of the total revenue/profit/assets of the Company and hence, it is not a “Reportable Segment” as per Para 13 of the Ind AS 108. The company operates in only one geographical segment viz. India

Note-9 Capital management

The Company’s objectives when managing capital are to:-

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital.

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company monitors capital using a ratio of ‘net debt’ (total borrowings net of cash & cash equivalents) to ‘total equity’ (as shown in the balance sheet).

The Company’s policy is to keep the ratio below 2.00. The Company’s net debt to equity ratios are as follows.

Note-10 Reconciliations between IGAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity and total comprehensive income for prior periods. The following tables represent the reconciliations from IGAAP to Ind AS.

Note-11

Previous year’s figures have been regrouped and / or rearranged wherever necessary

Note-12

The comparative financial information as at 31 March 2017 and 1 April 2016 and for the year ended 31 March 2017 included in these standalone Ind AS financial statements are based on the previously audited standalone financial statements for the said periods prepared in accordance with the Companies (Accounting Standards) Rules, 2006 and other accounting principles generally accepted in India are audited by previously auditors. These audited standalone financial statements audited under previous GAAP by other auditors are adjusted for the differences in the accounting principles adopted by the Company on transition to Ind AS, which have been audited by us.

General Information and Significant Accounting Policies 1 & 2

Other Notes on Accounts 22-37

The Notes are an integral part of these financial statements

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Mar 31, 2017

Note 1- Other Notes on Accounts Contingent Liabilities :

(b) The company has not provided for penal and overdue interest on the Outstanding Loans as on 31st March, 2017.Pending Settlement The aggregate of such panel and overdue interest of Rs. 13,73,38,687.

(c) Differential amount of Interest sacrificed by Bankers pursuant to scheme of Corporate Debt Restructuring (Refer Note 6A) amount Rs. 33.61 Cr as Bankers have a right of recompose of sacrifices.

(d) Additional tax liability, if any pending assessments is indeterminate.

(e) No disputed/legal cases which may have any material and adverse financial implication pending against the company.

2. Guarantees :

(a) Liability in respect of Bank Guarantees is Rs, 102,40,54,450 (Previous year Rs.118,12,50,798)

(b) Corporate Guarantees'' of Rs, 175,22,61,985 (Previous year Rs, 177,52,12,172) in favour of:

- Clients Rs, 33,22,61,985

-On behalf of Subsidiaries Rs, 142,00,00,000

3 Other Money for which the Company is liable :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs, 4,18,81,261.

Related Party Disclosure

4. List of Related Parties

A. Enterprises in which the Company has control Relationship

i Security Information Systems (India) Ltd. Wholly owned subsidiary

ii B.L.K. Lifestyle Ltd. Wholly owned subsidiary

iii B.L.K. Infrastructure Ltd. Wholly owned subsidiary

iv Soul Space Projects Ltd. Subsidiary

v Soul Space Realty Ltd Step Down Subsidiary

vi Soul Space Hospitality Ltd Step Down Subsidiary

B. Other related Parties

(i) Joint Ventures BLK NCC Consortium

BLK-BILIL Consortium

(ii) Associates Status

(a) B.L.K. Financial Services Limited Limited Company

(b) B.L.K. Securities Private Limited Private Limited Company

(c) Ahuja Kashyap Malt Pvt. Ltd. Private Limited Company

(d) Bezel Investments & Finance Pvt. Ltd. Private Limited Company

(e) B.L. Kashyap & Sons Partnership Firm

(f) Kasturi Ram Herbal Industries Partnership Firm

(g) Aiyana Trading Pvt. Ltd. Private Limited Company

(h) Chrysalis Trading Pvt. Ltd. Private Limited Company

(i) Chrysalis Realty Projects (P) Ltd Private Limited Company (j) EON Auto Industries Pvt. Ltd. Private Limited Company (k) Suryakant Kakade & Soul Space Partnership Firm

(l) B L Kashyap & Sons Software Pvt.Ltd Private Limited Company

(m) Behari Lal Kashyap (HUF) HUF

(n) Becon (I) Partnership Firm

(0) Baltic Motor Private Limited Private Limited Company

(iii) Key Management Personnel

(a) Mr. Vinod Kashyap Chairman

(b) Mr. Vineet Kashyap Managing Director

(c) Mr. Vikram Kashyap Joint Managing Director

(iv) Relatives of Key Management Personnel

(a) Mr. Mohit Kashyap Son of Mr.Vinod Kashyap

(b) Ms. Malini Kashyap Goyal Daughter of Mr.Vinod Kashyap

(c) Mr. Saurabh Kashyap Son of Mr.Vineet Kashyap

(d) Ms. Anjoo Kashyap Wife of Mr. Vinod Kashyap

(e) Ms. Aradhana Kashyap Wife of Mr. Vineet Kashyap

(f) Ms. Amrita Kashyap Wife of Mr. Vikram Kashyap

(g) Ms. Nitika Nayar Kashyap Wife of Mr.Mohit Kashyap

(h) Ms. Shruti Choudhari Daughter of Mr. Vineet Kashyap

(1) Ms. Sanjana Kashyap Kapoor Daughter of Mr. Vikram Kashyap (j) Mr. Sahil Kashyap Son of Mr. Vikram Kashyap

(k) Ms. Mayali Kashyap Wife of Mr. Saurabh Kashyap

In accordance with "Accounting Standard 22" the Company has recognized the deferred tax Asset as during the year amounting to Rs, (3,72,97,679) and has charged the same to statement of Profit & Loss. (Previous year deferred tax Asset Rs, 1,49,47,151)

5. Balances with the Parties are subject to Confirmations.

.6 In the opinion of the board of directors all its assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

7. Additional information pursuant to Para 5 of Part II of Schedule III to the Companies Act, 2013 to the extent applicable.

8. The following table sets out the status of the gratuity/leave encashment plan and other benefits as required under the revised Accounting standard -15 issued by The Institute of Chartered Accountants of India.

9. Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company operates a hotel in Mussourrie and also trades in residential flats. However, these are not "Reportable Segments" as per clause 27 of AS17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India.

11 Disclosure pursuant to Accounting Standard 7 as prescribed under Companies Accounting Standards Rules on Accounting in respect of the contracts in progress at the reporting date:-

A. CORPORATE DEBT RESTRUCTURING (CDR)

Subsequent to the approval of Restructuring package by Corporate Debt Restructuring (CDR) Empowered Group after duly recommended by Independent Evaluation Committee (IEC) on 31.12.2014 the company has complied with all the critical conditions. The participative CDR lenders were State Bank of India, Canara Bank, ICICI Bank, Oriental Bank of Commerce, Indusind Bank, Syndicate Bank and the Non CDR members were Yes Bank Ltd, SREI Equipment Finance Ltd, Standard Chartered Bank Ltd and HDFC Bank In terms of LOA (letter of approval) and MRA ( Master Restructuring Agreement) dated 31.12.2014, the company''s debts have been restructured with longer repayment schedule stretching up to FY 2019-20 with lower interest rates linked to Base rates of respective Banks. However the CDR lenders would have a right of recompense for their sacrifices at the time of Company''s exit from CDR. The total amount of recompense works out to Rs 69.50 cr during the full tenure of the CDR of which the sacrifice amount for the period up to March 2017 is Rs 33.61 cr as per CDR LOA.

d) Unconditional and Irrevocable Personal Guarantee of Mr. Vinod Kashyap, Mr. Vineet Kashyap and Mr. Vikram Kashyap.

e) Loan from Union Bank of India is secured by way of first pari passu charge on Fixed Assets of Company except those Specifically charged to financial Institution/Bank for term loans of machinery & vehicle and personal Guarantee of whole time Directors . Union Bank of India has not signed the MRA under CDR and has an option of recovery by invoking third party security.

f) HDFC Bank - Machinery Loan secured against hypothecation of specific plant and machinery financed by HDFC Bank & Personal Guarantee of whole time director.

g) HDFC Bank - Vehicle Loan secured against hypothecation of Specific Cars Financed by HDFC Bank and personal Guarantee of whole time Directors.

h) Srei Equipment Finance Ltd - Loan secured against creation/modification of equitable mortgage by way of deposit of title deed of third party property and personal guarantee of Mr. Vineet Kashyap whole time Directors.

i) Standard Chartered Bank and Yes Bank- Security creation by way of charge sharing is under process.

j) Canara Bank Credit Facility is secured by way of Equitable mortgage Tractions of third party property M/s Ahuja Kashyap Malts Private Limited.

l) Repayment Terms

Term Loan (Restructured) Under CDR - 2% of Loan amount in quarterly installments in Financial Year 2016-17, 50% of The loan amount in quarterly installments in Financial Year 2017-18,44% of Loan amount in in quarterly installment in Financial Year 201819 and 4% of the loan amount in quarterly installment in Financial Year 2019-20.

Corporate Loans under CDR repayable in 14 quarterly Structured installments beginning from 30.06.2016 to 31.03.2018.

Working Capital Term Loans under CDR repayable in 8 quarterly structured installments beginning from 30.06.2016 to 30.09.2019

Funded Interest Term Loan (FITL) - 91.39% of Loan amount in March 2017 and 8.61% of Loan Amount on Sept 2017.

The above breakup of total loans of '' 2,72,02,99,338 in aggregate, out of which, an amount of '' 55,58,14,991 is shown under Long Term loans as per Note 6 and the balance of '' 2,16,44,84,347 is shown as part of the current maturities of Long term debt under other Current Liabilities as per Note 11 in terms of requirements of schedule III to the Companies Act, 2013.

(a) Refer Note 6A & B

(b) Secured Loans

1. Working Capital Facility From Banks

(Secured by way of first pari passu charge on Current Assets of the company and Second pari passu charge on Fixed Assets of the Company except those specifically charged to Financial Institutions/banks/others for term Loans of machinery & vehicles and Personal Guarantees of whole time Directors)

935648 Nos. Equity shares of Soul Space Projects Limited have been pledged in favor of bankers for obtaining loan by Soul Space Projects Limited (Subsidiary)

In respect of losses in Subsidiary Companies other than Security Information Systems India Ltd and B L K Lifestyle Ltd for which provision for diminution in the value of Investments has not been made, the management is of the view that from the current year onwards these Subsidiaries will start making profits and situation is expected to improve in near future.

For the purpose of classification of Trade Receivables, the due date has been taken as the date of billing.

Sundry Debtors as at 31st March, 2017 include debtors aggregating to Rs, 3997 Lac (Previous year Rs, 1730 Lac). These represent represents amounts of work done and retention which have been disputed by the Clients. However, the matters has been referred to arbitration. The management is reasonably confident of establishing its claims for the said amount supported by proper evidences and consequently no change have been made to the values and classification of these amounts in the financial statements.

Sundry Debtors as at 31st March, 2017 include Rs, 388 Lac (Previous year Rs, 1630 Lac) it represents amount recoverable under a contract foreclosed by the client.

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Mar 31, 2016

1. Employees Retirement Benefits

The company has accounted for liability towards Gratuity and Leave Encashment on the basis of actuarial valuation.

2. Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration various benefits and disallowances as per the Income Tax Act 1961. Deferred tax in accordance with AS-22 is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originates in one period and is capable of reversal in one or more subsequent periods.

3. Cash Flow Statement

Cash Flows are reported as per the indirect method as specified in the Accounting Standard (AS-3), ''Cash Flow Statement''.

4. Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired.

5. Foreign Currency Transactions

(I) Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency at the date of the transaction

(II) Conversion

Foreign Currency monetary items are reported using the closing rate. Non monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of transaction and nonmonetary items which are carried at fair value or similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

(III) Exchange Difference

Exchange difference arising on settlement of monetary items or on reporting company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

Note 3- Other notes on Accounts Contingent Liabilities :

7. Claims against the company not acknowledged as debts:

(a) Other demands not acknowledged as liability:- (Rs.in Lacs)

Income Tax TDS 35.04

Service Tax 1398.01

Excise Duty 3.50

VAT 335.28

(b) The company has not provided for penal and overdue interest on the Outstanding Loans as on 31st March, 2016. The aggregate of such panel and overdue interest of Rs. 22,351,490/-

(c) Differential amount of Interest sacrificed by Bankers pursuant to scheme of Corporate Debt Restructuring (Refer Note 6A) amount Rs.28.20 Cr as Bankers have a right of recompose of sacrifices.

(d) Additional tax liability, if any pending assessments is indeterminate.

(e) No disputed/legal cases which may have any material and adverse financial implication pending against the company.

8. Guarantees :

(a) Liability in respect of Bank Guarantees is Rs. 1,181,250,798/- (Previous year Rs. 1,303,744,572/-)

(b) Liability in respect of Letter of Credits is Rs. NIL (Previous year Rs. NIL)

(c) Corporate Guarantees'' of Rs. 1,775,212,172/- (Previous year Rs. 2,261,089,672/- ) in favour of:

- Clients Rs. 355,212,172/

- Subsidiaries Rs. 1,420,000,000/-

9. : Other Money for which the Company is liable :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for NIL Previous Year (Rs. NIL)

10. Impairment of Assets

In accordance with the Accounting Standard - 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identified for impairment by the Company during the year.

11. All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or Construction of qualifying assets.

12. Balances with the Parties are subject to Confirmations.

13. In the opinion of the board of directors all its assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

14. Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company operates a hotel in Mussourrie and also trades in residential flats. However, these are not "Reportable Segments" as per clause 27 of AS17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India

15. The Company has paid remuneration of Rs.90,00,000/- to whole time Directors (Previous Year Rs.NIL).

16 Previous year''s figures have been re-grouped, rearranged to make them comparable with figures of current year, wherever considered necessary.

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Mar 31, 2015

Note 1: General Information

B.L. Kashyap And Sons Ltd (BLK) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Founded in 1978 as a partnership firm, BLK owes its success to Shri B L Kashyap, a veteran construction professional. Incorporated as a limited company in 1989. Today, BLK is one of India's most respected construction and infra- structure development companies with a pan India presence. Our service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels.

2.1.1 Guarantees :

(a) Liability in respect of Bank Guarantees is Rs. 130,37,44,572 (Previous year Rs. 142,12,04,208)

(b) Liabiility in respect of Letter of Credits is Rs. NIL (Previous year Rs. NIL)

(c) Corporate Guarantees of Rs. 226,10,89,672 (Previous year Rs. 200,65,81,468) in favour of:-

- Clients Rs. 74,10,89,672

- Subsidiaries Rs. 152,00,00,000

2.2 Impairment of Assets

In accordance with the Accounting Standard - 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identified for impairment by the Company during the year.

2.3 All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or Construction of qualifying assets.

2.4 Balances with the Parties are subject to Confirmations.

2.5 In the opinion of the board of directors all its assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

2.6 Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company operates a hotel in Mussourrie and also trades in residential flats. However, these are not "Reportable Segments" as per clause 27 of AS-17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India.

2.7 The Company has not paid remuneration to Whole-Time Directors (Previous Year Rs. NIL).

2.8 Disclosure pursuant to Accounting Standard-7 as prescribed under Companies Accounting Standards Rules on Accounting in respect of the contracts in progress at the reporting date:-

2.9 Previous year's figures have been re-grouped, rearranged to make them comparable with figures of current year, wherever considered necessary.

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Mar 31, 2014

Note 1: General Information

B.L. Kashyap And Sons Ltd (BLK) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Founded in 1978 as a partnership firm, BLK owes its success to Shri B L Kashyap, a veteran construction professional. Incorporated as a limited company in 1989. Today, BLK is one of India''s most respected construction and infrastructure development companies with a pan India presence. Our service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels.

Note 2- Other Notes on Accounts

Contingent Liabilities :

3.1.1 Claims against the company not acknowledged as debts:

(a) Out of Income Tax demand of Rs. 889,672,882 raised us 153A/143(3) in Assessment proceedings for the year 2002-2003 to 2008-09 & 2010-2011, Rs. 731,084,125 has been deposited/adjusted. The Company has filed appeals before The Commissioner of Income Tax (Appeals) II & III, New Delhi contesting whole of the demand which is based on addition made on the basis of legal issues/technical/adhoc basis.

(b) Other demands not acknowledged as liability:- (Rs. in Lacs)

Income Tax TDS 32.45

Service Tax 13.18

VAT 134.36

(c) Additional Demand of 592.76 Crores from Provident Fund Authorities for the period from 01-04-2005 to 31-12-2010 has since been set aside by Employees Provident Fund Appellate Tribunal, New Delhi.

(d) The company has not provided for penal and overdue interest on the Outstanding Loans as on 31 March 2014. The aggregate of such panel and overdue interest of Rs. 45,184,302

(e) Additional tax liability, if any pending assessments is indeterminate.

(f) No disputed/legal cases which may have any material and adverse financial implication pending against the company.

3.1.2 Guarantees :

(a) Liability in respect of Bank Guarantees is Rs. 1,421,204,208 (Previous year Rs. 1,514,170,168)

(b) Liability in respect of Letter of Credits is NIL (Previous year Rs. 29,976,479)

(c) Corporate Guarantees'' of Rs. 200,65,81,468 (Previous year Rs. 2,461,353,998) in favour of:-

- Clients Rs. 766,581,468

- Subsidiaries Rs. 1,240,000,000

3.1.3 : Other Money for which the Company is liable :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. NIL Previous Year (Rs. 1,111,569) Related Party Disclosure

3.3 Impairment of Assets

In accordance with the Accounting Standard - 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identified for impairment by the Company during the year.

3.4 All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or Construction of qualifying assets.

3.5 Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company operates a hotel in Mussourrie and also trades in residential flats. However, these are not "Reportable Segments" as per clause 27 of AS17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India

3.6 The Company has not paid remuneration to whole time Directors (Previous Year ? 7,200,000).

3.7 Disclosure pursuant to Accounting Standard 7 as prescribed under Companies Accounting Standards Rules on Accounting in respect of the contracts in progress at the reporting date:-

3.8 Previous year''s figures have been re-grouped, rearranged to make them comparable with figures of current year, wherever considered necessary.

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Mar 31, 2013

Note 1- General Information

B.L. Kashyap And Sons Ltd (BLK) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Founded in 1978 as a partnership frm, BLK owes its success to Shri B L Kashyap, a veteran construction professional. Incorporated as a limited company in 1989. Today, BLK is one of India''s most respected construction and infrastructure development companies with a pan India presence. Our service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels.

Contingent Liabilities :

2.1.1 Claims against the company not acknowledged as debts:

(a) Out of Income Tax demand of Rs. 892,833,491 raised us 153A/143(3) in Assessment proceedings for the year 2002-2003 to 2010-2011, Rs. 666,548,940 has been deposited/adjusted. The Company has fled appeals before The Commissioner of Income Tax (Appeals) II, New Delhi contesting whole of the demand which is based on addition made on the basis of legal issues/ technical/adhoc basis.

(b) Other demands not acknowledged as liability:-

(Rs. in Lacs)

Income Tax TDS 13.10

Service Tax 301.18

VAT 872.32

(c) Additional Demand of Rs. 592.76 Crores from Provident Fund Authorities for the period from 01.04.2005 to 31.12.2010. The Company has contested the demand and the matter is pending before Employees Provident Fund Appellate Tribunal, New Delhi.

(d) Additional tax liability, if any pending assessments is indeterminate.

(e) No disputed/legal cases which may have any material and adverse fnancial implication are pending against the company.

2.1.2 Guarantees :

(a) Liability in respect of Bank Guarantees is Rs. 1,514,170,168 (Previous year Rs. 1,750,717,446)

(b) Liability in respect of Letter of Credits is Rs. 29,976,479 (Previous year Rs. 64,818,538)

(c) Corporate Guarantees'' of Rs. 2,461,353,998 (Previous year Rs. 1,531,071,762) in favour of:- - Clients Rs. 1,221,353,998,

- Subsidiaries Rs. 1,240,000,000

2.1.3 : Other Money for which the Company is liable :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 1,111,569 Previous Year (Rs. 11,416,248).

2.2 Impairment of Assets

In accordance with the Accounting Standard-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identifed for impairment by the Company during the year.

2.3 All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or Construction of qualifying assets.

2.4 Balances with the Parties are subject to Confrmations.

2.5 In the opinion of the board of directors all its assets other than fxed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

2.6 Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company also operates a hotel in Mussourrie and also trades in residential fats. However, these are not "Reportable Segments" as per clause 27 of AS-17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India.

2.7 The Company has paid remuneration to whole time Directors amounting to Rs. 7,200,000.

2.8 Previous year''s fgures have been re-grouped, rearranged to make them comparable with fgures of current year, wherever considered necessary.

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Mar 31, 2012

Note 1 General Information

B.L. Kashyap And Sons Ltd (BLK) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Founded in 1978 as a partnership firm, BLK owes its success to Shri B L Kashyap, a veteran construction professional. Incorporated as a limited company in 1989. Today, BLK is one of India's most respected construction and infra- structure development companies with a pan India presence. Our service portfolio extends across the construction of factories and manufacturing facilities, IT campuses, commercial & residential complexes, malls and hotels.

Contingent Liabilities :

2.1.1 Claims against the company not acknowledged as debts:

(a) Out of Income Tax demand raised in Assessment proceedings for the year 2002-2003 to 2009-2010 u/s 153A/143(3) of Rs. 915,038,827/-, Rs. 321,800,170/- has been deposited. The Company has filed appeals before The Commissioner of Income Tax (Appeals) II, New Delhi and is expecting substantial relief from appellate authorities as most of the additions are on technical issues and on adhoc basis.

(b) Other demands not acknowledged as payables:-

(Rs.in Lacs)

Income Tax TDS 13.10

Service Tax 13.18

VAT 100.60

(c) Additional Demand of Rs. 592.76 Crores from Provident Fund Authorities for the period from 1-4-2005 to 31-12-2010.The Company has contested the demand and the matter is pending before Employees Provident Fund Appellate Tribunal, New Delhi.

(d) Additional tax liability, if any pending assessments is indeterminate.

(e) No disputed/legal cases which may have any material and adverse financial implication are pending against the company.

2.1.2 Guarantees :

(a) Liability in respect of Bank Guarantees is Rs. 1,750,717,446/- (Previous year Rs. 2,014,534,474/-)

(b) Liabiility in respect of Letter of Credits is Rs. 64,818,538/- (Previous year Rs. 270,402,417/-)

(c) Corporate Guarantees' of Rs. 1,531,071,762/- (Previous year Rs. 1,513,647,071/-) in favour of:-

- Clients Rs. 991,071,762/-,

- Subsidiaries Rs. 540,000,000/-

2.1.3 Other Money for which the Company is liable :

Estimated amount of contracts remaining to be executed on Capital Account and not provided for. Rs. 1,14,16,248/- Previous Year (Rs. 3,39,72,129/-)

In respect of above parties there is no provision for doubtful debts as on 31-03-2012 and no amount is written off or written back during the year in respect of debt/loan & advances due from/to them.

2.2 Impairment of Assets

In accordance with the Accounting Standard - 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identified for impairment by the Company during the year.

2.3 All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or Construction of qualifying assets.

In accordance with "Accounting Standard-22" the Company has recognised the deferred tax Asset as at 31st March 2012 amounting to Rs. 1,96,94,203/- and has charged the same to Profit & Loss Appropriation Account.(Previous year deferred tax Liability Rs. 34,62,926/-)

2.4 Balances with the Parties are subject to Confirmations.

2.5 In the opinion of the board of directors all its assets other than fixed assets and non-current investments have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated in the Balance Sheet.

2.6 Additional information pursuant to Para 5 of Part II of Schedule VI to the Companies Act, 1956 to the extent applicable.

2.7 On the basis of confirmation obtained from suppliers who have registered themselves under the Micro Small Medium Enterprise Development Act, 2006(MSMED Act, 2006) and based on the information available with the company, the balance due to Micro & Small Enterprises as defined under the MSMED Act, 2006 are as follows:-

2.8 Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company also operates a hotel in Mussourrie and also trades in residential flats. However, these are not "Reportable Segments" as per clause 27 of AS-17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India.

2.9 The Company has paid remuneration to Whole Time Directors amounting to Rs. 2,61,26,756/- which exceeds the amount calculated as per the provisions of the Sec. 198 read with Sec. 309 of the Companies Act, 1956 by Rs. 2,24,01,893/-. The company is applying to the Central Government for waiver / regularisation of the excess remuneration of Rs. 2,24,01,893/- paid to the Whole Time Directors.

2.9 Disclosure pursuant to Accounting Standard-7 as prescribed under Companies Accounting Standards Rules on Accounting in respect of the contracts in progress at the reporting date:-

2.10 Previous year's figures have been re-grouped, rearranged to make them comparable with figures of current year, wherever considered necessary.

Secured Loans

(a) Term Loans From Banks

1. Union Bank of India - Rs. 12,85,71,425/- Previous Year Rs. 19,28,57,141/- Principal Amount Rs. 2,14,28,572/- & Interest Rs. 37,98,378/- delayed by 23 days & 37 days respectively.

2. State Bank of Patiala - Rs. 2,41,49,229/-Previous Year Rs. 5,00,00,000/- Principal Amount Rs. 1,41,49,229/- & Interest Rs. 4,04,265/- delayed by 87 days & 1 day respectively.

3. Oriental Bank of Commerce - Rs. 7,50,00,000/-Previous Year Rs. 17,50,00,000/- Principal Amount Rs. 2,50,00,000/- & Interest Rs. 27,69,503/- delayed by 89 days & 61 days respectively.

4. IndusInd Bank - Rs. 7,00,00,000 /-Previous Year Rs. 21,00,00,000/-

(Loan from Union bank of India, State Bank of Patiala, Oriental Bank of Commerce & IndusInd Bank (Point no. 1-4 )are secured by way of first paripassu charge on Fixed Assets of Company except those specifically charged to financial Institutions/bank for term loans of machinery & vehicles and personal Guarantees of Whole Time Directors)

5. Syndicate Bank - Rs. 100,00,00,000/-Previous Year Rs. 100,00,00,000/- Interest Rs. 2,30,37,754/- delayed by 60 days.

(Loan from Syndicate Bank secured by Subservient charge by way of hypothecation on all the Movable Assets, Current Assets, receivables and fixed assets & personal guarantees of Whole Time Directors)

6 State Bank of India - Rs. 49,05,30,418/-Previous Year Rs. Nil/-

(Loan from State Bank of India is secured by First pari passu charge over entire present & future Currrent Assets)

7. From Kotak Mahindra Bank Ltd - Loans outstanding as at 31st March 2012 Rs. 2,19,69,077/- (Previous Year - Rs. 5,82,25,983/-)

(Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole Time Directors)

8. From HDFC Bank Ltd. - Loans outstanding as at 31st March 2012 - Rs. -18,05,54,653/- (Previous Year Rs. 16,84,15,514/-)

Principal Amount Rs. 1,89,765/- & Interest Rs. 39,490/- delayed by 30 days.

(Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole Time Directors)

9. From Dhanlaxmi Bank Ltd. - Loans outstanding as at 31st March 2012 - Rs. 1,27,40,026 /- (Previous Year Rs. nil/-)

(Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole Time Directors)

10. From ICICI Bank Ltd. - Loans outstanding as at 31st March 2012 - Rs. 10,70,652/- (Previous Year Rs. 17,71,131/-)

(Loans Secured Against Hypothecation of Cars And Personal Guarantee of Whole Time Directors)

11. From HDFC Bank Ltd. - Loans outstanding as at 31st March 2012 - Rs.22,44,482/- (Previous Year Rs. 24,34,394/-)

(Loans Secured Against Hypothecation of Cars And Personal Guarantee of Whole Time Directors)

12. From Kotak Mahindra Bank Ltd - Loans outstanding as at 31st March 2012 Rs. 15,24,659/- (Previous Year - Rs. 32,23,841/-)

(Loans Secured Against Hypothecation of Cars And Personal Guarantee of Whole Time Directors)

(b) Term Loans From Other Parties

1. From L & T Infrastructure Finance Company Ltd. - Rs. 29,73,68,228/- Previous Year Rs. 40,27,77,777/- Principal Amount Rs. 4,73,68,230/- & Interest Rs. 7,12,687/- delayed by 121 days & 1 day respectively.

(Loans secured by Subservient charge by way of hypothecation on all the Movable Assets, Current Assets, receivables and fixed assets & personal guarantees of Whole Time Directors)

2. From Reliance Capital Ltd. - Loans outstanding as at 31st March 2012 - Rs. 4,20,76,917 /- (Previous Year Rs. 4,90,58,038/-)

(Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole Time Directors)

3. From Bajaj finance Limited. - Loans outstanding as at 31st March 2012 - Rs. 1,10,51,144 /- (Previous Year Rs. nil/-)

(Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole Time Directors)

4. From Srei Equipment Finance Limited. - Loan outstanding as at 31st March 2012 - Rs. 39,81,02,897/- (Previous Year Rs. 23,02,48,200/-)

Principal Amount Rs. 1,51,10,198/- & Interest Rs. 31,01,438/- delayed by 45 days.

(Loans Secured Against Hypothecation of Plant And Machinery And Personal Guarantee of Whole Time Directors)

(c) Unsecured

1. ECL Finance Limited - Rs. 6,75,00,000/- Previous Year Rs. 15,00,00,000/-

(Secured by Personal Guarantee of Directors & Pledge of Share from Whole Time Directors)

The above lone of Rs. 6,75,00,000/- is repayable in less than 1 year and therefore has been shown an as part of the Current maturities of long-term debt.

The above break up of total loans as shown in a, b & c is Rs. 2,824,453,807/- in aggregate. Out of which, an amount of Rs. 1,864,062,626/- is shown under Long Term Loans as per Note 6 and the balance of Rs. 960,391,181/- is shown as part of the Current maturities of long-term debt under other Current Liabilities as per Note 10 in terms of requirements of Schedule VI to the Companies Act, 1956.

(a) Secured Loans

1. Working Capital Facility From Banks

(Secured by way of first pari passu charge on Current Assets of the company and Second pari passu charge on Fixed Assets of the Company except those specifically charged to Financial Institutions/banks/others for term Loans of machinery & vehicles and Personal Guarantees of Whole Time Directors)

2. Indusind Bank - Rs. 30,00,00,000/-Previous Year Rs. Nil/-

(Loan from IndusInd Bank is secured by First pari passu charge over entire present & future Currrent Assets & Movable Fixed Assets, excluding Specifically charged to term lenders from machiery loans)

(b) Unsecured Loans

Tata Capital Limited - Balance Nil as at 31st March 2012 (Previous Year Rs. 22,98,27,993/-)

(Secured against personal guarantee of Whole Time Directors & pledge of shares from Whole Time Directors)

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Mar 31, 2011

1. Contingent Liabilities

(a) Contingent Liabilities exist in respect of

- Bank Guarantees Rs. 2,014,534,474/- (Previous year Rs. 1, 723, 259,880/-)

- Letter of Credits Rs. 270,402,417/- (Previous year 116,112,881/-)

- Corporate Guarantees' of Rs.1, 513,647,071/- (Previous year Rs. 1, 247,298,397/-) in favour of:-

- Clients Rs. 973,647,071/-

- Subsidiaries Rs. 540,000,000/-

(b) No disputed/legal cases which may have any material and adverse financial implication are pending against the company.

(c) Out of Income Tax demand raised in Assessment proceedings for the year 2002-2003 to 2008-2009 u/s 153A/143(3) of Rs. 91, 18, 58,218/- , Rs. 15, 26, 04,350 has been deposited. The Company has filed appeals before The Commissioner of Income Tax (Appeals) II, New Delhi and expecting substantial relief from appellate authorities as most of the additions are on technical issues and on adhoc basis.

(d) Other demands not acknowledged as payables:-

(Rs.in Lacs)

- Income Tax TDS 8.77

- Service Tax 13.18

- VAT 122.19

(e) Additional tax liability, if any pending assessments is indeterminate.

2. All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or Construction of qualifying assets.

3. Related Party Disclosure

1) List of Related Parties

I. Enterprises in which the Relationship Company has control

(i) Security Information Systems Wholly owned subsidiary (India) Ltd

(ii) B L K Lifestyle Ltd. Wholly owned subsidiary

(iii) BLK Infrastructure Ltd. Wholly owned subsidiary

(iv) Soul Space Projects Ltd. Subsidiary

(v) Soul Space Realty Ltd Step Down Subsidiary

(vi) Soul Space Hospitality Ltd Step Down Subsidiary

II. Other related Parties.

(i) Joint Ventures BLK NCC Consortium

(ii) Associates Status

(a) B.L.K. Financial Services Limited Company Limited

(b) B.L.K. Securities Private Private Limited Company Limited

(c) Ahuja Kashyap Malts Pvt. Ltd. Private Limited Company

(d) Bezel Investments & Finance Private Limited Company Pvt. Ltd.

(e) B.L. Kashyap & Sons Partnership Firm

(f) Kasturi Ram Herbal Industries Partnership Firm

(g) Aiyana Trading Pvt. Ltd. Private Limited Company

(h) Chrysalis Trading Pvt. Ltd. Private Limited Company

(i) Chrysalis Realty Projects Private Limited Company (P) Ltd

(j) EON Auto Industries Pvt. Ltd. Private Limited Company

(k) Suryakant Kakade & Soul Space Partnership Firm

(l) Asha Jyoti Software Pvt.Ltd Private Limited Company

(iii) Key Management Personnel

a) Mr. Vinod Kashyap Chairman

b) Mr. Vineet Kashyap Managing Director

c) Mr. Vikram Kashyap Joint Managing Director

(iv) Relatives of Key Management Personnel

a) Mr. Mohit Kashyap Son of Mr.Vinod Kashyap

b) Mrs.Malini Kashyap Goyal Daughter of Mr.Vinod Kashyap

c) Mr. Saurabh Kashyap Son of Mr.Vineet Kashyap

d) Mrs. Anjoo Kashyap Wife of Mr. Vinod Kashyap

e) Mrs. Aradhana Kashyap Wife of Mr. Vineet Kashyap

f) Mrs. Amrita Kashyap Wife of Mr. Vikram Kashyap

g) Mrs. Nitika Nayar Kashyap Wife of Mr.Mohit Kashyap

h) Ms Aiyana Kashyap Daughter of Mr. Mohit Kashyap

i) Mrs. Shruti Choudhari Daughter of Mr. Vineet Kashyap

j) Mrs Sanjana Kashyap Kapoor Daughter of Mr. Vikram Kashyap

k) Mr. Sahil Kashyap Son of Mr. Vikram Kashyap

4. Impairment of Assets

In accordance with the Accounting Standard - 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identified for impairment by the Company during the year.

5. Investments: The Company did not sell any of its investments which were held by it and / or purchased during the year.

6. Certain Balances with the Parties are subject to Confirmation.

7. In the opinion of the Board, Current Assets, Loans & Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and adequate provision for all known liabilities has been made.

8. The following table sets out the status of the gratuity/leave encashment plan and other benefits as required under the revised Accounting standard -15 issued by The Institute of Chartered Accountants of India.

9. Segmental Reporting

The company has only one reportable business segment i.e. civil contracts. The company also operates a hotel in Mussourrie and also trades in residential flats. However, these are not "Reportable Segments" as per clause 27 of AS17, as the revenue from these sources is less than 10% of the total revenue. The company operates in only one geographical segment viz. India.

10. Previous year's figures have been re-grouped, rearranged to make them comparable with figures of current year, wherever considered necessary.

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Mar 31, 2010

Contingent Liabilities

(a) Contingent Liabilities exist in respect of

- Bank Guarantees Rs. 1,723,259,880/- (Previous year Rs. 1,95 9,373,832/-)

- Letter of Credit Rs. 116,112,881/-(Previousyear 169,199,589/-)

- Corporate Guaranteesof Rs. 1,247,298,397/- (Previous year Rs. 836,477,200/-) in favour of:-

- Clients Rs. 397,298,397/-

- Subsidiaries Rs. 85,00,00,000/-

(b) No disputed/legal cases which may have any material and adverse financial implication are pending against the company.

(c) Income Tax Liability is indeterminate, if any arising on account of pending assessments.

2. All borrowing costs have been charged to revenue; hence no cost is attributable to acquisition or construction of qualifying assets.

3. DEFERRED TAX

In accordance with "Accounting Standard 22nd the Company has recognised the deferred tax Assets as at 31st March 2010 amounting to Rs.8,849,588/- and has charged the same to Profit & Loss Appropriation account.(Previous Year Rs. 2,410,875/-)

3. Related Party Disclosure

1) List of Related Parties

I. Enterprises in which the Company has control Relationship

(i) Security Information Systems (India) Ltd. Wholly owned subsidiary

(ii) B L K Lifestyle Ltd. Wholly owned subsidiary

(iii) B L K Infrastructure Ltd. Wholly owned subsidiary

(iv) Soul Space Projects Ltd. Subsidiary

(v) Soul Space Realty Ltd. Step Down Subsidiary

(vi) Soul Space Hospitality Ltd. Step Down Subsidiary

II. Other related Parties

(i) Joint Ventures BLK NCC Consortium

(ii) Associates Status

(a) B.L.K. Financial Services Limited Limited Company

(b) B.L.K. Securities Private Limited Private Limited Company

(c) Ahuja Kashyap Malts Pvt. Ltd. Private Limited Company

(d) Bezel Investments & Finance Pvt. Ltd. Private Limited Company

(e) B.L. Kashyap & Sons Partnership Firm

(f) Kasturi Ram Herbal Industries Partnership Firm

(g) Aiyana Trading Pvt. Ltd. Private Limited Company

(h) Chrysalis Trading Pvt. Ltd. Private Limited Company

(i) Chrysalis Realty Projects (P) Ltd. Private Limited Company

(j) EON Auto Industries Pvt. Ltd. Private Limited Company

(k) Suryakant Kakade & Soul Space Partnership Firm

(I) Asha Jyoti Software Pvt. Ltd. Private Limited Company

(iii) Key Management Personnel

(a) Mr. Vinod Kashyap Chairman

(b) Mr. Vineet Kashyap Managing Director

(c) Mr. Vikram Kashyap Joint Managing Director

(iv) Relatives of Key Management Personnel

(a) Mr. Mohit Kashyap Son of Mr.Vinod Kashyap

(b) Ms.Malini Kashyap Daughter of Mr.Vinod Kashyap

(c) Mr. Saurabh Kashyap Son of Mr.Vineet Kashyap

(d) Mrs. Anjoo Kashyap Wife of Mr. Vinod Kashyap

(e) Mrs. Aradhana Kashyap Wife of Mr. Vineet Kashyap

(f) Mrs. Amrita Kashyap Wife of Mr. Vikram Kashyap

(g) Mrs. Nikita Kashyap Wife of Mr.Mohit Kashyap

(h) Ms Aiyana Kashyap Daughter of Mr. Mohit Kashyap

(i) Mrs. Shruti Chaudhary Daughter of Mr. Vineet Kashyap

(j) Ms Sanjana Kashyap Daughter of Mr. Vikram Kashyap

(k) Mr. Sahil Kashyap Son of Mr. Vikram Kashyap



3. Impairment of Assets

In accordance with the Accounting Standard 28 on "Impairment Of Assets" issued by the Institute of Chartered Accountants of India, no Asset has been identified for impairment by the Company during the year.

4. Certain Balances with the Parties are subject to Confirmation.

5. In the opinion of the Board, Current Assets, Loans & Advances have a value on realisation in ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and adequate provision for all known liabilities has been made.