Notes to Accounts of Constronics Infra Ltd.

Mar 31, 2025

All of the Companyâs trade receivables have been reviewed for indicators of impairment. The Company has reviewed for impairment of its trade receivables using a provisioning matrix representing expected credit losses based on a range of outcomes.

Customer credit risk is managed based on the Company''s established policy, procedures and control relating to customer credit risk management, pursuant to which outstanding customer receivables are regularly monitored by the management. Outstanding customer receivables are regularly monitored by the management to ensure the risk of credit loss is minimal. Credit quality of a customer is assessed based on historical information in relation to pattern of collections, defaults and credit worthiness of the customer.

c) Rights, preferences and restrictions attached to the equity shares

The Company has only one class of equity shares having a par value of? 10 each and each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors, if any is subject to the approval of the shareholders in the ensuing Annual General Meeting except interim dividend. The equity shareholders will, in the event of liquidation be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

d) Bonus issue, buy back and issue of shares other than in cash

There were no shares issued pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus shares or bought back during the last 5 years immediately preceding the year ended 31 March 2025.

(a) Capital reserve

The Company recognises profit and loss on purchase, sale, issue or cancellation of the Company''s own equity instruments to capital reserve,

(b) Securities Premium reserve

The amount received in excess of the par value of equity shares has been classified as securities premium. Amounts have been utilized for bonus issue and share buyback from share premium account.

Surplus in the statement of profit and loss represent the amount of accumulated earnings of the Company.

I) Categories of financial assets and financial liabilities

All financial assets are measured at amortised cost as at the reporting date. All financial liabilities are measured at amortised cost except derivative liability as at the reporting date. The company does not have any assets measured at fair value through other comprehensive income.

II) Financial risk management

The Companyâs principal financial liabilities comprise of loans and borrowings, lease liabilities, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include cash, trade and other receivables that derive directly from its operations.

The Company is exposed to market risk, interest rate risk, foreign currency risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management assesses the financial risks and the appropriate financial risk governance framework in accordance with the Companyâs policies and risk objectives. The Board of Directors review and agree on policies for managing each of these risks, which are summarised below.

a) Market risk

Market risk is a risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company is exposed to market risk through its use of financial instruments and specifically tointerest rate risk, which result from both its operating and investing activities.

i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates are managed by borrowing at fixed interest rates. During the year Company did not have any floating rate borrowings. Hence, interest rate sensitivity is not material to the financial statements.

32 Financial instruments (Continued)

II) Financial risk management (Continued)

b) Credit risk

Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial instruments, for example trade receivables, placing deposits, investment etc. the Company''s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting period, as summarised below:

Trade receivables are typically unsecured and are derived from revenue from customer. Credit risk has been managed by the Company through proper approvals which continuously monitors the creditworthiness of the customer to whom the Company grant credit terms in the normal course of business.

The credit risk for cash and cash equivalents are considered negligible, since the counterparties are reputable banks with high quality external credit ratings.

Other financial assets mainly comprises of Security deposits and are assessed by the Company for credit risk on a continuous

c) Liquidity risk

Liquidity risk is that the Company might be unable to meet its obligations. The Company manages its liquidity needs by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity analysis below. Liquidity needs are monitored in various time bands, on a day-to-day and week-to-week basis, as well as on a monthly, quarterly, and yearly basis depending on the business needs. Net cash requirements are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available borrowing facilities are expected to be sufficient over the lookout period.

The Company''s objective is to maintain cash and bank''s short term credit facilities to meet its liquidity requirements for 30-day periods at a minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an adequate amount of committed credit facilities.

The Company considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash resources and trade receivables.

33 Capital management

For the purpose of the Companyâs capital management, capital includes issued share capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder

The company has not distibuted any dividend to its shareholders. The company monitors net debt to capital ratio i.e., total debt in proportion to its overall financing structure i.e., equity and debt. Total debt comprises of term loans and cash credits. The company manages its capital structure and makes changes to it in the light of changes in economic conditions and the risk characteristics of

a) Guarantees

Guarantees issued by bank on behalf of the Company as on March 31, 2025 is 1,01,00,000 for NTPC and 5,00,000 for one construction project.

b) Tax contingencies

The Company is subject to legal proceedings and claims,which have arisen in the ordinary course of business. These cases are pending with the Income Tax Department. The management believes that these cases will not adversely affect its financial statements. The Company does not expect any reimbursement in respect of the contingent liability and it is not practicable to estimate the timings of the cash outflows, if any, in respect of matters above, pending resolution of the arbitration/appellate proceedings and it is not probable that an outflow of resources will be required to settle the obligations/daims

36 The Company has alloted 30,09,899 convertible warrants each convertible into, or exchangeable for, 1 (one) fully paid up equity share of the company having face value of Rs 10/- each at any time within 18 months from the date of allotment of the warrants as per SEBIICDR Regulation for cash, at a price of Rs 110/- per warrant.

37 The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956,

38 No proceedings have been initiated or pending against the Company for holding any benami property under the Prohibition of Benami Transactions (Prohibition) Act, 1988 (as amended) and the rules made thereunder.

39 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

40 The company has compiled with the number of layers prescribed under clause (87) of section 2 of the companies (Restrictions on number of layers) Rules, 2017.

41 The company has not advanced or loaned or invested funds to any other persons(s) or entity (is), including foreign entities (intermediaries), with the understanding that the intermediary shall;

i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by on behalf of the company (Ultimate Beneficiaries) or

ii) Provide any guarantee, security or the like to or on behalf of the Ultimate beneficiaries

42 The company has not received any funds from any persons(s) or entity (ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall;

i) Directly and indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding party (Ultimate beneficiaries) or

ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

43 The Company has not traded or invested in crypto currency or virtual Currency during the financial year.

44 Leases

The Company has lease contracts for office premises and these lease contracts are cancellabla/renewable for further period on mutually agreeable terms during thetenure of lease contracts. These lease contracts are classified as shortterm lease contracts under Ind AS 116.

45 Segment reporting

The Company is engaged in construction activity, this is primary business segment and also sale of material (ash). In accordance with Ind AS 108, Operating segments, the Company has only one reportable business segment which is related to construction activity. Accordingly, these financial statements are reflective of the information required for its single reportable segment during the year ended 31 March 2025 and 31 March 2024.

47 Events after balance sheet date

No adjusting or significant non-adjusting events have occurred between the reporting date and the date of authorisation of issue of financie statements.

Mar 31, 2024

3.15 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

3.16 Financial liabilities and equity instruments

3.16.1 Classification as debt or equity

Debt and equity instruments issued by a Company entity are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

3.16.2 Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company entity are recognised at the proceeds received, net of direct issue costs.

Repurchase of the Company''s own equity instruments is recognised and deducted directly in equity. No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the Company''s own equity instruments.

3.16.3 Compound financial instruments

The component parts of compound financial instruments (convertible notes) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. A conversion option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the Companyâs own equity instruments is an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognised as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrumentâs maturity date.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound financial instrument as a whole. This is recognised and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised, in which case, the balance recognised in equity will be transferred to other component of equity. When the conversion option remains unexercised at the maturity date of the convertible note, the balance recognised in equity will be transferred to retained earnings. No gain or loss is recognised in profit or loss upon conversion or expiration of the conversion option.

Transaction costs that relate to the issue of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the equity component are recognised directly in equity. Transaction costs relating to the liability component are included in the carrying amount ofthe liability component and are amortised over the lives ofthe convertible notes using the effective interest method.

3.16.4 Financial liabilities

All financial liabilities are subsequently measured at amortised cost using the effective interest method or at FVTPL.

However, financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies, financial guarantee contracts issued by the Company, and commitments issued by the Companyto provide a loan at below-market interest rate are measured in accordance with the specific accounting policies set out below.

3.16.4.1 Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liability is either contingent consideration recognised by the Company as an acquirer in a business combination to which Ind AS 103 applies or is held for trading or it is designated as at FVTPL.

A financial liability is classified as held for trading if:

Â¦ it has been incurred principally for the purpose of repurchasing it in the near term; or

Â¦ on initial recognition it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

Â¦ it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading or contingent consideration recognised by the Company as an acquirer in a business combination to which Ind AS 103 applies, may be designated as at FVTPL upon initial recognition if:

Â¦ such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise;

Â¦ the financial liability forms part of a Company of financial assets or financial liabilities or both, which is managed and its performance is

evaluated on a fair value basis, in accordance with the Company''s documented risk management or investment strategy, and information about the Companying is provided internally on that basis; or

Â¦ it forms part of a contract containing one or more embedded derivatives, and Ind AS 109 permits the entire combined contract to be designated as at FVTPL in accordance with Ind AS 109.

Financial liabilities at FVTPL are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the âOther income'' line item.

However, for non-held-for-trading financial liabilities that are designated as at FVTPL, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk ofthat liability is recognised in other comprehensive income, unless the recognition ofthe effects of changes in the liabilityâs credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss, in which case these effects of changes in credit risk are recognised in profit or loss. The remaining amount of change in the fairvalue of liability is always recognised in profit or loss. Changes in fair value attributable to a financial liabilityâs credit risk that are recognised in other comprehensive income are reflected immediately in retained earnings and are not subsequently reclassified to profit or loss.

Gains or losses on financial guarantee contracts and loan commitments issued by the Company that are designated by the Company as at fair value through profit or loss are recognised in profit or loss.

3.16.4.2 Financial liabilities subsequently measured at amortised cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are measured at amortised cost at the end of subsequent accounting periods. The carrying amounts offinancial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalised as part of costs of an asset is included in the ''Finance costs'' line item.

The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part ofthe effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

3.16.4.3 Derecognition of financial liabilities

The Company derecognises financial liabilities when, and only when, the Companyâs obligations are discharged, cancelled or have expired. An exchange between with a lender of debt instruments with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly, a substantial modification of the terms of an existing financial liability (whether or not attributable to the financial difficulty ofthe debtor) is accounted for as an extinguishment ofthe original financial liability and the recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

3.17 Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind ASs, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

For and on behalf of the Board of Directors For S.C. Ajmera & Co,

Firm Regn No: 002908C Chartered Accountants

R.Sundararaghavan K.Suresh Kumaar S.C Ajmera

Managing Director Director Partner

(DIN: 01197824) (DIN: 08547720 ) Membership No. 081398

Rishab Kothari

CFO and Company Secretary

Place: Chennai Date : 29.05.2024

Mar 31, 2015

1) Discontinued Operation

The company has discontinued its operation since 24th of February 2009 and has sold its entire asset pursuant to sale agreement with TTK Healthcare Limited in the FY 2009-10. The company has accumulated losses of Rs.8,48,18,197/- which is more than 50% of its net worth, and had incurred cash losses of Rs.8,51,757/- during the financial year 2014-15 (FY 2013-14 Rs.5,98,785/-). Hence, all the assets and liabilities are adjusted to its net realisable value.

2) Loan to Directors

Short Term loans and advances includes as amount of Rs.70,47,151/- ( amount sanctioned during the year Rs.Nil) being outstanding of loans given to one of the directors , without obtaining the prior approval of Central Government as per Sec.295 of erstwhile Companies Act 1956.

3) Previous year figures have been regrouped and recast to confirm with current year classification.

Mar 31, 2014

1) Discontinued Operation

The company has discontinued its operation since 24th of February 2009 and has sold its entire asset pursuant to sale agreement with TTK Health Care Limited in the FY 2009-10. The company has accumulated losses of Rs.8,39,53,547/- which is more than 50% of its net worth, and had incurred cash losses of Rs.5,98,785/- during the financial year 2013-14 (FY 2012-13 Rs.6,36,891/-). Hence, all the assets and liabilities are adjusted to its net realisable value.

However, the company is in the process of identifying opportunities and reviving business operations. The company is of the view that on materialisation of the new proposals, the company would be able to turn around and continue as a going concern.

2) Loan to Directors

During the previous year an amount of Rs.82.72 Lakh has been given to one of the directors, Mr.Sathish as loan, for which Central Government approval is yet to be obtained.

3) Previous year figures have been regrouped and recast to confirm with current year classification.

Mar 31, 2013

The operations of the company were discontinued since 24.02.2009.

Sale/ Transfer of assets

Pursuant to the sale agreement with the TTK Healthcare Ltd., all the assets were transferred in the year 2009-2010.

Loan to Directors

During the previous year an amount of Rs.57.72 Lakh has been given to one of the directors, Mr.Sathish kumar as loan, for which Central Government approval is yet to be obtained.

During the current year an additional loan of Rs.25 Lakh has been given to the director. The Central Government''s approval is yet to be obtained for the same.

Debtors written off:

During the previous year debtors amounting to Rs.19,39,067 were considered bad and were written off to Profit and loss account.

Previous year figures have been regrouped and recast to confirm with current year classification.

Mar 31, 2012

1. Discontinued Operation

The operations of the company were discontinued since 24.02.2009.

2. Sale / Transfer of assets

Pursuant to the sale agreement with the TTK Healthcare Ltd., all the assets were transferred in the year 2009-2010.

3. Loan to Directors

During the period an amount of Rs.45,00,000 has been given to one of the directors, Mr.Sathish as loan, for which Central Government approval is yet to be obtained.

During the current year an additional loan of Rs.15,00,000 has been given to the director. The Central Government''s approval is yet to be obtained for the same.

4. TTK Healthcare Receivable

An amount of Rs.13,58,381 is being recoverable from TTK Healthcare Ltd. The amount will be received subjects to the No Due Certificate by the Income Tax Department.

5. Debtors written off:

During the year debtors amounting to Rs.19,39,067 was considered bad and was written off to Profit and loss account.

Previous year figures have been regrouped and recast to confirm with current year classification.

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