Notes to Accounts of Dharan Infra-Epc Ltd.

Mar 31, 2025

(a) The Cash Flow Statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) Statement of Cash Flows.

(b) Cash comprise cash on hand, current accounts and deposits with banks. Cash equivalents are short term balances (with original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value.

(c) *The increase in equity is on account of the conversion of Foreign Currency Convertible Bonds (FCCBs) into equity shares. As this is a non-cash transaction, it does not appear in the Cash Flow Statement. The impact of the conversion is reflected in the reserves under "Other Equity."

The accompanying notes form an integral part of the standalone financial statements.

a) The Company has investments in certain partnership firms aggregating INR 0.35 lakhs (31^st March, 2024: INR

0.35 lakhs). The Company considers its investments in such entities as long term and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company’s investments in such entities, which are considered good and fully recoverable.

b) In a partnership firm M/s. Karda Infrastructures, profit sharing ratio for Hari Smruti Project is 80:20 between Dharan Infra-EPC Limited & Naresh Karda.

1. The figures of previous period have been re-stated for revenue recognition from Civil Contracting Business. The amount of un-billed revenue in respect of all the civil contracts have been recognized as income from operations, which were earlier classified under the Closing WIP of Civil Contracts.

2. No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person, or from any firms or private companies in which any director is a partner, a director or a member.

3. As per the management representation, there is no uncertainty in recovering dues receivable from customers and thus no provision has been made for the doubtful debt.

2. Terms / rights attached to equity shares

The Company has a single class of equity shares having a par value of Re. 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The Board of Directors has not declared any dividend for the year ending 31st March, 2025.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

a) The above figures of Trade Payables are shown as net of advances paid to the suppliers.

Details of dues to Micro, Small and Medium Enterprises as defined under Micro Small Medium Enterprises Development Act, 2006:

b) Disclosure of payable to vendors as defined under the ‘Micro, Small and Medium Enterprise Development Act, 2006’ is based on the information available with the Company regarding the status of registration of such vendors under the Act, as per the information / declarations received from vendors regarding their classification into MSME.

c) Company has not made any provision for interest to be paid / payable to micro and small enterprises during the year.

d) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of parties under the MSMED Act and has been relied upon by the auditors.

e) Trade payables include INR NIL (31st March, 2025: NIL) due to related parties. Kindly refer Note 25

For calculation of Earnings Per Share, in case of bonus issue the number of equity share outstanding before the bonus issue is adjusted for proportionate change in number of equity shares outstanding as if the bonus issue had occurred at the beginning of the earliest period reported.

Note 24: Commitments and Contingencies Contingent Liabilities & Commitments (Not Provided For)	(INR in Lakhs)
Particulars	31 March 2025	31 March 2024
(A) Claims against the Company not acknowledged as debts on account of : 1. Income Tax and MVAT matters under appeal	54.02	54.02
2. TDS liability on account of short deduction, short payment and interest thereon as per TRACES	1.21	1.21
3. Towards pending legal cases	-	-
(B) On account of corporate guarantees issued by the Company	9,851.82	9,851.82
to bankers and others on behalf of other companies and joint ventures for facilities availed by them (amount outstanding there against.) (Refer Footnote c)
Total	9,907.05	9,907.05

a) Interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

b) Contingent liabilities include corporate guarantees issued by the Company and relied upon by the Auditors.

c) The management is of the view that it was necessary to provide the corporate guarantees to further the business interest of the Company in the entities on whose behalf such guarantees have been provided and the management is of the view that there would be no sustainable claims on the Company in respect of these corporate guarantees.

The rate of interest, processing fees, any other charges levied by the lenders on the entities availing loans are based on internal guidelines of the lenders depending on the merits of the underlying projects and their estimated cash flows. Majority of the corporate guarantees issued by the Company are basically to provide comfort by the Company as a shareholder of the Borrower entity to the Lenders. These corporate guarantees, in any case, do not result in any additional benefits to the borrowers. Accordingly, the fair value of the corporate guarantees is accepted to be immaterial.

The amount of loan referred as Corporate Guarantee in the aforementioned note, has become an NPA. However, the management is of the view that there will not be any future financial obligation associated with this NPA Loan as the security coverage of the other company is adequate to cover the potential amount of contingent liability that may arise in future.

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company’s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument which fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk include loans and borrowings.

(a) Interest rate risk

Majority of the long-term borrowings of the Company bear fixed interest rate and thus interest rate risk is limited for the Company.

(b) Foreign currency risk

The Company is engaged in real estate business and the imports made by the company are very minimal for which hedging instruments are not required.

(c) Equity price risk

The Company’s equity securities are not majorly susceptible to market price risk. However, the Company’s Board of Directors reviews and approves all equity investment decisions after exercising due diligence which may affect the market related risk.

2. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets is contributed by trade receivables, unbilled revenue, cash and cash equivalents and receivables from group companies.

(a) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, thereby substantially eliminating the Company’s credit risk in this respect.

(b) Receivables resulting from other than sale of properties: Credit risk related to such receivables is managed as per Company’s established policy, procedures and control. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major receivables. The Company does not hold collateral as security. The Company''s credit period generally ranges from 30 to 90 days.

(c) Credit risk on cash and cash equivalents is limited as the Company generally invests deposit with banks which have high credit ratings.

3 Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through loan from banks, commercial papers, fixed deposits from public and other debt instruments. The Company invests its surplus funds in bank fixed deposits and debt based mutual funds.

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s management is to maximize shareholders value and to ensure the company’s ability to continue as a going concern.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may issue new shares. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total net debt (borrowings offset by cash and cash equivalents) divided by total capital of the Company. Gearing Ratio

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and borrowings.

b) Defined Benefit Plans:

Contribution to Gratuity Fund (Non-Funded)

Gratuity is payable to all eligible employees on death or on separation/ termination in terms of the provisions of the Payment of Gratuity Act or as per the Company’s policy whichever is beneficial to the employees.

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

Note 30: Leases

The company has entered into cancellable operating leasing arrangements for commercial premises and office premises:

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

a) Basis of SegmentationFactors used to identify the entity’s reportable segments, including the basis of organization

For management purposes, the Company’s business activity falls within a three-business segment viz. ‘Development of Real Estate Property’, ‘Civil Contracting Business’ and ‘Investment segment’, the financial statements are reflective of the information required by Ind AS 108 “Operating Segments”. The Managing Director of the Company acts as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators.

b) Geographical Information

The geographic information analyses the Company’s revenue and Non-Current Assets by the Company’s country of domicile and other countries. As the Company is engaged in Development of Real Estate property & Civil Contracting Business in India, it has only one reportable geographical segment.

c) Information about major customers

None of the customers for the years ended March 31, 2025 and March 31, 2024 constituted 10% or more of the total revenue of the Company.

Note 34: Corporate Social Responsibility

The Company has spent INR 6.98 Lakhs during the year (Previous Year 2024: INR 1.30 Lakhs) as per the provisions of Section 135 of the Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities grouped under ‘Other Expenses’.

(a)Gross amount required to be spent by the Company during the year is Nil.

Note 35:

Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information not available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. There is no undisputed amount overdue during the years ended and as at March 31, 2025 and March 31, 2024 to Micro, Small and Medium Enterprises on account of principal or interest.

Note 36:

Cash and Cash Equivalents and Bank Balances include balances in Escrow Account which shall be used only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

The financial statements for the year ended 31 March 2025 were approved by the Board of Directors and authorized for issue on May 30, 2025.

Note 38:

Previous period figures have been regrouped and reclassified wherever necessary, to confirm with current years'' presentation.

Note 39: Other Statutory Information

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(c) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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 or on behalf of the company (Ultimate Beneficiaries) or

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

(e) To the best of our knowledge and representation received from the management, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(f) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(g) To the best of our knowledge and representation received from the management, the Company has not granted any loans or advances in nature of loans to promoters, directors and KMPs either severally or jointly with any other person during the year ended March 31, 2025 and March 31, 2024.

(h) The Company has not been declared willful defaulter by any bank, financial institution, government or government authority.

(i) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets during the year ended March 31, 2025.

---

Mar 31, 2024

The accompanying notes are an integral part of the standalone financial statements

(a) Securities Premium

Securities premium is used to record the premium received on issue of shares. It is utilized in accordance with the provisions of the Act.

(b) General Reserves

The general reserve is created from time to time to transfer profits from retained earnings for appropriation purposes.

The accompanying notes form an integral part of the standalone financial statements.

(a) The Cash Flow Statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) Statement of Cash Flows.

(b) Cash comprise cash on hand, current accounts and deposits with banks. Cash equivalents are short term balances (with original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value.

a) The Company has investments in certain partnership firms aggregating INR 0.35 lakhs (31^st March, 2023: INR 0.35 lakhs). The Company considers its investments in such entities as long term and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company’s investments in such entities, which are considered good and fully recoverable.

b) In a partnership firm M/s. Karda Infrastructures, profit sharing ratio for Hari Smruti Project is 80:20 between KBC Global Limited & Naresh Karda.

1. The figures of previous period have been re-stated for revenue recognition from Civil Contracting Business. The amount of un-billed revenue in respect of all the civil contracts have been recognized as income from operations, which were earlier classified under the Closing WIP of Civil Contracts.

2. No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person, or from any firms or private companies in which any director is a partner, a director or a member.

3. As per the management representation, there is no uncertainty in recovering dues receivable from customers and thus no provision has been made for the doubtful debt.

2. Terms / rights attached to equity shares

The Company has a single class of equity shares having a par value of Re. 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The Board of Directors has not declared any dividend for the year ending 31st March, 2024.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

a) The above figures of Trade Payables are shown as net of advances paid to the suppliers.

Details of dues to Micro, Small and Medium Enterprises as defined under Micro Small Medium

Enterprises Development Act, 2006:

b) Disclosure of payable to vendors as defined under the ‘Micro, Small and Medium Enterprise Development Act, 2006’ is based on the information available with the Company regarding the status of registration of such vendors under the Act, as per the information / declarations received from vendors regarding their classification into MSME.

c) Company has not made any provision for interest to be paid / payable to micro and small enterprises during the year.

d) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of parties under the MSMED Act and has been relied upon by the auditors.

e) Trade payables include INR NIL (31 st March, 2023: NIL) due to related parties. Kindly refer Note 25.

Footnote:

The figures of previous period have been re-stated for revenue recognition from Civil Contracting Business. The amount of un-billed revenue in respect of all the civil contracts have been recognized as income from operations, which were earlier classified under the Closing WIP of Civil Contracts.

For calculation of Earnings Per Share, in case of bonus issue the number of equity share outstanding before the bonus issue is adjusted for proportionate change in number of equity shares outstanding as if the bonus issue had occurred at the beginning of the earliest period reported.

Note 24: Commitments and Contingencies

Contingent Liabilities & Commitments (Not Provided For)		(INR in Lakhs)
Particulars	31 March 2024	31 March 2023
(A) Claims against the Company not acknowledged as debts on account of : 1. Income Tax and MVAT matters under appeal 2. TDS liability on account of short deduction, short payment and interest	54.02	54.02
thereon as per TRACES	1.21	1.21
3. Towards pending legal cases	-	-
(B) On account of corporate guarantees issued by the Company to bankers and others on behalf of other companies and joint ventures for facilities availed by them (amount outstanding there against.) (Refer Footnote c)	9,851.82	9,851.82
Total	9,907.05	9,907.05

Footnote:

a) Interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

b) Contingent liabilities include corporate guarantees issued by the Company and relied upon by the Auditors.

c) The management is of the view that it was necessary to provide the corporate guarantees to further the business interest of the Company in the entities on whose behalf such guarantees have been provided and the management is of the view that there would be no sustainable claims on the Company in respect of these corporate guarantees.

The rate of interest, processing fees, any other charges levied by the lenders on the entities availing loans are based on internal guidelines of the lenders depending on the merits of the underlying projects and their estimated cash flows. Majority of the corporate guarantees issued by the Company are basically to provide comfort by the Company as a shareholder of the Borrower entity to the Lenders. These corporate guarantees, in any case, do not result in any additional benefits to the borrowers. Accordingly, the fair value of the corporate guarantees is accepted to be immaterial.

The amount of loan referred as Corporate Guarantee in the aforementioned note, has become an NPA. However, the management is of the view that there will not be any future financial obligation associated with this NPA Loan as the security coverage of the other company is adequate to cover the potential amount of contingent liability that may arise in future.

Note 26: Financial Risk Management Objectives and Policies

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company’s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument which fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk include loans and borrowings.

(a) Interest rate risk

Majority of the long-term borrowings of the Company bear fixed interest rate and thus interest rate risk is limited for the Company.

(b) Foreign currency risk

The Company is engaged in real estate business and the imports made by the company are very minimal for which hedging instruments are not required.

(c) Equity price risk

The Company’s equity securities are not majorly susceptible to market price risk. However, the Company’s Board of Directors reviews and approves all equity investment decisions after exercising due diligence which may affect the market related risk.

2. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets is contributed by trade receivables, unbilled revenue, cash and cash equivalents and receivables from group companies.

(a) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, thereby substantially eliminating the Company’s credit risk in this respect.

(b) Receivables resulting from other than sale of properties: Credit risk related to such receivables is managed as per Company’s established policy, procedures and control. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major receivables. The Company does not hold collateral as security. The Company''s credit period generally ranges from 30 to 90 days.

(c) Credit risk on cash and cash equivalents is limited as the Company generally invests deposit with banks which have high credit ratings.3. Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Management monitors rolling forecasts of the Company’s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents. The Company has access to funds from debt markets through loan from banks, commercial papers, fixed deposits from public and other debt instruments. The Company invests its surplus funds in bank fixed deposits and debt based mutual funds.

Note 27:Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s management is to maximize shareholders value and to ensure the company’s ability to continue as a going concern.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may issue new shares. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total net debt (borrowings offset by cash and cash equivalents) divided by total capital of the Company.

Gearing Ratio

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and borrowings.

b) Defined Benefit Plans:

Contribution to Gratuity Fund (Non-Funded)

Gratuity is payable to all eligible employees on death or on separation/ termination in terms of the provisions of the Payment of Gratuity Act or as per the Company’s policy whichever is beneficial to the employees.

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

Note 30: Leases

The company has entered into cancellable operating leasing arrangements for commercial premises and office premises:

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

Note 31: Disclosure Pursuant to Indian Accounting Standard (Ind-AS) 12 Income Taxes:

The company has recognized Deferred Tax Liabilities of Rs. 1.33 Lakhs in the Profit and Loss Account, the details of which are as under:

Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable / realizable, as the case may be.

Note 33: Segment Reporting a) Basis of Segmentation

Factors used to identify the entity’s reportable segments, including the basis of organization

For management purposes, the Company’s business activity falls within a three-business segment viz. ‘Development of Real Estate Property’, ‘Civil Contracting Business’ and ‘Investment segment’, the financial statements are reflective of the information required by Ind AS 108 “Operating Segments”. The Managing Director of the Company acts as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators.

b) Geographical Information

The geographic information analyses the Company’s revenue and Non-Current Assets by the Company’s country of domicile and other countries. As the Company is engaged in Development of Real Estate property & Civil Contracting Business in India, it has only one reportable geographical segment.

c) Information about major customers

None of the customers for the years ended March 31, 2024 and March 31, 2023 constituted 10% or more of the total revenue of the Company.

Footnote:

(1) Unallocated income comprise of other income shown in the financial results.

(2) Unallocated assets primarily comprise of corporate investments and property, plant and equipment.

(3) Unallocated liabilities include deferred tax liabilities.

Note 34: Corporate Social Responsibility

The Company has spent INR 1.30 Lakhs during the year (Previous Y ear 2023: INR 2.57 Lakhs) as per the provisions of Section 135 of the Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities grouped under ‘Other Expenses’.

Note 35:

Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. There is no undisputed amount overdue during the years ended and as at March 31,2024 and March 31,2023 to Micro, Small and Medium Enterprises on account of principal or interest.

Note 36:

Cash and Cash Equivalents and Bank Balances include balances in Escrow Account which shall be used only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

Note 37:

The financial statements for the year ended 31 March 2024 were approved by the Board of Directors and authorized for issue on July 15, 2024.

Note 38:

Previous period figures have been regrouped and reclassified wherever necessary, to confirm with current years'' presentation. Note 39: Other Statutory Information

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(c) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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 or on behalf of the company (Ultimate Beneficiaries) or

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

(e) To the best of our knowledge and representation received from the management, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(f) The Company has not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(g) To the best of our knowledge and representation received from the management, the Company has not granted any loans or advances in nature of loans to promoters, directors and KMPs either severally or jointly with any other person during the year ended March 31,2024 and March 31,2023.

(h) The Company has not been declared willful defaulter by any bank, financial institution, government or government authority.

(i) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets during the year ended March 31,2023.

(j) As per information received from the management, there were no transactions entered with the companies which are struck off.

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Mar 31, 2023

The accompanying notes are an integral part of the standalone financial statements

(a) Securities Premium

Securities premium is used to record the premium received on issue of shares. It is utilized in accordance with the provisions of the Act.

(b) General Reserves

The general reserve is created from time to time to transfer profits from retained earnings for appropriation purposes.

The accompanying notes form an integral part of the standalone financial statements.

(a) The Cash Flow Statement has been prepared under the indirect method as set out in Indian Accounting Standard (Ind AS 7) Statement of Cash Flows.

(b) Cash comprise cash on hand, current accounts and deposits with banks. Cash equivalents are short term balances (with original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of change in value.

The accompanying notes form an integral part of the standalone financial statements.

As per our report of even date

b) The Company has investments in certain partnership firms aggregating INR 0.35 lakhs (31^st March, 2021: INR

0.22 lakhs). The Company considers its investments in such entities as long term and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company’s investments in such entities, which are considered good and fully recoverable.

1. Loans & Advances are secured against Terms of Development Agreement / Agreement for sale.

c) In a partnership firm M/s. Karda Infrastructures, profit sharing ratio for Hari Smruti Project is 80:20 between KBC Global Limited & Naresh Karda.

Footnote:

1. The company is charging interest at the rate of 12% p.a. and 15% p.a. on the loans and advances given to others as per the terms of the agreement. Such advances are given for the short term and are recoverable on demand.

Footnote:

1. The figures of previous period have been re-stated for revenue recognition from Civil Contracting Business. The amount of un-billed revenue in respect of all the civil contracts have been recognized as income from operations, which were earlier classified under the Closing WIP of Civil Contracts.

2. No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person, or from any firms or private companies in which any director is a partner, a director or a member.

3. As per the management representation, there is no uncertainty in recovering dues receivable from customers and thus no provision has been made for the doubtful debt

1. The current accounts figure for the year are classified under Current Borrowings as these accounts were having overdraft balances.

5(f) Current Tax Assets

1. Excess Credit Balance of GST is subject to reconciliation and confirmation with the Electronic

Credit Ledger on GSTN portal and with GSTR - 2A statement. Mismatches, if any, will be reconciled and adjusted at the time of GST annual return filing and GST audit.

1. Deposits are made with the Income Tax - Commissioner (Appeals) for the A.Y. 2015-16 Rs.40.10 Lakhs.

1. Refer Note 18 for cost of inventories recognized as an expense during the period.

2. The figures of previous period have been re-stated for revenue recognition from Civil Contracting Business. The amount of un-billed revenue in respect of all the civil contracts have been recognized as income from operations, which were earlier classified under the Closing WIP of Civil Contracts.

3. Mode of valuation of inventories is stated in Note 2

1. The Company has issued 950 Foreign Currency Convertible Bond (FCCB) at Price $100,000 With Coupon 1.5% during reporting period.

2. Further 15 Foreign Currency Convertible Bond (FCCB) were converted and 5,06,77,941 Equity shares of Es.1/- each were allotted.

1. Reconciliation of number of shares outstanding at the beginning and at the end of the year

pays dividend in Indian rupees. The Board of Directors has not declared any dividend for the year ending 31st March, 2023.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

3. Details of shares held by each shareholder holding more than 5%

stuil''PS

2. Terms / rights attached to equity shares

The Company has a single class of equity shares having a par value of Re. 1 per share. Each holder of equity share is entitled to one vote per share. The Company declares and

As per the records of the company, including its register of shareholders / members and other declarations received from the shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

The amount received in excess of face value of the equity shares is recognized in Securities Premium Reserve. The reserve is utilized in accordance with the provisions of the Act.

1. The company has received civil works contract from Shree Sainath Land & Development. The above amount in their account represents advance received by the company against such civil contracts.

a) The above figures of Trade Payables are shown as net of advances paid to the suppliers.

Footnote:

1. The provision for Gratuity is non fund based provision and is made on the basis of actuarial report.

Details of dues to Micro, Small and Medium Enterprises as defined under Micro Small Medium Enterprises Development Act, 2006:

b) Disclosure of payable to vendors as defined under the ‘Micro, Small and Medium Enterprise Development Act, 2006’ is based on the information available with the Company regarding the status of registration of such vendors under the Act, as per the information / declarations received from vendors regarding their classification into MSME.

c) Company has not made any provision for interest to be paid / payable to micro and small enterprises during the year.

d) The above information has been determined to the extent such parties could be identified on the b asis of the informati on availab l e with the Company regarding the status of parties under the MSMED Act and has been relied upon by the auditors.

e) Trade payables include INR NIL (31st March, 2022: INR 6.1 Lakhs) due to related parties. Kindly refer Note 25.

Payable to Partnership Firms represents excess withdrawal made from the firm. Also refer the Related Parties Transactions Note No.25

The figures of previous period have been re-stated for revenue recognition from Civil Contracting Business. The amount of unbilled revenue in respect of all the civil contracts have been

recognized as income from

operations, which were earlier classified under the Closing WIP of Civil Contracts.

Note 23: Earnings Per Share:

(a) Basic Earnings Per Share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of equity shares outstanding during the year.

For calculation of Earnings Per Share, in case of bonus issue the number of equity share outstanding before the bonus issue is adjusted for proportionate change in number of equity shares outstanding as if the bonus issue had occurred at the beginning of the earliest period reported.

Note 24: Commitments and Contingencies Contingent Liabilities & Commitments (Not Provided For)

a) Interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

b) Contingent liabilities include corporate guarantees issued by the Company and relied upon by the Auditors.

c) The management is of the view that it was necessary to provide the corporate guarantees to further the business interest of the Company in the entities on whose behalf such guarantees have been provided and the management is of the view that there would be no sustainable claims on the Company in respect of these corporate guarantees.

The rate of interest, processing fees, any other charges levied by the lenders on

the entities availing loans are based on internal guidelines of the lenders depending on the merits of the underlying projects and their estimated cash flows. Majority of the corporate guarantees issued by the Company are basically to provide comfort by the Company as a shareholder of the Borrower entity to the Lenders. These corporate guarantees, in any case, do not result in any additional benefits to the borrowers. Accordingly, the fair value of the corporate guarantees is accepted to be immaterial.

The amount of loan referred as Corporate Guarantee in the aforementioned note, has become an NPA. However, the management is of the view that there will not be any future financial obligation associated with this NPA Loan as the security coverage of the other company is adequate to cover the potential amount of contingent liability that may arise in future.

Note 26: Financial Risk Management Objectives and Policies

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Company’s senior management oversees the management of these risks. The Company''s senior management provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument which fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Major financial instruments affected by market risk include loans and borrowings.

(a) Interest rate risk

Majority of the long-term borrowings of the Company bear fixed interest rate and thus interest rate risk is limited for the Company.

(b) Foreign currency risk

The Company is engaged in real estate business and the imports made by the company are very minimal for which

hedging instruments are not required.

(c) Equity price risk

The Company’s equity securities are not majorly susceptible to market price risk.

2. Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets is contributed by trade receivables, unbilled revenue, cash and cash equivalents and receivables from group companies.

(a) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances before transfer of ownership, thereby substantially eliminating the Company’s credit risk in this respect.

(b) Receivables resulting from other than sale of properties: Credit risk related to such receivables is managed as per Company’s established policy, procedures and control. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major receivables. The Company does not hold collateral as security. The Company''s credit period generally ranges from 30 to 90 days.

(c) Credit risk on cash and cash equivalents is limited as the Company generally invests deposit with banks which have high credit ratings.

3. Liquidity risk

However, the Company’s Board of Directors reviews and approves all equity investment decisions after exercising due diligence which may affect the market elated risk.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Management monitors rolling forecasts of the Company’s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through loan from banks, commercial papers, fixed deposits from public and other debt instruments. The Company invests its surplus funds in bank fixed deposits and debt based mutual funds.

Note 27:

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s management is to maximize shareholders value and to ensure the company’s ability to continue as a going

concern.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may issue new shares. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total net debt (borrowings offset by cash and cash equivalents) divided by total capital of the Company.

Gearing Ratio

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define the capital structure requirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and borrowings.

b) Defined Benefit Plans: Contribution to Gratuity Fund (Non- Funded)

Gratuity is payable to all eligible employees on death or on separation/ termination in terms of the provisions of the Payment of Gratuity Act or as per the Company’s policy whichever is beneficial to the employees.

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

Note 30: Leases

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

Note 31: Disclosure Pursuant To Indian Accounting Standard (Ind-AS) 12 Income Taxes:

The company has recognized Deferred Tax Liabilities of Rs. 2.12 Lakhs in the Profit and Loss Account, the details of which are as under:

Note 32:

Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable / realizable, as the case may be.

Note 33: Segment Reporting

a) Basis of Segmentation

Factors used to identify the entity’s reportable segments, including the basis of organization

For management purposes, the Company’s business activity falls within a three-business segment viz. ‘Development of Real Estate Property’, ‘Civil Contracting Business’ and ‘Investment segment’, the financial statements are reflective of the information required by Ind AS 108 “Operating Segments”. The Managing Director of the Company acts as the Chief Operating Decision Maker (“CODM”). The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators.

b) Geographical Information

The geographic information analyses the Company’s revenue and NonCurrent Assets by the Company’s country of domicile and other countries. As the Company is engaged in Development ofReal Estate property & Civil Contracting Business in India,

it has only one reportable geographical segment.

c) Information about major customers

None of the customers for the years ended March 31, 2023 and March 31, 2022 constituted 10% or more of the total revenue of the Company.

Standalone Segment wise Revenue, Results, Assets & Liabilities for the year ended March 31, 2023:

1. Unallocated income comprise of other income shown in the financial results.

2. Unallocated assets primarily comprise of corporate investments and property, plant and equipment.

3. Unallocated liabilities include deferred tax liabilities.

Note 34: Corporate Social Responsibility

The Company has spent INR 2.57 Lakhs during the year (Previous Year 2022: INR 32.56 Lakhs) as per the provisions of Section 135 of the Companies Act, 2013 towards Corporate Social Responsibility (CSR) activities grouped under ‘Other Expenses’.

(a) Gross amount required to be spent by the Company during the year is INR 43.32 Lakhs (Previous Year 2022: INR 27.84 Lakhs).

(b) Amount spent during year on:

Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. There is no undisputed amount overdue during the years ended and as at March 31, 2023 and March 31, 2022 to Micro, Small and Medium Enterprises on account of principal or interest.

Note 36:

Cash and Cash Equivalents and Bank Balances include balances in Escrow Account which shall be used only for specified purposes as defined under Real Estate (Regulation and Development) Act, 2016.

Note 37:

The financial statements for the year ended 31 March 2023 were approved by the Board of Directors and authorized for issue on July 07, 2023.

(c) The Company has not traded or

Note 38:

Previous period figures have been regrouped and reclassified wherever necessary, to confirm with current years'' presentation.

Note 39: Other Statutory Information

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

invested in Crypto currency or Virtual Currency during the financial year.

(d) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), 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 or on behalf of the company (Ultimate Beneficiaries) or

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

To the best of our knowledge and representation received from the management, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

The Company has not any such transaction which is not recorded

in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax

(g) To the best of our knowledge and representation received from the management, the Company has not granted any loans or advances in nature of loans to promoters, directors and KMPs either severally or jointly with any other person during the year ended March 31, 2023 and March 31, 2022.

(h) The Company has not been declared willful defaulter by any bank, financial institution,

Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

government or government authority.

(i) The Company has not revalued its property, plant and equipment (including right-to-use assets) or intangible assets during the year ended March 31, 2023.

(j) As per information received from the management, there were no transactions entered with the companies which are struck off.

---

Mar 31, 2018

1. Corporate Information

Karda Constructions Limited (“the Company”) is a listed public limited company domiciled in India, incorporated under the Companies Act, 1956. The Company is primarily engaged in real estate business of construction and development of Residential & Commercial Premises; IT Parks and Civil Contracts (EPC) along with renting of immovable properties.

1. Deemed cost for property, plant and equipment, investment property, and intangible assets

The Company has elected to continue with the carrying value of all its property, plantand Equipment and Intangible assets recognisedas of 1 April 2016 (transitiondate) measured as perprevious GAAP and use that carrying value as its deemed cost as of the transition date.

b) The Company has investments in certain partnership firms aggregating Rs.98.82 lakhs (31st March, 2017: Rs.98.82 lakhs ; 1st April, 2016: Rs.233.82 lakhs). The Company considers its investments in such entities as long term and strategic in nature. Accordingly, no provision is considered necessary towards diminution in the value of the Company’s investments in such entities, which are considered good and fully recoverable.

c) In a partnership firm M/s. Karda Infrastructures, profit sharing ratio for Hari Smruti Project is 80:20 between Karda Constructions Limited & Naresh Karda

b) IPO expenses were incurred during the year for the fresh issue of equity shares and offer for sale of promoter. The listing date of equity shares on BSE & NSE was 02-04-2018.The amount of Rs.93.50 Lakhs represents the advance given to the parties. Total of IPO expenses adjusted against the securities premium was Rs.114.99 Lakhs

Footnote:

a) Refer Note 18 for cost of inventories recognised as an expense during the period.

b) Nil amount of inventories were written down to net realisable value during the current and comparable periods. Similarly, Nil amount of reversal of write down was accounted during the current and comparable periods.

c) Mode of valuation of inventories is stated in Note 2

2.Terms / rights attached to equity shares

The Company has a single class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The Board of Directors have not declared dividend for the year ending 31st March, 2018.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company in proportion to the number of equity shares held by each shareholder, after settlement of all preferential obligations.

Footnote:

a) Information regarding issue of shares in the last five years:

i) The Company has not issued any shares without payment being received in cash.

ii) The Company has issued bonus shares during the F.Y 2016-17 - 40.00 Lakhs & F.Y 2017-18 - 10.00 Lakhs.

iii) The Company has not undertaken any buy-back of shares.

iv) The Company has issued fresh equity shares during the F.Y. 2017-18 - 23.00 Lakhs in an IPO.

Footnotes:

a) The average credit period on purchases is 3 to 6 months.

Details of dues to Micro, Small and Medium Enterprises as defined under Micro Small Medium Enterprises Development Act, 2006 :

b) Trade payables include Rs. Nil (As at 31st March, 2017: Rs. Nil; As at 1st April, 2016: Rs. Nil) due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED).

c) No interest was paid / payable to micro and small enterprises during the year.

d) The above information has been determined to the extent such parties could be identified on the basis of the information available with the Company regarding the status of parties under the MSMED Act and has been relied upon by the auditors.

e) Trade payables include Rs. 12.20 lakhs (31st March, 2017: Rs.3.92 lakhs; 1st April, 2016: Rs. 2.46 lakhs) due to related parties. Kindly refer Note 25..

Note 23 : Disclosure pursuant to Indian Accounting Standard (Ind-AS) 33 Earnings Per Share:

Basic EPS amounts are calculated by dividing the profit forthe year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

For calculation of Earning Per Share, in case of Bonus Issue the number of Equity Share Outstanding before the Bonus Issue is adjusted for proportionate change in number of Equity Shares outstanding as if the Bonus Issue had occurred at the beginning of the earliest period reported.

Contingent Liabilities & Commitments (Not Provided For)

Footnotes:

a. Interest / penalty that may accrue on original demands are not ascertainable, at present. The Company has taken necessary steps to protect its position with respect to the above referred claims, which in its opinion, based on professional / legal advice are not sustainable.

b. Contingent liabilities include corporate guarantees issued by the Company and relied upon by the Auditors.

c. The management is of the view that it was necessary to provide the corporate guarantees to further the business interest of the Company in the entities on whose behalf such guarantees have been provided and the management is of the view that there would be no sustainable claims on the Company in respect of these corporate guarantees.

The rate of interest, processing fees, any other charges levied by the lenders on the entities availing loans are based on internal guidelines of the lenders depending on the merits of the underlying projects and their estimated cash flows. Majority of the corporate guarantees issued by the Company are basically to provide comfort by the Company as a shareholder of the Borrower entity to the Lenders. These corporate guarantees, in any case, do not result in any additional benefits to the borrowers. Accordingly, the fair value of the corporate guarantees are excepted to be immaterial.

Note 3 : Financial Risk Management Objectives and Policies

The Company’s activities expose it to a variety of financial risks: market risk, credit risk and liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument which fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity pricerisk. Major financial instruments affected by market risk include loans and borrowings.

(a) Interest rate risk

Majority of the long-term borrowings of the Company bear fixed interest rate and thus interest rate risk is limited for theCompany.

(b) Foreign currency risk

The Company is engaged in real estate business and the imports made by the company is very minimal for which hedginginstruments are not required.

(c) Equity price risk

The Company’s equity securities are not majorly susceptible to market price risk. However, the Company’s Board of Directors reviews and approves all equity investment decisions after exercising due diligence which may affect the market related risk.

2 Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure of the financial assets are contributed by trade receivables, unbilled revenue, cash and cash equivalents and receivables fromgroup companies.

(a) Receivables resulting from sale of properties: Customer credit risk is managed by requiring customers to pay advances beforetransfer of ownership, thereby substantially eliminating the Company’s credit risk in this respect.

(b) Receivables resulting from other than sale of properti es: Credit risk related to such receivables is managed as per Company’s established policy, procedures and control. Outstanding customer receivables are regularly monitored. The impairment analysis is performed at each reporting date on an individual basis for major receivables. The Company does not hold collateral as security. The Company’s credit period generally ranges from 30 to 90 days.

(c) Credit risk on cash and cash equivalents is limited as the Company generally invests deposit with banks which have high credit ratings.

3 Liquidity Risk

The Company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s netliquidity position through rolling forecasts on the basis of expected cash flows.

Note 4 :

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s management is to maximise shareholders value and to ensure the company’s ability to continue as a going concern.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may issue new shares. Consistent with others in the industry, the Company monitors its capital using the gearing ratio which is total net debt (borrowings offset by cash and cash equivalents) divided by total capital of the Company.

Gearing Ratio

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that itmeets financial covenants attached to the borrowings that define the capital structure requirements. Breaches in meeting the financial covenants would permit the lenders to immediately call loans and borrowings.

Note 5 :

Disclosure Pursuant To Indian Accoutning Standard (Ind-AS) 17 Leases:

The company has entered into cancellable operating leasing arrangements for commercial premises and office premises:

The lease term do not contain any exceptional / restrictive covenants nor are there any oprions given by the lesser to purchase the properties. The agreement provide for changes in the rentals along with taxes leviable.

Note 6 disclosure Pursuant To Indian Accoutning Standard (Ind-AS) 12 Income Taxes:

Note 7 :

First-time adoption of Ind-AS

(a) De-recognition of financial assets and financial liabilities

The Company has applied the de-recognition principles of financial assets and financials liabilities prospectively fortransactions occurring on or after 1 April 2016.

(b) Deemed cost for property, plant and equipment, investment property, and intangible assets

The Company has elected to continue wi th the carrying value of all its property, plant and equipment and Intangible assets recognised as of 1 April 2016 (transition date) measured as per previous GAAP and use that carrying value as itsdeemed cost as of the transition date.

(c) Investments in partnership firms

In accordance with exemption given in Ind AS 101, the company has recorded investments in partnership firms at deemed cost i.e. previous GAAP carrying amount as on date of transition.

(d) Impairment of financial assets

The Company has applied the impairment requirements of Ind AS - 109 ‘Financial Instruments’ retrospectively; however, as permitted by Ind AS 101, the Company has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date of financial instruments were initially recognised in order to compare it with the credit risk at the transition date.

Note 8 :

Loans and advances, other receivables, debtors and creditors are subject to confirmations and are considered payable /realisable, as the case may be.

Note 9:

The Company is engaged in Real Estate. The operations of the company do not qualify for reporting as business segments as per the criteria set out under Indian accounting standard 108(1 ND AS-108) on “Operating Segments”. The Company is operating in India hence there is no reportable geographic segment. Accordingly no disclosure is required under IND AS-108.

Note 10:

(a) Gross amount required to be spent by the company during the year is RS. 17.45 lakhs (Previous Year Rs. 12.48Lakhs)

(b) Amount spent during the year Rs. 17.72 Lakhs (Previous Year Rs. 6.79Lakhs)

Note 11:

The financial statements for the year ended 31^st March 2018 were approved by the Board of Directors and authorised for issue on 28^th May 2018.

Note 12:

Previous period figures have been regrouped and reclassified wherever necessary, to confirm with current year’s presentation