Notes to Accounts of Navkar Urbanstructure Ltd.

Mar 31, 2025

2.8 Provisions, contingent liabilities and contingent assets
Contingent liability:

A possible obligation that arises from past events and the existence of
which will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the Company
are disclosed as contingent liability and not provided for. Such liability is
not disclosed if the possibility of outflow of resources is remote.

Contingent liabilities are disclosed by way of Notes to Accounts if any.
Contingent assets:

A contingent asset is a possible asset that arises from past events and
whose existence will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the
control of the Company. Contingent assets are not recognised and
disclosed only when an inflow of economic benefits is probable.

Provisions:

A provision is recognized when as a result of a past event, the Company
has a present obligation whether legal or constructive that can be estimated
reliably and it is probable that an outflow of economic benefits will be
required to settle the obligation. If the obligation is expected to be settled
more than 12 months after the end of reporting date or has no definite
settlement date, the provision is recorded as non-current liabilities after
giving effect for time value of money, if material. Where discounting is
used, the increase in the provision due to the passage of time is recognized
as a finance cost.

2.9 Revenue Recognition

a) Revenue from the contract is recognised when significant risks and rewards
in respect of work of the contract are transferred to the contractee, as per
the terms of the order. The company has shown separately the revenues
from the operations which are stated at gross amount as per the
Requirement of Ind AS 115 "Revenue from contract with customers”.
Further, the amounts collected on behalf of third parties such as
Government authorities for VAT, Service Tax and GST are excluded from
the revenue since the same do not result in increase in Equity.

b) Interest Income is recognised on time proportion basis.

2.10 Income taxes

Income tax expense comprises current and deferred tax expense. Income
tax expenses are recognized in statement of profit and loss and when they
relate to items recognized in comprehensive income

Current tax is the tax payable on the taxable profit for the year, using tax
rates enacted or substantively enacted by the end of reporting period by the
governing taxation laws, and any adjustment to tax payable in respect of
previous periods. Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the taxation
authorities. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are
subject to interpretation and establishes provisions where appropriate.

Deferred taxes arising from deductible and taxable temporary differences
between the tax base of assets and liabilities and their carrying amount in
the financial statements are recognized using substantively enacted tax
rates and laws expected to apply to taxable income in the years in which
the temporary differences are expected to be received or settled.

Deferred tax asset are recognized only to the extent that it is probable that
future taxable profit will be available against which the deductible
temporary differences can be utilized. The carrying amount of deferred tax
assets is reviewed at each reporting date and reduced to the extent that it
is no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred income tax assets to be utilized.

2.11 Earnings Per Share

a) Basic earnings per share are calculated by dividing the net profit by number
of equity shares outstanding at the end of the year.

2.12 Borrowing cost

Borrowing costs directly attributable to the acquisition, construction or
production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are
added to the cost of these assets, until such time as the assets are
substantially ready for their intended use or sale.

All other borrowing costs are recognised in statement of profit and loss in
the period in which they are incurred.

2.13 Segment Reporting

The company has only one preliminary reportable segment i.e.
construction and development of infrastructure projects (including
provision of Reinforced Cement Concrete Pipes) hence there is no
separate reportable segments as required in Ind AS 108 issued by ICAI.

2.14 Depreciation

Depreciation on tangible fixed assets is provided using the Written
down Method based on the useful life of the assets as estimated by the
management and is charged to the Statement of Profit and Loss as per
the requirement of Schedule II of the Companies Act, 2013. In case of
additions or deletions during the year, depreciation is computed from
the month in which such assets are put to use and up to previous month
of sale or disposal, as the case may be.

2.15 Foreign currency Transactions

There is Nil foreign currency transaction during period under reporting.

2.16 Events occurring after Balance Sheet Date:

Events occurring after Balance Sheet date are those events, favorable and
unfavorable, that occur between the balance sheet date and the date when the
financial statements are approved by the Board of Directors. Events those
provide further evidence of conditions that existed at the balance sheet date
are adjusting events and events those are indicative of conditions that arose
subsequent to the balance sheet date are non-adjusting events. The amounts
recognized in the financial statements are adjusted to reflect the adjusting
events after the reporting period but not in the case of non-adjusting events.

The Company is going to issue bonus share in the proportion of 3 (Three) new
fully paid-up bonus equity share of Rs.2/- (Rupees Two only) each for every 2
(Two) existing fully paid-up equity share of Rs.2/- (Rupees Two only) each held
by the Members of the Company as on the Record Date, i.e. March 21,2025.

After that the company will sub-divide the Equity Shares of the Company such
that every 1(one) Equity Share having nominal/face value of Rs. 2/- (Rupees
Two Only) each be sub-divided into 2 (Two) Equity Shares having nominal/face
value of Rs. 1/- (Rupees One Only) each.

Post issue of Bonus Shares, the Issued and Paid-up Equity Share Capital
of the Company will be Rs.112,20,95,000/- (Rupees One Hundred and Twelve
Crore Twenty Lakhs Ninety-Five Thousand only) divided into 56,10,47,500
(Fifty-Six Crores Ten Lakhs Forty- Seven Thousand Five Hundred) of Rs.2/-
(Rupees Two Only).

Post sub - division of shares The Authorised capital will be Rs.113,00,00,000/-
(Rupee One Hundred and Thirteen Crores) divided into 113,00,00,000 (One
Hundred and Thirteen Crores Shares) of Rs.1/- (Rupees one Only). And issued
and paid up share capital will be Rs.112,20,95,000/-(Rupee One Hundred and
Twelve Crores Twenty Lakhs Ninety-Five Thousand) divided into 112,20,95,000
(One Hundred and Twelve Crores Twenty Lakhs Ninety-Five Thousand Shares)
of Rs.1/- (Rupees one Only).

2.17. Disclosure of Interest in other Entities:

As per Ind AS 112 - ‘Disclosure of Interest in other Entities’, as notified by the
Rules, the disclosures of transactions with the related parties as defined in the
accounting standard are given below:

3.2. a) In opinion of the management, contingent liability not provided is Rs. Nil.
(Nil).

b) Estimated amount of contracts remaining to be executed on capital
account and not provided for: Rs. Nil (Nil).

c) As informed to us by the management that there are no any other
contingent liability as as 31-03-2025 other than reported above.

3.3. Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long
Term and Short Term Loans & Advances, In-operative bank accounts, Other
Current and Other Non Current Assets and Provisions are subject to the
confirmation of the parties concerned. Wherever confirmation of the parties
for the amounts due to them / amounts due from them as per books of
accounts are not received, necessary adjustments, if any, will be made
when the accounts are reconciled / settled.

3.4. In the absence of information regarding outstanding dues of Micro or Small
Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise
Development Act, the Company has not disclosed the same as required by
Schedule III to the Companies Act.

3.5. The Company is engaged in the business of infrastructure activities and not
carried out any manufacturing activities during the year. The company having
projects at different locations where the company supplied the materials and
the project given on labour cum job work basis to third parties for which no
contract is executed for the same. On completion of the project the company
issued the sales invoices.

3.6. Figures have been rounded off to the nearest rupee wherever required.

3.7 Share Capital

The face value of Shares as on 01-04-2024 was Rs. 2/- per share.

4 Notes on Accounts

? ?Balances are subject to confirmation.

? ?The previous year figures have been reworked regrouped, rearranged and
reclassified wherever necessary. Accordingly, amounts and other disclosures
for the preceding year are included as an integral part of the current year
Financial Statements and are to be read in relation to the amounts and other
disclosures relating to the current year.

? ?In the opinion of Board, Fixed Assets, Current Assets, Loans & Advances
and Current Liabilities are approximate of the value stated and realised in the
ordinary course of business.

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

5 Additional Regulatory Information

Title deeds of Immovable Property not held in name of the Company

The title deeds of all the immovable properties (other than properties where
the company is the lessee and the lease agreements are duly executed in
favour of the lessee) disclosed in the financial statements are held in the
name of the company.

Details of Benami Property held:

No proceedings have been initiated or pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act,
1988 (45 of 1988) and the rules made thereunder.

Details of Quarterly Statements filed with Banks:

The Company is not required to file quarterly statement of current assets with
banks.

Wilful Defaulter:

The company is not a declared wilful defaulter by any bank or financial
Institution or other lender.

Relationship with Struck off Companies:

The company does not have any transactions with companies struck off under
the Companies Act, 2013 or the Companies Act, 1956.

Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of
Companies beyond the statutory period.

Compliance with number of layers of companies:

The company has duly complied with the number of layers prescribed under
clause (87) of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules, 2017.

Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in
terms of sections 230 to 237 of the Companies Act, 2013 for the company.

Undisclosed Income:

There is no income surrendered or disclosed as income during the current or
prior year in the tax assessments under the Income Tax Act, 1961, that have
not been recorded in the books of accounts of company.

Revaluation of property, plant and equipment, intangible asset and
investment property

The Company has revalued the useful life of its property, plant and equipment
or intangible assets during the current year.

Utilization of borrowings availed from banks and financial institutions

There are no Borrowings obtained by the company from Banks & Financial
Institution.

Details of crypto currency or virtual currency

The company has not traded or invested in Crypto Currency or virtual currency
during the current year or previous year.

As per our report of even date

For and on behalf of the Board of Directors
For, S. V. Agrawal & Co. of

Chartered Accountants Navkar Urbanstructure Limited

Firm Reg. No: 100164W

Sd/-

Harsh J Shah

Sd/- Managing Director

CA R D Agrawal DIN : 01662085

Partner

M.No. 149584

Place :- Ahmedabad

Date :- 28/05/2025 Sd/-

UDIN: 25149584BMLKZO9545 Pinki Nirmal Sagar

Director & CFO
DIN : 08113318

Sd/-

Vijay Amulwani
Company Secretary

Place: Ahmedabad
Date : 28/05/2025

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Mar 31, 2024

Unclaimed Dividend of F.Y 2014-15 and 2015-16 had to be transferred to Investor Education and Protection fund, but the same has not be done due to some technical error as per representation received from the management.

3.2. a) In opinion of the management, contingent liability not provided is Rs. Nil. (Nil).

b) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil).

c) As informed to us by the management that there are no any other contingent liability as as 31-03-2024 other than reported above.

3.3. Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long Term and Short Term Loans & Advances, In-operative bank accounts, Other Current and Other Non Current Assets and Provisions are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled. Necessary Adjustments of Rs. 63,08,832.57 have been done in Ankita-Navkar-Sarjit- JV to reconcile the accounts.

3.4. In the absence of information regarding outstanding dues of Micro or Small Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act, the Company has not disclosed the same as required by Schedule III to the Companies Act.

3.5. The Company is engaged in the business of infrastructure activities and not carried out any manufacturing activities during the year. The company having projects at different locations where the company supplied the materials and the project given on labour cum j ob work basis to third parties for which no contract is executed for the same. On completion of the project the company issued the sales invoices.

3.6. Figures have been rounded off to the nearest rupee wherever required.

3.7 Share Capital

The face value of Shares as on 01-04-2024 was Rs. 2/- per share.

4 Notes on Accounts

• Balances are subject to confirmation.

• The previous year figures have been reworked regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year Financial Statements and are to be read in relation to the amounts and other disclosures relating to the current year.

• In the opinion of Board, Fixed Assets, Current Assets, Loans & Advances and Current Liabilities are approximate of the value stated and realised in the ordinary course of business.

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

5 Additional Regulatory Information

Title deeds of Immovable Property not held in name of the Company

The title deeds of all the immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee) disclosed in the financial statements are held in the name of the company.

Details of Benami Property held:

No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

Details of Quarterly Statements filed with Banks :

The Company is not required to file quarterly statement of current assets with banks. Wilful Defaulter:

The company is not a declared wilful defaulter by any bank or financial Institution or other lender.

Relationship with Struck off Companies:

The company does not have any transactions with companies struck off under the Companies Act, 2013 or the Companies Act, 1956.

Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

Compliance with number of layers of companies:

The company has duly complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Compliance with approved Scheme(s) of Arrangements:

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 for the company.

Undisclosed Income:

There is no income surrendered or disclosed as income during the current or prior year in the tax assessments under the Income Tax Act, 1961, that have not been recorded in the books of accounts of company.

Revaluation of property, plant and equipment, intangible asset and investment property

The Company has revalued the useful life of its property, plant and equipment or intangible assets during the current year.

Utilization of borrowings availed from banks and financial institutions

The borrowings obtained by the company from banks have been applied for the purposes for which such loans were was taken.

Details of crypto currency or virtual currency

The company has not traded or invested in Crypto Currency or virtual currency during the current year or previous year.

12.3 Terms and Rights attached to equity Shares

The company has only one class of equity shares having a par value of Rs 2 each. Each holder of equity shares is entitled to one vote per share. The Company

declares and pay dividend proposed by the Board of Directors is subject to approval of the Shareholding in the ensuing Annual General Meeting.

12.4 The company has noy done any preferential allotment during any preceding year.

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Mar 31, 2018

Note 1 : Company Overview

Navkar Corporation Limited (“the Company”) is a public limited Company domiciled in India having its registered office at 205-206, J. K. Chambers, Sector-17, Vashi, Navi Mumbai, - 400 705. The Company was incorporated on September 29, 2008 under the provision of the Companies Act, 1956. The Company is engaged in providing Container Freight Station (CFS) facilities and Inland Container Depot (ICD) and is focused on capitalizing the available opportunities in the logistics space in western India. Our CFS is largely dependent on EXIM container traffic in and out of Indian port - JNPT. The equity shares of the Company were listed on The National Stock Exchange of India Limited and BSE Limited on September 9, 2015.

Notes:

a) The Investment Property consist of Land and Land Developments.

b) Gross carrying amount of Investment Property includes certain land and development having gross block value of Rs. Nil (March 31, 2017: Rs. 278.48 lakhs) situated at different locations, which are in the name of the Directors of the Company and are yet to be transferred in the name of the Company.

c) The Board of Directors has decided in the meeting held on November 25, 2016 for development of Residential Township on approximately 45 acres of land of the Company situated at Narpoli and Dahivali in Panvel, District Raigarh, Maharashtra, located in close proximity to the other residential projects.

d) Amounts are recognised in the statement of profit and loss for the above investment properties is Rs. Nil during the financial year ended March 31, 2018 and March 31, 2017.

f) Description of valuation techniques used and key inputs to valuation on investment properties

As at March 31, 2018 and March 31, 2017, the fair values of the properties are Rs. 11,779.06 lakhs and Rs. 10,968.40 lakhs respectively. These valuations are based on valuations performed by Ramachandra & Associates, an accredited independent valuer. Ramachandra & Associates is a specialist in valuing these types of investment properties.

(a) Terms / rights attached to:

Equity Shares

The Company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their share holding.

(d) Pursuant to approval of the shareholders of the Company accorded in the Annual General Meeting of the Company held on August 24, 2017, the Board of Directors, on November 01, 2017, has issued and allotted 79,11,158 Equity Shares of Rs. 10 each of the Company at an issue price of Rs. 183/- per Equity Share (including premium of Rs. 173/- per Equity Share) to Qualified Institutional Buyers pursuant to the Qualified Institutions Placement under Chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, Section 42 of the Companies Act, 2013 and other applicable provisions and rules made thereunder.

The gross proceeds of QIP issue Rs. 14,477.42 lakhs has been utilised for the objects stated in the Placement Document dated October 30, 2017 and there has been no deviation in the use of QIP proceeds from the objects stated therein.

(e) Shares allotted as fully paid up equity shares as bonus issue (during 5 years immediately preceding March 31, 2018):

91,420,665 Equity Shares of Rs. 10 each fully paid up were issued as bonus shares on March 3, 2015 in the ratio of five fully paid up equity share for every equity share held on March 2, 2015, being the record date through capitalisation of surplus from the Statement of Profit and Loss.

Note:

The Company has issued redeemable non-convertible Preference Share. Accordingly, the Companies (Share Capital and Debentures) Rules, 2014 (as amended), require the Company to create CRR out of profits of the Company available for payment of dividend. CRR is required to be created for an amount which is equal to 100% of the amount to be redeemed of Preference Shares issued at the time of maturity. The CRR is required to be created over the life of Preference Share, the Company has created CRR out of retained earnings for an proportionate amount (March 31, 2018: 44.8% and March 31, 2017: 36.46% ).

(c) Nature of security and terms of repayment for Preference Share :

0% Cumulative Redeemable Preference Shares: The Company has one class of preference shares having a par value of ‘

10 per share. They have been issued for a period of 12 years and are redeemable thereafter. These shares do not carry any dividend. In the event of liquidation, the preference shareholders are eligible to receive repayment of the capital. They do not have any rights to participate in the profits or assets of the Company. The effective interest rate used for these shares are 12.00% p.a.

6% Cumulative Redeemable Preference Shares

The Company has one class of preference shares having a par value of Rs. 100 per share and the same would be redeemed at the end of 10 years from the date of allotment. In the event of liquidation, the preference shareholders are eligible to receive repayment of the capital along with the dividend. They do not have any rights to participate in the profits or assets of the Company. Also the Company has call option to redeem the preference shares at any time after the end of one year from the date of allotment. The effective interest rate used for these shares are 12.00% p.a.

Shares allotted as fully paid up 6% Cumulative Redeemable Preference shares pursuant to the ‘Scheme of Amalgamation (during 5 years immediately preceding March 31, 2018):

99,790 6% Cumulative Redeemable Preference shares of Rs. 100 each fully paid up were issued to the erstwhile shareholders of Navkar Terminals Limited pursuant to the ‘Scheme of Amalgamation’ between the Company, Navkar Terminals Limited and their respective shareholders without payment being received in cash.

Note:

(a) These facilities are secured against the following charge on various assets of the Company :

1. Primary : Hypothecation charge on the entire current assets of the Company, both present & future.

2. Collateral :

Office number 1303, 1304 on 13th floor of the building known as Goodwill Infinity on the land bearing plot no. E/3A Sector 12, Kharghar, Navi Mumbai.

Exclusive charge on the below mentioned assets :

1) Kalmar bearing registration number NL 02-L-1411 (Model no. DRF 450 65S5)

2) Kalmar bearing registration number NL 02-L-0425 (Model no. DRF 450 65S5)

3) Kalmar bearing registration number NL 02-L-0424 (Model no. DRF 450 65S5)

4) Kalmar bearing registration number MH 46 B1546 (Model no. DRF 450 65S5)

5) Kalmar bearing registration number MH 46 B1548 (Model no. DRF 450 65S5)

6) kalmar bearing registration number MH 46 B1549 (Model no. DRF 450 65S5)

3. A undated cheque issued in the favour of bank of facility amount.

4. Personal Guarantees of Mr. Shantilal J Mehta.

(b) Working Capital Loan from HDFC Bank amounting to Rs. Nil (March 31, 2017 1,013.93 lakhs) repayable on demand.

At March 31, 2018, the Company had available Rs. Nil. (March 31, 2017: Rs. 524.50 lakhs) of undrawn committed borrowing facilities.

Note:

The Company has taken appropriate steps for refund of share application money received in Initial Public Offering in case of unallotted/ partially allotted applications. The balance is kept in a separate bank account ‘Share Application Money Refund Account’ and the Company can not freely use this amount.

Note: The above other financial liabilities includes Foreign Currency Forward and Options Contracts. Only observable inputs directly and indirectly are available to recognise the same at fair value, accordingly fair value measurement is done considering the Level -2 of Fair Value Hierarchy as per the Ind-AS 113.

Note 2 : Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations directly or indirectly. The Company’s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The below note explains the sources of risk which the entity is exposed to and how the entity manages the risk :

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company’s established policy, procedures and control relating to customer credit risk management. The Company is in the business of CFS activities. Credit quality of a customer is assessed by the management on regular basis with market information and individual credit limits are defined accordingly. Outstanding customer receivables are regularly monitored and any further services to major customers are approved by the senior management.

An impairment analysis is performed at each reporting date on an individual basis for major customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 10.

On account of adoption of Ind-AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and the Company’s historical experience for customers.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. Investments of surplus funds are made generally in the fixed deposits. The investment limits are set to minimise the concentration of risks and therefore mitigate financial loss to make payments for vendors.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2018 and March 31, 2017 is the carrying amounts as stated in balance sheet .The Company’s maximum exposure relating to financial derivative instruments is noted in the liquidity table below.

Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool.

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans, preference shares and unsecured loans. The Company has access to a sufficient variety of sources of funding which can be rolled over with existing lenders. The Company believes that the working capital is sufficient to meet its current requirements.

Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

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 relates primarily to the Company’s long-term debt obligations with floating interest rates.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company’s policy is to keep balance between its borrowings at fixed rates of interest. To manage this, the Company enters into interest rate swaps, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of hedge accounting. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the borrowings converted in the foreign currency and purchase of stores and spares from out of the India. The Company manages its foreign currency risk by hedging repayment of principals that are expected to be paid within the period of loan. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company hedges its exposure to fluctuations on the translation into ‘ of its foreign payables in foreign currencies and by using foreign currency option and forward contracts.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in foreign exchange rate, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities.

Note 3 : Capital Management

For the purpose of the Company’s capital management, capital includes issued equity share capital, securities premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the value of the share and to reduce the cost of capital.

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 can adjust the dividend payment to shareholders, issue new shares, etc. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Note 4 : Segment Information:

Information about Primary Business Segment

The Company has identified business segments as its primary segment and geographic segments as its secondary segment. The Company is engaged in CFS Operations and related activities during the year, consequently the Company does not have separate reportable business segment for the year ended March 31, 2018.

Information about Secondary Geographical Segment

The Company is engaged in providing services to customers located in India, consequently the Company does not have separate reportable geographical segment for the year ended March 31, 2018.

Note 5 : Merger of Subsidiary Company:

Board of Directors in their meeting held on March 30, 2017 approved the Scheme of Amalgamation of Navkar Terminals Limited (‘NTL’) with the Company (‘the Scheme’). The Company holds 50,000 equity shares fully paid up in NTL, representing 100% of the total paid up equity share capital of NTL, which shall stand extinguished upon the Scheme becoming effective. The Scheme has been approved by the shareholders of both the companies and other regulatory authorities as prescribed in the law. The scheme was approved by the NCLT by its order dated March 28, 2018.

Pursuant to the Scheme, all assets and liabilities of the Transferor Company has been transferred to and vested in the Transferee Company on the appointed date (i.e. March 1, 2016) at their book values. The Transferee Company has issued one fully paid up 6% Cumulative Redeemable Preference Shares of Rs. 100 each for every Preference Shares of Rs. 100 each held in the Transferor Company pursuant to the Scheme. As per the NCLT order, this amalgamation is in nature of merger and the accounting treatment is to be given using the ‘Pooling of Interest Method of Accounting’. The details of assets and liabilities transferred by the Transferor Company as a result of amalgamation are as under:

Accordingly, the Company has given effect in the financial statements with effect from March 1, 2016, being the Appointed Date, as provided in the Scheme. Therefore, the figures for the previous year ended March 31, 2017 have been restated considering the effect of amalgamation.

Note 6 : Employee Benefits:

The Company has classified the various benefits provided to employees as under:

I. Defined Contribution Plans

a. Employers’ Contribution to Provident Fund and Employee’s Pension Scheme

b. Employers’ Contribution to Employee’s State Insurance

During the year, the Company has incurred and recognised the following amounts in the Statement of Profit and Loss:

III. Other Employee Benefit

The liability for leave entitlement as at March 31, 2018 is Rs. 67.13 lakhs (March 31, 2017: Rs. 51.57 lakhs) disclosed under Long Term Provisions (Refer Note 19) and Short Term Provision (Refer Note 25).

IV. Sensitivity Analysis

The below sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Note 7 : Expenditure on Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, a Company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The Company is spending amount for these activities, which are specified in Schedule VII of the Companies Act, 2013.

(a) Gross amount required to be spent by the Company during the year Rs. 216.11 Lakhs (previous year Rs. 205.38 Lakhs)

(b) Amount spent during the year on:

Note 8 : Qualified Institutional Placement:

Pursuant to approval of the shareholders of the Company accorded in the Annual General Meeting of the Company held on August 24, 2017, the Board of Directors, on November 01, 2017, has issued and allotted 79,11,158 Equity Shares of Rs. 10 each of the Company at an issue price of Rs. 183/- per Equity Share (including premium of Rs. 173/- per Equity Share) to Qualified Institutional Buyers pursuant to the Qualified Institutions Placement under Chapter VIII of the Securities Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, Section 42 of the Companies Act, 2013 and other applicable provisions and rules made thereunder.

The gross proceeds of QIP issue Rs. 14,477.42 lakhs has been utilised for the objects stated in the Placement Document dated October 30, 2017 and there has been no deviation in the use of QIP proceeds from the objects stated therein.

Note 9 : Previous Years’ Figures:

The financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind-AS) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and polices to the extent applicable. The Company has adopted Ind-AS on April 1, 2016 with the transition date as April 1, 2015, and adoption was carried out in accordance with Ind-AS 101 - First Time Adoption of Indian Accounting Standards. The previous period’s figures have been regrouped or rearranged wherever necessary.

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

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Mar 31, 2016

1. Terms and Rights attached to equity Shares

The company has only one class of equity shares having a par value of Rs 10 each. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend proposed by the Board of Directors is subject to approval of the Shareholding in the ensuing Annual

2. The company has not issued any Right/ Bonus shares during any preceding year.

3 The company has issued 43,63,300 Equity Shares during the FY 2013-14.

4. Term Loan from Bank

Term Loans from Union Bank of India of Rs. 200.37 lac (467.52 lac) of which Rs. Nil (200.37 lac) has been classified as long term borrowing and Rs. 200.37 lac (267.16 lac) has been classified as Current Maturities of long term borrowing and are secured, by way of Hypothecation of Plant & Machineries situated at Plants of the Company, specific immovable properties of Company and Personal Guarantee of two directors, one shareholder and Corporate Guarantee of Navkar Fiscal Services Pvt. Ltd. to the extent of Rs. 91.00 Lacs.

Principal repayable in equal monthly/quarterly installments.

Interest is payable on Monthly Basis. Applicable Rate of Interest is B.R. 3.50% p.a. i.e. at Present 13.15% p.a.

5 Vehicle Loans from Bank

hicle Loans of Rs. 14.31 lac (19.53 lac) Vehicle Loans of which Rs. 8.56 Lacs (PY Rs. 14.31 Lacs) are classified as Secured Loans From Bank and Rs. 5.74 Lacs (PY Rs. 5.22 Lacs) are classified as Current Maturities of Long Term Borrowings are secured against respective vehicles under the Hire Purchase Contract .

Principal repayable in monthly equated Installments.

Applicable Rate of Interest is 12% p.a.

Nature of Security

Cash Credit with Union Bank of India are secured by hypothecation of present and future stock and book debts of company,

6 Personal Guarantee of two directors, one shareholder and Corporate Guarantee of Associate companies in tune of sanction limits.

Interest is payable on Monthly Basis. Applicable Rate of Interest is B.R. 3.50% p.a. i.e. at Present 13.15% p.a.

Under the Micro, Small & Medium enterprise development act, 2006, certain disclosures are required to be made relating to Micro & small enterprise. The company is in the process of compiling relevant information from its supplier about their

7 coverage under the said act. Since the relevant information is not readily available, no disclosures have been made in the accounts. However, in view of the management, the impact of interest, if any, that may be payable in accordance with the provision of the this act is not expected to be material. This has been relied upon by the auditors.

8. Related Party Transactions:

As per Accounting Standard - 18 - ''Related Party Disclosures'', as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence -

Parshva Alluminium Co. Pvt Ltd.,

Yashnanad Engineers & Contractors,

Wildwood Resorts & Realties Pvt. Ltd Yash Associates

b) Key management personnel

Dakshesh R. Shah,

Samir C. Patel

c) Entities have significant influence -

Navkar Fiscal Services Pvt. Ltd.

Efficent Tie-up Pvt. Ltd.

Note:

a) All the above balances of loans are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

9. Employee Benefits (AS - 15) (Note pending from the actuary valuer will be received by end of day)

a) Defined Contribution plan

Amount of Rs. 3,71,250/- is recognized as an expense and included in Employees Benefit expenses in Note 22 to statement of profit and loss.

10. a) In opinion of the directors, contingent liability not provided is Rs. Nil. (Nil)

b) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil).

11. Figures have been rounded off to the nearest rupee and previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current year''s figures.

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Mar 31, 2015

1. Terms and Rights attached to equity Shares

The company has only one class of equity shares having a par value of Rs 10 each. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend proposed by the Board of Directors is subject to approval of the Shareholding in the ensuing Annual General Meeting.

2. The company has not issued any Right/ Bonus shares during any preceding year

3. Term Loan from Bank

Term Loans from Union Bank of India of Rs. 467.52 lac (678.12 lac) of which Rs. 200.37 lac (373.54 lac) has been as long term borrowing and Rs. 267.16 lac (304.58 lac) as current maturities of long term borrowing. are sucured by way of Hypothication of Plant & Machineries situated at Plants of the Company, Specific Immovable properties of company and others and Personal Guarantee of two directors, one shareholder and Corporate Guarantee of Associate Principal repayble in equal monthly/quarterly installments.

Interest is payable on Monthly Basis. Applicable Rate of Interest is B.R. 5% p.a. i.e. at Present 15.00% p.a.

4. Loan from Banks

Loans from Various Banks of Rs. Nil (216.45 lac) are secured by way of mortgage on the Plant & Machineries which are situated at Plants of the company and Personal Gaurantee of Directors.

Principal repayble in equal monthly installments.

Applicable rate of interest is within the range of 10.25% - 12% p.a.

5. Vehicle Loans from Banks

Vehcile loans of Rs. 14.31 Lac (20.68) are secured against respective vehicles under the Hire Purchase Contract. Principal repayble in equal monthly installments.

Applicable rate of interest is 12% p.a.

11.1 Capital work in progress includes advances for capital goods Rs. 93,25,776/-

Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II, except in respect of certain assets as

6. disclosed in Accounting Policy on Depreciation, Amortisation and Depletion. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful lives.

In accordance with the Schedule II of the Companies Act, 2013, the company has reassessed the estimated useful life of assets. The reassessed useful life is in the line

7. with existing useful life of the assets used by the company for the purpose of the depreciation. Due to this reassessment, the depreciation expense for the year ended 31.03.2015 is higher by Rs. 38.90 Lacs.

8. Related Party Transactions:

As per Accounting Standard - 18- 'Related Party Disclosures', as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence -

Parshva Alluminium Co. Pvt Ltd.

Yashnand Engineers & Contractors Parshva Texchem (I) Pvt. Ltd Wild Wood Resorts & Realties Pvt. Ltd Innovative Infraplus India Limited

b) Key management personnel

Dakshesh R. Shah,

Samir C. Patel

c) Entities have significant influence -

Navkar Fiscal Services Pvt. Ltd.

Efficent Tie-up Pvt. Ltd.

a) All the above balances of loans are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

9. a) In opinion of the directors, contingent liability not provided is Rs. Nil. (Nil)

b) Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil).

10. Figures have been rounded off to the nearest rupee and previous year's figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current year's figures.

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Mar 31, 2014

1. Related Party Transactions:

As per Accounting Standard - 18 (AS 18) - ''Related Party Disclosures'', as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

- a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence -

Parshva Alluminium Co. Pvt Ltd., Yashnanad Engineers & Contractors, Parshwa Texchem (I) P. Ltd, Wild wood resorts & realties Pvt. Ltd Anar Project Ltd

b) Associate Company

Navkar Fiscal Services Private Limited

c) Key management personnel

Dakshesh R, Shah, Samir C. Patel

Note:

a) All the above balances of loans are including accrued interest and are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

2. In opinion of the directors, contingent liability not provided is Rs. Nil. (Previous Year Rs. Nil)

3. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil)

4. Figures have been rounded off to the nearest rupee and previous year''s figures have been regrouped, rearranged and reclassified wherever necessary N to confirm with current year''s figures.

Note:

a) All the above balances of loans are including accrued interest and are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

5. In opinion of the directors, contingent liability not provided is Rs. Nil. (Previous Year Rs. Nil)

6. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil).

7. Figures have been rounded off to the nearest rupee and previous year''s figures have been regrouped, rearranged and reclassified wherever necessary '' to confirm with current year''s figures.

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Mar 31, 2013

1. Related Party Transactions:

As per Accounting Standard - 18 (AS 18) – ''Related Party Disclosures'', as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence – Parshva Alluminium Co. Pvt Ltd., Yashnanad Engineers & Contractors

b) Associate Company

Navkar Fiscal Services Private Limited

c) Key management personnel Dakshesh R. Shah, Samir C. Patel

Note:

a) All the above balances of loans are including accrued interest and are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

2. In opinion of the directors, contingent liability not provided is Rs. Nil. (Previous Year Rs. Nil)

3. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil).

4. Figures have been rounded off to the nearest rupee and previous year''s figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current year''s figures.

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Mar 31, 2012

Terms and Rights attached to equity Shares

1.1

The company has only one class of equity shares having a par value of Rs 10 each. Each holder of equity shares is entitled to one vote per share. The Company declares and pay dividend proposed by the Board of Directors is subject to approval of the Shareholding in the ensuing Annual General meeting.

1.2 The company has not issued any Right/ Bonus shares during any preceding year

1.3 The Company has received Share application money of Rs 1,29,22,500 for 12,10,000 Equity Shares and 10,50,000 Preferential Warrants during the year

The Company has converted 0 (17,77,400) convertible warrants into equity

1.4 shares during the year .

Contingent assets are not recognized.

5. Related Party Transactions:

As per Accounting Standard - 18 (AS 18) — 'Related Party Disclosures', as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence —

Parshva Alluminium Co. Pvt Ltd., Yashnanad Engineers & Contractors

b) Key management personnel

Dakshesh Shah, Samir B. Patel, Ullas Shah

Note:

a) All the above balances of loans are including accrued interest and are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

6. During the year, there were imports of capital goods and also company had made remittance in foreign currency. Details of remittance is given below.

7. In opinion of the directors, contingent liability not provided is Rs. Nil. (Previous Year Rs. Nil)

8. Estimated amount of contracts remaining to be executed on capital account and not provided for: Rs. Nil (Nil).

9. Figures have been rounded off to the nearest rupee and previous year's figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current year's figures.

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Mar 31, 2011

1. The company has converted 17,77,400 convertible warrants into equity shares during the year. Earning per share has been adjusted on account of increases in Equity Share Capital due to issue of above said shares during the financial year.

2. In opinion of the directors, contingent liability not provided is Rs. Nil. (Previous Year Rs. Nil)

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances): Rs. Nil (Nil).

4. Disclosure U/s. 22 of Micro, Small and Medium Enterprises Development Act, 2006:

a) Principal Amount remaining unpaid to suppliers as on March 31, 2011: NIL

b) Amount of Interest due and remaining unpaid as on March 31, 2011: NIL

c) Amount of Interest paid U/s.16: NIL

d) Amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act: NIL

e) Amount of Interest accrued and remaining unpaid as on March 31,2011: NIL

5. Directors Remuneration Paid for the period is Rs.25,92,000 (Rs.22,68,000)

6. Related Party Transactions:

As per Accounting Standard - 18 (AS 18) – 'Related Party Disclosures', as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence –

Parshva Aluminum Co. Pvt. Ltd., Parshva Texchem (India) Pvt. Ltd., Gurjar Granth Ratna Karyalaya, Gurjar Finance, Yashnanad Engineers & Contractors

b) Associate Company

Navkar Fiscal Services private Limited

c) Key management personnel Dakshesh Shah, Samir Patel, Ullas Shah

d) Relatives of key management personnel

Chandubhai B. Patel, Hemishbhai C. Patel, Manubhai G. Shah

Note:

a) All the above balances of loans are including accrued interest and are payable on demand.

b) No loans have been granted by the Company to any person for the purpose of investing in the shares of Navkar Builders Limited.

11. Additional information pursuant to the provisions of paragraphs 3, 4B, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956.

b) Additional information pursuant to the provisions of paragraphs 3, 4B, 4C, 4D of part II of the Schedule VI of the Companies Act, 1956.

Note:

It is not practicable to furnish quantitative information in view of large number of items, which differ in size and nature, each being less than 10% in value of the total raw materials consumed.

c) During the year, there were no imports of raw materials, stores and spares or capital goods and there was no remittance in foreign currency on account of dividends. Also, there was no earning in foreign currency.

7. The figures are not comparable as current year figure is of twelve month and as of previous year is fifteen months.

8. Prior years amount have been reclassified wherever necessary to conform with current year presentation. Figures in the brackets are in respect of the previous year.

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Jun 30, 2010

1. The Company has issued 17,77,400 convertible warrants on preferential basis at a price of Rs. 10 each and partly paid by Rs. 2.5 each as per SEBI (DIP) guidelines. The warrant holder has to pay Rs. 7.5/- per warrant at the time of allotment of warrant. The warrant will be converted at the option of the allottees into equity shares of Rs. 10/- each at par at any time within 18 months from the date of allotment, in case of option is not exercise within a period of 18 months from the date of allotment, Rs. 2.5 paid on the date of allotment shall be forfeited.

2. In opinion of the directors, contingent liability not provided is Rs. Nil. (Previous Year Rs. Nil)

3. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances): Rs. Nil (Nil).

4. Disclosure U/s. 22 of Micro, Small and Medium Enterprises Development Act, 2006:

a) Principal Amount remaining unpaid to suppliers as on June 30, 2010: NIL

b) Amount of Interest due and remaining unpaid as on June 30, 2010: NIL

c) Amount of Interest paid U/s.16: NIL

d) Amount of Interest due and payable for the period of delay in making payment (which have been paid but beyond the appointed day during the year) but without adding the interest specified under this Act: NIL

e) Amount of Interest accrued and remaining unpaid as on June 30,2010: NIL

5. Directors Remuneration Paid during the year is Rs. 22, 68,000 (Rs. Nil)

6. Related Party Transactions:

As per Accounting Standard - 18 (AS 18) – Related Party Disclosures, as notified by the Rules, the disclosures of transactions with the related parties as defined in the accounting standard are given below:

A. Related parties with whom transactions have taken place during the year

a) Entities where key management personnel (KMP)/relatives of key management personnel (RKMP) have significant influence –

Parshva Alluminium Co. Pvt Ltd., Parshva Texchem (India) Pvt Ltd., Gurjar Granth Ratna Karyalaya, Gurjar Finance, Yashnanad Engineers & Contractors

b) Associate Company

Navkar Fiscal Services private Limited

c) Key management personnel Dakshesh Shah, Samir Patel, Ullas Shah

d) Relatives of key management personnel

Chandubhai B. Patel, Hemishbhai C. Patel, Manubhai G. Shah

7. Figures have been rounded off to the nearest rupee and previous years

Figures have been regrouped, rearranged and reclassified wherever necessary to confirm with current years figures.