అకౌంట్స్ గమనికలుCapacit'e Infraprojects Ltd.

Mar 31, 2025

p. Provisions and Contingencies

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects
some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is
recognised as a separate asset, but only when the
reimbursement is virtually certain.

The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement. If
the effect of the time value of money is material, provisions
are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.

A provision for onerous contracts is recognised when the
expected benefits to be derived by the Company from a
contract are lower than the unavoidable cost of meeting
its obligations under the contract. The provision is
measured at the present value of the lower of the expected
cost of terminating the contract and the expected net
cost of continuing with the contract. Before a provision
is established, the Company recognises any impairment
loss on the assets associated with that contract.

A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain
future events beyond the control of the Company or a
present obligation that is not recognized because it is not
probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in
extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably.
The Company does not recognize a contingent liability
but discloses its existence in the Standalone financial
statements. Provisions and contingent liability are
reviewed at each balance sheet.

q. Related party transactions

The transactions with related parties are made on
terms equivalent to those that prevail in arm''s length
transactions. Outstanding balances at the period-end are
unsecured and settlement occurs in cash or credit as per
the terms of the arrangement. Impairment assessment
is undertaken each financial year through examining the
financial position of the related party and the market in
which the related party operates.

r. Commitments

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

• estimated amount of contracts remaining to be
executed on capital account and not provided for;

• uncalled liability on shares and other
investments partly paid;

• funding related commitment to subsidiary, associate
and joint venture companies; and

• other non-cancellable commitments, if any, to the
extent they are considered material and relevant in
the opinion of management. Other commitments
related to sales/ procurements made in the normal
course of business are not disclosed to avoid
excessive details.

s. Earnings per share

Basic earnings per equity share is computed by dividing
the net profit attributable to the equity shareholders
of the Company by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding
during the period is adjusted for events such as fresh
issue, bonus issue that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

Diluted earnings per equity share is computed by dividing
the net profit attributable to the equity shares holders of

the Company by the weighted average number of equity
shares considered for deriving basic earnings per equity
share and also the weighted average number of equity
shares that could have been issued upon conversion
of all dilutive potential equity shares. Potential equity
shares are deemed to be dilutive only if their conversion
to equity shares would decrease the net profit per share
from continuing ordinary operations. Potential dilutive
equity shares are deemed to be converted as at the
beginning of the period, unless they have been issued at a
later date. Dilutive potential equity shares are determined
independently for each period presented.

t. Investments in Subsidiaries, Associates and Joint
Ventures

A subsidiary is an entity that is controlled by another entity.

An associate is an entity over which the Company has
significant influence. Significant influence is the power to
participate in the financial and operating policy decisions
of the investee but does not have control or joint control
over those policies.

A joint venture is a type of joint arrangement whereby
the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint
control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about
the relevant activities require unanimous consent of the
parties sharing control.

The Company''s investments in its subsidiaries,
associates and joint ventures are accounted at cost
less impairment.

Impairment of Investments

The Company reviews its carrying value of investments
carried at cost annually, or more frequently when there
is indication for impairment. If the recoverable amount
is less than its carrying amount, the impairment loss is
recorded in the Statement of Profit and Loss.

When an impairment loss subsequently reverses, the
carrying amount of the Investment is increased to the
revised estimate of its recoverable amount, so that the
increased carrying amount does not exceed the cost
of the Investment. A reversal of an impairment loss is
recognised immediately in Statement of Profit or Loss.

u. Changes in accounting policies and disclosures
New and amended standards

The Company applied for the first-time certain standards
and amendments, which are effective for annual periods
beginning on or after 1 April 2024. The Company has not
early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.

The Ministry of Corporate Affairs has notified Companies
(Indian Accounting Standards) Amendment Rules, 2024
to amend the following Ind AS which are effective for
annual periods beginning on or after 1 April 2024.

(i) Ind AS 117 Insurance Contracts

(ii) Amendment to Ind AS 116 Leases - Lease Liability in
a Sale and Leaseback

These amendments had no significant impact on
the accounting policies and disclosure made in the
Standalone financial statements of the Company.

(a) During the current year, Company has transferred its investment property to property, plant and equipment and
equipment at its carrying value.

(b) Fair value as on 31 March 2024 was INR 443.61 Lakhs, based on the valuation performed by accredited independent
valuer and a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The
fair value of the investment properties had been derived using the market comparable approach (market value method /
sale comparison technique) based on recent market prices without any significant adjustments being made to the market
observable data. A valuation model in accordance with that issued by the Indian Valuation Standards Board had been applied.

a) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with
any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any
director is a partner, a director or a member other than mentioned in receivable from related party (refer note 44).

b) Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days for construction contracts,
payment is generally due upon completion of milestone as per terms of contract. Further, in case of sale of material the
performance obligation is satisfied upon delivery of the material and payment is generally due within 45 to 90 days form
the date of delivery. In certain contracts, short term advances are received before the performance obligation is satisfied.

c) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses
on trade receivables and contract assets. The Company follows the simplified approach for recognition of impairment
allowance on trade receivables and contract assets. The application of the simplified approach does not require the
Company to track changes in credit risk. Rather, it recognises impairment allowance based on lifetime ECLs at each
reporting date. ECL impairment loss allowance (or reversal) recognised during the period is recognised in the Statement
of Profit and Loss. This amount is reflected under the head ''other expenses'' in the Statement of Profit and Loss.

(ii) During the previous year, the Company had allotted 31 Lakhs equity shares of INR 10 each pursuant to exercise of
convertible share warrants issued in earlier period, at a premium of INR 150 each. Consequently, share capital and
share premium of the Company increased by INR 310.00 Lakhs and INR 4,650.00 Lakhs respectively.

(iii) During the previous year, the Company had issued 79.48 Lakhs equity shares of INR 10 each in Qualified
Institutional Placement (''QIP'') at a premium of INR 241.65 each. Consequently, share capital and share premium
of the Company increased by INR 794.75 Lakhs and INR 19,205.24 Lakhs respectively.

(d) Terms/Rights attached to equity shares

i) The Company has only one class of equity shares having a par value of INR 10 per share.

ii) The Company declares and pays dividends in Indian rupees. However, no dividend is declared or paid in current year.

iii) In the event of liquidation of the Company, the holders of shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts, in proportion to their shareholding.

iv) Every member of the Company holding equity shares has a right to attend the General Meeting of the Company
and has a right to vote in proportion to his share of the paid-up capital of the Company.

Terms and conditions of the borrowings

(a) The principal amount is payable after moratorium of 2 to 3 months in 13 to 14 quarterly instalments. These
debentures are secured by hypothecation of identified formwork, plant & machinery and properties against which
these loans are taken along with Personal & Corporate guarantee by Promoters & Promoter group. Subservient
charge is on all the current assets of the Company.

(b) Term loan from bank carries interest ranging between 7.40% p.a. to 12.51% p.a. (Previous year : 8.08% p.a. to 13.75%
p.a.). These loans are repayable in 36 to 60 months with structured monthly installments ranging between INR 0.25
Lakhs to INR 32.92 Lakhs each along with interest, from the date of loan. These loans are secured by hypothecation
of respective asset against which these loans are taken with additional mortgage / charge aggregating to an
amount of INR 13,019.98 Lakhs (March 31, 2024 INR 23,451.99 Lakhs), on the plant and machinery and formwork
placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by the
personal guarantee of directors of the Company.

(c) Term loan from financial institutions carries interest ranging between 9.25% p.a. to 13.50% p.a. (Previous year
: 10.00% to 12.71% p.a.). These loans are repayable in 24 to 180 months with structured monthly installments
ranging between INR 0.12 Lakhs to INR 47.30 Lakhs each along with interest, from the date of loan. These loans
are secured by hypothecation of respective asset against which these loans are taken with additional mortgage
/ charge aggregating to an amount of INR 7,888.82 Lakhs (March 31, 2024 INR 6,046.37 Lakhs) on the plant
and machinery placed at various sites and used for the purpose of construction. Further, these loans has been
guaranteed by the personal guarantee of directors of the Company.

39 Segment information

The Company is engaged in contracts/assignments of Engineering, Procurement, and Construction. In the context of Ind
AS 108 on Segment Reporting though the Company has operating model defined based on the nature of contract with
customers, the reportable segment is one considering similar risk profile and common infrastructure facilities and resources.
Also, the Board of Directors is the Chief Operating Decision Maker and reviews the results of the Company as one segment
for performance assessment and resource allocation.

43 Disclosure pursuant to Ind AS 19 "Employee Benefits

The Company''s contribution to Provident Fund for the year 2024-25 aggregating to INR 241.21 Lakhs (Previous Year:
INR 186.49 Lakhs), INR 1.96 Lakhs (Previous Year : INR 2.36 Lakhs) for ESIC has been recognised in the statement of profit
and loss under the head employee benefit expenses. (refer note 32).

The Company operates a gratuity plan covering qualifying employees. The benefit vests upon completion of five years of
continuous service and once vested it is payable to employees on retirement or on termination of employment. The gratuity
benefits payable to the employees are based on the employee''s service and last drawn basic salary at the time of leaving.
The employees do not contribute towards this plan and the full cost of providing these benefits are met by the Company. In
case of death while in service, the gratuity is payable irrespective of vesting. The Company''s obligation towards Gratuity is a
Defined Benefit plan which is funded.

The average duration of the defined benefit plan obligation at the end of the reporting period is 2 years (31 March
2024 - 15 years).

* During the year ended 31 March 2024, no actuarial valuation is done for computing gratuity liability related to executive directors. Further, the
Company has provided for the liability for executive directors amounting to INR 60 Lakhs as on 31 March 2024. However, during the year ended
31 March 2025, provision for employee benefit for executive directors has been considered during acturial valuation.

The Company is exposed to the following risks in the defined benefits plans :

Investment risk : The present value of the defined benefit obligation is calculated using a discount rate which is
determined by reference to market yields at the end of the reporting period on government bonds. If the return on
plan assets is below this rate, it will create a plan deficit.

Interest risk : A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by
increase in the return on the plan''s debt investments.

Longevity risk : The present value of the defined benefit plan liability is calculated by reference to the best estimate of
the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan
participants will increase the plan''s liability.

Salary growth risk : The present value of the defined benefit plan is calculated with the assumption of salary increase
rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate
of increase in salary used to determine the present value of obligation will have abearing on the plan''s liability.

Compensated absences (unfunded)

In respect of Compensated absences, accrual is made on the basis of a year-end actuarial valuation. the Company has
provided for compensated absences based on the actuarial valuation done as per Project Unit Credit Method. The leave
obligation cover the Company''s liability for earned leave. The amount of the provision of INR 115.30 lakhs (31 March
2024: INR 78.87 lakhs) is presented as current. The Company has provided INR 36.43 lakhs (31 March 2024: INR 12.24
lakhs) for Compensated absences in the Statement of Profit and Loss.

business practice, the Company determines the transaction price considering the amount it expects to be entitled
in exchange of transferring promised goods or services to the customer. Such sales generally include payment
terms requiring related party to make payment within 45 to 90 days from the date of invoice.

Trade receivables outstanding balances are unsecured and require settlement in cash. No guarantee or other
security has been received against these receivables.

(ii) Purchases of goods, property, plant and equipment and services received from related parties and related
balances

Purchases are made / services received from related parties on the same terms as applicable to third parties in an
arm''s length transaction and in the ordinary course of business. The Company mutually negotiated and agreed
purchase price and payment terms by benchmarking the same transactions with non-related parties entered into
by the counter-party. Such purchases generally include payment terms requiring the Company to make payment
within 90 to 180 days from the date of invoice. Trade payables outstanding balances are unsecured, interest free
and require settlement in cash. No guarantee or other security has been given against these payables.

(iii) ^A Compensation to Key Management Personnel (KMP)

The amounts disclosed in the above table are the amounts recognised as an expense during the financial year
related to KMP. The amounts do not include expense, if any, recognised toward post-employment benefits and
other long-term benefits of KMP unless actually paid during the year. Such expenses are measured based on an
actuarial valuation. Hence, amounts attributable to KMPs are not separately determinable.

(iv) Loan from Director

During the year, the Company has taken loan from Director. The loan has been utilized by the Company for the
purpose it was obtained. The loan carries interest at 12.50% p.a. and is repayable on demand.

(v) Guarantee Given

The Company has given performance and financial guarantee against construction contract entered into by the
Associate with the ultimate customer. As per the construction contract entered into by the Associate with the
ultimate customer, the Associate needs to complete construction of the building as per the contractual terms. If
the Associate fails to complete the construction within stipulated time, the Company will need to complete the
construction. The Company does not have the right to recover losses from Associates. The Company expects that
its Associates will complete the construction within the prescribed time limit.

(vi) Leasing arrangement

The Comapny has taken office space on lease from Director for a period of 3 years. The lease requires the
Company to pay fixed lease rental on a monthly basis. At the end of initial lease term, the lease agreement is
renewable based on mutual negotiation and agreement.

45 Significant accounting judgements, estimates and assumptions

The preparation of the Company''s standalone financial statements requires management to make judgements, estimates
and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.
The estimates and associated assumptions are based on historical experience and other factors that are considered to be
relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods

Key sources of estimation uncertainty

In the process of applying the Company''s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the standalone financial statements:

i) Project revenue and costs

The Company recognises revenue and profit/loss on the basis of (Input method) entity''s efforts i.e. costs incurred on an
accrual basis to the total expected inputs to the satisfaction of that performance obligation. The recognition of revenue
and profit/loss therefore rely on estimates in relation to total estimated costs of each contract. Cost contingencies are
included in these estimates to take into account specific uncertain risks, or disputed claims against the Company, arising
within each contract. These contingencies are reviewed by the Management on a regular basis throughout the contract
life and adjusted where appropriate The revenue on contracts may also include variable consideration (variations and
claims). Variable consideration is recognised when the recovery of such consideration is highly probable. Also read
with note 3(c).

ii) Cost to complete

For assessing onerous contracts the Company is required to estimate the costs to complete of each contract. Provision
for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable
based on the expected contract estimates at the reporting date.

iii) Impairment of financial assets and contract assets

The Company''s Management reviews periodically items classified as receivables and contract assets to assess whether
a provision for impairment should be recorded in the statement of profit and loss. Management estimates the amount
and timing of future cash flows when determining the level of provisions required. Such estimates are necessarily based
on assumptions about several factors involving varying degrees of judgement and uncertainty. Details of impairment
provision on contract assets and trade receivable are given in Note 9 & 14.

The Company reviews its carrying value of investments annually, or more frequently when there is indication for
impairment. If the recoverable amount is less than it''s carrying amount, the impairment loss is accounted for. Also read
with note 3(g).

iv) Litigations

From time to time, the Company is subject to legal proceedings the ultimate outcome of each being always subject
to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a
payment will be made, and the amount of the loss can be reasonably estimated. Significant judgement is made when
evaluating, among other factors, the probability of unfavourable outcome and the ability to make a reasonable estimate
of the amount of potential loss. Litigation provisions are reviewed at each Balance Sheet date and revisions made for
the changes in facts and circumstances. Litigations and contingent liabilities are disclosed in note 41.

v) Defined benefit plans

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial
valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that
may differ from actual developments in the future. These include the determination of the discount rate, future salary
increases and mortality rates (refer note 3(j)). All assumptions are reviewed at each Balance Sheet date.

vi) Useful lives of property, plant and equipment, investment property and intangible assets

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of
the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc.
The Company reviews the useful life of property, plant and equipment, investment property and intangible assets as at
the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in
future periods.Useful lives are based on Schedule II of Companies Act and where the same is different, the Company
has technical opinion for the same. Further, the useful life estimate is consistently being followed year-on-year. Also
read with note 3(d).

vii) Operating lease commitments - Company as lessee

The Company has entered into leases for office premises. The Company has determined, based on an evaluation of the
terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life
of the office premises and the fair value of the asset, that it retains all the significant risks and rewards of ownership of
these properties and accounts for the contracts as operating leases. Also read with note 3(o).

46 Disclosures on Financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional
information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis
on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity
instrument are disclosed in accounting policies, to the financial statements.

(A) Fair Values:

The following tables presents the carrying amount and fair value of each category of financial assets and liabilities as at
31 March 2025 and 31 March 2024.

Fair value of financial assets and financial liabilities measured at amortised cost:

The carrying amounts of trade receivables, loans, advances and cash and other bank balances are considered to be the
same as their fair values due to their short term nature. The carrying amounts of long term loans given with floating rate
of interest are considered to be close to the fair value.

The carrying amounts of trade and other payables are considered to be the same as their fair values due to their short
term nature. The carrying amounts of borrowings with floating rate of interest are considered to be close to the fair value

The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments
by valuation techniques.

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable.

47 Revenue from Contracts with Customers
1. Principal revenue generating activities

The Company is primarily engaged in the business of Engineering, Procurement and Construction. The Company
measures progress and recognizes revenue over time contracts using the input method, based on the actual cost of
work performed at the end of the reporting period as a percentage of the estimated total contract costs at completion.
The input method faithfully depicts the Company''s performance in transferring control of goods and services
to the customer, provides meaningful information in respect of satisfied and unsatisfied performance obligation
towards the customer.

Information about the Company''s performance obligations are summarised below:

Engineering, procurement and construction on Lump-sum basis: Engineering, procurement and construction on
Lump-sum basis is considered to have one performance obligation since the activities are not distinct within the
context of contract. The performance obligations is satisfied over the contract period using input based measure of
progress as a method of accounting.

Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days. Trade receivables are reduced
by provision for expected credit losses.

Contract assets is the right to consideration in exchange for goods or services transferred to the customer. If the
Company performs by transferring goods or services to a customer before the customer pays consideration or before
payment is due, a contract asset is recognized for the earned consideration that is conditional. For each contract, the
revenue recognized at the contract''s measure of progress using input method, after deducting the progress payment
received or receivable from the customers, is presented within the contract assets line item in the balance sheet as
project excess cost.

A contract liability is the obligation to transfer goods or service to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer.

The Company''s contracts may result in recognising revenue in excess of billings done as "Project excess costs” on
balance sheet under Contract Asset. The company''s contract may also result in recognising revenue less than the
amounts billed to the customer, which is classified as "Billings in excess of costs and estimated earnings” on the balance
sheet under contract liabilities."

4. There is no reconciliation of the amount of revenue recognised in the statement of profit and loss with the contracted
price since there is no adjustment such as discount, liquidated damages etc.

5. Transaction price allocated to the remaining performance obligations

The aggregate value of transaction price allocated to unsatisfied or partially satisfied performance obligation is INR
9,73,856.81 Lakhs as at 31 March 2025, (INR 8,74,253.36 Lakhs as at 31 March 2024) out of which part of performance
obligation is expected to be recognised as revenue in next year and balance thereafter. The unsatisfied or partially
satisfied performance obligations are subject to variability due to several commercial and economic factors.

The Company''s operations are mainly confined in India. As such, there are no reportable geographical segments.

48 Capital Management

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

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 adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing

(i) Debt is defined as current borrowings (including current maturities) and non-current borrowings.

(ii) Equity is defined as equity share capital and other equity including reserves and surplus.

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 interest-bearing loans and borrowings that define capital structure
requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and
borrowings.There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in
the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March
2025 and 31 March 2024.

49 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, trade and other payables and other financial liabilities. The
main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets
include trade and other receivables, cash and cash equivalents, other bank balances and other financial assets that derive
directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the
management of these risks. The Company''s senior management is supported by a risk management committee that advises
on financial risks and the appropriate financial risk governance framework for the Company. 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.The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below:

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises of interest rate risk and price risk. Financial instruments affected by market risk
include borrowings and FVTPL Investments.

a) 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. Further, the Company has
borrowings with fixed interest rates ranging between 7.40% to 14.80%.

The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate borrowings.

b) Interest rate sensitivity:

The sensitivity analysis below have been determined based on exposure to interest rates for long-term debt
obligations with floating interest rates at the end of the reporting period and the stipulated change taking place at
the beginning of the financial year and held constant throughout the reporting period in case of term loans that
have floating rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, following is the
impact on profit and pre-tax equity. A positive effect in basis points leads to decrease in profit and negative effect
is increase in profit.

B) Price Risk

The Company''s exposure to Price risks arises from investments in equity shares and mutual funds amounting to
INR 214.86 Lakhs (Previous Year INR 8.5 Lakhs). The investments are held for strategic rather than trading purpose.
The sensitivity analysis has been determined based on the exposure to price risk at the end of the reporting period. If
the prices of the above instruments had been 5% higher/lower, profit for the year ended 31 March 2025 would increase/
decrease by INR 10.74 Lakhs (Previous year by INR 0.43 Lakhs).

C) 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 contract assets) and from its financing activities, including deposits with banks and financial institutions and other
financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external
rating agencies or based on Companies internal assessment.

Trade receivables

The major exposure to credit risk at the reporting date is primarily from trade receivables and contract assets.

The Company''s customer profile includes mainly large private corporates and government bodies. The Company''s
average project execution cycle is around 36 to 48 months. General payment terms include mobilisation advance,
monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released
at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has
a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper
attention and focus for realisation.

Unbilled revenue (Contract assets)

The costs incurred on projects are regularly monitored through the Project budgets. Costs which are incurred beyond
the agreed terms and conditions of the contract, would be claimed from the customer, based on the actual works
performed. The realisability of such claims, is verified by professionals, who certify the tenability of such claims and
also the collectible amounts, by applying appropriate probabilities. Costs, which are identified as non tenable or costs
beyond the collectible amounts, as mentioned above, would be provided in the books of accounts.

For trade receivables and contract assets, as a practical expedient, the Company computes credit loss allowance based
on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected
life of trade receivables and contract assets.

D) Liquidity risk

Liquidity risk refers to the risk that the Company will encounter difficulty in meeting its financial obligations. The
objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as
per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve
borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles
of financial assets and liabilities.The Company assessed the concentration of risk with respect to refinancing its debt
and concluded it to be low.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual
undiscounted payments.

50 Non-current Assets held for sale

Company has classified certain properties as Non current Assets held for sale which were acquired as realisation of
receivables. Company has active committed plan to sale the properties and expects to complete the sale within next 12
months. Further, consultant has been appointed to sell these properties. Also, entered into arrangement for sale of certain
properties and received advance against same.

Certain properties are hypothecated against the borrowings (refer note 19)

51 The Company had completed the merger of CIPL-PPSL- Yongnam Joint Venture Constructions Private Limited (Yongnam)
with effect from June 30, 2024. The scheme was filed with the Registrar of Companies on July 02, 2024.

The scheme of Merger ("scheme”) submitted by the Company was approved by the Hon''ble National Company Law Tribunal
by its order dated May 21, 2024 (Mumbai Bench). The transferor Company, Yongnam was wholly owned subsidiary of the
Company. As per the terms of the Scheme, the Company has recorded the accounting treatment of this merger with effect
from the beginning of the comparative period.

Amalgamation is the business combination under common control and hence accounted as per the ""Pooling of interest
method'' as prescribed in Appendix C of Ind AS 103: Business combinations. Accordingly, the figures for comparative periods
have been restated as if the business combination had occurred from the beginning of the earliest period presented in the
financial results, Summary of restatement is given below:

52 The Code on Social Security 2020 (''Code'') relating to employee benefits during employment and post-employment benefits
received Presidential assent in September 2020. The code has been published in the Gazette of India. Certain sections of the
code came into effect on 3rd May 2024. However, the final rules/interpretation have not yet been issued. The Company is
assessing the impact, if any, of the Code.

53 The Company had long outstanding Trade Receivables of INR 1,155.93 Lakhs recoverable from one party which was written
off as Bad-debts/Provided as Expected Credit Loss Allowance in the earlier periods. National Company Law Tribunal,
Amaravati Bench (AP), appointed Resolution Professional (RP) relating to settlement of said Receivable and RP has approved
an amount of INR 1,155.93 Lakhs against Company''s claim of INR 1,583.14 Lakhs. Considering this fact and currently the
Company is in the process of getting the settlement done and to recover the said amount immediately post the settlement
agreement and accordingly it had recorded the recovery of said receivables by giving effect in Other Income/Expected
Credit Loss Allowance during the year ended March 31, 2024 based on future recoverability projections. The Statutory
Auditors have expressed modified opinion in respect of this matter.

54 Against certain trade receivables, other exposures and contract assets gross amount of INR 6,361.76 Lakhs as on March 31,
2025, the Company has entered into agreements with respective parties and got allotment letter in its favour. The Company
has taken legal steps before various legal forums namely NCLT, High Court, RERA Authorities, etc. to register the respective
flats in its name including enforcement of available security to recover amount and secure its commercial interest. The
outcome of such legal action is not ascertainable at present. The management is confident of its recoverability in due course
and hence no further provision is required in the audited Standalone financial statement.

55 The Company has used accounting software (Strategic ERP) for maintaining its books of account which has a feature of
recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded
in the software. Further, there are no instance of audit trail feature being tampered with.

Additionally, the Company has recorded and preserved audit trail in full compliance with the requirements of section
128(5) of the Companies Act, 2013, in respect of the financial years 2024-25. Further, in respect of the financial year 2023¬
24 the Company has preserved the requirements of recording audit trail to the extent it was enabled and recorded in
respect of that year.

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

(iv) The Company have not traded/ invested in Crypto currency or Virtual currency during the financial year.

(v) The Company have not advanced or loaned or invested fund to any other person (s) or entity (ies), including foreign
entities (intermediaries) with the understanding that intermediary shall :

(a) 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

(b) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have 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:

(a) 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

(b) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
n

---

Mar 31, 2024

p. Provisions and Contingencies

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established,

the Company recognises any impairment loss on the assets associated with that contract.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the standalone financial statements. Provisions and contingent liability are reviewed at each balance sheet.

q. Related party transactions

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the period-end are unsecured and settlement occurs in cash or credit as per the terms of the arrangement. Impairment assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

r. Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

• estimated amount of contracts remaining to be executed on capital account and not provided for;

• uncalled liability on shares and other investments partly paid;

• funding related commitment to subsidiary, associate and joint venture companies; and

• other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management. Other commitments related to sales/ procurements made in the normal course of business are not disclosed to avoid excessive details.

s. Earnings per share

Basic earnings per equity share is computed by dividing the net profit attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as fresh issue, bonus issue that have changed the number of equity shares outstanding, without a corresponding change in resources.

Diluted earnings per equity share is computed by dividing the net profit attributable to the equity shares holders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. Dilutive potential equity shares are determined independently for each period presented.

t. Investments in Subsidiaries, Associates and Joint Ventures

A subsidiary is an entity that is controlled by another entity.

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

The Company''s investments in its subsidiaries, associates and joint ventures are accounted at cost less impairment.

Impairment of Investments

The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is recorded in the Statement of Profit and Loss

When an impairment loss subsequently reverses, the carrying amount of the Investment is increased to the revised estimate of its recoverable amount, so that the increased carrying amount does not exceed the cost of the Investment. A reversal of an impairment loss is recognised immediately in Statement of Profit or Loss

u. Changes in accounting policies and disclosures

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated 31 March 2023 to

amend the following Ind AS which are effective for annual periods beginning on or after 1 April 2023.

• Definition of Accounting Estimates -

Amendments to Ind AS 8

• Disclosure of Accounting Policies -Amendments to Ind AS 1

• Deferred Tax related to Assets and

Liabilities arising from a Single Transaction -Amendments to Ind AS 12

These amendments had no significant impact on the accounting policies and disclosure made in the standalone financial statements of the Company.

v. Standards notified but not yet effective

There are no standards that are notified and not yet effective as on the date.

Notes:

a) No trade or other receivable are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member other than mentioned in receivable from related party (refer note 44).

b) Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days for construction contracts, payment is generally due upon completion of milestone as per terms of contract. In certain contracts, short term advances are received before the performance obligation is satisfied.

c) The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment losses on trade receivables and contract assets. The Company follows the simplified approach for recognition of impairment allowance on trade receivables and contract assets. The application of the simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment allowance based on lifetime ECLs at each reporting date. ECL impairment loss allowance (or reversal) recognised during the period is recognised in the Statement of Profit and Loss. This amount is reflected under the head ''other expenses'' in the Statement of Profit and Loss.

Previous year note:

d) In FY 2022-23, the promoter group has entered into an agreement with Company by which any shortfall in the realisation by 30th September 2023, against the outstanding carrying value of INR 2,746.53 Lakhs from certain parties shall be made good to the Company. The said carrying value includes trade receivable of INR 1,440.84 Lakhs and contract asset of INR 1,305.69 Lakhs as on balance sheet date. Considering the same, in previous year trade receivable and contract asset of the said parties as on the balance sheet date has been considered secured and good.

(b) Term loan from bank carries interest ranging between 8.08% p.a. to 13.75% p.a. (Previous year : 7.40% p.a. to 14.70% p.a.). These loans are repayable in 36 to 60 months with structured monthly instalments ranging between INR 0.25 Lakhs to INR 196.68 Lakhs each along with interest, from the date of loan. These loans are secured by hypothecation of respective equipment''s/vehicles against which these loans are taken with additional mortgage / charge aggregating to an amount of INR 23,451.99 Lakhs (March 31, 2023 INR 14,195.76.04 Lakhs), on the plant and machinery and formwork placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by the personal guarantee of Mr. Rohit Katyal (Director) and Mr. Rahul Katyal (Director) of the Company.

(c) Term loan from financial institutions carries interest ranging between 10.00% to 12.71% p.a (Previous year : 8.00% p.a. to 12.50% p.a.). These loans are repayable in 24 to 180 months with structured monthly instalments ranging between INR 0.12 Lakhs to INR 14.00 Lakhs each along with interest, from the date of loan. These loans are secured by hypothecation of respective equipment''s against which these loans are taken with additional mortgage / charge aggregating to an amount of INR 6,046.37 Lakhs (March 31, 2023 INR 15,297.44 Lakhs) on the plant and machinery placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by the personal guarantee of Mr. Rohit Katyal (Director) and Mr. Rahul Katyal (Director) of the Company.

(d) Working capital loan from banks is secured against Mortgage of fixed assets and Hypothecation of inventory, trade receivables, and other current assets on pari passu basis with other member banks in the consortium. The working capital loan is repayable on demand and carries interest range between 6 Month to 1 year MCLR 2.50% to 6.50% presently, in range of 10% p.a. to 14.00% p.a.

(e) Mr. Rohit Katyal indemnified the value of trade receivables to the extent of INR 550 lakhs in respect of Tridhatu group.

(f) ICD carries interest Rate of 12.00% p.a. The principal amount is repayable within 6 months from date of first disbursement. These deposits are secured against guarantee of Mr. Rohit Katyal (Director) and Mr. Rahul Katyal (Director) of the Company.

(g) The Company has satisfied all the covenants prescribed in the terms of borrowings, except for Redeemable non convertible debentures which has been fully repaid during the year.

(h) In previous year,

loan from directors are unsecured and subject to the guarantees provided by Mr. Rohit Katyal and Rahul Katyal in respect of outstanding trade receivable as covered in note 9. The loan will get adjusted to the extent of short fall in recovery of the specified trade receivable before September 30, 2023.

(i) The Company has been sanctioned working capital limits in excess of INR Five crores in aggregate from banks during the year on the basis of security of current assets of the Company. The quarterly returns / statements filed by the Company with such banks are not in agreement with the books of account of the Company.

The Company is exposed to the following Risks in the defined benefits plans :

Investment risk: The present value of the defined benefit obligation is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan assets is below this rate, it will create a plan deficit.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by increase in the return on the plan''s debt investments.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary growth risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have abearing on the plan''s liability.

Compensated absences (unfunded)

In respect of Compensated absences, accrual is made on the basis of a year-end actuarial valuation. the Company has provided for compensated absences based on the actuarial valuation done as per Project Unit Credit Method. The leave obligation cover the Company''s liability for earned leave. The amount of the provision of INR 78.87 lakh (31 March 2023: INR 66.63 lakh) is presented as current. The Company has provided INR 12.24 lakh (31 March 2023: INR 31.92 lakh) for Compensated absences in the Statement of Profit and Loss.\

Note:

a) During the year, promoters has indemnified against certain receivables. As at year end promoters indemnity against receivable is INR 550.00 Lakhs.

b) Refer note 19 for personal guarantee provided by promoters created in respect of borrowing by the Company.

c) Refer note 41 for performance guarantee on behalf of the associate entity.

45 Significant accounting judgements, estimates and assumptions

The preparation of the Company''s standalone financial statements requires management to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods

Key sources of estimation uncertainty

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the standalone financial statements:

i) Project revenue and costs

The Company recognises revenue and profit/loss on the basis of (Input method) entity''s efforts i.e. costs incurred on an accrual basis to the total expected inputs to the satisfaction of that performance obligation. The recognition of revenue and profit/loss therefore rely on estimates in relation to total estimated costs of each contract. Cost contingencies are included in these estimates to take into account specific uncertain risks, or disputed claims against the Company, arising within each contract. These contingencies are reviewed by the Management on a regular basis throughout the contract life and adjusted where appropriate The revenue on contracts may also include variable consideration (variations and claims). Variable consideration is recognised when the recovery of such consideration is highly probable. Also read with note 3(c).

ii) Cost to complete

For assessing onerous contracts the Company is required to estimate the costs to complete of each contract. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

iii) Impairment of financial assets and contract assets

The Company''s Management reviews periodically items classified as receivables and contract assets to assess whether a provision for impairment should be recorded in the statement of profit and loss. Management estimates the amount and timing of future cash flows when determining the level of provisions required. Such estimates are necessarily based on assumptions about several factors involving varying degrees of judgement and uncertainty. Details of impairment provision on contract assets and trade receivable are given in Note 9.

The Company reviews its carrying value of investments annually, or more frequently when there is indication for impairment. If the recoverable amount is less than it''s carrying amount, the impairment loss is accounted for. Also read with note 3(g).

vi) Litigations

From time to time, the Company is subject to legal proceedings the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made, and the amount of the loss can be reasonably estimated. Significant judgement is made when evaluating, among other factors, the probability of unfavourable outcome and the ability to make a reasonable estimate of the amount of potential loss. Litigation provisions are reviewed at each Balance Sheet date and revisions made for the changes in facts and circumstances. Litigations and contingent liabilities are disclosed in note 41.

v) Defined benefit plans

The cost of the defined benefit plans and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates (refer note 3(j)). All assumptions are reviewed at each Balance Sheet date.

vi) Useful lives of property, plant and equipment, investment property and intangible assets

The Company has estimated useful life of each class of assets based on the nature of assets, the estimated usage of the asset, the operating condition of the asset, past history of replacement, anticipated technological changes, etc. The Company reviews the useful life of property, plant and equipment, investment property and intangible assets as at the end of each reporting period. This reassessment may result in change in depreciation and amortisation expense in future periods.Useful lives are based on Schedule II of Companies Act and where the same is different, the Company has technical opinion for the same. Further, the useful life estimate is consistently being followed year-on-year. Also read with note 3(d).

vii) Operating lease commitments - Company as lessee

The Company has entered into leases for office premises. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the office premises and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases. Also read with refer note 3(o).

46 Disclosures on Financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in accounting policies, to the financial statements.

(A) Fair Values:

The following tables presents the carrying amount and fair value of each category of financial assets and liabilities as at 31 March 2024 and 31 March 2023.

Fair value of financial assets and financial liabilities measured at amortised cost:

The carrying amounts of trade receivables, loans, advances and cash and other bank balances are considered to be the same as their fair values due to their short term nature. The carrying amounts of trade and other payables are considered to be the same as their fair values due to their short term nature. The carrying amounts of interest bearing borrowings are considered to be close to the fair value.

The Company uses the following hierarchy for determining and / or disclosing the fair value of financials instruments by valuation techniques.

Level 1 — Quoted (unadjusted) market prices inactive markets for identical assets or liabilities;

Level 2 — Valuation techniques for which the lowest level input that is significant to the fairvalue measurement is directly or indirectly observable;

Level 3 — Valuation techniques for which the lowest level input that is significant to the fairvalue measurement is unobservable.

There has been no transfers between level 1 & level 2 during the year.

M Revenue from Contracts with Customers

1. Principal revenue generating activities

The Company is primarily engaged in the business of Engineering, Procurement and Construction. The Company measures progress and recognizes revenue over time contracts using the input method, based on the actual cost of work performed at end of the reporting period as a percentage of the estimated total contract costs at completion. The input method faithfully depicts the Company''s performance in transferring control of goods and services to the customer, provides meaningful information in respect of satisfied and unsatisfied performance obligation towards the customer.

Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days. Trade receivables are reduced by provision for expected credit losses.

Contract assets is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional. For each contract, the revenue recognized at the contract''s measure of progress using input method, after deducting the progress payment received or receivable from the customers, is presented within the contract assets line item in the balance sheet as project excess cost.

A contract liability is the obligation to transfer goods or service to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer.

The Company''s contracts may result in recognising revenue in excess of billings done as "Project excess costs” on balance sheet under Contract Asset. The company''s contract may also result in recognising revenue less than the amounts billed to the customer, which is classified as "Billings in excess of costs and estimated earnings” on the balance sheet under contract liabilities.

I. There is no reconciliation of the amount of revenue recognised in the statement of profit and loss with the contracted price since there is no adjustment such as discount,liquidated damages etc.

II. Transaction price allocated to the remaining performance obligations

The aggregate value of transaction price allocated to unsatisfied or partially satisfied performance obligation is INR 8,74,253.36 Lakhs as at 31 March 2024, (INR 9,27,715.68 Lakhs as at 31 March 2023) out of which part of performance obligation is expected to be recognised as revenue in next year and balance thereafter. The unsatisfied or partially satisfied performance obligations are subject to variability due to several commercial and economic factors.

The Company''s operations are mainly confined in India. The Company does not have earnings from business segment outside India. As such, there are no reportable geographical segments.

48 Capital Management

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

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 adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents. The Company is not subject to any externally imposed capital requirements.

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 interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year, except for Redeemable non convertible debentures which has been fully repaid during the year.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

49 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise borrowings, trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables, cash and cash equivalents, other bank balances and other financial assets that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. 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.The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk and price risk. Financial instruments affected by market risk include borrowings and FVTPL Investments.

a) 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 borrowings.

b) Interest rate sensitivity:

The sensitivity analysis below have been determined based on exposure to interest rates for long-term debt obligations with floating interest rates at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates.

B) Price Risk

The Company''s exposure to other risks arises from investments in equity shares amounting to INR 8.5 Lakhs (Previous Year INR 8.5 Lakhs). The investments are held for strategic rather than trading purpose.

The sensitivity analysis has been determined based on the exposure to price risk at the end of the reporting period. If the prices of the above instruments had been 5% higher/lower, profit for the year ended 31 March 2024 would increase/ decrease by INR 0.04 Lakhs (Previous year by INR 0.04 Lakhs).

C) 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 contract assets) and from its financing activities, including deposits with banks and financial institutions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on Companies internal assessment.

Trade receivables

The major exposure to credit risk at the reporting date is primarily from trade receivables and unbilled receivables. The Company''s customer profile includes mainly large private corporates and government bodies. The Company''s average project execution cycle is around 36 to 48 months. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Unbilled revenue (Contract assets)

The costs incurred on projects are regularly monitored through the Project budgets. Costs which are incurred beyond the agreed terms and conditions of the contract, would be claimed from the customer, based on the actual works performed. The realisability of such claims, is verified by professionals, who certify the tenability of such claims and also the collectible amounts, by applying appropriate probabilities. Costs, which are identified as non tenable or costs beyond the collectible amounts, as mentioned above, would be provided in the books of accounts.

For trade receivables and contract assets, as a practical expedient, the Company computes credit loss allowance based on a provision matrix. The provision matrix is prepared based on historically observed default rates over the expected life of trade receivables and contract assets.

52 Reclassification of Previous Year Financial

Certain prior year amounts have been reclassified for consistency with the current year presentation .These reclassification are mere balance sheet to balance sheet movement which does not affect the networth of the Company. These reclassification had no effect on the reported net profit for the year ended 31 March 2023 and are inconsequential to the readers of the financials nor it triggers the restatement of financials as per Ind AS 8. Further, it does not effect the decision making process of the Company. An adjustment has been made to the Standalone Balance Sheet and Standalone Statements of Cash Flows for year ended 31 March 2023, as follows:

a) Reclassified Capital advances to Capital work-in-progress by INR 1,409.62 Lakhs (Capital work-in-progress INR 2,017.63 Lakhs from INR 608.01 Lakhs and Other Non-current assets INR 6,277.44 Lakhs from INR 7,687.06 Lakhs).

b) Disclosed Contract assets on the face of balance sheet, which was earlier disclosed under Current assets by INR 92,383.91 Lakhs (Other financial current assets INR 3,482.08 Lakhs from INR 95,865.99 Lakhs).

c) Disclosed Contract liabilities on the face of balance sheet, which was earlier disclosed under Non-current liabilities by INR 13,172.58 Lakhs (Other financial Non-current liabilities INR Nil from INR 13,172.58 Lakhs).

d) Disclosed Contract liabilities on the face of balance sheet, which was earlier disclosed under Current liabilities by INR 17,862.73 Lakhs (Other financial Current liabilities INR 5,119.26 Lakhs from INR 22,981.99 Lakhs).

e) Disclosed Deposits with Original maturity more than 3 months but remaining maturity less than 3 months disclosed under Bank balances other than Cash and cash equivalents by INR 1,818.00 Lakhs (Cash and cash quivalent INR 2,047.91 Lakhs from INR 3,865.91 Lakhs and Bank balances INR 14,567.74 Lakhs from INR 12,749,74 Lakhs).

f) Reclassified Income tax receivable as net of Current tax liabilities, which was earlier disclosed under Other Non-current assets by INR 1,177.63 Lakhs (Other current asset INR 14,150.34 Lakhs from INR 15,327.97 Lakhs and Current tax liabilities INR 876.40 Lakhs from INR 2,054.03 Lakhs.

g) Reclassified interest accrued and due on borrowings from Other current financial liabilities to Current borrowings by INR 360.74 Lakhs (Current borrowing INR 25,781.54 Lakhs from INR 25,420.80 Lakhs and Other current financial liabilities INR 5,483.23 Lakhs from INR 5,843.97 Lakhs).

h) Consequential changes in cash flow statement was done due to above reclassification.

53 Impairment of Investments

Since the carrying value of the investment is lower than the fair value of investment, the Company has recognised an impairment loss on its investments made in CIPL PPSL Yongnam Joint Venture Construction Private Limited, a wholly owned subsidiary of the Company, of INR 379.58 lakhs (31 March 2023: INR 90.67 lakhs).

54 The Code on Social Security,2020 (''Code'') relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The said code is made effective prospectively from 03 May 2023. The Company is assessing the impact, if any, of the Code

55 The Company had long outstanding Trade Receivables of INR 1,155.93 Lakhs recoverable from one party which was written off as Bad-debts/Provided as Expected Credit Loss Allowance in the earlier periods. National Company Law Tribunal, Amaravati Bench (AP), appointed Resolution Professional (RP) relating to settlement of said Receivable and RP has approved an amount of INR 1,155.93 Lakhs against Company''s claim of INR 1,583.14 Lakhs. Considering this fact and currently the Company is in the process of getting the settlement done and to recover the said amount immediately post the settlement agreement and accordingly it has recorded the recovery of said receivables by giving effect in Other Income/Expected Credit Loss Allowance during the year ended 31 March 2024 based on future recoverability projections. The Statutory Auditors have expressed modified opinion in respect of this matter.

56 Against certain trade receivables, other exposures and contract assets amounting to INR 6,761.76 Lakhs as on 31 March 2024, the Company has entered into agreements with respective clients and got allotment letter in its favor. The Company has taken legal steps to register the flats in its name including enforcement of available security to recover amount and secure its commercial interest. The outcome of such legal action is not ascertainable at present. The management is confident of its recoverability in due course and hence no further provision is required in these audited Standalone financial statements.

57 The Company has migrated to Strategic ERP accounting software from BuildSmart during the year (w.e.f 1 October 2023). The audit trail feature in respect of the legacy accounting software (i.e. BuildSmart) is not enabled. Accordingly, the recording of audit trail (edit log) facility, its operation throughout the period for all relevant transactions recorded in the software and tampering of audit trail feature cannot be assessed. The new accounting software (i.e., Strategic ERP) used for maintaining its books of account has a feature of recording audit trail (edit log) facility and the same has operated throughout the period for all relevant transactions recorded in the software. Further, there are no instance of audit trail feature being tampered with in respect of new accounting software.

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

(iv) The Company have not traded of invested in Crypto currency or Virtual currency during the financial year.

(v) The Company have not advanced or loaned or invested fund to any other person (s) or entity (ies), including foreign entities (intermediaries) with the understanding that intermediary shall :

(a) 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

(b) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have 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:

(a) 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

(b) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vii) The Company did not have 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).

(viii) The Company has complied with the relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and the Companies Act, 2013 for the above transactions and the transactions are not violative of the Prevention of MoneyLaundering Act, 2002 (15 of 2003)

(ix) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

60 Previous year figures

The figures for the corresponding previous year have been regrouped / reclassified whenever necessary, to make them comparable. (also refer note 52)

As per our report of even date attached For and on behalf of the Board of Directors

For S R B C & CO LLP Capacit''e Infraprojects Limited

Chartered Accountants CIN - L45400MH2012PLC234318

ICAI Firm Registration No: 324982E/E300003

per Jai Prakash Yadav Rahul Katyal Rohit Katyal

Partner Managing Director Executive Director

Membership No: 066943 DIN: 00253046 DIN: 00252944

Rajesh Das Rahul Kapur

Chief Financial Officer Company Secretary

Membership No : A52093

Place: Mumbai Place: Mumbai

Date: 28 May 2024 Date: 28 May 2024

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Mar 31, 2023

Provisions and Contingencies

Provisions are recognised when the Company has a
present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources
embodying economic benefits will be required to
settle the obligation and a reliable estimate can be
made of the amount of the obligation. When the
Company expects some or all of a provision to be
reimbursed, for example, under an insurance contract,

the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain.
The expense relating to a provision is presented in the
statement of profit and loss net of any reimbursement.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to
the liability. When discounting is used, the increase in
the provision due to the passage of time is recognised
as a finance cost. A provision for onerous contracts
is recognised when the expected benefits to be
derived by the Company from a contract are lower
than the unavoidable cost of meeting its obligations
under the contract. The provision is measured at the
present value of the lower of the expected cost of
terminating the contract and the expected net cost
of continuing with the contract. Before a provision is
established, the Company recognises any impairment
loss on the assets associated with that contract.
A contingent liability is a possible obligation that arises
from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or
more uncertain future events beyond the control
of the Company or a present obligation that is not
recognized because it is not probable that an outflow
of resources will be required to settle the obligation. A
contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company
does not recognize a contingent liability but discloses
its existence in the standalone financial statements.
Provisions and contingent liability are reviewed at each
balance sheet.

s Related party transactions

The transactions with related parties are made on
terms equivalent to those that prevail in arm''s length
transactions. Outstanding balances at the period-
end are unsecured and settlement occurs in cash or
credit as per the terms of the arrangement. Impairment
assessment is undertaken each financial year through
examining the financial position of the related party
and the market in which the related party operates.

t Commitments

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

(i) estimated amount of contracts remaining to be
executed on capital account and not provided for;

(ii) uncalled liability on shares and other investments
partly paid;

(iii) funding related commitment to subsidiary,
associate and joint venture companies; an

(iv) other non-cancellable commitments, if any,
to the extent they are considered material
and relevant in the opinion of management.
Other commitments related to sales/ procurements
made in the normal course of business are not
disclosed to avoid excessive details.

u Dividend

(i) Proposed Dividend:

The Company recognises a liability to make cash
distributions to equity holders of the Company when
the distribution is authorised and the distribution is no
longer at the discretion of the Company. Final dividends
on shares are recorded as a liability on the date of
approval by the shareholders and interim dividends are
recorded as a liability on the date of declaration by the
Company''s Board of Directors.

(ii) Final dividend:

Final dividend on shares are recorded as a liability on
the date of approval by the shareholders and interim
dividends are recorded as a liability on the date of
declaration by the Company''s Board of Directors. The
Company declares and pays dividend in Indian rupees.
The Finance Act 2020 has repealed the Dividend
Distribution Tax (DDT). Companies are now required
to pay/distribute dividend after deducting applicable
taxes. The remittance of dividends outside India is
governed by Indian law on foreign exchange and is
also subject to withholding tax at applicable rates.

v Earnings per share

Basic earnings per equity share is computed by dividing
the net profit attributable to the equity share holders
of the Company by the weighted average number
of equity shares outstanding during the period. The
weighted average number of equity shares outstanding
during the period is adjusted for events such as fresh

issue, bonus issue that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

Diluted earnings per equity share is computed by
dividing the net profit attributable to the equity shares
holders of the Company by the weighted average
number of equity shares considered for deriving
basic earnings per equity share and also the weighted
average number of equity shares that could have

been issued upon conversion of all dilutive potential
equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would
decrease the net profit per share from continuing
ordinary operations. Potential dilutive equity shares
are deemed to be converted as at the beginning of
the period, unless they have been issued at a later
date. Dilutive potential equity shares are determined
independently for each period presented.

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Mar 31, 2018

1 CORPORATE INFORMATION

The standalone financial statements comprise financial statements of Capacit’e Infraprojects Limited (the Company) for the year ended March 31, 2018. The Company is aCompany domiciled in Indiaand incorporated under the provisions of Companies Act, 1956 on August 09, 2012. The Company is an ISO-9001:2008, ISO-14001:2004 and OHSAS-18001:2007 certified Company. Its shares are listed on two recognised stock exchanges in India. The registered office of the Company is located at 605-607, Shrikant Chambers, 6th Floor, Phase I, Adjacent to R K Studios, Sion- Trombay Road, Mumbai- 400 071 The Company is primarily engaged in the business of construction and infrastructure development. The Company was incorporated as a Private Limited Company and became a Limited Company in March 2014.

The financial statements were authorised for issue in accordance with a resolution of the directors on May 18, 2018.

2 BASIS OF PREPARATION

In accordance with the notification issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (referred to as “Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) amendment Rules 2016, as amended with effect from April 1, 2016. The standalone financial statements of the Company, have been prepared and presented in accordance with Ind AS. Previous year numbers in the standalone financial statements have been restated to Ind AS. In accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards, the Company has presented a reconciliation from the presentation of standalone financial statements under Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (“Previous GAAP”) to Ind AS of Shareholders’ equity as at March 31, 2017 and April 1, 2016 and of the comprehensive net income for the year ended March 31, 2017 (refer note 43 for reconciliations and effect of transitions). The standalone financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities (refer accounting policy regarding financial instruments) which have been measured at fair value.

The functional and presentation currency of the Company is Indian Rupee (‘T’) which is the currency of the primary economic environment in which the Company operates.

*During the year, the Company has converted the outstanding balance of loan given to CIPL PPSL YONGNAM JOINT VENTURE CONSTRUCTIONS PVT LTD., its subsidiary company into unsecured subordinated perpetual securities. During the year also, the Company has made investment in same securities. These securities are redeemable at the issuer’s option and carry non-cumulative interest coupon at the rate of dividend paid on the issuer’s ordinary shares. The interest can be deferred if the issuer does not pay any dividend on its ordinary shares for the financial year. The issuer has classified this instrument as equity under Ind AS -32 Financial Instruments Presentation. Accordingly, the Company has classified this investment as Equity Instrument and has accounted at cost as per Ind AS -27 Separate Financial Statements.

The Company has incurred share issue expenses of Rs. 2557.42 Lacs (Mar 31, 2017 Rs. 124.81 Lacs) in connection with its Initial Public Offer (IPO) of equity shares. These expenses has been adjusted against security premium as permissable under section 52 of the Companies Act, 2013 on successful completion of IPO.

* Includes INR 12,507.65 lacs as on March 31, 2018 (Nil as on March 31,2017 & April 01,2016) for work executed and submitted to customer for certification.

** Includes provision made for non-recoverability from a customer with respect to dishonour cheques aggregating to Rs. 250 lacs for which criminal proceedings have been filed by the Company under Section 138 read with section 141 of the Negotiable Instruments Act 1881.

Notes:

1) No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person.

2) Receivable from related party:

3) Trade receivables are non-interest bearing and are generally on terms of 45 to 90 days.

Expected Credit loss allowances on receivables

Impairment of financial assets: The Company recognises impairment loss on trade receivables using expected credit loss model, which involves use of a provision matrix constructed on the basis of historical credit loss experience as permitted under Ind AS 109.

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company and earn interest at the respective short-term deposit rates.

Note: In the Current year, the Company has issued 1,15,96,816 Equity Shares of face value of Rs. 10 each upon conversion of 10,07,366 Series A CCPS & 6,49,322 Series B CCPS of face value of Rs. 20 each in the ratio of 7:1.

(e) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. 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 of the company, the holders of shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts.

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

Terms and Conditions of the Borrowings

Term loan from bank carries interest ranging between 8.01% to 14.00% p.a. These loans are repayable in 17 to 84 months with structured monthly instalments ranging between Rs. 1,749 to Rs. 25,00,000 each along with interest, from the date of loan. These loans are secured by hypothecation of respective equipments/vehicles against which these loans are taken with additional mortgage/charge aggregating to an amount of Rs. 79.80 crores (PY Rs. 61.97 crores), on the plant and machinery and formwork placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by katyal Merchandise Private Ltd. & the personal guarantee of the director of the Company.

Term loan from financial institutions other than JM Financial loan carries interest ranging between 7.99% to 14.16 % p.a. These loans are repayable in 29 to 59 months with structured monthly instalments ranging between Rs. 8,625 to Rs. 5,53,160 each along with interest, from the date of loan. These loans are secured by hypothecation of respective equipments against which these loans are taken with additional mortgage/charge aggregating to an amount of Rs. 38.59 crores (PY Rs. 71.60 crores), on the plant and machinery placed at various sites and used for the purpose of construction. Further, these loans has been guaranteed by the personal guarantee of the managing director of the Company.

Loan from JM financial carries interest @ 11% p.a. to be repaid in 18 instalments of Rs. 166 lacs each commencing after 19 months from the date of disbursement. The loan has first and exclusive lien over a Cash Fixed Deposit of an amount of Rs. 3,000 lacs with HDFC Bank Ltd. Further the loan has been guaranteed by Katyal Merchandise Private limited and the personal guarantee of the promoters.

Buyer’s Credit from banks in Euro carries interest @ 6 month EURIBOR 28 bps to 80 bps and in USD ranging between 6 month LIBOR 67 bps to 80 bps. These buyer’s credit are convertible into term loan after 3 years and repayable in ranging between 5 months 8 days to 84 months considering roll over option available at the discretion of the company. The buyer’s credits are secured by hypothecation of respective equipments against which these credits are taken and additional mortgage/charge aggregating to an amount of Rs. 4 crores (PY 13.65 crores), on the plant and machinery and formwork placed at various sites and used for the purpose of construction.

Working capital loan from banks is secured against hypothecation of fixed assets, inventory, trade receivables, and other current assets on paripassu basis with other member banks in the consortium. The Working capital loan is repayable on demand and carries interest range between 1 year MCLR 1.25% to 4.35% presently, in range of 9.40% to 12.35% p.a.

Working capital loan from financial institutions is secured against DSRA and investment in Birla Sun Life Mutual Fund. The Working capital loan is repayable on demand and carries interest rate of 11.75% p.a. Further, the loan has been guaranteed by the personal guarantee of the Director of the Company.

Bills discounted with various banks from various banks are discounted at various rates ranging from 10.20%p.a. to 12.50% p.a. Tenure for bills discounted with banks are for 90 days . Bills discounted with banks are secured against the Debtors of the bill discounted.

3 ASSETS CLASSIFIED AS HELD FOR SALE

On March 24, 2017, the Company has passed a resolution to sale its investment in share of Capacite Engineering Private Limited w.e.f. April 01 2017 and accordingly in standalone financial statement of March 31, 2017, Investment in share of Capacite Enginerring Private Limited is shown as “Assets classified as held for sale” amounting to Rs. 130 lacs under Assets.

4 INCOME TAX

The Company is subject to income tax in India on the basis of standalone financial statements. As per the Income Tax Act, the Company is liable to pay income tax which is the higher of regular income tax payable or the amount payable based on the provisions applicable for Minimum Alternate Tax (MAT).

MAT paid in excess of regular income tax during a year can be carried forward for a period of 15 years and can be offset against future tax liabilities.

Business loss can be carried forward for a maximum period of eight assessment years immediately succeeding the assessment year to which the loss pertains. Unabsorbed depreciation can be carried forward for an indefinite period.

5 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.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:

6 SEGMENT REPORTING

For management purposes, the Company is organised into business units based on its services and has single reportable segments namely “Engineering, Procurement and Construction Contracts”.

The Board of directors of the Company monitors the operating results of this segment for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial statements. “

7 DETAILS OF DUES TO MICRO AND SMALL ENTERPRISES AS DEFINED UNDER THE MSMED ACT, 2006

Based on the information available with the Company, the dues payable to micro, small and medium enterprises as defined in ‘The Micro, Small & Medium Enterprises Development Act, 2006” as at March 31,2018 amounts to Rs. 177.18 Lakhs (March 31,2017: Nil & April 01, 2016: Nil)

8 DISCLOSURE PURSUANT TO IND AS 11 “CONSTRUCTION CONTRACTS”

9 CONTINGENT LIABILITIES

a) For the year 13-14 & 14-15, Company has received assessment orders under Maharashtra Value Added Tax Act,2002 (MVAT) with disallowance of input Tax Credit & Tax deducted at source amounting to Rs. 64,13,256 & Rs. 55,55,603 respectively. The Company is contemplating to proceed with an appeal against the said orders. Pending outcome of the same, no adjustment has been made in the financial statements.

b) In addition to above, with respect to certain matters relating to issue of shares in earlier years, the Company has filed a compounding application in earlier years with the National Company Law Tribunal and currently, the impact of the same on these financial statements is not ascertainable.

10 DISCLOSURE PURSUANT TO IND AS 19 “EMPLOYEE BENEFITS”

The Company operates one defined benefit plan viz. gratuity benefit for its employees which is funded. The gratuity benefit is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age. The scheme is funded with insurance companies.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity benefit plan:

The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

The weighted average duration of the defined benefit obligation is 17 years (31st March, 2017 -19 years).

The contribution expected to be made by the Company during the financial year 2018-19 is Rs. 165.03 lacs (2017-18: Rs. 146.87 lacs)

11 FIRST TIME ADOPTION TO IND-AS

These standalone financial statements, for the year ended March 31, 2018, are the first, the Company has prepared in accordance with Ind AS. For the periods upto the year ended March 31,2017, the Company prepared its standalone financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and Amendment thereof (‘Indian GAAP’ or previous GAAP).

Accordingly, the Company has prepared Standalone financial statements which comply with Ind AS applicable for the year ended March 31,2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these standalone financial statements, the Company’s opening balance sheet was prepared as at April 01,2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its previous GAAP standalone financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.

Exemption applied: A. Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Exemption availed:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following material exemptions:

A. Deemed cost-Previous GAAP carrying amount: (Property, plant and equipment, Intangible Assets and Capital work in progress)

The Company has elected to avail exemption under Ind AS 101 to use previous GAAP carrying value as deemed cost at the date of transition for all items of Property, plant and equipment, Intangible Assets and Capital work in progress as per the balance sheet prepared in accordance with previous GAAP.

B. Long Term Foreign Currency Monetary Items: (Long term foreign currency borrowings)

As per Paragraph D13AA of Ind AS 101 a first-time adopter may continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

The Company has elected to continue to the aforementioned accounting as per the previous GAAP.

C. Investment in Subsidiary

In the preparation of separate financial statements, Ind AS 27 Separate Financial Statements requires an entity to account for its investments in subsidiaries and joint venture either:

a) At cost, or

b) In accordance with Ind AS 109.

If a first-time adopter measures such an investment at cost, it can measure that investment at one of the following amounts in its separate opening Ind AS balance sheet:

- Cost determined in accordance with Ind AS 27

- Deemed cost, defined as

Fair value determined in accordance with Ind AS 113 at the date of transition to Ind AS, or Previous GAAP carrying amount at the transition date.

A first-time adopter may choose to use either of these bases to measure investment in each subsidiary and where it elects to use a deemed cost. Accordingly, the Company has opted to carry the investment in subsidiary and at previous GAAP carrying amount as at the date of transition.

Notes to reconciliation between previous GAAP and Ind AS:

i. Under Indian GAAP, the financial instruments were not fair valued. Under Ind AS, such instruments are subject to fair value on transition date and every subsequent periods. Effect of fair valuation measurements are recognised to statement of profit and loss.

ii. The Company recognises costs related to its post-employment defined benefit plan on an actuarial basis both under Indian GAAP and Ind AS. Under Indian GAAP, the entire cost including actuarial gains and losses were charged to profit or loss. Under Ind AS, remeasurements are recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through other comprehensive income (OCI). The concept of OCI did not exist under the previous GAAP.

iii. Under Indian GAAP, transaction costs incurred in connection with borrowings were amortised upfront and charged to profit or loss for the period. In accordance with Ind AS 109 “Financial Instruments”, transaction costs on borrowings are required to be considered as effective finance costs and recognised in the statement of profit and loss using the effective interest rate.

iv. In accordance with Ind AS 16, ‘Property, plant and equipment’ the assets contributed by the customers to the Company which are controlled by the Company are accounted upfront at fair value. The said assets are depreciated over the life of the assets.

v. In accordance with Ind AS 12, ‘Income Taxes’, the Company on transition to Ind AS has recognised deferred tax on temporary differences arising on account of above adjustments.

G. Effect of adoption of IndAS on the statement of cash flows for the year ended March 31, 2017:

Following is the impact on cash flows on transition from Indian GAAP to Ind-AS. Cash flows relating to interest are classified in a consistent manner as operating, investing or financing each period.

12 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company’s standalone financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

A) Significant Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the standalone financial statements:

i) Operating lease commitments - Company as lessee

The Company has entered into leases for office premises. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the office premises and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these roperties and accounts for the contracts as operating leases.

ii) Taxes

Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the same can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Refer note 33 for further disclosures.

B) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

i) Contingencies

Contingent liabilities may arise from the ordinary course of business in relation to guarantees given by the Company. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the use of estimates regarding the outcome of future events.

ii) Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations.

An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds.

The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in note 41.”

iii) Cost to complete

For assessing onerous contracts the Company is required to estimate the costs to complete of each contract. Survey of work done have been used to measure progress towards completion as there is a direct relationship. Provision for estimated losses, if any, on uncompleted contracts are recorded in the period in which such losses become probable based on the expected contract estimates at the reporting date.

13 DISCLOSURES ON FINANCIAL INSTRUMENTS

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, financial liability and equity instrument are disclosed in accounting policies, to the financial statements.

(A) Fair Values:

The following tables presents the carrying amount and fair value of each category of financial assets and liabilities as at March 31, 2018, March 31, 2017 and April 01, 2016.

‘Other than investments in subsidiary accounted at cost in accordance with Ind AS 27

The management assessed that cash and cash equivalents, trade receivables, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

14 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital, convertible preference shares, securities premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.

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

Gearing ratio

The gearing ratio at the end of the reporting period was as follows:

(i) Debt is defined as long-term borrowings (including current maturities) and short-term borrowings.

(ii) Equity is defined as equity share capital and other equity including reserves and surplus.

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 interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings.There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise borrowings, trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents, other bank balances and other financial assets that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by a risk committee that advises on financial risks and the appropriate financial risk governance framework for the Company. 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.The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate risk and currency risk. Financial instruments affected by market risk include borrowings.

a) 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 borrowings.

b) Interest rate sensitivity:

The sensitivity analysis below have been determined based on exposure to interest rates for long-term debt obligations with floating interest rates at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates:

c) 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 Company is exposed to foreign exchange risk through its overseas borrowings. The results of the Company’s operations can be affected as the rupee appreciates/depreciates against these currencies.

d) Foreign currency sensitivity analysis

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

B) 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, foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on companies internal assessment.

The Company’s customer profile includes mainly large private corporates. The Company’s average project execution cycle is around 36 to 48 months. General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

The Company has not acquired any credit impaired asset. There was no modification in any financial assets.

Non certification of works billed

The costs incurred on projects are regularly monitored through the Project budgets. Costs which are incurred beyond the agreed terms and conditions of the contract, would be claimed from the customer, based on the actual works performed. The readability of such claims, is verified by independent professionals, who certify the tenability of such claims and also the collectible amounts, by applying appropriate probabilities. Costs, which are identified as non tenable or costs beyond the collectible amounts, as mentioned above, would be provided in the books of accounts.

C) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

C) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and interest rate risk. Financial instruments affected by market risk include loans and borrowings, investments, other financial assets and other financial liabilities.

16 STANDARDS ISSUED BUT NOT YET EFFECTIVE IND AS 115 - Revenue from Contracts with Customers

In March 2018, the Ministry of Corporate Affairs had notified Ind AS 115 (Revenue from Contracts with Customers) which would be applicable for accounting periods beginning on or after 1 April 2018.This Standard establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.The Company is evaluating the requirements of the standard and its impact on its financials.

17 PREVIOUS YEAR FIGURES

The comparatives given in the consolidated financial statements have been complied after making necessary Ind AS adjustments to the respective audited standalone financial statements under previous GAAP to give a true and fair view in accordance with Ind AS.