అకౌంట్స్ గమనికలుIshaan Infrastructures & Shelters Ltd.

Mar 31, 2025

2.5 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized 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. The amount recognized as a provision is the best estimate of the consideration

required to settle the present obligation at the end of the reporting period, taking into account
the risks and uncertainties surrounding the obligation. 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.

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.

Contingent liabilities are not recognised but are disclosed in the notes.

Contingent assets are not recognised but are disclosed in the notes where an inflow of economic
benefits is probable.

2.6 Depreciation

Depreciation on Property, Plant and Equipment is provided using the Straight Line Method based
on the useful life of the assets as prescribed under Schedule II of the Companies Act, 2013. In case
of additions or deletions during the year, depreciation is computed from the month in which such
assets are put to use and up to previous month of sale or disposal, as the case may be.

2.7 Financial Instruments

i) Financial Assets

A. Initial recognition and measurement

All financial assets are initially recognized at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities, which are
not at fair value through profit or loss, are added to the fair value on initial recognition.
Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets measured at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it is held within a business model whose
objective is achieved by both collecting contractual cash flows and selling financial
assets and the contractual terms of the financial asset give rise on specified dates to
cash flows that are solely payments of principal and interest on the principal amount
outstanding.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at
FVTPL.

C. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for
evaluating impairment assessment of financial assets other than those measured at fair
value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those
default events on the financial instrument that are possible within 12 months after the
reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible
default events over the life of the financial instrument)

For trade receivables company applies ''simplified approach'' which requires expected
lifetime losses to be recognised from initial recognition of the receivables. Further the
company uses historical default rates to determine impairment loss on the portfolio of trade
receivables. At every reporting date these historical default rates are reviewed and changes
in the forward looking estimates are analysed.

For other assets, the company uses 12 month ECL to provide for impairment loss where
there is no significant increase in credit risk. If there is significant increase in credit risk full
lifetime ECL is used.

ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly
attributable cost. Fees of recurring nature are directly recognised in Statement of Profit or
Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For
trade and other payables maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to the short maturity of these instruments.

iii) De recognition of financial instruments

The company derecognizes a financial asset when the contractual rights to the cash flows from
the financial asset expire or it transfers the financial asset and the transfer qualifies for de
recognition under Ind AS 109. A financial liability (ora part of a financial liability) is derecognized
from the company''s balance sheet when the obligation specified in the contract is discharged
or cancelled or expires.

2.8 Leases

The Company, as a lessee, recognises a right-of-use asset and a lease liability for its leasing
arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an
identified asset and the Company has substantially all of the economic benefits from use of the
asset and has right to direct the use of the identified asset. The cost of the right-of-use asset shall
comprise of the amount of the initial measurement of the lease liability adjusted for any lease
payments made at or before the commencement date plus any initial direct costs incurred. The
right-of-use assets is subsequently measured at cost less any accumulated depreciation,
accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability.
The right-of-use assets is depreciated using the straight-line method from the commencement date
over the shorter of lease term or useful life of right-of-use asset.

The Company measures the lease liability at the present value of the lease payments that are not
paid at the commencement date of the lease. The lease payments are discounted using the interest
rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily
determined, the Company uses incremental borrowing rate.

For short-term and low value leases, the Company recognises the lease payments as an operating
expense on a straight-line basis over the lease term.

2.9 Segment Reporting

The Company does not have any operating segments during the current tax period.

2.10 Fair Value

The Company measures financial instruments at fair value in accordance with the accounting
policies mentioned above. Fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value measurement is based on the presumption that the transaction to sell the asset or
transfer the liability takes place either;

• In the principal market for the asset or liability, or

• In the absence of a principal market, in the most advantageous market for the asset or liability

All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy that categorized into three levels, described as follows,
the inputs to valuation techniques used to measure value. The fair value hierarchy gives the highest
priority to quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the
lowest priority to unobservable inputs:

Level 1 - quoted (unadjusted) market prices in active markets for identical assets or Liabilities.

Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.

Level 3 - inputs that are unobservable for the asset or liability.

For assets and liabilities that are recognized in the financial statements at fair value on a recurring
basis, the Company determines whether transfers have occurred between levels in the hierarchy by
re-assessing categorized at the end of each reporting period and discloses the same.

2.11 Revenue Recognition

Revenue is recognized upon transfer of control of promised products or services to customers in an
amount that reflects the consideration we expect to receive in exchange for those products or
services.

Freight Services - Revenue from Transport of goods is recognized at the time when services are
performed and there exists reasonable certainty of ultimate collection of the service consideration.
Freight income and associated expenses are recognized using a single standard that faithfully
depicts the delivery of freight to customer. The stage of completion is assessed with reference to
completion of the specific transaction assessed on the basis of the actual service provided as a
proportion of the total services to be provided. Generally, the contracts are fixed price, thus the
associated cost can be reliably measured.

2.12 Earnings Per Share

Basic earnings per share are computed by dividing the profit after tax by the weighted average
number of equity shares outstanding during the year. Diluted earnings per share is computed by
dividing the profit after tax as adjusted for the effects of dividend interest and other charges relating
to the dilutive potential equity shares by weighted average number of shares plus dilutive potential
equity shares.

3 Significant accounting judgments, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgement,
estimates and assumptions that affect the reported amount of revenue, expenses, assets and
liabilities and the accompanying disclosures. 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 next financial years. No judgements and estimates were required to be made
in preparing these financial statements that were critical or material.

For, Prakash Tekwani & Associates For and on behalf of the Board of Directors of

Chartered Accountants Ishaan Infrastructure and Shelters Limited

Prakash Tekwani PRATIK ASHOK KUMAR PATWARI

Partner Managing Director & Chairman

Membership no: 108681 (DIN -11060670)

FRN: 120253W

Date: 28-05-2025

Place: Ahmedabad

UDIN: 25108681BMMLSS4698

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Mar 31, 2024

(A) Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities, comprise loans and borrowings and trade and other payables. 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 and cash and cash equivalents 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 and ensures
that Company’s financial risks are identified, measured and governed 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 summarized below.

(i) 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 that affects the
Company comprises of one element: Interest rate risk. Financial instruments affected by market risk include loans, borrowings and deposits.

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 short term debt obligations with fixed interest rates.

(ii) 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 and from its financing activities including deposits with banks and other financial instruments.

Trade Receivables

Customer credit risk is managed by the Company’s policy, procedures and control relating to customer credit risk management. Credit quality of a customer is
assessed based on an extensive credit rating and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are
regularly monitored. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial asset disclosed in respective note.
The Company does not hold collateral as security.

Cash deposits

Credit risk from balances with banks is managed by the Company in accordance with its policies. These policies are set to minimize concentration of risks and
therefore mitigate financial loss through counterparty’s potential failure to make payments.

(iii) Liquidity Risk

The Company manages its liquidity risk by using liquidity planning and balancing funds requirement vis a vis funds available. Various lines of credit available are
used to optimize funding cost and ensuring that adequate funds are available for business operations.

(B) Capital Risk Management

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

The Company monitors capital using a ratio of adjusted net debt to equity. For this purpose, adjusted net debt is defined as total liabilities, comprising interest¬
bearing loans and borrowings and obligations under finance leases, less cash and cash equivalents. Equity comprises all components of equity.

Note - 30 (a)

1. Previous Year''s figures have been regrouped / reclassified wherever necessary to confirm to current year presentation.

2. Company has during the year granted loans to directors, companies / firms in which such directors are interested in contravention of Sec. 185 of the Companies
Act, 2013.

3. Wherever when original bills / vouchers/ supportings were not available during the course of our audit we have relied upon the vouchers / bills as certified by the
directors.

4. Trade Receivables and Trade Payables account also includes certain loan loan transactions.

Note - 30 (b)

Additonal Disclosure

a. there were no transactions that were not recorded in books of accounts and have been surrendered or disclosed as income during the year in the
tax assessments under the Income Tax Act, 1961.

b. During the year under Consideration the company has not traded or invested in crypto currency or vitual currency.

c. There are no charges or statisfaction of charges pending to be registered with registrar of companies beyond the statutory period.

d. The company has been not declared as willful defaulter by Reserve Bank of India till 31/03/2024.

e. The Company has complied with the no. of layers prescribed under clause (87) of Section 2 of the Act read with Copmpanies (Restriction on no.
of layers) Rules, 2017

f. The borrowing from the banks has been used for the specific purpose for which it was taken at the balance sheet date.

g. The Company is not covered under the provisions of Corporate Social Responsibility (CSR)