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GHV Infra Projects Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ
3.11 Provisions
A provision is recognized when the company has a
present obligation as a result of past event and 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.
If the effect of the time value of money is material,
provisions are discounted using a current pre-tax
rate that reflects current market assessments of
the time value of money and 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.
Provisions are not discounted to their present value
and are determined based on the best estimate
required to settle the obligation at the reporting date.
These estimates are reviewed at each reporting date
and adjusted to reflect the current best estimates.
A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed
only be occurrence or non-occurrence of one or more
uncertain future events not wholly within the control
of the company. The company does not recognize a
contingent asset but discloses its existence in the
Standalone financial statements.
3.13 Foreign Currency
a Initial recognition
Foreign currency transactions are recorded in
the functional currency, by applying to the foreign
currency amount the exchange rate between the
functional currency and the foreign currency at
the date of the transaction.
Foreign currency monetary items are retranslated
using the exchange rate prevailing at the reporting
date. Non-monetary items, which are measured in
terms of historical cost denominated in a foreign
currency, are reported using the exchange rate at
the date of the transaction.
All exchange differences are recognized as income
or as expenses in the year in which they arise.
Cash and cash equivalents for the purposes of cash
flow statement comprise cash at bank (including
demand deposits) and in hand and short-term,
highly liquid investments with original maturities
of three months or less that are readily convertible
to known amounts of cash and which are subject to
an insignificant risk of changes in value and bank
overdrafts. Bank overdraft is shown within cash and
cash equivalents.
3.15 Cash dividend and non-cash distribution to equity
holders
The Company recognises a liability to make cash or
non-cash distributions to its equity holders when
the distribution is authorized and the distribution
is no longer at the discretion of the Company. As
per the corporate laws in India, a distribution is
authorized when it is approved by the shareholders.
A corresponding amount is recognised directly in
equity.
Non-cash distributions are measured at the fair value
of the assets to be distributed with fair value re¬
measurement recognised directly in equity.
Dividends paid/payable are recognised in the year
in which the related dividends are approved by the
Shareholders or Board of Directors as appropriate.
Basic earnings per share is calculated by dividing the
net profit or loss for the year attributable to equity
shareholders by the weighted average number of
equity shares outstanding during the year.
For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number
of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
Inventories are valued at lower of cost and net
realizable value. Cost of materials is determined on
weighted average basis. Net realizable value is the
estimated selling price less estimated cost necessary
to make the sale.
An operating segment is component of the company
that engages in the business activity from which the
company earns revenues and incurs expenses, for
which discrete financial information is available and
whose operating results are regularly reviewed by
the chief operating decision maker, in deciding about
resources to be allocated to the segment and assess
its performance. The company''s chief operating
decision maker is the Managing Director.
Assets and liabilities that are directly attributable
or allocable to segments are disclosed under each
reportable segment. All other assets and liabilities are
disclosed as un-allocable.
Revenue and expenses directly attributable to
segments are reported under each reportable
segment. All other expenses which are not attributable
or allocable to segments have been disclosed as un¬
allocable expenses.
The company prepares its segment information in
conformity with the accounting policies adopted for
preparing and presenting the Standalone financial
statements of the company as a whole.
Cash flows are reported using indirect method
whereby profit for the period is adjusted for the effects
of the transactions of non-cash nature, any deferrals
or accruals of past or future operating cash receipts
and payments and items of income or expenses
associated with investing and financing cash flows.
The cash flows from operating, investing and financing
activities of the Company are segregated.
3.20 Events after reporting date
Where events occurring after the Balance Sheet date
provide evidence of conditions that existed at the end
of the reporting period, the impact of such events is
adjusted within the Standalone financial statements.
Otherwise, events after the Balance Sheet date of
material size or nature are only disclosed.
3.21 Recent Accounting Pronouncement:
Ministry of Corporate Affairs ("MCAâ) notifies new
standards or amendments to the existing standards
under Companies (Indian Accounting Standards) Rules
as issued from time to time. The below amendments
to the existing standard which are notified by Ministry
of Corporate affairs but are not yet effective:
Amendment to Ind AS 1 ''Presentation of Financial
Statements''- Classification of Liabilities as current
or non-current and non-current liabilities with
covenants. The amendment includes specific
provisions that will take effect for reporting periods
beginning on or after 1 April 2026, retrospectively, as
outlined below:
a) Breach of material covenant for long-term loan
arrangement on or before end of reporting
period with effect that liability becomes payable
on demand as on reporting date, then it shall be
classified as current liability, if lender agreed
after reporting period and before approval of
financial statements to not demand payment as a
consequence of breach.
b) Classify as non-current liability, if lender agreed
by end of reporting period to provide grace period
ending at least 12 months after reporting period
within which entity can rectify the breach provided
lender does not demand immediate repayment.
c) Disclose information about the timing of settlement
to understand the impact of the liability on the
financial statements.
The Company does not expect this amendment
to have an impact on its operations or Standalone
financial statements.
Accounting policies not specifically referred to
otherwise are consistent with generally accepted
accounting principles.
Notes:
(i) Pursuant to the resolution passed by the Board of Directors on July 24, 2025, the Company approved the issue of bonus
equity shares in the ratio of 3:2, i.e., three fully paid-up equity shares of face value Rs.5 each for every two fully paid-
up equity shares of face value Rs.5 each held by the shareholders of the Company. Accordingly, the Company allotted
4,32,45,000 bonus equity shares of Rs. 5 each, aggregating to Rs. 2,162.25 Lakhs, by capitalization of reserves. The
bonus shares rank pari passu in all respects with the existing equity shares of the Company.
(ii) Pursuant to the resolution passed by the Board of Directors on July 24, 2025, The Company undertook a sub-division
of its equity shares from a face value of Rs. 10 per share to Rs. 5 per share. Consequently, the number of equity shares
disclosed as the for the financial year ended March 31, 2025 has been adjusted to reflect the effect of the sub-division.
(iii) During the five years immediately preceding the reporting date, no shares have been bought back other than cash.
Percentages are below the rounding off norms adopted by the Company.
13.5 Terms / Rights of Shareholders, Dividend and Repayment of Capital:
(a) The Company has only one class of shares referred to as equity shares having a par value of Rs. 5/- each. Each holder of
equity shares is entitled to one vote per share.
(b) Dividends, if any, is declared and paid in Indian Rupees. The dividends, if any, proposed by the Board of Director is subject
to the approval of the shareholders in the ensuing Annual General Meeting.
14.1 Nature and purpose of reserves:
Retained earnings
Retained earnings represents the Company''s undistributed earnings after taxes.
Securities Premium
Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with
the provisions of section 52 of the Companies Act, 2013.
Money Received Against Share Warrants
Pursuant to the resolution passed by the Board of Directors on May 28, 2025, the Company allotted 38,50,000
convertible warrants on a preferential basis, comprising 25,00,000 warrants to Promoter category investors and
13,50,000 warrants to Non-Promoter category investors.
Each warrant is convertible into one fully paid-up equity share of the Company within a period of 18 months from the
date of allotment. The conversion price of the warrants has been determined in accordance with the provisions of the
Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 ("SEBI ICDR
Regulationsâ).
(i) The company will repay the loan in its entirety as per repayment schedule of agreement, such that entire loan is fully
paid within 24 months from the date of disbursement of the facility.
(ii) The rate of Interest for each interest period is equal to 18% p.a.
(iii) Security:
(a) A first and exclusive charge by way of pledge on the Pledged Shares, fo be created and perfected prior to the first
Disbursement."
(b) First and exclusive charge by way of hypothecation on the Hypothecated Assets to be created and perfected prior
to the first Disbursement.
(c) Personal Guarantee(s) of each of the Personal Guarantor(s), to be duly stamped,executed, and delivered to the
Lender prior o the first Disbursement.
(d) Demand promissory note(s), to be duly stamped, executed, and delivered to the Lender prior to the first
Disbursement.
(e) Letter of deposit of post-dated cheques for all interest and principal repayments due from the Borrower under
this Agreement and the post-dated cheques, to be duly executed and delivered to the Lender prior to the first
Disbursement.
(f) Any other security created by the Borrower (or any person for the benefit of the Borrower) in favour of the Lender,
from time to time.
15.2 Optionally Convertible Debentures
(i) During the year, the Company issued 1,000 secured, unrated and unlisted Optionally Convertible Debentures (OCDs) of
face value Rs. 1,00,000 each, aggregating to Rs. 1,000 Lakhs. The OCDs carry a coupon rate of 18% per annum.
(ii) The holders of the OCDs have an option to convert the debentures into equity shares of the Company within 18
months from the date of first disbursement and in accordance with the provisions of the SEBI (Issue of Capital and
Disclosure Requirements) Regulations, 2018. The conversion price and other terms of conversion shall be determined
in accordance with the applicable provisions of the said regulations.
(i) There are total Five Vechicle Loans of which Interest Rate varies from 9.05% to 9.85%.
(ii) Security:
(a) Hypothecation of respective financed vehicle.
(i) There are loans from related party which Interest rate varies from 9.05% to 9.85% .
(i) The Bank has sancitoned Cash credit faciltiy amounting to Rs. 2,400 Lakhs, with a time period of 12 months, carrying
interest rate of 11.45% p.a. (Repo Rate 5.50% 5.95%).
(ii) Security:
(a) Primary Security: 1st charge (pari passu basis) by way of hypothecation of Raw Materials, Stock-in-Process, Stores
& Spares, Packing Materials, Finished Goods, Book Debts/Receivables and all present and future current assets of
the Company. Thereby, Total Primary security value considered as Rs. 15,240 Lakhs."
(b) Collateral Security: Pledge of Fixed Deposit Receipt amounting to Rs. 960 Lakhs.
32.2 Fair Value Measurement of Financial Assets and Financial Liabilities
The Fair value of current financial assets measured at amortised cost are considered to be the same as their carrying
amount because they are of short term nature. Hence fair value hierarchy is not given for the same.
32.3 Measurement of fair Values:
There are no Financial Insrument measured at Level I, Level II and Level III during the year.
33 Financial Instruments risk management objective & policies
The Company''s activities expose it to market risk, credit risk and liquidity risk. The Board of Directors has overall
responsibility for the establishment and oversight of the Company''s risk management framework. Risk management
systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Board
of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews the risk
management framework.
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price
of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates,
foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments, future committed
transactions, foreign currency receivables, payables, borrowings etc.
Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because
of changes in market interest rates. In order to optimize the Company''s position with regards to interest income and
interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk
managementby balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio, which
could vary on either side based on current interest rates scenario.
The company''s exposure to interest rate risk due to variable interest rate borrowings is as follows:
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities
that are settled by delivering cash or another financial assets.
The company is exposed to liquidity risk due to Borrowing and other financial liabilities.
The company measures risk by forecasting cash flows.
The Company''s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity
to meet its liabilities when due without incurring unacceptable losses or risking damage to the Company''s reputation. The
Company ensures that it has sufficient fund to meet expected operational expenses, servicing of financial obligations.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to
discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit
worthiness. Credit risk arises primarily from financial assets such cash and cash equivalent, other Bank Balance, Loans
& other financial assets.
Credit risk arising from cash and cash equivalent is limited as the counterparties are banks which are regulated by RBI.
33.5 Capital management:
The Company aim to manages its capital efficiently so as to safeguard its ability to continue as a going concern and to
optimise returns to the shareholders.
The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements
in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage
the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In
order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders or issue new shares.
The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain
investor, creditors and market confidence and to sustain future development and growth of its business. The Company
will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
The Company''s management monitors the return on capital as well as the level of dividends to shareholders.
- It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons
- Adverse Salary Growth Experience Salary hikes that are higher than the assumed salary escalation will result into an
increase in Obligation at a rate that is higher than expected.
- Variability in mortality rates If actual mortality rates are higher than assumed mortality rate assumption than the
Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the
acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary
growth and discount rate.
- Variability in withdrawal rates If actual withdrawal rates are higher than assumed withdrawal rate assumption than the
Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested
as at the resignation date.
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If
some of such employees resign / retire from the company there can be strain on the cashflows.
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One
actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money.
An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This
assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to
fluctuations in the yields as at the valuation date.
Legislative risk is the risk of increase in the plan liabilities due to change in the legislation / regulation. The government
may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will
directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in
the year when any such amendment is effective.
(a) Description of segments and principal activities
The Company is predominantly engaged in the business of infrastructure Construction Services. Infrastructure
Construction Services renders comprehensive, value added services in construction, erection and commissioning.
All other activities of the Company revolve around this business. As such there are no separate reportable segments,
as per the Ind-AS 108 on Operating Segment.
(b) Information about Major Customer
Revenue from operations includes Rs. 58,271.97 Lakhs (Previous Year: 17,841.36 Lakhs) from two customer having
more than 10% of the total revenue.
(c) Geographical Segment
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
a) The company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and rules made thereunder, hence no proceedings initiated or pending against the company under the said Act and
Rules.
b) The company is not declared as willful defaulter by any bank or financial institution or other lender.
c) The company did not have any transactions with companies struck off under section 248 of the Companies Act,
2013. The Company does not have any transaction with struck off companies.
d) The Company has not made any Investment in violation to the provisions related to number of layers prescribed
under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers)
Rules, 2017.
e) The Company has not entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
f) The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes
for which such loans were taken.
g) There were no charges or satisfaction yet to be registered with ROC beyond the statutory year.
h) There are no immovable properties (freehold or leasehold) held by Company whose title deeds are not held in the
name of the company.
i) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets
or both during the current or previous year.
j) The Company has not entered into any transactions with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.
k) The Company has not traded or invested in Crypto Currency or Virtual Currency.
l) The Company has not given any advance, loan or made investments to any other person(s) or entit(ies), including
Foreign entities (Intermediary) with the understanding that the Intermediary shall (i) directly or indirectly lend or
invest in other person/ entities (Ultimate Beneficiaries) on behalf of the Company or (ii) provide any guarantee,
security or the like to or on behalf of the Ultimate Beneficiaries.
m) The Company has not received any fund from any person(s) or entity(ies), including foreign entities ("Funding Partyâ)
with the understanding that the company shall (i) directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiariesâ) or (ii) provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
n) No transactions 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.
42 In respect of borrowings secured against current assets, the Company has filed quarterly returns/statements with
banks/financial institutions.
Compared such quarterly returns/statements with the unaudited books of account of the Company and note that the
same were not in agreement for the following quarters.
43 There are no significant subsequent events that would require adjustments or disclosures in the Standalone Financial
Statements as on balance sheet date.
44 The Company''s domestic transactions with related parties are at arm''s length. Management believes that the Company''s
domestic transactions with related parties for the year ended 31 March 2026 and post 31 March 2026 continue to be at
arm''s length and that the transfer pricing legislation will not have any impact on these standalone financial statements,
particularly on amount of tax expense and that of provision for taxation.
45 Effective 21 November 2025, the Company has evaluated the impact of the Labour Codes notified by the Government
of India, including the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020;
and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the "New Labour
Codesâ). Based on its assessment and the clarification issued by the Institute of Chartered Accountants of India (ICAI),
the Company does not expect any material impact on its Standalone financial statements for the year ended 31 March
2026.
46 The Company has used accounting software 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, during the course of our audit we did not come across any instance of the audit trail feature being
tampered with in respect of accounting software and audit trail feature being tampered with in respect of accounting
software and audit trail has been preserved by the Company as per the statutory requirements of record retention.
47 Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with current
year''s figures.
48 The Standalone Financial Statements for the Financial year ended March 31, 2026, were approved by the board of
directors on May 22, 2026.
12.5 Terms / Rights of Shareholders, Dividend and Repayment of Capital:
(a) The Company has only one class of shares referred to as equity shares having a par value of '' 10/- each. Each holder of equity shares is entitled to one vote per share.
(b) Dividends, if any, is declared and paid in Indian Rupees. The dividends, if any, proposed by the Board of Director is subject to the approval of the shareholders in the ensuing Annual General Meeting.
(c) In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The amount distributed will be in proportion to the number of equity shares held by the shareholders.
12.7 An Agreement dated October 18, 2024 to purchase 5,14,860 equity shares constituting 3.28% of the emerging equity and voting equity shares (i.e. 1,57,00,000 fully paid-up equity shares of the face value of '' 10/- each of the M/s. Sindu Valley Technologies Limited (''the Company'') bein the capital pos| allotment of 1,50,00,000 equity shares and existing equity shares 7,00,000) of the Company from Mr. Chirag Deepak Dedhia (Seller-1), Mr. Arvind Awadhnatl Sharma (Seller-2) and Mrs. Manisha Arvind Sharma (Seller-3) (Seller-1, Seller-2 and Seller-3 are collectively hereinafter referred to as the "Sellersâ / "Selling Shareholdersâ) at '' 30/- per Equity Share. ("SPAâ). [The open offer is being made by the ) Jahidmohmed
H. Vijapura, i) JHV commercials LLP, i) Mrs. Husena Vijapura (PAC) for acquisition of up to 40,82,000 fully paid-up Equity Shares of '' 10/- each constituting 26.00% of the emerging equity and voting share capital of the Company (ie. 1,57,00,000 fully paid-u equity shares of the face value of '' 10/- each of the M/s. Sindu Valley Technologies Limited being the capital post allotment of 1,50,00,000 equity shares and existing equity shares 7,00,000).
The Board of Directors of the Company at their meeting held on October 18, 2024, has authorized a preferential allotment of
I, 10,00,000 fully paid- up Equity Shares of face value of '' 10/- each on preferential basis representing 70.06% of Emerging Equity and Voting Share Capital of the Company to [Acquirer-2 and PAC (1,02,50,000 equity shares to Acquirer-2 and 7,50,000 equity shares to PAC) at an issue price of '' 18 per equity share, in compliance. with the provisions of Companies Act, 2013 ("Actâ) and Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 and subsequent amendments thereto ("SEBI ICDR Regulations, 2018â). The Board of Directors of the Company also at thei meeting held on October 18, 2024, has authorized a preferential allotment of 40,00,000 fully paid-up Equity Shares of face value of '' 10/- each on preferential basis to public category investors at an issue price of Rs, 22 per equity share. The consent of the members of the Company for the proposed preferential allotment is being sought through issuance of notice of extra ordinary general meeting to be held on November 19, 2024.
Inaccordance with para 3 & 4 above, the company has alloted 1,37,15,000 equity shares issued at the price of '' 18/-per share (for 1,01,50,000 Equity shares) and '' 22/- per share (for 35,65,000 Equity shares) on December 12, 2024 on preferential basis In terms of Chapter V of SEBI (ICDR) Regulations, [2018. The aforesaid proceeds from issue of equity shares has been utilised as at March 31, 2025.
27.2 Fair Value Measurement of Financial Assets and Financial Liabilities
The Fair value of current financial assets measured at amortised cost are considered to be the same as their carrying amount because they are of short term nature. Hence fair value hierarchy is not given for the same.
28 Financial Instruments risk management objective & policies
The Company''s activities expose it to market risk, credit risk and liquidity risk. The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews the risk management framework.
28.1 Market risk
The 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 currency risk, interest risk and other price risk.
The Company does not have any foreign currency transactions, so it is not exposed to currency risk. Further, company does not have any investments, so it is not exposed to any other price risk.
The company has borrowings at floating rate interest, and hence it is exposed to interest risk.
28.3 Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness. Credit risk arises primarily from financial assets such cash and cash equivalent, other Bank Balance, Loans & other financial assets.
29.3 Risk to the Plan_
Following are the risk to which the plan exposes the entity
A Actuarial Risk
- It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons
- Adverse Salary Growth Experience Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.
- Variability in mortality rates If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.
- Variability in withdrawal rates If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.
B Liquidity Risk
Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cashflows.
C Market Risk
Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.
D Legislative Risk
Legislative risk is the risk of increase in the plan liabilities due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.
(a) Description of segments and principal activities
The Company is predominantly engaged in the business of infrastructure Construction Services. Infrastructure Construction Services renders comprehensive, value added services in construction, erection and commissioning. All other activities of the Company revolve around this business. As such there are no separate reportable segments, as per the Ind-AS 108 on Operating Segment.
(b) Information about Major Customer
Revenue from operations includes ''17,412.84 Lakhs (Previous Year: Nil) from two customer (Previous Year: Nil) having more than 10% of the total revenue.
a) The Company has not taken any borrowings on the basis of security of current assets from banks and financial institutions in respect of which quarterly returns / statements of current assets are required to be filed by the Company with banks and financial institutions.
b) The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.
c) There were no charges or satisfaction yet to be registered with ROC beyond the statutory year.
d) There are no immovable properties (freehold or leasehold) held by Company whose title deeds are not held in the name of the company.
e) No proceedings have been initiated / pending against the Company for holding any Benami Property under Benami Transactions (Prohibition) Act, 1988.
f) The Company has not entered into any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
g) The Company has not made any Investment in violation to the provisions related to number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.
h) The Company has not traded or invested in Crypto Currency or Virtual Currency.
i) The Company has not given any advance, loan or made investments to any other person(s) or entit(ies), including Foreign entities (Intermediary) with the understanding that the Intermediary shall (i) directly or indirectly lend or invest in other person/ entities (Ultimate Beneficiaries) on behalf of the Company or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
j) The Company has not received any fund from any person(s) or entity(ies), including foreign entities ("Funding Party") with the understanding that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
k) No transactions 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.
36 The Company has used an accounting Software for maintaining its books of account for the year ended March 31, 2025 which have a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in software. Further, audit trail feature has not been tampered with in respect of accounting software where the audit trail has been enabled. Additionally, the audit trail of prior year(s) has not been preserved by the company as per the statutory requirements for record retention.
37 The Company was not having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during the immediately preceding financial year and hence, provisions of Section 135 of the Act are not applicable to the Company during the year.
38 Previous year''s figures have been regrouped / reclassified wherever necessary to make them comparable with current year''s figures.
S Provisions and Contingent Liabilities and Assets:
A provision is recognised when the Company has a present obligation (legal or constructive) as a result
of past events and it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, in respect of which a reliable estimate can be made of the amount of
obligation. Provisions (excluding gratuity and compensated absences) are determined based on
management''s estimate required to settle the obligation at the Balance Sheet date. In case the time
value of money is material, provisions are discounted using a current pre-tax rate that reflects 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. These are reviewed at each Balance Sheet date and adjusted to
reflect the current management estimates.
Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose
existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future
events not wholly within the control of the Company. A contingent liability also arises, in rare cases,
where a liability cannot be recognised because it cannot be measured reliably.
Contingent asset is not recongnised unless it becomes virtually certain that an flow of econimic
benefits will arise.
i) Defined Contribution Plan
Contributions to defined contribution schemes such as provident fund, employees'' state insurance,
labour welfare are charged as an expense based on the amount of contribution required to be made as
and when services are rendered by the employees. The above benefits are classified as Defined
Contribution Schemes as the Company has no further obligations beyond the monthly contributions.
ii) Defined Benefit Plan
The Company also provides for gratuity which is a defined benefit plan, the liabilities of which is
determined based on valuations, as at the balance sheet date, made by an independent actuary using
the projected unit credit method. Re-measurement, comprising of actuarial gains and losses, in respect
of gratuity are recognised in the OCI, in the period in which they occur. Re-measurement recognised in
OCI are not reclassified to the Statement of Profit and Loss in subsequent periods. Past service cost is
recognised in the Statement of Profit and Loss in the year of plan amendment or curtailment. The
classification of the Company''s obligation into current and non-current is as per the actuarial valuation
report.
iii) Leave entitlement and compensated absences
Accumulated leave which is expected to be utilised within next twelve months, is treated as short-term
employee benefit. Leave entitlement, other than short term compensated absences, are provided
based on a actuarial valuation, similar to that of gratuity benefit. Re-measurement, comprising of
actuarial gains and losses, in respect of leave entitlement are recognised in the Statement of Profit and
Loss in the period in which they occurr.
iv) Short-term Benefits
Short-term employee benefits such as salaries, wages, performance incentives etc. are recognised as
expenses at the undiscounted amounts in the Statement of Profit and Loss of the period in which the
related service is rendered. Expenses on non-accumulating compensated absences is recognised in the
period in which the absences occurr.
v) Termination benefits
Termination benefits are recognised as an expense as and when incurred.
U Accounting for Taxes of Income:-
i) Current Taxes
Current income tax is recognised based on the estimated tax liability computed after taking credit for
allowances and exemptions in accordance with the Income Tax Act, 1961. Current income tax assets
and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
substantively enacted, at the reporting date.
ii) Deferred Taxes
Deferred tax is determined by applying the Balance Sheet approach. Deferred tax assets and liabilities
are recognised for all deductible temporary differences between the financial statements'' carrying
amount of existing assets and liabilities and their respective tax base. Deferred tax assets and liabilities
are measured using the enacted tax rates or tax rates that are substantively enacted at the Balance
Sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the
period that includes the enactment date. Deferred tax assets are only recognised to the extent that it is
probable that future taxable profits will be available against which the temporary differences can be
utilised. Such assets are reviewed at each Balance Sheet date to reassess realisation.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset. Current
tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and
intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
B. Measurement of fair values
Valuation techniques and significant unobservable inputs
The Fair Value of the Financial Assets & Liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties,
other than in a forced or liquidation sale.
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, for financial instruments measured at fair value in the statement of
financial position, as well as the significant unobservable inputs used.
C. Financial Risk Management
C.i. Risk management framework
A wide range of risks may affect the Company''s business and operational / financial performance. The risks that could have significant
influence on the Company are market risk, credit risk and liquidity risk. The Company''s Board of Directors reviews and sets out policies
for managing these risks and monitors suitable actions taken by management to minimise potential adverse effects of such risks on the
company''s operational and financial performance.
C.ii. Credit risk
The company has not yet commenced its business and there is no fiancial assets in the books other than cash at bank. Hence there is no
credit risk to the company during the fiancial year
Financial Assets are considered to be of good quality and there is no significant increase in credit risk
Cash and cash equivalents and Other Bank Balances
The Company held cash and cash equivalents and other bank balances of Rs.0.60 lacs at 31st March 2024 The cash and cash equivalents
are held with bank with good credit ratings therefore does not expose the Company to credit risk.
C.iii. Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset.
Liquidity risk is managed by Company through effective fund management of the Company''s short, medium and long-term funding and
liquidity management requirements. At present the company manages the liquidity risk by availing funds from the Holding company.
C.iv. Market risk
The Company is not commenced its business hence there is no market risk during the year.
C.iv.a Currency risk
The Company is not commenced its business hence there is no currency risk during the year.
Note 14 : Capital Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and
to optimise returns to its shareholders. Management monitors the return on capital as well as the debt equity ratio
and make necessary adjustments in the capital structure for the development of the business. The capital structure
of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet
its strategic and day - to - day needs.
Gearing Ratio- Gearing Ratio is NIL as on 31.03.2023 and 31.03.2024
Note 15 : Contingent liabilities and commitments (to the extent not provided for)
Note 16 : Lease
The Company has entered into cancellable operating leases for office premises and other premises which are
renewable at the option of both the lessor and the lessee. The Company intends to renew such leases in the normal
course of its business.Total rental expenses charged to the Statement of Profit and Loss under cancellable and non¬
cancellable leases amount to Rs. 1.2 Lacs (Previous year: Rs.1 Lac)
The Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months
from the date of transition by class of asset and leases for which the underlying asset is of low value on a lease-by¬
lease basis.
Note 17 :
As certified by the Management there is no obligation in respect of gratuity and leave encashment during the year
Note 18 :
Balances are relied upon as per books of accounts wherever the confirmations from debtors /creditors /Loans
/Advances are not available
Note 19 :
During the year the company has paid Rs.24.53 lacs as fine and penalty for the non compliance of the SEBI
regulation 33,34, 6(1), 7(1) and 29 (2) 29(3)
Note 20 : Others
The company has not availed any borrowings from Banks or Financial Institutions on the basis of current Assets and
therefore the requirement of filing Quarterly Returns with the Banks would not apply
The company is not holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules
made there under.
The company is not declared wilful defaulter by any bank or financial institution or other lender during the year.
The company has not made any transactions with companies struck off under section 248 of the Companies Act,
2013 or section 560 of Companies Act, 1956, during the year
The company has not accepted any transaction 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 during the year.
The company has not traded or invested in Crypto currency or Virtual currency during the financial year.
Note 21 :Dues to micro, small and medium enterprises
The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008
which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers
the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure
in respect of the amounts payable to such enterprises as at 31 March 2024 and 31 March 2023 has been made in
the financial statements based on information received and available with the Company. There are no dues to
enterprises which have provided goods and services to the Company and which qualify under the definition of micro
and small enterprises, as defined under Micro, Small and Medium Enterprises Development Act, 2006.
Note 22 : Ratio
Refer Ratio Schedule
Note 23 : Deferred Tax
The Deferred Assets on account of carry over business losses is resulting in deferred tax Assets. In view of the
prudence and huge accumulated loss carried over, the same is not been recognised and accounted for.
Note 24
The company has incurred losses in the previous years and its net worth has eroded. However, during the current
year Based on Managements confirmation and continued support the company''s financial statements have been
prepared on the going concern basis whereby the realization of assets and discharge of liabilities are expected to
occur in the normal course of business.
Note 25 :
Previous year figures have been regrouped and rearranged wherever necessary to confirm with the current year
Note 26 :
The company has shifted its registered office from Mumbai ROC to Bangalore ROC with effect from December 06,
2022.
For M/s.P.CHANDRASEKAR LLP SINDU VALLEY TECHNOLOGIES LIMITED
Chartered Accountants
Firm Reg no-000580S/S200066
S.Rajagopalan Lakshman Madesh Doraswamy Prasad
Partner Managing Director Director
Membership No.025349 DIN: 03632724 DIN: 00832192
Place : Bengaluru Sandhya Deshpande Siva Prasad Dindakurthi
Date: 29th May 2024 Company Secretary Chief Financial Officer
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