The Code an Serial Security, 202(1 [Ct>de'| rel atrip to employee benefits durinR employment and post -
employment benefits deceived Presidential assent in September 202D. The Code has been published Ip the Gazette of me ip i-lowever, the date on which the Code will come into effect ha: not been notified and the final rutes/interpretation have not yet been issued. Hie Company will assess Lhe Impacl of the Code when it comes into effect and will record any related, impact in the period the Cade becomes effective. Based on a preliminary assessment, the entity believes the impact of the change win not tie significant."
(h) Defined Benefit Plans
Gratuity has been provided on the bas": of actuarial valuat-on using the project unit credit method and same is non-funded Tlie obligation for leave encashment is recognized ip the same manner as gratuity.
The plans in. India typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
Investment risk: The habilify is not funded and is not relevant in company,
Interest risk: The rate used to discount post-employment henefii obligation should be determined by reference to market yields at tine balance sheet date on Government bonds The currency and term of government bonds should be In consistent with the currency and estimated tern: ol post-employment benefit obligation.
Salary 'fskt Salary increase shouk? take mto account iitlatoo. seniority, promotion and other relevant factors such as supply and demand In the employment market.
No Other post-retirem?nr benefits are provider! to tPese employees.
a I Thu discount : iClL? is based tin t hu prevailing market yield on government incur met us Lit thu I: dim ill1 sheet date fin r fti i= esrim ated term pf ofcligati OH,
b| The astlmales pf future salary increase considered m actuarial vallratipfl, lakes arrraunl of inflation, Seniority, prompt ion and other relevant factors, such ^supply and demand in the employment market
d The gratuity and Leave Encashment I-abilities are unfunded. Accordingly, Information regarding planned assets ate not applicable,
48 Financial Instruments
4fl.l Capital risk Management
The Company being in a capital-intensive industry, its objective is to maintain a strong credit rating healthy capital ratios and establish a capital structure that would maximize the return to stakeholders through optimum mix of debt arid equity.
Thu Company's cap fa I Feqpfrartient is mainly In fund its capacity expansion, repayment of principal and .merest on its borrowings and strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue to he, cash generated from Its operations supplemented by funding from bank borrowings and me capital markets.
The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest costand elongate the maturity of its debt portfolio, and closely monitors its i-.idicous allocation Ljinongst competing capital on pan si on projects Lind strategic actjpJjitlonij^ ter l upline market opportunities ru mihimum risk.
The Company monitors its capital using gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalenT.s,fian< balances other than cash and cash equivalents and current investments,
48.J Financial Risk ManagumeriI
The Company manages financial Risk by its Board of Directors fen OuEirseeitig tin: Risk. Marragrimenl Framework and rievelnping and monitoring the Company's nst m-amsgn me n I policies. The risk management polities are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying ann mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency Risk management polices and systems are renewed egulariv to reflect changes In the market conditions and the Company's rfctiviliEis to provide reliable information to HiP Management and [be Board to evaluate tliF adequacy of the risk management framework in relation to the risk faced by the Company,
The risk management policies aim co mitigate the following risks arising from the financial instruments -Market risk
- Credit risk; and
- Liquidity risk
48.4 Market risk
Market risk Is the risk tuat ih<? fair value of furore cash flows of a financial instrument will fluctuate because of changes in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodify prices anp interest cates
48.5 Foreign Currency Risk Management (As Per Annexure 4E.5AJ
The Company's functional currency is Indian Rupees (INR1. 7lie Company undertakes transactions denominated in forEign currencies; consequently, exposure to exchange rate fluctuations vise Volai Etty 'n exchange r affects the Company's revenue from export markets anfi the costs of imports, primarily In fetation to taw meter lal s. the Comp any: s exposed to astcilis ngebtiste risk under its. t r ado and debt pen i foil o.
AdversF movements in the exchange rate between the Rupee and any lelevant foreign currency results in increase in the Company's overall debt position in Rupee terms without the Company having incurred additional debt and favorable movements m the exchange rates wifi conversely result in reduction in the Company's receivables in foreign currency.
4JJ.fi Commodity Price Risk Ý;
I h e C Dmpa ny's reve n ue is ea posed to the ma rket risk of p l ice I luctu ati ons m it s d v-.s ioh s as u n d e r
Engineering Segment: the company generaliy Lakes Turnkey projects from government departments. The contract price Is generally fix and free from arty price risk subject to change In any government policy or rules.
Real Estate Segment: the company is exposed to risk of prices of Residential end commercial uni is. these prices may be influenced by Factors such assupplyand demand, and regional economic conditions.
Other Segment I Rack aging: the company is exposed to nsk of prices of goods. I hese prices may be Influenced by factors such as supply and demand, Lost of Production and regional economic conditio ns.
Market forces generally determine prices Feu the Real Estate and Rackaging Segment of the Company Adverse cl id i igti ifi a liy Of 1 hois? r,j Lt-tri may reduce! the r uvu Flue! t li at ! hu Corn p any e'j r'rii from the; safe pf Its prod ue L s.
The Company asms to sel- the pnoducts at pnevailmg market prices Similarly the Company procures raw materials on prevailing market rates as the selling prices of its products and the prices of input raw materials move inthe same direction.
Credit risk refers Id the risk (hat counterparty will default On its contractual obligabans resulting in firtanfiaI lens fo the Company, Credit risk eneon,passes nf Jnoth, the direct risk of default and the risk pf deterioration of creditworthiness as weH as concentration risks
Company's credit risk arises principally from the trade receivables, toans. investments in debt securities, cash & cash equivalents.
Trade Receivables
The company's Customei profile includes public sector enlerprises, state Owned companies and private corporate ss well as large individuals. Accordingly, company1!; customer risk it law. The company's aypra.Re project execution cycle is around ?4 to 36 months, general payment terms includes n-iobilizafion advances, monthly progress payments with a credit period ranging from 45 to 00 day^ and certain retention money to he released at the end of the project.
Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk manage me rut. Credit quality of a customer is assessed based on an extensive credit rating scorecard.fhe history of trade receivables shows a negligible allowance (pi bad and
doubtful debts.
46.a Interest Rate Risk
interest rate nsk is the risk that the fan value or future cash flows of a financial instrument will fluctuate because of changedn market interest Tates. The Company is exposed to interest rate nsk because funds art burrowed at both fixed and Floating interest rates. Imprest rate risk, fs measured by using the cash flow sensitivity for changes in variable interest rate-
Liquidity risk refers to the risk of financial distress or extraordinary high fln-ancmg costs arising due to shortage liquid Funds in a sKudLiu11 whuru business conditions uriiuipeLtudly deteriOruto hiiiJ requiring financing the Company requ-res fimrij both fqr jhprt term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient rash flow tor operations, which together with the available cash and cash equivalents and short-term Investments provide liquidity In the short-term and long term 'he Company Has established an appropriate liquidity risk n i ana gome nt framework for the management of thu Company's ibon, medium ane long-term funding and liquidity mine gem en( requirements The Company manage': inudity risk by maintaining adeuuatP 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.
Collateral
The Company has hypothecated of its trade receivables, part of investments and cash and cash equivalents in order to fulfill certain collateral requirements for tFie banking faciFlties extended to the Company There is obligation to leturn tfie securitiesH) Ihh Company unCe these banking facilities are surrendered.
50 Disclosures as per fND A5 -115
d| Performance obligations and remaining performance obligations
II The rprcHining performance nbligatinr disclosure provides the aggregate amount of the transaction price yet to be recognized as at the end of the reporting period and an explanation as to when the Company expects to recognize these amounts in revenue Applying the practical expedient as given In -nd AS 115, the Company ha: not disclosed the remaining performance obligation related disclosures for contracts where the revenue rrtLDgniiiid cot responds directly With 1he value 10 the Customer of the entity's performance completed to date, typically those contracts where unvoicing ii on time and materia basis. Remaining performance obligation estimates are subject to change and are affected by several fatter:., including terminations, changes in the scope of contracts, penodc revaluations, and adjustment for revenue that has not materia ized and adjustments forturrency
bl Dis^ggr oration of revenue of segments os required by Ind As -US, has already unu.i disclosed unrkr note no. d6-
t} Out of Revenue from operations Rs. 7l97fj.dl Lacs(?.Y. Fts. 2892.1.58 lacs)recognized under indAb 115 during (be year, Fts. 67fi2fi.l6 tatsjP.Y. Rs. 7'i77fi.5S latijis recognized Over a period of time and Rs. 2SD1.5P Lacs^F.T. Rs. 3045,77 lacaj is recognized at point in time
d} lhurc s nu mater a I Impact on yiovision for expected ci yd it loss so movement analysis Is riot required
et lom tract balances. Company recognized revenue- as per hid AS clS and revenue Is directly debited m trade receivables Instead of debiting it into contract assets. RuteritiOri money deducted amounting to Rs 4335.06 Lacs [P.Y. Rs. 7173.42 Sar.sl is ini'lndpd in Trade 'eceivables. Company's Trade receivables includes unbilled receivable of Rs 67fjg 31 fats {P.Y Nil! In balance sheet which ane recognized as contact assets in balance sheet: Contract liabilities arc- tho:e liabilities for which revenue recognized on point in time approach and amount has been received as booking ;onfy In real estate activities).
53 leases
hi Company hastaten assets on leases which majorly inclLide Land & B-uil'ding^ Machinery and Vehicles.
(ÝII Tharp are pxpmption provided by amounting standard for following leases as ripkned in para 5 of IMP A5-1 I B:
a. short teem lease and
b. leases Tor which the underlying asset is of lew value.
(Ill) Under such exemption company booked expanses Df fts. 3213-33 la« |P-V. Rs. 935.07 Laps) as Rental expenses. Machine Hi^ng and Vehicle Hiring
|iv| Company has amounted as per guidance provided t5V Ind AS -116 and recognize Right tO use assets and lease I iatai I ity lor which c omp lete disci osu re is provided in note no. 8.
S3
[8*
(I) The :.'.[37TiuiiTiv. at 31 March 2022, has (ij a non Current irty«tr1t(!nt amftnritine lu Rs. Ei5B9.7d L:n:i (31 Mirth
2Q22: 5039.70 lacs;. and current advances of As. 9757.72 Lacs 131 "March 2022 Rs 10324.31 Lacs) in Bhilwarg Jaipur Toll Hoad Private Limited, subsidiary (f.Y Joint Venture!, is holding 31.2 a % (P Y, 49% I share In Special Purpose Vehicle IS-PV). SPV had been awarded project by Rajasthan State Govt through PVYD to Design, build. Finance, dperate and transfer (DEPOT) 5FI-12 toll road through an agreement Hated 12.07.2010. SPVwas r ranted * right to collect tol: fees for 22 yenr? pfarTinR from 02.02,2012 till 02. f>2.20 34. Company is fulfilling its obligations perfectly despite of regular defaults made by government in fulfilling its ob-i gat ions
5PV is collecting to1 on all vehicles Including private yentcles as per concession agreement But Government announced to exempt toll fees of private vehicles w.a.r (11.04.20IS. Since the private vehicle's toll fees is significant portion or total toll collection and Joint Venture calculated project viability including that toll collection on private vehicles.SPV Suffered losses of revenue because of toll fees exemption on private vehicles. SPV intimated tbs loss to PYV'D and asked them to compensate the loss. But m spite of regular reminders and notrees by the 5Pvto PWD, PWD did not respond to any of their not ices
After reminders and noticeSj 5PV decided to terminate the project w.e.f. (13,1(1.20is and sent notice to PWP about terrpinafiop SPV approached PWD for amicable settlement of loss of revenue but after seeing no response from PWD, SPV moved La commercial court for asking compensation where commercial court suggested Logo through arbitration pi ocuss. Thu company ra.sed the various claims of tts. 7913.71 tr (H.Y Rs/ 7SS.7fi Cr I.The sole Arbitrator Awarded Rs.5E7.Ti4 Cf. afier an adjustment I (if intrim Award afRs 191.74 Cr in iLS final award of fls 779.43 cr,
Sucti Award is yet to be received from PWD. As pec Awjrd.the delay In payment by the PWD shall carry interest from the date of a ward till the date of payment at S% above bank rate I.p. 11% p.a.
(hi The tompany pas disposed its loss making subsdiary Chahal infrastructure ltd In the current financial year and booked loss of fts. 454,14 lacs.
hi I he Company, as at 31 March 2023, has (i) o non-current investment amounting to Rs. 45,00 lacs (31 March 2022 Rs. 95 lacs), In Eartmah infra Developers Private Limited The Company has disposed Its loss making associate 5a n mat I Infra Developers Private Limited in the rurrenl financial year at cost.
(d) Thu Cfuti f:-d n y. as ($31 March 20(23. has .a noo-curfftlt investment amounting to Hi. 2.56 lacs Bl March 2022: 2.50 lacs), and ncm-cument advance! of Rs. 747.35 Lacs (31* March, 2012 Rs. 747,(50 Lacs) in Gurtia Thermal Power Company Limited, aJomt Venture, ls holding 5{J7£ share In Joint Venture.The Joint Venture has terminated the P<jwer Purchase Agreement frPA) on 15-07-2015 with Ra;asthan RajyaVidhyut Prasaran Nig am Ltd iKRVfNL) 'lie Joint Venture was (armed for the Business of Power generation and selling the same to the
RRVPTJL. As the agreement is (armin-aled tiy (he Joint Venture and the Joint Venture has also filed the clmm against the KHVPJ4L for the recovery of the amount invested by the Company of Rs 750.1b Lacs plus interest The I dim Venture has tiled petition before the Rajasthan EluLtricity Regulatory Commission, J.sipui. RtRC vide its order dated 09.01.2018 d:.smissed the petition The Joint Venture challenged the order of RERC, Jaipur by fifing appeal before thu apTel (Appellate Tribunal for lleclfldtvl, New Delhi. The case is pending fai adjudication.
The: Joint Venture!, in view nf (he litigation at APTEL (AputdlalG tribunal of electricity) in the matter of Statutory clearances from authorities in relation to agreements with Rajasthan FLajyaVidhyutPraparan Nigam Ltd (RRVPNl) before which the Joint Venturers made a claim among other things tor reimbursement of expenses Incurred In relation to the project, compensation etc . but the matter is under subjudite. and thereafter the Joint Venture pur sues other projects bn thu near ta medium term, bertce the going Loncum assumption is followed and such amount Invested arid loan granted is good and recoverable.
5 9 I n every payment of r g ri ni n g d il I, project a u thpri ty d pd uct retp nfio n amp u nt on acco U n t of ri?fpet i a ti ifities er i se during tie contract period which is either released by submitting bank guarantee or released after successful completion ot project This retention amount keeps accumulating. Collection of retention money rs probable and therefore debtors an accounL of retention money are considered good based an the track record and previuui performance uT the company Deduction of retention money has been claimed as pn the provisions of Income Tax Computation and Discinsure Standards jlCOS). Company have created deferred fax no retention money due to difference in tax base and accounting base as per Inti As 12 and same has been considered for previous year as well.Company has shown such retention money as debtors as good and real zabie m its stock Statements as they are due from governments.
60 I he carnapny has Invested/gctiranteed OMIL-JSC JV, kameng as working capital arc nan fund based banking facilities, ilia coiniH6rd.il understanding Latwuuii partners thiisugh a letter of undertaking on 31.3.2009 that Comapny will receive higher Sum of profit to COmpansale its additional mv&SLiTiant/ Guarantee in this joint venture as mutually decided by partners after completion of project.
61 In case of Dpperbfida (Revtiin-u i:.f. Rs. 4.95 lacs and p.y Rs. 52.40 lacs) and 55NNL Gujrat (Revenue LY. Rs. 4E7&.12 lacs and r.Y. Rs. 602.76 lacs) projects which has been allotted U? Om Metals -5pml JV but buing a lead partner, revenue is been recopniied fn mnieppy's books and income fax is deducted in the npme oF [)m infra Limited Itsed. All payments were receded by Om infra limited
6Z Insurance cover has been taken for bulky items at Kota factory like steel plates/ Machines etc which are not easily subjected to tor burglary or theft.
63 Due to high labour turnover al hilly or remote locations of project site some time it is very difficult to accomplish the laboui refated compliances in these regions.
64 The provision of Employees benefits has been taken on the basis of best judgment policy and prudent business practice as assessed and provided by the Bpan: of directors and Remuneration committee.
65 After the award of work, scmiertimps other partner of the JV falls short of its financial commitment in JV and the one partner has to meet all financiat obligations This entails for modified profit percentage To the other partner In JV depending on nature and circumstances of the project and the JV agreement Is supplemented to provide such affect
EiG Corporate Social Responsibility
As per section 135 of the Companies Art, 2013.. a company meeting the applicability threshold, needs to spend at least 2% of its ave'age net profit for th-e immedlately preceding three financial years of corporate social res ponsi biiity (C5 R) active es The areas for C5 P act' vi cles a re erad ica Cion of h u n ger a ns ma I n ntrit io n, promoti n e education, art and culture, liealthcaie, destilule care and rehabilitation, environment surtainability,, disaster relief and rural devElapmem projects. A C5R committee has been formed by the -Company as per the Act. The funds were primarily allocated to a corpus and utilised Ihrnugh th^ yenr qn these activities whirii are specified In Schedule Vli of the Con'panies Act, 2013.
Company has contributed a sum of ns. 40.0G Lacs to Kaimaputin Charitahle Trust and a}per certificate of Utilisation received , such amount is fulJy utilized by fhp trust and company relied on this certificate for utilization of C5S amount
* Gross a mount required to be spent by the Company during the year is Its. 40.00 Lacs [P.Y. Fts. 40.00 Lakhs).
67 Claims
The company raised various c-aims with various customer/ parties/suhsiriaries of rnmpany/Jnint Ventures/Subsidiaries amounting to Rs. 5736730 lacs IRs. 62464 41 Lacs n Previous Yearsl. against these damns, the Arbitrator awarded cLaims of Rs 3297.15 lacs [P Y fis.7006.49 lacs]. The company has not been recQgnizrng the revenue on the aforesaid Arbitration Awards on its claimed including interest as awarded from lime tq time. There arE also sdme COuntEr claims by the customer / Other Parties amounting to Rs. 2517.16 Lacs jRs, 7343.36 Luos inrluctpri in previous year) against these claims, the Arbitrator awarded Haims to the customer of Rs. 62.24 lacs l6s 62.24 Jats in the Previous Year) These awardsa^e further challenged by the customer as well as the Corn pa ny In the higher courts as the case may tie In accordance with past practice, the Company has not ivtfcfe adjustment because the same has not become rule of the court due to the objections filed by customer / parties and by the Company.
68 Fucri Corporation of Imlia vide its lettei dalEd 7E.lJ.2b19 allowed the company lg increasE its shareholding in Gujrat Warehousing Private I inmted ann Rihar Logistics Private I 'mited from 50%-tCi 9976 The amount deployed by the company in both these 5PV shall be converted into equity to increase its stake to 9996 either by swap of shares with UP logistic and west flengal logistics pvt ltd or issue of Fresh shares.
69 in february 2021, Iapovan(NTPC) project was papally damaged due to massive flocd In Uttrakhsnd. The company has raised insurance claim with Insurci but insurance company cm some renewal premium mismatch grounds rejected claim. Company has approached Rajasthan High court for direction to insurance company for admission of claim and court has directed the insurer to appoint surveyor
70 In CnamEra project jNHPC), NHPC nas awarded the Incentive for compressed schedule ? ji due eo same delays In urojaet, NHrC "ad sought 3G froth us and rEferr=d the nutter to aroitrator. The matter ij jtj|| sjajudi^E In H:gh oc jrt ar.rf NHFC cia'm=d ths 3G am-ouT,; from us in pesp which we pa r: and sought re' at in court
71 Financial StatEmEnts includes amount of Rs. 175.2D acs I ?.y Rs 251.34 Lacs) as Income .Burn amount written off is not receivable or pays trie by company as decided by management but ro curilii riiiLujfi/ affirmations ha; peeo rE tewed from the respective psrties. 5 uch amount was pane mg ;n nooks since ,ong.
72 Amount receved ct Rs. 12.40 Laos (P.Y. Rs 9-a_35 lacs) as profit from Joint venture narneiv GMIL VKMCPL JV iPench -II) is received as par agreement datEd 15th No1: 2019 between company and Vijay Kumar Mistrt Construction Pvt. Ltd. IVKMCPL) . As per agr^Ement company waived its rights in OMIL-VKMCRL JV (Fetich 1 1 In .eii of 1_5* of turnover to te recEHed as profit so y but such amount la shown as contractual work by VKMCP. and tds is deducted accord rg:y But comp any has booked such amount as profit from Jv1 only as per agreement terms
73 Company cas received comp at:cr certificate of A a 3 bloct of project D\1 Greer. Meadows dated 29th November, 2021 and company started giving possess ions to Payers after registry. Since the company has obtain Ed completion certificate of A a 3 block cnly still the capitalization to the balance prc-jEcE will oe continued.
74 The Company !e engaged in the business of arovid re inTrastructu ra facl iti =e as per Sect cn 135 .III read with 5: hed u le VI of the Act. Accordi ngly, Secti on IS 6 dF th e Act is not a pp I: ta ble to the Com pa ny.
75 During the yesr, ttie Company has not entered with 3ny sch-eme of arrangements in tErms of section 230 to 237 ot th.E Companies Act.. 2013 and there was no transactions with struts off Company
75 No Fund have baen advanced or loaned or invested {either from borrowed funds or share premium or any dtner sources or *ind of fon.dsl ty the Company to or ir an-, pemnn ar -Entity, "rciuiiing foreign ariit ea ,'!nterm=d'a,'ea 1 with the urd art tending;, whethe1- recorded in writ'ng or otn-arwlsa that the inter mediary sna I and ar invest in party indentifierf hy or on aehai of LhE Company f'u Iti mate denEficiariaS'i The Gamnany has not received Eny funds from the my party with thE u n de rita nd i ng that :hE Company jhail whether, directly or Indirect.y lend or Invest in ether person or Entities Identified oy nr on ceraif of the Com.pany f'u it.mete ae nefici ar 'ES"} ar provi de any guafantee-, security or t he 1 ke on be h alf of the u id m ate be nefici a nes.
77 The company has compiled with the provision of section 21-57) of the Companies Act, 2C13 read with thE Companies (Restr-chons cn number of layers; Fluiesr2D17
7fi Th e Com pa ny h as not 0 ee n dec la red w1 4u 1 d eta u tE r by a ny ba n k o r fin a nca! 1 n stit uti-a n or government or a ny gpvErri—=rt authority.
50 OiherStatutoryinformation
(i) The com cany does not t’ava any E-Enami property, where any proceeding has bean initiated or pending aga;nst the company for ho d mg any Sana mi property Linear the Benami Transactions (inhibition) Act, I3SS and rules made thereunder
; .' ThE company does not have any1ransaction = wrth comps "ias struck-oh* under section US of Companies Act 2013 c-r section E60 st Companies Act, 1939
|iii: The company doas not nave any charges or sat start on which are yet to he registered with ROC neyond tna statutory period
|iv[-The company does not have any cryptocurcency transactions during the financial year
|v) T n= company does not have any transaction wnch is not recorded hooks of accounts that has been surrendered Dr disclosed as income during the year in the tax assessments under the Income Tax Act, i9£l
51 The Company nave proposed final dividend for tne year ended 31 March 2QZ3 wh cn -s sup; = ct so the epprcva o’ tne members as tne ensuing Annual General Meet'ng. The dividend declared is in ascendance with section L2 3 of Sh e A ct t o th e axten t i t a p o i as to deals rat o n of divider d
B3 Figures for previous year have been re-arranged/recomapnyed wherever necessary to make them comparable.
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