2.13 Provisions
Provisions for legal claims, service warranties are recognised when the Company has a present legal or constructive obligation
as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can
be reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any
one item included in the same class of obligations may be small.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present
obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to
the passage of time is recognised as interest expense.
2.14 Employee Benefits
(i) Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employees'
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are
settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
(ii) Post-employment benefits
The Company operates the following statutory post-employment schemes:
• defined benefit plans such as gratuity and
• defined contribution plans such as provident fund and superannuation fund
Gratuity Obligations
The liability recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the
defined benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by
independent actuaries using the projected unit credit method.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and
the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.
Premeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are
recognised in the period in which they occur, directly in other comprehensive income. They are included in retained
earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are
recognised immediately in profit or loss as past service cost.
Defined contribution plans
The Company pays provident fund contributions to publicly administered provident funds as per local regulations.
The Company has no further payment obligations once the contributions have been paid. The contributions are
accounted for as defined contribution plans and the contributions are recognised as employee benefit expense when
they are due.
(iii) Bonus Plan
The Company recognises a liability and an expense for bonus. The Company recognises a provision where contractually
obliged or where there is a past practice that has created a constructive obligation.
2.15 Dividend
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the
entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
2.16 Earnings per share
(i) Basic Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average
number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during
the year and excluding treasury shares.
(ii) Diluted Earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the
weighted average number of additional equity shares that would have been outstanding assuming the conversion of all
dilutive potential equity shares.
2.17 Statement of cash flows
The company's statements of cash flows are prepared using the Indirect method, whereby profit for the period is adjusted for the
effect of transaction of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payment and item
of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing
activities of the Company are segregated.
Cash and cash equivalents comprise cash and bank balances and short-term fixed bank deposits that are subject to an insignificant
risk of changes in value.
2.18 Exceptional Items
The Company classifies certain items of income and expense as exceptional when such items are of a size, nature, or incidence
that their separate disclosure is considered necessary to explain the performance of the Company for the period. Exceptional
items are material items of income or expense that arises from events or transactions that are clearly distinct from the ordinary
activities of the Company and are not expected to recur frequently or regularly.
and installed capacity. An independent valuation report supports that the fair value of these assets is significantly higher than their book
value.Based on internal estimates, including future business plans, expected improvement in market conditions, and growth prospects, the
management believes that the carrying values of the non-current investment, loans, and other assets in the subsidiary are fully recoverable.
Accordingly, no provision for diminution in value has been considered necessary as at the reporting date.
As at 31 March 2025, The Company holds a non-current investment amounting to Rs. 205.00/- Lakh (31 March 2024: Rs. 205.00/- Lakh), non¬
current loans including interest amounting to Rs. 35,527.75/- Lakh (31 March 2024: Rs.35,527.75/- Lakh) and other current financial assets
amounting to Rs.2,914.13/- Lakh (31 March 2024: Rs.2927.92/- Lakh) in Soul Space Project Ltd, a subsidiary of the Company (97.91%), which
is holding 100% in Soul Space Hospitality Limited and 100% in Soul Space Reality Limited. While Soul Space Project Ltd has been incurring
losses, the underlying projects/assets are expected to achieve adequate realizable value. The net-worth of this subsidiary does not represent its
true market value as the value of the underlying investments/ assets, based on valuation report of an independent valuer, is higher. Therefore,
based on certain estimates like future business, growth prospects and other factors, the management believes that the realizable amount of
the subsidiary is higher than the carrying value of the investments, non-current loans and other current financial assets due to which these
are considered as good and recoverable.
The provision matrix developed by the company considers several factors, including :Grouping receivable based on significant
differences in loss patterns among customer groups, such as Government entities, Disputed accounts, and Non- Goverenment
institutions (excluding related parties).
The management has ascertained the credit risk in respect of each outstanding separately and has made allownaces where ever the
credit risk has enhanced. In case of others, the management is confident of full recovery despite outstanding for a longer period.
Hence no allowances have been made in such cases.
For terms and conditions of receivables due from related parties, refer note 31 of standalone Ind AS financial statements.
For receivables secured against borrowings, refer note 11(a) & 11 (b) of Standalone Ind AS financial statements.
The Company exposure to credit and currency risks, and loss allowances related to receivables are disclosed in note 34 of standalone
Ind AS financial statements.
Sundry Debtors as at 31 March, 2025 include debtors aggregating to Rs.7,548.59/- Lakhs (31 March 2024 Rs. 4,792.31/-Lakhs). These
represent amounts of work done and retention which have been disputed by the Clients. However, the matters has been referred to
arbitration. The management is reasonably confident of establishing its claims for the said amount supported by proper evidences
and consequently no change have been made to the values and classification of these amounts in the financial statements.
(i) Securities Premium Reserve
Securities premium is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of
section 52 of the Companies Act, 2013
(ii) General Reserve
The general reserve is a free reserve which is used from time to time to transfer profits from retained earnings for appropriation
purposes. As the general reserve is created by a transfer from one component of equity to another and is not created out of other
comprehensive income ( OCI) or accumulated OCI, items included in the general reserve will not be reclassified subsequently to
statement of profit and loss.
(iii) Retained Earning
It represents unallocated earnings of the year including accumulated over the past years
11.1 CORPORATE DEBT RESTRUCTURING (CDR)
In case of the Company, Corporate Debt Restructuring (CDR) package was approved by the Empowered Group (now an erstwhile
body) on 31.12.2014 for a period upto 30th September, 2019 . For the said CDR Package, the Participant Lenders were State Bank of
India, Canara Bank, ICICI Bank, Oriental Bank of Commerce (now merged with Punjab National Bank), IndusInd Bank, Syndicate
Bank (now merged with Canara Bank) and the Non-CDR Members were Yes Bank Ltd, SREI Equipment Finance Ltd, Standard
Chartered Bank Ltd and HDFC Bank. Thereafter, all restructuring schemes, including CDR Scheme, have been superseded by a
new framework in terms of the RBI's Circular dated 7th June, 2019, however, the Company is continued to be governed by the
CDR Package as previously approved. Now, all the major financial terms stipulated in the CDR Package stands complied except
the amount of Right of Recompense with the Participant Lenders" which is yet to be quantified till now. However as per Master
restructuring agreement dated 31.12.2014 the year on year Recompense amount of Rs 6,950 lakhs was estimated for all lenders
however the amount for existing lenders is being worked out by lenders .
Borrowings from related parties include interest free loan provided by the directors amounting to Rs. 2,338.83 lakhs, in according
with the covenants of the CDR package.
11.2 Secured Loans
Working Capital Facility From Banks
(Secured by way of first pari passu charge on Current Assets of the company and second pari passu charge on Fixed Assets of the
Company except those specifically charged to Financial Institutions/banks/others for term Loans of machinery & vehicles and
Personal Guarantees of whole time Directors). Interest on cash credit facility is charged at rate of 13-15% p.a. (PY 13-15%)
In addition, pledge of Un-encumbered share holding of B. L. Kashyap and Sons Limited in favour of lenders by the Whole Time
Directors.
Further in addition to above, Canara Bank Credit Facility is secured by way of Equitable mortgage of property of M/s Ahuja
Kashyap Malts Private Limited
During the year, the Company has recognized a net exceptional gain of Rs. 1,760.56/- Lakhs in the financials. The exceptional items
comprise the following:-
A one-time income of Rs. 5,650.71/- Lakhs received as net proceeds from litigation awarded in the Company's favor.
Bad debts of Rs. 1663.15/- Lakhs recognized against receivables from a customer deemed irrecoverable due to proceedings under the
Insolvency and Bankruptcy Code before the National Company Law Tribunal (NCLT).
Write-off of contract assets amounting to Rs. 727.00/- Lakhs, representing balances no longer recoverable.
Provision for Right of Recompense (RoR) obligations amounting to Rs. 1,500.00/- Lakhs has been recognized based on management's
best estimate of the liability arising towards lenders upon the closure of the Corporate Debt Restructuring (CDR) package.
These items are considered to be non-recurring in nature and have accordingly been presented as exceptional items in the financials
a. Defined Contribution Plan
The Company makes contribution towards provident fund and superannuation fund which are defined contribution retirement
plans for qualifying employees. The provident fund plan is operated by the regional provident fund commissioner. Under the
schemes, the Company is required to contribute a specified percentage of payroll cost to the retirement contribution schemes
to fund benefits.
The Code of Social Security, 2020 (Code) passed by the Parliament subsumes various legislations relating to employee Benefits
including Provident fund and Gratuity. Pending notification of the effective date of the Code, all the employee benefits have
been accounted as per the existing laws
The Company recognised Rs.1,282.85/- Lakh (31 March 2024: Rs.1024.06/- Lakh) for Provident Fund and ESI fund contributions
in the Statement of Profit & Loss. The contribution payable to these plans by the Company are at rates specified in the rules.
b. Defined Benefit Plan
The scheme provides for lump sum payment to vested employees at retirement, upon death while in employment or on
termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof
in excess of six months. Vesting occurs upon completion of five years of service.
The present value of the defined benefit obligation and the related current service cost are measured using the projected unit
credit method as per actuarial valuation carried out at balance sheet date.
Terms and conditions of transactions with related parties - The sales to and purchases from related parties are made on terms
equivalent to those that prevails in arm's length transactions except Loans, Interest and Remuneration where it is not possible
to ascertain Arms length but has been done as per prevailing practice.. There have been no guarantees provided or received for
any related party receivables or payables
Note 32 Contract Balances
The timing of revenue recognition, billings and collection results in trade receivables (including retention) (billed amounts), contract
assets (Unbilled Revenue ) and customer advances and deposits (contract liabilities) on the Company's balance sheet. For services
in which revenue is earned over time, amounts are billed in accordance with contractual terms, either at periodic intervals or upon
achievement of contractual milestones.
The timing of revenue recognition is measured in accordance with the progress of delivery on a contract which could either be in
advance or in arrears of billing, resulting in either a contract asset or a contract liability.
Note 33 Micro and small enterprises
Under the Micro, Small and Medium Enterprises Development Act, 2006 ('MSMED') which came into force from 2 October 2006,
certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis or the information
and records available with the management, there are no outstanding dues to the Micro and Small enterprises as defined in the
Micro, Small mid Medium Enterprises Development Act, 2006 as set out in the following disclosures.
The disclosure in respect of the amount payable 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 has been made in the standalone Ind AS financial statement as at March 31, 2025 based on the information
received and available with the Company.
Note 34 Financial instruments - Fair values and risk management
Risk management framework
The business of the Company involves market risk, credit risk and liquidity risk. Among these risks, market risk is given paramount
importance so as to minimize its adverse affects on the Company's performance. The Company has policies and process to
identify, evaluate and manage risks and to take corrective actions, if required, for their control and mitigation on continuous
basis. And regular monitoring of the said policies and process for their compliance is responsibility of the management under
the supervision of the Board of Directors and Audit Committee. The policies and process are regularly reviewed to adapt them in
tune with the prevailing market conditions and business activities of the Company. The Board of Directors and Audit Committee
are responsible for the risk assessment and management through formulation of policies and processes for the same.
Credit risk is part of the business of the Company due to extension of credit in its normal course having a potential to cause
financial loss to the Company. It mainly arises from the receivables of the Company due to failure of its customer or a counter
party to a financial instrument to meet obligations under a contract with the Company. Credit risk management starts with
checking the credit worthiness of a prospective customer before entering into a contract with him by taking into account, his
individual characteristics, demographics, default risk in his industry. A customer's credit worthiness is also continuously is
checked during the period of a contract. However, risk on trade receivables and unbilled Revenue is limited as the customers of
the company are either government promoted entities or have strong credit worthiness. In order to make provisions against dues
from the customers other than government promoted entities, the Company takes into account available external and internal
credit risk factors such as credit rating from credit rating agencies, financial condition, aging of accounts receivables and the
Company's historical experience for customers. The managment uses a simplified approch for the purpose of computation on
Expected Credit Loss for trade receivable.
The following table gives details in respect of contract revenues generated from the top customer and top 5 customer for the year
ended
Retention money
Retention money represents amounts contractually withheld by customers and is payable upon completion of the project and
expiry of the specified defect liability period, which generally ranges from 1 to 2 years. The purpose of retention is to ensure
satisfactory fulfillment of contractual obligations and to provide customers with adequate security against performance risks.
Management believes that retention money does not contain a financing component, as the primary intent is to provide security
against performance obligation rather financing accordingly, no time value of money is involved.
Retention money is classified as a trade receivable, as there are no significant performance obligations pending under the contract.
Based on historical experience, there have been no material defaults or recoverability issues on account of performance.
Further, retention amounts that can be recovered against the submission of a bank guarantee are classified as current assets, as
management expects to realize them within the next 12 months.
Cash and Cash equivalents
The Company held cash and cash equivalents with credit worthy banks of Rs. 2,021.31/- Lakh & Rs. 1,608.97/- Lakh as at 31 March
2025, and 31 March 2024 respectively. The credit worthiness of such banks is evaluated by the management on an ongoing basis
and is considered to be good.
Guarantees
The Company's policy is to provide financial guarantee only for its subsidiaries liabilities (BLK lifestyle). The Company has
issued a guarantee of Rs. 300.00/- Lakh ( Rs. 300.00/- Lakh) to certain banks in respect of credit facilities granted to subsidiaries.
Security deposits given to lessors
The Company has given security deposit to lessors for premises leased by the Company as at 31 March 2025 and 31 March 2024.
The company monitors the credit worthiness of such lessors where the amount of security deposit is material.
Loans, investments in Subsidiaries Companies
The Company has given unsecured loans to its Subsidiaries as at 31 March 2025 Rs 38,551.90/- Lakh and 31 March 2024 Rs
38,551.90/- Lakh. The Company does not perceive any credit risk pertaining to loans provided to subsidiaries or the investment
in such subsidiaries except the provision for impairment of investment as mentioned in the note no 5(a) and 5(c)
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company
manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when
due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company's reputation.
The Company has obtained fund and non-fund based working capital lines from various banks. Furthermore, the Company has
access to funds from loans from banks. The Company also constantly monitors funding options available in the debt and capital
markets with a view to maintaining financial flexibility.
As of 31 March 2025, the Company had working capital (Total current assets - Total current liabilities) of INR 24,842.07/- Lakh
including cash and cash equivalents of INR 2,021.31/- Lakh investments in term deposits (i.e., bank certificates of deposit having
original maturities of less than 12 months) of INR 1,299.75/- Lakh. As of 31 March 2024, the Company had working capital of INR
21,208.54/- Lakh including cash and cash equivalents of INR 1,608.97/- Lakh, investments in term deposits (i.e., bank certificates
of deposit having original maturities of more than 12 months) of INR 1,510.05/- Lakh.
Exposure to liquidity risk
The table below analyses the Company's financial liabilities into relevant maturity groupings based on their contractual maturities
for:
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market
rates and prices (such as interest rates) or in the price of market risk-sensitive instruments as a result of such adverse changes
in market rates and prices. Market risk is attributable to all market risk-sensitive financial instruments and all short term and
long-term debt. The Company is exposed to market risk primarily related to interest rate risk . Thus, the Company's exposure to
market risk is a function of borrowing activities .
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 market risk for changes in interest rates relates to fixed deposits and borrowings
from financial institutions.
For details of the Company's Current Borrowings and Non Current Borrowings, including interest rate profiles, refer to Note 11a
& 11b of these Ind AS financial statements.
Interest rate sensitivity - fixed rate instruments
The Company's long-term borrowings consist interest free loans from Directors amounting to Rs. 2,338.83 lakhs and fixed rate
borrowings amounting to Rs. 390.00 lakhs from related parties & other parties. The Company's short-term borrowings consist
credit facility from banks with floading interest rates.
Interest rate sensitivity - variable rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased / decreased equity
and profit or loss by amounts shown below. This analyses assumes that all other variables, in particular, foreign currency
exchange rates, remain constant. This calculation also assumes that the change occurs at the balance sheet date and has been
calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the
average debt outstanding during the period.
Accounting Classification and fair values
Fair values hierarchy
Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three Levels of
fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:
Level 1: quoted prices (unadjusted) in active markets for financial instruments.
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: unobservable inputs for the asset or liability
The following table shows the carrying amounts of financial assets and financial liabilities measured at fair value, including their
levels in the fair value hierarchy.
Note 35 Capital Management
The Company's objectives when managing capital are to:-
(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and
(ii) maintain an optimal capital structure to reduce the cost of capital.
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 'net debt' (total borrowings net of cash & cash equivalents) to 'total equity' (as
shown in the balance sheet).
The Company's policy is to keep the Debt Equity ratio below 2. The Company's net debt to equity ratio is as follows.
Note 36 Additional Regulatory Information:
(i) The title deeds of all the immovable properties held by the Company are held in the name of the Company
(ii) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group
for holding any Benami property.
(iii) In respect of the Company's borrowing from banks or financial institutions on the security of current assets, all the
quarterly returns or statements of currents assets filed by the Company with banks or financial institutions are generally
in agreement with the books of accounts and have no material discrepancies so as to adversely affect the drawing power
limit sanctioned by the banks or financial institutions.
(iv) During the current year and/or in the previous year, the Company has not been declared willful defaulter by any bank or
financial institution or other lender.
(v) During the current year and/or in the previous year, the Company has no transactions with the companies struck off U/s
248 of the Companies Act, 2013 or U/s 560 of the Companies Act, 1956.
(vi) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
(vii) The Company is in compliance with the 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 (as amended).
(ix) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) nor has 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 Company or the Funding Party (Ultimate Beneficiaries); or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(x) The Company does 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.
Note 39
Balances outstanding in the name of the parties are subject to the confirmation
Note 40
Previous year's figures have been regrouped and / or rearranged wherever necessary
General Information and Significant Accounting Policies 1 & 2
Other Notes on Accounts 23-40
The Notes are an integral part of these financial statements
For and on behalf of the Board of Directors
In terms of our report of even date attached
For Sood Brij & Associates Vikram Kashyap Vineet Kashyap Vinod Kashyap
Chartered Accountants Joint Managing Director Managing Director Chairman
Firm Regn.no. 000350N DIN-00038937 DIN-00038897 DIN-00038854
Arul Sood Pushpak Kumar Vikesh Agarwal
Partner VP & Company Secretary Chief Financial Officer
Membership No 566030
Place : New Delhi
Dated : 30.05.2025
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