2.19 Provisions and contingent liabilities
A provision is recognized when:
s The Company has a present obligation (legal or constructive) as a result of a past
event;
s It is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation; and
s 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, when appropriate, the risks specific to the liability.
When discounting is used, the increase in the provision due to the passage of time is
recognized as a finance cost.
A disclosure for a contingent liability is made when there is a possible obligation or a
present obligation that may, but probably may not, require an outflow of resources. A
contingent liability also arises in extreme cases where there is a probable liability that
cannot be recognized because it cannot be measured reliably.
Where there is a possible obligation or a present obligation such that the likelihood of
outflow of resources is remote, no provision or disclosure is made.
2.20 Segment reporting
Based on the "management approach" as defined in Ind AS 108 Operating Segments,
the management evaluates the Company's performance based on an analysis of various
performance indicators by business segment. Segment revenue and expense include
amounts which can be directly attributable to the segment and allocable on reasonable
basis. Segment assets and liabilities are assets / liabilities which are directly attributable
to the segment or can be allocated on a reasonable basis. Income / expenses / assets
/ liabilities relating to the enterprise as a whole and not allocable on a reasonable basis
to business segments are reflected as unallocated income / expenses / assets /
liabilities.
2.21 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 with
the standalone financial statements. Otherwise, events after the balance sheet date of
material size or nature are only disclosed.
Note 3. Critical Accounting Estimates, Assumptions and Judgements
3.1 Critical Accounting Estimates and Assumptions
3.1.1 Allowance for Impairment of Trade Receivables
The Company has applied the simplified approach permitted under Ind AS 109 and has
recognised lifetime expected credit losses on all trade receivables. The expected credit
loss is mainly based on the ageing of receivable balances and historical experience.
Receivables are assessed on an individual basis or grouped into homogeneous groups
for collective impairment assessment. Trade receivables are written off on a case-to-
case basis if deemed not collectible on assessment of the underlying facts and
circumstances.
3.1.2 Contingent liabilities and other commitments
Refer Note 34 for details of contingent liabilities and other commitments.
3.2 Recent accounting pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time.
In May 2025, MCA notified amendments to Ind AS 21 - The Effects of Changes in Foreign
Exchange Rates, applicable w.e.f. April 1, 2025. The Company has reviewed the
amendment and based on its evaluation has determined that it does not have any
significant impact in its standalone financial statements.
In August 2025, MCA notified the following amendments to:
s Ind AS 1, Presentation of Standalone financial statements, applicable w.e.f. April
1, 2025: The amendment relates to classification of liabilities as current or
noncurrent and non-current liabilities with covenants. In the context of classifying
a liability as current, it removes the requirement of existence of a right to defer
settlement for at least 12 months after the reporting date and instead requires
that the said right should exist on the reporting date and have substance. The
amendment also introduces guidance on classification of liabilities with covenants.
The Company has no impact of these amendments in its classification criteria of
current and noncurrent liabilities.
s Ind AS 7, Statement of Cash Flows and Ind AS 107, Financial Instruments:
Disclosures, applicable w.e.f. April 1, 2025: The amendment in Ind AS 7 requires
to inform users of standalone financial statements of the existence of supplier
finance arrangements and explain the nature of the arrangements, the carrying
amount of liabilities and the range of payment due dates. Ind AS 107 has been
amended to add supplier finance arrangements as a factor that may cause
concentration of liquidity risk. The Company has reviewed the amendment and
based on its evaluation has determined that it does not have any significant impact
in its standalone financial statements.
s Ind AS 12, International Tax Reform - Pillar Two Model Rules applicable
immediately: The amendments provide a temporary mandatory relief from
deferred tax accounting for top-up tax and disclose that they have applied the
relief. This relief is immediate and applies retrospectively. The Company has
reviewed the amendment and based on its evaluation has determined that it does
not have any impact in its standalone financial statements
Note 1:
Pursuant to the provisions of Indian Accounting Standard (Ind AS) 101, The Company has elected to continue with the
carrying value of all of its property, plant and equipment recognised as of 01st April 2024 (transition date) measured as per
the previous GAAP and use that carrying value as its deemed cost as of the transition date.
2. The Company always measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss
(ECL). The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables
based on a provision matrix under simplified approach. The provision matrix takes into account historical credit loss
experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the
days the receivables are due. Based on internal assessment which is driven by the historical experience and current facts
available in relation to default and delays in collection thereof, the credit risk for these trade receivables is considered low.
3. The Company writes off a trade receivable when there is information indicating that the customer is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the customer has been placed under liquidation or has
entered into bankruptcy proceedings.
11 (b) Terms/ rights attached to shares equity shares
Voting
The company has issued only one class of equity share having a par value of Rs. 2 per share. Each holder of equity share is entitled to one vote
per share held.
Dividend
The Company will declare and pay dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the
shareholders in ensuing Annual General Meeting, except in the case where interim dividend is distributed. The Company has not declared or
paid any dividend since its incorporation.
Liquidation
In the event of liquidation of the Company, the holders of equity shares shall be entitled to receive all of the remaining assets of the Company,
after distribution of all preferential amounts. Such distribution amounts will be in proportion to the number of equity shares held by the
shareholders.
11 (c)
i) Pursuant to a resolution passed at the EGM dated June 19, 2023, our Company has approved sub-division of 1 (one) Equity Share of face value
of ? 10/- each into 5 (Five) Equity Shares of face value of ?2/- each. Accordingly, the issued, subscribed and paid-up share capital of the
Company was subdivided from 21,00,000 equity shares of face value of ? 10 each to 1,05,00,000 equity shares of face value of ? 2 each.
27 Earnings per share (EPS)
Basic EPS amounts are calculated by dividing the profit/ (loss) for the year attributable to equity holders of the
Company by the weighted average number of equity shares outstanding during the year.
Diluted EPS are calculated by dividing the profit/(loss) for the year attributable to the equity holders of the Company by
weighted average number of Equity shares outstanding during the year plus the weighted average number of equity
shares that would be issued on conversion of all the dilutive potential equity shares into equity shares. The following
reflects the income and share data used in the basic and diluted EPS computations:
29 Employee benefits
A Defined contribution plans
The Company makes contributions towards Provident Fund to a defined contribution retirement benefit plan for qualifying
employees. The Company's contribution to the Employee Provident Fund is deposited with the Provident Fund Commissioner
which is recognised by Income Tax authorities.
The Company has recognised INR 38.37 lakhs during the year ended 31 March 2026 (31 March 2025: INR 25.27 lakhs) for
provident fund and other funds in the Standalone Statement of Profit and Loss. The contributions payable to these plans by the
Company are at rates specified in the rules of the schemes.
B Defined benefit plans
Gratuity - defined benefit plan
The Company's gratuity scheme provides for lump sum payment to vested employees at retirement, death while in
employment or on termination of employment of an amount equivalent to 15 days' basic salary payable for each completed
year of service or part thereof in excess of 6 months, subject to a maximum limit of INR 2 million in terms of the provisions of
Gratuity Act, 1972. Vesting occurs upon completion of 5 years of service.
The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit
Credit Method with actuarial valuations being carried out at each reporting date.
d) The plan typically exposes the Company to actuarial risks such as: interest rate, longetivity risk and salary risk.
Interest rate risk
A decrease in the bond interest rate will increase the plan liability.
Longetivity risk
The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan
participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the
plan's liability.
Salary risk
The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As
such, an increase in the salary of the plan participants will increase the plan's liability.
e) Sensitivity analysis
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions
constant, would have affected the defined benefit obligation by the amounts shown below:
b) The following methods / assumptions were used to estimate the fair values:
i) The carrying value of bank deposits, trade receivables, cash and cash equivalents, trade payables, security deposits, loans, borrowings and other current
financial assets and other current financial liabilities measured at amortised cost approximate their fair value due to the short-term maturities of these
instruments.
ii) The fair value of non-current financial assets and financial liabilities measured are determined by discounting future cash flows using current rates of
instruments with similar terms and credit risk. The current rates used does not reflect signifcant changes from the discount rates used initially. Therefore, the
carrying value of these instruments measured at amortised cost approximate their fair value.
c) There were no transfers between any levels for Fair value measurements.
d) The following is the basis of categorising the financial instruments measured at fair value into Level 1 to Level 3:
Level 1: This level includes financial assets that are measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: This level includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3: This level includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair
values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market
transactions in the same instrument nor are they based on available market data.
The Company manages its capital to ensure that it can continue as a going concern while maximizing returns to stakeholders through an optimal balance
of debt and equity. As at the reporting date, the Company is debt-free and, therefore, its capital structure comprises cash and bank balances (Note 10)
and total equity. The Company is not subject to any externally imposed capital requirements.
The Company's board of directors reviews the capital structure of the Company on a periodic basis. As part of this review, the Board of directors
considers the cost of capital, risks associated with each class of capital requirements and maintenance of adequate liquidity.
The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the
financial covenants.
33 Financial risk management objectives and policies
The Company's principal financial liabilities comprise trade payables, security deposits received, etc. The main purpose of these financial liabilities is to
manage finances for the Company's operations. The Company's principal financial assets include investment in equity shares of companies, trade
receivables, cash and cash equivalents, security deposits paid, etc..
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The
senior professionals working to manage the financial risks and the appropriate financial risk governance frame work for the Company are accountable to
the Board of Directors and Audit & Risk Management Committee. This process provides assurance to the Company's senior management that the
Company's financial risk-taking activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with Company's policies and Company's risk appetite. It is the Company's policy that no trading in derivatives for speculative
purposes shall be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks which are summarised below:
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices
comprise three types of risk: interest rate risk, foreign currency risk and price risk. Financial instruments affected by market risk include interest bearing
investment in equity shares of companies, fixed deposits and loans and borrowings etc.
The Company's exposure to financial risks is to a variety of financial risks, including the effect of changes in foreign currency exchange rates, if any. The
Company uses derivative financial instruments such as foreign exchange contracts to manage its exposures and foreign exchange fluctuations, if any
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 sensitivity disclosed in the below is attributable to bank overdraft facility availed by the Company.
Credit risk
Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The
Company is exposed to credit risk from its operating activities (primarily trade receivables and other receivables) and from its financing activities,
including deposits with banks and financial institutions, mutual funds and other financial assets. Management has a credit policy in place and the
exposure to credit risk is monitored on an ongoing basis.
Trade receivables
The Company is exposed to credit risk in the event of non-payment by trade partners. Receivable credit risk is managed subject to the Company's
established policy, procedures and control relating to trade partners risk management. The Company uses a provision matrix to determine impairment
loss allowance on portfolio of its trade receivables through a lifetime expected credit loss. The provision matrix is based on its historically observed
default rates over the expected life of the trade receivables and is adjusted for forward-looking estimates.
Cash and cash equivalents, bank deposits and investments in mutual funds
The Company maintaines its cash and cash equivalents, bank deposits and investment in equity shares of companies with reputed banks and financial
institutions. The credit risk on these instruments is limited because the counterparties are banks with high credit ratings assigned by international credit
rating agencies.
Liquidity risk management
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. The Company's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to
the Company's reputation.
Ultimate responsibility for liquidity risk management rests with the board of directors, who has established an appropriate liquidity risk management
framework for the management of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The
Company manages liquidity risk by maintaining adequate reserves, banking facilities, by continuously monitoring forecast and actual cash flows, and by
matching the maturity profiles of financial assets and liabilities.
Foreign Currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates.
The Indian Rupee is the Company's functional currency. As a consequence, the Company's results are presented in Indian Rupee and exposures are
managed against Indian Rupee accordingly. The Company has very limited foreign currency exposure. The Company may use foreign exchange option
contracts or forward contracts towards operational exposures resulting from changes in foreign currency exchange rates exposure. These foreign
exchange contracts, carried at fair value, may have varying maturities depending upon the primary host contract requirement.
34 Contingent liabilities and commitments (to the extent not provided for)
(a) The Company does not have any contingent liabilities or commitments as at the reporting date, which require disclosure under Ind AS, other than
those already provided for in the financial statements.
(c) The Company does not have any long term commitments/contracts including derivative contracts for which there will be any material foreseeable
losses.
(d) The Company does not have any amounts which were required to be transferred to the Investor Education and Protection Fund.
35 Segment Reporting
The Company is listed on the SME Exchange and accordingly prepares its financial statements in compliance with the Indian Accounting Standards (Ind
AS) notified under the Companies (Indian Accounting Standards) Rules, 2021.
In accordance with Ind AS 108 'Operating Segments', the Management evaluates the Company's performance and allocates resources based on a single
integrated business operation.
The Company is exclusively engaged in general construction activities related to 4G and 5G Network Towers, including alteration, addition, repair, and
maintenance, executed on an own-account basis or on a contractual basis.
Based on the internal reporting provided to the Management, this activity represents a single operating and reportable segment. Therefore, no separate
segment disclosures are required under Ind AS 108.
36 Related party transactions
i) Names of related parties and related party relationship:
In accordance with the requirements of Ind AS 24 'Related Party Disclosures', the Company has disclosed the names
of related parties, the nature of their relationship with the Company, and the transactions entered into with them
during the year, as identified and certified by the management. The related party relationships, where control exists
or significant influence is exercised, and the transactions undertaken during the year, wherever applicable, are as
follows:
(iii) Terms and Conditions
All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions
and within the ordinary course of business.
(iv) Disclosure required under Sec 186(4) of the Companies Act 2013
Full particulars of loans given, investment made, guarantee given, security provided together with purpose in terms
of Section 186(4) of the Companies Act,2013.
As per Section 135 of the Companies Act, 2013 read with guidelines issued by Department of Public Enterprises, GOI, the
Company is required to spend, in every financial year, at least 2% of the average net profits of the Company made during
the three immediately preceding financial years in accordance with its Corporate Social Responsibility "(CSR)" Policy. The
details of CSR expenditure for the year are as under:
38 First time adoption of Ind AS
These financial statements, for the year ended March 31, 2026, are the first financial statements the Company has prepared in accordance with Indian
Accounting Standards (Ind AS) as per Companies (Indian Accounting Standards) Rules 2015 notified under Section 133 of the Companies Act, 2013,
('the Act') (including subsequent amendments thereto) and other relevant provisions of the Act. Accordingly, the Company has prepared its financial
statements to comply with Ind AS applicable for the year ended March 31, 2026, together with comparative period data as at and for the year ended
March 31, 2025, as described in the summary of material accounting policies.
In preparing these financial statements, the Company's opening balance sheet was prepared as at April 1, 2024, the Company's date of transition to
Ind AS. According to Ind AS 101, the first Ind AS financial statements must use recognition and measurement principles that are based on standards
and interpretations that are effective at March 31, 2026, the date of first-time preparation of Financial Statements according to Ind AS. These
accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented
within the first Ind AS Financial Statements. Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of
April 1, 2024 compared with those presented in the previous GAAP Balance Sheet as of March 31, 2024, were recognized in equity under retained
earnings within the Ind AS Balance Sheet. This note explains the principal adjustments made by the Company in restating its previous GAAP financial
statements, including the balance sheet as at April 1, 2024 and financial statements as at and for the year ended March 31, 2025.
I. Ind AS Mandatory exceptions applied:
Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has
applied the following exemptions/exceptions:
a) Estimates
As per Ind AS 101, an entity's estimates in accordance with Ind AS at the date of transition to Ind AS and at the end of the comparative period
presented in the entity's first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in
accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to
reflect any differences in accounting policies.
As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those
estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the
comparative period (for presenting comparative information as per Ind AS).
The Company's estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements
that were not required under the previous GAAP are listed below:
- Fair value of financial instruments carried at fair value through profit and loss and/ or fair value through other comprehensive income:
- Impairment of financial assets based on the expected credit loss model; and
- Determination of the discounted value for financial instruments carried at amortised cost
b) Classification and measurement of financial assets
The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of
transition to Ind AS.
c) De-recognition of financial assets and liabilities
Ind AS 101 requires an entity to apply de- recognition provisions of Ind AS prospectively for the transactions occuring on or after the date of transition
to Ind AS. However, Ind AS 101 allows an entity to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity's
choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past
transactions was obtained at the time of initially accoutning for those transactions. The Company has elected to apply de-recognition provisions of Ind
AS 109 prospectively from the date of transition to Ind AS.
d) Impairment of financial assets
The Company has applied the exception related impairment of financial assets given in Ind AS 101. It has used reasonable and supportable information
that is available without undue cost or effort to determine the credit risk at the date that financial assets were initially recognized and compared that to
the credit risk as at 1 April 2024.
II. Ind AS 101 optional exemption applied:
Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.
a) Borrowing cost
As permitted by Ind AS 101, the Company has applied Ind AS 23 Borrowing Costs prospectively from the date of transition and has not restated
borrowing costs capitalised under previous GAAP.
b) Deemed Cost for Property, Plant and Equipment and Intangible Assets
Pursuant to the provisions of Indian Accounting Standard (Ind AS) 101, The Company has elected to continue with the carrying value of all of its
property, plant and equipment and intangible assets recognised as of 01st April 2024 (transition date) measured as per the previous GAAP and use
that carrying value as its deemed cost as of the transition date.
Under previous GAAP, these assets were carried at historical cost less accumulated depreciation.
a) The current ratio increased from 2.43 as at 31 March 2025 to 3.43 as at 31 March 2026, primarily due to an increase in trade receivables
driven by higher sales during the year.
b) The Trade payable turnover ratio has increased from 2.08 as at 31 March 2025 to 3.00 as at 31 March 2026 mainly due to increase in other
expenses and these were partially offset by the increase in the average trade payables.
c) The Net capital turnover ratio has increased from 0.04 as at 31 March 2025 to 0.14 as at 31 March 2026 mainly due to increase in the
revenue from operations and these were partially offset by the increase in the capital employed on account of fresh issues of equity shares
through share warrant.
h) The Net profit ratio has decreased from 0.16 as at 31 March 2025 to 0.10 as at 31 March 2026 mainly due to increase in cost of sales during
the year.
i) The Return on capital employed ratio has increased from 1.02 as at 31 March 2025 to 1.96 as at 31 March 2026 mainly due to increase in
EBIT as compared to previous year and these were partially offset by the increase in the capital employed on account of fresh issues of
equity shares through share warrant.
40 Other notes
a. No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.
b. There are no transactions to report on Crypto Currency or Virtual Currency.
c. The Company has not been declared as wilful defaulter by any bank or financial institution or other lender.
d. The Company has not entered into transactions with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
e. There is no transaction which has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax
Act, 1961
f. There are no charges or satisfaction yet to be registered with ROC beyond the statutory period.
g. There are no funds which have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or
kind of funds) by Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding,
whether recorded in writing or otherwise, that the Intermediary shall:
i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on
behalf of the Company or
ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the company shall:
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
h. The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies
(Restriction on number of layers) Rules 2017
i. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.
j. The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the current or previous year
k. During the year, there was not any undisclosed and/or unrecorded income
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