Provisions, Contingent liabilities, Contingent assets and Commitments:
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Commitments include the amount
of purchase order (net of advances) issued to parties for completion of assets. Provisions, contingent liabilities,
contingent assets and commitments are reviewed at each balance sheet date. The expense relating to a provision
is presented in the statement of profit and loss net of any reimbursement.
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 assets are disclosed where an inflow of economic resources is probable.
Fair Value Measurement
The Company measures financial instruments of certain investments at fair value, at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most advantageous market for the asset or liability. The principal
or the most advantageous market must be accessible by the Company.
The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair
value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would
use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant
observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable for assets and liabilities that are recognised in the balance sheet on a recurring basis,
the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorisation (based on the lowest level input that is significant to the fair value measurement as a whole)
at the end of each reporting period.
For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.
Financial instruments
Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity.
Financial assets
The classification depends on the Company’s business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive
income. For investments in equity instruments, this will depend on whether the Company has made an irrevocable
election at the time of initial recognition to account for the equity investment at fair value through other
comprehensive income.
Initial recognition and measurement
Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.
Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and
Loss.
Subsequent measurement
After initial recognition, financial assets (other than investments in subsidiaries and joint ventures) are measured
either at:
i) fair value (either through other comprehensive income or through profit or loss) or,
ii) amortized cost
Measured at amortized cost:
Financial assets that are held within a business model whose objective is to hold Financial assets in order to
collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at
amortized cost using the effective interest rate (‘EIR’) method less impairment, if any, the amortization of EIR and
loss arising from impairment, if any is recognized in the Statement of Profit and Loss.
Measured at fair value through other comprehensive income (FVOCI):
Financial assets that are held within a business model whose objective is achieved by both, selling financial
assets and collecting contractual cash Flows that are solely payments of principal and interest, are subsequently
measured at fair value through other comprehensive income. Fair value movements are recognized in the other
comprehensive income (OCI) net of taxes.
On transition to Ind AS, the Company has opted to continue with the carrying values measured under the previous
GAAP as at 31st March 2016 as the value of its investments as the deemed cost of these investments on the date
of transition.
De-recognition of Financial Assets
The Company de-recognises a financial asset only when the contractual rights to the cash flows from the asset
expire, or it transfers the financial asset and substantially all risks and rewards of ownership of the asset to
another entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognizes its retained interest in the assets and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company continues to recognise the financial asset
(b) Bonus shares/buyback/shares for consideration other than cash issued during past five years
1 Company has not issued any shares either by way of bonus/right issue nor bought back any share during the
last five years
2 None of sharesholder(s) of Company is it’s holding company, ultimate holding company, subsidiaries,
associates of the holding company or associates of the ultimate holding company for current year and/or
previous year.
3 There are no unpaid call money from any of the directors or officers of the company for current and previous
year
Terms / Rights attached to equity shares:
1 Voting
The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of
equity shares is entitled to one vote per share.
2 Liquidation
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the
remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in
proportion to the number of equity shares held by the shareholders
3 Dividends
The Board of Directors do not propose dividend for financial year 2023-24
Note :
i) Secured borrowing including borrowings from banks namely Canara bank, Union Bank,The Karur Vysya Bank
Ltd & Punjab & Sind Bank. On account of liquidity issues, restructuring of advance was carried out by the
Banks on the request of the Company thereby carving out FITL and providing various other consensus under
the erstwhile CDR Mechanism. CDR was implemented on 30-09-2011 with Master Restructuring Agreement
(MRA) being executed on 31st March 2012. In financial year 2015-16 due to non compliance of the CDR
Conditions as stipulated in the MRA, the erstwhile CDR forum vide letter no.CDR(PMJ) No.228/2016-17 dated
1st September has exited the company from CDR Mechanism w.e.f. 28th October 2015. Above the loan was
secured by as follows:-
a. First pari passu hypothecation floating charge on the entire stocks of the company,Wherever situated,
and its entire book debts from time to time.
b. Pari passu 1st charge on plant and machinery of the Company (excluding land and office flats and value
of equipments on which other lenders are having 1st Charge)
c. EMT of residential bunglow of Mr. Ramlal Wadhawan situated at janki Kutir Bunglow No 9 Vasant Vihar
CHS Chembur, Mumbai having
d. EMT of residential bunglow of Mr. Balkrishan Wadhawan situated at Bunglow No 4 Vasant Vihar CHS.
•Chembur, Mumbai
e. EMT of Office Premises of the Company on the Ground Floor, located at 611/3 V N Purav Marg, Chembur
Mumbai -400 071.
f. Residential Property in the name of the company at “”Jagat Plaza””^ Rear Block, Flat No. R/301
admeasuring 1220 sq. ft. super built-up, at Plot No. 8, Nawab Area Precinct, Amravati Road, Nagpur.
g. Personal Gurantee of Mr. Ramlal Roshanlal Wadhawan, Mr. Balkrishan Pritamlal Wadhawan & Mr. Deepak
Ramlal Wadhawan.
ii) On account of the defaults by the Company, Consortium lead Bank has initiated action under SARFASER
Act,2002,and has taken symbolic possession of various assets of the Company against dues of Rs.315.15
Crores.The Company has sought interim stay on the said notice from DRT, HOwerver, out of total consortium
overdues of Rs.315.15 crors the Amount of rs.26.50 crore of State bank of India ( State bank of Patiala) is
settled under OTS Scheme of State Bank of Inida.
iii) Company vide letters/Consortium meetings has approached the Banks for One Time Settlement of the dues.
Pening settlement with lenders, interest on secured borrowings has not been provided for in FY 2023-24.All
the dues from the Banks have been classified as current liabilities since the same is now payable.
NOTE A - 30 - FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company’s activities expose it to a variety of financial risks, market risk, credit risk and liquidity
risk. The Company’s focus is to foresee the unpredictability of financial markets and seek to minimize
potential adverse effects on its financial performance.
i Market risk
Market risk is the risk that the fair value of future cash flows of a financial instruments will
fluctuate because of changes in market prices. Market risk comprises two types of risk: interest
rate risk and currency risk. Major financial instruments affected by market risk includes loans and
borrowings.
a. Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Company’s exposure to the risk
of changes in market interest rates relates primarily to the Company’s total debt obligations.
Though, the Company is affected by interest rate risk, presently, the same is not applicable
on account of the Company being a Non-Performing Asset in the books of the lenders.
b. Currency Risk
The Company has no international exposure either by way of exports, imports or any other financial
transactions. Hence, the same is not applicable.
ii Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The
maximum exposure of the financial assets are contributed by trade receivables, unbilled revenue, cash and
cash equivalents and receivable from related parties.
a. Credit risk on trade receivables and unbilled revenue is limited as the customers of the Company
mainly consisting of the government entities having strong credit worthiness. For other customers,
the Company uses its experience to compute the expected loss for trade receivables and unbilled
revenue. The experience takes into account various external and internal credit risk factors such as
credit ratings from credit rating agencies, financial condition, ageing of accounts receivable and the
Company’s historical experience for customers.
iii Liquidity risk
Liquidity is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at a reasonable price. The Company’s is responsible for liquidity, funding as well as
settlement management. In addition, processes and policies related to such risks are overseen by
management. The Company’s liquidity risk is high as it is unable to meet its debt obligations on
time and is an already a Non -performing asset with banks. Litigation has also been initiated by few
of the parties. Despite the above, Management is closely monitoring the Company’s net liquidity
position.
32 Event occuring after the Balance Sheet Date
To the best of knowledge of the management, there are no events occuring after the Balance sheet date
that provide additional information materially affecting the determination of the amount relating to
the conditions exisiting at the Balance sheet date that requires adjustment to the Assets or Liabilities
of the Company.
33 In the opinion of the board and as certified by the management, all expenses charged to revenue
and cash transaction entered into are genuine and have been solely and exclusively incurred for the
busniess of the Company
34 Some of Trade Receivables, Trade Payables, Loans and advances and other current and non current
are subject to confirmation and reconciliation. Consequential adjustment thereof, if any, will be given
effect into the books of accounts in the year of such adjustment.
36 Other statutory information
i) The Company has not traded or invested in crypto currency or virtual currency during the year.
ii) The Company does not have any benami property held in its name. No proceedings have been initiated
on or are pending against the Company for holding benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.
iii) There is no income surrendered or disclosed as income during the year in tax assessments under the
Income Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
iv) The Company does not have any charges or satisfaction of charges which is yet to be registered with
Registrar of Companies beyond the statutory period.
v) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary 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 (Ultimate Beneficiaries) or
(b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
vi) 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:
(a) 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
(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries
vii) The Company has not been declared wilful defaulter by any banks / financial institution or government or
any government authority.
viii) The Company has not revalued its property, plant and equipment (including right of use assets) or
intangible assets during the current year or previous year.
ix) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the
Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.
x) The Company has not obtained any term loans from banks and financial institution during the year.
xi) The Company does not have any transactions and outstanding balances during the current as well
previous year with Companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.
37 Ratios : As per Annexure “A”
38 Figures of the previous year have been regrouped, reclassified and/or rearranged whenever
necessary to compare with the figures of the current year.
In term of our report attached
For N.K.Mittal & Associates For and behalf of the Board of Directors
Chartered Accountants For PBA Infrastructure Limited
FRN No. 113281W
CA (Dr.) N.K.Mittal Narain P. Belani Sujata Athavale
Partner Managing Director & CFO Director
M.NO.046785 DIN:02395693 DIN:07601500
Place : Mumbai Place : Mumbai Vaishali K. Savaliya
Date : 30/05/2024 Date : 30/05/2024 Company Secretary
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