Pledge/Hypotheicated of Freehold Land and Building

-Freehold Land measuring 6K-1M and 3.15M ((i) and (iii)) along with building structures constructed thereupon (labour quarters) having carrying value Rs. Nil (March 31,2024:

Rs.222872.96) and Rs. NIL (March 31, 2024: Rs.306957.00 respectively, are subject to first charge on the company's borrowings form Punjab National Bank Refer Note 15(A) & (B). "**" The Company had entered into a sale agreement dated October 14, 2020, for the sale of a parcel of land to Mr. Kuldeep Kumar and others for a total consideration of Rs.1975000.00. However, the execution of the transfer deed was delayed due to certain restrictions imposed by the Revenue Authority in the area and other technical issues. During the financial year, the Company completed the transfer of the said land in favour of Mrs. Rita Rani (wife of Mr. Kuldeep Kumar) and Mr. Tilak Singh by executing a registered sale deed dated December 27, 2024, after receiving the balance consideration. Accordingly, the Company has recognized a profit of Rs.894023.00 in the Statement of Profit and Loss for the year, arising from the completion of this sale transaction.

a) The Company is involved in litigation for the recovery of an outstanding amount of Rs.14636498.00 from M/s Well Erectors of New Engineering, Kadalundi. A criminal case has been filed under Section 138 of the Negotiable Instruments Act due to the dishonour of a cheque amounting to Rs.11000000.00 issued by the party. Additionally, a civil suit has been initiated to recover the full outstanding amount. Based on legal counsel’s opinion, the recovery under the criminal proceedings is considered legally sustainable, whereas the civil suit is assessed as having limited prospects of success. Accordingly, considering the current status of cases and the counsel's assessment, the management has decided to create a provision for doubtful recovery amounting to Rs.3636498.00 (i.e., the remaining balance beyond the cheque amount) and 10% of the amount involved in the criminal case during the current financial year. This provisioning is expected to have a material impact on the Company’s financials and recovery prospects.

e) Terms/rights attached to equity shares:

The Company has only one class of equity shares having face value of Rs.10/- per share. Each holder of fully paid equity share is entitled to one vote per share. In the event of liquidation of the company, the equity shareholders are entitled to receive the remaining assets of the Company in proportion to their respective shareholdings.

f) The Company has neither issued any rights shares to existing shareholders nor granted any stock options under an employee stock option plan. Furthermore, no shares have been issued for consideration other than cash.

g) The Company is neither a subsidiary nor a holding company of any other body corporate. Disclosures as regards the shareholdings in or by such body-corporate, accordingly, are not applicable on the company.

h) The company did not have outstanding calls unpaid by directors and officers of the company (March 31, 2024 NIL) and also did not have any amount of forfeited shares (March 31, 2024 NIL).

[36] EMPLOYEE DEFINED BENEFIT AND CONTRIBUTION PLANS a) Defined Benefit Plans

Gratuity: In accordance with applicable laws, the Company provides for gratuity through a defined benefit retirement plan (“the Gratuity Plan”) for eligible employees. The Gratuity Plan entitles vested employees to a lump sum payment upon retirement, death, incapacitation, or termination of employment, provided they have completed five or more years of continuous service. The benefit payable is determined based on the employee’s last drawn salary and length of service.

The present value of the defined benefit obligation and the related current service cost are determined using the Projected Unit Credit Method, with actuarial valuations conducted at each reporting date. As of the reporting date, the Company contributes to a group pension scheme managed by the Life Insurance Corporation of India (LIC) to fund the obligations under the plan. The disclosures related to the defined benefit Gratuity Plan are provided below:

ix) The major categories of plan asset are as follows:

The Company contributes to a group pension scheme administered by the Life Insurance Corporation of India (LIC) to meet its plan obligations. The trustees of the scheme have delegated the investment management responsibilities to LIC, which manages the funds in accordance with the mandate provided by the trustees and within the asset allocation limits prescribed under applicable insurance regulations. However, due to regulatory restrictions on the types of permissible investments, it is not feasible to implement a precise asset-liability matching strategy.

c) Compensated Absences (Leave with Wages): Regarding accumulating compensated absences, the company does not have an unconditional right to defer their settlement for more than twelve months after the end of the annual reporting period in which the employees render the related services. Therefore, the entire leave is presented as a current liability in the balance sheet, and expenses are recognized in the statement of Profit and Loss account. The company has recognized Rs.169637.00 (March 31, 2024 Rs.66902.00) as expenses towards earned leave with wages during the year.

III) Fair Value of financial assets and liabilities measured at amortised cost.

The fair values of trade receivables, cash and cash equivalents, trade payables, borrowings, lease liabilities, and other financial assets and liabilities approximate their respective carrying amounts, primarily due to the short-term maturities of these instruments.

For all other non-current financial assets and liabilities measured at amortized cost, fair values are determined by discounting future cash flows using current market rates applicable to instruments with similar terms and credit risk profiles. The current discount rates used do not represent significant deviations from those applied at initial recognition. Accordingly, the carrying values of these financial instruments continue to approximate their fair values.

IV) The following is the basis of categorizing the financial instruments measured at fair value into Level 1 to Level 3:

The Company categorizes financial instruments measured at fair value into a three-level hierarchy based on the observability of the inputs used in the valuation process. Fair values are

determined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date, under current market conditions, irrespective of whether the price is directly observable or estimated using other valuation techniques.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy includes financial assets and liabilities that are measured by using quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: This hierarchy includes financial assets and liabilities that are not traded in an active is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company specific estimates.

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 not are they based on available market data.

[41] FINANCIAL RISK MANAGEMENT

The company’s activity exposes itself to variety of financial risk which includes market risk, credit risk, liquidity risk and interest rate risk. The Company has various financial assets such as deposits, trade receivables and cash and cash equivalent directly related to its business operations. The principal financial liabilities of the company consist of borrowings and trade payables. The senior management of the company focuses on anticipating unpredictability and minimizing potential adverse effects on the company’s financial performance. The Company’s overall risk management procedures to mitigate the potential adverse effects of financial market on the Company’s performance are as follows:

a) 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 risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. The Company’s exposure to market risk is primarily on account of interest risk, foreign currency risk and Commodiy price risk.

i) Interest rate risk management:

The Company is exposed to interest rate risk due to borrowings funds at both fixed and floating interest rates. This risk is managed by maintaining an appropriate mix between fixed and floating rate borrowings.

Interest rate sensitivity analysis

The sensitivity analysis below is based on the exposure to interest rates at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for entire year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel, representing management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s Profit for the year ended March 31, 2025 would decrease/increase by Rs. NIL (for the year ended March 31, 2024: decrease/increase by Rs.750.00). This change is mainly attributable to the Company’s exposure to interest rates on its variable rate borrowings.

ii) Foreign currency exchange rate risk

Fluctuation in foreign currency exchange rates may potentially impact the statement of profit and loss, other comprehensive income and equity, where any transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of the respective entities. Considering the countries and economic environment in which the Company operates, its operations are subject to risks arising from fluctuations in exchange rates in those countries. The risks primarily relate to fluctuations in other currency against the functional currencies of the Company.

iii) Commodity Price Risk

The Company is exposed to the risk of changes in commodity prices, particularly related to its purchase of traded goods. The Company develops periodic financial forecasts based on commodity price forecasts by its procurement group and appropriate actions including changes in selling price and cost saving measures are considered as part of the financial modeling to mitigate the impact of commodity price changes.

A 1% increase in commodity prices would have led to approximately Rs.637756.00 additional loss in the Statement of Profit and Loss (2023-24: Rs.610213.00 loss). Conversely, a 1% decrease in commodity prices would have had an equal but opposite effect.

b) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty fails to meet its contractual obligations. The Company is exposed to credit risk from its operating activities (particularly trade receivables). To manage this risk, the Company consistently monitors the financial health of its customers, ensuring that sales proceeds are realized according to milestone payment terms to minimize losses from defaults or customer insolvency. Progressive liquidity management practices are employed to mitigate the risk of non-fulfillment of liabilities to various creditors, statutory obligations and stakeholders.

i) Trade Receivables

Credit risk is the risk of financial loss to the Company in the event of a trade partner’s failure to meet its contractual obligations. The Company is primarily exposed to credit risk arising from its trade receivables. This risk is managed in accordance with established policies, procedures, and controls that govern the assessment and monitoring of trade partner creditworthiness.

To measure impairment losses, the Company applies the simplified approach permitted by Ind AS 109, using a provision matrix to recognize lifetime expected credit losses (ECL) on its portfolio of trade receivables. The provision matrix is developed based on historically observed default rates over the expected life of the receivables, and it is further adjusted to reflect current and forward-looking macroeconomic conditions. The Company consistently measures the loss allowance for trade receivables at an amount equal to lifetime ECL. This approach uses practical expedients under the simplified model and incorporates the ageing profile of receivables. Based on an internal assessment—considering historical trends and presently available data on defaults and delays—the credit risk on trade receivables is assessed to be low.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

The management believes that no further provision is necessary in respect of trade receivables based on historical trends of these customers. Further, the Company’s exposure to customers is diversified and no single customer has significant contribution to trade receivables balances.

ii) The Company maintains its cash and cash equivalents and term deposits (if any) with reputed banks. The credit risk on these instruments is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies.

iii) Financial assets other than trade receivables and cash and cash equivalents are not exposed to any material credit risk.

c) Liquidity Risk

Liquidity risk refers to the risk that the Company may not be able to meet its financial obligations as they fall due, whether under normal conditions or during periods of stress, without incurring unacceptable losses or adversely affecting its financial position and reputation.

The Company’s liquidity management approach is focused on ensuring that it has adequate liquidity to meet its liabilities as they become due. This includes maintaining access to sufficient funding sources and aligning the maturity profiles of financial assets and liabilities.

The ultimate responsibility for managing liquidity risk lies with the Board of Directors, which has established a robust framework to oversee the Company’s short-term, medium-term, and long-term funding and liquidity needs. The Company actively manages its liquidity risk by maintaining adequate internal accruals, equity infusion when necessary, and by strategically matching the maturities of its financial assets and liabilities.

The table below has been drawn up based on the undiscounted contractual maturities of the financial liabilities including interest that will be paid on those liabilities upto the maturity of the instruments.

The details of the contractural maturities of significant liabilities as at March 31, 2025 are as follows:

[42] CAPITAL MANAGEMENT

For the purpose of capital management, the Company defines capital as the aggregate of issued equity share capital and other equity reserves attributable to its equity shareholders. The primary objective of capital management is to ensure the Company's continued operation as a going concern while maximizing shareholder value.

The Company actively manages its capital structure by adapting to changes in economic conditions, annual operating plans, and long-term strategic investment goals. To achieve an optimal capital structure, it may adjust dividend payouts, return capital to shareholders, or issue new equity. The current capital structure primarily consists of equity, supplemented by borrowings. The Company is not subject to any externally imposed capital requirements.

[43] SEGMENT REPORTING

a) Details of principal activities and reportable segment

Operating segements are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker

(CODM), in deciding how to allocate resources and assessing performance. The Company's Chief decision maker is the Chief Executive Officer and Managing Director.

The Company has identified two business segment as reportable segments. The business segment comprise of Erection, Commissioning and Supervision Contract etc. and Trading activities.

Revenue and expenses directly attributable to segments are reported under each reportable segement. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All othe expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Property, Plant and equipment that are used interchangebly among segments are not allocated to reportable segments.

b) Geographical segment

Company’s performance is predominantly driven by domestic operations, and hence, no separate geographical segment has been identified. Accordingly, no additional segmental disclosures are presented in the financial statements.

c) Information about major customers

Revenue from two customers (related parties) of the Company represents 100% (March 31, 2024: two customers (related parties) represents 100%) of the Company's total revenue.

[44] OTHER STATUTORY INFORMATION:

i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

iii) The Company has not traded or invested in Crypto currency or Virtual currency during the current and previous year.

iv) The Company has not advanced or loaned or invested funds to any other persons(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.

v) 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.

vi) The Lender of the company has not declared company as willful defaulter by any bank or financial institution or any lender and also company has not defaulted in repayment of loan to the lender.

vii) The Company has no subsidiary, associates and joint venture down word.

viii) The Company has not entered into any 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).

ix) Compliance with approved scheme(s) of arrangements

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

x) Valuation of property, plant and equipment, intengible assets and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(1) Total Debts = Long term Loans Current maturities of Long term debts Lease Liabilities

(2) Shareholder's Fund = Equity Share Capital Other Equity (i.e. Reserve and Surplus etc.)

(3) Earning for Debt Service = Net Profit befor taxes Depreciation and other amortization Long term debt interest Lease Finance Cost

(4) Debt Service = Long term debt interest Lease Payment Principal Repayment of Long term debt

(5) Average Inventory = (Opening Closing Balance)/2

(6) Average Trade Receivables = (Opening Closing Balance)/2

(7) Average Trade Payable = (Opening Closing Balance)/2

(8) Working Capital = Current Assets - Current Liabilities

(9) Capital Employed = Tangible Net Worth - Total Long Term Debts Lease Liabilities

[47] The previous years’ figures have been regrouped / reclassified, wherever necessary, to conform with the current year presentation.