Shashijit Infraprojects Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

N. Provisions, Contingent Liabilities, Contingent assets and Commitments:

A provision is recognized when the company has a present obligation (legal or constructive) as a result of past
events and it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on managements'' best estimates required to settle the obligation at
the Balance Sheet date.

These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. The expense
relating to a provision is presented in the statement of profit and loss.

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 future events not wholly
within control of the Company.

Contingent liability is disclosed in the case of:

• present obligation arising from past events, when it is not probable that an outflow of resources will be
required to settle the obligation;

• A present obligation arising from past events, when no reliable estimate is possible;

• A present obligation arising from past events, unless the probability of outflow of resources is remote.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

Contingent Assets are neither recognized nor disclosed in the Standalone Financial Statement. However, when
an inflow of economic benefits is probable, such contingent assets are disclosed in the notes to the financial
statements. When the realization of income is virtually certain, the related asset is recognized.

O. Financial instruments:

A 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.

i. Financial assets

Initial recognition and measurement

All 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.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortized cost.

• Financial assets at fair value.

When assets are measured at fair value, gains and losses are either recognized entirely in the statement
of profit and loss (i.e. fair value through profit or loss), or recognized in other comprehensive income
(i.e. fair value through other comprehensive income). A financial asset that meets the following two
conditions is measured at amortized cost (net of any write down for impairment) unless the asset is
designated at fair value through profit and loss under fair value option.

When assets are measured at fair value, gains and losses are either recognized entirely in the statement
of profit and loss (i.e. fair value through profit or loss), or recognized in other comprehensive income
(i.e. fair value through other comprehensive income). A financial asset that meets the following two
conditions is measured at amortized cost (net of any write down for impairment) unless the asset is

designated at fair value through profit and loss under fair value option.

A financial asset that meets the following two conditions is measured at fair value through other
comprehensive income unless the asset is designated at fair value through profit and loss under fair
value option.

• Business model test: The financial asset is held within a business model whose objective is achieved
by both collected contractual cash flows and selling financial instruments.

• Cash flow characteristics test: The contractual terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Derecognition

When the Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ''pass -
through'' arrangement; it evaluates if and to what extent it has retained the risks and rewards of
ownership.

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar
financial assets) is primarily derecognized when:

• The rights to receive cash flows from the asset have expired, or

• Based on above evaluation, either

(a) The Company has transferred substantially all the risks and rewards of the asset, or

(b) The Company has neither transferred nor retained substantially all the risks and rewards of the
asset, but has transferred control of the asset

When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognize the transferred asset to the extent
of the Company''s continuing involvement. In that case, the Company also recognizes an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement
and recognition of impairment loss on the following financial assets and credit risk exposure:

Trade receivables that result from transactions that are within the scope of Ind AS 18

The application of simplified approach does not require the Company to track changes in credit risk.
Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right
from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines
that whether there has been a significant increase in the credit risk since initial recognition. If credit risk
has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit
risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the
instrument improves such that there is no longer a significant increase in credit risk since initial
recognition, then the entity reverts to recognizing impairment loss allowance based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with
the contract and all the cash flows that the entity expects to receive (i.e., all cash shortfalls), discounted

at the original EIR. When estimating the cash flows, an entity is required to consider:

• All contractual terms of the financial instrument (including prepayment, extension, call and similar
options) over the expected life of the financial instrument. However, in rare cases when the expected
life of the financial instrument cannot be estimated reliably, then the entity is required to use the
remaining contractual term of the financial instrument

• Cash flows from the sale of collateral held or other credit enhancements that are integral to the
contractual terms

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/
expense in the statement of profit and loss. This amount is reflected in the statement of profit and loss
in other expenses. The balance sheet presentation for various financial instruments is described below:

• Financial assets measured as at amortized cost, trade receivables and lease receivables: ECL is
presented as an allowance, i.e., as an integral part of the measurement of those assets in the balance
sheet. The allowance reduces the net carrying amount. Until the asset meets write-o- criteria, the
Company does not reduce impairment allowance from the gross carrying amount.

ii. Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit
or loss or at amortized cost, as appropriate. All financial liabilities are recognized initially at fair value
and, in the case of loans and borrowings, net of directly attributable transaction costs. The Company''s
financial liabilities include trade payables and other payables.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial
liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the
near term. This category also includes derivative financial instruments entered into by the Company
that are not designated as hedging instruments in hedge relationships as defined by Ind AS 109.
Separated embedded derivatives are also classified as held for trading unless they are designated as
effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the profit
or loss. The Company has not designated any financial liability as at fair value through profit and loss.

Financial liabilities at amortized cost

After initial recognition, interest-bearing loans and borrowings and other payables are subsequently
measured at amortised cost using the EIR method. Gains and losses are recognized in profit or loss
when the liabilities are derecognized as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit and loss.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires.

iii. Off setting of financial instruments

Financial assets and financial liabilities are off-set and the net amount is reported in the balance sheet if
there is a currently enforceable legal right to off-set the recognized amounts and there is an intention to
settle on a net basis, to realise the assets and settle the liabilities simultaneously.

P. SEGMENT REPORTING:

The Company is mainly engaged in the business of Construction of residential buildings/commercial complexes
and activities connected and incidental thereto. The Company operates in only one geographical segment -
within India.

Q. CASH & CASH EQUIVALENTS:

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and bank balances,
as defined above.

R. EARNING PER SHARE:

The Company presents basic and diluted earnings per share ("EPS") data for its equity shares. Basic EPS is
calculated by dividing the profit or loss attributable to equity shareholders of the Company by the weighted
average number of equity shares outstanding during the period. The diluted EPS is calculated on the same
basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the
potential dilutive equity shares is anti-dilutive.

a. Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected
in the assumptions when they occur:

b. Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the
reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year, are described below. The Company based its
assumptions and estimates on parameters available when the financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to market
changes or circumstances arising that are beyond the control of the Company. Such changes are reflected
in the assumptions when they occur:

i. Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and
timing of future taxable income. Given the wide range of business relationships and the long-term
nature and complexity of existing contractual agreements, differences arising between the actual
results and the assumptions made, or future changes to such assumptions, could necessitate future
adjustments to tax income and expense already recorded. The Company establishes provisions,
based on reasonable estimates, for possible consequences of audits by the tax authorities. The
amount of such provisions is based on various factors, such as experience of previous tax audits and
differing interpretations of tax regulations by the taxable entity and the responsible tax authority.
Such differences of interpretation may arise on a wide variety of issues depending on the conditions
prevailing in the Company''s domicile.

ii. Defined benefit plans (gratuity benefits)

The Company''s obligation on account of gratuity and compensated absences is determined based on
actuarial valuations. An actuarial valuation involves making various assumptions that may differ
from actual developments in the future. These include the determination of the discount rate;
future salary increases and mortality rates. Due to the complexities involved in the valuation and its
long-term nature, these liabilities are highly sensitive to changes in these assumptions. All
assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount
rate, the management considers the interest rates of government bonds in currencies consistent
with the currencies of the post-employment benefit obligation. The mortality rate is based on
publicly available mortality tables for the specific countries. Those mortality tables tend to change
only at interval in response to demographic changes. Future salary increases and gratuity increases
are based on expected future inflation rates for the respective countries. Further details about
gratuity obligations are given in Refer Note 36.

iii. Property, plant and equipment

Refer Point (E) of Note - 1 for estimated useful lives of property, plant and equipment. The carrying
value of property, plant and equipment has been disclosed at Note 2A.

iv. Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot
be measured based on quoted prices in active markets, their fair value is measured using valuation
techniques including the Discounted Cash Flow Model. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgment is required
in establishing fair values. Judgments include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the reported fair value of
financial instruments.

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Mar 31, 2024

NOTE 2C Assets Classified as Held for Sale:

Accounting Policy

Non-current assets or disposal group are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset or disposal group and its sale is highly probable. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification. As at each balance sheet date, the management reviews the appropriateness of such classification.

Non-current assets or disposal group classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortised.

Equity share:

• The company has one class of equity shares having a par value of Rs. 2/- each. Each shareholder is eligible for one vote per share held.

• In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distributing of preferential amounts, in proportions to their shareholding.

** On and from Record Date of 27th October ,2023, the equity shares of the Company have been sub-divided, such that 1 (One) equity share having Face Value of Rs.10/- (Rs. Ten only) each, fully paid-up, stands sub-divided into 5 (Five) equity shares having Face Value of Rs.2/- (Rs Two only) each, fully paid-up, ranking pari-passu in all respects. The Earnings per share for the prior periods have been restated considering the face value of Rs. 2/- each in accordance with Ind AS 33 -"Earnings per share"

15.1) Terms of Repayment

A) Term Loan from Kotak bank is secured by way of hypothecation of plant & machinery.

B) The vehicle loan is secured by way of hypothecation of respective vehicles

C) Repayment profile of term loan is set out as below

D) Home Loan From ICICI Bank is secured against mortgage of Flat purchased at Valsad

E) Borrowings has not been used for any other purpose in accordance with the sanction letter.

18.1) Working Capital Loan from The Saraswat Co-Operative Bank Ltd. secured as primary security by way of first charge of present and future Book debt of the Company and is further secured as secondary security by way of

office situated at Plot No. 209, Shop No. 23, 2nd Floor and personal property of director i.e shop no 23, 3^rd floor, Girnar Khushboo Plaza, GIDC, and shop no 2 Maitry tower Chala VAPI. Further, directors are also collaterally secured by way of personal guarantee.

18.2) Overdraft facility from the The Saraswat Co-Operative Bank Ltd, Vapi Branch

18.3) Raw Material Assistance from The National Small Industries Corporation Ltd. Against Bank Guarantee of Bank of Baroda on behalf of Saraswat Co- Operative Bank Ltd.

18.4) Reconciliation and reasons for discrepancies in quarterly statement filed with the bank as compare to books.

1. Method used to determine the contract revenue:-

Contract Revenue has been determine on the basis of percentage of total contract revenue with respect to the stage of completion as on the date of balance sheet and where contract is on Lumpsum Basis the Contract Revenue is determined on Completion per square meter basis.

2. Method used to determine stage of completion:-

Stage of completion of a particular contract is determined as a proportion of contract cost incurred for work performed upto the reporting date to the estimated total contract cost.

NOTE: 31 CONTINGENT LIABILITY

Income tax department raised a demand under section 143(3) of Income tax Act, 1961 of Rs. 11,13,145/- for AY 2018-19 vide assessment order dated 25th March, 2021. Our company has filed an appeal to the Commissioner of Income tax (Appeals) and this matter is still pending. The company believes that in appeal the demand will be removed or will get substantial relief. Also, the Income Tax Department has adjusted the tax demand for the AY 2018-19 of Rs. 11,13,145/- along with interest of Rs. 64,512/- against the tax refund due for the AY 2020-21 vide intimation Order dated 14th September, 2021.

(IV) ACTUARIAL ASSUMPTION:

We have used actuarial assumptions selected by the Company. The Company has been advised that the assumptions selected should be unbiased and mutually compatible and should reflect the Company''s best estimate of the variables of the future. The Company has also been advised to consider the requirements of Para 144 of Ind AS19 in this regard.

The salary growth rate indicated above is the Company''s best estimate of an increase in salary of the employees in future years, determined considering the general trend in inflation, seniority, promotions, past experience and other relevant factors such as demand and supply in employment market, etc.

(V) The company operates gratuity plan wherein employee is entitled to the benefit as per scheme of the company for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.

Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.

The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments

Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings

(i) Equity Price Risk

The company''s investment portfolio consists of investments in publicly traded companies, quoted instruments carried at fair value in the balance sheet

(ii) Credit risk

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly

The company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information such as : (i) Actual or expected significant adverse changes in business, (ii) Actual or expected significant changes in the operating results of the counterparty, (ii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations

(iii) Liquidity risk

Liquidity risk 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 corporate treasury department is responsible for liquidity, funding as well as settlement management.

In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows

The Company is mainly engaged in the business of Construction of residential buildings/commercial complexes and activities connected and incidental thereto and company also engaged in managing and operating lake which taken on lease. Company operating various recreational activities on lake. On that basis, the Company has two reportable business segment - Construction and government infrastructure, the results of which are embodied below. The Company operates in only one geographical segment-within India.

# Pertains to government infrastructure division being classified as discontinued operation.

The business activities of the company are in two segments, i.e Works contract and Revenue from Nagarpalika Lake. However, during the current quarter vapi nagarpalika has terminated their contract to develop and operate of all three lake taken on the lease. Hence during this quarter company is working under single segment only. The company discloses information to enable its users regarding its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates as per IND AS 108. The Company Derecognise the Assets and Liabilities as per applicable IND AS.

The Company''s Construction segment includes Construction and Development of Immovable Properties. This segment grew by -22.20 % and contributed 99.74% to the total revenues.

Revenue from discontinuing includes managing and operating Government Infrastructure like Lake''s. This segment grew by -73.86 % and contributed .26% to the total revenues.

(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 under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

(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 been declared as a Wilful Defaulter by any bank or financial institution or Government or any Government authority.

(iv) The Company has not traded or invested in Cryptocurrency or Virtual Currency during the year ended March 31, 2024.

(v) The Company do not have any transactions with struck off companies.

(vi) 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).

(vii) The company does not have any subsidiary, so non-compliance with number of layers prescribed under section 2(87) of the Act is not applicable.

(viii) The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

1. 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

2. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ix) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

1. 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

2. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Previous year figures have been reclassified / regrouped/ recast, wherever necessary.

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Mar 31, 2018

NOTES - 1

1. Corporate Information:

M/S. Shashijit Infraprojects Limited is a Public limited company formerly known as “Shashijit Infraprojects Private Limited” & ”Shashijit Construction Private Limited” having its registered address at Plot No. 209, Shop No. 23, 2nd Floor, Girnar Khushboo Plaza, GIDC, Vapi, Gujarat 396195, CIN NO.: L45201GJ2007PLC052114 and PAN No. AALCS3256J engaged in the business of contractors and undertake related/allied activities.

2.1) Rights, preferences and restrictions attached to shares Equity share:

The company has one class of equity shares having a par value of Rs. 10/- each. Each shareholder is eligible for one vote per share held.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distributing of preferential amounts, in proportions to their shareholding.

2.2) During the financial year 2016-17, the Company had increased it Authorised Share Capital from Rs.25 lacs to Rs. 10 crores after taking necessary approval from the shareholders in the EGM held on 01/08/2016. The Company, after getting necessary approval from the shareholders in the EGM held on 01/08/2016 had issued 23,80,000 Equity Shares of Rs. 10/- each at an issue price of Rs. 15/- each (including Premium of Rs. 5/- per share) by way of Intiail Public Offering. The IPO was made with the object of Purchase of Machinery, Scaffolding Equipments, Repayment of Loan, meeting the Working Capital Requirement and General Corporate Purpose requirement of the Company and the proceeds from the IPO were partly utlised for the purpose as stated in the prospectus and the remaining were kept as Fixed deposits in bank.

3.1) Terms of Repayment

A) Term loan from Saraswat Bank is secured by way of hypothecation of plant & machinery.

B) The vehicle loan is secured by way of hypothecation of respective vehicles

C) Repayment profile of term loan is set out as below

4.1) Working Capital Loan from The Saraswat Co-Operative Bank Ltd. secured as primary security by way of first charge of present and future Book debt of the Company and is further secured as secondary security by way of office at Girnar Khushboo Plaza”23 2nd floor, GIDC VAPI 396195. Further directors are also collaterally secured by way of personal guarantee.

4.2) Overdraft facility from the The Saraswat Co-Operative Bank Ltd, Vapi Branch

5.1) The company has not received any information from “suppliers” regarding their status under the Micro, Small and Medium enterprises Development Act, 2006 and hence disclosure if any relating to the amount un-paid at the end of year together with interest paid/ payable as required under the said Act have not been furnished.

6.1) Discloure pursuant to Accounting standard (AS-15) - Employee Benefits prescribed by companies (Accounting standard Amendment Rules 2006). The company provides for short term employees benefit like Bonus etc. during the year in which the employees perform the services. Leave encashment is accounted for on cash basis and no provision for the same has been maintained. Company make provision for the gratuity as per actuarial report.

i) Method used to determine the contract revenue:-

Contract Revenue has been determine on the basis of percentage of total contract revenue with respect to the stage of completion as on the date of balance sheet.

ii) Method used to determine stage of completion:-

Stage of completion of a particular contract is determined as a proportion of contract cost incurred for work performed upto the reporting date to the estimated total contract cost.

(iii) The company operates gratuity plan wherein employee is entitled to the benefit as per scheme of the company for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.

Defined Benefit Plans- Leave Encashment

Company encashes leaves every year in the month. Necessary provision has been made in the books.

Note:7 Money raised through public issue & its Utilization:

During the year ended March 31, 2017, the company had raised Rs.3,49,20,000/- through public issue: