You should read the following discussion and analysis of our financial condition and results of operations, and our assessment of the factors that may affect our prospects and performance in future periods, together with our Restated Financial Information for the period ended Fiscal 2026, Fiscal 2025 and Fiscal 2024, including the notes thereto and reports thereon, each included in this Red Herring Prospectus. Unless otherwise indicated or the context otherwise requires, the financial information for the period ended Fiscal 2026, Fiscal 2025 and Fiscal 2024, included herein is derived from the Restated Financial Information, included in this Red Herring
Prospectus. For further information, see "Financial Information" on page 263. Our financial year ends on March 31 of each year, and references to a particular year are to the 12 months period ended March 31 of that year.
Unless otherwise indicated, industry and market data used in this section has been derived from the industry report titled "India Power EPC Market" dated March 26, 2025 and updated on August 10, 2026 (the "Mordor Report") prepared and issued by Mordor Intelligence Private Limited ("Mordor Intelligence"), appointed by us on January 13, 2025, and exclusively commissioned and paid for by us in connection with the Offer. Mordor Intelligence is an independent agency which has no relationship with our Company, our Promoters, Promoter Group or any of our Directors or KMPs or SMPs. The data included herein includes excerpts from the Mordor Report and may have been re-ordered by us for the purposes of presentation. There are no parts, data or information (which may be relevant for the proposed Offer), that has been left out or changed in any manner. Unless otherwise indicated, financial, operational, industry and other related information derived from the Mordor Report and included herein with respect to any particular year refers to such information for the relevant calendar year. A copy of the Mordor Report is available on the website of our Company at https://swastikainfra.com/ until the Bid/Offer Closing Date. For more information, see "Risk Factors Certain sections of this Red Herring Prospectus disclose information from the Mordor Report which have been commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks" on page 59.
Unless the context otherwise requires, in this section, references to "we", "us" and "our" "our Company" or "the Company" refer to Swastika Infra Limited.
Business Overview
We are an engineering, procurement and construction company, specializing in execution of power T&D infrastructure projects ("EPC Power Projects"). Our scope of services in EPC Power Projects covers a comprehensive range of activities, ensuring execution from procurement to commissioning. We provide complete solutions on a turnkey basis, including the supply, erection, installation, testing, and commissioning of power infrastructure. Our scope of work extends to
(i) underground cabling work, where we handle the laying, installation, and commissioning of high-voltage/low-voltage power cables to enhance efficiency and reduce power losses;
(ii) construction of substations (Gas Insulated Substations /Air Insulated Substations/Grid Sub Station), ensuring seamless power distribution through installation of power transformers, circuit breakers, ring main unit, and other essential components;
(iii) undertaking rural and urban electrification projects, which involves working towards expanding electricity access in underserved regions by implementing distribution networks, service connections, and feeder lines in compliance with government electrification schemes;
(iv) installation of street lighting systems to enhance urban and rural infrastructure; and
(v) Renewable energy works.
As of July 31, 2026 we have a proven track record of 15 years in executing EPC Power Projects, covering a total of 18,579.47 kilometers ("KM") of distribution lines. Our portfolio includes thirty-six (36) successfully completed power distribution infrastructure projects across six (6) Indian states, with a total contract value of 76,467 Lakhs. For information with respect to our completed projects, see "Our Completed Projects" on page 213. Our order book, as on July 31, 2026, comprises of eighteen (18) ongoing EPC Power Projects across six (6) Indian states, with an aggregate order value of 2,03,665 Lakhs. This includes an order book worth 91,655 Lakhs, representing anticipated revenues from the balance portion of existing ongoing contracts (signed agreements where all preconditions, including letters of intent/allotment issued by the client, have been met). Our order book-to-revenue from operations ratio stood at 1.41 times as of Fiscal 2026, 1.92 times for Fiscal 2025 and 2.08 times for Fiscal 2024. For information in respect of our ongoing projects, see "Our Order Book" on page 214.
Incorporated in August 2019, pursuant to the conversion of the partnership firm "Swastika Electricals & Fertilizers" (the "Partnership Firm"), which was originally constituted under a registered partnership deed on
October 23, 1969, and last reconstituted on February 1, 2019. The Partnership Firm was initially engaged in the business of trading electrical items such wires, cables, etc. In the year 2012, recognizing the growth of electricity distribution infrastructure, we strategically entered into the power distribution sector, undertaking and executing small-scale EPC projects. Between 2012 and 2019, we focused on enhancing our expertise in power project execution, adapting to evolving market dynamics, and strengthening our technical, financial, and operational capabilities. This period was instrumental in laying the foundation for our transition into a structured and scalable organization. Over time, we expanded our capabilities, take us onto larger and more complex EPC power projects, strengthening our position in the industry.
Since 2012, we have steadily expanded our execution capabilities, increasing the scale of projects we can bid for and execute. Our first project, awarded in 2012 by the Rajasthan State Industrial Development and Investment
Corporation ("RIICO"), for conversion of overhead lines to underground cable line system at Rajasthan, India, with an aggregate contract value of 60.00 Lakhs. More recently, we have been awarded an EPC Power Projects for the development of distribution infrastructure at Sikar circle of Ajmer Discom, Rajasthan under the Ajmer
Vidyut Vitran Nigam Ltd. ("AVVNL"). This project, awarded by the Ajmer Vidyut Vitran Nigam Ltd.
(" AVVNL"), is of contract value of 34,010 Lakhs. This journey, from 60 Lakhs to a single order worth 34,010
Lakhs over 15 years, highlights our core capabilities in operational expertise within the power segment. The Company has further expanded its presence in the transmission and renewable energy vertical by securing four (4) orders from RRVPNL, one (1) order from RSDCL and one (1) order from WBSEDCL, with aggregate tender values of 17,051.39 lakhs, 15,812.00 lakhs and 6,420.31 Lakhs, respectively.
As of 31 July, 2026, we have eighteen (18) ongoing projects. We undertake contracts independently or whenever required, through our project-specific joint ventures as lead partner with other entities when a project requires us to meet specific eligibility requirements, including requirements relating to particular types of technical experience. Under our Joint Venture Arrangement, the joint venture partners involvement is typically limited to the qualification stage, and they remain primarily a formal entity for the bid, with our Company handling the full project execution.
Under such project-specific joint ventures, we typically assume the role of the lead partner, taking full responsibility for project execution, management, and delivery. This includes the selection and supervision of subcontractors, ensuring that the project meets the required quality, timeline, and regulatory standards. While the JV structure allows us to leverage the experience of our partners, we retain overall control over project execution. In addition, to establish or preserve relationships with other contractors, we at times form project-specific joint ventures to assist other qualified contractors to achieve bid qualification. In such cases, we do not include these projects in our order book.
Since 2012, we have completed thirty-six (36) EPC Power Projects having an aggregate contract value of 76,467 Lakhs. For information in respect of our completed projects, see "Our Completed Projects" on page 213. For information in respect of our ongoing projects, see "Our Order Book" on page 214 and "History and Certain Corporate Matters Our Joint Ventures" on page 232.
We believe that our execution capabilities have helped us to create a marquee client base consisting of government utilities such as West Bengal State Electricity Distribution Company Limited ("WBSEDCL"), Madhya Gujarat Vij Company Limited ("MGVCL"), Assam Power Distribution Company Limited ("APDCL"), Goa Electricity Department ("GED"), Himachal Pradesh State Electricity Board Limited ("HPSEBL"), and Uttar Haryana Bijli Vitran Nigam (UHBVN), Jaipur Vidyut Vitran Nigam Limited ("JVVNL"), Uttarakhand Power Corporation Limited ("UPCL"), Ajmer Vidyut Vitran Nigam Limited ("AVVNL"). Rajasthan Solar Park Development Company Ltd. ("RSDCL"), Maharashtra State Electricity Distribution Company Ltd. ("MSEDCL") and Rajashtan Rajya Vidyut Prasaran Nigam Ltd ("RRVPNL"). A significant portion of our projects are autonomously funded by the World Bank Limited ("World Bank") or backed by Ministry of Power, Government of India ("GoI"), ensuring financial stability and support for large-scale infrastructure development;
Breakup of our completed projects on the basis of project funding agencies as on date of this RHP is;
| Funding Agency | Amount ( in Lakhs) |
| Central Government Funded | 34,015 |
| World Bank | 19,502 |
| State Government Funded | 21,795 |
| Other Government Agency | 1,155 |
| Total | 76,467 |
Breakup of our ongoing project on the basis of project funding agencies as on July 31, 2026 is;
( in Lakhs)
| Funding Agency | Total Order Value | Value of work completed | Balance Work Value |
| Central Government Funded | 57,883 | 34,558 | 23,325 |
| World Bank Funded | 71,905 | 54,236 | 17,669 |
| State Government Funded | 41,014 | 23,216 | 17,798 |
| Funded from Internal Resources/Borrowings | 32,863 | 0* | 32,863 |
| Total | 2,03,665 | 1,12,010 | 91,655 |
*Recently awarded projects work to be started
The business of our Company can be classified under two verticals i.e. (i) EPC Power Projects; and
(ii) Sale of products.
EPC Power Projects - Our scope of services in EPC Power Projects covers a comprehensive range of activities, ensuring execution from procurement to commissioning. We provide end-to-end solutions on a turnkey basis, including the supply, erection, installation, testing, and commissioning of power infrastructure. We undertake projects on turnkey basis, which include following services;
(i) Underground cabling work Our company offers a comprehensive turnkey solution for the design, sourcing, erection, testing, and commissioning of distribution lines up to 33 KV. The process of laying these distribution lines begins with detailed route surveys and design work, taking into account the assessment of various terrains. Our service encompasses excavation, foundation work, cushioning, brick laying, sand filling, as well as associated instrumentation and control works. Following these stages, we conduct testing and commissioning of lines to ensure the reliability and safety of the infrastructure. As of July 31, 2026, we have successfully laid 18,579.47 KM of distribution lines, a testament to our experience and expertise in the field.
(ii) Construction of substations (GIS/AIS/GSS) Our scope of work in the sub-station project includes all activities from survey of the site, to designing, procurement of requisite materials, inspection of the materials, civil works and foundation, erecting, testing and commissioning of the sub-station and installation of charging lines
(iii) Rural and urban electrification projects Our work in rural and urban electrification includes modernizing 33/11 kV substations, upgrading transformers, and optimizing power distribution through re-conductoring, load bifurcation, feeder separation, and HVDS implementation. We enhance reliability by deploying Aerial Bunched Conductors, replacing electromagnetic meters with tamper-proof electronic meters, and installing capacitor banks for improved power quality. Additionally, we ensure universal electricity access for rural households and work to reduce AT&C losses
(iv) Installation of street lighting systems We provide EPC services for street lighting projects, including the design, supply, and installation, LED lighting systems for streets, roads, and highways.
(v) Renewable Energy Works Our Company undertakes a broad range of renewable energy infrastructure works, including solar park development, power evacuation systems, substations, transmission lines and associated electrical infrastructure. Our scope covers survey, design, engineering, procurement, construction, erection, testing and commissioning of renewable energy projects. The Company has recently secured orders for solar park development and solar pump installations, further strengthening its presence in the renewable energy and power T&D segments.
Our Companys revenue from operations for period ended Fiscal 2026, Fiscal 2025 and Fiscal 2024 are detailed below:
( in Lakhs, unless stated otherwise)
| Our operations | Fiscal 2026 | As % of Revenue from Operations | Fiscal 2025 | As % of Revenue from Operations | Fiscal 2024 | As % of Revenue from Operations |
| EPC Power Projects (A) | 48,782.30 | 97 | 33,904.31 | 97 | 18,827.89 | 90 |
| Sale of Products (B) | 1,575.02 | 3 | 1,171.50 | 3 | 2,129.64 | 10 |
| Total (A + B) | 50,357.32 | 100 | 35,075.82 | 100 | 20,957.53 | 100 |
Over the years, we have built a dedicated team of Sixty five (65) engineers & technicians engineers specializing in design, engineering, and construction across electrical, mechanical, and civil disciplines for the execution of EPC Power Projects. Our in-house expertise allows us to manage project requirements, ensuring efficient planning and execution.
We have adopted an asset-light business model which allows us to keep our capital requirements low and in turn help us by reducing maintenance costs of equipment. Our asset light approach is reflected in our fixed asset turnover ratio, which stood at 70.72, 153.67 and 78.90 for the period ended Fiscal 2026, Fiscals 2025 and Fiscal 2024, respectively. We typically assign a portion of projects, specifically the erection work, to third-party contractors, who are responsible for executing this part of the contract using their on-site manpower and equipment. We facilitate this process by supplying construction materials and electrical equipment through our centralized procurement team, ensuring standardized quality and cost efficiency. Our on-site engineers and project managers closely monitor and oversee work in progress, ensuring strict adherence to design specifications, quality standards, and project timelines. This integrated approach enables us to maintain quality control, optimize resource utilization, and ensure the timely and efficient completion of power infrastructure projects.
We are led by our Promoter, Babulal Gupta, Vinay Gupta, Ruchira Gupta, Manoj Modi, Biren Parnami and Vatsalya Gupta, who collectively bring vast experience in the EPC industry and have been actively involved in our business operations. Vinay Gupta, with extensive experience in project execution and business development, plays a key role in shaping the companys vision and expansion strategy. Ruchira Gupta contributes financial and administrative expertise, ensuring smooth business operations. Manoj Modi, with a strong background in project management, enhances execution capabilities, while Biren Parnami focuses on financial planning and business strategy. Vatsalya Gupta contributes to the companys growth initiatives and strategic planning, bringing a forward-looking approach to its direction. Our Promoters remain actively involved in the companys operations, bringing leadership, vision, and business acumen, which have been instrumental in sustaining our business operations and growth. In addition, we have a dedicated management team with deep industry knowledge, allowing us to identify and capitalize on market opportunities effectively. The experience of our senior management team has been a significant factor in our growth and success. For further details, refer to "Our Promoters" on page 255 and "Our Management" on page 238.
Financial Performance Indicator
From the commencement of our business operations, we have witnessed a rise in our revenue from operations and have demonstrated profitability with operating performance. Our Company achieved total income of 50,556.89 Lakh for the period ended Fiscal 2026, 35,260.34 Lakhs in Fiscal 2025 and 21,133.44 Lakhs in Fiscal 2024.
Our key performance indicator for the period ended Fiscal 2026, Fiscal 2025 and Fiscal 2024 are detailed below:
( in Lakhs, unless stated otherwise)
| Particulars | Units | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Total Income | ( in lakhs) | 50,556.89 | 35,260.34 | 21,133.44 |
| Revenue From Operations from EPC Contracts | ( in lakhs) | 48,782.30 | 33,904.31 | 18,827.89 |
| Current ratio | (In Times) | 1.55 | 1.39 | 1.47 |
| EBITDA | ( in lakhs) | 7,084.55 | 4,388.76 | 2,370.96 |
| EBITDA Margin (in %) | (%) | 14.07% | 12.51% | 11.31% |
| Net Profit for the year | ( in lakhs) | 4,142.80 | 2,744.55 | 1,398.21 |
| Net Profit Margin (in %) | (%) | 8.23% | 7.82% | 6.67% |
| Return on Net Worth (in %) | (%) | 35.44% | 43.36% | 32.84% |
| Return on Capital Employed (in %) | (%) | 25.76% | 23.14% | 25.15% |
| Debt Equity Ratio (in times) | (In Times) | 0.73 | 1.44 | 0.88 |
| Order Book | ( in lakhs) | 68,743.52 | 65,022.73 | 39,139.13 |
| Order Book to Revenue from Operation | (In Times) | 1.41 | 1.92 | 2.08 |
As certified by our Statutory Auditors vide their certificate dated August 24, 2026
Notes:
(a) Total income represents revenue from operations and other income.
(b) Revenue from Operations from EPC Contracts represents revenue from sale of services EPC Contracts.
(c) Current Ratio is computed by dividing its total current assets by its total current liabilities.
(d) EBITDA means Earnings before interest, taxes, depreciation and amortization expense, which has been arrived at by obtaining the profit before tax/ (loss) for the year and adding back finance costs (Excluding Interest on Lease Liability and Defined Benefit Obligation) , depreciation and amortization expense.
(e) EBITDA margin is calculated as EBITDA as a percentage of revenue from operations.
(f) Net Profit after tax represents the restated profits of our Company after deducting all expenses.
(g) Net Profit margin is calculated as restated profit/ (loss) for the year divided by revenue from operations.
(h) Return on net worth is calculated as Net profit after tax, as restated, attributable to the owners of the Company for the year divided by Average Net worth. Average net worth means the average of the aggregate value of the paid-up share capital and reserves and surplus of the current and previous financial year.
(i) Return on capital employed calculated as Earnings before interest and taxes (Excluding bank charges & commission and interest on defined benefit obligations and lease liability) divided by capital employed (capital employed calculated as aggregate value of total equity and total debt).
(j) Debt- equity ratio is calculated by dividing total debt by total equity. Total debt represents long term and short-term borrowings. Total equity is the sum of equity share capital, reserves and surplus.
(k) Order book is shown figure of the work order in hand with the company at the end of period.
(l) Order Book to revenue from operation is calculated as Order book at the end of the period divided by Revenue from operations represents the revenue from sale of services and other operating revenue of our Company as recognized in the Restated financial information.
FACTORS AFFECTING RESULTS OF OPERATIONS
Our results of operations and financial condition are affected by several important factors including:
Growth of our Order Book
Our Order Book represents the estimated contract value of the unexecuted portion of our existing assigned EPC contracts. As of July 31, 2026, our order book comprises 18 ongoing EPC Power Projects across six Indian states, with an aggregate order value of 2,03,665 Lakhs. This includes an order book worth 91,655 Lakhs, representing anticipated revenues from the uncompleted portion of existing ongoing contracts (signed agreements where all preconditions, including letters of intent/allotment issued by the client, have been met). Our order book-to-revenue from operations ratio stood at 1.41 times as of Fiscal 2026, 1.92 times for Fiscal 2025 and 2.08 times for Fiscal 2024, demonstrating a steady pipeline of projects that reinforces financial and operational stability. The projects in our Order Book are subject to changes in the scope of undertakings as well as adjustments to the costs relating to the contracts. The value of the orders we receive impacts our future performance. Any cancellation of orders or termination of projects by our customers may result in a reduction of our expected future revenue. Our revenues and profitability are also affected by the type, number and value of the projects we undertake in a relevant financial year, as well as the stages of completion of the relevant projects. As our projects may have different profit margins and may be in different stages of completion or operation, different amounts of revenue and profit can be recognized and/or realized at relevant times. Our results of operation from our projects may vary from fiscal to fiscal depending on the project implementation schedule. Projects which are spread over longer periods of time may also be subject to various other risks which we may not be able to control or foresee. Further, the projects awarded to us may be cancelled subsequently on account of various factors, including non-availability of land.
Our bidding and execution capabilities
As a part of our business and operations, we bid for projects on a continual basis. Projects are awarded following competitive bidding processes and satisfaction of prescribed qualification criteria. In our business, our ability to bid for EPC projects is based on our pre-qualification credentials which is based on our technical capability and performance, reputation for quality, safety record, financial strength and experience in similar projects undertaken in the past. We face significant competition for the award of projects from a large number of EPC Power Projects companies who also operate in the same regional markets as us. Further, some of our competitors are larger than us, have stronger financial resources or have a more experienced management team, or have stronger engineering capabilities in executing projects. Competition from other EPC Power Project companies may adversely affect our ability to successfully bid for projects at price levels which would generate desired returns for us. As a part of the bidding process, the nature and value of contracts executed in the past is an important factor in allowing companies to bid for the new projects. Pre-qualification is key to our winning major projects. Our net worth and track record qualify us to bid for a large number of the projects in India. To bid for some higher value contracts, we sometimes seek to form joint ventures or do joint operations with other experienced and qualified companies.
After a project is awarded, completion on time is subject to various factors, including, funding arrangements being in place, acquisition of land by the authority, obtaining the relevant licenses and approvals in a timely manner and quick mobilization of resources. We target efficient deployment of equipment and resources, quick decision- making capabilities by on-site project managers, strong relationships with vendors and effective coordination between project sites and our offices. Delays in the completion of a project can lead to our customers delaying in making our payments. Even relatively short delays or surmountable difficulties in the execution of a project could result in delays in receiving, on a timely basis, all payments due to us on a project. Our inability to complete or monetize such work in a timely manner, or at all, may adversely affect our business and results of operations.
Cost of Material Consumed
The timely and cost-effective execution of our projects is dependent on the adequate and timely supply of key materials. Our operations require various bulk materials including cables, transformers, and RMU. We procure all our materials requirements from domestic suppliers. As a part of our procurement process, we purchase in bulk from these domestic suppliers to avail possible volume-based discounts. Cost of materials consumed accounted for 79.17%, 79.93% and 77.20% of our revenue from operations for the period ended Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Cost of materials consumed primarily consists of expenses incurred towards purchase of raw materials, such as, cables, transformers, and RMU, for our ongoing projects. We may experience unanticipated increases in costs due to fluctuations in the supply and demand in the materials. At certain times, there can be a scarcity of materials, which may cause substantial increases in the prices of such materials. Transport of these raw materials is subject to various conditions beyond our control, including poor roads, inclement weather, industrial accidents, pandemic etc. Our ability to pass on increased costs to our customers depends on our contractual arrangements. If we are unable to pass on such unanticipated price increases to our customers under our contractual arrangements, we may have to absorb such increases and our business, financial condition and results of operations may be adversely affected
Availability of cost-effective funding sources
Our business requires a high amount of working capital. It is customary in the industry in which we operate to provide performance security deposit in the form of bank guarantees in favour of customers to secure obligations under contracts. In addition, letters of credit are often required to satisfy payment obligations to suppliers. Majority of the working capital funds of our Company are required for providing margin money for bank guarantee, performance deposit and letter of credit for our Projects. Further, a certain percentage of our invoice amount is subject to retention by our client which is released upon completion of project as per the terms of the contract. As on 31st March 2026, our Companys net working capital requirement consisted of 25,563.47 Lakhs which constitute 50.76% of revenue from operations. Further, as on March 31, 2025, our Companys working capital consisted of 18,498.23 Lakhs which constitute 52.74% of revenue from operations, March 31, 2024, our Companys net working capital consisted of 7,334.77 Lakhs which constitute 35.00% of revenue from operations. Our working capital requirements have increased in recent years because we have undertaken a growing number of projects within a similar timeframe and due to the general growth of our business. Further, our working capital requirements may further increase if our payment terms do not include advance payments or such contracts have payment schedules that shift payments toward the end of a project or if there is delayed advance payment or delay in mobilisation funds by our clients may also increase our working capital burdens. For instance, the time taken to initiate a project from the date of award generally varies between 2 to 3 months which results in increased net working capital requirements.
Our high working capital requirement requires us to obtain financing through various means. As on the date of this Red Herring Prospectus, we meet our working capital requirements in the ordinary course of its business from capital, internal accruals, unsecured loans, working capital loans from the banks, financial institutions, etc. As on July 31, 2026, our total borrowings stood at 12,833.52 Lakhs. For details, see "Financial Indebtedness" on page 339. We may incur additional indebtedness in the future. Additional debt financing could increase our interest costs and require us to comply with additional restrictive covenants under our financing agreements. Additional equity financing could dilute our earnings per Equity Share and investors interest in the Company and could adversely impact our Equity Share price.
Geographic locations, seasonality and weather conditions
Our business operations are dependent on the location where the project to be executed is situated. Certain of our ongoing Projects involve varied degrees of complexities such as implementation in high-traffic and high-density areas, difficult terrain, etc. Our project work is subject to seasonal variations. For example, we typically experience, slower work progress in monsoon season as compared to rest of the year. Due to these factors, comparisons of revenue and operating results between the same periods within a single year, or between different periods in different fiscals, are not necessarily meaningful and should not be relied on as indicators of our performance. We account for this seasonality in work progress and cash flow projections.
Competition
We are an engineering procurement and construction company engaged in undertaking and executing EPC Power Projects. The sector is characterized by low barriers to entry, wherein large or small enterprises who may be operating in other sectors can build up pre-qualifications, independently or through joint ventures, and bid and compete with us for projects in this sector. The presence of numerous competitors, including both established and newly qualified entities, may result in heightened competition for projects, contracts, and clients. Our competition varies depending on the size, nature and complexity of the project and on the geographical region in which the project is to be executed. The industry is highly competitive, with numerous players bidding for projects, potentially leading to price pressures. While service quality, technical ability, performance record, experience, health and safety records and the availability of skilled personnel are key factors in client decisions among competitors, price often is the deciding factor in most tender awards. Competition from other EPC Power Project Companies may adversely affect our ability to successfully bid for projects at price levels which would generate desired returns for us.
BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES
The following note provides list of the significant accounting policies adopted in the preparation of these financial statements. These policies have been consistently applied to all the year presented unless otherwise stated
Material Accounting Policies
A summary of the material accounting policies applied in the preparation of the financial statements are as given below. These accounting policies have been applied consistently to all periods presented in the financial statements.
1. Property, plant and equipment
1.1. Initial recognition and measurement
An item of property, plant and equipment recognized as an asset if and only if it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.
Items of property, plant and equipment are initially recognized at cost. Subsequent measurement is done at cost less accumulated depreciation/amortization (other than freehold land) and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition, inclusive of non- refundable taxes & duties, necessary for it to be capable of operating in the manner intended by management.
When parts of an item of property, plant and equipment have different useful lives, they are recognized separately.
Items of spare parts, stand-by equipment and servicing equipment which meet the definition of property, plant and equipment are capitalized. Other spare parts are carried as inventory and recognized in the statement of profit and loss on consumption.
1.2. Subsequent costs
Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.
"The cost of replacing part of an item of property, plant and equipment is recognized in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. All other expenses on existing property, plant and equipment, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to profit and loss account for the period in which such expense are incurred."
1.3. De-recognition
Property, plant and equipment is derecognized when no future economic benefits are expected from their use or upon their disposal. Gains and losses on de-recognition of an item of property, plant and equipment are determined by comparing the proceeds from disposal, if any, with the carrying amount of property, plant and equipment, and are recognized in the statement of profit and loss.
1.4. Depreciation
The depreciation on Property, Plant & Equipment has been provided on the written down value method as per the useful life prescribed in Schedule II to the Companies Act, 2013. Depreciation on the property, plant & equipment added / disposed off / discarded during the year has been provided on pro rata basis with reference to the date of addition / disposition /discardation. The residual values, useful lives and methods of depreciation of Property, Plant and Equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.
2. Capital work-in-progress
The cost of self-constructed assets includes the cost of materials & direct labour, any other costs directly attributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management and borrowing costs.
Expenses directly attributable to construction of property, plant and equipment incurred till they are ready for their intended use are identified and allocated on a systematic basis on the cost of related assets. Depreciation is not recorded on capital work-in-progress until construction and installation is complete and the asset is ready for its intended use.
3. Intangible assets
3.1. Initial recognition and measurement
An intangible asset is recognized if and only if it is probable that the expected future economic benefits that are attributable to the asset will flow to the company and the cost of the asset can be measured reliably.
Intangible assets that are acquired by the Company, which have finite useful lives, are recognized at cost. Subsequent measurement is done at cost less accumulated amortization and accumulated impairment losses. Cost includes any directly attributable incidental expenses necessary to make the assets ready for its intended use.
3.2. Subsequent costs
Subsequent expenditure is recognized as an increase in the carrying amount of the asset when it is probable that future economic benefits deriving from the cost incurred will flow to the enterprise and the cost of the item can be measured reliably.
3.3. De-recognition
An intangible asset is derecognized when no future economic benefits are expected from their use or upon their disposal. Gains & losses on de-recognition of an item of intangible assets are determined by comparing the proceeds from disposal, if any, with the carrying amount of intangible assets and are recognized in the statement of profit and loss.
3.4. Amortization
Intangible assets are amortised over a period of estimated useful life as determined by the management.
4. Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of cost of such asset until such time the assets are substantially ready for their intended use. Qualifying assets are assets which necessarily take substantial period of time to get eady for their intended use or sale.
Capitalization of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying assets for their intended uses are complete. Borrowing costs consist of
(a) interest expense calculated using the effective interest method as described in Ind AS 109
‘Financial Instruments
(b) finance charges in respect of finance leases recognized in accordance with Ind AS 116
‘Leases and
(c) exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs. Income earned on temporary investment of the borrowings pending their expenditure on the qualifying assets is deducted from the borrowing costs eligible for capitalization.
All other borrowing costs are recognized as an expense in the year in which they are incurred.
5. Inventories
Raw materials, stores, work-in-progress and finished goods are stated at the lower of cost and net realisable value. Cost of raw materials and stores comprises cost of purchases. Cost of work-in-progress and finished goods comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity.
Costs of inventories also include all other costs incurred in bringing the inventories to their present location and condition. Cost of raw materials are calculated on the basis of FIFO method whereas cost of finished goods are calculated on the basis of weighted average cost. Costs of purchased inventory are determined after deducting rebates and discounts.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
6. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at banks, cash 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.
7. Provisions and contingent liabilities and Contingent Assets
A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and 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 costs.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.
Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Contingent liabilities are disclosed on the basis of judgment of the management/independent experts. These are reviewed at each balance sheet date and are adjusted to reflect the current management estimate.
Contingent assets are possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Contingent assets are disclosed in the financial statements when inflow of economic benefits is probable on the basis of judgment of management. These are assessed continually to ensure that developments are appropriately reflected in the financial statements.
8. Foreign currency transactions and translation
Transactions in foreign currencies are initially recorded at the functional currency spot rates at the date the transaction first qualifies for recognition.
Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Exchange differences arising on settlement or translation of monetary items are recognized in profit or loss in the year in which it arises.
Non-monetary items are measured in terms of historical cost in a foreign currency and are translated using the exchange rate at the date of the transaction.
9. Revenue recognition
9.1. The Company derives revenues primarily from the Engineering, Procurement and Construction Business.
The Company satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met:
- As the entity performs, the customer simultaneously receives and consumes the benefits provided by the entitys performance.
- The entitys performance creates or enhances an asset (e.g., work in progress) that the customer controls as the asset is created or enhanced.
- The entitys performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date
Revenue from Operations, where the performance obligations are satisfied over the time and where there is no uncertainty as to measurement or collectability of consideration, is recognized as per the percentage-of-completion method. The Company determines the percentage-of-completion on the basis of direct measurements of the value of the goods or services transferred to the customer to date relative to the remaining goods or services promised under the contract. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.
Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. Revenue, measured at transaction price, is adjusted towards liquidated damages, time value of money and price variations, escalation, change in scope etc. wherever, applicable. Variation in contract work and other claims are included to the extent that the amount can be measured reliably, and it is agreed with customer.
Progress billings are generally issued upon completion of certain phases of the work as stipulated in the contract. The difference between the timing of revenue recognised and customer billings result in unbilled work in progress. Contractual retention amounts billed to customers are generally due upon expiration of the contract period.
Revenue from the sale of traded good is recognised upfront at the point intime when the control over the material is transferred to the customer.
The Company presents revenues net of indirect taxes in its Statement of Profit and Loss.
10. Other income
Interest income is recognized, when no significant uncertainty as to measurability or collectability exists, on a time proportion basis taking into account the amount outstanding and the applicable interest rate.
11. Employee benefits
11.1. Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognized for the amount expected to be paid under performance related pay if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.
11.2. Post-Employment benefits
Employee benefit that are payable after the completion of employment are Post-Employment Benefit (other than termination benefit). These are of two types:
11.2.1. Defined contribution plans
Defined contribution plans are those plans in which an entity pays fixed contribution into separate entities and will have no legal or constructive obligation to pay \ further amounts. Provident Fund and Employee State Insurance are Defined Contribution Plans in which the company pays a fixed contribution and will have no further obligation.
11.2.2. Defined benefit plans
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
Company pays Gratuity as per provisions of the Gratuity Act, 1972. The Companys net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is based on the prevailing market yields of Indian government securities as at the reporting date that have maturity dates approximating the terms of the Companys obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a liability to the company, the present value of liability is recognized as provision for employee benefit. Any actuarial gains or losses are recognized in Other Comprehensive Income ("OCI") in the period in which they arise.
12. Income tax
Tax expense comprises current tax and deferred tax. Current tax expense is recognized in the statement of profit or loss except to the extent that it relates to items recognized directly in other comprehensive income or equity, in which case it is recognized in OCI or equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted and as applicable at the reporting date, and any adjustment to tax payable in respect of previous years. Current taxes are recognized under ‘Income tax payable net of payments on account, or under ‘Tax receivables where there is a debit balance.
Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
Deferred tax is recognized in the statement of profit or loss except to the extent that it relates to items recognized directly in OCI or equity, in which case it is recognized in OCI or equity. A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Additional income taxes that arise from the distribution of dividends are recognized at the same time that the liability to pay the related dividend is recognized.
13. Leases
13.1. As Lessor
Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. For operating leases, rental income is recognized on a straight-line basis over the term of the relevant lease.
13.2. As Lessee
The Companys lease asset classes primarily consist of leases for buildings. The Company assesses whether a contract contains a lease at the inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and
(iii) the Company has the right to direct the use of the asset.
At the date of commencement of the lease, the Company recognizes a right-of-use (ROU) asset and a corresponding lease liability for all lease arrangements in which it is a lessee, except for leases with a term of 12 months or less (short-term leases) and low-value leases. For these short-term and low- value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the term of the lease. Certain lease arrangements include the options to extend or terminate the lease before the end of the lease term. ROU assets and lease liabilities include these options when it is reasonably certain that they will be exercised.
ROU assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or prior to the commencement date of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impairment losses. ROU assets are depreciated from the commencement date on a straight-line basis over the shorter of the lease term and useful life of the underlying asset. The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates.
14. Impairment of non-financial assets
The carrying amounts of the Companys non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment considering the provisions of Ind AS 36 ‘Impairment of Assets. If any such indication exists, then the assets recoverable amount is estimated.
The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to disposal and its value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the "cash-generating unit", or "CGU").
An impairment loss is recognized if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. Impairment losses recognized in respect of CGUs are reduced from the carrying amounts of the assets of the CGU.
Impairment losses recognized in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
15. Dividends
Dividends and interim dividends payable to a Companys shareholders are recognized as changes in equity in the period in which they are approved by the shareholders meeting and the Board of Directors respectively.
16. Earnings per share
Basic earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year. Diluted earnings per equity share is computed by dividing the net profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.
17. Statement of Cash Flows
Cash flow statement is prepared in accordance with the indirect method prescribed in Ind AS 7 ‘Statement of Cash Flows for operating activities.
18. Financial Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss ("FVTPL")) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in statement of profit and loss.
18.1. Financial assets
On initial recognition, a financial asset is recognized at fair value. All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI) depending on the classification of the financial assets.
Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.
Trade Receivables and Loans:
Trade receivables are initially recognized at fair value. Subsequently, these assets are held at amortized cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the rate that discounts estimated future cash income through the expected life of financial instrument.
Derecognition
The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.
Impairment of financial assets
Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category.
ECL is the weighted-average of difference between all contractual cash flows that are due to the
Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider: (a) All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets.
(b) Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.
In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.
For financial assets other than trade receivables, as per Ind AS 109, the Company recognises 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the balance sheet date.
18.2. Financial liabilities and equity instruments
Classification as equity
Equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
"An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. "
Repurchase of the Companys own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in statement of profit and loss on the purchase, sale, issue or cancellation of the Companys own equity instruments.
Financial liabilities
Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost unless at initial recognition, they are classified as fair value through profit or loss. In case of trade payables, they are initially recognized at fair value and subsequently, these liabilities are held at amortised cost, using the effective interest method. All financial liabilities are subsequently measured at amortized cost using the effective interest method.
Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss. Interest expense are included in the ‘Finance costs line item. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.
Derecognition of financial liabilities
The Company derecognises financial liabilities when, and only when, the Companys obligations are discharged, cancelled or have expired.
Derivative financial instruments
The Company uses forwards to mitigate the risk of changes in interest rates, exchange rates and commodity prices. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit and Loss.
19. Provision For Warranty
The estimated liability for warranty is recorded at the commencement of defect liability period. These estimates are established using historical information on the nature, frequency and average cost of obligations and management estimates regarding possible future incidence based on corrective actions during the period under warranty phase.
20. Operating Cycle
Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.
Recent Accounting Pronouncements
The 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. For the Fiscal 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
Major Estimates made in preparing Financial Statements
1. Useful life of property, plant and equipment and intangible assets
The estimated useful life of property, plant and equipment is based on a number of factors including the effects of obsolescence, demand, competition and other economic factors (such as the stability of the industry and known technological advances) and the level of maintenance expenditures required to obtain the expected future cash flows from the asset.
Useful life of the assets other than Plant and machinery are in accordance with Schedule II of the Companies Act, 2013.
The Company reviews at the end of each reporting date the useful life of property, plant and equipment, and are adjusted prospectively, if appropriate. Intangible assets are amortised over a period of estimated useful life as determined by the management.
2. Post-employment benefit plans
Employee benefit obligations are measured on the basis of actuarial assumptions which include mortality and withdrawal rates as well as assumptions concerning future developments in discount rates, the rate of salary increases and the inflation rate. The Company considers that the assumptions used to measure its obligations are appropriate and documented. However, any changes in these assumptions may have a material impact on the resulting calculations
3. Provisions and contingencies
The assessments undertaken in recognizing provisions and contingencies have been made in accordance with Ind AS 37, ‘Provisions, Contingent Liabilities and Contingent Assets. The evaluation of the likelihood of the contingent events has required best judgment by management regarding the probability of exposure to potential loss. Should circumstances change following unforeseeable developments, this likelihood could alter.
4. Allowance for credit losses on receivables
The Company determines the allowance for credit losses based on historical loss experience adjusted to reflect current and estimated future economic conditions. The Company considered current and anticipated future economic conditions relating to industries the Company deals with and the countries where it operates. In calculating expected credit loss, the Company has also considered credit reports and other related credit information for its customers to estimate the probability of default in future.
KEY COMPONENTS OF OUR REVENUE AND EXPENSES Our Income Revenue from operations
Our revenue from operations comprises of: a. Revenue from EPC contracts including unbilled revenue. b. Sales of goods which comprises of trading of electrical items like cables.
Other Income
Other income primarily includes discounts & rebates received, interest, income on banks deposits, interest received from others, fair value gain on investments, profit on sale of fixed asset, Gain on Cancellation of Lease Liability, Sundry Balances W/off and miscellaneous income.
Our Expenses
Our Expenses primarily consist of the following
Procurement of Goods and Services for EPC contracts
It consists of goods purchased for execution of our EPC contracts and Procurement of Labour Services for EPC Contracts
Purchase of Stock in Trade
It consists of material purchased for trading
Changes in Inventories of Work in Progress and Finished Goods
It reflects the change in inventory maintained by us at the end of the period / financial year;
Employee Benefit Expenses
Our employee benefits expense includes salaries & allowances, bonuses, provision for bonus, directors remuneration, contributions to provident and other fund, current service cost and staff & labour welfare expenses
Finance costs
Our finance costs primarily comprise:
(i) interest expense, which includes interest on term loans, interest on working capital loans, interest on car loan, interest on unsecured loan, interest on defined benefit obligation, interest on lease liability and interest on others
(ii) bank charges & commissions.
Depreciation and amortisation expenses
It comprises of depreciation on plant and machinery, equipments, furniture, vehicles and depreciation on right-of use assets and amortization; and.
Other expenses
Other operating expenses primarily comprises expenses related to:
(a) Site Expenses which includes,
(i) Consumables Expenses,
(ii) Crain & Hydra Hire Charges,
(iii) Electricity & Water Expenses,
(iv) Freight Charges,
(v) Insurance Charges,
(vi) Labour Cess ,
(vii) Loading & Unloading ,
(viii) Repair & Maintenance ,
(ix) Security Charges and
(x) Site Expenses Others .
(b) Administrative, Selling & Other Expenses which includes ,
(i) Auditors Remuneration Fee,
(ii) Business Promotion Expenses ,
(iii) Capital Increase Expenses ,
(iv) Claim & Deductions ,
(v) Commission & Brokerage,
(vi) Conveyance Expenses ,
(vii) Demand, Late Fees & Penalties ,
(viii) Discount Allowed,
(ix) Donation ,
(x) Expected Credit Loss ,
(xi) Festival Celebration Expenses ,
(xii) Fixed Assets Written Off ,
(xiii) Legal & Professional Fees ,
(xiv) Office Expenses ,
(xv) Printing & Stationery ,
(xvi) Rates, Taxes, Duties etc ,
(xvii) Rent ,
(xviii) Sundry Balances w/off ,
(xix) Telephone & Internet Expenses ,
(xx) Travelling Expenses ,
(xxi) Interest on Late Deposit TDS/TCS/PT,
(xxii) Provision for CSR Expenses ,
(xxiii) Provision for Interest on Delayed Payment to MSME ,
(xxiv) Provision for Warranty Expenses ,
(xxv) Miscellaneous Expenses.
Tax expense
Our tax expense comprises of income tax including prior period tax and deferred tax
| For Period Ended 31st March 2026 | For Year Ended 31st March 2025 | For Year Ended 31st March 2024 | ||||
| Particulars | in Lakhs | % of Total Income | in Lakhs | % of Total Income | in Lakhs | % of Total Income |
| Income | ||||||
| Revenue from Operations | 50,357.32 | 99.61% | 35,075.82 | 99.48% | 20,957.53 | 99.17% |
| Net Revenue from operations | 50,357.32 | 99.61% | 35,075.82 | 99.48% | 20,957.53 | 99.17% |
| Other Income | 199.57 | 0.39% | 184.52 | 0.52% | 175.92 | 0.83% |
| Total Income (I+II) | 50,556.89 | 100.00% | 35,260.34 | 100.00% | 21,133.44 | 100.00% |
| Expenses: | ||||||
| Procurement of Goods and Services for EPC Contracts | 37,945.59 | 75.06% | 27,420.10 | 77.76% | 13,994.28 | 66.22% |
| Purchase of Stock in Trade | 1,447.00 | 2.86% | 1,058.90 | 3.00% | 2,025.31 | 9.58% |
| Changes in Inventories of Work in Progress and Finished Goods | 476.54 | 0.94% | -443.54 | -1.26% | 159.23 | 0.75% |
| Employee Benefit Expenses | 1,376.52 | 2.72% | 1,224.47 | 3.47% | 1,478.92 | 7.00% |
| Finance Cost | 1,689.86 | 3.34% | 817.96 | 2.32% | 602.93 | 2.85% |
| Depreciation Expense | 63.59 | 0.13% | 58.07 | 0.16% | 66.5 | 0.31% |
| Other Expenses | 2,024.25 | 4.00% | 1,422.41 | 4.03% | 923.32 | 4.37% |
| Total Expenses (IV) | 45,023.35 | 89.05% | 31,558.37 | 89.50% | 19,250.49 | 91.09% |
| Profit before Exceptional Items & Tax (III-IV) | 5,533.54 | 10.95% | 3,701.97 | 10.50% | 1,882.95 | 8.91% |
| Exceptional Items | 0.00% | |||||
| Profit/(Loss) Before Tax (V-VI) | 5,533.54 | 10.95% | 3,701.97 | 10.50% | 1,882.95 | 8.91% |
| Tax Expense: | ||||||
| Income Tax including Prior period Tax | 1,399.88 | 2.77% | 965.4 | 2.74% | 483.14 | 2.29% |
| Deferred Tax | -9.15 | -0.02% | -7.98 | -0.02% | 1.6 | 0.01% |
| Total Tax Expenses (VIII) | 1,390.73 | 2.75% | 957.41 | 2.72% | 484.74 | 2.29% |
| Profit for the year (VII-VIII) | 4,142.80 | 8.19% | 2,744.55 | 7.78% | 1,398.21 | 6.62% |
| Other Comprehensive Income | ||||||
| Items that will not be reclassified to profit or loss | ||||||
| - Remeasurement Gains/(Losses) on Defined Benefit Plans | -1.23 | 0.00% | 0.31 | 0.00% | -0.36 | 0.00% |
| - Income tax on above | 0.31 | 0.00% | -0.08 | 0.00% | 0.09 | 0.00% |
| Items that will be reclassified to profit or loss | ||||||
| Total Other Comprehensive Income for the year (X) | -0.92 | 0.00% | 0.24 | 0.00% | -0.27 | 0.00% |
| Total Comprehensive Income for the year (IX+X) | 4141.89 | 8.19% | 2,744.79 | 7.78% | 1,397.93 | 6.61% |
RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2026 COMPARED WITH FISCAL 2025.
( in Lakhs)
| Particulars | Fiscal 2026 | Fiscal 2025 | Change in Lakhs | Change in % |
| Revenue from operations (A) | 50,357.32 | 35,075.82 | 15,281.50 | 43.57% |
| Cost of Materials Consumed (B) | 39,869.13 | 28,035.46 | 11,833.67 | 42.21% |
| Employee benefits expenses (C) | 1,376.52 | 1,224.47 | 152.05 | 12.42% |
| Other Expenses (D) | 2,024.25 | 1,422.41 | 601.84 | 42.31% |
| Operating Profit (E = A-B-C-D) | 7,087.42 | 4,393.48 | 2,693.94 | 61.32% |
| Depreciation and amortisation (F) | 63.59 | 58.07 | 5.52 | 9.51% |
| Finance Costs (G) | 1,689.86 | 817.96 | 871.90 | 106.59% |
| Other Income (H) | 199.57 | 184.52 | 15.05 | 8.16% |
| Profit / (Loss) before tax (I = E-F-G+H) | 5,533.53 | 3,701.97 | 1,831.56 | 49.48% |
| Net Tax expense (J) | 1,390.73 | 957.41 | 433.32 | 45.26% |
| Profit / (Loss) for the year (K= I-J) | 4,142.80 | 2,744.56 | 1,398.24 | 50.95% |
Revenue from Operations
Our revenue from operations increased by 43.57% to 50,357.32 for Fiscal ended 2026 from 35,075.82 Lakhs for Fiscal ended 2025. This increase was primarily due to an increase in revenue from Sale of Services. Details of which is as follow:
Revenue from operations comprises of
Major chunk of revenue generated through sale of services which includes Sales - EPC contracts (Including unbilled revenue) increased by 44% from 33,904.31 Lakhs in Fiscal 2025 to 48,782.30 lakhs in Fiscal 2026. This was primarily attributable to an increase in income from engineering, procurement and construction (EPC), primarily on account of increase in amount of works executed by the company under the contracts awarded to us; Sales of services contributed ~ 97% of our revenue from operations.
Sale of trading goods revenue increased by 34% from 1,171.50 Lakhs in Fiscal 2025 to 1,575.02 Lakhs in Fiscal 2026.
Cost of Material Consumed
Cost of Material consumed represents sum of procurement of goods and services for EPC contracts, purchases of stock in trade, changes in inventories of work in progress and finished goods. Cost of material consumed has increased by 42.21% from 28,035.46 Lakhs in Fiscal 2025 to 39,869.13 Lakhs in Fiscal 2026. This increase was in line with the increase in revenue from operations for the company. Cost of material consumed has increased compared to last year on percentage basis.
Employee Benefits Expenses
Employee Benefits Expenses increased by 12.42% from 1,224.47 Lakhs in Fiscal 2025 to 1,376.52 lakhs in Fiscal 2026. This increase was primarily attributable to increase in salaries and allowances, bonuses and increase in the number of employees employed by us.
Other Expenses
Other expenses increased by 42.31% to 2,024.25 Lakhs in Fiscal 2026 from 1,422.41 Lakhs in Fiscal 2025.This change was primarily due to:
- Increase in legal and professional fees from 384.10 Lakhs in Fiscal 2025 to 521.97 Lakhs in Fiscal 2026.
- Increase in travelling expenses from 57.98 Lakhs in Fiscal 2025 to 109.20 Lakhs in Fiscal 2026
- Increase in site expenses from 491.79 Lakhs in Fiscal 2025 to 920.87 Lakhs in Fiscal 2026
- Increase in Rent from 132.13 Lakhs in Fiscal 2025 to 167.92 Lakhs in Fiscal 2026
- Increase in expected credit loss from (6.01) Lakhs in Fiscal 2025 to 31.75 lakhs in Fiscal 2026
Operating Profit
Operating Profit has shown a positive improvement by 61.32% from 4,393.48 Lakhs in Fiscal 2025 to 7,087.42 lakhs in Fiscal 2026. The Margins expanded by 155 basis points from 12.53% in Fiscal 2025 to 14.07% in Fiscal 2026.
Finance Cost
Finance cost has increased by 106.59% to 1,689.86 lakhs in Fiscal 2026 from 817.96 Lakhs in Fiscal 2025. This increase was due to increase in long-term borrowings, working capital loan and non-fund-based bank facilities such as letter of credit and bank guarantee availed by the company resulting in higher interest cost, bank charges and commission.
Depreciation and Amortization Expenses
Depreciation and amortisation expense increased by 9.51%, to 63.59 Lakhs in Fiscal 2026 from 58.07 Lakhs in Fiscal 2025. This increase was primarily due to the additions in the Plant, Property and Equipment.
Other Income
Other Income increased by 8.16% from 184.52 Lakhs in Fiscal 2025 to 199.57 lakhs in Fiscal 2026. This increase was mainly on account of increase in interest income from FDRs & others.
Profit/(Loss) before Tax
As a result of factors outlined above our profit/(loss) before tax increased by 49.48% from 3,701.97 lakhs in Fiscal 2025 to 5,533.54 lakhs in Fiscal 2026.
Net Tax Expenses
Net Tax increased by 45.26% from 957.41 Lakhs in Fiscal 2025 to 1,390.73 lakhs in Fiscal 2026.
Profit/(Loss) after Tax
Profit after tax increased by 50.95% from 2,744.55 Lakhs in Fiscal 2025 to 4,142.80 Lakhs in Fiscal 2026 because of the various reasons mentioned above.
RESULTS OF OPERATIONS INFORMATION FOR THE FISCAL 2025 COMPARED WITH FISCAL 2024.
( in Lakhs)
| Particulars | Fiscal 2025 | Fiscal 2024 | Change in Lakhs | Change in % |
| Revenue from operations (A) | 35,075.82 | 20,957.53 | 14,118.29 | 67.37% |
| Cost of Materials Consumed (B) | 28,035.46 | 16,178.82 | 11,856.62 | 73.28% |
| Employee benefits expenses (C) | 1,224.47 | 1,478.92 | -254.45 | -17.21% |
| Other Expenses (D) | 1,422.41 | 923.32 | 499.09 | 54.05% |
| Operating Profit (E = A-B-C-D) | 4,393.48 | 2,376.45 | 2,017.03 | 84.88% |
| Depreciation and amortisation (F) | 58.07 | 66.5 | -8.43 | -12.68% |
| Finance Costs (G) | 817.96 | 602.93 | 215.03 | 35.66% |
| Other Income (H) | 184.52 | 175.92 | 8.6 | 4.89% |
| Profit / (Loss) before tax (I = E-F-G+H) | 3,701.97 | 1,882.95 | 1,819.02 | 96.60% |
| Net Tax expense (J) | 957.41 | 484.75 | 472.66 | 97.51% |
| Profit / (Loss) for the year (K= I-J) | 2,744.55 | 1,398.21 | 1,346.35 | 96.29% |
Revenue from Operations
Our revenue from operations increased by 67.37% to 35,075.82 Lakhs for Fiscal ended 2025 from 20,957.53 Lakhs for Fiscal ended 2024. This increase was primarily due to an increase in revenue from Sale of Services. Details of which is as follow:
Revenue from operations comprises of
Major chunk of revenue generated through sale of services which includes Sales - EPC contracts
(Including unbilled revenue) increased by 80% from 18,827.89 Lakhs in Fiscal 2024 to 33,904.31 lakhs in Fiscal 2025. This was primarily attributable to an increase in income from engineering, procurement and construction (EPC), primarily on account of increase in amount of works executed by the company under the contracts awarded to us; Sales of services contributed ~ 97% of our revenue from operations.
Sale of trading goods revenue decreased by 45% from 2,129.64 Lakhs in Fiscal 2024 to 1,171.5 Lakhs in Fiscal 2025.
Cost of Material Consumed
Cost of Material consumed represents sum of procurement of goods and services for EPC contracts, purchases of stock in trade, changes in inventories of work in progress and finished goods. Cost of material consumed has increased by 73.28% from 16,178.82 Lakhs in Fiscal 2024 to 28,035.46 Lakhs in Fiscal 2025. This increase was in line with the increase in revenue from operations for the company. Cost of material consumed has increased compared to last year on percentage basis.
Employee Benefits Expenses
Employee Benefits Expenses decreased by 17.21% from 1,478.92 Lakhs in Fiscal 2024 to 1,224.47 lakhs in
Fiscal 2025. This decrease was primarily attributable to decrease in remunerations of the directors and senior personnels.
Other Expenses
Other expenses increased by 54.05% to 1,422.41 Lakhs in Fiscal 2025 from 923.32 Lakhs in Fiscal 2024.This change was primarily due to:
- Increase in commission and brokerage expenses from 7.08 Lakhs in Fiscal 2024 to 65.27 Lakhs in Fiscal 2025.
- Increase in Sundry Balance written off from 10.08 Lakhs in Fiscal 2024 to 35.39 Lakhs in Fiscal 2025
- Increase in site expenses from 388.33 Lakhs in Fiscal 2024 to 491.79 Lakhs in Fiscal 2025.
- Increase in Rent from 75.43 Lakhs in Fiscal 2024 to 132.13 Lakhs in Fiscal 2025
- Decrease in Festival Celebration Expenses from 33.63 Lakhs in Fiscal 2024 to 4.80 Lakhs in Fiscal 2025
- Decrease in expected credit loss from (23.16) Lakhs in Fiscal 2024 to (6.01) lakhs in Fiscal 2025
- Increase in Legal and Professional expenses from 115.23 Lakhs in Fiscal 2024 to 384.10 Lakhs in Fiscal 2025
Operating Profit
Operating Profit has shown a positive improvement by 84.88% from 2,376.45 Lakhs in Fiscal 2024 to 4,393.48 lakhs in Fiscal 2025. The Margins expanded by 119 basis points from 11.34% in Fiscal 2024 to 12.53% in Fiscal 2025.
Finance Cost
Finance cost has increased by 35.66% to 817.96 lakhs in Fiscal 2025 from 602.93 Lakhs in Fiscal 2024. This increase was due to increase in working capital loan and non-fund-based bank facilities such as letter of credit and bank guarantee availed by the company resulting in higher interest cost, bank charges and commission.
Depreciation and Amortization Expenses
Depreciation and amortisation expense decreased by 12.68%, falling to 58.07 Lakhs in Fiscal 2025 from 66.50 Lakhs in Fiscal 2024. This increase was primarily due to the reduction in the Plant, Property and Equipment.
Other Income
Other Income increased by 4.89% from 175.92 Lakhs in Fiscal 2024 to 184.52 lakhs in Fiscal 2025. This increase was mainly on account of increase in interest income from FDRs & others.
Profit/(Loss) before Tax
As a result of factors outlined above our profit/(loss) before tax increased by 96.6% from 1,882.95 lakhs in Fiscal 2024 to 3,701.97 lakhs in Fiscal 2025.
Net Tax Expenses
Net Tax increased by 97.51% from 484.75 Lakhs in Fiscal 2024 to 957.41 lakhs in Fiscal 2025.
Profit/(Loss) after Tax
Profit after tax increased by 96.29% from 1,398.21 Lakhs in Fiscal 2024 to 2,744.55 Lakhs in Fiscal 2025 because of the various reasons mentioned above.
Cash Flow
The table below summaries our cash flows from our Restated Financial Information for the period ended Fiscal 2026, Fiscal 2025 and Fiscal 2024:
( In Lakhs)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Net cash flow generated from/ (utilized in) operating activities (A) | (965.21) | (7,653.52) | (334.25) |
| Net cash flow generated from /(utilized in) investing activities (B) | (1,632.62) | 1,415.35 | (2,274.14) |
| Net cash flow generated from/ (utilized in) financing activities (C) | 2,713.91 | 6,069.99 | 1,650.16 |
| Net (decrease)/ increase in cash & cash equivalents (A+B+C) | 116.07 | (168.20) | (958.23) |
| Cash and cash equivalents at the beginning of the period/ year | 50.70 | 218.9 | 1,177.13 |
| Cash and cash equivalents at the close of the year | 166.77 | 50.70 | 218.90 |
Cash flow from Operating Activities
For the Fiscal 2026
Net cash flow utilized in our operating activities was (965.21) Lakhs for the Fiscal 2026. Our operating profit before working capital changes was 6,670.18 Lakhs in the Fiscal 2026, which was the result of the profit before tax for the period/year of 5,533.54 Lakhs adjusted primarily for depreciation and amortization of 63.59 Lakhs, expected credit loss of 31.75 Lakhs, provision for bonus of 36.34 Lakhs, finance costs of 1,457.33 Lakhs, interest income of (182.87) Lakhs, fair value gain on investments of (0.28) Lakhs, Profit on sale of fixed assets of (1.70) Lakhs, Current tax liability of (281.64) Lakhs, provision for warranties of 14.12 Lakhs. Our movements in working capital primarily consisted of an increase in trade receivables of (4,398.81) Lakhs, a decrease in inventories of 476.54 Lakhs, an increase in other financial assets of (7,809.06) Lakhs, increase in other current assets of (1,577.90) Lakhs, increase in trade payables of 4,557.86 Lakhs and an increase in other current liabilities of 2,514.13 Lakhs and an increase in provision of 1.74 Lakhs.
For the Fiscal 2025
Net cash flow utilized in our operating activities was (7,653.52) Lakhs for the Fiscal 2025. Our operating profit before working capital changes was 4,368.92 Lakhs in the Fiscal 2025, which was the result of the profit before tax for the period/year of 3,701.97 Lakhs adjusted primarily for depreciation and amortization of 58.07 Lakhs, expected credit loss of (6.01) Lakhs, provision for bonus of 22.11 Lakhs, finance costs of 650.07 Lakhs, interest income of (176.99) Lakhs, fair value gain on investments of (1.29) Lakhs, Fixed assets Written off for 21.65 Lakhs, Current tax liability of 93.72 Lakhs, provision for warranties of 5.62 Lakhs. Our movements in working capital primarily consisted of an increase in trade receivables of (3,981.92) Lakhs, an increase in inventories of (443.54) Lakhs, an increase in other financial assets of (7,921.81) Lakhs, increase in other current assets of (682.95) Lakhs, increase in trade payables of 2,694.47 Lakhs and a decrease in other current liabilities of (717.57) Lakhs and a decrease in provision of (3.73) Lakhs.
For the Fiscal 2024
Net cash flow utilized in our operating activities was (334.25) Lakhs for the Fiscal 2024. Our operating profit before working capital changes was 2,268.18 Lakhs in the Fiscal 2024, which was the result of the profit before tax for the period/year of 1,882.95 Lakhs adjusted primarily for depreciation and amortization of 66.50 Lakhs, expected credit loss of (23.16) Lakhs, provision for bonus of 11.13 Lakhs, finance costs of 465.48 Lakhs, interest income of (148.28) Lakhs, fair value gain on investments of (4.69) Lakhs, Profit for sale of fixed asset of (2.19), Provision for CSR expenses of 11.00 Lakhs, and provision for warranties of 9.43 Lakhs. Our movements in working capital primarily consisted of an increase in trade receivables of (696.17) Lakhs, decrease in inventories of 159.23 Lakhs, an increase in other financial assets of (2,286.99) Lakhs, increase in other current assets of (266.60) Lakhs, increase in trade payables of 146.83 Lakhs and an increase in other current liabilities of 810.03 Lakhs, increase in provision of 14.37 Lakhs.
Cash flow from Investing Activities
For the Fiscal 2026
Net cash utilized in investing activities was (1,632.62) Lakhs for the Fiscal 2026. This reflected the capital expenditure made towards Property, Plant and Equipment for (556.71) Lakhs, offset by Sale/Donation of Property, Plant and Equipment of 9.81 Lakhs, receipt of interest income of 182.87 Lakhs, Profit on sale of fixed assets of 1.70 Lakhs, Changes in Non-Current Financial Assets of (1,270.29) Lakhs.
For the Fiscal 2025
Net cash generated from investing activities was 1,415.35 Lakhs for the Fiscal 2025. This reflected the capital expenditure made towards Property, Plant and Equipment for (59.53) Lakhs, offset by Sale/Donation of Property, Plant and Equipment of 2.23 Lakhs, receipt of interest income of 176.99 Lakhs, Changes in Non-Current Financial Assets of 1,310.38 Lakhs, change in ROU Asset of 16.33 Lakhs, and Change in Lease Liability of (31.04) Lakhs.
For the Fiscal 2024
Net cash utilized in investing activities was (2,274.14) Lakhs for the Fiscal 2024. This reflected the capital expenditure made towards Property, Plant and Equipment for (98.85) Lakhs, offset by Sale/Donation of Property, Plant and Equipment of 12.81 Lakhs, Profit on sale of fixed assets/written off of 2.19 Lakhs, receipt of interest income of 148.28 Lakhs, Changes in Non-Current Financial Assets of (2,319.25) Lakhs, Increase in ROU Asset of (32.10) Lakhs, and Change In Lease Liability of 12.84 Lakhs.
Cash flow from Financing Activities
For the Fiscal 2026
Net cash generated in financing activities was 2,713.91 Lakhs for the Fiscal 2026 consisting of share issue proceeds including securities premium of 3,809.08, proceeds from current borrowing of 129.86 Lakhs, net proceeds of non-current borrowings of 232.30 Lakhs and finance cost of (1,457.33) Lakhs.
For the Fiscal 2025
Net cash generated in financing activities was 6,069.99 Lakhs for the Fiscal 2025 consisting of proceeds from current borrowing of 6,734.37 Lakhs, net repayment of non-current borrowings of (14.31) Lakhs and finance cost of (650.07) Lakhs.
For the Fiscal 2024
Net cash generated in financing activities was 1,650.16 Lakhs for the Fiscal 2024 consisting of proceeds from current borrowing of 2,258.74 Lakhs, net repayment of non-current borrowings of (143.10) Lakhs and finance cost of (465.48) Lakhs.
Financial Indebtedness
As on July 31, 2026 the total outstanding borrowings of our Company was 12,833.52 Lakhs. The following table sets out the details of the total borrowings outstanding as on July 31, 2026.
( in Lakhs)
| Particulars | As at July 31, 2026 |
| Secured Loans | |
| a) Term Loans (ECLGS) | 800.94 |
| b) Vehicle Loans | 320.89 |
| c) Working Capital Facilities Cash Credit/Overdraft | 3,863.07 |
| Unsecured Loans | |
| a) Loans from Related Parties | 122.74 |
| b) Loans from Others | 400.00 |
| c) Loans from Channel finance and TREDS | 7,325.88 |
| Total Borrowings | 12,833.52 |
In the event, any of our lenders declare an event of default, such current and any future defaults could lead to acceleration of our repayment obligations, termination of one or more of our financing agreements or force us to sell our assets, any of which could adversely affect our business, results of operations and financial condition.
Contingent Liabilities and Pending Litigations
Contingent Liabilities not provided for is as below:
| PARTICULARS | As at 31.03.2026 | As at 31.03.2025 | As at 31.03.2024 |
| Amount | Amount | Amount | |
| *GST Penalty | - | - | 1,062.42 |
| Bank Guarantees (BG) | 27,267.93 | 12,275.75 | 9,942.36 |
* Penalty of Rs. 1062.42 Lacs under GST Act, Against which the company had filed appeal, during the Fiscal 2024 the penalty has been set aside by GST appeal, GST department by issuing order dated 31st May 2024.
Pending Litigations are as follows:
| Statute | F.Y. to which the matter pertains | Forum where dispute is pending | Date of Demand | Date of Acceptance of Appeal | Amount ( in lakhs) |
| GST West Bengal^ | 2023-24 | Joint Commissioner (GST Appeals) | September 23, 2024 | February 27, 2025 | 31.84 |
| GST West Bengal^ | 2022-23 | Senior Joint Commissioner (GST Appeals) | September 23, 2024 | January 2, 2025 | 15.87 |
| TDS* | 2007-08 & 2008-09 | - | - | 0.59 |
*TDS demand was standing in erstwhile partnership firm Swastika Electrical and Fertilizers which was converted into Swastika Infra Private Limited on 06th August 2019. ^ Future Cash outflows in respect of above matters are determinable only on receipt of judgements/decisions pending at various forums/ authorities. The management, based on their assessment, does not except these claims to succeed and accordingly, no provision has been recognized in the financial statements. These amount represents gross demand raised by the authorities and the amount paid under protest is not charged to the restated statement of profit and loss by the company.
b) Ajmer Vidyut Vitran Nigam Limited (AVVNL) has issued Show Cause Notice against the Company. Company has filed Civil writ Petition before the Honble High Court of Rajasthan, Jaipur Bench. Company was regularly paid for price variation of copper transformers against invoices raised. however, due to an audit objection raised by the CAG Audit, observing that the price variation for copper transformers was not payable in the scheme. Thereafter, the Company received a letter dated July 7,2021 wherein it was stated that the CAG Audit had raised objection with regard to price variation on copper wound transfer and directed AVVNL to recover the sanctioned price variations amounts from the respective firms which included the company, the company has contingent liability estimated approximately around Rs. 188.15 lacs. This case is presently pending and next hearing date yet to be notified. c) Claim of 360.46 Lakhs by JVVNL against which the Company has filed a writ petition before the Honble Rajasthan High Court. The claim is disputed and not acknowledged as debt by the Company. d) As at the reporting date, the Company has no capital commitments outstanding towards acquisition of property, plant and equipment or other capital expenditure.
Off-Balance Sheet Items
We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entity that have been established for the purposes of facilitating off-balance sheet arrangements.
Quantitative and Qualitative Analysis of Market Risks
We are exposed to various types of market risks during the normal course of business. For further details, see
" Risk Factors" beginning on page 27:
(i) 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 price risk. Financial instruments affected by market risk include investments in equity shares, security deposits, trade and other receivables, deposits with banks and financial liabilities.
The sensitivity analysis in the following sections relate to the position as at 31 March 2026, 31 March 2025 and 31 March 2024. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks.
(a) Interest rate risk
Interest rate risk is the risk that changes in market interest rates will lead to change in interest income and expense for the Company. In order to optimize the Companys position with regards to interest income & expense and to manage the interest risk, the Company performs comprehensive interest risk management by balancing the proportion of fix & variable rate financial instruments.
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
| Fixed Rate Instruments | |||
| Fixed Deposits with Banks | 3,554.77 | 2,294.93 | 3,612.06 |
| Vehicle Loans | 254.76 | 22.46 | 36.77 |
| Secured Loans under ECLGS | - | - | - |
| Variable Rate instruments | |||
| Cash Credit |
(b) Sensitivity analysis:
A change in 50 basis point in interest rate at the reporting date would have increase/(decrease) Profit or Loss by the amount shown below.
This analysis assumes that all other variables, remain constant
| 31.03.2026 | 31.03.2025 | 31.03.2024 | ||||
| Particulars | Increase | Decrease | Increase | Decrease | Increase | Decrease |
| Interest Rate-increase/decrease by 50 basis points | -16.5 | 16.5 | -11.36 | 11.36 | -17.88 | 17.88 |
(c) Commodity Risk
Commodity risk is defined as the possibility of financial loss as a result of fluctuation in price of Supply Goods and change in demand of the product and market in which the company operates. The Company is exposed to the movement in price of key Supply goods in domestic markets. The Company has in place policies to manage exposure to fluctuations in the prices of the key raw materials used in operations. The company forecast annual business plan and execute on monthly business plan. Goods procurement is aligned to its monthly/annual business plan and inventory position is monitored in accordance with future price trend.
(i) Credit risk
Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk mainly from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks.
Credit risk on trade receivables is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company has no concentration of risk as customer base in widely distributed both economically and geographically.
An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The calculation is based on exchange losses historical data. 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 Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors such as financial condition, ageing of outstanding and the Companys historical experience for customers.
Following are the ageing related to above mentioned trade receivables:
| Particulars | 31.03.2026 | 31.03.2025 | 31.03.2024 | |||
| <6 months | >6 months | <6 months | >6 months | <6 months | >6 months | |
| Trade Receivables | 11,235.95 | 296.63 | 7,116.84 | 16.92 | 3,113.72 | 38.13 |
(a) Financial instruments and cash deposits
Credit risk from balances with banks and financial institutions is managed by the Companys treasury department in accordance with Companys policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Company monitors rating, credit spreads and financial strength of its counter parties. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment Company adjust its exposure to various counterparties.
Credit risk exposure
The following table shows the maximum exposure to the credit risk at the reporting date
| 31.03.2026 | 31.03.2025 | 31.03.2024 | ||||
| Particulars | Non-Current | Current | Non-Current | Current | Non-Current | Current |
| Loans | 254.76 | 11,209.25 | 22.46 | 11,079.39 | 36.77 | 4,345.02 |
| Trade Receivables | - | 11,497.62 | - | 7,130.56 | - | 3,142.64 |
| Cash and Cash Equivalents | - | 47.29 | - | 23.98 | - | 53.6 |
| Bank Balances | - | 119.48 | - | 26.73 | - | 165.29 |
| Other Financial Assets | 1282.28 | 20,192.67 | 435.83 | 13,045.70 | 336.33 | 5,093.44 |
(ii) Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow obligations without incurring unacceptable losses. Companys objective is to, at all time maintain optimum levels of liquidity to meet its cash requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from banks at optimised cost and cash flow from operations.
The table summaries the maturity profile of Companys financial liabilities based on contractual undiscounted payments.
| 31.03.2026 | 31.03.2025 | 31.03.2024 | ||||
| Particulars | Within 1 year | >1 years | Within 1 year | >1 years | Within 1 year | >1 years |
| Borrowings | 11209.25 | 254.76 | 11079.39 | 22.46 | 4345.02 | 36.77 |
| Trade and Other Payables | 9897.49 | 2.84 | 5342.47 | - | 2647.99 | 0 |
| Other Liabilities | - | - | - | - | 17.25 | 13.80 |
Effect of Inflation
We are affected by inflation as it has an impact on the material cost, wages, etc. in line with changing inflation rates; we rework our margins so as to absorb the inflationary impact.
Reservations, Qualifications and Adverse Remarks
Except as disclosed in chapter titled "Restated Financial Information" on page 263, there have been no reservations, qualifications and adverse remarks.
Statement of Material Development
Details of any material development taken place during the period April 01, 202 up to the date of this Red Herring Prospectus.
The following positive material development has occurred during the reporting period:
The Company has bagged following orders during the said period :-
1. Supply and Erection of 132 kV GSS, Badliyas (District Bhilwara), along with associated lines.
2. Construction of 132 kV S/C Jobner Bagru Rwan and 132 kV GSS, Jakhal (District Jhunjhunu)
3. An additional order of Design & Engineering, Manufacture/Procurement, Supply, Installation, Testing and Commissioning, including warranty obligations and 5 years comprehensive Operation &
Maintenance, of 15 MW AC / 18 MWp DC capacity ground-mounted Solar PV Plants at Mejia under Mejia Block, Bankura District, West Bengal.
4. Turnkey conversion of existing 11 kV HT Line and LT Line Network, including Consumer Service Lines, into an Underground Cable Network with Ring Main System at Bhachau Subdivision of Anjar Circle under PGVCL.
5. Design, Manufacture, Supply, Transportation, Installation, Testing and Commissioning of Off-Grid DC Solar Photovoltaic Water Pumping Systems of 3 HP, 5 HP and 7.5 HP capacities at identified farmer sites in Maharashtra, including complete system warranty and repair & maintenance for 5 years, under
"Magel Tyala Saur Krushi Pump / PM KUSUM-B" Scheme.
Material Frauds
There are no material frauds, as reported by our statutory auditor, committed against our Company, in the last three Financial Years.
Unusual or Infrequent Events or Transactions
As on date, there have been no unusual or infrequent events or transactions including unusual trends on account of business activity, unusual items of income, change of accounting policies and discretionary reduction of expenses.
Significant Economic Changes that Materially Affected or are Likely to Affect Income from Continuing Operations
Our business has been subject, and we expect it to continue to be subject to significant economic changes arising from the trends identified above in ‘Factors Affecting our Results of Operations and the uncertainties described in the section entitled "Risk Factors" beginning on page 27 of the Red Herring Prospectus. To our knowledge, except as we have described in the Red Herring Prospectus, there are no known factors which we expect to bring about significant economic changes.
Known Trends or Uncertainties that have had or are expected to have a Material Adverse Impact on Sales, Revenue or Income from Continuing Operation
Other than as described in the section titled "Risk Factors" on page 27 and in this chapter, to our knowledge there are no known trends or uncertainties that are expected to have a material adverse impact on revenues or income of our Company from continuing operations.
Future Changes in Relationship between Costs and Revenues, in Case of Events Such as Future Increase in Labour or Material Costs or Prices that will Cause a Material Change are known
Other than as described in chapter titled "Risk Factors" on page 27 and in this section, to our knowledge there are no known factors that might affect the future relationship between cost and revenue.
Extent to which Material Increases in Net Sales or Revenue are due to Increased Sales Volume, Introduction of New Products or Services or Increased Sales Prices
Our business has been affected and we expect that it will continue to be affected by the trends identified above and the uncertainties described in the section "Risk Factors” on page 27. Changes in revenue in the last three Fiscal are as described in -Results of Operations Information for the Fiscal 2026 compared with Fiscal 2025 and -Results of Operations Information for the Fiscal 2025 compared with Fiscal 2024 mentioned above.
Total Turnover of Each Major Industry Segment in Which the Issuer Operates
We are an EPC company serving primarily to Discoms in power T&D segment. Relevant Industry data, as available, has been included in the chapter titled "Industry Overview" beginning on page 72 of this Red Herring Prospectus.
Status of any Publicly Announced New Products/Services or Business Segments
As on the date of the Red Herring Prospectus, there are no new products or services or business segments that have or are expected to have a material impact on our business prospects, results of operations or financial condition.
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