(s) Provisions, contingent liabilities and contingent
assets
Provisions are recognised only when:
(i) the Company has a present obligation (legal or
constructive) as a result of a past event; and
(ii) it is probable that an outflow of resources embodying
economic benefits will be required to settle the
obligation; and
(iii) a reliable estimate can be made of the amount of the
obligation.
Provision is measured using the cash flows estimated
to settle the present obligation and when the effect of
time value of money is material, the carrying amount of
the provision is the present value of those cash flows.
Reimbursement expected in respect of expenditure
required to settle a provision is recognised only when it is
virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
(i) a present obligation arising from past events, when
it is not probable that an outflow of resources will be
required to settle the obligation; and
(ii) a present obligation arising from past events, when
no reliable estimate is possible. Contingent assets
are disclosed where an inflow of economic benefits
is probable. Provisions, contingent liabilities and
contingent assets are reviewed at each Balance Sheet
date. Where the unavoidable costs of meeting the
obligations under the contract exceed the economic
benefits expected to be received under such
contract, the present obligation under the contract is
recognised and measured as a provision.
(t) Commitments
Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:
(i) estimated amount of contracts remaining to be
executed on capital account and not provided for;
(ii) uncalled liability on shares and other investments
partly paid;
(iii) funding related commitment to subsidiary, associate
and joint venture companies; and
(iv) other non-cancellable commitments, if any, to the
extent they are considered material and relevant in
the opinion of management.
Other commitments related to sales/procurements made
in the normal course of business are not disclosed to avoid
excessive details.
(u) Discontinued operations and non-current assets
held for sale
Discontinued operation is a component of the Company
that has been disposed of or classified as held for sale and
represents a major line of business.
Non-current assets and disposal groups are classified as
held for sale if their carrying amount is intended to be
recovered principally through a sale (rather than through
continuing use) when the asset (or disposal group) is
available for immediate sale in its present condition subject
only to terms that are usual and customary for sale of such
asset (or disposal group) and the sale is highly probable
and is expected to qualify for recognition as a completed
sale within one year from the date of classification.
Non-current assets and disposal groups classified as held
for sale are measured at lower of their carrying amount
and fair value less costs to sell.
(v) Statement of Cash Flows
Statement of Cash Flows is prepared segregating the cash
flows into operating, investing and financing activities.
Cash flow from operating activities is reported using
indirect method, adjusting the profit before tax excluding
exceptional items for the effects of:
(i) changes during the period in inventories and
operating receivables and payables;
(ii) non-cash items such as depreciation, provisions,
unrealised foreign currency gains and losses; and
(iii) all other items for which the cash effects are investing
or financing cash flows.
Cash and cash equivalents (including bank balances)
shown in the Statement of Cash Flows exclude items
which are not available for general use as at the date of
Balance Sheet.
(w) Key sources of estimation
The preparation of Standalone Financial Statements in
conformity with Ind AS requires that the management
of the Company makes estimates and assumptions that
affect the reported amounts of income and expenses of
the period, the reported balances of assets and liabilities
and the disclosures relating to contingent liabilities as
of the date of the Standalone Financial Statements.
The estimates and underlying assumptions made by
management are explained under respective policies.
Revisions to accounting estimates include useful lives
of property, plant and equipment & intangible assets,
allowance for expected credit loss, future obligations
in respect of retirement benefit plans, expected cost
of completion of contracts, provision for rectification
costs, fair value/recoverable amount measurement, etc.
Difference, if any, between the actual results and estimates
is recognised in the period in which the results are known.
3 Recent pronouncements:
On March 31, 2023, Ministry of Corporate Affairs amended
the Companies (Indian Accounting Standards) Rules, 2015
by issuing the Companies (Indian Accounting Standards)
Amendment Rules, 2023, which becomes effective from
April 1, 2023. The gist of the amendments is as follows:
• Ind AS 1, Presentation of Standalone Financial
Statements - It is specified when the accounting
policy information is material, and the requirement to
disclose significant accounting policies is substituted
with the disclosure of material accounting policy
information.
• Ind AS 8, Accounting Policies, Changes in Accounting
Estimates and Errors - The definition of "change
in accounting estimate" is substituted with the
definition of "accounting estimates". Accounting
estimates are monetary amounts in Standalone
Financial Statements that are subject to measurement
uncertainty.
• Ind AS 12, Income Taxes - it is required to recognise
deferred tax liability or asset for all temporary
differences arising from initial recognition of an asset
or liability in a transaction that gives rise to equal
taxable and deductible temporary differences.
The above amendments will not have material impact on
Company's Standalone Financial Statements.
*The Board of Directors of the Company, at its meeting held on January 28, 2025, considered and approved the allotment
of 7.50 millions equity shares of face value of ^10 each, fully paid up, to the successful applicants pursuant to the Initial
Public Offering (IPO) of the Company, in accordance with the applicable provisions of the Companies Act, 2013 and the
rules made thereunder
**The Board of Directors of the Company , at its meeting held on August 02, 2023, proposed/recommended to the
members of the Company, an increase in the authorised share capital from '48.5 million to '300 million in terms of
Section 61 and other applicable provisions of the Companies Act, 2013, which was further approved by the members in
the general meeting held on August 14, 2023.
b) Terms/ Rights attached to Equity Shares
The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share. The
dividend proposed, if any by the Board of Directors is subject to approval of the shareholders in ensuing Annual General
Meeting.
In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
ii. Defined Benefit Plan:
The Company has a unfunded defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity
Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level
of benefits provided depends on the member's length of service and salary at retirement age. Every employee who
has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each
completed year of service as per the provision of the Payment of Gratuity Act, 1972 with total ceiling on gratuity of R
20,00,000.
The following tables summaries the components of net benefit expense recognised in the Statement of profit and loss
and the funded status and amounts recognised in the balance sheet for the gratuity plan:
34 Segmental Information
In accordance with Ind-AS 108, 'Operating Segments', the Company does not have a business segment. Further, the Company
operates in India and accordingly no disclosures are required under secondary segment reporting.
35 Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR
activities are eradicating hunger, poverty and malnutrition, promoting preventive health care including preventive health care,
ensuring environmental sustainability education, promoting gender equality and empowering women and other activities.
The amount has to be expended on the activities which are specified in Schedule VII of the Companies Act, 2013.
There have been no transfers among Level 1, Level 2 and Level 3 during the year.
The management assessed that cash and cash equivalents, Trade receivable and other financial asset, trade payables and
other financial liabilities approximate their carrying amount largely due to short term maturity of these instruments.
Financial Risk Management Objectives and Policies
The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities.
The Management has overall responsibility for the establishment and oversight of the Company's risk management framework.
In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and
Market risk.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and
derivative financial instruments.
Credit Risk on Financial Assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their
obligations in full or in a timely manner consist principally of cash balances with banks, cash equivalents and receivables,
and other financial assets. The maximum exposure to credit risk is: the total of the fair value of the financial instruments and
the full amount of any loan payable commitment at the end of the reporting year. Credit risk on cash balances with banks is
limited because the counterparties are entities with acceptable credit ratings. Credit risk on other financial assets is limited
because the other parties are entities with acceptable credit ratings.
As disclosed in Note 10, cash and cash equivalents balances generally represent short term deposits with a less than 90-day
maturity.
As part of the process of setting customer credit limits, different credit terms are used. The average credit period generally
granted to trade receivable customers is about 90-360 days. But some customers take a longer period to settle the amounts.
39 Foreign Currency Risk
The functional currency of the Compnay is the R. These Financial Statements are presented in R.
During the reporting period, the company has not engaged in any foreign currency transaction.
The company does not have regular foreign currency transactions, and hence, the foreign currency risk is limited to this
particular event. The loss recognized reflects the difference in exchange rates between the transaction date and the settlement
date.
40 Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates.
Company has interest rate risk exposure mainly from changes in rate of interest on borrowing & on deposit with bank. The
interest rate are disclosed in the respective notes to the financial statements of the Company. The following table analyse the
breakdown of the financial assets and liabilities by type of interest rate:
42 Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise
the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep optimum gearing ratio. The
Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash
equivalents, excluding discontinued operations.
41 Liquidity Risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to
meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash
management system. It maintains adequate sources of financing including debt and overdraft from banks at an optimised
cost.
The Company maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 and March 31,
2024 is the carrying amounts. The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities.
The average credit period taken to settle trade payables is about 90 days. The other payables are with short-term durations.
The carrying amounts are assumed to be a reasonable approximation of fair value. The following table analysis financial
liabilities by remaining contractual maturities:
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025
and March 31, 2024.
44 Estimates
The estimates at March 31, 2025 and March 31, 2024 are consistent with those made for the same dates in accordance with
Ind As (after adjustments to reflect any differences in accounting policies).
45 Balances in the accounts of trade receivables, loans and advances, trade payables and other current liabilities are subject
to confirmation / reconciliation, if any. The management does not expect any material adjustment in respect of the same
effecting the financial statements on such reconciliation / adjustments.
46 There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with
Indian Accounting Standard (Ind AS)-36 'Impairment of Assets.
47 Earnings Per Share
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during
the year and for all the years presented is adjusted for events, that have changed the number of equity shares outstanding,
without a corresponding change in resources.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number
of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into equity shares.
ii. Defined Benefit Plan:
The Company has a unfunded defined benefit gratuity plan. The gratuity plan is governed by the Payment of Gratuity
Act, 1972. Under the Act, employee who has completed five years of service is entitled to specific benefit. The level
of benefits provided depends on the member's length of service and salary at retirement age. Every employee who
has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each
completed year of service as per the provision of the Payment of Gratuity Act, 1972 with total ceiling on gratuity of R
20,00,000.
The following tables summaries the components of net benefit expense recognised in the Statement of profit and loss
and the funded status and amounts recognised in the balance sheet for the gratuity plan:
34 Segmental Information
In accordance with Ind-AS 108, 'Operating Segments', the Company does not have a business segment. Further, the Company
operates in India and accordingly no disclosures are required under secondary segment reporting.
35 Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013, a CSR committee has been formed by the Company. The areas for CSR
activities are eradicating hunger, poverty and malnutrition, promoting preventive health care including preventive health care,
ensuring environmental sustainability education, promoting gender equality and empowering women and other activities.
The amount has to be expended on the activities which are specified in Schedule VII of the Companies Act, 2013.
There have been no transfers among Level 1, Level 2 and Level 3 during the year.
The management assessed that cash and cash equivalents, Trade receivable and other financial asset, trade payables and
other financial liabilities approximate their carrying amount largely due to short term maturity of these instruments.
Financial Risk Management Objectives and Policies
The risk management policies of the Company are established to identify and analyse the risks faced by the Company, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Company's activities.
The Management has overall responsibility for the establishment and oversight of the Company's risk management framework.
In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and
Market risk.
Market Risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity
price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and
derivative financial instruments.
Credit Risk on Financial Assets
Financial assets that are potentially subject to concentrations of credit risk and failures by counterparties to discharge their
obligations in full or in a timely manner consist principally of cash balances with banks, cash equivalents and receivables,
and other financial assets. The maximum exposure to credit risk is: the total of the fair value of the financial instruments and
the full amount of any loan payable commitment at the end of the reporting year. Credit risk on cash balances with banks is
limited because the counterparties are entities with acceptable credit ratings. Credit risk on other financial assets is limited
because the other parties are entities with acceptable credit ratings.
As disclosed in Note 10, cash and cash equivalents balances generally represent short term deposits with a less than 90-day
maturity.
As part of the process of setting customer credit limits, different credit terms are used. The average credit period generally
granted to trade receivable customers is about 90-360 days. But some customers take a longer period to settle the amounts.
39 Foreign Currency Risk
The functional currency of the Compnay is the R. These Financial Statements are presented in R.
During the reporting period, the company has not engaged in any foreign currency transaction.
The company does not have regular foreign currency transactions, and hence, the foreign currency risk is limited to this
particular event. The loss recognized reflects the difference in exchange rates between the transaction date and the settlement
date.
40 Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes
in market interest rates.
Company has interest rate risk exposure mainly from changes in rate of interest on borrowing & on deposit with bank. The
interest rate are disclosed in the respective notes to the financial statements of the Company. The following table analyse the
breakdown of the financial assets and liabilities by type of interest rate:
42 Capital Management
For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to maximise
the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing
ratio, which is net debt divided by total capital plus net debt. The Company's policy is to keep optimum gearing ratio. The
Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash
equivalents, excluding discontinued operations.
41 Liquidity Risk
Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company's objective is to, at all times maintain optimum levels of liquidity to
meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash
management system. It maintains adequate sources of financing including debt and overdraft from banks at an optimised
cost.
The Company maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 and March 31,
2024 is the carrying amounts. The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities.
The average credit period taken to settle trade payables is about 90 days. The other payables are with short-term durations.
The carrying amounts are assumed to be a reasonable approximation of fair value. The following table analysis financial
liabilities by remaining contractual maturities:
In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.
Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have
been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.
No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2025
and March 31, 2024.
44 Estimates
The estimates at March 31, 2025 and March 31, 2024 are consistent with those made for the same dates in accordance with
Ind As (after adjustments to reflect any differences in accounting policies).
45 Balances in the accounts of trade receivables, loans and advances, trade payables and other current liabilities are subject
to confirmation / reconciliation, if any. The management does not expect any material adjustment in respect of the same
effecting the financial statements on such reconciliation / adjustments.
46 There was no impairment loss on the fixed assets on the basis of review carried out by the management in accordance with
Indian Accounting Standard (Ind AS)-36 'Impairment of Assets.
47 Earnings Per Share
Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average
number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during
the year and for all the years presented is adjusted for events, that have changed the number of equity shares outstanding,
without a corresponding change in resources.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number
of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on
conversion of all the dilutive potential equity shares into equity shares.
49 Other Statutory Information
a) The Company has not entered into any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.
b) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with the
Companies (Restriction on number of Layers) Rules, 2017.
c) The Company is not declared willful defaulter by any bank or financial institution or other lenders.
d) The Company has not traded or invested in crypto currency or virtual currency during the financial year.
e) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or
both during the year.
f) No proceedings have been initiated or are pending against the Company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made there under.
g) No loans or advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined
under Companies Act, 2013,) either severally or jointly with any other person.
h) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous
financial year.
i) The title deeds of all the immovable property (other than properties where the Company is the lessee and the lease
agreements are duly executed in favour of the lessee) are held in the name of the company
j) There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period.
50 Company has utilized non fund based Bank Guarantee Facility from the banks amounting to R 499.94/- Million.
51 In the opinion of the Management, current assets, loans, advances and deposits are approximately of the value stated, if
realised in the ordinary course of business and are subject to confirmation.
52 Balances in the accounts of Trade Receivables, Loans and Advances, Trade Payables and Other Current Liabilities are subject
to confirmation / reconciliation, if any. The management does not expect any material adjustment in respect of the same
effecting the financial statements on such reconciliation / adjustments.
The estimates at March 31, 2025 and March 31, 2024 are consistent with those made for the same dates in accordance with
Ind As(after adjustments to reflect any differences in accounting policies).
53 Relationship with Struck off Companies
The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.
54 Events after the End of the Reporting Year
The company has evaluated all events or transactions that occurred between reporting date March 31, 2025, the date the
financial statements were authorized for issue by the Board of Directors.
55 Previous years figure have been regrouped/rearranged wherever necessary, to correspond with the current year classification
/ disclosures.
56 As per the requirements of Rule 3(1) of the Companies (Accounts) Rules 2014, the Company uses only such accounting
software for maintaining its books of account that has a feature of, recording the audit trail of each and every transaction,
creating an edit log of each change made in the books of account along with the date when such changes were made and who
made those changes within such accounting software. This feature of recording audit trail has operated throughout the year
and was not tampered with during the year.
56 The standalone balance sheet, standalone statement of profit and loss, standalone cash flow statement, standalone statement
of changes in equity, standalone statement of significant accounting policies and the other explanatory notes forms an integral
part of the standalone financial statements of the Company.
56 These Standalone Financial Statements were approved by Board in its meeting held on May 28, 2025.
As per our report of even date attached.
For Maheshwari and Co. For and on behalf of Board of Directors of
Chartered Accountants Denta Water and Infra Solutions Limited
FRN: 105834W (Formerly known as Denta Properties and Infrastructure Private Limited)
Pawan Gattani Manish Shetty R. Narendra Babu
(Partner) Managing Director Director
M. No.144734 DIN - 09075221 DIN - 10330389
Sujata Gaonkar Sujith T R
Company Secretary Chief Financial Officer
M. No.: A53988
Place: Mumbai Place: Bengaluru
Date: 28 May, 2025 Date : May 28, 2025
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