| Textual Information(1) |
Notes to the Unaudited Standalone Statements of Financial Results for quarter ended June 30, 2025: 1. Approval and Limited Review of Financial Results The above unaudited financial results were reviewed and recommended by the Audit Committee and approved by the Board of Directors of the Company at its meeting held on 07/11/2025. The Statutory Auditors have conducted the limited review of the unaudited financial results for the quarter ended June 30, 2025, and issued their report dated 07/11/2025. 2. This result has been prepared in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosures Requirement) Regulation, 2015 as available. The material accounting policies applied in preparation of these financial results are consistent with those followed in the annual standalone financial statements for the year ended March 31, 2025. 3. Valecha Engineering Limited (“VEL or the Company”) is engaged in Construction Activity and there are no other reportable segments under Ind AS 108 Operating Segments. 4. Corporate Insolvency Resolution Process of Subsidiary The Hon’ble National Company Law Tribunal (“NCLT”), Mumbai Bench, vide its order dated 9th October 2023, admitted the application for initiation of the Corporate Insolvency Resolution Process (“CIRP”) in respect of Valecha Kachchh Toll Roads Limited (VKTRL), a subsidiary of the Company, under the provisions of the Insolvency and Bankruptcy Code, 2016. Mr. Avil Jerome Menezes was appointed as the Interim Resolution Professional (“IRP”) and was subsequently confirmed as the Resolution Professional (“RP”) by the Committee of Creditors (“CoC”) to perform the functions as stipulated under the Code. The Resolution Plan submitted by the Resolution Applicant has been approved by the CoC with the requisite majority in its meeting held on 28th March 2025 and is currently pending adjudication before the Hon’ble NCLT, Mumbai Bench. Pending the outcome of the CIRP and realisability assessment of the assets of VKTRL, the Company continues to carry its investment of Rs 39.84 crores in VKTRL and loans granted of Rs 76.36 crores at book value, aggregating to Rs. 116.20 crores. As required under Ind AS 109 – Financial Instruments and Ind AS 36 – Impairment of Assets, these balances are ordinarily subject to recoverability assessment and impairment testing. Considering the ongoing CIRP and pending adjudication of the Resolution Plan, no impairment has been recognised at this stage. The impact, if any, will be given effect upon conclusion of the CIRP. 5. Investments and Advances in Subsidiaries The Company continues to carry its investments of Rs. 2.18 Crores in four subsidiary companies, along with loans and advances totalling Rs. 169.02 Crores extended to four subsidiaries and one step-down subsidiary, at their respective book values. These carrying amounts have been retained pending a detailed assessment of the recoverability of the underlying assets of these companies. The particulars of the investments and loans are as follows: Name of Company Relation Investment (Rs. Crores) Loans & Advances (Rs. Crores) Valecha Infrastructure Limited Subsidiary 0.05 140.67 Professional Realtors Private Limited Subsidiary 1.80 0.24 Valecha International FZE Subsidiary 0.31 23.57 Valecha Reality Limited Subsidiary 0.02 0.29 Valecha Badwani Sendhwa Tollways Limited Step-down Subsidiary - 4.25 Total 2.18 169.02 The investments and loans are carried at book value, pending recoverability assessment. In accordance with Ind AS 109 – Financial Instruments, such financial assets are required to be measured at amortized cost or fair value, with recognition of expected credit losses (ECL) where applicable. The Company has carried out a preliminary review and will undertake a detailed assessment, including ECL recognition if necessary. Management believes that the carrying amounts are appropriately stated, and any adjustments required under the applicable Indian Accounting Standards will be made if deemed necessary. 6. Financial Assets – Trade Receivables, Loans, and Advances The Company’s financial assets comprise trade receivables, loans, advances, and other non-current financial assets. These are stated at their respective book values, pending assessment of recoverability and recognition of expected credit losses in accordance with the applicable Indian Accounting Standards (Ind AS). Certain amounts are subject to legal restrictions or ongoing proceedings, as noted below. Appropriate disclosures regarding the nature, timing, and potential uncertainties related to these assets have been made in the financial statements. The extract of relevant details is as under: - Particulars Amount (Rs. Crores) Remarks Trade Receivables 170.26 Carried at book value, pending further assessment of recoverability. Other Non-Current Financial Assets (including retention) 18.06 Stated at book value; expected credit loss and recoverability will be assessed in accordance with Ind AS 109. Amounts with Canara Bank (restricted) 15.41 Held by the Bank and pending adjustment as per NCLAT order dated 12.02.2020 (Company Appeal AT/127/2019). Loans to related parties (excluding subsidiaries, step-down subsidiaries, associates) 6.50 Carried at book value. The Company will assess recoverability and recognize expected credit loss, if any, in accordance with Ind AS 109. Related party disclosures are made as per Ind AS 24. Loans to other parties 5.03 Stated at book value. Recoverability will be assessed and expected credit loss recognized as required under Ind AS 109. Advances to suppliers 19.55 Carried at book value. Classification as current or non-current will be as per the expected settlement period, with recoverability assessment performed. 7. The Company also continues to carry its Other Non-Current Assets as at June 30, 2025 which includes Rs. 20.46 crores receivable towards various indirect taxes from Government Authorities, at its book value pending realisability assessment of the Assets of the Company. 8. The unpaid liabilities related to amounts withheld from payments to sub-contractors and expenses accrued during CIRP period, are yet to be paid from the funds available for CoC. Accordingly, undistributed pending payable amount aggregating of Rs. 1.69 Crores till June 30, 2025 has been disclosed under relevant heads under liabilities. 9. Undistributed Pending Payables As at June 30, 2025, the Company has undistributed pending payables aggregating of Rs. 4.37 Crores, comprising of Rs. 1.67 Crores towards Gratuity, Rs. 2.66 Crores payable to EPFO, Rs. 0.04 Crores for other contingencies, and Rs. 0.00* Crore (Rs.22,471/-) for Fixed Deposit holders. These amounts are expected to be settled from funds received from the Successful Resolution Applicant in accordance with the Resolution Plan approved by the Hon’ble NCLT. No provision has been made in the books of accounts for these pending amounts, except for Rs. 1.22 Crores towards Gratuity and Rs. 0.00* Crore (Rs.22,471/-) payable to Fixed Deposit holders. 10. Loans, Advances, Trade Receivables, and Other Current Assets The Company’s Loans & Advances, Trade Receivables, and Other Current Assets are subject to confirmations, reconciliations, and adjustments as may be necessary upon assessment of their recoverability. The Company continues to monitor and evaluate these balances and any adjustments required under the applicable Indian Accounting Standards will be made if deemed necessary to ensure appropriate presentation and disclosure in the financial statements. 11. The previous period's figures have been re-grouped/ re-classified wherever required to conform to current period's classification. All figures of financial results are stated as Rupees in Crores except otherwise stated. For VALECHA ENGINEERING LIMITED SHASHIKANT GANGADHAR BHOGE CHAIRMAN DIN : 05345105 DATE: 07/11/2025 PLACE: MUMBAI |