Valecha Engineering Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2026

Notes to the Audited Standalone Statements of Financial Results for the quarter and year ended March 31, 2026:

1. Approval and Audit of Financial Results

The above standalone audited 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 05/06/2026. The Statutory Auditors have audited these financial results and issued their unmodified report thereon dated 05/06/2026.

2. These standalone audited financial results have been prepared in accordance with the Indian Accounting Standards ('Ind AS') prescribed under Section 133 of the Companies Act, 2013 ("the Act") read with relevant rules issued thereunder, other accounting principles generally accepted in India and 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. Application for approval of Resolution Plan {IA(IBC)(PLAN)/61/MB/2025} has been filed on 09th May, 2025 with the Hon’ble NCLT, Mumbai Bench and is currently pending adjudication.

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

During the year, the Company recognised an impairment loss/provision for diminution in the value of its investment in Valecha Infrastructure Limited, Professional Realtors Private Limited, & Valecha Reality Limited amounting to Rs. 1.88 crore. The investee entity has incurred significant losses, and its net worth stands substantially eroded. Considering the financial position of the investee and the available information regarding future recoverability, the impairment loss has been recognised and disclosed as an Exceptional Item in the Statement of Profit and Loss.
Investment of one subsidiary company Rs.0.31 Crores along with loans and advances totalling Rs.169.04 Crores extended to four subsidiaries and one step-down subsidiary, continues to carry 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 - 140.68
Professional Realtors Private Limited Subsidiary - 0.25
Valecha International FZE Subsidiary 0.31 23.57
Valecha Reality Limited Subsidiary - 0.29
Valecha Badwani Sendhwa Tollways Limited Step-down Subsidiary
- 4.25
Total 0.31 169.04

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.