p) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the company has present determined obligations as a result of past events and an outflow of resources embodying economic benefits will be required to settle the obligations. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation at the balance sheet date.
If the effect of the time value of money is material, provisions are discounted using a current pre tax rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
A Contingent liability is not recognised but disclosed in the
notes to the accounts, unless the probability of an outflow of resources is remote.
A contingent asset is generally neither recognised nor disclosed.
q) Earnings per share
The Basic earnings per share (EPS) is calculated by dividing the net profit or loss for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating Diluted earnings per share, the net profit or loss for the year attributable to the equity
shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the company, on or before the end of the reporting period but not distributed at the end of the reporting period.
Exceptional items refer to items of income or expense within statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered
necessary to explain the performance of the company.
The company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cash-generating unit's (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.
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. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss.
A. Basis of Segmentation
Based on factors used to identify the entity's reportable segments, including the basis of organisation for management purposes, the Company has only one reportable segments namely, Development of real estate property. The Board of Directors of the Company acts as the Chief Operating Decision Maker ("CODM”]. The CODM evaluates the Company's performance and allocates resources based on an analysis of various performance indicators.
B. Geographical Information
The geographic information analyses the Company's revenue and Non-Current Assets by the Company's country of domicile and other countries. As the Company is engaged in Development of Real Estate property in India, it has only one reportable geographical segment.
C. Information about major customers
None of the customers for the years ended March 31, 2024 and March 31, 2023 constituted 10% or more of the total revenue of the Company.
The Company's activities expose it to various financial risks like credit risk, liquidity risk and market risk [including interest rate risk]. The company tries to foresee the unpredictable nature of financial markets and seek to minimise potential adverse impact of these risks on its financial performance. These risks are managed by the company taking several measures like requiring customers to pay advances, progressive billing, management of funds by the treasury department, monitoring liquidity of the company through expected cash flow forecasts etc.
The senior management of the company oversees the management of these risks. It is supported by a Risk Management Committee that advises on financial risks and the appropriate financial risk governance framework for the Company. The Risk Management Committee provides assurance to the Company's senior management that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company's policies and risk objectives. The Audit Committee has additional oversight in the area of financial risks and controls. It is the Company's policy that no trading in derivatives for speculative purposes may be undertaken.
The company believes that maintaining a sound capital base is imperative to ensure continued confidence of its stakeholders like investors, creditors, etc.
The following are the objectives of Capital management policy of the company:
[i] Safeguard its ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other
stakeholders, and
[ii] Maintain an optimal capital structure to reduce the cost of capital
The company manages its capital structure and makes adjustment after considering changes in economic conditions and requirements of the financial covenants.
As a part of capital management strategy, the company may adjust the amount of dividends paid to shareholders, issue new shares, raise debt capital or sell assets to reduce debt. The company monitors capital basis a gearing ratio which is calculated by dividing the total borrowings by total equity. The company's strategy is to maintain a gearing ratio lower than 30%. In order to achieve this overall objective, the company ensures to meet its financial covenants attached to the interest bearing borrowings. There have never been any breaches in financial covenants of any interest bearing borrowings in the past and also in the current period.
Information about the Company's performance obligations for material contracts are summarised below:
The satisfaction of performance obligation and the control thereof is transferred from the company to the buyer upon possession or upon issuance of letter for offer of possession ("deemed date of possession"), whichever is earlier, subject to certainty of realisation.
The customer makes the payment of contracted price as per the installment stipulated in Builder Buyer's agreement.
The Company is under an obligation to comply with the following In terms of the Real Estate [Regulation and Development] Act 2016 [RERA]
[a] Obligation to keep 70% of the amounts realized from real estate project from allottees from time to time, in a separate account in a scheduled bank
[b] Liability to rectify structural defect or defect in workmanship within 30 days if brought to notice of the company by allottee within 5 years from the date of handing over possession
Explanation for change in ratio having variance more than/less than 25%:
1 Increase in profit leading to increase in debt service coverage ratio for the year.
2 Increase in profit due to higher deliveries during the year as compared to previous year.
3 Due to increase in Cost of Good sold & increase in average inventory as compared to previous year.
4 Due to increase in sales as compared to previous year.
5 Due to increase in Earning before interest & tax & increase in debts as compared to previous year.
(A) Relationship with Struck off Companies:
No transactions has been made with any of the companies which have been struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.
(B) Compliance with number of layers of companies:
No layer of companies have been established beyond the limit prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on numbers of Layers) Rules, 2017.
(C) Details in respect of Utilization of Borrowed funds and share premium shall be provided in respect of:
i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(D) Undisclosed income:
There are no transactions which have not been recorded in the books of accounts during the year that has been surrendered or disclosed
as income during the year in the tax assessments under the Income Tax Act, 1961.
(E) Details of Crypto Currency or Virtual Currency:
The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.
(F) Details of Benami Property held:
No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 and rules made thereunder as at 31 March, 2024.
(G) Wilful Defaulter:
The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.
(H) Registration of charges or satisfaction with Registrar of Companies:
The Company doesn't have charge or satisfaction which is yet to be registered with ROC beyond the statutory period.
(I) Fair Value of Investment Property by registered valuer:
The fair value of investment property is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.
26 Previous years figure have been regrouped/ rearranged, wherever found necessary.
In terms of our report of even date attached herewith For B Chhawchharia & Co
Chartered Accountants _ _ _
Firm Registration No: 305123E Vishal Gupta Varun Gupta Sonal Mattoo
(Managing Director) (Whole-time Director) (Independent Director)
DIN 00097939 DIN 01666653 DIN 00106795
Abhishek Gupta
Partner _ _
Membership No: 529082 Nitin Sharma Vikash Dugar
(Company Secretary) (CFO)
Place: New Delhi Date: 28th May, 2024