4.4. All shares which are held by Company in its wholly owned subsidiary Manjeera Retail Holdings Private Limited are pledge to VISTRA ITCL (INDIA) LIMITED which is a security trustee for the loan availed from Catalyst Trusteeship Limited by the Manjeera Retail Holdings Private Limited.

4.5. 20% of Capital invested by Company in Vasavi Realtors LLP

11.1 The credit period towards trade receivables generally ranges between 30 to 180 days. Generally, no interest is recovered for payments received beyond due date.

11.2 In determining the allowance for trade receivables the company has used practical expedients based on financial condition of the customer, ageing of the customer receivables and overdues, availability of collaterals and historical experience of collections from customers. The concentration of risk with respect to trade receivables is reasonably low as most of the customers settle within the due dates, though there may be normal delays in collections.

The Company's past history in dues becoming bad or doubtful was very insignificant.

13.1 Unsecured loans extended to related parties have been admitted as claims by the Resolution Professional of MCL after thorough verification of the supporting documents, amounting to '41,08,79,495/-. The repayment of these loans to the related parties shall be carried out in accordance with the waterfall mechanism outlined in the Resolution Plan as submitted by the Resolution Applicant, subject to its approval by the Hon'ble National Company Law Tribunal (NCLT), Hyderabad.

15.1 Advances to directors or other offices of the Company or any of them either severally or jointly with any other person or amount due by firms or private companies respectively in which any director is a partner or a director or a member.

16.4 Rights of the share Holders

“The Company has only one class of shares. Equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share. All the equity shares rank pari passu in all respects including but not limited to entitlement for dividend, bonus issue and rights issue.

The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing general meeting.”

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company in proportion of their shareholding.

18.1 Equitable Mortgage on land & Buildings of Developer share of Manjeera Monarch Project and Unit number 304 A in Aditya Trade Centre (F&G Blocks) & Open Exhibition area in ground floor and unit number 4,5,6,7 & 8 in Mezzanine floor belongs to Manjeera Estates Pvt Limited and G Yoganand in aditya Trade Centre(F&G Blocks). Present interest rate at 16.05% on monthly basis. Term loan is repayable in 30 monthly equal installment starting from January, 2020.

18.2 Term loan taken from other banks includes LICHFL-ECLGS loan amounting to Rs. 955.8 Lakhs which carries interest of 14% per annum and repayable in 48 equated monthly instalments.

18.3 Vehicles loan amounting to Rs. 10.08 Lakhs (March 31, 2023: Rs. 12.41 Lakhs) is secured by hypothecation of vehicles purchased.

18.4 Unsecured loans taken from related parties carries interest of 12% per annum compounded on annual basis and are repayable on demand.

18.5 Inter corporate deposits from others carries average interest of 12% per annum compounded on quarterly basis and are repayable on demand.

18.6 Since the company is undergoing CIRP process, moratorium is in effect due to which no interest has been booked post 18.07.2023. The Parties have filed their claim with the Resolution Professional and the list of creditors have been uploaded on the CD and IBBI website.

19.1 A. Defined benefit plan

The Company has a non fund based defined benefit gratuity plan and provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity at the rate of 15 days basic salary for each year of service until the retirement age.

The following tables set out the status of gratuity & Leave Encashment plans and the amount recognized in Company's financial statements :

B. Defined Contribution Plan

The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme and provident fund for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised '12.73 Lakhs (March 31,2023: ' 12.12 Lakhs) towards contribution for mentioned funds in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

C. Sensitivity Analysis Description of Risk Exposures

Valuations are performed on certain basic set of pre-determined assumptions which may vary over time. Thus, the Company is exposed to various risks in providing the above benefit which are as follows:

Interest Rate Risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of liability (as shown in financial statements).

Liquidity Risk: This is the risk that the Company is not able to meet the short term benefit payouts. This may arise due to non availability of enough cash/cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk: The present value of the above benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan's liability.

Demographic Risk: The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972 (as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (for example, increase in the maximum liability on gratuity of ' 10 Lakhs).

Asset Liability Mismatching or Market Risk: The duration of the liability is longer compared to duration of assets exposing the company to market risks for volatilities/fall in interest rate.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

21.1 Unsecured Inter - Corporate Deposit amounting to Rs. 1340.00 Lakhs ( March 31,2023: ' 1230.00 Lakhs) taken from different parties carries an average interest rate of 12% per annum which is repayable with in one year or demand.(March 31, 2023 : average interest rate of 12%). Since the company is undergoing CIRP process, moratorium is in effect due to which no interest has been booked post 18.07.2023. The Parties have filed their claim with the Resolution Professional and the list of creditors have been uploaded on the CD and IBBI website.

21.2 The Company has been sanctioned working capital limits in excess of 5 crores, in aggregate, at points of time during the year, from banks or financial institutions on the basis of security of current assets. The quarterly returns filed by the Company with such banks or financial institutions are in agreement with the books of account of the Company of the respective quarters.

22.1 Trade payable other than acceptances includes of Rs. 0.41 Lakhs dues to Micro and Small Enterprises, under the Micro, Small and Medium Enterprises Development Act, 2006.

Due to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the Auditors.

30.1. Defined contribution plans:

The Company provides benefits in the nature of defined contribution plans viz, employee state insurance scheme and provident fund for qualifying employees. Under these Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised '12.73 Lakhs (March 31,2023: '12.12 Lakhs) towards contribution for mentioned funds in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the Schemes.

35. Contingent Liabilities and Commitments

(i) Contingent Liability

a. Claims against the Company not acknowledged as debts:

Claims against the Company not acknowledged as debts include demands raised by Income Tax TDS authorities aggregating to Rs. 7,30,675/- and GST Department of Rs. 3,55,18,735/-.

b. Other Contingent Liabilities

i. Guarantees issued by bankers on behalf of the company towards performance obligations Rs. 514.15 Lakhs (March 31, 2023: Rs. 514.15 Lakhs).

ii. Corporate Guarantee of Rs. 32,500 Lakhs (March 31, 2023: Rs. 32,500 Lakhs) issued on behalf of wholly owned subsidiary company Manjeera Retail Holdings Private Limited.

37. Segment Reporting

Business Segments:

The Company has disclosed Business segment as the primary segment for reporting as defined in Ind AS 108 - Operating Segments, the Managing Director evaluates the Company's performance and allocates resources based on an analysis of various performance indicators by business segments. Accordingly, information has been presented along these business segments viz, Real estate and Sub Contracted Contractual business. Details of standalone segment-wise revenue, results, assets and liabilities.

Geographical Segment:

The Company has operations in India only. The conditions prevailing in India being uniform, hence no separate geographical segment disclosure is considered necessary.

Notes to Financial Instruments

The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments. The management assessed that the fair value of borrowings approximate the carrying amount largely due to such borrowings carry floating interest rates or rates are negotiable.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

39. Financial Risk Management

Financial Risk Factors

The Company's activities expose it to market risk, liquidity risk and credit risk. The Company's Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit Risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company's exposure to credit risk is influenced mainly by cash and cash equivalents, trade receivables and financial assets measured at amortized cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls. Credit risk related to cash and cash equivalents and bank deposits is managed by accepting highly rated banks and diversifying bank deposits.

Credit Risk Management

The finance function of the Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

Expected Credit Loss for Trade Receivables under simplified approach

Real Estate Business

The Company's trade receivables does not have any expected credit loss as registration of properties sold is generally carried out once the Company receives the entire payment. During the periods presented, the Company made no write-offs of trade receivables and no recoveries from receivables previously written off. But a general provision for Expected credit loss @ 0.4% has been provided.

b. Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities.

Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

c. Interest Rate Risk

The Company's fixed rate borrowings are carried at amortized cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, ‘Financial Instruments - Disclosures', since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The Company's variable rate borrowing is subject to interest rate. Below is the overall exposure of the borrowing:

Reason For % Change From Previous Year: There has been substantial decrease in the cost of Inventory sold and increase in the average trade payables during the current year compared to previous year resulting in a lower ratio.

(h) Net Capital Turnover Ratio

Net Capital Turnover Ratio - Revenue from Operations divided by Net Working Capital where Net Working Capital = Current Assets -Current Liabilities

41. Capital Management

The Company's objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Company monitors its capital using gearing ratio, which is net debt divided by total equity. Net debt includes long term borrowings, short term borrowings, current maturities of long term borrowings less cash and cash equivalents and other bank balances.

42. Section 186 of the Companies Act 2013 is not applicable to the Company being the Company is in business of providing infrastructural facilities i. e real estate development business covered under point 5(a) of the Schedule VI of the Companies Act, 2013.

43. As per Section 135 of the Companies Act 2013, The provisions of CSR is not applicable to the company since it does not meet the Net worth, Turnover, Net profit criteria during last three years.

44. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder.

45. The Company does not have any transactions with companies struck off under section 248 of Companies Act 2013 or Section 560 of Companies Act 1956 for the current year and also for the previous year.

46. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

47. The Company has not been declared willful defaulter by any bank or government or any government authority. The Company is defaulted in repayment of loan to financial institution. The lenders has filed the application in NCLT, Hyderabad and accordingly CIRP as per section 7 of IBC has been initiated vide order dated 18.07.2023.

48. The Company have 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

49. The Company have 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:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or;

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

50. The Company does not have any 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 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

51. The Company has the borrowings from banks and financial institutions on the basis of the security of the current assets.

52. The Company has given a Corporate Guarantee to the lenders of a wholly owned Subsidiary Company for the loan of Rs.325 Crore sanctioned (disbursed Rs.274.80 Crore and outstanding as at 31st March 2023 was Rs. 200.15 Crore including interest arrears). As the Subsidiary Company could not meet its obligations with in the time frame for repayment, the lender has approached NCLT under the Insolvency and Bankruptcy provisions and accordingly made an application against the Subsidiary, the Principal Borrower and also against the Company which is the Corporate Guarantor for the loan. The CIRP process is in the final stage as Resolution Plan for the company is already filed by the Resolution Professional with the Hon'ble NCLT and awaiting final approval.

53. Inventory includes land admeasuring 2.92 Acres situated at Khanamet village, purchased from TSIIC through auction conducted in the previous year, which is offered as security against advance received against sale of said land from Manjeera Realty LLP (Formerly SAASA Villa LLP) for an amount of Rs. 17,514.87 Lakhs under registered "Agreement for Sale cum General Power of Attorney (with possession), dated April 27, 2022.

54. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company does not expect this amendment to have any significant impact in its financial statements.