1.14 Provisions
A provision is recognized when the company has a present obligation as a result of past
event and it is probable that an outflow of resources embodying economic benefit will be
required to settle the obligation and a reliable estimate can be made of the amount of
the obligation. Provisions are not discounted to their present value and are determined
based on the best estimate.
1.15 Contingent liabilities and Assets
Contingent liability is a possible obligation that arises from past events whose
existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events beyond the control of the Company or a present obligation that is
not recognized because it is not probable that an outflow of resources will be required
to settle the obligation. A contingent liability also arises in extremely rare cases where
there is a liability that cannot be recognized because it cannot be measured reliably. The
company does not recognize a contingent liability but discloses its existence in the
financial statement.
Contingent assets are neither recognized nor disclosed in the Financial Statements.
1.16 Segment information for primary segment reporting (by Business segments)
The primary segment of the Company is business segment, which involved in business of
Real Estate. As the company operates in a single primary business segment, no segment
information thereof is given.
NOTE 35_
Previous year's figures have been regrouped and/or reclassified necessary to make them comparable with
current year figures.
NOTE 36
Balances in various accounts included in trade receivable, trade payable, advances recoverable,
deposits/advances from/to customers/suppliers, Loans & Advances given, interest on loans and Joint Venture
contributions are subject to confirmation.
NOTE 37
In the opinion of the Management, the aggregate value of current assets (including stock) and loans and
advances on realization in the ordinary course of business will not be less than the amount at which these are
stated in the Financial Statements.
NOTE 38
All lands/development rights/premises are purchased on agreement basis and conveyance in respect of the
same will be executed directly in favor of Co-operative Societies whenever they are formed.
Contingent Liability exists in respect of following disputed demands against which appeals are pending before
Appellate Authorities:
a) Against assessment demands for A.Y. 2013-14 Rs. 539.45 Lakhs and for A.Y. 2014-15 Rs. 171.15 Lakhs,
company won appeal before CIT(A) and consequently demand is reduced to NIL. Subsequently on an appeal by
I-Tax department ITAT, Mumbai has set aside order of CIT(A) for reconsider and the same is pending.
Meanwhile company has filed appeal against ITAT's order before Bombay High Court.
b) For assessment year (financial year) 2011-12 as per assessment of Sales Tax (VAT) demand of Rs. 74.56
Lakhs was raised by the Assessing Authority. For the assessment years 2006-07, 2007-08, 2008-09, 2009-10
and 2010-11 demand of Rs. 63.80 Lakhs was raised by Assessing Authority. For the assessment years 2014-15
& 2015-16 demands of Rs. 16.32 Lakhs and Rs 31.08 Lakhs respectively are raised by the Assessing Authority.
The Company has filed first appeal to the relevant Appellate Authority of Sales Tax (VAT). The management
expects substantial relief for all these as assessment years.
NOTE 40_
The Company is in the process of identification of suppliers registered, if any, under the Micro, Small and
Medium Enterprises Development Act,2006, as micro and small enterprise. Information has been collated only to
the extent of information available with the company based on invoices of the parties & oral enquiry and
accordingly no amount is disclosed. Moreover, there being no project in hand and also due to corona pandemic
the activity of the company is at its low and the amount due to suppliers is minimal. Therefore, accordingly based
on information available no amount is disclosed.
NOTE 41
The Company has entered into the following Deeds of Partnership for which Liabilities are unlimited and amount
not ascertained:
a) Kamanwala Lakshchandi Todays Constructions.
b) Kamanwala Lakshchandi Todays Developers.
Note 42.1 - Risk Management Framework
The Company's Board of Directors has overall responsibility for the establishment and oversight of the
Company's Risk Management Framework.The Company's risk management policies are established to identify
and analyze the risk 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 Audit Committee oversees how management monitors compliance
with the Company's Risk management policies and procedures, and reviews the adequacy of the risk
management framework in relation to the risks faced by the Company. The Audit Committee is assisted in its
oversight role by internal audit.
Note 42.2 - Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations, and arises principally from the Company's receivables from customers,
investments,debt securities, loans given to related parties and project deposits.Credit risk encompasses of both,
the direct risk of default and the risk ofdeterioration of creditworthiness as well as concentration of risks. Credit
risk is controlled by analyzing creditlimits and creditworthiness of customers on a continuous basis to whom the
credit has been granted afterobtaining necessary approvals for credit.
Financial instruments that are subject to concentrations of credit risk principally consist of trade receivables,
unbilled revenue, investments, cash and cash equivalents, bank deposits andother financial assets. None of the
financial instruments of the Company result in material concentration of credit risk. The carrying amount of
financial assets represents the maximum credit exposure.
Trade Receivables_
Customer credit risk is managed by requiring customers to pay advances through progress billings before
transfer of ownership, therefore, substantially eliminating the credit risk in this respect.
The credit risk with regard to trade receivable has a high degree of risk diversification, due to the projects of
varying sizes and types with numerous different customer categories in a large number of geographical markets.
Based on prior experience and an assessment of the current economic environment, management believes there
Note 42.3 - Liquidity risk management_
Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of
liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The
Company requires funds both for short term operational needs as well as for long term capital expenditure growth
projects. The Company generates sufficient cash flow for operations, which together with the available cash and
cash equivalents and short-term investments provide liquidity in the short-term and long-term. The Company has
established an appropriate liquidity risk management framework for the management of the Company's short,
medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring
forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.
NOTE 43: Capital Management_
Equity share capital and other equity are considered for the purpose of Company's capital management. The
Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns
to shareholders. The capital structure of the Company is based on management's judgement of its strategic and
day-to-day needs with a focus on total equity so as to maintain investors, creditors and market confidence.
NOTE 44: Relationship with Struck off Companies_
The Company did not have any transaction with Struck off Companies.
NOTE 45: ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III TO THE
COMPANIES ACT, 2013
(i) The Company does not have any benami property held in its name. No proceedings have been initiated on or
are pending against the Company for holding benami property under the Benami 1988) and Rules made there
under.
(ii) The Company has not been declared wilful defaulter by any bank or financial institution or other lender or
government or any government authority._
The Company has complied with the requirement with respect to number of layers as prescribed under section
2(87)of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.
Utilization of borrowed funds and share premium.._
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 oron
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:
(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_
(c) There is no income surrendered or disclosed as income during the year in tax assessments under the Income
Tax Act, 1961 (such as search or survey), that has not been recorded in the books of account.
(d) The Company has not traded or invested in crypto currency or virtual currency during the year._
(e) The Company has repaid the entire amount of loan along with interest, but the Company has not satisfied the
charges on the same with Registrar of Companies beyond the statutory year.
Note 48 : Financial Instruments Valuation
All financial instruments are initially recognized and subsequently re-measured at fair value as described
below:
The fair value of financial assets and liabilities are included at the amount at which the instrument could be
exchanged in a current transaction between the willing parties, other than in a forced or liquidation sale.
The financial instruments are categorized into two levels based on the inputs used to arrive at fair value
measurements as described below:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level2:Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly; and
Level3:Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable
As Per our report of even date attached herewith
For Vinod Kumar Jain & Co Kamanwala Housing Construction Limited
Chartered Accountants
Registration No. 111513W
Vinod Kumar Jain
Proprietor Divya Agarwal Atul Jain Amit Jain Tarun Jain
Membership N°. 036373 Company Secretary Managing Director Director CFO
PAN-BUIPA1461Q DIN : 00052966 DIN: 00053168 PAN-AAAPJ7554Q
Mumbai
Dated : 30th May, 2025
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