(i) Capitalized Borrowing Cost
No borrowing cost are capitalised during the current year and previous year (i) Transition to Ind AS
On Transition to Ind AS (i.e. 1 April 2022), the company has elected to continue with the carrying value of all property, plant and equipment measured as per previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.
Note: fair Value Measurement and Techniques:-
1) The fair value of Investment property has been determined by external, independent registered property valuers as defined under nile 2 of companies (Registered valuers and Valuation) Ru1es,20l7 having appropriate recognised professional qualification and recant experience in the location and category of the property being valued in conjunction with valuer assessment services undertaken by approved valuer.
2) The company obtains independent valuation for Its Investment property at least annually. The valuation has been done based on the guideline value of government, periodic factor and verbal market inquiry & survey of the subject area, i.e. Market Value Approach.
(a) The company has only one class of shares referred to as Equity shares having face value of Rs. 10/-. Each Holder of equity share is entitled to 1 vote per share Company has issued 11,00,000 share warrants of face value of Rs.lO/* each eta premiwn of Rs.26/-eech.
[nature and purpose of reserves
Securities Premium : Securities premium Includes premium on issue of shares. It will be utilised In accordance with the provisions of the Companies Act* 2013. Retained earnings: Represents surptus/(defieit) in statement of Profit and Loss.
FVOCt equity Investments : The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income These chances are accunulated within the FVOCI equity investments reserve within equity
34 Segment reporting
Segment reporting Based on -management approach- as defined in Ind As 108- Operating Segments the chief operating decision maker regularly monitors and reviews the operating results of the whole company as one segment of "pesticides, insecticides, herbicides, and fertilizers.0Thus, defined In Ind As 10S, the company’s entire business falls under this one operational segment and hence the necessary information has already been disclosed in the Balance Sheet and the the Statement of Profit & Loss. The analysis of geographical segments is based on the areas in which customers of the company are located.
The above fair vabe hierarchy explain* th* judgements and estimate* made in determining the fair values of the financial Instruments that are (a) recognised and measured at far value and |b) measured at amortiied cost for which fair values are disclosed in the financial statements To provide the indication about the reliability of the Inputs used in determine^ fair value, the Company has classified its financial instruments in to three levels prescribed is as under:
level 1 Ý Quoted prices {unadjusted! in active markets for identical assets or liabilities
Levef 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or NabiNty, either directly (i e. as price*) or indirectly (i.e derived from prices)
Level 3 - inputs for the aisets or liabilities that are not based on observable market data (unobservable mputs)
There were no transfers between the level* during the year Valuation process
The finance department of the Company includes a team that performs the valuations of financial assets and llablilies retprired for financial reporting purposes, iteludinf level 3 fair values, the fair valuation of level 1 and level 2 classified assets end liabilities are readily available from the quoted prices in the open market and rates available In secondary market respectively.
Ihe carrying amount of trade receivable, trade payable, cash and bank balances, short term loans and advances, statutory/ receivable, shortterm borrowing, employee dues are considered to be the same as their far value due to thdr short-term nature.
36 Transition to Ind-AS
This financial statements, for the year ended March 31, 2024, are the first financials of the Company being prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2023, the Company has prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013 read together with relevant rules of the Companies (Accounts) Rules, 2020 (Indian GAAP). Therefore, comparative information Is reclassified / remeasured so as to comply with ind AS.
Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for year ended March 31, 2024, together with the comparative period data as at and for the year ended March 31, 2023 & March 31, 2022 as described inthe summary of significant accounting policies. The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2022 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities.
An explanation of how the transition from previous GAAP to Ind AS has affected the Company s Balance sheet. Statement of Profit and Loss, is set out he re-in-after.
However, this principle is subject to the certain mandatory exceptions and optional exemptions availed by the Company in line with principles of Ind AS 101 as detailed below:
36.01 Exemptions and exceptions availed I Optional exemptions
I Property, Plant and Equipment (PPE):
Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of Its property, plant and equipment as recognised in the financial statements as at the date of transition to ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets Accordingly, the Company has elected to measure all of its property, plant and equipment at their previous GAAP carrying value.
II Mandatory Exceptions
1 Estimates
The estimates as at March 31, 2022 & march 31, 2023 are consistent with those made for the same dates In accordance with the Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the impairment of financial assets based on the risk exposure and application of ECL model where application of Indian GAAP did not require any estimation.
The estimates used by the Company to present these amounts in accordance with Ind AS, reflect conditions at April 1, 2019, the date of transition to Ind AS and as at March 31,2022.
2 Classification and measurement of financial assets
Ind AS 101 provides exemptions to certain classification and measurement requirements of financial assets under Ind AS 109, where these are impracticable to implement Classification and measurement is done on the basts of facts and circumstances existing as on the transition date. Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the transition date.
3 De-recognition of financial assets and liabilities:
The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.
1 Property, Plant and Equipment
As per Ind As 16 a Specific asset which was actually capitalized in Indian GAAP is now decapitalised and expense off though profit and loss, and the life of assets are reevaluated, hence depreciation is increased.
2 Investments and Fair value through OCI:-
As per Indian GAAP,Investment shows at a cost but as per Ind as 109, Investments are shown at a fair value and gain is routed through the Other comprehensive income by following the FVOCI (Non Redassifiable) method.
3 Inventories & Revenue from Operation:-
As per Indian GAAP, revenue was booked as per perventage of completion method,i.e, Over the period but as per ind AS IIS, reveue is required to be booked on the Point in time basis, so the revenue was revesed and the cost of sales was capitalized back in inventory.
4 Deferred Tax Adjustments:
Tax adjustments include deferred tax impact on account of differences between previous GAAP and Ind AS which mainly Includes Property plant and equipment and Investment property
37 Financial risk management
The Company’s activities expose it to a variety of financial risks, including credit risk, market risk and liquidity risk. The Company's primary risk management focus is to minimize potential adverse effects of market risk on its financial performance. The Company's risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.
The Company's risk management is governed by policies and approved by the board of directors. Company's identifies, evaluates and hedges financial risks in close co-operation with the Company's operating units. The company has policies for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments.
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. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
38 Capital Management:
The Company’s capital management is intended to maximise the return to shareholders and benefits for other stakeholders for meeting the long-term and short-term goals of the Company; and reduce the cost of capital through the optimization of the capital structure l.e. the debt and equity balance.
The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.
Comment: There is a significant increase in inventory due to the effect of Ind As 115, revenue recognition criteria adopted by the company is the point in time hence revenue is reversed and all cost of sales is capitalized in inventory which leads to a significant increase in current assets. The investment in Equity instruments is revalued to their fair values as per Ind as 109 which also leads to a significant increase in current assets.
Comment: There is significant increse in the debt, as the company is into the business of construction & devlopment of residential flats so that continuous working capital capital requirment isfufilled by the borrowing money from the public by issuaing Right shares and from financial institutions.
43. Additional Regulatory information (Non Ind AS)
The disclosures required by amendment to Division II of Schedule III of the Companies Act,2013 are given only to the extent applicable:
I. Title deeds of immovable property other than proper taken on lease by duly executed lease agreement are held in the name of the company.
II. During the year there has been no change in the aggregate of the net carrying value of assets on account of revaluation in respect of Property, Plant & Equipment and intangible assets.
ill. There are no intangible assets under development In the Company during the current reporting period.
Iv. No proceedings have been initiated or pending against the company for holding any benami property under the Benami transactions (Prohibition) Act,1988 (45 of 1988) and the rules made thereunder
v. The company does have any borrowings from banks against the security of current assets.
vl. The Company has not been declared as a willful defaulter by any bank or financial institution or other lender In accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.
vii. The company has not entered in to any transaction with companies struck off under section 248 of the Companies Act,2013.
viii. There are no charges or satisfaction of charges yetto be registered with Registrar of Companies beyond the statutory period.
ix. The borrowing taken by the company from the banks has been used for the specific purpose for which it was taken at the balance sheet date.
x. There are no transactions that have been surrendered or disclosed as income during the year In the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.
44. The company is not liable to make any CSR expenditure according to Section 135 of the Companies Act, 2013
45. Subsequent Events:
Subsequent to Balance Sheet Date, there are no events occurred which require disclosure or adjustments in the financial statements.
46. On a periodical basis and as and when required, the Company reviews the carrying amounts of its assets and finds that there Is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss has been provided for the year ended 31st March, 2023 (For the year ended 31 March, 2022 is Rs. Nil)
47. Previous Periods’/ Years' figures have been re-grouped /re-classified where necessary to make it comparable with the current period.
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